-----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, DaKIfDoZzf3IvBRCT0bjkyDDVN2S71j9LOsscQ4m8Vv+xOdBjRgysRubp0snX//R tBcdeh+UDXRlDhzEYDNIIw== 0000716792-06-000009.txt : 20060310 0000716792-06-000009.hdr.sgml : 20060310 20060310144641 ACCESSION NUMBER: 0000716792-06-000009 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20051231 FILED AS OF DATE: 20060310 DATE AS OF CHANGE: 20060310 EFFECTIVENESS DATE: 20060310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS TAX EXEMPT MONEY MARKET FUND INC CENTRAL INDEX KEY: 0000716792 IRS NUMBER: 133158194 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03690 FILM NUMBER: 06678926 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: RARITAN PLAZA 1 STREET 2: 8TH FLOOR CITY: EDISON STATE: NJ ZIP: 08837-3620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS NEW YORK INSURED TAX FREE FUND INC CENTRAL INDEX KEY: 0000727586 IRS NUMBER: 133198698 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03843 FILM NUMBER: 06678927 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: RARITAN PLAZA 1 STREET 2: 8TH FLOOR CITY: EDISON STATE: NJ ZIP: 08837-3620 FORMER COMPANY: FORMER CONFORMED NAME: FIRST INVESTORS NEW YORK TAX FREE FUND INC DATE OF NAME CHANGE: 19890227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS MULTISTATE INSURED TAX FREE FUND CENTRAL INDEX KEY: 0000810371 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04623 FILM NUMBER: 06678928 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: RARITAN PLAZA 1 STREET 2: 8TH FLOOR CITY: EDISON STATE: NJ ZIP: 08837-3620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXECUTIVE INVESTORS TRUST /MA/ CENTRAL INDEX KEY: 0000807332 IRS NUMBER: 133569790 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04927 FILM NUMBER: 06678929 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: RARITAN PLAZA 1 STREET 2: 8TH FLOOR CITY: EDISON STATE: NJ ZIP: 08837-3620 FORMER COMPANY: FORMER CONFORMED NAME: FIRST INVESTORS INSURED TAX EXEMPT FUND II DATE OF NAME CHANGE: 20010208 FORMER COMPANY: FORMER CONFORMED NAME: EXECUTIVE INVESTORS TRUST DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS INSURED TAX EXEMPT FUND INC CENTRAL INDEX KEY: 0000315177 IRS NUMBER: 132873780 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02923 FILM NUMBER: 06678930 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: RARITAN PLAZA 1 STREET 2: 8TH FLOOR CITY: EDISON STATE: NJ ZIP: 08837-3620 FORMER COMPANY: FORMER CONFORMED NAME: FIRST INVESTORS TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19890209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST INVESTORS SERIES FUND CENTRAL INDEX KEY: 0000842939 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05690 FILM NUMBER: 06678931 BUSINESS ADDRESS: STREET 1: 95 WALL ST CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 1-212-858-8000 MAIL ADDRESS: STREET 1: RARITAN PLAZA 1 STREET 2: 8TH FLOOR CITY: EDISON STATE: NJ ZIP: 08837-3620 FORMER COMPANY: FORMER CONFORMED NAME: FIRST INVESTORS FUND DATE OF NAME CHANGE: 19900422 0000315177 S000000105 FIRST INVESTORS INSURED TAX EXEMPT FUND C000000193 CLASS A FITAX C000000194 CLASS B FITCX 0000716792 S000000107 FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND C000000197 CLASS B C000000198 CLASS A FIXXX 0000727586 S000000106 FIRST INVESTORS NEW YORK FUND C000000195 CLASS A FNYFX C000000196 CLASS B FNYGX 0000807332 S000000108 FIRST INVESTORS INSURED TAX EXEMPT FUND II C000000199 CLASS B EIIUX C000000200 CLASS A EIITX 0000810371 S000011028 FIRST INVESTORS ARIZONA FUND C000030439 CLASS B C000030440 CLASS A FIAZX 0000810371 S000011029 FIRST INVESTORS MINNESOTA FUND C000030441 CLASS B C000030442 CLASS A FIMNX 0000810371 S000011030 FIRST INVESTORS MISSOURI FUND C000030443 CLASS B C000030444 CLASS A FMTMX 0000810371 S000011031 FIRST INVESTORS NEW JERSEY FUND C000030445 CLASS A FINJX C000030446 CLASS B FINKX 0000810371 S000011032 FIRST INVESTORS NORTH CAROLINA FUND C000030447 CLASS A FMTNX C000030448 CLASS B FMTQX 0000810371 S000011033 FIRST INVESTORS OHIO FUND C000030449 CLASS B C000030450 CLASS A FIOHX 0000810371 S000011034 FIRST INVESTORS OREGON FUND C000030451 CLASS B C000030452 CLASS A FTORX 0000810371 S000011035 FIRST INVESTORS PENNSYLVANIA FUND C000030453 CLASS A FTPAX C000030454 CLASS B FTPDX 0000810371 S000011036 FIRST INVESTORS VIRGINIA FUND C000030455 CLASS B C000030456 CLASS A FIVAX 0000810371 S000011037 FIRST INVESTORS CALIFORNIA FUND C000030457 CLASS B C000030458 CLASS A FICAX 0000810371 S000011038 FIRST INVESTORS COLORADO FUND C000030459 CLASS B C000030460 CLASS A FMTCX 0000810371 S000011039 FIRST INVESTORS CONNECTICUT FUND C000030461 CLASS A FICTX C000030462 CLASS B FICUX 0000810371 S000011040 FIRST INVESTORS FLORIDA FUND C000030463 CLASS B C000030464 CLASS A FIFLX 0000810371 S000011041 FIRST INVESTORS GEORGIA FUND C000030465 CLASS B C000030466 CLASS A FMTGX 0000810371 S000011042 FIRST INVESTORS MASSACHUSETTS FUND C000030467 CLASS A FIMAX C000030468 CLASS B FIMGX 0000810371 S000011043 FIRST INVESTORS MARYLAND FUND C000030469 CLASS A FIMDX C000030470 CLASS B FIMFX 0000810371 S000011044 FIRST INVESTORS MICHIGAN FUND C000030471 CLASS B C000030472 CLASS A FTMIX 0000842939 S000011018 FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND C000030417 CLASS A FIITX C000030418 CLASS B FIIUX N-CSR 1 taxexemptncsr123105.txt FIRST INVESTOR TAX EXEMPT 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 811-3690; 811-5690; 811-2923; 811-4927; 811-4623; 811-3843 FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC. FIRST INVESTORS SERIES FUND FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. EXECUTIVE INVESTORS TRUST FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. (Exact name of registrant as specified in charter) 95 Wall Street New York, NY 10005 (Address of principal executive offices) (Zip code) Joseph I. Benedek First Investors Management Company, Inc. Raritan Plaza I Edison, NJ 08837-3620 1-732-855-2712 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-212-858-8000 DATE OF FISCAL YEAR END: DECEMBER 31, 2005 DATE OF REPORTING PERIOD: DECEMBER 31, 2005 Item 1. Reports to Stockholders The Annual Report to Stockholders follows [Logo: "FIRST INVESTORS"] The words "TAX EXEMPT FUNDS" in a rectangular blue box across the top of the page. TAX-EXEMPT MONEY MARKET INSURED INTERMEDIATE TAX EXEMPT INSURED TAX EXEMPT INSURED TAX EXEMPT II SINGLE STATE INSURED TAX FREE ARIZONA MARYLAND NEW YORK CALIFORNIA MASSACHUSETTS NORTH CAROLINA COLORADO MICHIGAN OHIO CONNECTICUT MINNESOTA OREGON FLORIDA MISSOURI PENNSYLVANIA GEORGIA NEW JERSEY VIRGINIA ANNUAL REPORT December 31, 2005 Portfolio Manager's Letter FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC. Dear Investor: This is the annual report for the First Investors Tax-Exempt Money Market Fund for the year ended December 31, 2005. During the year, the Fund's return on a net asset value basis was 1.7% for Class A shares and 0.9% for Class B shares. The Fund paid dividends of 1.6 cents per share for Class A shares and 0.9 cents per share for Class B shares (100% of which is free from federal income taxes). The Fund maintained a $1.00 net asset value per share for each class of shares throughout the year. The Fund's performance was largely driven by the interest rate environment. Municipal money market yields climbed last year as the Federal Reserve (the "Fed") raised its target federal funds rate by 25 basis points on eight separate occasions (2.00 percentage points) to 4.25%. One-year municipal note yields rose by more than 125 basis points last year while resets on variable rate securities exhibited typical volatility and reset in a nearly 200 basis point range. They closed 2005 one hundred fifty basis points higher than where they closed 2004. Activity early in the year was focused on reducing the Fund's overweight position in variable rate securities, which had been a drag on performance as they yielded less than notes during the first quarter. To this end, the Fund increased its holdings in fixed rate notes. Later in the year, the Fund focused on shorter-term securities as market yields rose. Money market funds continue to be among the most conservative investment vehicles available. However, there can be no assurance that they will be able to maintain a stable net asset value of $1.00 per share. Money market mutual funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, \S\ MICHAEL J. O'KEEFE Michael J. O'Keefe Vice President and Portfolio Manager January 31, 2006 Understanding Your Fund's Expenses FIRST INVESTORS TAX EXEMPT FUNDS As a mutual fund shareholder, you incur two types of costs: (1) transaction costs, including a sales charge (load) on purchase payments (on Class A shares only), a contingent deferred sales charge on redemptions (on Class B shares only); and (2) ongoing costs, including advisory fees; distribution and service fees (12b-1); and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 in each Fund at the beginning of the period, July 1, 2005, and held for the entire six-month period ended December 31, 2005. The calculations assume that no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. Actual Expenses Example: These amounts help you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return, and the "Expenses Paid During Period" shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account during this period, simply divide your ending account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number given for your Fund under the heading "Expenses Paid During Period". Hypothetical Expenses Example: These amounts provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for Class A and Class B shares, and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight and help you compare your ongoing costs only and do not reflect any transaction costs, such as front-end or contingent deferred sales charges (loads). Therefore, the hypothetical expense example is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. Fund Expenses FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC. The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,009.45 $3.65 Hypothetical (5% annual return before expenses) $1,000.00 $1,021.58 $3.67 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,005.72 $7.43 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.80 $7.48 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .72% for Class A shares and 1.47% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN STATES (BAR CHART DATA:) Ohio 10.9% New Jersey 10.8% Georgia 8.0% Colorado 7.6% Kentucky 7.6% Michigan 5.4% Arizona 5.3% North Carolina 4.7% Wisconsin 4.6% Rhode Island 4.2% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total amortized cost of investments.
Portfolio of Investments FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate+ Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL INVESTMENTS--98.3% Alabama--3.7% $500M Mobile Industrial Dev. Board Facs. Rev. Bonds, VR, (CO; Kimberly-Clark Corp.) 3.50% $500,000 $373 - ---------------------------------------------------------------------------------------------------------------------- Arizona--5.2% 200M Casa Grande Industrial Dev. Auth. Multi-Family Hsg. Rev. Bonds, VR, (Fannie Mae Liquidity Fac.) 3.57 200,000 149 500M Yuma Industrial Dev. Auth. Multi-Family Hsg. Rev. Bonds, VR, (Fannie Mae Liquidity Fac.) 3.54 500,000 373 - ---------------------------------------------------------------------------------------------------------------------- 700,000 522 - ---------------------------------------------------------------------------------------------------------------------- Colorado--7.5% 500M Colorado Hsg. & Fin. Auth. Rev. Bonds, VR, (Fannie Mae Collateral Agreement) 3.59 500,000 373 500M University of Colorado Hospital Auth. Rev. Bonds, VR, (LOC; Citibank) 3.50 500,000 373 - ---------------------------------------------------------------------------------------------------------------------- 1,000,000 746 - ---------------------------------------------------------------------------------------------------------------------- Connecticut--1.9% 250M Connecticut State Special Tax Oblig. Rev., 9/1/2006 (FSA Ins.) 3.25 251,219 188 - ---------------------------------------------------------------------------------------------------------------------- Florida--3.8% 500M Florida State Board of Ed. Capital Outlay GO Bonds, 6/1/2006* (U.S. Govt. Securities) 2.56 509,977 381 - ---------------------------------------------------------------------------------------------------------------------- Georgia--7.8% 400M Fulton County Hsg. Auth. Multi-Family Hsg. Rev. Bonds, VR, (LOC; Fannie Mae) 3.59 400,000 298 450M Roswell Housing Auth. Multi-Family Rev. Bonds, VR, (Fannie Mae Liquidity Fac.) 3.54 450,000 336 200M Whitfield County Residential Care Facs. Auth. Rev. Bonds, VR, (LOC; Wachovia Bank) 3.55 200,000 149 - ---------------------------------------------------------------------------------------------------------------------- 1,050,000 783 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate+ Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Iowa--1.5% $200M Iowa State Vision Special Rev. Bonds, 2/15/2006 (MBIA Ins.) 2.40% $200,642 $150 - ---------------------------------------------------------------------------------------------------------------------- Kentucky--7.5% 600M Fort Mitchell League of Cities Lease Rev. Bonds, VR, (LOC; U.S. Bank, NA) 3.58 600,000 448 400M Newport League of Cities Lease Rev. Bonds, VR, (LOC; U.S. Bank, NA) 3.58 400,000 298 - ---------------------------------------------------------------------------------------------------------------------- 1,000,000 746 - ---------------------------------------------------------------------------------------------------------------------- Massachusetts--1.9% 250M Massachusetts Bay Transportation Auth. Rev. Bonds, 3/1/2006* (U.S. Govt. Securities) 2.73 253,674 189 - ---------------------------------------------------------------------------------------------------------------------- Michigan--5.3% 715M Michigan State Hospital Fin. Auth. Rev. Bonds, 5/15/2006 (AMBAC Ins.) (U.S. Govt. Securities) 3.20 717,858 534 - ---------------------------------------------------------------------------------------------------------------------- New Jersey--10.6% 475M Egg Harbor Township School Dist. GO Bonds, 2/15/2006 (FSA Ins.) 2.98 476,172 355 700M New Jersey Health Care Facs. Fin. Auth. Rev. Bonds, VR, (LOC; JPMorgan Chase & Co.) 3.47 700,000 522 250M New Jersey State GO Bonds, 5/1/2006 (U.S. Govt. Securities) 2.80 251,812 187 - ---------------------------------------------------------------------------------------------------------------------- 1,427,984 1,064 - ---------------------------------------------------------------------------------------------------------------------- New York--1.1% 150M Triborough Bridge & Tunnel Auth. General Purpose Rev. Bonds, 1/1/2006 (U.S. Govt. Securities) 2.04 150,015 112 - ---------------------------------------------------------------------------------------------------------------------- North Carolina--4.6% 600M Charlotte Water & Sewer GO Bonds, 5/1/2006* (U.S. Govt. Securities) 3.20 616,372 460 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate+ Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Ohio--10.7% $600M Lucas County Facs. Improvement Rev. Bonds, VR, (LOC; Fifth Third Bank) 3.56% $600,000 $447 360M Ohio State Special Oblig. Elem. & Secondary Ed. Cap. Facs. Rev. Bonds, 6/1/2006 (AMBAC Ins.) 2.90 363,112 271 468M Warren County Health Care Facs. Rev. Bonds, VR, (LOC; Fifth Third Bank) 3.57 468,000 349 - ---------------------------------------------------------------------------------------------------------------------- 1,431,112 1,067 - ---------------------------------------------------------------------------------------------------------------------- Oklahoma--.4% 100M Oklahoma County Home Fin. Auth. Single Fam. Rev. Bonds, 3/1/2006* (U.S. Govt. Securities) 2.90 56,637 42 - ---------------------------------------------------------------------------------------------------------------------- Pennsylvania--3.9% 200M Philadelphia School Dist. GO Bonds, 3/1/2006 (MBIA Ins.) 3.10 200,698 149 325M Philadelphia Water & Wastewater Rev. Bonds, 6/15/2006 (FSA Ins.) 3.18 328,383 245 - ---------------------------------------------------------------------------------------------------------------------- 529,081 394 - ---------------------------------------------------------------------------------------------------------------------- Rhode Island--4.1% 250M Rhode Island Ref. Bd. Auth. State Pub. Projects Rev. Bonds, 2/1/2006 (AMBAC Ins.) 2.55 250,526 187 300M Rhode Island State Hlth. & Ed. Building Corp. Rev. Bonds, VR. (LOC; Bank of New York) 3.45 300,000 224 - ---------------------------------------------------------------------------------------------------------------------- 550,526 411 - ---------------------------------------------------------------------------------------------------------------------- Tennessee--1.9% 250M Oak Ridge Electric Sys. Rev. Bonds, 6/1/2006 (AMBAC Ins.) 2.90 250,102 187 - ---------------------------------------------------------------------------------------------------------------------- Texas--2.1% 285M Tarrant County Housing Rev. Bonds, VR, (Fannie Mae Collateral Agreement) 3.59 285,000 213 - ---------------------------------------------------------------------------------------------------------------------- Utah--1.9% 250M Intermountain Power Agy. Power Supply Rev. Bonds, 7/1/2006 (MBIA Ins.) (U.S. Treasury Obligations) 3.20 253,462 189 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal Interest $10,000 of Amount Security Rate+ Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Virginia--3.0% $400M Alexandria Industrial Dev. Auth. Rev. Bonds, VR, (LOC; Bank of America) 3.55% $400,000 $298 - ---------------------------------------------------------------------------------------------------------------------- Washington--3.4% 200M Lake Tapps Parkway Properties Special Rev. Bonds, VR, (LOC; U.S. Bank, NA) 3.55 200,000 149 250M Seattle Housing Auth. Rev. Bonds Pioneer Human Svcs. Proj., VR, (LOC; U.S. Bank, NA) 3.57 250,000 187 - ---------------------------------------------------------------------------------------------------------------------- 450,000 336 - ---------------------------------------------------------------------------------------------------------------------- Wisconsin--4.5% 600M Wisconsin State Health & Educ. Facs. Auth. Rev. Bonds, VR, (LOC; JPMorgan Chase & Co.) 3.52 600,000 448 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $13,183,661)** 98.3% 13,183,661 9,833 Other Assets, Less Liabilities 1.7 223,935 167 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $13,407,596 $10,000 ====================================================================================================================== + The interest rates shown for municipal notes and bonds are the effective rates at the time of purchase by the Fund. Interest rates on variable rate securities are adjusted periodically and the rates shown are the rates that were in effect at December 31, 2005. The variable rate bonds are subject to optional tenders (which are exercised through put options) or mandatory redemptions. The put options are exercisable on a daily, weekly, monthly or semi-annual basis at a price equal to the principal amount plus accrued interest. * Municipal Bonds which have been prerefunded are shown at the prerefunded call date. ** Aggregate cost for federal income tax purposes is the same. Summary of Abbreviations: AMBAC American Municipal Bond Assurance Corporation CO Corporate Obligor FSA Financial Security Assurance GO General Obligation LOC Letter of Credit MBIA Municipal Bond Investors Assurance Insurance Corporation VR Variable Rate Securities See notes to financial statements
Portfolio Manager's Letter FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. FIRST INVESTORS INSURED TAX EXEMPT FUND II FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania and Virginia Funds Dear Investor: This is the annual report for the First Investors Tax Exempt Municipal Bond Funds for the year ended December 31, 2005. During the year, our national insured tax exempt funds had the following returns on a net asset value basis for Class A shares and Class B shares, respectively: Insured Intermediate Tax Exempt Fund 0.9% and 0.1%, Insured Tax Exempt Fund 1.7% and 1.0%, and Insured Tax Exempt Fund II 3.8% and 3.0%. Our single state insured tax free funds had the following returns on a net asset value basis for Class A shares and Class B shares, respectively: Arizona 2.0% and 1.3%, California 2.6% and 1.9%, Colorado 2.3% and 1.5%, Connecticut 2.5% and 1.7%, Florida 2.0% and 1.3%, Georgia 2.5% and 1.8%, Maryland 2.3% and 1.5%, Massachusetts 2.3% and 1.5%, Michigan 2.4% and 1.6%, Minnesota 2.1% and 1.4%, Missouri 2.8% and 2.0%, New Jersey 2.4% and 1.6%, New York 2.2% and 1.4%, North Carolina 2.6% and 1.8%, Ohio 2.0% and 1.3%, Oregon 2.5% and 1.7%, Pennsylvania 2.3% and 1.5%, and Virginia 2.3% and 1.6%. The Funds' performance was largely driven by the flattening of the yield curve and the underperformance of insured municipal bonds relative to uninsured municipal bonds. Specific factors discussed below also materially affected the performance of certain Funds. 2005 was the weakest year for the municipal bond market since 1999. The yield curve flattened as short- and intermediate-term interest rates rose in response to the Federal Reserve's continued tightening of monetary policy, while longer-term interest rates fell as a result of demand for long-term bonds and subdued inflation expectations. The flattening of the yield curve hurt the Funds' performance. Typically, when the Federal Reserve tightens monetary policy, both short- and long-term interest rates rise. Longer maturity bonds are the most sensitive to changes in interest rates, and given our expectation of continued Federal Reserve tightening, the Funds were underweight longer maturities and overweight intermediate maturities. While short and intermediate rates did rise, long-term municipal rates fell. As a result, longer maturities outperformed short and intermediate maturities. This hurt the performance of virtually all of our Funds. The Insured Tax Exempt Fund II was the exception, as the Fund achieved notably better performance because of its relatively greater exposure to longer maturity bonds. Insured municipal bonds underperformed uninsured bonds as demand by investors for yield boosted the returns of the latter. Given that all the bonds in our Funds are insured, the underperformance of insured municipal bonds contributed to the Funds' underperformance versus their broad market benchmarks. This especially affected the performance of the Insured Intermediate Tax Exempt Fund. Lastly, Fund-specific factors materially affected the performance of several of the Funds. Almost all of the Funds -- but particularly the California, Oregon and Pennsylvania Funds -- had holdings pre-refunded, which helped performance. Trading activity also added substantially to the total returns of the Insured Tax Exempt Fund II and the Insured Intermediate Tax Exempt Fund, as well as other Funds to a lesser degree. On the other hand, the flatter yield curve adversely affected certain holdings with sinking funds, particularly in the Georgia and Ohio Funds. Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, \S\ CLARK D. WAGNER Clark D. Wagner Director of Fixed Income First Investors Management Company, Inc. and Portfolio Manager January 31, 2006 Fund Expenses FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $997.57 $4.78 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.42 $4.84 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $993.83 $8.54 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.64 $8.64 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .95% for Class A shares and 1.70% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN STATES (BAR CHART DATA:) California 14.5% Michigan 8.3% New York 8.2% New Jersey 7.4% Alabama 6.8% Mississippi 6.0% Ohio 5.6% Virginia 5.3% Indiana 4.6% North Carolina 3.8% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND Comparison of change in value of $10,000 investment in the First Investors Insured Intermediate Tax Exempt Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Insured Intermediate Tax Exempt Fund Graph Plot Points for the periods ended 12/31/05 Insured Merrill Intermediate Lynch Tax Exempt Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,804 10,454 Dec-97 10,556 11,595 Dec-98 11,239 12,418 Dec-99 11,296 11,630 Dec-00 12,439 13,625 Dec-01 13,038 14,234 Dec-02 14,690 15,761 Dec-03 15,246 16,734 Dec-04 15,442 17,647 Dec-05 15,578 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year .88% (4.87%) Five Years 4.60% 3.38% Ten Years 5.16% 4.53% S.E.C. 30-Day Yield 2.60% Class B Shares One Year .13% (3.87%) Five Years 3.82% 3.47% Ten Years 4.44% 4.44% S.E.C. 30-Day Yield 2.01% The graph compares a $10,000 investment in the First Investors Insured Intermediate Tax Exempt Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (5.01%), 3.15% and 4.06%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.43%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.01%), 3.23% and 3.96%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.84%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.2% Alabama--6.8% $1,000M Birmingham Series "A" 5 1/2% 4/1/2013 $1,102,500 $192 1,070M Elmore Cnty. Ltd. Oblig. Sch. Wts. 5% 2/1/2011 1,140,888 198 1,555M Oxford GO Wts. Series "A" 5% 5/1/2011 1,661,906 289 - ---------------------------------------------------------------------------------------------------------------------- 3,905,294 679 - ---------------------------------------------------------------------------------------------------------------------- Arizona--3.7% 1,000M Downtown Phoenix Hotel Corp. Rev. Series "A" 5% 7/1/2012 1,077,500 187 1,000M Univ. of Arizona COP Series "A" 5 1/4% 6/1/2009 1,058,750 184 - ---------------------------------------------------------------------------------------------------------------------- 2,136,250 371 - ---------------------------------------------------------------------------------------------------------------------- California--14.4% 1,000M California St. Wtr. & Pwr. Rev. Series "A" 5 1/4% 5/1/2010 1,072,500 186 2,500M Los Angeles Cty. Pub. Wks. (Calabasas Landfill) 5% 6/1/2020 (when-issued) 2,618,750 455 1,240M Los Angeles Wtr. & Pwr. Rev. Series "A" 5 1/4% 7/1/2018 1,331,450 231 3,000M San Francisco Bldg. Auth. Rev. Series "A" 5% 12/1/2011 3,236,250 563 - ---------------------------------------------------------------------------------------------------------------------- 8,258,950 1,435 - ---------------------------------------------------------------------------------------------------------------------- District of Columbia--1.8% 1,000M District of Columbia COP 5 1/4% 1/1/2010 1,065,000 184 - ---------------------------------------------------------------------------------------------------------------------- Florida--3.7% 1,000M Jacksonville St. Johns River Pwr. Pk. Sys. Rev. 5% 10/1/2012 1,078,750 188 1,000M Polk County Transportation Rev. 5% 12/1/2010** 1,060,000 184 - ---------------------------------------------------------------------------------------------------------------------- 2,138,750 372 - ---------------------------------------------------------------------------------------------------------------------- Georgia--1.8% 1,000M Athens Housing Auth. Lease Rev. (Univ. of Georgia-East Campus) 4% 12/1/2009 1,023,750 178 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Indiana--4.5% $1,000M New Albany Floyd County Sch. Bldg. Corp. 5 3/4% 7/15/2012* $1,123,750 $195 1,375M Plainfield Community Sch. Bldg. Corp. 5% 1/15/2014 1,488,437 259 - ---------------------------------------------------------------------------------------------------------------------- 2,612,187 454 - ---------------------------------------------------------------------------------------------------------------------- Kentucky--1.8% 1,000M Kentucky Asset/Liability Community Gen. Fund Rev. Series "A" 5% 7/15/2009 1,055,000 183 - ---------------------------------------------------------------------------------------------------------------------- Louisiana--.6% 300M New Orleans GO 5 1/8% 12/1/2010 320,250 56 - ---------------------------------------------------------------------------------------------------------------------- Michigan--8.2% 1,130M Michigan Muni. Bond Auth. Rev. Series "A" 5% 5/1/2019 1,189,325 207 1,000M River Rouge School District GO 5% 5/1/2019 1,055,000 183 2,300M Rochester Cmnty. School District GO 5% 5/1/2013 2,498,375 434 - ---------------------------------------------------------------------------------------------------------------------- 4,742,700 824 - ---------------------------------------------------------------------------------------------------------------------- Minnesota--1.9% 1,035M Bloomington Ind. School District GO #271, 5% 2/1/2016 1,112,625 193 - ---------------------------------------------------------------------------------------------------------------------- Mississippi--6.0% 1,000M Gulfport GO 5% 3/1/2010 1,060,000 184 1,000M Jackson Pub. Sch. Dist. GO 5% 10/1/2013 1,083,750 188 1,200M Mississippi Dev. Bank Harrison Cnty. Hwy. Rev. 5% 1/1/2012 1,282,500 223 - ---------------------------------------------------------------------------------------------------------------------- 3,426,250 595 - ---------------------------------------------------------------------------------------------------------------------- New Jersey--7.4% 1,000M Jersey City School Improvement Series "B" 5% 3/1/2010 1,062,500 185 945M New Jersey Econ. Dev. Auth. Rev. Series "C" 5% 6/15/2011 1,012,331 176 New Jersey State Educ. Facs. Auth. Revenue: 1,000M Richard Stockton College Series "F" 5% 7/1/2014 1,087,500 189 1,000M William Paterson University Series "E" 5% 7/1/2013 1,081,250 188 - ---------------------------------------------------------------------------------------------------------------------- 4,243,581 738 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- New York--8.2% New York City General Obligations: $150M 5 1/2% 8/1/2012 $164,813 $29 2,225M 5 1/8% 6/1/2018 2,380,750 414 New York State Dorm. Auth. Revenue: 1,000M Personal Income Tax 5% 3/15/2012 1,078,750 187 1,000M Student Hsg. Corp. 5% 7/1/2010 1,063,750 185 - ---------------------------------------------------------------------------------------------------------------------- 4,688,063 815 - ---------------------------------------------------------------------------------------------------------------------- North Carolina--3.8% 1,040M Buncombe Cnty. Met. Swr. Sys. Rev. 5% 7/1/2018 1,120,600 195 1,000M North Carolina Pwr. Agy. (Catawba Electric) Revenue Series "A" 5% 1/1/2017 (when-issued) 1,046,250 182 - ---------------------------------------------------------------------------------------------------------------------- 2,166,850 377 - ---------------------------------------------------------------------------------------------------------------------- Ohio--5.5% 2,000M Lakewood City School District GO 5% 12/1/2018 2,130,000 370 1,000M Ohio State Bldg. Adult Correction Facs. 5 1/2% 10/1/2008 1,056,250 184 - ---------------------------------------------------------------------------------------------------------------------- 3,186,250 554 - ---------------------------------------------------------------------------------------------------------------------- Oklahoma--.4% 215M Grady County Indl. Dev. Auth. Rev. 5 3/8% 11/1/2009 223,063 39 - ---------------------------------------------------------------------------------------------------------------------- Oregon--3.7% 1,000M Deschutes County Admin. School District #1 GO 5% 6/15/2013 1,087,500 189 1,000M Yamhill County School District #29J (Newberg) GO 5% 6/15/2010 1,066,250 185 - ---------------------------------------------------------------------------------------------------------------------- 2,153,750 374 - ---------------------------------------------------------------------------------------------------------------------- Pennsylvania--2.2% 150M Philadelphia Auth. Indl. Dev. Lease Rev. 5 1/4% 10/1/2010 162,000 28 1,000M Philadelphia Muni. Auth. Rev. Series "B" 5 1/4% 11/15/2011 1,085,000 189 - ---------------------------------------------------------------------------------------------------------------------- 1,247,000 217 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Tennessee--1.9% $1,025M Washington County Sch. & Pub. Improvement GO 5% 4/1/2013 $1,113,406 $193 - ---------------------------------------------------------------------------------------------------------------------- Texas--1.9% 1,000M Austin Airport Sys. Rev. 5 1/4% 11/15/2016 1,086,250 189 - ---------------------------------------------------------------------------------------------------------------------- Virginia--5.3% 2,835M Virginia St. Pub. Bldg. Auth. Rev. Series "A" 5% 8/1/2016 3,047,625 530 - ---------------------------------------------------------------------------------------------------------------------- West Virginia--1.8% 1,000M West Virginia State Sch. Bldg. Auth. 5% 1/1/2010 1,060,000 184 - ---------------------------------------------------------------------------------------------------------------------- Wisconsin--1.9% 1,000M Wisconsin State Petroleum Ins. Fee Rev. Series "1" 5% 7/1/2011 1,065,000 185 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $56,575,250) 99.2% 57,077,844 9,919 Other Assets, Less Liabilities .8 468,184 81 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $57,546,028 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Depreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $3,000M $(12,498) ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Municipal Bonds which have an irrevocable mandatory put by the issuer are shown maturing at the put date. Summary of Abbreviations: COP Certificate of Participation GO General Obligation See notes to financial statements
Fund Expenses FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $997.09 $5.08 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.12 $5.14 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $993.52 $8.74 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.44 $8.84 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.01% for Class A shares and 1.74% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN STATES (BAR CHART DATA:) Illinois 12.6% Georgia 11.3% New York 8.7% Texas 7.7% California 6.3% Massachusetts 5.9% Nevada 4.9% New Jersey 4.1% Missouri 3.7% Connecticut 3.6% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. Comparison of change in value of $10,000 investment in the First Investors Tax Exempt Fund, Inc. (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Insured Tax Exempt Fund Graph Plot Points for the periods ended 12/31/05 Merrill Insured Lynch Tax Exempt Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,693 10,454 Dec-97 10,494 11,595 Dec-98 11,084 12,418 Dec-99 10,681 11,630 Dec-00 11,956 13,625 Dec-01 12,375 14,234 Dec-02 13,624 15,761 Dec-03 14,238 16,734 Dec-04 14,589 17,647 Dec-05 14,840 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 1.72% (4.17%) Five Years 4.42% 3.19% Ten Years 4.64% 4.03% S.E.C. 30-Day Yield 2.88% Class B Shares One Year 1.00% (3.00%) Five Years 3.66% 3.31% Ten Years 4.07% 4.07% S.E.C. 30-Day Yield 2.34% The graph compares a $10,000 investment in the First Investors Insured Tax Exempt Fund, Inc. (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.29%), 3.11% and 3.98%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.74%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.12%), 3.22% and 4.02%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.19%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--98.5% Alabama--.8% $5,835M Alabama Water Pollution Control Auth. 6% 8/15/2014 $6,338,268 $83 - ---------------------------------------------------------------------------------------------------------------------- Alaska--.2% 1,500M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 1,657,500 22 - ---------------------------------------------------------------------------------------------------------------------- Arizona--2.0% 8,550M Arizona State Municipal Fing. Prog. COP 7.7% 8/1/2010 9,640,125 126 5,000M Phoenix Civic Improvement Corp. 5% 7/1/2030 5,256,250 69 - ---------------------------------------------------------------------------------------------------------------------- 14,896,375 195 - ---------------------------------------------------------------------------------------------------------------------- California--6.2% California State General Obligations: 10,000M 5% 6/1/2027 10,487,500 137 5,000M 5% 11/1/2030 5,175,000 68 2,000M Colton Joint Unified School Dist. GO Series "A" 5 3/8% 8/1/2026 2,192,500 29 Dublin Unified School Dist. GO Series "A": 2,400M 5% 8/1/2027 2,517,000 33 2,600M 5% 8/1/2028 2,723,500 36 10,000M Los Angeles Community College Dist. GO Series "A" 5 1/2% 8/1/2011* 11,050,000 145 7,485M Riverside Cnty. Redev. Agency 5% 10/1/2033 7,812,469 102 5,000M Vernon Redev. Agy. Tax Allocation Proj. 5% 9/1/2035 5,175,000 68 - ---------------------------------------------------------------------------------------------------------------------- 47,132,969 618 - ---------------------------------------------------------------------------------------------------------------------- Connecticut--3.6% 9,890M Connecticut State GO Series "C" 5% 4/1/2023 10,495,762 138 6,250M Connecticut State Hlth. & Edl. Inverse Floater Rate 6.369%11/1/2033** 6,757,812 88 9,000M Connecticut State Spl. Tax Oblig. Rev. Trans. Infrastructure 6 1/8% 9/1/2012 10,125,000 133 - ---------------------------------------------------------------------------------------------------------------------- 27,378,574 359 - ---------------------------------------------------------------------------------------------------------------------- District of Columbia--.8% 5,000M Washington DC GO Series "B" 6% 6/1/2021 6,043,750 79 - ---------------------------------------------------------------------------------------------------------------------- Florida--.2% 1,220M West Coast Regl. Wtr. Supply Rev. 10.4% 10/1/2010* 1,439,600 19 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Georgia--11.1% $15,000M Atlanta Airport Rev. Series "A" 5 1/2% 1/1/2010* $16,293,750 $214 9,040M Atlanta Water & Wastewater Rev. Series "A" 5 1/2% 11/1/2019 10,283,000 135 2,540M Fulton County Dev. Auth. Rev. Klaus Parking & Family Hsg. Projs. (Georgia Tech. Facs.) 5 1/4% 11/1/2021 2,759,075 36 Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue: 20,450M 6 1/4% 7/1/2011 22,776,188 298 28,305M 6%7/1/2013 32,515,369 426 - ---------------------------------------------------------------------------------------------------------------------- 84,627,382 1,109 - ---------------------------------------------------------------------------------------------------------------------- Hawaii--1.7% Hawaii State General Obligations: 5,500M 6% 10/1/2009 6,008,750 79 6,000M 6% 10/1/2010 6,667,500 87 - ---------------------------------------------------------------------------------------------------------------------- 12,676,250 166 - ---------------------------------------------------------------------------------------------------------------------- Illinois--12.5% Chicago Board of Education Lease Certificates of Participation Series "A": 5,000M 6% 1/1/2016 5,837,500 77 36,200M 6% 1/1/2020 42,580,250 558 Illinois Development Fin. Auth. Revenue (Rockford School #205): 5,000M 6.6% 2/1/2010 5,581,250 73 3,000M 6.65% 2/1/2011 3,420,000 45 Illinois State First Series General Obligations: 5,250M 6 1/8% 1/1/2010* 5,781,562 76 4,500M 5 1/2% 2/1/2016 4,916,250 64 8,000M 5 1/2% 5/1/2017 8,630,000 113 12,000M 5 1/2% 5/1/2018 12,930,000 169 4,000M Regional Transportation Auth. 7 3/4% 6/1/2019 5,305,000 70 - ---------------------------------------------------------------------------------------------------------------------- 94,981,812 1,245 - ---------------------------------------------------------------------------------------------------------------------- Kansas--.4% 2,475M Wyandotte County Unified Sch. Dist. #500 GO 5% 9/1/2020 2,679,188 35 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. December, 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Louisiana--2.0% $10,000M Ernest N. Morial (New Orleans LA Exhibit Hall) Auth. Spl. Tax 5% 7/15/2033 $10,250,000 $135 10,850M Regional Trans. Auth. Zero Coupon 12/1/2021 5,045,250 66 - ---------------------------------------------------------------------------------------------------------------------- 15,295,250 201 - ---------------------------------------------------------------------------------------------------------------------- Massachusetts--5.8% 10,025M Boston Water & Sewer Rev. 5 3/4% 11/1/2013 10,977,375 144 20,550M Massachusetts State GO 6% 8/1/2009 22,373,812 293 10,375M Massachusetts State Hlth. & Educ. Facs. Auth. Revenue (University of Mass.) 5% 10/1/2029 10,854,843 142 - ---------------------------------------------------------------------------------------------------------------------- 44,206,030 579 - ---------------------------------------------------------------------------------------------------------------------- Michigan--2.2% 10,000M Michigan State Environmental Protection Prog. GO 6 1/4% 11/1/2012 11,200,000 146 4,500M Monroe County Economic Dev. Corp. (Detroit Edison Co.) 6.95% 9/1/2022 5,940,000 78 - ---------------------------------------------------------------------------------------------------------------------- 17,140,000 224 - ---------------------------------------------------------------------------------------------------------------------- Minnesota--1.8% Minneapolis & St. Paul Metro Airports Comm. Airport Rev. Series "C": 3,380M 5 1/2% 1/1/2017 3,654,625 48 3,315M 5 1/2% 1/1/2018 3,580,200 47 5,770M 5 1/2% 1/1/2019 6,224,388 82 - ---------------------------------------------------------------------------------------------------------------------- 13,459,213 177 - ---------------------------------------------------------------------------------------------------------------------- Missouri--3.7% Missouri State Health & Educ. Facs. Auth. Series "A" (BJC Hlth. Sys.): 6,840M 6 3/4% 5/15/2010 7,737,750 101 10,175M 6 3/4% 5/15/2011 11,726,688 154 7,755M St. Louis Airport Revenue Series "A" 5 5/8% 7/1/2011* 8,559,581 112 - ---------------------------------------------------------------------------------------------------------------------- 28,024,019 367 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Nevada--4.8% Clark County Nevada Bond Bank General Obligations: $8,195M 5 1/2% 6/1/2017 $8,881,331 $116 8,645M 5 1/2% 6/1/2018 9,358,212 123 6,000M Las Vegas New Convention & Visitors Auth. Revenue 5 3/4% 7/1/2009* 6,510,000 85 Truckee Meadows Nevada Water Authority Revenue: 6,115M 5 1/2% 7/1/2017 6,596,556 87 2,605M 5 1/2% 7/1/2018 2,803,631 37 2,500M 5 1/2% 7/1/2019 2,684,375 35 - ---------------------------------------------------------------------------------------------------------------------- 36,834,105 483 - ---------------------------------------------------------------------------------------------------------------------- New Jersey--4.0% 5,125M Hudson Cnty. Impt. Auth. Lease Rev. 5% 4/1/2035 5,362,031 70 10,000M New Jersey State Trans. Corp. COP Fed. Trans. Admin. Grants Series "A" 5 3/4% 9/15/2009* 10,787,500 142 13,500M New Jersey State Turnpike Auth. Inverse Floater Rate 6.359% 1/1/2035** 14,411,250 189 - ---------------------------------------------------------------------------------------------------------------------- 30,560,781 401 - ---------------------------------------------------------------------------------------------------------------------- New Mexico--1.4% 10,000M New Mexico Fin. Auth. State Trans. Rev. Series "A" 5 1/4% 6/15/2021 10,887,500 143 - ---------------------------------------------------------------------------------------------------------------------- New York--8.6% New York City General Obligations: 5,000M Series "C" 5 1/2% 3/15/2015 5,462,500 72 3,275M Series "G" 5 5/8% 8/1/2020 3,614,781 47 22,250M New York City Municipal Water Fin. Auth. Rev. 6% 6/15/2021 27,005,938 354 New York State Dorm. Auth. Rev. (New York University): 5,000M 5 7/8% 5/15/2017 5,862,500 77 10,000M Series "A" 5 3/4% 7/1/2027 11,975,000 157 5,950M New York State Housing Fin. Agy. Rev. 5 7/8% 11/1/2010 6,118,683 80 5,000M Suffolk County Judicial Facs. Agy. (John P. Cohalan Complex) 5 3/4% 10/15/2013 5,450,000 72 - ---------------------------------------------------------------------------------------------------------------------- 65,489,402 859 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- North Carolina--3.0% $3,030M Charlotte Airport Rev. Series "A" 5 1/4% 7/1/2023 $3,261,037 $43 North Carolina Municipal Pwr. Agy. (Catawba Elec.): 8,950M 6% 1/1/2010 9,800,250 129 8,945M 6% 1/1/2011 9,951,313 130 - ---------------------------------------------------------------------------------------------------------------------- 23,012,600 302 - ---------------------------------------------------------------------------------------------------------------------- North Dakota--1.6% 10,500M Mercer County Pollution Control Rev. (Basin Elec. Pwr. Coop.) 7.2% 6/30/2013 12,271,875 161 - ---------------------------------------------------------------------------------------------------------------------- Ohio--.9% 6,000M Jefferson County Jail Construction GO 5 3/4% 12/1/2019 7,072,500 93 - ---------------------------------------------------------------------------------------------------------------------- Oklahoma--.8% Oklahoma State Ind. Dev. Auth. (Intregris Hlth. Sys.): 2,330M 6% 8/15/2009* 2,560,088 33 3,210M 6% 8/15/2017 3,490,875 46 - ---------------------------------------------------------------------------------------------------------------------- 6,050,963 79 - ---------------------------------------------------------------------------------------------------------------------- Oregon--.8% Portland Urban Renewal & Redev. South Park Blocks Series "A": 2,695M 5 3/4% 6/15/2015 2,957,763 39 2,630M 5 3/4% 6/15/2016 2,886,425 38 - ---------------------------------------------------------------------------------------------------------------------- 5,844,188 77 - ---------------------------------------------------------------------------------------------------------------------- Pennsylvania--2.5% 4,925M Philadelphia Housing Auth. Capital Fund Prog. Rev. Series "A" 5 1/2% 12/1/2019 5,466,750 72 12,050M Pittsburgh Water & Sewer Auth. Rev. 6 1/2% 9/1/2013 13,932,813 182 - ---------------------------------------------------------------------------------------------------------------------- 19,399,563 254 - ---------------------------------------------------------------------------------------------------------------------- South Dakota--.5% 3,855M South Dakota Hlth. & Educ. Facs. Auth. (McKennan Hosp.) 7 5/8% 1/1/2008* 4,129,669 54 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Tennessee--.5% $3,500M Memphis-Shelby County Sports Auth. Rev. (Memphis Arena Proj.) Series "A" 5 1/2% 11/1/2016 $3,885,000 $51 - ---------------------------------------------------------------------------------------------------------------------- Texas--7.6% 16,000M Austin Utilities Systems Rev. 6% 11/15/2013 18,100,000 237 5,000M Harris County Inverse Floater Rate 6.866% 8/15/2035** 5,431,250 71 Harris County Toll Road Sub. Liens General Obligations Series "A": 11,065M 6 1/2% 8/15/2012 12,849,231 169 7,305M 6 1/2% 8/15/2013 8,601,637 113 Houston Water Conveyance System Certificates of Participation: 4,705M 6 1/4% 12/15/2013 5,493,087 72 6,035M 6 1/4% 12/15/2015 7,166,562 94 - ---------------------------------------------------------------------------------------------------------------------- 57,641,767 756 - ---------------------------------------------------------------------------------------------------------------------- Utah--.3% 1,590M Provo Utah Electric System Rev. 10 3/8% 9/15/2015 2,120,663 28 - ---------------------------------------------------------------------------------------------------------------------- Virginia--.4% 3,310M Norfolk Airport Auth. Rev. Series "A" 5% 7/1/2022 3,446,538 44 - ---------------------------------------------------------------------------------------------------------------------- Washington--2.3% Snohomish County Washington Ltd. Tax General Obligations: 7,975M 5 1/2% 12/1/2017 8,662,844 113 8,410M 5 1/2% 12/1/2018 9,124,850 120 - ---------------------------------------------------------------------------------------------------------------------- 17,787,694 233 - ---------------------------------------------------------------------------------------------------------------------- Wisconsin--3.5% 12,000M Superior Wisconsin Ltd. Oblig. Rev. (Midwest Energy) 6.9%8/1/2021 15,570,000 204 10,745M Wisconsin State Series "E" 5% 5/1/2025 11,362,838 149 - ---------------------------------------------------------------------------------------------------------------------- 26,932,838 353 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $681,472,642) 98.5% 751,343,826 9,849 Other Assets, Less Liabilities 1.5 11,544,005 151 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $762,887,831 $10,000 ====================================================================================================================== Portfolio of Investments (continued) FIRST INVESTORS INSURED TAX EXEMPT FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $37,000M $(154,149) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 40,000M 229,691 - ---------------------------------------------------------------------------------------------------------------------- $77,000M $75,542 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Inverse floating rate securities (see Note 1F). The interest rates are reset weekly by the issuer. The interest rates shown are the rates in effect at December 31, 2005. Summary of Abbreviations: COP Certificate of Participation GO General Obligation See notes to financial statements
Fund Expenses FIRST INVESTORS INSURED TAX EXEMPT FUND II The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,006.15 $5.06 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.17 $5.09 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,002.24 $8.83 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.39 $8.89 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.00% for Class A shares and 1.75% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN STATES (BAR CHART DATA:) Ohio 12.1% Florida 10.5% Michigan 9.0% Texas 8.9% Colorado 7.0% California 6.7% Pennsylvania 5.4% Massachusetts 5.4% Arizona 5.1% Nebraska 4.2% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information FIRST INVESTORS INSURED TAX EXEMPT FUND II Comparison of change in value of $10,000 investment in the First Investors Insured Tax Exempt Fund II (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Insured Tax Exempt Fund II Graph Plot Points for the periods ended 12/31/05 Insured Merrill Tax Lynch Exempt Municipal Fund II Index Dec-95 $9,425 $10,000 Dec-96 9,810 10,454 Dec-97 10,820 11,595 Dec-98 11,620 12,418 Dec-99 11,397 11,630 Dec-00 12,936 13,625 Dec-01 13,638 14,234 Dec-02 15,320 15,761 Dec-03 16,093 16,734 Dec-04 16,795 17,647 Dec-05 17,427 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 3.77% (2.20%) Five Years 6.14% 4.90% Ten Years 6.34% 5.71% S.E.C. 30-Day Yield 2.96% Class B Shares One Year 2.97% (1.03%) Five Years 5.35% 5.02% Since Inception (12/18/00) 5.49% 5.33% S.E.C. 30-Day Yield 2.39% The graph compares a $10,000 investment in the First Investors Insured Tax Exempt Fund II (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.66%), 4.44% and 4.93%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.56%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Since Inception would have been (1.51%), 4.51% and 4.82%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.97%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS INSURED TAX EXEMPT FUND II December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.0% Alabama--.2% $250M Coffee County Public Bldg. Auth. 6.1% 9/1/2006* $259,518 $22 - ---------------------------------------------------------------------------------------------------------------------- Alaska--.9% 1,000M Alaska Intl. Airport Rev. Series "B" 5 3/4% 10/1/2015 1,105,000 94 - ---------------------------------------------------------------------------------------------------------------------- Arizona--5.1% 2,625M Downtown Phoenix Hotel Corp. Rev. Series "A" 5% 7/1/2036 2,723,438 231 1,095M Phoenix Arizona Civic Impt. Corp. Tax Rev. 5% 7/1/2035 1,144,275 97 1,075M Pinal Cnty. Sch. Dist. #43 Apache Jct. GO Series "A" 5% 7/1/2022 1,138,156 97 1,000M San Luis Civic Impt. Mun. Facs. Excise Tax Rev. 5% 7/1/2038 1,040,000 88 - ---------------------------------------------------------------------------------------------------------------------- 6,045,869 513 - ---------------------------------------------------------------------------------------------------------------------- Arkansas--2.9% 3,250M Arkansas State University Rev. Series "B" 5% 12/1/2030 3,392,188 288 - ---------------------------------------------------------------------------------------------------------------------- California--6.7% 5,000M California State GO 5% 6/1/2027 5,243,750 445 2,550M Dublin Unified Sch. Dist. GO Series "A" 5% 8/1/2029 2,671,125 227 - ---------------------------------------------------------------------------------------------------------------------- 7,914,875 672 - ---------------------------------------------------------------------------------------------------------------------- Colorado--7.0% 1,500M Adams & Arapahoe Cntys. Jnt. Sch. Dist. #28J Aurora GO Series "A" 5 1/8% 12/1/2021 1,610,625 137 1,000M Aspen Sales Tax Rev. Parks & Open Space 5 1/4% 11/1/2025 1,087,500 92 1,000M Centennial Downs Met. Dist. GO 5% 12/1/2028 1,045,000 89 1,035M Grand Cnty. Sch. Dist. #2 East Grand GO Series "B" 5% 12/1/2023 1,089,337 92 1,000M Lafayette Water Rev. 5 1/4% 12/1/2023 1,078,750 92 2,180M Widefield Water & San. Dist. Wtr. & Swr. Rev. 5% 12/1/2022 2,310,800 196 - ---------------------------------------------------------------------------------------------------------------------- 8,222,012 698 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INSURED TAX EXEMPT FUND II December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Florida--10.5% $335M Cocoa Water & Sewer Rev. 5 3/4% 10/1/2007* $352,169 $30 1,275M Peace River/Manasota Regl. Water Supply Auth. Rev. Series "B" 5% 10/1/2025 1,340,344 114 3,355M Polk Cnty Pub. Facs. Rev. 5% 12/1/2030 3,518,556 298 2,995M Riviera Beach Water & Swr. Rev. 5% 10/1/2029 3,148,494 267 2,200M Sarasota Utility System Rev. Series "A" 5% 10/1/2024 2,329,250 198 1,580M Tampa Util. Tax & Spl. Rev. 5 1/4% 10/1/2021 1,712,325 145 - ---------------------------------------------------------------------------------------------------------------------- 12,401,138 1,052 - ---------------------------------------------------------------------------------------------------------------------- Georgia--1.8% 1,000M Fulton Cnty. Dev. Auth. Rev. Klaus Parking & Family Hsg. Projs. (Georgia Tech. Facs.) 5 1/4% 11/1/2021 1,086,250 92 1,000M Georgia Municipal Association, Inc. COP (City Court Atlanta Proj.) 5 1/8% 12/1/2021 1,068,750 91 - ---------------------------------------------------------------------------------------------------------------------- 2,155,000 183 - ---------------------------------------------------------------------------------------------------------------------- Indiana--3.2% 1,030M Baugo School Bldg. Corp. 5 1/2% 1/15/2012* 1,138,150 97 1,105M Merrillville Multi-School Building Corp. GO 5 1/2% 1/15/2012* 1,221,025 104 1,250M Zionsville Community Schools Bldg. Corp. GO 5 3/4% 1/15/2012* 1,396,875 118 - ---------------------------------------------------------------------------------------------------------------------- 3,756,050 319 - ---------------------------------------------------------------------------------------------------------------------- Louisiana--1.7% 1,845M Louisiana Local Govt. Env. Facs. & Comm. 5 1/4% 10/1/2021 1,955,700 166 - ---------------------------------------------------------------------------------------------------------------------- Massachusetts--5.4% 1,305M Ashland GO 5 1/4% 5/15/2021 1,430,606 121 2,600M Massachusetts State Health & Educ. Facs. Auth. Rev. 5% 10/1/2029 2,720,250 231 1,000M Springfield GO 5 1/4% 1/15/2022 1,083,750 92 1,000M University Bldg. Auth. Proj. Rev. 5 1/4% 11/1/2023 1,081,250 92 - ---------------------------------------------------------------------------------------------------------------------- 6,315,856 536 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Michigan--9.0% $1,000M Detroit Michigan Series "B" GO 5% 4/1/2025 $1,043,750 $88 1,105M Grand Rapids Cmnty. College GO 5 1/4% 5/1/2021 1,187,875 101 1,825M Grass Lake Cmnty. School District GO 5% 5/1/2031 (when-issued) 1,904,844 162 1,000M Howell Public Schools GO Zero Coupon 5/1/2006* 453,700 38 1,000M Jackson Public Schools Bldg. & Site GO 5% 5/1/2026 1,047,500 89 1,000M Michigan Public Pwr. Agy. Rev. (Combustion Turbine #1 Proj.) 5 1/4% 1/1/2018 1,073,750 91 3,600M Southfield Public School Bldg. & Site Series "B" GO 5 1/8% 5/1/2021 3,874,500 329 - ---------------------------------------------------------------------------------------------------------------------- 10,585,919 898 - ---------------------------------------------------------------------------------------------------------------------- Minnesota--3.1% 3,545M Minneapolis & St Paul Airport Rev. Series "C" 5% 1/1/2031 3,691,231 313 - ---------------------------------------------------------------------------------------------------------------------- Missouri--1.1% 200M Liberty Sewer System Rev. 6.15% 2/1/2009* 216,500 18 310M Springfield Pub. Bldg. Corp. Leasehold Rev. (Springfield Rec. Proj.) Series "B" 5.85% 6/1/2010* 339,063 29 250M St. Joseph School Dist. GO (Direct Dep. Prog.) 5 3/4% 3/1/2019 272,500 23 375M St. Louis County Pattonville R-3 School Dist. GO (Direct Dep. Prog.) 5 3/4% 3/1/2010* 411,562 35 - ---------------------------------------------------------------------------------------------------------------------- 1,239,625 105 - ---------------------------------------------------------------------------------------------------------------------- Nebraska--4.2% 1,000M Municipal Energy Agency 5 1/4% 4/1/2021 1,075,000 91 3,675M Omaha Pub. Pwr. Dist. Elec. Rev. 5% 2/1/2030 3,863,344 328 - ---------------------------------------------------------------------------------------------------------------------- 4,938,344 419 - ---------------------------------------------------------------------------------------------------------------------- New Jersey--3.0% 1,000M Hudson County COP 5% 12/1/2021 1,058,750 90 2,350M New Jersey State Educ. Facs. Auth. Rowan Univ. 5 1/8% 7/1/2021 2,520,375 214 - ---------------------------------------------------------------------------------------------------------------------- 3,579,125 304 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS INSURED TAX EXEMPT FUND II December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- New York--.9% Camden Central School District General Obligations: $725M 5 1/2% 3/15/2016 $800,219 $68 250M 5 1/2% 3/15/2017 275,938 23 - ---------------------------------------------------------------------------------------------------------------------- 1,076,157 91 - ---------------------------------------------------------------------------------------------------------------------- Ohio--12.2% 1,255M Akron Sewer System Rev. 5 1/4% 12/1/2020 1,355,400 115 2,500M Akron-Summit Cnty. Pub. Library GO 5% 12/1/2020 2,637,500 224 1,000M Canton Ohio City Sch. Dist. GO 5% 12/1/2023 1,058,750 90 1,380M Cincinnati State Tech. & Cmnty. College Gen. Receipts 5 1/4% 10/1/2020 1,497,300 127 1,870M Lake Ohio Local School Dist. GO 5% 12/1/2025 1,961,163 166 Ohio State Bldg. Auth. State Facs.: 1,500M 5 1/2% 4/1/2018 1,636,875 139 2,000M 5% 4/1/2025 2,107,500 179 1,480M Wyoming City Sch. Dist. GO 5% 12/1/2022 1,570,650 133 450M Youngstown GO 6% 12/1/2031 501,188 43 - ---------------------------------------------------------------------------------------------------------------------- 14,326,326 1,216 - ---------------------------------------------------------------------------------------------------------------------- Oregon--2.2% 2,025M Multnomah Cnty. School Dist. #7 (Reynolds) GO 5% 6/1/2030 2,078,156 177 500M Oregon State Dept. of Administrative Services COP 5.65% 5/1/2007* 520,000 44 - ---------------------------------------------------------------------------------------------------------------------- 2,598,156 221 - ---------------------------------------------------------------------------------------------------------------------- Pennsylvania--5.4% 1,350M Bear Valley Water Rev. 5% 5/1/2036 1,397,250 119 525M Erie GO 5 3/4% 5/15/2007* 542,064 46 1,000M Jim Thorpe Area School District GO 5% 3/15/2027 1,048,750 89 1,200M New Castle Sanitation Auth. Swr. 5% 6/1/2027 1,242,000 105 State Public School Bldg. Authority Revenue: 1,000M Philadelphia 5 1/4% 6/1/2024 1,071,250 91 1,000M Richland 5% 11/15/2023 1,055,000 89 - ---------------------------------------------------------------------------------------------------------------------- 6,356,314 539 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Puerto Rico--.8% $895M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. 6 1/4% 7/1/2016 $905,365 $77 - ---------------------------------------------------------------------------------------------------------------------- South Carolina--.9% 1,000M Hilton Head Island Rev. 5 1/8% 12/1/2022 1,068,750 91 - ---------------------------------------------------------------------------------------------------------------------- Texas--8.9% 505M Austin Texas Utility Systems Rev. 6% 11/15/2013 571,273 49 5,000M Houston Utility Systems Rev. 5 1/4% 5/15/2020 5,425,000 460 Lower Colorado River Authority: 1,675M 5% 5/15/2025 1,748,283 148 1,035M 5% 5/15/2033 1,056,995 90 1,600M Tyler Ind. School District GO 5% 2/15/2028 1,674,000 142 - ---------------------------------------------------------------------------------------------------------------------- 10,475,551 889 - ---------------------------------------------------------------------------------------------------------------------- Virginia--.9% 1,000M Richmond Public Utility Rev. 5% 1/15/2022 1,060,000 90 - ---------------------------------------------------------------------------------------------------------------------- Washington--1.0% 1,090M King County Sewer Rev. 5 1/2% 1/1/2021 1,179,925 100 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $112,991,235) 116,603,994 9,896 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX EXEMPT INVESTMENTS--1.2% 1,400M Lehigh County PA General Purpose Auth. Adjustable Rate Note 3.75%** (cost $1,400,000) 1,400,000 119 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $114,391,235) 100.2% 118,003,994 10,015 Excess of Liabilities Over Other Assets (.2) (171,578) (15) - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $117,832,416 $10,000 ====================================================================================================================== Portfolio of Investments (continued) FIRST INVESTORS INSURED TAX EXEMPT FUND II December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Expiration Notional Unrealized Interest Rate Swaps Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $2,500M $12,822 Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 5,000M 28,712 - ---------------------------------------------------------------------------------------------------------------------- $7,500M $41,534 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Interest rate is determined and reset daily by the issuer and is the rate in effect at December 31, 2005. See notes to financial statements
Fund Expenses FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,001.80 $5.10 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.12 $5.14 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $998.07 $8.86 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.34 $8.94 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.01% for Class A shares and 1.76% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Education 30.1% General Obligations 29.7% Utilities 19.7% Transportation 14.4% Other Revenue 3.9% Housing 1.4% Health Care 0.8% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. Comparison of change in value of $10,000 investment in the First Investors New York Insured Tax Free Fund, Inc. (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors New York Insured Tax Free Fund Graph Plot Points for the periods ended 12/31/05 New York Merrill Insured Lynch Tax Free Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,704 10,454 Dec-97 10,462 11,595 Dec-98 11,048 12,418 Dec-99 10,642 11,630 Dec-00 11,963 13,625 Dec-01 12,339 14,234 Dec-02 13,629 15,761 Dec-03 14,224 16,734 Dec-04 14,571 17,647 Dec-05 14,886 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.16% (3.71%) Five Years 4.47% 3.24% Ten Years 4.68% 4.06% S.E.C. 30-Day Yield 2.83% Class B Shares One Year 1.41% (2.59%) Five Years 3.69% 3.34% Ten Years 4.10% 4.10% S.E.C. 30-Day Yield 2.26% The graph compares a $10,000 investment in the First Investors New York Insured Tax Free Fund, Inc. (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.86%), 3.10% and 3.94%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.69%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.74%), 3.18% and 3.98%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.11%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.6% Education--30.0% New York State Dormitory Authority Revenue: City University: $2,000M 5 3/4% 7/1/2009* $2,177,500 $123 3,955M 5 3/4% 7/1/2013 4,390,050 248 3,000M 6% 7/1/2020 3,622,500 205 2,350M Colgate University 6% 7/1/2021 2,822,938 160 1,500M Educational Facility 5 1/4% 5/15/2021 1,678,125 95 Fashion Institution of Technology: 1,000M 5 1/4% 7/1/2019 1,091,250 62 1,300M 5% 7/1/2029 1,363,375 77 New York University: 1,610M 6% 7/1/2018 1,921,938 109 2,205M 5% 7/1/2022 2,331,788 132 2,345M 5% 7/1/2023 2,479,837 140 NYSARC Insured Series "A": 1,425M 5 1/4% 7/1/2018 1,546,125 88 6,300M 5% 7/1/2026 6,662,250 377 3,135M Peekskill City School Districts 5% 10/1/2026 3,307,425 187 2,715M Rochester Institute of Technology 5 1/4% 7/1/2018 2,925,413 166 School Districts Financing Program: 3,550M Series "A" 5 1/4% 4/1/2022 3,865,062 219 Series "C": 1,000M 5 1/4% 4/1/2021 1,075,000 61 5,175M 5% 4/1/2035 5,414,344 306 Special Act School Districts Program: 1,375M 6% 7/1/2012 1,507,344 85 1,460M 6% 7/1/2013 1,595,050 90 1,185M State Dormitory Facilities Series "A" 5% 7/1/2021 1,251,656 71 - ---------------------------------------------------------------------------------------------------------------------- 53,028,970 3,001 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- General Obligations--29.6% Buffalo: $1,040M General Improvement Series "D" 6% 12/1/2009* $1,150,500 $65 School District Series "B": 1,130M 5 3/8% 11/15/2016 1,231,700 70 2,360M 5 3/8% 11/15/2017 2,575,350 146 2,620M 5 3/8% 11/15/2019 2,852,525 161 1,000M School District Series "D" 5 1/2% 12/15/2015 1,091,250 62 1,000M Central Square Central School Dist. 5% 5/15/2017 1,072,500 61 Eastport South Manor Central School District: 1,250M 5% 6/15/2016 1,342,187 76 1,315M 5% 6/15/2017 1,407,050 80 1,385M 5% 6/15/2018 1,478,487 84 1,000M Ilion Central School Dist. Series "B" 5 1/2% 6/15/2015 1,110,000 63 New York City: 3,530M Series "C" 5 5/8% 3/15/2012* 3,940,362 223 Series "E": 1,000M 6.2% 8/1/2008 1,068,750 60 4,570M 5 3/4%, 5/15/2010* 5,055,562 286 2,000M 5 3/4% 8/1/2018 2,217,500 125 2,500M Series "F" 5 1/4% 8/1/2014 2,693,750 152 2,885M Series "G" 5 3/4% 8/1/2018 3,198,744 181 1,680M Niagara Falls Public Improvement 7 1/2% 3/1/2015 2,156,700 122 1,395M North Syracuse Central School Dist. Series "A" 5% 6/15/2018 1,487,419 84 4,000M Puerto Rico Municipal Finance Agy. 6% 8/1/2009* 4,395,000 249 1,000M Red Hook Central School Dist. 5 1/8% 6/15/2017 1,075,000 61 1,000M Rome School District 5 1/2% 6/15/2016 1,080,000 61 1,775M Webster Central School District 5% 6/15/2019 1,903,687 108 Yonkers Series "A": 1,900M 5 3/4% 10/1/2010* 2,113,750 119 1,345M 5 1/8% 7/1/2016 1,442,512 82 1,410M 5 1/4% 7/1/2017 1,522,800 86 1,480M 5 1/4% 7/1/2018 1,594,700 90 - ---------------------------------------------------------------------------------------------------------------------- 52,257,785 2,957 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Health Care--.8% $1,320M New York State Dormitory Auth. Rev. United Cerebral Palsy 5 1/8% 7/1/2021 $1,415,700 $80 - ---------------------------------------------------------------------------------------------------------------------- Housing--1.4% 2,345M New York State Hsg. Fin. Agy. Rev. 6.05% 5/1/2011 2,408,761 136 - ---------------------------------------------------------------------------------------------------------------------- Transportation--14.3% Metropolitan Transit Authority of New York: Transit Authority Revenue: 2,500M Series "A" 5% 11/15/2020 2,640,625 149 2,015M Series "A" 5% 11/15/2030 2,088,044 118 5,000M Series "B" 5 1/4% 11/15/2022 5,406,250 306 2,725M Transit Dedicated Tax 5 1/8% 11/15/2020 2,915,750 165 2,855M New York State Thruway Auth. Gen. Rev. 4 3/4% 1/1/2029 2,926,375 166 1,500M New York State Thruway Auth. Hwy. & Bridge Series "A" 6% 4/1/2010* 1,666,875 94 6,900M Triborough Bridge & Tunnel Auth. Series "Y" 6% 1/1/2012 7,607,250 431 - ---------------------------------------------------------------------------------------------------------------------- 25,251,169 1,429 - ---------------------------------------------------------------------------------------------------------------------- Utilities--19.6% New York City Municipal Water Fin. Auth. Revenue: 2,750M 6% 6/15/2021 3,337,813 189 7,000M 5 1/2% 6/15/2033 7,542,500 427 5,000M Series "A" 5% 6/15/2035 5,181,250 293 2,500M Series "C" 5% 6/15/2029 2,628,125 148 8,000M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 8,780,000 497 6,165M Suffolk County Water Auth. Rev. 6% 6/1/2017 7,251,581 410 - ---------------------------------------------------------------------------------------------------------------------- 34,721,269 1,964 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC. December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--3.9% $2,500M Nassau County Interim Fin. Authority 5 3/4% 11/15/2010* $2,759,375 $156 3,000M New York City Transitional Fin. Auth. 5 1/4% 8/1/2020 3,217,500 182 800M New York State Dorm. Auth. Rev. (Jud. Facs. Lease) 7 3/8% 7/1/2016 961,000 55 - ---------------------------------------------------------------------------------------------------------------------- 6,937,875 393 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $164,769,750) 99.6% 176,021,529 9,960 Other Assets, Less Liabilities .4 703,627 40 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $176,725,156 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swaps Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $12,000M $61,545 Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 18,000M 103,361 - ---------------------------------------------------------------------------------------------------------------------- $30,000M $164,906 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,003.08 $3.79 Hypothetical (5% annual return before expenses) $1,000.00 $1,021.43 $3.82 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $998.85 $7.56 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.65 $7.63 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .75% for Class A shares and 1.50% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Utilities 27.0% Other Revenue 24.3% General Obligations 15.5% Education 13.7% Health Care 7.9% Certificates of Participation 7.8% Transportation 2.3% Housing 0.9% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Arizona Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Arizona Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Arizona Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,775 10,454 Dec-97 10,683 11,595 Dec-98 11,342 12,418 Dec-99 11,129 11,630 Dec-00 12,341 13,625 Dec-01 12,903 14,234 Dec-02 14,208 15,761 Dec-03 14,885 16,734 Dec-04 15,408 17,647 Dec-05 15,722 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.04% (3.85%) Five Years 4.96% 3.72% Ten Years 5.25% 4.63% S.E.C. 30-Day Yield 2.80% Class B Shares One Year 1.30% (2.70%) Five Years 4.19% 3.84% Ten Years 4.62% 4.62% S.E.C. 30-Day Yield 2.21% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Arizona Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.31%), 3.27% and 4.04%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.37%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.17%), 3.36% and 4.03%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.76%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--97.4% Certificates of Participation--7.6% $500M Arizona State Municipal Financing Prog. 5 3/8% 8/1/2030 $534,375 $309 750M Arizona State Univ. Research Infrastructure 5% 9/1/2026 786,563 454 - ---------------------------------------------------------------------------------------------------------------------- 1,320,938 763 - ---------------------------------------------------------------------------------------------------------------------- Education--13.5% 500M Arizona State University Rev. Sys. 5.65% 7/1/2009* 541,875 313 1,000M Energy Mgmt. Svcs. (Arizona St. Univ. Proj. Main Campus) 5 1/4% 7/1/2018 1,078,750 623 640M South Campus Group (Arizona St. Univ. Proj. South Campus) 5 5/8% 9/1/2023 709,600 409 - ---------------------------------------------------------------------------------------------------------------------- 2,330,225 1,345 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--15.2% Maricopa County School District: 1,000M #41 (Gilbert) Zero Coupon 1/1/2008 933,750 539 525M #80 (Chandler) 6 1/4% 7/1/2011 595,875 344 1,000M Phoenix Series "B" 5 3/8% 7/1/2019 1,101,250 636 - ---------------------------------------------------------------------------------------------------------------------- 2,630,875 1,519 - ---------------------------------------------------------------------------------------------------------------------- Health Care--7.7% 550M Maricopa County Ind. Dev. Hosp. Facs. Auth. (Samaritan Hlth. Svcs.) 7% 12/1/2016 683,375 394 600M Mesa Ind. Dev. Auth. (Discovery Hlth. Sys.) 5 7/8% 1/1/2010* 657,750 380 - ---------------------------------------------------------------------------------------------------------------------- 1,341,125 774 - ---------------------------------------------------------------------------------------------------------------------- Housing--.9% 150M Phoenix Ind. Dev. Auth. (Ventana Palms Apts.) 6.1% 10/1/2019 160,875 93 - ---------------------------------------------------------------------------------------------------------------------- Transportation--2.2% 385M Phoenix Airport Rev. 6 1/4% 7/1/2012 389,435 224 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities--26.5% $1,000M Mesa Utility Systems Revenue 5% 7/1/2019 $1,102,500 $637 Phoenix Civic Improvement Corp. Water Sys. Revenue: 1,000M 5% 7/1/2018 1,055,000 609 500M 5 1/2% 7/1/2020 546,875 316 500M Phoenix Civic Wastewater Rev. 5 3/8% 7/1/2015 541,875 313 750M Pima County Sewer Rev. 5 3/8% 7/1/2014 804,375 464 500M Tucson Water Rev. 5.3% 7/1/2009* 531,875 307 - ---------------------------------------------------------------------------------------------------------------------- 4,582,500 2,646 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--23.8% 750M Downtown Phoenix Hotel Corp. 5% 7/1/2036 778,125 449 250M Greater Arizona Dev. Auth. Series "A" 6% 8/1/2015 269,687 156 465M Maricopa County Public Finance Rev. 5 1/2% 7/1/2015 506,269 292 750M Maricopa County Stadium District Rev. 5 3/8% 6/1/2017 817,500 472 250M San Luis Civic Impt. Corp. Mun. Facs. Excise Tax 5% 7/1/2038 260,000 150 400M Sierra Vista Municipal Property Corp. Muni. Facs. Rev. 6% 1/1/2011 402,596 232 1,000M Tempe Excise Tax Rev. 5 1/4% 7/1/2020 1,085,000 627 - ---------------------------------------------------------------------------------------------------------------------- 4,119,177 2,378 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $15,991,180) 16,875,150 9,742 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX EXEMPT INVESTMENTS--.6% 100M Casa Grande Indl. Dev. Auth. Multi-Family Hsg. Rev. Adjustable Rate Note 3.57%** (cost $100,000) 100,000 58 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $16,091,180) 98.0% 16,975,150 9,800 Other Assets, Less Liabilities 2.0 346,107 200 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $17,321,257 $10,000 ====================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------- Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $1,000M $(4,166) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 900M 5,168 - ---------------------------------------------------------------------------------------------------------------------- $1,900M $1,002 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Interest rate is determined and reset weekly by the issuer and are the rates in effect at December 31, 2005. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,002.73 $4.29 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.93 $4.33 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.66 $8.06 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.14 $8.13 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .85% for Class A shares and 1.60% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Utilities 33.4% Other Revenue 23.6% General Obligations 22.2% Certificates of Participation 13.0% Transportation 6.4% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- California Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - California Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch California Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,794 10,454 Dec-97 10,740 11,595 Dec-98 11,418 12,418 Dec-99 11,089 11,630 Dec-00 12,592 13,625 Dec-01 13,068 14,234 Dec-02 14,444 15,761 Dec-03 15,087 16,734 Dec-04 15,684 17,647 Dec-05 16,095 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.63% (3.25%) Five Years 5.03% 3.80% Ten Years 5.50% 4.87% S.E.C. 30-Day Yield 3.03% Class B Shares One Year 1.92% (2.08%) Five Years 4.25% 3.91% Ten Years 4.87% 4.87% S.E.C. 30-Day Yield 2.46% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- California Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.56%), 3.41% and 4.46%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.72%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.40%), 3.49% and 4.46%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.14%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--97.7% Certificates of Participation--12.8% $500M Castaic Lake Water Agency Water Sys. Impt. Proj. 7% 8/1/2012 $596,875 $205 750M Los Angeles Real Property Prog. 5.3% 4/1/2022 813,750 279 1,200M Riverside California 5% 9/1/2028 1,251,000 429 1,000M West Contra Costa Healthcare 5 3/8% 7/1/2024 1,081,250 371 - ---------------------------------------------------------------------------------------------------------------------- 3,742,875 1,284 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--22.0% 400M Chaffey Community College District 5 1/4% 7/1/2012* 443,500 152 500M Fontana School District 5 3/4% 5/1/2022 543,750 187 650M Jefferson Unified High Sch. Dist. (San Mateo Cnty.) 6 1/4% 2/1/2016 773,500 266 1,000M Morgan Hill Unified School District 5 1/4% 8/1/2018 1,086,250 373 750M Natomas Unified School District 5.95% 9/1/2021 878,438 302 1,000M Oak Valley Hospital District 5% 7/1/2035 1,037,500 356 1,000M Santa Monica Community College District Series "A" 5% 5/1/2025 1,057,500 363 500M Walnut Valley School District 7.2% 2/1/2016 598,750 205 - ---------------------------------------------------------------------------------------------------------------------- 6,419,188 2,204 - ---------------------------------------------------------------------------------------------------------------------- Transportation--6.4% 1,000M Port of Oakland Revenue Bonds Series "M" 5 1/4% 11/1/2020 1,078,750 371 700M Puerto Rico Commonwealth Hwy. & Trans. Auth. Rev. 5 3/4% 7/1/2010* 775,250 267 - ---------------------------------------------------------------------------------------------------------------------- 1,854,000 638 - ---------------------------------------------------------------------------------------------------------------------- Utilities--33.1% 250M Fresno Sewer Rev. 6 1/4% 9/1/2014 294,062 101 1,350M Los Angeles Wastewater Sys. Rev. Series "A" 5% 6/1/2032 1,410,750 485 1,150M Los Angeles Water & Power Rev. Series "B" 5 1/8% 7/1/2020 1,230,500 423 700M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 768,250 264 2,000M Sacramento Cnty. Sanitation Dist. Fing. Auth. Rev. 5% 12/1/2027 2,072,500 712 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities (continued) $1,210M San Juan Basin Auth. Rev. (Ground Wtr. Rec. Proj.) 5 1/4% 12/1/2017 $1,323,437 $455 1,525M Semitropic Impt. Dist. Water Storage Dist. 5 1/2% 12/1/2022 1,687,031 580 750M South Gate Public Fing. Auth. Wtr. Rev. Series "A" 6% 10/1/2012 844,688 290 - ---------------------------------------------------------------------------------------------------------------------- 9,631,218 3,310 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--23.4% 1,000M California State Public Works Board 6 1/2% 12/1/2008 1,082,500 372 1,000M Long Beach Fing. Auth. Rev. 6% 11/1/2017 1,167,500 401 1,105M Palm Springs Fing. Auth. Lease Rev. Series "A" (Convention Ctr. Proj.) 5 1/4% 11/1/2020 1,219,644 419 1,000M Rohnert Park Cmnty. Dev. Comm. Tax Alloc. Rev. 5 1/4% 8/1/2020 1,076,250 370 325M San Jose Redevelopment Agy. 6% 8/1/2015 378,625 130 700M San Mateo Joint Powers Auth. Lease Rev. 6 1/2% 7/1/2015 843,500 290 1,000M Vernon Redevelopment Agy. Tax Allocation 5% 9/1/2035 1,035,000 356 - ---------------------------------------------------------------------------------------------------------------------- 6,803,019 2,338 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $26,731,974) 28,450,300 9,774 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX EXEMPT INVESTMENTS--1.4% 400M Puerto Rico Commonwealth Govt. Dev. Bank Adjustable Rate Note 3.4%** (cost $400,000) 400,000 138 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $27,131,974) 99.1% 28,850,300 9,912 Other Assets, Less Liabilities .9 257,194 88 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $29,107,494 $10,000 ====================================================================================================================== Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Expiration Notional Unrealized Interest Rate Swaps Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $2,000M $10,258 Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 1,500M 8,613 - ---------------------------------------------------------------------------------------------------------------------- $3,500M $18,871 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Interest rate is determined and reset periodically by the issuer and is the rate in effect at December 31, 2005. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--COLORADO FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,002.44 $3.03 Hypothetical (5% annual return before expenses) $1,000.00 $1,022.19 $3.06 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $998.47 $6.80 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.40 $6.87 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .60% for Class A shares and 1.35% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 39.2% Utilities 17.4% Other Revenue 17.3% Education 8.6% Health Care 5.7% Transportation 5.3% Certificates of Participation 4.6% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--COLORADO FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Colorado Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Colorado Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Colorado Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,854 10,454 Dec-97 10,778 11,595 Dec-98 11,453 12,418 Dec-99 11,207 11,630 Dec-00 12,520 13,625 Dec-01 13,177 14,234 Dec-02 14,594 15,761 Dec-03 15,337 16,734 Dec-04 15,876 17,647 Dec-05 16,243 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.32% (3.56%) Five Years 5.34% 4.11% Ten Years 5.60% 4.97% S.E.C. 30-Day Yield 3.05% Class B Shares One Year 1.51% (2.49%) Five Years 4.56% 4.23% Ten Years 4.96% 4.96% S.E.C. 30-Day Yield 2.50% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Colorado Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.21%), 3.47% and 4.13%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.46%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.16%), 3.52% and 4.12%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.86%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--COLORADO FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--96.6% Certificates of Participation--4.6% $250M Broomfield Open Space 5 1/2% 12/1/2020 $269,375 $252 200M Greeley Building Auth. 5.6% 11/1/2019 216,750 203 - ---------------------------------------------------------------------------------------------------------------------- 486,125 455 - ---------------------------------------------------------------------------------------------------------------------- Education--8.5% Colorado School of Mines Auxiliary Facs. Revenue: 200M 5 1/4% 12/1/2020 214,750 201 300M 5% 12/1/2024 316,125 295 350M University of Northern Colorado Rev. 5 1/2% 6/1/2018 378,438 353 - ---------------------------------------------------------------------------------------------------------------------- 909,313 849 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--38.5% 500M Adams & Arapahoe Cntys. Jnt. Sch. Dist. #28J Aurora Series "A" 5 1/8% 12/1/2021 536,875 501 1,000M Arapahoe Cnty. Sch. Dist. #6 Littleton 5 1/4% 12/1/2019 1,078,750 1,008 200M Arapahoe Cnty. Water & Wastewater Series "B" 5 3/4% 12/1/2019 220,750 206 250M Centennial Downs Met. District 5% 12/1/2028 261,250 244 200M Clear Creek School District #RE 1, 6 1/4% 12/1/2010* 224,750 210 El Paso County School District: 350M #2 (Harrison) 5 1/2% 12/1/2018 379,750 355 250M #20, 5 1/4% 12/15/2017 270,625 253 200M #49 (Falcon) 5 1/2% 12/1/2013 221,750 207 350M #49 (Falcon) 5 3/4% 12/1/2015 387,625 362 250M Hyland Hills Park & Rec. Dist. 5 1/2% 12/15/2018 276,562 258 250M Pueblo County School District #70, 5 1/4% 12/1/2022 268,125 250 - ---------------------------------------------------------------------------------------------------------------------- 4,126,812 3,854 - ---------------------------------------------------------------------------------------------------------------------- Health Care--5.6% 200M Colorado Health Facs. (Poudre Valley Hlth. Care) 5 5/8% 12/1/2009* 217,750 203 350M Denver City & Cnty. Mental Hlth. Corp. Series "A" 5 1/2% 7/15/2015 384,125 359 - ---------------------------------------------------------------------------------------------------------------------- 601,875 562 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--COLORADO FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Transportation--5.2% Denver City & County Airport Revenue: $255M 5 1/2% 11/15/2016 $277,631 $259 250M 5 3/4% 11/15/2020 280,000 261 - ---------------------------------------------------------------------------------------------------------------------- 557,631 520 - ---------------------------------------------------------------------------------------------------------------------- Utilities--17.2% 200M Boulder Water & Sewer Rev. 5.6% 12/1/2016 217,750 203 200M Broomfield Water Activity Enterprise Water Rev. 5 1/2% 12/1/2019 216,500 202 Colorado Water Resources & Power Dev. Authority: 250M Fountain Utility (Enterprise Proj.) 5% 12/1/2035 257,500 241 Small Water Resources Rev. Series "A": 200M 5 3/4% 11/1/2017 219,250 205 250M 5 1/4% 11/1/2021 268,438 251 400M Denver City & County Wastewater Rev. 5 1/4% 11/1/2016 434,000 405 200M Pueblo Board Waterworks Water Rev. 6% 11/1/2010* 222,250 208 - ---------------------------------------------------------------------------------------------------------------------- 1,835,688 1,715 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--17.0% 250M Golden Sales & Use Tax Rev. 5 1/4% 12/1/2016 269,375 252 Larimer County Sales & Use Tax Revenue: 280M 5 1/4% 12/15/2016 304,150 284 400M 5 1/2% 12/15/2018 442,500 413 250M Thornton County Sales & Use Tax Rev. 5 1/4% 9/1/2015 270,000 252 500M Westminster Sales & Use Tax Rev. 5 1/4% 12/1/2021 537,500 502 - ---------------------------------------------------------------------------------------------------------------------- 1,823,525 1,703 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $9,758,093) 10,340,969 9,658 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX EXEMPT INVESTMENTS--1.9% 200M Colorado Hsg. & Fin. Auth. Rev. Bonds, Adjustable Rate Note 3.59%** (cost $200,000) 200,000 187 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $9,958,093) 98.5% 10,540,969 9,845 Other Assets, Less Liabilities 1.5 166,294 155 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $10,707,263 $10,000 ====================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------- Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 $500M $2,871 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Interest rate is determined and reset weekly by the issuer and is the rate in effect at December 31, 2005. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,003.13 $4.29 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.93 $4.33 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.55 $8.06 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.14 $8.13 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .85% for Class A shares and 1.60% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 43.0% Health Care 22.1% Education 17.0% Utilities 9.3% Transportation 3.6% Housing 3.5% Other Revenue 1.5% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Connecticut Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Connecticut Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Connecticut Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,741 10,454 Dec-97 10,595 11,595 Dec-98 11,247 12,418 Dec-99 11,030 11,630 Dec-00 12,183 13,625 Dec-01 12,702 14,234 Dec-02 13,955 15,761 Dec-03 14,539 16,734 Dec-04 15,086 17,647 Dec-05 15,460 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.48% (3.39%) Five Years 4.88% 3.64% Ten Years 5.07% 4.45% S.E.C. 30-Day Yield 2.86% Class B Shares One Year 1.68% (2.32%) Five Years 4.09% 3.75% Ten Years 4.45% 4.45% S.E.C. 30-Day Yield 2.30% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Connecticut Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.72%), 3.30% and 4.07%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.55%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.66%), 3.37% and 4.07%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.96%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--97.3% Education--16.6% Connecticut St. Hlth. & Educ. Facs. Auth. Revenue: $1,000M Fairfield Univ. 5 5/8% 7/1/2009* $1,083,750 $283 1,000M Kent School Series "D" 5% 7/1/2021 1,068,750 279 1,235M Trinity College Series "H" 5% 7/1/2019 1,318,362 344 1,100M University of Connecticut 5 1/8% 2/15/2020 1,179,750 308 University of Connecticut Student Fees Rev. Series "A": 600M 5 1/4% 11/15/2021 654,000 171 1,000M 5% 11/15/2029 1,052,500 275 - ---------------------------------------------------------------------------------------------------------------------- 6,357,112 1,660 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--41.9% 500M Branford 5% 5/15/2014 538,750 141 Bridgeport: 750M Series "A" 6 1/8% 7/15/2010* 840,937 220 1,000M Series "A" 5 3/8% 8/15/2019 1,090,000 285 1,000M Series "A" 5 1/4% 8/15/2024 1,077,500 281 Connecticut State: 300M Series "A" 5 1/4% 6/15/2009* 319,875 83 500M Series "B" 5 3/4% 11/1/2009* 545,625 142 690M Series "E" 6% 3/15/2012 781,425 204 1,020M Series "F" 5% 10/15/2021 1,081,200 282 1,090M Cromwell 5% 6/15/2020 1,159,487 303 1,000M Glastonbury 5% 6/15/2021 1,073,750 280 1,650M Hartford 5% 8/15/2019 1,755,187 458 1,080M Hartford County Met. Dist. 5% 5/1/2024 1,142,100 298 800M New Britain 6% 3/1/2012 880,000 230 New Haven: 735M 6% 11/1/2009* 810,338 212 470M 5 1/4% 11/1/2013 506,425 132 395M 5% 11/1/2017 424,625 111 650M Puerto Rico Municipal Finance Agy. 5 1/2% 8/1/2009* 703,625 184 1,250M Waterbury 5% 4/1/2021 1,314,062 343 - ---------------------------------------------------------------------------------------------------------------------- 16,044,911 4,189 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Health Care--21.5% Connecticut State Hlth. & Educ. Facs. Auth. Revenue: $450M Bridgeport Hospital 6 1/2% 7/1/2012 $450,788 $118 400M Child Care Facilities Program 5 1/2% 7/1/2019 431,000 113 2,165M Children's Medical Center Series "B" 5% 7/1/2021 2,286,781 597 1,500M Connecticut State University System 5% 11/1/2033 1,560,000 407 700M New Britain General Hospital 6 1/8% 7/1/2014 708,022 185 Village Families & Children Series "A": 370M 5% 7/1/2015 396,363 103 385M 5% 7/1/2016 412,431 108 405M 5% 7/1/2017 432,338 113 1,000M William W. Buckus Hospital 5% 7/1/2035 1,051,250 274 500M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. 6 1/4% 7/1/2016 505,790 132 - ---------------------------------------------------------------------------------------------------------------------- 8,234,763 2,150 - ---------------------------------------------------------------------------------------------------------------------- Housing--3.4% Connecticut State Housing Finance Authority: 750M 6% 11/15/2010 771,368 202 500M 5.85% 6/15/2030 530,000 138 - ---------------------------------------------------------------------------------------------------------------------- 1,301,368 340 - ---------------------------------------------------------------------------------------------------------------------- Transportation--3.5% Connecticut State Special Tax Obligation Revenue Transportation Infrastructure: 250M 6 1/8% 9/1/2012 280,625 73 1,000M 5% 12/1/2021 1,057,500 276 - ---------------------------------------------------------------------------------------------------------------------- 1,338,125 349 - ---------------------------------------------------------------------------------------------------------------------- Utilities--9.0% Puerto Rico Electric Power Authority Revenue: 750M 5 3/8% 7/1/2017 823,125 215 250M 5 1/4% 7/1/2022 269,375 70 250M 5 1/4% 7/1/2029 268,125 70 2,000M South Central Connecticut Regional Water Authority 5% 8/1/2033 2,092,500 547 - ---------------------------------------------------------------------------------------------------------------------- 3,453,125 902 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--1.4% $545M Connecticut State Dev. Auth. Govtl. Lease Rev. 6 1/2% 6/15/2008 $551,268 $144 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $35,781,611) 97.3% 37,280,672 9,734 Other Assets, Less Liabilities 2.7 1,020,168 266 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $38,300,840 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $2,500M $12,822 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,001.26 $4.54 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.67 $4.58 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $997.70 $8.31 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.89 $8.39 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .90% for Class A shares and 1.65% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Other Revenue 45.5% Utilities 38.7% Transportation 11.2% General Obligations 4.6% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Florida Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Florida Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Florida Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,742 10,454 Dec-97 10,636 11,595 Dec-98 11,284 12,418 Dec-99 10,953 11,630 Dec-00 12,224 13,625 Dec-01 12,744 14,234 Dec-02 14,080 15,761 Dec-03 14,670 16,734 Dec-04 15,166 17,647 Dec-05 15,469 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.00% (3.89%) Five Years 4.82% 3.58% Ten Years 5.08% 4.46% S.E.C. 30-Day Yield 2.94% Class B Shares One Year 1.26% (2.74%) Five Years 4.04% 3.70% Ten Years 4.45% 4.45% S.E.C. 30-Day Yield 2.38% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Florida Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.17%), 3.28% and 4.12%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.70%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.02%), 3.38% and 4.12%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.12%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.0% General Obligations--4.6% $1,000M Miami Homeland Defense 5 1/2% 1/1/2020 $1,085,000 $320 415M North Springs Improvement District 7% 10/1/2009 467,394 138 - ---------------------------------------------------------------------------------------------------------------------- 1,552,394 458 - ---------------------------------------------------------------------------------------------------------------------- Transportation--11.1% 1,000M Lee County Transportation Facs. 5% 10/1/2021 1,071,250 316 1,000M Miami-Dade County Expwy. Auth. Toll Sys. Rev. 6% 7/1/2014 1,111,250 328 1,500M St. John's County Transportation Impt. 5% 10/1/2023 1,584,375 466 - ---------------------------------------------------------------------------------------------------------------------- 3,766,875 1,110 - ---------------------------------------------------------------------------------------------------------------------- Utilities--38.3% 1,000M Escambia County Utilities Auth. Sys. Rev. 6 1/4% 1/1/2015 1,172,500 346 1,000M Florida Keys Aqueduct Auth. Wtr. Rev. 5% 9/1/2021 1,058,750 312 1,000M Florida State Municipal Power Agy. Rev. 5 1/2% 10/1/2019 1,103,750 325 1,495M Lakeland Electric & Water Rev. 6.05% 10/1/2014 1,741,675 513 1,000M Miami Beach Stormwater Rev. 5 3/8% 9/1/2030 1,068,750 314 1,130M Palm Bay Utility Rev. 5 1/4% 10/1/2018 1,241,588 366 1,000M Plant City Utility System Rev. 6% 10/1/2015 1,137,500 335 1,000M Riviera Beach Utility Spl. Dist. Wtr. & Swr. Rev. 5% 10/1/2029 1,051,250 310 1,200M Sarasota County Utility System Rev. 5 1/4% 10/1/2020 1,293,000 381 1,000M Stuart Utilities Rev. 5 1/4% 10/1/2020 1,090,000 321 1,000M Tallahassee Energy System Rev. 5% 10/1/2028 1,047,500 309 - ---------------------------------------------------------------------------------------------------------------------- 13,006,263 3,832 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--45.0% 1,380M DeSoto County Capital Improvement Rev. 5 1/4% 10/1/2019 1,502,475 443 Florida Municipal Loan Council Revenue: 1,500M 5 1/4% 11/1/2019 1,627,500 480 1,000M 5 3/8% 11/1/2025 1,077,500 318 1,205M Highlands County Infrastructure Sales Surtax Rev. 5% 11/1/2018 1,284,831 379 2,000M Jacksonville Sales Tax Rev. 5 3/8% 10/1/2017 2,185,000 644 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue (continued) Osceola County Tourist Development Tax Revenue: $1,000M 5 1/2% 10/1/2017 $1,098,750 $324 1,000M 5 1/2% 10/1/2018 1,097,500 323 1,000M Pasco County Sales Tax Rev. 5% 12/1/2020 1,067,500 315 1,000M Polk County Public Facs. Rev. 5% 12/1/2030 1,048,750 309 1,000M Seminole County Sales Tax Rev. 5% 10/1/2031 1,052,500 310 1,000M St. Augustine Capital Improvement 5% 10/1/2024 1,060,000 312 1,000M Tampa Sports Auth. Sales Tax Rev. (Tampa Bay Arena) 5 3/4% 10/1/2020 1,162,500 343 - ---------------------------------------------------------------------------------------------------------------------- 15,264,806 4,500 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $31,691,460) 99.0% 33,590,338 9,900 Other Assets, Less Liabilities 1.0 338,946 100 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $33,929,284 $10,000 ====================================================================================================================== Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $2,000M $(8,332) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 3,900M 22,394 - ---------------------------------------------------------------------------------------------------------------------- $5,900M $14,062 ====================================================================================================================== See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,002.16 $3.03 Hypothetical (5% annual return before expenses) $1,000.00 $1,022.19 $3.06 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $998.93 $6.80 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.40 $6.87 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .60% for Class A shares and 1.35% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Utilities 40.0% Education 20.5% Health Care 16.5% Other Revenue 13.5% Certificates of Participation 4.4% General Obligations 2.2% Housing 1.3% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Georgia Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Georgia Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Georgia Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,793 10,454 Dec-97 10,772 11,595 Dec-98 11,427 12,418 Dec-99 11,079 11,630 Dec-00 12,588 13,625 Dec-01 13,157 14,234 Dec-02 14,583 15,761 Dec-03 15,304 16,734 Dec-04 15,791 17,647 Dec-05 16,190 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.53% (3.38%) Five Years 5.16% 3.92% Ten Years 5.56% 4.94% S.E.C. 30-Day Yield 3.02% Class B Shares One Year 1.81% (2.19%) Five Years 4.38% 4.04% Ten Years 4.93% 4.93% S.E.C. 30-Day Yield 2.46% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Georgia Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.01%), 3.30% and 4.14%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.51%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.83%), 3.36% and 4.14%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.93%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--94.7% Certificates of Participation--4.2% $500M Gwinnett County Dev. Auth. Pub. Schs. Proj. 5 1/4% 1/1/2019 $543,125 $423 - ---------------------------------------------------------------------------------------------------------------------- Education--19.8% 500M Americus-Sumter Payroll Dev. Auth. Rev. 5% 6/1/2036 518,750 404 250M Athens Dev. Auth. Hsg. & Lease Rev. (East Campus) 5 1/4% 12/1/2022 269,375 210 500M Bulloch County Dev. Auth. 5 1/4% 8/1/2019 545,625 424 Fulton County Development Authority Revenue: 350M Georgia Tech Athletic Assoc. 5 1/2% 10/1/2017 385,875 300 250M Morehouse College 6 1/4% 12/1/2021 281,563 219 500M Valdosta Hsg. Auth. Rev. 5 1/4% 8/1/2023 540,000 420 - ---------------------------------------------------------------------------------------------------------------------- 2,541,188 1,977 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--2.1% Atlanta: 125M 5 3/8% 12/1/2010* 135,625 106 130M 5 3/8% 12/1/2018 138,125 107 - ---------------------------------------------------------------------------------------------------------------------- 273,750 213 - ---------------------------------------------------------------------------------------------------------------------- Health Care--15.9% 500M Cobb County Hospital Auth. Rev. 5 1/4% 4/1/2024 537,500 418 500M Fulton DeKalb Hospital Auth. Rev. 5 1/4% 1/1/2018 541,250 421 525M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. 6 1/4% 7/1/2016 531,079 413 400M Tift County Hospital Auth. Rev. 5 1/4% 12/1/2019 432,000 336 - ---------------------------------------------------------------------------------------------------------------------- 2,041,829 1,588 - ---------------------------------------------------------------------------------------------------------------------- Housing--1.2% 150M Georgia State Hsg. & Fin. Auth. Rev. 5.7% 12/1/2011 155,250 121 - ---------------------------------------------------------------------------------------------------------------------- Utilities--38.5% 235M Atlanta Water & Wastewater Rev. 5 1/2% 11/1/2017 265,550 207 255M Brunswick Water & Sewer Rev. 6.1% 10/1/2019 304,406 237 250M Cairo Combined Public Utility Rev. 5% 1/1/2024 263,438 205 Columbia County Water & Sewer Revenue: 250M 6 1/4% 6/1/2010* 278,750 217 400M 5% 6/1/2024 421,500 328 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities (continued) $500M Fayetteville Water & Sewer Rev. 5% 11/1/2021 $529,375 $412 250M Forsyth County Water & Sewer Rev. 6 1/4% 4/1/2010* 279,687 218 250M Fulton County Water & Sewer Rev. 6 3/8% 1/1/2014 285,313 222 235M Gainesville Water & Sewer Rev. 5 1/4% 11/15/2015 254,094 198 Georgia Municipal Gas Authority Revenue: Buford Project: 80M 6.8% 11/1/2009 80,969 63 250M 5 1/2% 11/1/2012 271,562 211 100M Warner Robins Series "B" 5.8% 1/1/2015 102,250 79 400M Gwinnett County Water & Sewer Rev. 5% 8/1/2018 426,000 331 200M Newnan Water Sewer & Light Comm. Pub. Utils. Rev. 5% 1/1/2015 214,500 167 400M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 439,000 341 500M Upper Oconee Basin Water Auth. 5% 7/1/2026 526,875 410 - ---------------------------------------------------------------------------------------------------------------------- 4,943,269 3,846 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--13.0% 250M Atlanta & Fulton Cntys. Rec. Auth. Rev. 5 1/4% 12/1/2010* 271,875 212 300M Atlanta Dev. Auth. Rev. (Yamacraw Design Ctr. Proj.) Series "A" 5 3/8% 1/1/2012* 329,250 256 500M Cobb-Marietta Coliseum & Exhibit Hall Auth. Rev. 5 1/2% 10/1/2018 566,250 441 250M College Park Dev. Auth. Rev. (Civic Ctr. Proj.) 5 3/4% 9/1/2010* 279,062 217 200M Fayette Cnty. Pub. Facs. Auth. Rev. (Criminal Justice Ctr.) 6 1/4% 6/1/2010* 224,750 175 - ---------------------------------------------------------------------------------------------------------------------- 1,671,187 1,301 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $11,511,409) 12,169,598 9,469 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX EXEMPT INVESTMENTS--1.5% $200M Roswell Housing Auth. Multi-Family Rev. Adjustable Rate Note 3.54%** (cost $200,000) 200,000 154 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $11,711,409) 96.2% 12,369,598 9,623 Other Assets, Less Liabilities 3.8 484,469 377 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $12,854,067 $10,000 ====================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------- Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 $1,000M $5,742 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Interest rate is determined and reset periodically by the issuer and is the rate in effect at December 31, 2005. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,001.81 $4.29 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.93 $4.33 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $997.98 $8.06 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.14 $8.13 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .85% for Class A shares and 1.60% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 26.4% Utilities 18.8% Health Care 14.9% Education 13.6% Other Revenue 12.8% Transportation 7.5% Housing 3.1% Certificates of Participation 2.9% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Maryland Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Maryland Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Maryland Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,739 10,454 Dec-97 10,673 11,595 Dec-98 11,354 12,418 Dec-99 11,066 11,630 Dec-00 12,399 13,625 Dec-01 12,888 14,234 Dec-02 14,191 15,761 Dec-03 14,825 16,734 Dec-04 15,194 17,647 Dec-05 15,543 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.30% (3.61%) Five Years 4.62% 3.40% Ten Years 5.13% 4.51% S.E.C. 30-Day Yield 2.82% Class B Shares One Year 1.52% (2.48%) Five Years 3.84% 3.49% Ten Years 4.50% 4.50% S.E.C. 30-Day Yield 2.24% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Maryland Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.96%), 3.02% and 3.95%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.49%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.83%), 3.09% and 3.95%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.89%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--97.9% Certificates of Participation--2.9% $750M Baltimore Board of Education Admin. Proj. 5.8% 4/1/2011 $821,250 $285 - ---------------------------------------------------------------------------------------------------------------------- Education--13.3% 750M Maryland St. Econ. Dev. Corp. Util. Infrastructure Rev. (Univ. MD-College Park) 5 3/8% 7/1/2016 808,125 281 500M Morgan State University Academic & Auxiliary Facilities Fees Revenue 6.05% 7/1/2015 570,625 198 750M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. University Plaza Proj. Series "A" 5 5/8% 7/1/2013 819,375 285 St. Mary's College Revenue: 430M 5.45% 3/1/2010* 467,625 162 1,100M 5% 9/1/2024 1,168,750 406 - ---------------------------------------------------------------------------------------------------------------------- 3,834,500 1,332 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--25.8% 1,275M Anne Arundel County 5 3/8% 3/1/2015 1,394,531 484 700M Baltimore Maryland 5 1/2% 10/15/2015 796,250 276 1,000M Ocean City 5% 3/1/2021 1,052,500 366 Puerto Rico Municipal Finance Agy.: 1,050M 5 1/2% 8/1/2009* 1,136,625 395 1,000M 5% 8/1/2030 1,052,500 366 1,000M St. Mary's County Hospital 5% 10/1/2020 1,071,250 372 350M Wicomico County 5 1/2% 12/1/2016 378,438 131 500M Worcester County 5 5/8% 3/1/2010* 547,500 190 - ---------------------------------------------------------------------------------------------------------------------- 7,429,594 2,580 - ---------------------------------------------------------------------------------------------------------------------- Health Care--14.6% Maryland State Health & Higher Educ. Facs.: Anne Arundel Health System: 1,000M 5% 7/1/2024 1,056,250 367 1,000M 5% 7/1/2034 1,043,750 362 1,250M University of Maryland Med. Sys. 5% 7/1/2024 1,323,438 459 500M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. 6 1/4% 7/1/2016 505,790 176 250M Takoma Park Hospital Facs. (Adventist Hosp.) 6 1/2% 9/1/2012 278,125 97 - ---------------------------------------------------------------------------------------------------------------------- 4,207,353 1,461 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Housing--3.0% $340M Maryland State Cmnty. Dev. Admin. Dept. Hsg. & Cmnty. Dev. 5 7/8% 7/1/2016 $350,469 $121 500M Montgomery County Multi-Family Mortgage Rev. 6% 7/1/2020 529,375 183 - ---------------------------------------------------------------------------------------------------------------------- 879,844 304 - ---------------------------------------------------------------------------------------------------------------------- Transportation--7.4% 1,000M Maryland State Trans. Auth. Lease Rev. Metrorail Parking Proj. 5% 7/1/2022 1,063,750 370 1,000M Maryland State Trans. Auth. Trans. Fac. Proj. Rev. 5% 7/1/2028 1,055,000 366 - ---------------------------------------------------------------------------------------------------------------------- 2,118,750 736 - ---------------------------------------------------------------------------------------------------------------------- Utilities--18.4% Baltimore Wastewater Utilities Revenue Series "A": 500M 5 1/2% 7/1/2010* 543,125 188 200M 6% 7/1/2015 232,500 81 1,090M 5% 7/1/2020 1,151,312 400 250M Baltimore Water Project Revenue Series "A" 5.8% 7/1/2012* 281,562 98 Puerto Rico Electric Power Auth. Revenue: 1,350M 5 3/8% 7/1/2017 1,481,625 514 1,500M 5 1/4% 7/1/2029 1,608,750 559 - ---------------------------------------------------------------------------------------------------------------------- 5,298,874 1,840 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--12.5% 1,020M Anne Arundel Cnty. Spl. Oblig. (Natl. Bus. Park Proj.) 5 1/8% 7/1/2022 1,100,325 382 250M Baltimore Convention Center 5 1/2% 9/1/2014 269,375 94 1,000M Puerto Rico Municipal Fin. Agy. 5 1/4% 8/1/2021 1,082,500 376 1,025M Puerto Rico Public Fin. Corp. Commwlth. Approp. Series "A" 5 3/8% 6/1/2015 1,149,281 399 - ---------------------------------------------------------------------------------------------------------------------- 3,601,481 1,251 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $26,744,138) 97.9% 28,191,646 9,789 Other Assets, Less Liabilities 2.1 606,682 211 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $28,798,328 $10,000 ====================================================================================================================== Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $4,300M $22,053 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $999.47 $4.28 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.93 $4.33 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $995.96 $8.05 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.14 $8.13 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .85% for Class A shares and 1.60% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 52.0% Education 17.3% Utilities 14.9% Health Care 7.3% Transportation 4.3% Other Revenue 4.2% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Massachusetts Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Massachusetts Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Massachusetts Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,703 10,454 Dec-97 10,505 11,595 Dec-98 11,066 12,418 Dec-99 10,801 11,630 Dec-00 12,079 13,625 Dec-01 12,581 14,234 Dec-02 13,871 15,761 Dec-03 14,546 16,734 Dec-04 14,945 17,647 Dec-05 15,284 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.27% (3.62%) Five Years 4.82% 3.59% Ten Years 4.96% 4.33% S.E.C. 30-Day Yield 2.83% Class B Shares One Year 1.52% (2.48%) Five Years 4.04% 3.69% Ten Years 4.33% 4.33% S.E.C. 30-Day Yield 2.25% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund --Massachusetts Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.99%), 3.23% and 3.95%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.44%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.85%), 3.30% and 3.95%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.84%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--97.8% Education--16.9% $1,000M Massachusetts State College Bldg. Auth. Proj. 5 1/4% 5/1/2021 $1,087,500 $418 1,000M Massachusetts State Dev. Fin. Agy. Rev. (Boston Univ.) 5% 10/1/2035 1,036,250 399 1,000M Massachusetts State Hlth. & Educ. Facs. Auth. Rev. 5% 10/1/2029 1,046,250 402 1,000M University of Massachusetts Bldg. Auth. Rev. 6 7/8% 5/1/2014 1,218,750 469 - ---------------------------------------------------------------------------------------------------------------------- 4,388,750 1,688 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--50.8% 1,000M Holliston 5 1/4% 4/1/2018 1,092,500 420 1,000M Lawrence 5 1/4% 3/15/2018 1,090,000 419 1,000M Massachusetts State 5% 3/1/2024 1,056,250 406 1,155M Quaboag Regional School District 5 1/2% 6/1/2017 1,253,175 482 Springfield: 1,000M 6% 10/1/2009* 1,101,250 424 1,000M 5 3/8% 8/1/2017 1,087,500 418 1,000M 5 1/4% 1/15/2023 1,077,500 414 1,000M Tantasqua Regional School District 5% 8/15/2010* 1,075,000 414 1,000M Westborough 5% 11/15/2019 1,066,250 410 1,000M Westfield 5 1/2% 12/15/2011* 1,111,250 427 1,040M Westford 5 1/8% 4/1/2017 1,116,700 430 1,000M Worcester 5 1/2% 8/15/2017 1,086,250 418 - ---------------------------------------------------------------------------------------------------------------------- 13,213,625 5,082 - ---------------------------------------------------------------------------------------------------------------------- Health Care--7.2% 1,000M Harvard Pilgrim Health Care 5 1/4% 7/1/2013 1,051,250 404 750M Massachusetts General Hospital Series "F" 6 1/4% 7/1/2012 813,750 313 - ---------------------------------------------------------------------------------------------------------------------- 1,865,000 717 - ---------------------------------------------------------------------------------------------------------------------- Transportation--4.2% 1,000M Route 3 North Trans. Impt. Assoc. 5 5/8% 6/15/2010* 1,090,000 419 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities--14.6% $1,035M Boston Water & Sewer Commission Rev. 5 3/4% 11/1/2013 $1,133,325 $436 1,455M Holyoke Gas & Electric Dept. Rev. 5 3/8% 12/1/2018 1,593,225 613 1,000M Massachusetts State Water Resource Auth. 5% 8/1/2023 1,075,000 413 - ---------------------------------------------------------------------------------------------------------------------- 3,801,550 1,462 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--4.1% 1,000M Boston Convention Center Act 1997 Series "A" 5% 5/1/2017 1,070,000 412 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $23,864,230) 97.8% 25,428,925 9,780 Other Assets, Less Liabilities 2.2 572,634 220 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $26,001,559 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/01/2015 $1,300M $7,465 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- ---------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - ---------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,003.33 $4.54 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.67 $4.58 - ---------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.52 $8.32 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.89 $8.39 - ---------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .90% for Class A shares and 1.65% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 71.0% Utilities 18.6% Health Care 8.6% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Michigan Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Michigan Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Michigan Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,744 10,454 Dec-97 10,657 11,595 Dec-98 11,253 12,418 Dec-99 10,957 11,630 Dec-00 12,157 13,625 Dec-01 12,629 14,234 Dec-02 13,884 15,761 Dec-03 14,531 16,734 Dec-04 14,857 17,647 Dec-05 15,211 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.38% (3.51%) Five Years 4.58% 3.35% Ten Years 4.90% 4.28% S.E.C. 30-Day Yield 2.84% Class B Shares One Year 1.61% (2.39%) Five Years 3.80% 3.45% Ten Years 4.27% 4.27% S.E.C. 30-Day Yield 2.25% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Michigan Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.81%), 3.08% and 4.00%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.36%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.69%), 3.16% and 3.99%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.75%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--96.7% General Obligations--69.9% $850M Detroit Downtown Development Series "A" 5 3/4% 7/15/2007* $889,313 $257 1,000M Detroit Series "B" 5% 4/1/2025 1,043,750 302 1,825M Eaton Rapids Public Schools 5 1/4% 5/1/2022 1,971,000 570 1,775M Ecorse Public School District 5% 5/1/2027 1,870,406 541 1,600M Galesburg-Augusta Community Schools 5% 5/1/2024 1,694,000 490 1,000M Godwin Heights Public School District 5 5/8% 5/1/2010* 1,088,750 315 1,000M Grand Blanc Community School District 5 5/8% 5/1/2015 1,100,000 318 1,040M Grand Rapids Building Authority 5 3/4% 8/1/2015 1,136,200 329 1,000M Gull Lake Community School District Zero Coupon 5/1/2013 693,750 201 1,000M Hartland School District 5% 5/1/2022 1,058,750 306 1,575M Jenison Public School District 5 1/2% 5/1/2018 1,724,625 499 1,000M Montrose Township School District 6.2% 5/1/2017 1,172,500 339 1,000M Newaygo Public Schools 5 3/4% 5/1/2010* 1,093,750 317 2,020M Ovid Elsie Area Schs. Bldg. & Site 5% 11/1/2012* 2,184,125 632 1,500M Puerto Rico Municipal Finance Agency 5 3/4% 8/1/2009* 1,636,875 473 1,525M Reed City Public Schools 5 1/4% 5/1/2014* 1,688,938 489 1,000M Saginaw City School District Schs. Bldg. & Site 5% 5/1/2025 1,047,500 303 1,000M Ypsilanti School District 5% 5/1/2026 1,053,750 305 - ---------------------------------------------------------------------------------------------------------------------- 24,147,982 6,986 - ---------------------------------------------------------------------------------------------------------------------- Health Care--8.5% Michigan State Hospital Finance Authority Revenue: 1,000M Mercy Mount Clemens 5 3/4% 5/15/2017 1,077,500 312 775M St. John's Hospital 6% 5/15/2008 788,562 228 1,000M Saginaw Hospital Fin. Auth. (Covenant Med. Ctr.) 5 5/8% 7/1/2013 1,078,750 312 - ---------------------------------------------------------------------------------------------------------------------- 2,944,812 852 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities--18.3% $1,000M Detroit Sewage Disposal System Rev. 5% 7/1/2030 $1,043,750 $302 1,275M Detroit Water Supply System Rev. 6 1/2% 7/1/2015 1,530,000 442 Michigan State Strategic Fund (Detroit Edison Co.): 1,550M 6.95% 5/1/2011 1,801,875 521 1,000M 7% 5/1/2021 1,302,500 377 500M Monroe County Economic Dev. Corp. (Detroit Edison Co.) 6.95% 9/1/2022 660,000 191 - ---------------------------------------------------------------------------------------------------------------------- 6,338,125 1,833 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $31,225,414) 33,430,919 9,671 - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX EXEMPT INVESTMENTS--1.8% 600M University Michigan Hospital Series "A" Adjustable Rate Note 3.75%** (cost $600,000) 600,000 175 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Investments (cost $31,825,414) 98.5% 34,030,919 9,846 Other Assets, Less Liabilities 1.5 532,176 154 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $34,563,095 $10,000 ====================================================================================================================== Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $2,000M $(8,333) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 1,800M 10,336 - ---------------------------------------------------------------------------------------------------------------------- $3,800M $2,003 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. ** Interest rate is determined and reset periodically by the issuer and is the rate in effect at December 31, 2005. See notes to financial statements
Fund Expenses First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,001.78 $3.03 Hypothetical (5% annual return before expenses) $1,000.00 $1,022.19 $3.06 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $ 998.24 $6.80 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.40 $6.87 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .60% for Class A shares and 1.35% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 60.4% Utilities 9.9% Health Care 9.4% Transportation 8.7% Education 7.0% Housing 2.7% Certificates of Participation 1.9% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Minnesota Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Minnesota Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Minnesota Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,753 10,454 Dec-97 10,588 11,595 Dec-98 11,249 12,418 Dec-99 11,063 11,630 Dec-00 12,288 13,625 Dec-01 12,837 14,234 Dec-02 14,066 15,761 Dec-03 14,757 16,734 Dec-04 15,262 17,647 Dec-05 15,586 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.13% (3.77%) Five Years 4.87% 3.63% Ten Years 5.16% 4.54% S.E.C. 30-Day Yield 3.08% Class B Shares One Year 1.38% (2.62%) Five Years 4.10% 3.76% Ten Years 4.53% 4.53% S.E.C. 30-Day Yield 2.52% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Minnesota Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.41%), 2.99% and 3.79%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.48%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.27%), 3.07% and 3.79%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.89%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--97.4% Certificates of Participation--1.9% $300M Minneapolis Special School District #1, 5.9% 2/1/2006* $300,561 $186 - ---------------------------------------------------------------------------------------------------------------------- Education--6.8% 600M Minnesota State Colleges & Univ. 5% 10/1/2021 637,500 395 400M University of Minnesota 5 3/4% 7/1/2017 465,000 288 - ---------------------------------------------------------------------------------------------------------------------- 1,102,500 683 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--58.8% 400M Becker Ind. School District #726, 6% 2/1/2017 437,000 271 325M Bloomington Ind. School District #271, 5 1/8% 2/1/2015 349,375 216 250M Cambridge Ind. School District #911, 5% 4/1/2015 272,500 169 500M Crow Wing County Jail Series "B" 5% 2/1/2021 533,750 331 200M Delano Ind. School District #879, 5.6% 2/1/2015 218,000 135 Eagan Recreational Facilities Series "A": 450M 5% 2/1/2015 479,250 297 250M 5% 2/1/2016 265,625 165 400M Elk River Ind. School District #728, 5 1/2% 2/1/2021 431,500 267 300M Farmington Ind. School District #192 Series "B" 5% 2/1/2022 319,875 198 Lake Superior Ind. School District #381 Series "A": 465M 5% 4/1/2018 495,806 307 500M 5% 4/1/2019 531,875 330 280M Lakeville 5 1/2% 2/1/2011 280,462 174 405M Lino Lakes 5.7% 2/1/2012 415,275 257 260M Mahtomedi Ind. School District #832, 5% 2/1/2017 275,275 171 1,260M Minneapolis Special School District #1, 5% 2/1/2020 1,335,600 828 500M Moorehead Series "A" 5% 2/1/2027 528,125 327 Pequot Lakes Ind. School District #186: 250M 5% 2/1/2016 265,625 165 250M 5 1/8% 2/1/2018 266,563 165 Prior Lake Minneapolis Ind. Sch. Dist. #719: 250M 5% 2/1/2021 266,875 165 250M 5% 2/1/2022 266,563 165 St. Paul Ind. School District #625: 250M 5 5/8% 2/1/2015 265,312 164 400M 5% 2/1/2017 427,000 265 535M Upsala Ind. School District #487, 5% 2/1/2020 567,100 351 - ---------------------------------------------------------------------------------------------------------------------- 9,494,331 5,883 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Health Care--9.1% $500M Minneapolis Health Care Sys. Rev. (Fairview Hlth. Svcs.) 5 1/2% 5/15/2017 $550,000 $341 350M Minnesota Agriculture & Econ. Dev. Brd. Rev. (Benedictine Hlth.) 5 1/4% 2/15/2014 373,625 231 500M St. Cloud Health Care Oblig. Group "A" 5.8% 5/1/2016 546,875 339 - ---------------------------------------------------------------------------------------------------------------------- 1,470,500 911 - ---------------------------------------------------------------------------------------------------------------------- Housing--2.6% 400M Minnetonka Multi-Family Housing Rev. (Cedar Hills Proj.) 5.9% 10/20/2019 424,000 263 - ---------------------------------------------------------------------------------------------------------------------- Transportation--8.5% Minneapolis & St. Paul Metro Airports Comm. Airport Rev. Series "A": 800M 5% 1/1/2018 843,000 523 500M 5% 1/1/2028 520,000 322 - ---------------------------------------------------------------------------------------------------------------------- 1,363,000 845 - ---------------------------------------------------------------------------------------------------------------------- Utilities--9.7% 400M Northern Minnesota Municipal Pwr. Agy. Elec. Sys. Rev. 5.4% 1/1/2016 428,500 266 Western Minnesota Municipal Power Agency: 325M 5 1/2% 1/1/2011 332,312 206 500M 5 1/2% 1/1/2015 541,875 336 250M 5% 1/1/2030 260,625 161 - ---------------------------------------------------------------------------------------------------------------------- 1,563,312 969 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $15,020,164) 97.4% 15,718,204 9,740 Other Assets, Less Liabilities 2.6 420,274 260 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $16,138,478 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $1,000M $5,129 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,002.96 $3.03 Hypothetical (5% annual return before expenses) $1,000.00 $1,022.19 $3.06 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.77 $6.80 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.40 $6.87 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .60% for Class A shares and 1.35% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 49.8% Other Revenue 20.5% Health Care 8.5% Transportation 8.1% Education 7.2% Utilities 5.9% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Missouri Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Missouri Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Missouri Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,787 10,454 Dec-97 10,711 11,595 Dec-98 11,417 12,418 Dec-99 11,187 11,630 Dec-00 12,552 13,625 Dec-01 13,076 14,234 Dec-02 14,535 15,761 Dec-03 15,324 16,734 Dec-04 15,895 17,647 Dec-05 16,340 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.79% (3.11%) Five Years 5.41% 4.17% Ten Years 5.66% 5.03% S.E.C. 30-Day Yield 3.17% Class B Shares One Year 2.00% (2.00%) Five Years 4.63% 4.29% Ten Years 5.01% 5.01% S.E.C. 30-Day Yield 2.62% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Missouri Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.76%), 3.50% and 4.09%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.58%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.66%), 3.56% and 4.07%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.00%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--98.5% Education--7.0% $125M Bowling Green School District 5.85% 3/1/2020 $136,094 $96 500M Cape Girardeau Cnty. Bldg. Corp. Sch. Dist. #R-II, 5 1/4% 3/1/2025 540,625 380 150M Missouri Southern State College Rev. Aux. Enterprise Sys. 5.3% 4/1/2015 162,000 114 150M Missouri State Hlth. & Educ. Facs. Auth. (Webster Univ.) 5 1/2% 4/1/2018 162,187 114 - ---------------------------------------------------------------------------------------------------------------------- 1,000,906 704 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--49.1% 1,000M Branson Sch. Dist. #R-4, 5% 3/1/2025 1,055,000 743 500M Camdenton Reorg. Sch. Dist. #R-III Camden Cnty. 5 1/4% 3/1/2021 543,750 383 400M Cass County Reorg. School District #2, 5 1/2% 3/1/2017 440,000 310 350M Clay County Pub. School District #53, 5% 3/1/2017 370,125 261 Greene County Reorg. School District #R-8: 200M 5 1/4% 3/1/2018 215,250 151 250M 5 1/4% 3/1/2019 268,125 189 300M Jackson County Reorg. School District #7, 5 1/4% 3/1/2020 327,750 231 100M Jefferson County School District #6, 6% 3/1/2014 109,000 77 150M Kansas City Streetlight Project Series "A" 5 1/4% 2/1/2016 160,875 113 140M Maplewood Richmond Heights School District 5 1/4% 3/1/2016 150,500 106 1,000M Puerto Rico Commonwealth 5% 7/1/2027 1,048,750 739 500M Puerto Rico Municipal Finance Agy. 5% 8/1/2030 526,250 371 425M Scott Cnty. School District #6, 5% 3/1/2024 447,313 315 500M Springfield School District #R12, 5% 3/1/2020 531,875 374 125M St. Joseph's School Dist. (Direct Dep. Prog.) 5 3/4% 3/1/2019 136,250 96 100M St. Louis County Pattonville R-3 School Dist. (Direct Dep. Prog.) 5 3/4% 3/1/2010* 109,750 77 250M Washington School District 5% 3/1/2015 266,875 188 250M Wentzville School District #4, 5% 3/1/2022 263,750 186 - ---------------------------------------------------------------------------------------------------------------------- 6,971,188 4,910 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Health Care--8.4% $400M Jackson County Spl. Oblig. (Truman Med. Ctr.) 5% 12/1/2022 $421,000 $296 140M Missouri State Hlth. & Educ. Facs. Auth. Series "A" (BJC Hlth. Sys.) 6 3/4% 5/15/2011 161,350 114 500M North Kansas City Hospital Rev. Series "A" 5% 11/15/2020 526,250 371 80M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. 6 1/4% 7/1/2016 80,926 57 - ---------------------------------------------------------------------------------------------------------------------- 1,189,526 838 - ---------------------------------------------------------------------------------------------------------------------- Transportation--8.0% 400M Bi-State Dev. Agy. Met. Dist. Metrolink Cross Cnty. Proj. Series "B" 5 1/4% 10/1/2019 434,000 306 250M Kansas City Airport Rev. Series "B" 5 1/4% 9/1/2016 270,937 191 St. Louis Airport Revenue: 255M 5.3% 7/1/2011* 277,631 195 150M 5 1/8% 7/1/2015 157,688 111 - ---------------------------------------------------------------------------------------------------------------------- 1,140,256 803 - ---------------------------------------------------------------------------------------------------------------------- Utilities--5.8% 250M Jefferson County Cons. Public Water Supply 5 1/4% 12/1/2016 272,812 192 250M Missouri State Environmental Impt. & Energy Res. Auth. 5 1/2% 7/1/2014 276,563 195 250M Puerto Rico Electric Power Auth. Rev. 5 3/8% 7/1/2017 274,375 193 - ---------------------------------------------------------------------------------------------------------------------- 823,750 580 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--20.2% 100M Clay County Public Building Auth. Leasehold Rev. 5 1/8% 5/15/2014 103,750 73 250M Kansas City Municipal Assistance Corp. Rev. Series "A" 5% 3/1/2019 263,437 186 250M Missouri State Board Public Buildings Series "A" 5% 5/1/2021 261,875 184 Missouri State Dev. Finance Board Infrastructure Facilities Revenue: 500M Hartman Heritage Center Phase II, 5% 4/1/2020 524,375 369 125M Midtown Redevelopment Project Series "A" 6% 4/1/2014 137,187 97 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue (continued) $500M Missouri State Regional Convention & Sports Complex Auth. 5 1/4% 8/15/2020 $538,750 $380 Springfield Public Building Corp. Leasehold Revenue: 125M Capital Improvement 5.6% 6/1/2014 134,531 95 230M Jordan Valley 5.85% 6/1/2014 252,713 178 St. Louis Municipal Finance Corp. Leasehold Revenue: 250M Carnahan Courthouse Series "A" 5% 2/15/2020 262,813 185 City Justice Center Series "A": 125M 5 3/4% 2/15/2010* 137,344 97 225M 5 1/4% 2/15/2015 244,688 172 - ---------------------------------------------------------------------------------------------------------------------- 2,861,463 2,016 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $13,471,613) 98.5% 13,987,089 9,851 Other Assets, Less Liabilities 1.5 211,569 149 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $14,198,658 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $1,000M $5,128 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,003.95 $4.80 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.42 $4.84 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.75 $8.57 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.64 $8.64 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .95% for Class A shares and 1.70% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Other Revenue 29.3% Education 25.9% Transportation 16.5% Utilities 10.7% General Obligations 9.0% Health Care 6.4% Housing 2.2% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- New Jersey Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - New Jersey Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch New Jersey Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,715 10,454 Dec-97 10,527 11,595 Dec-98 11,142 12,418 Dec-99 10,913 11,630 Dec-00 12,050 13,625 Dec-01 12,539 14,234 Dec-02 13,758 15,761 Dec-03 14,347 16,734 Dec-04 14,718 17,647 Dec-05 15,070 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.39% (3.50%) Five Years 4.57% 3.34% Ten Years 4.81% 4.19% S.E.C. 30-Day Yield 2.79% Class B Shares One Year 1.63% (2.37%) Five Years 3.80% 3.45% Ten Years 4.18% 4.18% S.E.C. 30-Day Yield 2.22% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund - New Jersey Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.71%), 3.14% and 4.00%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.58%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.60%), 3.24% and 4.00%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.99%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--98.4% Education--25.5% New Jersey Educational Facilities Auth. Revenue: $2,125M College of New Jersey Series "C" 5 3/8% 7/1/2016 $2,313,594 $346 5,000M Higher Educ. Cap. Impt. Series "A" 5 1/8% 9/1/2022 5,312,500 794 1,495M Richard Stockton College 5% 7/1/2025 1,590,306 237 1,800M Rowan University Series "C" 5% 7/1/2022 1,914,750 286 1,210M Puerto Rico Indl. Tourist Educ. Med. & Env. Cntl. Facs. University Plaza Proj. Series "A" 5 5/8% 7/1/2013 1,321,925 197 1,000M University of Medicine & Dentistry of New Jersey Series "A" 5 3/8% 12/1/2016 1,090,000 163 University of Puerto Rico: 1,715M 5 3/4% 6/1/2017 1,867,206 279 1,500M 5 3/4% 6/1/2018 1,631,250 244 - ---------------------------------------------------------------------------------------------------------------------- 17,041,531 2,546 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--8.8% 1,750M Atlantic City Board of Education 6.1% 12/1/2015 2,075,938 310 1,500M Jersey City Series "B" 5% 9/1/2019 1,597,500 239 1,100M Washington Township Board of Education 5% 3/1/2029 1,153,625 172 1,000M West Deptford 5 1/2% 9/1/2010* 1,088,750 163 - ---------------------------------------------------------------------------------------------------------------------- 5,915,813 884 - ---------------------------------------------------------------------------------------------------------------------- Health Care--6.3% New Jersey State Health Care Facs. Fing. Authority: 1,745M General Hospital Center at Passaic 6% 7/1/2014 2,006,750 300 1,000M Meridian Health System Oblig. Group 5 5/8% 7/1/2014 1,078,750 161 1,000M Riverview Medical Center 6 1/4% 7/1/2011 1,135,000 170 - ---------------------------------------------------------------------------------------------------------------------- 4,220,500 631 - ---------------------------------------------------------------------------------------------------------------------- Housing--2.2% 1,375M New Jersey State Hsg. & Mtge. Fing. Agency Regency Park Project 6.05% 11/1/2017 1,462,656 218 - ---------------------------------------------------------------------------------------------------------------------- Transportation--16.2% 1,000M Burlington County Bridge Commission 5 1/4% 8/15/2021 1,073,750 160 1,000M Delaware River & Bay Authority 5 1/2% 1/1/2010* 1,086,250 163 1,000M Delaware River Port Auth. PA & NJ Rev. 5 3/4% 1/1/2022 1,080,000 161 650M New Jersey Econ. Dev. Auth. Rev. Light Rail Sys. 6% 5/1/2009* 703,625 105 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Transportation (continued) $1,000M New Jersey State Hwy. Auth. (Garden State Parkway) 6.2% 1/1/2010 $1,078,750 $161 2,440M New Jersey State Turnpike Auth. Rev. 5% 1/1/2035 2,522,350 377 1,000M Newark Hsg. Auth. Port Auth. (Newark Marine Term.) 5 1/4% 1/1/2020 1,083,750 162 2,100M Port Authority of New York & New Jersey 125th Series 5% 10/15/2018 2,239,125 335 - ---------------------------------------------------------------------------------------------------------------------- 10,867,600 1,624 - ---------------------------------------------------------------------------------------------------------------------- Utilities--10.5% 1,250M Evesham Municipal Utilities Auth. Rev. 5% 7/1/2018 1,326,563 198 Passaic Valley Sewer Commission: 1,250M Series "E" 5 5/8% 12/1/2018 1,356,250 203 1,000M Series "F" 5% 12/1/2020 1,061,250 158 Puerto Rico Electric Power Authority: 1,000M Series "HH" 5 1/4% 7/1/2029 1,072,500 160 2,000M Series "II" 5 3/8% 7/1/2017 2,195,000 328 - ---------------------------------------------------------------------------------------------------------------------- 7,011,563 1,047 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--28.9% 2,900M Atlantic County Impt. Auth. Lux. Tax (Convention Ctr.) 7.4% 7/1/2016 3,599,625 538 2,000M Cape May County Bridge Commission 5% 6/1/2032 2,082,500 311 1,665M Cape May County Indl. Poll. Cntl. Fin. Auth. 6.8% 3/1/2021 2,164,500 324 Casino Reinvestment Dev. Auth. Hotel Room Fee Revenue: 2,000M 5 1/4% 6/1/2021 2,150,000 321 1,150M 5% 1/1/2025 1,220,437 182 1,000M Essex County Impt. Auth. Lease Rev. (Correctional Facs. Proj.) 5 1/2% 10/1/2018 1,077,500 161 1,000M Hudson County Impt. Auth. Lease Rev. (County Services Bldg. Project) 5% 4/1/2035 1,046,250 156 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue (continued) $2,500M New Jersey Economic Dev. Auth. (Liberty State Park Project) 5% 3/1/2027 $2,637,500 $394 Passaic County Impt. Auth. Lease Rev. (Preakness Healthcare Ctr. Proj.): 1,000M 5% 5/1/2030 1,046,250 156 1,000M 5% 5/1/2035 1,040,000 156 1,155M Puerto Rico Municipal Finance Agency 5 1/4% 8/1/2020 1,253,175 187 - ---------------------------------------------------------------------------------------------------------------------- 19,317,737 2,886 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $62,055,370) 98.4% 65,837,400 9,836 Other Assets, Less Liabilities 1.6 1,099,692 164 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $66,937,092 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 $6,800M $39,048 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,003.45 $3.79 Hypothetical (5% annual return before expenses) $1,000.00 $1,021.43 $3.82 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.10 $7.56 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.65 $7.63 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .75% for Class A shares and 1.50% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Utilities 40.9% Certificates of Participation 20.7% Education 16.6% General Obligations 9.4% Transportation 9.3% Health Care 1.6% Other Revenue 1.5% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- North Carolina Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - North Carolina Fund Graph Plot Points for the periods ended 12/31/05 Merrill North Lynch Carolina Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,771 10,454 Dec-97 10,705 11,595 Dec-98 11,424 12,418 Dec-99 11,156 11,630 Dec-00 12,545 13,625 Dec-01 13,039 14,234 Dec-02 14,418 15,761 Dec-03 15,155 16,734 Dec-04 15,637 17,647 Dec-05 16,047 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.62% (3.31%) Five Years 5.05% 3.82% Ten Years 5.47% 4.84% S.E.C. 30-Day Yield 2.97% Class B Shares One Year 1.82% (2.18%) Five Years 4.26% 3.92% Ten Years 4.83% 4.83% S.E.C. 30-Day Yield 2.40% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- North Carolina Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.75%), 3.34% and 4.16%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.58%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.63%), 3.41% and 4.15%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.99%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--98.8% Certificates of Participation--20.5% $400M Carteret County 5 5/8% 6/1/2020 $433,500 $160 Harnett County: 500M 5 1/2% 12/1/2014 546,875 201 500M 5 1/8% 12/1/2023 536,250 198 1,255M Nash County Public Facs. Proj. 5 1/4% 6/1/2019 1,367,950 504 1,110M North Carolina Wildlife Resources Series "A" 5 1/4% 6/1/2019 1,204,350 444 250M Pitt County 5 1/4% 4/1/2015 268,750 99 150M Randolph County 5 1/2% 6/1/2009* 161,625 59 1,000M University North Carolina Wilmington 5% 6/1/2031 1,041,250 384 - ---------------------------------------------------------------------------------------------------------------------- 5,560,550 2,049 - ---------------------------------------------------------------------------------------------------------------------- Education--16.4% Appalachian State University: 1,000M 5% 7/15/2025 1,057,500 390 300M Housing & Student Ctr. 5.6% 7/15/2010* 329,625 121 1,000M Series "A" 5 1/8% 5/1/2019 1,076,250 397 330M Iredell County Public Facs. School Projs. 6% 6/1/2010* 367,538 135 500M North Carolina Capital Facs. Fin. Agy. (Meredith College) 5 1/8% 6/1/2014 533,125 196 1,000M University North Carolina Sys. Pool Rev. 5 3/8% 4/1/2021 1,090,000 402 - ---------------------------------------------------------------------------------------------------------------------- 4,454,038 1,641 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--9.3% 500M Brunswick County 5 3/4% 5/1/2010* 552,500 203 250M Cleveland County 5 1/2% 3/1/2012 255,832 94 400M Johnston County 5% 6/1/2018 425,500 157 220M Laurinburg Sanitation Swr. 5.3% 6/1/2012 224,653 83 1,000M Puerto Rico Municipal Finance Agy. 5% 8/1/2030 1,052,500 388 - ---------------------------------------------------------------------------------------------------------------------- 2,510,985 925 - ---------------------------------------------------------------------------------------------------------------------- Health Care--1.6% 400M North Carolina Medical Care Community Hosp. Rev. Northeast Med. Ctr. 5 3/8% 11/1/2016 432,500 159 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Transportation--9.1% $1,000M Charlotte Airport Rev. Series "A" 5 1/4% 7/1/2023 $1,076,250 $397 Piedmont Triad Airport Authority Revenue: 800M 5 1/2% 7/1/2009* 863,000 318 500M 5 1/4% 7/1/2016 538,125 198 - ---------------------------------------------------------------------------------------------------------------------- 2,477,375 913 - ---------------------------------------------------------------------------------------------------------------------- Utilities--40.4% 1,000M Asheville Water Sys. Rev. 5% 8/1/2025 1,057,500 390 600M Broad River Water Auth. Water Sys. Rev. 5 3/4% 6/1/2010* 661,500 244 1,080M Brunswick County Enterprise Sys. Rev. 5 1/4% 4/1/2022 1,170,450 431 250M Charlotte Storm Water Fee Rev. 5.65% 6/1/2010* 274,688 101 250M Gastonia Combined Utilities Sys. Rev. 5 5/8% 5/1/2010* 274,375 101 250M Greensboro Enterprise Sys. Rev. 5% 6/1/2017 265,625 98 Greenville Combined Enterprise Sys. Revenue: 250M 5 1/2% 9/1/2017 267,187 98 250M 5 1/2% 9/1/2018 266,875 98 1,000M High Point Enterprise Sys. Rev. 5% 11/1/2024 1,060,000 391 250M Kinston Enterprise Sys. Rev. 5.7% 4/1/2012 256,360 94 200M North Carolina Eastern Municipal Pwr. Agy. Rev. 5.6% 1/1/2010 208,172 77 1,000M North Carolina Municipal Pwr. Agy. Rev. (Catawba Elec.) 5 1/4% 1/1/2018 1,078,750 398 650M Puerto Rico Electric Pwr. Auth. Rev. 5 1/4% 7/1/2022 700,375 258 1,140M Shelby Enterprise Sys. Rev. 5% 5/1/2022 1,202,700 443 Union County Enterprise Sys. Revenue: 1,110M 5% 6/1/2019 1,179,375 435 1,000M 5% 6/1/2029 1,045,000 385 - ---------------------------------------------------------------------------------------------------------------------- 10,968,932 4,042 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--1.5% 250M Cumberland County Finance Corp. Installment Pmt. Rev. (Detention Ctr. & Mental Hlth.) 5 5/8% 6/1/2017 268,125 99 140M Fayetteville Finance Corp. Inst. Municipal Bldg. Prog. 5.7% 2/1/2010 143,049 53 - ---------------------------------------------------------------------------------------------------------------------- 411,174 152 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $25,692,258) 98.8% 26,815,554 9,881 Other Assets, Less Liabilities 1.2 321,911 119 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $27,137,465 $10,000 ====================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------- Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $1,000M $(4,166) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 1,800M 9,231 - ---------------------------------------------------------------------------------------------------------------------- $2,800M $5,065 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--OHIO FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $ 999.95 $3.78 Hypothetical (5% annual return before expenses) $1,000.00 $1,021.43 $3.82 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $996.15 $7.55 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.65 $7.63 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .75% for Class A shares and 1.50% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 72.1% Education 13.9% Other Revenue 8.9% Utilities 3.0% Health Care 2.1% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--OHIO FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Ohio Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Ohio Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Ohio Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,826 10,454 Dec-97 10,675 11,595 Dec-98 11,237 12,418 Dec-99 11,038 11,630 Dec-00 12,287 13,625 Dec-01 12,785 14,234 Dec-02 14,165 15,761 Dec-03 14,847 16,734 Dec-04 15,237 17,647 Dec-05 15,536 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 1.96% (3.91%) Five Years 4.80% 3.57% Ten Years 5.12% 4.50% S.E.C. 30-Day Yield 3.04% Class B Shares One Year 1.27% (2.73%) Five Years 4.01% 3.67% Ten Years 4.50% 4.50% S.E.C. 30-Day Yield 2.48% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Ohio Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (4.34%), 3.15% and 4.08%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.44%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.17%), 3.22% and 4.07%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.85%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--OHIO FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.0% Education--13.8% $1,200M Cincinnati State Tech. & Cmnty. College Gen. Receipts 5 1/4% 10/1/2020 $1,302,000 $519 1,000M Cuyahoga Cmnty. College Dist. Gen. Receipts 5% 12/1/2022 1,056,250 421 1,000M University Akron Gen. Receipts 6% 1/1/2010* 1,105,000 441 - ---------------------------------------------------------------------------------------------------------------------- 3,463,250 1,381 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--71.3% 1,000M Adams County Valley Local School District 7% 12/1/2015 1,193,750 476 1,000M Akron-Summit County Public Library 5% 12/1/2018 1,057,500 422 800M Avon Local School District 6 1/2% 12/1/2015 966,000 385 1,000M Beaver Creek Local School District 6.6% 12/1/2015 1,191,250 475 500M Brecksville-Broadview Heights City School District 6 1/2% 12/1/2016 523,895 209 1,095M Central Solid Waste Auth. 5% 12/1/2022 1,159,331 462 1,000M Cleveland Municipal School District 5 1/4% 12/1/2023 1,081,250 431 1,000M Dublin City School Dist. Fac. Construction & Improvement 5% 12/1/2021 1,060,000 423 1,135M Eaton City School District 5 3/8% 12/1/2018 1,249,919 498 1,445M Fairfield County 5% 12/1/2025 1,510,025 602 700M Garfield Heights 6.3% 12/1/2014 715,715 285 655M Jefferson County Jail Construction 5 3/4% 12/1/2019 772,081 308 1,000M Licking County Joint Voc. School District 5% 12/1/2020 1,055,000 421 1,300M Lorain 5 1/2% 12/1/2018 1,430,000 570 250M North Fork Local School District 5 3/4% 12/1/2018 292,813 117 1,000M Oakwood City School District 5% 12/1/2020 1,061,250 423 180M Shaker Heights City School District 7.1% 12/15/2010 197,100 79 500M Wyoming City School District 5% 12/1/2022 530,625 212 750M Youngstown 6% 12/1/2031 835,312 333 - ---------------------------------------------------------------------------------------------------------------------- 17,882,816 7,131 - ---------------------------------------------------------------------------------------------------------------------- Health Care--2.1% 500M Lorain County Hosp. Rev. (Catholic Healthcare Partners) 5 1/2% 9/1/2011 525,000 210 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities--3.0% $500M Mahoning Valley Sanitary District Water Rev. 5 3/4% 11/15/2018 $545,000 $217 190M Ohio State Water Dev. Auth. Rev. Pure Water Series "I" 7% 12/1/2009 203,300 81 - ---------------------------------------------------------------------------------------------------------------------- 748,300 298 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--8.8% 1,000M Hamilton County Sales Tax 5 3/4% 12/1/2013 1,101,250 439 1,000M New Albany Cmnty. Auth. Dev. 5 1/2% 10/1/2015 1,098,750 438 - ---------------------------------------------------------------------------------------------------------------------- 2,200,000 877 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $23,331,192) 99.0% 24,819,366 9,897 Other Assets, Less Liabilities 1.0 258,719 103 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $25,078,085 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 $1,300M $7,465 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--OREGON FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,003.37 $4.29 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.93 $4.33 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $999.68 $8.06 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.14 $8.13 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .85% for Class A shares and 1.60% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 51.2% Utilities 15.6% Certificates of Participation 13.5% Education 11.6% Other Revenue 5.6% Transportation 2.5% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--OREGON FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Oregon Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Oregon Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Oregon Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,773 10,454 Dec-97 10,747 11,595 Dec-98 11,423 12,418 Dec-99 11,200 11,630 Dec-00 12,437 13,625 Dec-01 12,940 14,234 Dec-02 14,240 15,761 Dec-03 14,898 16,734 Dec-04 15,312 17,647 Dec-05 15,701 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.54% (3.39%) Five Years 4.77% 3.54% Ten Years 5.23% 4.61% S.E.C. 30-Day Yield 2.87% Class B Shares One Year 1.71% (2.29%) Five Years 3.99% 3.65% Ten Years 4.60% 4.60% S.E.C. 30-Day Yield 2.29% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Oregon Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.75%), 3.07% and 3.97%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.54%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.65%), 3.17% and 3.98%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.94%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--OREGON FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.0% Certificates of Participation--13.4% Oregon State Dept. of Administrative Services: $500M 5.65% 5/1/2007* $520,000 $164 500M 5 1/4% 5/1/2017 541,250 170 1,000M 5% 5/1/2021 1,065,000 336 1,020M 5% 5/1/2022 1,076,100 339 1,000M 5% 11/1/2030 1,048,750 330 - ---------------------------------------------------------------------------------------------------------------------- 4,251,100 1,339 - ---------------------------------------------------------------------------------------------------------------------- Education--11.5% 200M Chemeketa Community College District 6.4% 7/1/2009 200,340 63 1,250M Oregon Health Sciences Univ. Rev. 5 1/4% 7/1/2022 1,343,750 423 Oregon State Facs. Authority Rev.: 1,000M College in Student Housing Proj. 5% 7/1/2035 1,040,000 328 1,000M Willamette Univ. Proj. 5 1/8% 10/1/2025 1,071,250 338 - ---------------------------------------------------------------------------------------------------------------------- 3,655,340 1,152 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--50.6% 1,000M Benton and Linn Counties School District #509J (Corvallis) 5% 6/1/2020 1,058,750 334 300M Chemeketa Community College District 5.8% 6/1/2006* 303,078 95 1,255M Columbia Gorge Community College 5% 6/15/2023 1,333,437 420 1,055M Gresham 5 3/8% 6/1/2017 1,152,587 363 635M Jefferson County School District #509J 5 1/4% 6/15/2019 685,800 216 245M La Grande 5 5/8% 6/1/2011 247,421 78 Linn County School District: 250M #9 (Lebanon) 6 1/8% 6/15/2010* 277,812 87 500M #55, 5 1/2% 6/15/2011* 548,750 173 1,000M Multnomah County Sch. Dist. #7 (Reynolds) 5% 6/1/2035 1,025,000 323 760M Polk Marion & Benton Counties School District #13J 5 5/8% 6/15/2010* 828,400 261 1,500M Puerto Rico Commonwealth Pub. Improvement 5% 7/1/2024 1,586,250 500 1,000M Puerto Rico Mun. Finance Agy. 5% 8/1/2030 1,052,500 332 1,570M Rogue Community College District 5% 6/15/2024 1,656,350 522 Southwestern Community College District: 600M 6.05% 6/1/2010* 663,750 209 1,000M 5% 6/1/2030 1,050,000 331 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- General Obligations (continued) $250M Tillamook County 5.6% 1/15/2007* $255,888 $81 615M Treasure Valley Community College 5% 6/1/2035 641,906 202 400M Umatilla County School District #16R (Pendleton) 5 1/4% 7/1/2014 442,500 139 520M Wasco County School District #12, 5 1/2% 6/15/2018 594,100 187 600M Washington and Clackamas Counties School District #23 (Tigard) 5 1/4% 6/1/2016 666,750 210 - ---------------------------------------------------------------------------------------------------------------------- 16,071,029 5,063 - ---------------------------------------------------------------------------------------------------------------------- Transportation--2.5% 500M Portland Airport Way Urban Renewal & Redev. 6% 6/15/2010* 556,875 175 200M Puerto Rico Commonwealth Hwy. & Trans. Auth. Rev. 5 3/4% 7/1/2010* 221,500 70 - ---------------------------------------------------------------------------------------------------------------------- 778,375 245 - ---------------------------------------------------------------------------------------------------------------------- Utilities--15.5% 440M Columbia River Peoples Utility District Elec. Sys. 5.55% 12/1/2020 474,100 149 600M Eugene Water Utility System 5.8% 8/1/2010* 660,000 208 250M Marion County Solid Waste & Electric Rev. 5 3/8% 10/1/2008 253,760 80 250M Portland Gas Tax Rev. 5 3/4% 6/1/2006* 252,515 80 300M Portland Sewer System Rev. Series "A" 5 1/4% 6/1/2020 324,750 102 Puerto Rico Electric Power Authority: 750M 5 1/8% 7/1/2026 797,813 251 500M 5 1/4% 7/1/2029 536,250 169 250M Salem Water & Sewer Rev. 5 1/2% 6/1/2006* 252,265 80 1,000M Sunrise Water Authority Water Rev. 5 1/4% 3/1/2024 1,080,000 340 250M Washington County Unified Sewer Agy. 5 3/4% 10/1/2012 281,875 89 - ---------------------------------------------------------------------------------------------------------------------- 4,913,328 1,548 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund--OREGON FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--5.5% $500M Oregon State Administrative Services Lottery 5 3/4% 4/1/2009* $541,250 $170 Portland Urban Renewal & Redevelopment: 405M Oregon Conv. Ctr. Series "A" 5 1/2% 6/15/2020 436,894 138 700M South Parks Blocks Series "A" 5 3/4% 6/15/2017 767,375 242 - ---------------------------------------------------------------------------------------------------------------------- 1,745,519 550 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $30,285,569) 99.0% 31,414,691 9,897 Other Assets, Less Liabilities 1.0 326,232 103 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $31,740,923 $10,000 ====================================================================================================================== Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $1,500M $(6,249) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.684% with Citibank, N.A. 8/1/2015 3,000M 17,227 - ---------------------------------------------------------------------------------------------------------------------- $4,500M $10,978 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,002.04 $4.54 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.67 $4.58 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $998.71 $8.31 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.89 $8.39 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .90% for Class A shares and 1.65% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) General Obligations 30.8% Utilities 19.5% Education 16.1% Other Revenue 14.0% Health Care 12.7% Transportation 6.9% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Pennsylvania Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Pennsylvania Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Pennsylvania Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,745 10,454 Dec-97 10,636 11,595 Dec-98 11,193 12,418 Dec-99 10,942 11,630 Dec-00 12,178 13,625 Dec-01 12,723 14,234 Dec-02 14,087 15,761 Dec-03 14,674 16,734 Dec-04 15,018 17,647 Dec-05 15,358 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.27% (3.60%) Five Years 4.75% 3.52% Ten Years 5.00% 4.38% S.E.C. 30-Day Yield 2.81% Class B Shares One Year 1.51% (2.49%) Five Years 3.97% 3.62% Ten Years 4.37% 4.37% S.E.C. 30-Day Yield 2.23% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Pennsylvania Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.87%), 3.26% and 4.11%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.52%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.77%), 3.35% and 4.10%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.92%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--99.1% Education--15.9% $1,000M Pennsylvania State Higher Educ. Assistance Agy. 6 1/8% 12/15/2010* $1,120,000 $239 1,410M Pennsylvania State Higher Educ. Facs. Authority 5 1/2% 6/15/2014 1,521,038 325 State Public School Bldg. Auth. Revenue: 2,000M Colonial 5% 5/15/2026 2,100,000 448 300M Delaware Cnty. Cmnty. College Proj. 5 3/4% 10/1/2010* 328,500 70 1,000M Northampton Cnty. Area Series "A" 5% 3/1/2020 1,063,750 227 1,265M Richland School District 5% 11/15/2022 1,334,575 285 - ---------------------------------------------------------------------------------------------------------------------- 7,467,863 1,594 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--30.5% 1,000M Bristol Boro School District 5 1/4% 3/1/2031 1,072,500 229 1,000M Chambersburg School District 5% 3/1/2024 1,047,500 224 1,000M Ephrata Area School District 5% 3/1/2022 1,061,250 226 1,190M Jim Thorpe School District 5% 3/15/2027 1,248,012 266 1,065M Mifflin County 5 1/2% 9/1/2020 1,150,200 246 1,000M Northern Tioga School District 5% 3/1/2021 1,061,250 226 1,365M Owen J. Roberts School District 5 1/2% 8/15/2016 Pennsbury School District: 1,501,500 320 1,000M 5 1/2% 1/15/2017 1,096,250 234 1,085M 5% 8/1/2025 1,141,962 244 385M Philadelphia 6% 11/15/2014 389,466 83 1,180M Philadelphia School District 6% 3/1/2010* 1,296,525 277 1,085M Pittsburgh 5 1/2% 9/1/2014 1,181,294 252 1,000M West Mifflin Area School District 5% 10/1/2022 1,062,500 227 - ---------------------------------------------------------------------------------------------------------------------- 14,310,209 3,054 - ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) First Investors Multi-State Insured Tax Free Fund-PENNSYLVANIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Health Care--12.5% Allegheny County Hospital Development Authority: $1,000M Allegheny General Hospital Proj. 6.2% 9/1/2007* $1,047,500 $224 Health Center -- University of Pittsburgh: 1,000M 5.6% 4/1/2013 1,043,750 223 1,000M 5.65% 4/1/2014 1,045,000 223 1,000M Berks County Municipal Auth. Hosp. (Reading Hosp. Med. Ctr.) 5.7% 10/1/2014 1,135,000 242 510M Dauphin Cnty. Gen. Hlth. Sys. (Pinnacle Hlth Sys.) 5 1/2% 5/15/2013 529,125 113 1,000M Pennsylvania State Higher Educ. Facs. Auth. Hlth. Svcs. 5.7% 11/15/2011+ 1,075,000 229 - ---------------------------------------------------------------------------------------------------------------------- 5,875,375 1,254 - ---------------------------------------------------------------------------------------------------------------------- Transportation--6.9% 1,620M Allegheny County Port. Auth. Spl. Rev. 5 1/4% 3/1/2020 1,729,350 369 1,375M Pennsylvania State Turnpike Comm. Tpk. Rev. 5 1/4% 12/1/2022 1,497,031 319 - ---------------------------------------------------------------------------------------------------------------------- 3,226,381 688 - ---------------------------------------------------------------------------------------------------------------------- Utilities--19.4% 1,325M Bucks County Water & Sewer Auth. Rev. 5 3/8% 6/1/2019 1,437,625 307 1,000M Delaware Cnty. Regl. Wtr. Quality Cntl. Auth. Swr. Rev. 5% 5/1/2025 1,051,250 224 1,000M Erie Sewer Authority Rev. 5 7/8% 6/1/2010* 1,100,000 235 1,000M New Castle Sanitation Auth. Swr. 5% 6/1/2024 1,042,500 222 2,950M Pittsburgh Water & Sewer Auth. Rev. 6 1/2% 9/1/2013 3,410,938 728 1,000M Saxonburg Area Auth. Sewer & Water Rev. 5% 3/1/2030 (when-issued) 1,032,500 220 - ---------------------------------------------------------------------------------------------------------------------- 9,074,813 1,936 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--13.9% Philadelphia Auth. Indl. Dev. Lease Revenue: $1,000M 5 1/2% 10/1/2014 $1,092,500 $233 1,000M 5 1/2% 10/1/2016 1,086,250 232 1,000M Philadelphia Housing Auth. Rev. Bonds Series "A" 5 1/2% 12/1/2019 1,110,000 237 Philadelphia Redev. Neighborhood Transformation Series "A": 1,000M 5 1/2% 4/15/2016 1,095,000 234 1,000M 5 1/2% 4/15/2019 1,093,750 233 1,000M Washington County Indl. Dev. Auth. (West Penn Pwr. Co.) 6.05% 4/1/2014 1,017,790 217 - ---------------------------------------------------------------------------------------------------------------------- 6,495,290 1,386 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $43,979,784) 99.1% 46,449,931 9,912 Other Assets, Less Liabilities .9 410,427 88 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $46,860,358 $10,000 ====================================================================================================================== Unrealized Expiration Notional Appreciation Interest Rate Swaps Date Amount (Depreciation) - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.724% with JPMorgan Chase Bank, N.A. 5/1/2011 $2,500M $(10,415) Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 3,300M 16,924 - ---------------------------------------------------------------------------------------------------------------------- $5,800M $6,509 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date. + Payments of principal and interest is being made by Municipal Bond Investors Assurance Insurance Corporation, the provider of the credit support.
See notes to financial statements Fund Expenses First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 2 for a detailed explanation of the information presented in these examples.
- --------------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (7/1/05) (12/31/05) (7/1/05-12/31/05)* - --------------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,002.21 $4.54 Hypothetical (5% annual return before expenses) $1,000.00 $1,020.67 $4.58 - --------------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $998.86 $8.31 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.89 $8.39 - --------------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of .90% for Class A shares and 1.65% for Class B shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition BY SECTOR (BAR CHART DATA:) Utilities 28.7% General Obligations 26.6% Other Revenue 24.7% Transportation 9.8% Health Care 6.9% Education 3.3% Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2005, and are based on the total value of investments. Cumulative Performance Information First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND Comparison of change in value of $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Virginia Fund (Class A shares) and the Merrill Lynch Municipal Securities Master Index. First Investors Multi-State Insured Tax Free Fund - Virginia Fund Graph Plot Points for the periods ended 12/31/05 Merrill Lynch Virginia Municipal Fund Index Dec-95 $9,425 $10,000 Dec-96 9,754 10,454 Dec-97 10,635 11,595 Dec-98 11,240 12,418 Dec-99 10,945 11,630 Dec-00 12,200 13,625 Dec-01 12,693 14,234 Dec-02 13,980 15,761 Dec-03 14,626 16,734 Dec-04 15,033 17,647 Dec-05 15,383 18,342 (INSET BOX IN CHART READS:) Average Annual Total Returns* Class A Shares N.A.V. Only S.E.C. Standardized One Year 2.33% (3.53%) Five Years 4.75% 3.52% Ten Years 5.02% 4.40% S.E.C. 30-Day Yield 2.81% Class B Shares One Year 1.61% (2.39%) Five Years 3.96% 3.61% Ten Years 4.38% 4.38% S.E.C. 30-Day Yield 2.23% The graph compares a $10,000 investment in the First Investors Multi-State Insured Tax Free Fund -- Virginia Fund (Class A shares) beginning 12/31/95 with a theoretical investment in the Merrill Lynch Municipal Securities Master Index (the "Index"). The Index is a total return performance benchmark for the investment grade tax exempt bond market. The Index does not take into account fees and expenses or cost of insurance of bonds held by an insured tax-exempt bond fund. It is not possible to invest directly in this Index. For purposes of the graph and the accompanying table, unless otherwise indicated, it has been assumed that the maximum sales charge was deducted from the initial $10,000 investment in the Fund and all dividends and distributions were reinvested. Class B shares performance may be greater than or less than that shown in the line graph above for Class A shares based on differences in sales loads and fees paid by shareholders investing in the different classes. * Average Annual Total Return figures (for the periods ended 12/31/05) include the reinvestment of all distributions. "N.A.V. Only" returns are calculated without sales charges. The Class A "S.E.C. Standardized" returns shown are based on the maximum sales charge of 5.75% (prior to 6/17/02, the maximum sales charge was 6.25%). The Class B "S.E.C. Standardized" returns shown are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). During the periods shown, some of the expenses of the Fund were waived or assumed. If such expenses had been paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (3.82%), 3.23% and 4.05%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 2.49%. The Class B "S.E.C. Standardized" Average Annual Total Returns for One Year, Five Years and Ten Years would have been (2.69%), 3.30% and 4.03%, respectively, and the S.E.C. 30-Day Yield for December 2005 would have been 1.90%. Results represent past performance and do not indicate future results. The graph and the returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Merrill Lynch Municipal Securities Master Index figures are from Merrill Lynch & Co. and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND December 31, 2005 - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--98.8% Education--3.3% $1,000M Virginia College Building Auth. Educ. Facs. Rev. 5 1/4% 2/1/2017 $1,080,000 $325 - ---------------------------------------------------------------------------------------------------------------------- General Obligations--26.3% 1,000M Hampton 5 3/4% 2/1/2010* 1,106,250 333 1,065M Harrisonburg Public Safety & Steam Plant Series "A" 5% 7/15/2020 1,134,225 341 1,000M Lunenburg County Series "B" 5 1/4% 2/1/2029 1,068,750 321 Norfolk: 1,730M 5% 7/1/2020 1,827,313 549 1,100M 5% 7/1/2021 1,161,875 349 Richmond: 250M 5 3/8% 1/15/2010* 270,625 81 1,000M 5 1/2% 1/15/2017 1,090,000 328 1,000M Roanoke Public Impt. Series "A" 5 1/4% 10/1/2020 1,098,750 330 - ---------------------------------------------------------------------------------------------------------------------- 8,757,788 2,632 - ---------------------------------------------------------------------------------------------------------------------- Health Care--6.8% Roanoke Industrial Development Authority: 1,000M Carilion Health Sys. Series "A" 5 1/2% 7/1/2021 1,087,500 327 1,000M Roanoke Memorial Hosp. Proj. 6 1/8% 7/1/2017 1,185,000 356 - ---------------------------------------------------------------------------------------------------------------------- 2,272,500 683 - ---------------------------------------------------------------------------------------------------------------------- Transportation--9.7% Metropolitan Washington DC Airport Auth. System: 930M Series "B" 5.1% 10/1/2021 981,150 295 500M Series "B" 5 1/8% 10/1/2022 528,125 159 1,585M Norfolk Airport Auth. 5 3/8% 7/1/2015 1,717,744 516 - ---------------------------------------------------------------------------------------------------------------------- 3,227,019 970 - ---------------------------------------------------------------------------------------------------------------------- Utilities--28.3% 1,025M Bristol Utility Sys. Rev. 5 3/4% 7/15/2015 1,181,312 355 1,000M Norfolk Water Rev. 5 7/8% 11/1/2015 1,027,920 309 500M Powhatan Cnty. Econ. Dev. Auth. Lease Rev. 5 1/8% 7/15/2018 537,500 161 Puerto Rico Electric Power Authority: 1,000M 5 3/8% 7/1/2017 1,097,500 330 1,000M Series "II" 5 1/4% 7/1/2022 1,077,500 324 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets - ---------------------------------------------------------------------------------------------------------------------- Utilities (continued) $1,250M Rivanna Water & Sewer Auth. Rev. 5% 10/1/2023 $1,329,687 $400 1,000M Spotsylvania County Water & Sewer Rev. 5% 6/1/2026 1,055,000 317 1,000M Upper Occoquan Sewer Auth. Rev. 5% 7/1/2025 1,057,500 318 1,000M Virginia Beach Water & Sewer Rev. 5% 10/1/2018 1,057,500 318 - ---------------------------------------------------------------------------------------------------------------------- 9,421,419 2,832 - ---------------------------------------------------------------------------------------------------------------------- Other Revenue--24.4% 1,000M Gloucester County Indl. Dev. Auth. (Courthouse Proj.) 5 3/8% 11/1/2020 1,076,250 323 500M Henrico County Econ. Dev. Auth. (Regional Jail Proj.) 5 5/8% 11/1/2015 546,875 164 1,000M Middlesex County Indl. Dev. Auth. Lease Rev. 5 1/8% 8/1/2023 1,070,000 322 1,000M Montgomery County Indl. Dev. Auth. Series "C" 6% 1/15/2011* 1,123,750 338 1,000M Northwestern Regional Jail Auth. Rev. 5% 7/1/2033 1,047,500 315 Southwest Regional Jail Authority Revenue: 1,000M 5 1/8% 9/1/2021 1,067,500 321 1,020M 5 1/8% 9/1/2022 1,085,025 326 1,010M Virginia State Res. Auth. Infrastructure Rev. Series "B" 5 1/2% 5/1/2018 1,089,538 327 - ---------------------------------------------------------------------------------------------------------------------- 8,106,438 2,436 - ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $30,999,937) 98.8% 32,865,164 9,878 Other Assets, Less Liabilities 1.2 407,476 122 - ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $33,272,640 $10,000 ====================================================================================================================== Expiration Notional Unrealized Interest Rate Swap Date Amount Appreciation - ---------------------------------------------------------------------------------------------------------------------- Receive quarterly a floating rate based on the BMA Index and pay quarterly a fixed rate equal to 3.556% with Citibank, N.A. 8/1/2012 $4,600M $23,592 ====================================================================================================================== * Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
Statements of Assets and Liabilities FIRST INVESTORS December 31, 2005 - -------------------------------------------------------- ------------ ------------ ------------ ------------ INSURED TAX-EXEMPT INTERMEDIATE INSURED INSURED MONEY MARKET TAX EXEMPT TAX EXEMPT TAX EXEMPT II - -------------------------------------------------------- ------------ ------------ ------------ ------------ Assets Investments in securities: At identified cost $ 13,183,661 $ 56,575,250 $681,472,642 $114,391,235 ============ ============ ============ ============ At value (Note 1A) $ 13,183,661 $ 57,077,844 $751,343,826 $118,003,994 Cash 171,904 153,369 1,277,004 584,941 Receivables: Interest 77,124 595,097 12,135,797 1,280,043 Investment securities sold -- 3,731,299 -- -- Shares sold -- 32,378 15,983 305,648 Unrealized gain on swap agreements -- -- 75,542 41,534 Other assets 5,136 769 95,787 1,737 ------------ ------------ ------------ ------------ Total Assets 13,437,825 61,590,756 764,943,939 120,217,897 ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased -- 3,644,270 -- 1,884,331 Dividends payable 479 26,523 791,622 255,396 Shares redeemed 1,233 321,280 767,990 165,648 Unrealized loss on swap agreements -- 12,498 -- -- Accrued advisory fees 5,722 20,862 376,058 55,876 Accrued shareholder servicing costs 2,519 3,306 44,048 7,718 Accrued expenses 20,276 15,989 76,390 16,512 ------------ ------------ ------------ ------------ Total Liabilities 30,229 4,044,728 2,056,108 2,385,481 ------------ ------------ ------------ ------------ Net Assets $ 13,407,596 $ 57,546,028 $762,887,831 $117,832,416 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $ 13,407,596 $ 57,328,411 $692,647,399 $114,132,759 Undistributed net investment income -- 109,451 293,706 45,364 Accumulated net realized gain (loss) on investments and swap agreements -- (381,930) -- -- Net unrealized appreciation in value of investments and swap agreements -- 490,096 69,946,726 3,654,293 ------------ ------------ ------------ ------------ Total $ 13,407,596 $ 57,546,028 $762,887,831 $117,832,416 ============ ============ ============ ============ Net Assets: Class A $ 13,406,511 $ 49,127,528 $759,814,823 $101,741,315 Class B $ 1,085 $ 8,418,500 $ 3,073,008 $ 16,091,101 Shares outstanding (Note 2): Class A 13,406,511 7,734,764 76,030,650 6,638,056 Class B 1,085 1,323,189 308,161 1,049,962 Net asset value and redemption price per share - Class A $1.00+ $6.35 $9.99 $15.33 ====== ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)* N/A $6.74 $10.60 $16.27 ====== ====== ====== ====== Net asset value and offering price per share - Class B (Note 2) $1.00 $6.36 $9.97 $15.33 ====== ====== ====== ====== * On purchases of $100,000 or more, the sales charge is reduced. + Also maximum offering price per share. See notes to financial statements.
Statements of Assets and Liabilities FIRST INVESTORS December 31, 2005 - -------------------------------------------------------- ------------ ---------------------------------------------- NEW YORK MULTI-STATE INSURED TAX FREE FUND INSURED ---------------------------------------------- TAX FREE ARIZONA CALIFORNIA COLORADO - -------------------------------------------------------- ------------ ---------------------------------------------- Assets Investments in securities: At identified cost $164,769,750 $ 16,091,180 $ 27,131,974 $ 9,958,093 ============ ============ ============ ============ At value (Note 1A) $176,021,529 $ 16,975,150 $ 28,850,300 $ 10,540,969 Cash 362,590 119,570 68,808 151,862 Receivables: Interest 2,577,564 327,384 414,652 56,913 Investment securities sold -- -- -- -- Shares sold 248,597 3,030 3,330 100 Unrealized gain on swap agreements 164,906 1,002 18,871 2,871 Other assets 13,540 354 1,127 182 ------------ ------------ ------------ ------------ Total Assets 179,388,726 17,426,490 29,357,088 10,752,897 ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased 2,097,142 -- -- -- Dividends payable 155,684 80,007 188,375 10,200 Shares redeemed 272,023 11,768 39,898 27,689 Unrealized loss on swap agreements -- -- -- -- Accrued advisory fees 86,790 3,990 10,184 988 Accrued shareholder servicing costs 9,830 892 1,339 643 Accrued expenses 42,101 8,576 9,798 6,114 ------------ ------------ ------------ ------------ Total Liabilities 2,663,570 105,233 249,594 45,634 ------------ ------------ ------------ ------------ Net Assets $176,725,156 $ 17,321,257 $ 29,107,494 $ 10,707,263 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $167,022,767 $ 16,434,720 $ 27,353,248 $ 10,122,406 Undistributed net investment income 24,044 1,565 16,211 3,255 Accumulated net realized gain (loss) on investments and swap agreements (1,738,340) -- 838 (4,145) Net unrealized appreciation in value of investments and swap agreements 11,416,685 884,972 1,737,197 585,747 ------------ ------------ ------------ ------------ Total $176,725,156 $ 17,321,257 $ 29,107,494 $ 10,707,263 ============ ============ ============ ============ Net Assets: Class A $169,787,294 $ 15,086,351 $ 26,536,486 $ 9,674,795 Class B $ 6,937,862 $ 2,234,906 $ 2,571,008 $ 1,032,468 Shares outstanding (Note 2): Class A 11,819,469 1,128,494 2,176,586 714,184 Class B 483,565 167,130 210,711 76,197 Net asset value and redemption price per share - Class A $14.37 $13.37 $12.19 $13.55 ====== ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)* $15.25 $14.19 $12.93 $14.38 ====== ====== ====== ====== Net asset value and offering price per share - Class B (Note 2) $14.35 $13.37 $12.20 $13.55 ====== ====== ====== ====== * On purchases of $100,000 or more, the sales charge is reduced. See notes to financial statements.
Statements of Assets and Liabilities FIRST INVESTORS December 31, 2005 - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- CONNECTICUT FLORIDA GEORGIA MARYLAND - -------------------------------------------------------- --------------------------------------------------------------- Assets Investments in securities: At identified cost $ 35,781,611 $ 31,691,460 $ 11,711,409 $ 26,744,138 ============ ============ ============ ============ At value (Note 1A) $ 37,280,672 $ 33,590,338 $ 12,369,598 $ 28,191,646 Cash 465,878 93,822 319,830 94,888 Receivables: Interest 580,521 418,118 180,687 550,469 Shares sold 47,988 3,461 113 8,601 Unrealized gain on swap agreements 12,822 14,062 5,742 22,053 Other assets 648 709 195 556 ------------ ------------ ------------ ------------ Total Assets 38,388,529 34,120,510 12,876,165 28,868,213 ------------ ------------ ------------ ------------ Liabilities Payables: Dividends payable 48,503 72,320 14,453 41,848 Shares redeemed 18,500 98,259 112 8,643 Accrued advisory fees 12,943 13,777 2,398 9,122 Accrued shareholder servicing costs 1,431 1,498 523 1,721 Accrued expenses 6,312 5,372 4,612 8,551 ------------ ------------ ------------ ------------ Total Liabilities 87,689 191,226 22,098 69,885 ------------ ------------ ------------ ------------ Net Assets $ 38,300,840 $ 33,929,284 $ 12,854,067 $ 28,798,328 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $ 36,774,859 $ 31,988,111 $ 12,278,441 $ 27,285,202 Undistributed net investment income 14,098 28,233 12,280 43,565 Accumulated net realized loss on investments and swap agreements -- -- (100,585) -- Net unrealized appreciation in value of investments and swap agreements 1,511,883 1,912,940 663,931 1,469,561 ------------ ------------ ------------ ------------ Total $ 38,300,840 $ 33,929,284 $ 12,854,067 $ 28,798,328 ============ ============ ============ ============ Net Assets: Class A $ 34,185,903 $ 31,369,590 $ 11,567,289 $ 23,935,073 Class B $ 4,114,937 $ 2,559,694 $ 1,286,778 $ 4,863,255 Shares outstanding (Note 2): Class A 2,582,041 2,341,156 854,191 1,733,632 Class B 311,308 190,920 95,064 351,943 Net asset value and redemption price per share - Class A $13.24 $13.40 $13.54 $13.81 ====== ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)* $14.05 $14.22 $14.37 $14.65 ====== ====== ====== ====== Net asset value and offering price per share - Class B (Note 2) $13.22 $13.41 $13.54 $13.82 ====== ====== ====== ====== *On purchases of $100,000 or more the sales charge is reduced. See notes to financial statements.
Statements of Assets and Liabilities FIRST INVESTORS December 31, 2005 - -------------------------------------------------------- ----------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ----------------------------------------------- MASSACHUSETTS MICHIGAN MINNESOTA - -------------------------------------------------------- ----------------------------------------------- Assets Investments in securities: At identified cost $ 23,864,230 $ 31,825,414 $ 15,020,164 ============ ============ ============ At value (Note 1A) $ 25,428,925 $ 34,030,919 $ 15,718,204 Cash 337,614 186,042 104,274 Receivables: Interest 313,577 384,331 309,860 Shares sold 1,100 172,553 19,219 Unrealized gain on swap agreements 7,465 2,003 5,129 Other assets 1,134 1,264 788 ------------ ------------ ------------ Total Assets 26,089,815 34,777,112 16,157,474 ------------ ------------ ------------ Liabilities Payables: Dividends payable 21,047 166,651 11,422 Shares redeemed 40,000 11,788 -- Accrued advisory fees 7,373 13,856 1,428 Accrued shareholder servicing costs 1,503 1,894 856 Accrued expenses 18,333 19,828 5,290 ------------ ------------ ------------ Total Liabilities 88,256 214,017 18,996 ------------ ------------ ------------ Net Assets $ 26,001,559 $ 34,563,095 $ 16,138,478 ============ ============ ============ Net Assets Consist of: Capital paid in $ 24,403,986 $ 32,266,216 $ 15,531,133 Undistributed net investment income 25,413 89,371 3,724 Accumulated net realized loss on investments and swap agreements -- -- (99,548) Net unrealized appreciation in value of investments and swap agreements 1,572,160 2,207,508 703,169 ------------ ------------ ------------ Total $ 26,001,559 $ 34,563,095 $ 16,138,478 ============ ============ ============ Net Assets: Class A $ 23,220,352 $ 32,324,599 $ 15,419,727 Class B $ 2,781,207 $ 2,238,496 $ 718,751 Shares outstanding (Note 2): Class A 1,956,980 2,618,156 1,302,330 Class B 234,184 181,576 60,621 Net asset value and redemption price per share - Class A $11.87 $12.35 $11.84 ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)* $12.59 $13.10 $12.56 ====== ====== ====== Net asset value and offering price per share - Class B (Note 2) $11.88 $12.33 $11.86 ====== ====== ====== *On purchases of $100,000 or more the sales charge is reduced. See notes to financial statements.
Statements of Assets and Liabilities FIRST INVESTORS December 31, 2005 - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- MISSOURI NEW JERSEY NORTH CAROLINA OHIO - -------------------------------------------------------- --------------------------------------------------------------- Assets Investments in securities: At identified cost $ 13,471,613 $ 62,055,370 $ 25,692,258 $ 23,331,192 ============ ============ ============ ============ At value (Note 1A) $ 13,987,089 $ 65,837,400 $ 26,815,554 $ 24,819,366 Cash 24,929 90,594 52,910 113,632 Receivables: Investment securities sold -- -- -- -- Interest 209,922 1,086,984 273,909 154,458 Shares sold 19,028 86,446 37,142 25,692 Unrealized gain on swap agreements 5,128 39,048 5,065 7,465 Other assets 195 1,445 443 1,005 ------------ ------------ ------------ ------------ Total Assets 14,246,291 67,141,917 27,185,023 25,121,618 ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased -- -- -- -- Dividends payable 20,518 44,893 30,598 22,820 Shares redeemed 20,000 103,635 -- -- Accrued advisory fees 1,375 28,421 7,938 5,858 Accrued shareholder servicing costs 479 2,892 1,605 1,457 Accrued expenses 5,261 24,984 7,417 13,398 ------------ ------------ ------------ ------------ Total Liabilities 47,633 204,825 47,558 43,533 ------------ ------------ ------------ ------------ Net Assets $ 14,198,658 $ 66,937,092 $ 27,137,465 $ 25,078,085 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $ 13,689,266 $ 63,100,616 $ 26,019,645 $ 23,601,753 Undistributed net investment income 11,552 24,339 6,911 13,793 Accumulated net realized gain (loss) on investments and swap agreements (22,764) (8,941) (17,452) (33,100) Net unrealized appreciation in value of investments and swap agreements 520,604 3,821,078 1,128,361 1,495,639 ------------ ------------ ------------ ------------ Total $ 14,198,658 $ 66,937,092 $ 27,137,465 $ 25,078,085 ============ ============ ============ ============ Net Assets: Class A $ 11,122,656 $ 61,160,821 $ 22,561,198 $ 21,695,999 Class B $ 3,076,002 $ 5,776,271 $ 4,576,267 $ 3,382,086 Shares outstanding (Note 2): Class A 816,874 4,731,266 1,696,762 1,735,972 Class B 225,742 447,549 344,348 270,426 Net asset value and redemption price per share - Class A $13.62 $12.93 $13.30 $12.50 ====== ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)* $14.45 $13.72 $14.11 $13.26 ====== ====== ====== ====== Net asset value and offering price per share - Class B (Note 2) $13.63 $12.91 $13.29 $12.51 ====== ====== ====== ====== *On purchases of $100,000 or more, the sales charge is reduced. See notes to financial statements.
Statements of Assets and Liabilities FIRST INVESTORS December 31, 2005 - -------------------------------------------------------- ---------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ---------------------------------------------- OREGON PENNSYLVANIA VIRGINIA - -------------------------------------------------------- ---------------------------------------------- Assets Investments in securities: At identified cost $ 30,285,569 $ 43,979,784 $ 30,999,937 ============ ============ ============ At value (Note 1A) $ 31,414,691 $ 46,449,931 $ 32,865,164 Cash 100,404 53,775 71,174 Receivables: Investment securities sold -- 1,039,516 -- Interest 307,797 557,860 600,821 Shares sold 3,265 15,014 13,026 Unrealized gain on swap agreements 10,978 6,509 23,592 Other assets 502 910 704 ------------ ------------ ------------ Total Assets 31,837,637 48,123,515 33,574,481 ------------ ------------ ------------ Liabilities Payables: Investment securities purchased -- 1,020,700 -- Dividends payable 32,438 210,115 58,042 Shares redeemed 41,436 225 218,339 Accrued advisory fees 9,483 17,547 11,388 Accrued shareholder servicing costs 1,978 2,419 1,662 Accrued expenses 11,379 12,151 12,410 ------------ ------------ ------------ Total Liabilities 96,714 1,263,157 301,841 ------------ ------------ ------------ Net Assets $ 31,740,923 $ 46,860,358 $ 33,272,640 ============ ============ ============ Net Assets Consist of: Capital paid in $ 30,584,030 $ 44,347,512 $ 31,380,946 Undistributed net investment income 16,793 36,190 2,615 Accumulated net realized gain (loss) on investments and swap agreements -- -- 260 Net unrealized appreciation in value of investments and swap agreements 1,140,100 2,476,656 1,888,819 ------------ ------------ ------------ Total $ 31,740,923 $ 46,860,358 $ 33,272,640 ============ ============ ============ Net Assets: Class A $ 29,203,804 $ 43,623,174 $ 31,281,130 Class B $ 2,537,119 $ 3,237,184 $ 1,991,510 Shares outstanding (Note 2): Class A 2,252,357 3,374,901 2,395,518 Class B 196,049 250,439 152,976 Net asset value and redemption price per share - Class A $12.97 $12.93 $13.06 ====== ====== ====== Maximum offering price per share - Class A (Net asset value/.9425)* $13.76 $13.72 $13.86 ====== ====== ====== Net asset value and offering price per share - Class B (Note 2) $12.94 $12.93 $13.02 ====== ====== ====== *On purchases of $100,000 or more, the sales charge is reduced. See notes to financial statements.
Statements of Operations FIRST INVESTORS Year Ended December 31, 2005 - -------------------------------------------------------- ------------ ------------ ------------ ------------ INSURED TAX-EXEMPT INTERMEDIATE INSURED INSURED MONEY MARKET TAX EXEMPT TAX EXEMPT TAX EXEMPT II - -------------------------------------------------------- ------------ ------------ ------------ ------------ Investment Income Interest income $ 325,212 $ 2,219,715 $ 40,114,883 $ 4,855,651 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 5): Advisory fees 69,327 380,503 5,705,520 1,107,599 Distribution plan expenses - Class A -- 133,551 2,142,187 236,309 Distribution plan expenses - Class B 13 99,968 32,277 162,362 Shareholder servicing costs 30,395 39,884 492,865 84,973 Professional fees 19,718 24,525 157,038 37,918 Registration fees 55,225 41,036 55,184 47,307 Custodian fees 4,815 8,748 50,706 13,634 Reports to shareholders 7,528 10,041 123,569 17,557 Directors/trustees' fees 543 2,512 31,335 4,269 Other expenses 5,650 24,724 219,775 36,974 ------------ ------------ ------------ ------------ Total expenses 193,214 765,492 9,010,456 1,748,902 Less: Expenses waived (92,979) (82,088) (925,739) (508,688) Expenses paid indirectly (2,008) (5,867) (24,358) (11,121) ------------ ------------ ------------ ------------ Net expenses 98,227 677,537 8,060,359 1,229,093 ------------ ------------ ------------ ------------ Net investment income 226,985 1,542,178 32,054,524 3,626,558 ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Swap Agreements (Note 4): Net realized gain (loss) on investments and swap agreements -- (339,352) 3,069,878 1,064,890 Net unrealized depreciation of investments and swap agreements -- (691,933) (21,566,892) (751,569) ------------ ------------ ------------ ------------ Net gain (loss) on investments and swap agreements -- (1,031,285) (18,497,014) 313,321 ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 226,985 $ 510,893 $ 13,557,510 $ 3,939,879 ============ ============ ============ ============ See notes to financial statements.
Statements of Operations FIRST INVESTORS Year Ended December 31, 2005 - -------------------------------------------------------- ------------ ---------------------------------------------- NEW YORK MULTI-STATE INSURED TAX FREE FUND INSURED ---------------------------------------------- TAX FREE ARIZONA CALIFORNIA COLORADO - -------------------------------------------------------- ------------ ---------------------------------------------- Investment Income Interest income $ 8,511,308 $ 870,197 $ 1,354,687 $ 500,859 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 5): Advisory fees 1,356,264 137,482 217,452 81,280 Distribution plan expenses - Class A 433,928 39,763 65,091 24,327 Distribution plan expenses - Class B 72,638 24,256 29,570 11,065 Shareholder servicing costs 105,866 9,929 13,195 6,807 Professional fees 52,876 10,986 12,113 7,105 Registration fees 1,826 2,209 2,109 600 Custodian fees 14,576 3,456 4,686 2,146 Reports to shareholders 21,009 3,208 4,336 3,518 Directors/trustees' fees 7,100 727 1,132 424 Other expenses 61,161 11,405 12,664 9,430 ------------ ------------ ------------ ------------ Total expenses 2,127,244 243,421 362,348 146,702 Less: Expenses waived (271,253) (85,408) (90,055) (70,987) Expenses paid indirectly (14,714) (2,341) (3,701) (2,400) ------------ ------------ ------------ ------------ Net expenses 1,841,277 155,672 268,592 73,315 ------------ ------------ ------------ ------------ Net investment income 6,670,031 714,525 1,086,095 427,544 ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Swap Agreements (Note 4): Net realized gain (loss) on investments and swap agreements 409,725 288,602 410,390 (668) Net unrealized depreciation of investments and swap agreements (3,250,965) (655,927) (749,557) (193,132) ------------ ------------ ------------ ------------ Net gain (loss) on investments and swap agreements (2,841,240) (367,325) (339,167) (193,800) ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 3,828,791 $ 347,200 $ 746,928 $ 233,744 ============ ============ ============ ============ See notes to financial statements.
Statements of Operations FIRST INVESTORS Year Ended December 31, 2005 - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- CONNECTICUT FLORIDA GEORGIA MARYLAND - -------------------------------------------------------- --------------------------------------------------------------- Investment Income Interest income $ 1,745,659 $ 1,712,181 $ 575,526 $ 1,442,135 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 5): Advisory fees 278,431 275,181 93,837 234,015 Distribution plan expenses - Class A 81,174 84,385 28,084 65,468 Distribution plan expenses - Class B 46,546 29,367 12,780 50,146 Shareholder servicing costs 19,290 18,865 5,564 16,443 Professional fees 14,375 20,000 8,086 15,487 Registration fees 1,358 768 599 2,113 Custodian fees 5,216 5,161 2,315 4,690 Reports to shareholders 5,443 5,058 2,729 4,534 Directors/trustees' fees 1,447 1,451 490 1,279 Other expenses 20,373 15,307 10,677 20,660 ------------ ------------ ------------ ------------ Total expenses 473,653 455,543 165,161 414,835 Less: Expenses waived (118,600) (99,216) (78,051) (107,258) Expenses paid indirectly (4,646) (4,060) (2,471) (4,730) ------------ ------------ ------------ ------------ Net expenses 350,407 352,267 84,639 302,847 ------------ ------------ ------------ ------------ Net investment income 1,395,252 1,359,914 490,887 1,139,288 ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Swap Agreements (Note 4): Net realized gain (loss) on investments and swap agreements 201,692 155,265 (54,787) 208,725 Net unrealized depreciation of investments and swap agreements (725,235) (817,924) (142,678) (698,588) ------------ ------------ ------------ ------------ Net loss on investments and swap agreements (523,543) (662,659) (197,465) (489,863) ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 871,709 $ 697,255 $ 293,422 $ 649,425 ============ ============ ============ ============ See notes to financial statements.
Statements of Operations FIRST INVESTORS Year Ended December 31, 2005 - -------------------------------------------------------- ----------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ----------------------------------------------- MASSACHUSETTS MICHIGAN MINNESOTA - -------------------------------------------------------- ----------------------------------------------- Investment Income Interest income $ 1,268,641 $ 1,814,237 $ 717,309 ------------ ------------ ------------ Expenses (Notes 1 and 5): Advisory fees 202,211 271,744 115,823 Distribution plan expenses - Class A 59,537 84,871 36,496 Distribution plan expenses - Class B 31,465 22,843 8,448 Shareholder servicing costs 16,872 22,168 9,774 Professional fees 16,780 20,825 8,748 Registration fees 2,057 2,059 764 Custodian fees 4,831 5,882 3,344 Reports to shareholders 4,894 5,532 3,792 Directors/trustees' fees 1,112 1,429 602 Other expenses 12,927 16,418 12,409 ------------ ------------ ------------ Total expenses 352,686 453,771 200,200 Less: Expenses waived (96,623) (108,538) (98,320) Expenses paid indirectly (3,296) (2,018) (2,907) ------------ ------------ ------------ Net expenses 252,767 343,215 98,973 ------------ ------------ ------------ Net investment income 1,015,874 1,471,022 618,336 ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Swap Agreements (Note 4): Net realized gain (loss) on investments and swap agreements 376,485 645,963 54,887 Net unrealized depreciation of investments and swap agreements (814,771) (1,281,511) (337,651) ------------ ------------ ------------ Net loss on investments and swap agreements (438,286) (635,548) (282,764) ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 577,588 $ 835,474 $ 335,572 ============ ============ ============ See notes to financial statements.
Statements of Operations FIRST INVESTORS Year Ended December 31, 2005 - -------------------------------------------------------- ---------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ---------------------------------------------------------------- MISSOURI NEW JERSEY NORTH CAROLINA OHIO - -------------------------------------------------------- ---------------------------------------------------------------- Investment Income Interest income $ 594,140 $ 3,230,787 $ 1,216,732 $ 1,225,883 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 5): Advisory fees 99,392 510,320 196,601 191,696 Distribution plan expenses - Class A 25,280 154,814 54,261 54,995 Distribution plan expenses - Class B 31,404 61,172 45,091 35,617 Shareholder servicing costs 5,975 33,927 15,261 16,302 Professional fees 7,767 33,028 11,273 12,021 Registration fees 1,304 569 681 561 Custodian fees 2,577 8,373 4,231 3,436 Reports to shareholders 3,702 8,135 4,718 4,959 Directors/trustees' fees 522 2,389 1,023 1,001 Other expenses 11,760 24,346 15,055 12,074 ------------ ------------ ------------ ------------ Total expenses 189,683 837,073 348,195 332,662 Less: Expenses waived (84,371) (140,219) (113,708) (112,469) Expenses paid indirectly (2,274) (4,614) (4,115) (1,806) ------------ ------------ ------------ ------------ Net expenses 103,038 692,240 230,372 218,387 ------------ ------------ ------------ ------------ Net investment income 491,102 2,538,547 986,360 1,007,496 ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Swap Agreements (Note 4): Net realized gain on investments and swap agreements 39,053 471,810 114,553 36,438 Net unrealized depreciation of investments and swap agreements (195,628) (1,436,871) (463,889) (568,090) ------------ ------------ ------------ ------------ Net loss on investments and swap agreements (156,575) (965,061) (349,336) (531,652) ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 334,527 $ 1,573,486 $ 637,024 $ 475,844 ============ ============ ============ ============ See notes to financial statements.
Statements of Operations FIRST INVESTORS Year Ended December 31, 2005 - -------------------------------------------------------- ---------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ---------------------------------------------- OREGON PENNSYLVANIA VIRGINIA - -------------------------------------------------------- ---------------------------------------------- Investment Income Interest income $ 1,381,389 $ 2,318,516 $ 1,669,368 ------------ ------------ ------------ Expenses (Notes 1 and 5): Advisory fees 226,398 361,895 265,194 Distribution plan expenses - Class A 68,891 112,142 82,593 Distribution plan expenses - Class B 26,299 33,959 23,219 Shareholder servicing costs 22,804 27,253 19,975 Professional fees 12,053 22,059 17,455 Registration fees 1,373 728 821 Custodian fees 5,267 6,876 5,519 Reports to shareholders 6,194 6,767 6,218 Directors/trustees' fees 1,170 2,024 1,395 Other expenses 16,194 19,252 20,292 ------------ ------------ ------------ Total expenses 386,643 592,955 442,681 Less: Expenses waived (106,601) (128,599) (103,701) Expenses paid indirectly (3,797) (4,636) (3,322) ------------ ------------ ------------ Net expenses 276,245 459,720 335,658 ------------ ------------ ------------ Net investment income 1,105,144 1,858,796 1,333,710 ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Swap Agreements (Note 4): Net realized gain on investments and swap agreements 369,684 855,995 350,413 Net unrealized depreciation of investments and swap agreements (749,704) (1,670,399) (851,203) ------------ ------------ ------------ Net loss on investments and swap agreements (380,020) (814,404) (500,790) ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $ 725,124 $ 1,044,392 $ 832,920 ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- TAX-EXEMPT INSURED INTERMEDIATE MONEY MARKET TAX EXEMPT ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 226,985 $ 76,797 $ 1,542,178 $ 1,396,672 Net realized gain (loss) on investments and swap agreements -- -- (339,352) (42,578) Net unrealized depreciation of investments and swap agreements -- -- (691,933) (621,532) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 226,985 76,797 510,893 732,562 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (226,985) (76,797) (1,303,534) (1,217,150) Net investment income - Class B -- -- (167,839) (153,481) Net realized gains - Class A -- -- -- -- Net realized gains - Class B -- -- -- -- ------------ ------------ ------------ ------------ Total distributions (226,985) (76,797) (1,471,373) (1,370,631) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 11,250,261 15,526,220 4,895,599 12,510,318 Reinvestment of distributions 223,126 75,241 1,036,058 930,079 Cost of shares redeemed (12,051,512) (18,519,020) (15,517,584) (10,485,277) ------------ ------------ ------------ ------------ (578,125) (2,917,559) (9,585,927) 2,955,120 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 1 -- 473,152 1,204,621 Reinvestment of distributions 10 -- 117,049 108,582 Cost of shares redeemed (21,632) (41,197) (3,142,187) (2,768,408) ------------ ------------ ------------ ------------ (21,621) (41,197) (2,551,986) (1,455,205) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (599,746) (2,958,756) (12,137,913) 1,499,915 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (599,746) (2,958,756) (13,098,393) 861,846 Net Assets Beginning of year 14,007,342 16,966,098 70,644,421 69,782,575 ------------ ------------ ------------ ------------ End of year+ $ 13,407,596 $ 14,007,342 $ 57,546,028 $ 70,644,421 ============ ============ ============ ============ +Includes undistributed net investment income of $ -- $ -- $ 109,451 $ 38,646 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 11,250,261 15,526,220 766,369 1,932,760 Issued for distributions reinvested 223,126 75,241 162,277 144,275 Redeemed (12,051,512) (18,519,020) (2,427,869) (1,626,829) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (578,125) (2,917,559) (1,499,223) 450,206 ============ ============ ============ ============ Class B: Sold 1 -- 73,864 186,548 Issued for distributions reinvested 10 -- 18,300 16,809 Redeemed (21,632) (41,197) (492,011) (427,443) ------------ ------------ ------------ ------------ Net decrease in Class B shares outstanding (21,621) (41,197) (399,847) (224,086) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- ---------------------------------------------------------------- INSURED INSURED TAX EXEMPT TAX EXEMPT II ------------------------------ ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- ---------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 32,054,524 $ 34,726,429 $ 3,626,558 $ 3,206,325 Net realized gain (loss) on investments and swap agreements 3,069,878 (996,161) 1,064,890 747,721 Net unrealized depreciation of investments and swap agreements (21,566,892) (12,925,151) (751,569) (108,480) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 13,557,510 20,805,117 3,939,879 3,845,566 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (31,899,578) (34,656,091) (3,191,652) (2,730,704) Net investment income - Class B (107,093) (133,406) (423,181) (446,083) Net realized gains - Class A (1,924,902) -- (919,700) (625,204) Net realized gains - Class B (7,805) -- (145,644) (123,282) ------------ ------------ ------------ ------------ Total distributions (33,939,378) (34,789,497) (4,680,177) (3,925,273) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 9,688,186 10,859,209 32,078,273 21,227,156 Reinvestment of distributions 26,372,012 26,578,691 3,101,139 2,539,297 Cost of shares redeemed (80,453,798) (81,302,747) (16,348,733) (20,457,528) ------------ ------------ ------------ ------------ (44,393,600) (43,864,847) 18,830,679 3,308,925 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 62,014 129,257 1,569,637 2,082,638 Reinvestment of distributions 77,755 92,057 415,255 425,505 Cost of shares redeemed (571,141) (1,137,768) (2,236,150) (3,435,657) ------------ ------------ ------------ ------------ (431,372) (916,454) (251,258) (927,514) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (44,824,972) (44,781,301) 18,579,421 2,381,411 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (65,206,840) (58,765,681) 17,839,123 2,301,704 Net Assets Beginning of year 828,094,671 886,860,352 99,993,293 97,691,589 ------------ ------------ ------------ ------------ End of year+ $762,887,831 $828,094,671 $117,832,416 $ 99,993,293 ============ ============ ============ ============ +Includes undistributed net investment income of $ 293,706 $ 253,538 $ 45,364 $ 33,639 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 951,990 1,059,662 2,075,816 1,378,776 Issued for distributions reinvested 2,602,817 2,593,816 200,970 165,270 Redeemed (7,940,469) (7,941,199) (1,057,113) (1,336,511) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (4,385,662) (4,287,721) 1,219,673 207,535 ============ ============ ============ ============ Class B: Sold 6,090 12,677 101,350 134,824 Issued for distributions reinvested 7,692 8,997 26,917 27,698 Redeemed (56,200) (111,054) (144,670) (225,431) ------------ ------------ ------------ ------------ Net decrease in Class B shares outstanding (42,418) (89,380) (16,403) (62,909) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND NEW YORK ----------------------------- INSURED TAX FREE ARIZONA ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 6,670,031 $ 7,235,620 $ 714,525 $ 870,885 Net realized gain (loss) on investments and swap agreements 409,725 (2,148,682) 288,602 69,920 Net unrealized depreciation of investments and swap agreements (3,250,965) (696,617) (655,927) (230,690) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 3,828,791 4,390,321 347,200 710,115 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (6,518,214) (7,134,342) (641,127) (779,499) Net investment income - Class B (218,689) (254,270) (79,919) (88,963) Net realized gains - Class A -- -- (251,373) (61,321) Net realized gains - Class B -- -- (37,390) (8,649) ------------ ------------ ------------ ------------ Total distributions (6,736,903) (7,388,612) (1,009,809) (938,432) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 12,030,467 10,685,426 1,584,820 1,256,785 Reinvestment of distributions 4,584,085 5,140,818 595,630 510,877 Cost of shares redeemed (22,011,512) (19,928,188) (4,428,657) (5,368,089) ------------ ------------ ------------ ------------ (5,396,960) (4,101,944) (2,248,207) (3,600,427) ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 493,050 422,722 48,163 359,824 Reinvestment of distributions 181,074 210,286 55,121 51,575 Cost of shares redeemed (1,231,707) (1,472,513) (305,202) (978,700) ------------ ------------ ------------ ------------ (557,583) (839,505) (201,918) (567,301) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (5,954,543) (4,941,449) (2,450,125) (4,167,728) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (8,862,655) (7,939,740) (3,112,734) (4,396,045) Net Assets Beginning of year 185,587,811 193,527,551 20,433,991 24,830,036 ------------ ------------ ------------ ------------ End of year+ $176,725,156 $185,587,811 $ 17,321,257 $ 20,433,991 ============ ============ ============ ============ +Includes undistributed net investment income of $ 24,044 $ 91,533 $ 1,565 $ 8,086 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 829,851 731,828 115,779 90,986 Issued for distributions reinvested 316,439 352,186 43,862 36,922 Redeemed (1,520,329) (1,364,324) (322,931) (387,659) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (374,039) (280,310) (163,290) (259,751) ============ ============ ============ ============ Class B: Sold 33,951 29,106 3,503 25,997 Issued for distributions reinvested 12,516 14,423 4,062 3,728 Redeemed (85,084) (100,817) (22,322) (70,885) ------------ ------------ ------------ ------------ Net decrease in Class B shares outstanding (38,617) (57,288) (14,757) (41,160) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- ---------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ---------------------------------------------------------------- CALIFORNIA COLORADO ------------------------------ ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- ---------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 1,086,095 $ 1,118,922 $ 427,544 $ 468,854 Net realized gain (loss) on investments and swap agreements 410,390 (1,228) (668) 32,443 Net unrealized depreciation of investments and swap agreements (749,557) (29,430) (193,132) (162,016) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 746,928 1,088,264 233,744 339,281 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (1,007,194) (1,002,660) (402,310) (418,598) Net investment income - Class B (91,407) (98,056) (36,984) (44,306) Net realized gains - Class A (372,193) -- -- -- Net realized gains - Class B (36,131) -- -- -- ------------ ------------ ------------ ------------ Total distributions (1,506,925) (1,100,716) (439,294) (462,904) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 3,495,807 3,327,105 1,090,885 1,506,132 Reinvestment of distributions 809,296 565,902 271,761 296,650 Cost of shares redeemed (2,956,457) (4,994,575) (1,207,755) (3,941,044) ------------ ------------ ------------ ------------ 1,348,646 (1,101,568) 154,891 (2,138,262) ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 118,717 140,274 3,300 88,035 Reinvestment of distributions 54,682 40,838 25,760 28,447 Cost of shares redeemed (574,319) (635,385) (122,159) (637,145) ------------ ------------ ------------ ------------ (400,920) (454,273) (93,099) (520,663) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions 947,726 (1,555,841) 61,792 (2,658,925) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 187,729 (1,568,293) (143,758) (2,782,548) Net Assets Beginning of year 28,919,765 30,488,058 10,851,021 13,633,569 ------------ ------------ ------------ ------------ End of year+ $ 29,107,494 $ 28,919,765 $ 10,707,263 $ 10,851,021 ============ ============ ============ ============ +Includes undistributed net investment income of $ 16,211 $ 28,717 $ 3,255 $ 15,005 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 281,661 266,470 79,572 107,998 Issued for distributions reinvested 65,495 45,634 19,879 21,564 Redeemed (237,708) (401,382) (88,388) (287,789) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 109,448 (89,278) 11,063 (158,227) ============ ============ ============ ============ Class B: Sold 9,416 11,086 245 6,444 Issued for distributions reinvested 4,425 3,292 1,884 2,070 Redeemed (46,394) (51,661) (8,954) (46,446) ------------ ------------ ------------ ------------ Net decrease in Class B shares outstanding (32,553) (37,283) (6,825) (37,932) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- CONNECTICUT FLORIDA ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 1,395,252 $ 1,437,677 $ 1,359,914 $ 1,526,474 Net realized gain (loss) on investments and swap agreements 201,692 (9,581) 155,265 109,636 Net unrealized depreciation of investments and swap agreements (725,235) (84,724) (817,924) (310,411) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 871,709 1,343,372 697,255 1,325,699 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (1,263,963) (1,246,426) (1,288,423) (1,409,052) Net investment income - Class B (148,376) (172,518) (90,665) (98,983) Net realized gains - Class A (174,891) -- (143,644) (100,964) Net realized gains - Class B (21,109) -- (11,738) (8,951) ------------ ------------ ------------ ------------ Total distributions (1,608,339) (1,418,944) (1,534,470) (1,617,950) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 5,068,615 4,901,311 2,394,965 4,221,290 Reinvestment of distributions 1,134,531 907,176 849,378 861,819 Cost of shares redeemed (3,503,752) (4,858,857) (7,581,680) (5,762,913) ------------ ------------ ------------ ------------ 2,699,394 949,630 (4,337,337) (679,804) ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 143,750 171,594 293,957 277,972 Reinvestment of distributions 103,977 107,188 38,934 46,816 Cost of shares redeemed (1,014,279) (1,241,070) (938,683) (422,978) ------------ ------------ ------------ ------------ (766,552) (962,288) (605,792) (98,190) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions 1,932,842 (12,658) (4,943,129) (777,994) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,196,212 (88,230) (5,780,344) (1,070,245) Net Assets Beginning of year 37,104,628 37,192,858 39,709,628 40,779,873 ------------ ------------ ------------ ------------ End of year+ $ 38,300,840 $ 37,104,628 $ 33,929,284 $ 39,709,628 ============ ============ ============ ============ +Includes undistributed net investment income of $ 14,098 $ 31,185 $ 28,233 $ 47,407 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 378,121 365,009 176,298 307,140 Issued for distributions reinvested 84,796 67,574 62,654 63,002 Redeemed (260,620) (361,216) (558,505) (420,415) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 202,297 71,367 (319,553) (50,273) ============ ============ ============ ============ Class B: Sold 10,715 12,821 21,441 20,240 Issued for distributions reinvested 7,782 7,989 2,870 3,422 Redeemed (76,075) (92,697) (68,969) (30,952) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (57,578) (71,887) (44,658) (7,290) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- GEORGIA MARYLAND ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 490,887 $ 442,632 $ 1,139,288 $ 1,208,279 Net realized gain (loss) on investments and swap agreements (54,787) (45,798) 208,725 (188,230) Net unrealized depreciation of investments and swap agreements (142,678) (52,254) (698,588) (252,869) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 293,422 344,580 649,425 767,180 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (444,490) (399,998) (993,984) (1,011,003) Net investment income - Class B (40,636) (43,910) (151,675) (162,812) Net realized gains - Class A -- -- (17,301) -- Net realized gains - Class B -- -- (3,511) -- ------------ ------------ ------------ ------------ Total distributions (485,126) (443,908) (1,166,471) (1,173,815) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 2,166,882 1,678,395 2,242,520 3,855,660 Reinvestment of distributions 308,385 289,352 579,879 562,666 Cost of shares redeemed (1,549,404) (697,758) (5,556,327) (3,913,103) ------------ ------------ ------------ ------------ 925,863 1,269,989 (2,733,928) 505,223 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 35,643 175,836 345,773 84,479 Reinvestment of distributions 24,405 25,438 107,988 115,905 Cost of shares redeemed (50,193) (458,942) (691,560) (979,473) ------------ ------------ ------------ ------------ 9,855 (257,668) (237,799) (779,089) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions 935,718 1,012,321 (2,971,727) (273,866) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 744,014 912,993 (3,488,773) (680,501) Net Assets Beginning of year 12,110,053 11,197,060 32,287,101 32,967,602 ------------ ------------ ------------ ------------ End of year+ $ 12,854,067 $ 12,110,053 $ 28,798,328 $ 32,287,101 ============ ============ ============ ============ +Includes undistributed net investment income of $ 12,280 $ 6,519 $ 43,565 $ 49,947 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 158,166 122,182 160,898 274,901 Issued for distributions reinvested 22,578 21,159 41,603 40,140 Redeemed (113,963) (51,195) (400,887) (278,145) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 66,781 92,146 (198,386) 36,896 ============ ============ ============ ============ Class B: Sold 2,607 12,893 24,775 5,975 Issued for distributions reinvested 1,788 1,862 7,743 8,260 Redeemed (3,655) (33,395) (49,543) (69,576) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding 740 (18,640) (17,025) (55,341) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- MASSACHUSETTS MICHIGAN ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 1,015,874 $ 1,113,540 $ 1,471,022 $ 1,621,494 Net realized gain (loss) on investments and swap agreements 376,485 (280,495) 645,963 19,726 Net unrealized appreciation (depreciation)of investments and swap agreements (814,771) (93,949) (1,281,511) (753,444) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 577,588 739,096 835,474 887,776 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (901,286) (1,003,042) (1,320,301) (1,564,872) Net investment income - Class B (95,926) (112,002) (71,653) (69,045) Net realized gains - Class A (85,992) -- (604,061) (18,653) Net realized gains - Class B (10,293) -- (42,113) (1,187) ------------ ------------ ------------ ------------ Total distributions (1,093,497) (1,115,044) (2,038,128) (1,653,757) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 2,108,969 2,649,815 3,062,173 2,334,422 Reinvestment of distributions 802,284 838,840 1,363,568 1,047,597 Cost of shares redeemed (4,559,670) (3,647,128) (6,844,921) (8,345,749) ------------ ------------ ------------ ------------ (1,648,417) (158,473) (2,419,180) (4,963,730) ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 154,790 217,588 15,001 1,019,288 Reinvestment of distributions 91,266 97,412 61,267 59,859 Cost of shares redeemed (1,031,974) (523,826) (61,887) (449,793) ------------ ------------ ------------ ------------ (785,918) (208,826) 14,381 629,354 ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (2,434,335) (367,299) (2,404,799) (4,334,376) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (2,950,244) (743,247) (3,607,453) (5,100,357) Net Assets Beginning of year 28,951,803 29,695,050 38,170,548 43,270,905 ------------ ------------ ------------ ------------ End of year+ $ 26,001,559 $ 28,951,803 $ 34,563,095 $ 38,170,548 ============ ============ ============ ============ +Includes undistributed net investment income of $ 25,413 $ 6,751 $ 89,371 $ 10,303 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 175,625 215,998 241,666 182,111 Issued for distributions reinvested 66,851 69,517 108,717 81,909 Redeemed (379,269) (301,961) (539,930) (648,634) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (136,793) (16,446) (189,547) (384,614) ============ ============ ============ ============ Class B: Sold 12,856 18,099 1,184 81,208 Issued for distributions reinvested 7,596 8,064 4,893 4,695 Redeemed (85,464) (43,560) (4,928) (35,114) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (65,012) (17,397) 1,149 50,789 ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- -------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND -------------------------------------------------------------- MINNESOTA MISSOURI ---------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- -------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income 618,336 $ 618,874 $ 491,102 $ 425,716 Net realized gain (loss) on investments and swap agreements 54,887 (110,109) 39,053 (61,817) Net unrealized appreciation (depreciation)of investments and swap agreements (337,651) (12,405) (195,628) 7,604 ----------- ------------ ------------ ------------ Net increase in net assets resulting from operations 335,572 496,360 334,527 371,503 ----------- ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (600,396) (577,488) (393,874) (317,027) Net investment income - Class B (28,636) (39,057) (98,712) (102,848) Net realized gains - Class A -- -- -- -- Net realized gains - Class B -- -- -- -- ----------- ------------ ------------ ------------ Total distributions (629,032) (616,545) (492,586) (419,875) ----------- ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 2,438,812 1,515,312 3,771,425 680,322 Reinvestment of distributions 464,710 460,890 181,699 172,794 Cost of shares redeemed (1,494,052) (1,423,828) (546,973) (1,135,071) ----------- ------------ ------------ ------------ 1,409,470 552,374 3,406,151 (281,955) ----------- ------------ ------------ ------------ Class B: Proceeds from shares sold 24,600 226,775 16,000 254,474 Reinvestment of distributions 22,541 29,562 73,524 75,436 Cost of shares redeemed (433,750) (321,605) (251,793) (152,376) ----------- ------------ ------------ ------------ (386,609) (65,268) (162,269) 177,534 ----------- ------------ ------------ ------------ Net increase (decrease) from share transactions 1,022,861 487,106 3,243,882 (104,421) ----------- ------------ ------------ ------------ Net increase (decrease) in net assets 729,401 366,921 3,085,823 (152,793) Net Assets Beginning of year 15,409,077 15,042,156 11,112,835 11,265,628 ----------- ------------ ------------ ------------ End of year+ 16,138,478 $ 15,409,077 $ 14,198,658 $ 11,112,835 =========== ============ ============ ============ +Includes undistributed net investment income of 3,724 $ 15,374 $ 11,552 $ 13,036 =========== ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 205,184 125,475 274,741 49,594 Issued for distributions reinvested 38,872 38,275 13,254 12,616 Redeemed (124,842) (118,957) (40,001) (83,123) ----------- ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 119,214 44,793 247,994 (20,913) =========== ============ ============ ============ Class B: Sold 2,053 18,824 1,163 18,386 Issued for distributions reinvested 1,881 2,451 5,359 5,507 Redeemed (36,089) (26,566) (18,261) (11,099) ----------- ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (32,155) (5,291) (11,739) 12,794 =========== ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- NEW JERSEY NORTH CAROLINA ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 2,538,547 $ 2,695,206 $ 986,360 $ 950,901 Net realized gain (loss) on investments and swap agreements 471,810 (480,751) 114,553 (28,263) Net unrealized depreciation of investments and swap agreements (1,436,871) (564,678) (463,889) (173,945) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 1,573,486 1,649,777 637,024 748,693 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (2,369,615) (2,461,177) (854,186) (793,354) Net investment income - Class B (184,090) (207,772) (145,221) (143,369) Net realized gains - Class A -- -- (86,354) -- Net realized gains - Class B -- -- (17,530) -- ------------ ------------ ------------ ------------ Total distributions (2,553,705) (2,668,949) (1,103,291) (936,723) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 5,462,576 6,964,472 3,568,841 3,405,548 Reinvestment of distributions 1,655,005 1,658,007 703,115 564,125 Cost of shares redeemed (8,294,950) (7,871,721) (2,755,822) (1,985,084) ------------ ------------ ------------ ------------ (1,177,369) 750,758 1,516,134 1,984,589 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 608,700 516,658 387,195 596,971 Reinvestment of distributions 137,776 153,682 136,692 113,630 Cost of shares redeemed (1,400,979) (1,126,781) (241,631) (879,663) ------------ ------------ ------------ ------------ (654,503) (456,441) 282,256 (169,062) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (1,831,872) 294,317 1,798,390 1,815,527 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (2,812,091) (724,855) 1,332,123 1,627,497 Net Assets Beginning of year 69,749,183 70,474,038 25,805,342 24,177,845 ------------ ------------ ------------ ------------ End of year+ $ 66,937,092 $ 69,749,183 $ 27,137,465 $ 25,805,342 ============ ============ ============ ============ +Includes undistributed net investment income of $ 24,339 $ 39,497 $ 6,911 $ 19,958 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 420,848 529,174 264,712 252,131 Issued for distributions reinvested 127,109 126,513 52,364 41,877 Redeemed (637,933) (600,459) (204,526) (147,365) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (89,976) 55,228 112,550 146,643 ============ ============ ============ ============ Class B: Sold 46,687 39,340 28,657 43,587 Issued for distributions reinvested 10,599 11,758 10,184 8,432 Redeemed (107,553) (86,001) (17,975) (64,966) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (50,267) (34,903) 20,866 (12,947) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- ---------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND ---------------------------------------------------------------- OHIO OREGON ------------------------------ ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- ---------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 1,007,496 $ 1,032,907 $ 1,105,144 $ 1,108,252 Net realized gain (loss) on investments and swap agreements 36,438 (61,610) 369,684 (152,598) Net unrealized depreciation of investments and swap agreements (568,090) (359,074) (749,704) (199,179) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 475,844 612,223 725,124 756,475 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (900,539) (890,551) (1,017,097) (1,013,524) Net investment income - Class B (118,592) (128,513) (78,135) (90,415) Net realized gains - Class A -- -- (163,420) -- Net realized gains - Class B -- -- (14,222) -- ------------ ------------ ------------ ------------ Total distributions (1,019,131) (1,019,064) (1,272,874) (1,103,939) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 1,646,663 1,568,616 6,285,232 5,005,781 Reinvestment of distributions 639,214 642,361 960,389 805,670 Cost of shares redeemed (2,132,615) (2,914,221) (4,173,808) (4,599,232) ------------ ------------ ------------ ------------ 153,262 (703,244) 3,071,813 1,212,219 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 281,720 661,809 146,874 258,785 Reinvestment of distributions 92,493 94,024 84,271 82,309 Cost of shares redeemed (573,555) (1,314,596) (339,788) (646,264) ------------ ------------ ------------ ------------ (199,342) (558,763) (108,643) (305,170) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (46,080) (1,262,007) 2,963,170 907,049 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (589,367) (1,668,848) 2,415,420 559,585 Net Assets Beginning of year 25,667,452 27,336,300 29,325,503 28,765,918 ------------ ------------ ------------ ------------ End of year+ $ 25,078,085 $ 25,667,452 $ 31,740,923 $ 29,325,503 ============ ============ ============ ============ +Includes undistributed net investment income of $ 13,793 $ 25,428 $ 16,793 $ 6,881 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 130,358 123,369 480,039 378,817 Issued for distributions reinvested 50,621 50,404 73,375 61,138 Redeemed (169,185) (228,169) (318,237) (349,432) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 11,794 (54,396) 235,177 90,523 ============ ============ ============ ============ Class B: Sold 22,163 51,402 11,208 19,484 Issued for distributions reinvested 7,317 7,366 6,450 6,255 Redeemed (45,423) (104,613) (26,051) (49,232) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (15,943) (45,845) (8,393) (23,493) ============ ============ ============ ============ See notes to financial statements.
Statements of Changes in Net Assets FIRST INVESTORS - -------------------------------------------------------- --------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND --------------------------------------------------------------- PENNSYLVANIA VIRGINIA ----------------------------- ----------------------------- Year Ended December 31 2005 2004 2005 2004 - -------------------------------------------------------- --------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment income $ 1,858,796 $ 1,885,568 $ 1,333,710 $ 1,670,534 Net realized gain (loss) on investments and swap agreements 855,995 (239,114) 350,413 (166,527) Net unrealized depreciation of investments and swap agreements (1,670,399) (565,122) (851,203) (469,991) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 1,044,392 1,081,332 832,920 1,034,016 ------------ ------------ ------------ ------------ Distributions to Shareholders Net investment income - Class A (1,749,625) (1,773,253) (1,297,926) (1,596,737) Net investment income - Class B (104,652) (113,727) (72,966) (88,681) Net realized gains - Class A (576,482) -- (161,530) (11,293) Net realized gains - Class B (42,775) -- (10,316) (754) ------------ ------------ ------------ ------------ Total distributions (2,473,534) (1,886,980) (1,542,738) (1,697,465) ------------ ------------ ------------ ------------ Share Transactions * Class A: Proceeds from shares sold 2,932,750 5,427,673 2,955,893 3,541,235 Reinvestment of distributions 1,505,092 1,068,162 932,169 821,567 Cost of shares redeemed (5,452,739) (4,940,784) (7,885,670) (9,556,243) ------------ ------------ ------------ ------------ (1,014,897) 1,555,051 (3,997,608) (5,193,441) ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 236,654 440,041 113,246 169,007 Reinvestment of distributions 101,386 71,681 69,379 66,124 Cost of shares redeemed (455,565) (527,938) (535,656) (654,101) ------------ ------------ ------------ ------------ (117,525) (16,216) (353,031) (418,970) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (1,132,422) 1,538,835 (4,350,639) (5,612,411) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (2,561,564) 733,187 (5,060,457) (6,275,860) Net Assets Beginning of year 49,421,922 48,688,735 38,333,097 44,608,957 ------------ ------------ ------------ ------------ End of year+ $ 46,860,358 $ 49,421,922 $ 33,272,640 $ 38,333,097 ============ ============ ============ ============ +Includes undistributed net investment income of $ 36,190 $ 33,931 $ 2,615 $ 39,797 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 221,706 408,428 223,242 265,085 Issued for distributions reinvested 114,710 80,182 70,579 61,717 Redeemed (412,730) (371,966) (593,121) (720,475) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (76,314) 116,644 (299,300) (393,673) ============ ============ ============ ============ Class B: Sold 17,849 32,574 8,560 12,760 Issued for distributions reinvested 7,737 5,386 5,268 4,983 Redeemed (34,529) (39,867) (40,784) (49,305) ------------ ------------ ------------ ------------ Net decrease in Class B shares outstanding (8,943) (1,907) (26,956) (31,562) ============ ============ ============ ============ See notes to financial statements.
Notes to Financial Statements December 31, 2005 1. Significant Accounting Policies--First Investors Tax-Exempt Money Market Fund, Inc. ("Tax-Exempt Money Market Fund"), First Investors Insured Intermediate Tax Exempt Fund ("Insured Intermediate Fund"), a series of First Investors Series Fund ("Series Fund"), First Investors Insured Tax Exempt Fund, Inc. ("Insured Tax Exempt Fund"), First Investors Insured Tax Exempt Fund II ("Insured Tax Exempt II Fund"), a series of Executive Investors Trust, First Investors New York Insured Tax Free Fund, Inc. ("New York Insured Fund") and the Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania and Virginia Funds, each a series of First Investors Multi-State Insured Tax Free Fund ("Multi-State Insured Fund"), (collectively, the "Funds"), 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. Series Fund offers four additional series which are not included in this report. The investment objective of each Fund is as follows: Tax-Exempt Money Market Fund seeks to earn a high rate of current income that is exempt from federal income tax, including the Alternative Minimum Tax ("AMT"), consistent with the preservation of capital and maintenance of liquidity. Insured Intermediate Fund seeks a high level of interest income that is exempt from federal income tax and is not a tax preference item for purposes of the AMT. Insured Tax Exempt Fund seeks a high level of interest income that is exempt from federal income tax and is not a tax preference item for purposes of the AMT. Insured Tax Exempt II Fund seeks a high level of interest income that is exempt from federal income tax and is not a tax preference item for purposes of the AMT. New York Insured Fund and each fund of the Multi-State Insured Fund seek a high level of interest income that is exempt from both federal and state income tax for individual residents of a particular state and is not a tax preference item for purposes of the AMT. A. Security Valuation--The Tax-Exempt Money Market Fund values its portfolio securities in accordance with the amortized cost method of valuation under Rule 2a-7 of the 1940 Act. Amortized cost is an approximation of value of an instrument, whereby the difference between its acquisition cost and the 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. The municipal securities in which the other Funds invest are traded primarily in the over-the-counter markets. Such securities are valued daily based upon valuations provided by a pricing service approved by the applicable Fund's Board of Directors/Trustees (the "Board"). The pricing service considers security type, rating, market condition and yield data, as well as market quotations and prices provided by market makers. The swap agreements held by the Funds, other than the Tax-Exempt Money Market Fund, are valued by a pricing service. The pricing service determines prices by calculating the market rate or new par swap rate. The difference between the original fixed rate and the new par swap rate is the basis for calculating the swap's value. If prices are not available or determined to be unreliable, the securities will be valued at fair value as determined in good faith pursuant to procedures adopted by the Board. "When-issued securities" are reflected in the assets of the Funds as of the date the securities are purchased. Under normal circumstances, each of the Funds, other than the Tax-Exempt Money Market Fund, invests at least 80% of its assets in municipal bonds and municipal securities that are insured as to payment of principal and interest under insurance policies written by independent insurance companies. When an issuer has not provided insurance, the Fund will obtain insurance from AMBAC Indemnity Corporation. The Funds may retain any insured municipal bond which is in default in the payment of principal or interest until the default has been cured, or the principal and interest outstanding are paid by an insurer or the issuer of any letter of credit or other guarantee supporting such municipal bond. In such case, it is the Funds' policy to value the defaulted bond daily based upon the value of a comparable bond which is not in default. In selecting a comparable bond, the Funds will consider security type, rating, market condition and yield. B. Federal Income Taxes--It is the policy of the Funds to continue to qualify as regulated investment companies, which can distribute tax exempt dividends, by complying with the provisions available to regulated investment companies, as defined in the Internal Revenue Code. The Funds make distributions of income and net realized capital gains (in excess of any available capital loss carryovers) sufficient to relieve them from all, or substantially all, federal income taxes. Notes to Financial Statements (continued) December 31, 2005 At December 31, 2005, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire ----------------------------------------------- Fund Total 2011 2012 2013 - ---- ------------ ----------- ------------ ------------- Insured Intermediate $ 218,495 $ -- $ 42,499 $175,996 New York Insured 1,738,340 -- 1,738,340 -- Colorado 4,145 3,477 -- 668 Georgia 100,585 -- 45,798 54,787 Minnesota 85,398 -- 85,398 -- Missouri 22,764 -- 22,764 -- New Jersey 8,941 -- 8,941 -- Ohio 33,456 -- 33,456 --
C. Distributions to Shareholders--The Tax-Exempt Money Market 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 the other Funds are 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 capital loss carryforwards, deferral of wash sales and post-October losses. D. Expense Allocation/Class Allocation--Direct expenses attributable to a Fund are charged to and paid from the assets of that Fund. General expenses of Multi-State Insured Fund and Series Fund are allocated among and charged to the assets of each Fund in the series on a fair and equitable basis, which may be based on the relative assets of each Fund or the nature of the services performed and relative applicability to each Fund. E. Security Transactions and Investment Income--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 amortized cost basis for the Tax-Exempt Money Market Fund and on the identified cost basis for the other Funds for both financial statement and federal income tax purposes. Interest income is earned from settlement date and recorded on the accrual basis. Premiums and discounts on securities are amortized using the interest method. Estimated expenses are accrued daily. For the year ended December 31, 2005, The Bank of New York, custodian for the Funds, has provided credits in the amount of $108,671 against custodian charges based on the uninvested cash balances of the Funds. The Funds also reduced expenses through brokerage service arrangements. For the year ended December 31, 2005, the Funds' expenses under these arrangements were reduced by $6,531. F. Derivatives--The Funds, other than the Tax-Exempt Money Market Fund, may invest in derivatives such as inverse floating rate securities ("inverse floaters") and interest rate swap agreements ("swaps") for the purpose of managing their exposure to interest rate risk. Inverse floaters are securities on which the rate of interest varies inversely with interest rates on other securities or the value of an index. For example, an inverse floater may pay interest at a rate that increases as a specified interest rate index decreases but decreases as that index increases. The secondary market for inverse floaters may be limited and they may be illiquid. The market values of such securities generally are more volatile than the market values of ordinary fixed rate obligations. The interest rates on inverse floaters may be significantly reduced, even to zero, if interest rates rise. Interest rate swap transactions are agreements between two parties to exchange interest payments on a designated amount of two different securities for a designated period of time. For example, two parties may agree to exchange interest payments on variable and fixed rate instruments. The Funds may enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its bond portfolio. Swaps are marked-to-market daily based on valuations provided by a pricing service and changes in value, if any, are recorded as unrealized appreciation or depreciation in the Statements of Operations. Gains or losses are realized upon early termination of the swap agreements. Risks may exceed the amounts shown in the Statements of Assets and Liabilities. These risks include failure of the counterparty to perform under the contract's terms and the possible lack of liquidity with respect to the swap agreements. The swap agreements open as of December 31, 2005, are presented following each Fund's Portfolio of Investments. G. 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. 2. Capital--Tax-Exempt Money Market Fund sells two classes of shares, Class A and Class B, each without an initial sales charge. Class B shares may only be acquired through an exchange of Class B shares from another First Investors eligible Fund or through the reinvestment of dividends on Class B shares and are generally subject to a contingent deferred sales charge at the rate of 4% in the first year and Notes to Financial Statements (continued) December 31, 2005 declining to 0% over a six-year period, which is payable to First Investors Corporation as underwriter of the Fund. 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 5. Class B shares are sold without an initial sales charge, but are generally subject to a contingent deferred sales charge which declines in steps from 4% to 0% over a six-year period. Class B shares automatically convert into Class A shares after eight years. Realized and unrealized gains or losses, investment income and expenses (other than distribution plan fees) are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Of the 1,000,000,000 $.01 par value shares originally authorized, Tax-Exempt Money Market Fund has designated 500,000,000 shares as Class A and 500,000,000 shares as Class B. Of the 500,000,000 $1.00 par value shares originally authorized, Insured Tax Exempt Fund has designated 300,000,000 shares as Class A and 200,000,000 shares as Class B. Of the 1,000,000,000 $.01 par value shares originally authorized, New York Insured Fund has designated 500,000,000 shares as Class A and 500,000,000 shares as Class B. Executive Investors Trust, Multi-State Insured Fund and Series Fund have established an unlimited number of no par value shares of beneficial interest for both Class A and Class B shares. 3. Concentration of Credit Risk-- The Funds invest in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic developments in a state, industry or region. 4. Security Transactions--For the year ended December 31, 2005, purchases and sales of municipal securities, other than short-term municipal notes and swap agreements, were as follows:
Cost of Proceeds Fund Purchases of Sales - ---- ------------ ------------ Insured Intermediate $ 91,601,110 $101,905,362 Insured Tax Exempt 191,124,929 241,646,189 Insured Tax Exempt II 138,407,107 122,807,948 New York Insured 87,246,263 89,943,165 Arizona 2,596,858 5,314,944 California 16,942,814 16,720,164 Colorado 517,285 356,249 Connecticut 15,323,155 14,020,680 Florida 6,526,465 11,539,712 Georgia 3,289,134 2,615,720 Maryland 8,162,392 11,401,833 Massachusetts 7,329,420 10,043,666 Michigan 12,688,116 16,613,909 Minnesota 5,604,885 4,702,573 Missouri 8,096,585 4,742,568 New Jersey 26,697,964 27,174,368 North Carolina 7,395,368 5,604,672 Ohio 3,375,080 3,487,654 Oregon 16,019,100 13,169,189 Pennsylvania 17,678,040 18,335,101 Virginia 7,989,808 12,205,051
Notes to Financial Statements (continued) December 31, 2005 At December 31, 2005, aggregate cost and net unrealized appreciation of securities, excluding swap agreements, for federal income tax purposes were as follows:
Gross Gross Net Aggregate Unrealized Unrealized Unrealized Fund Cost Appreciation Depreciation Appreciation - ---- ------------ ------------ ------------ ------------- Insured Intermediate $ 56,575,250 $ 516,043 $13,449 $ 502,594 Insured Tax Exempt 681,472,642 69,871,184 -- 69,871,184 Insured Tax Exempt II 114,391,235 3,612,759 -- 3,612,759 New York Insured 164,769,750 11,251,779 -- 11,251,779 Arizona 16,091,180 883,970 -- 883,970 California 27,131,974 1,718,326 -- 1,718,326 Colorado 9,958,093 582,876 -- 582,876 Connecticut 35,781,611 1,502,498 3,437 1,499,061 Florida 31,691,460 1,898,878 -- 1,898,878 Georgia 11,711,409 658,189 -- 658,189 Maryland 26,744,138 1,458,043 10,535 1,447,508 Massachusetts 23,864,230 1,567,542 2,847 1,564,695 Michigan 31,825,414 2,205,505 -- 2,205,505 Minnesota 15,020,164 698,206 166 698,040 Missouri 13,471,613 519,847 4,371 515,476 New Jersey 62,055,370 3,782,107 77 3,782,030 North Carolina 25,692,258 1,123,296 -- 1,123,296 Ohio 23,331,192 1,488,174 -- 1,488,174 Oregon 30,285,569 1,133,437 4,315 1,129,122 Pennsylvania 43,979,784 2,472,161 2,014 2,470,147 Virginia 30,999,937 1,865,227 -- 1,865,227
5. Advisory Fee and Other Transactions With Affiliates--Certain officers and directors/trustees of the Funds are officers and directors of the Funds' investment adviser, First Investors Management Company, Inc. ("FIMCO"), their underwriter, First Investors Corporation ("FIC") and /or their transfer agent, Administrative Data Management Corp. ("ADM"). Directors/trustees of the Funds who are not "interested persons" of the Funds as defined in the 1940 Act are remunerated by the Funds. For the year ended December 31, 2005, total directors/trustees fees accrued by the Funds amounted to $65,376. The Investment Advisory Agreements provide as compensation to FIMCO for each Fund, other than the Tax-Exempt Money Market Fund, Insured Intermediate Fund and Insured Tax Exempt II Fund, an annual fee, payable monthly, at the rate of .75% on the first $250 million of the average daily net assets of each Fund, declining by ..03% on each $250 million thereafter, down to .66% on average daily net assets over $750 million. The annual fee for the Tax-Exempt Money Market Fund and Insured Intermediate Fund is payable monthly, at the rate of .50% and .60%, respectively, of each Fund's average daily net assets. The annual fee for Insured Tax Exempt II Fund is payable monthly, at the rate of 1% on the first $200 million of the average daily net assets of the Fund, .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. For the year ended December 31, 2005, FIMCO has voluntarily waived advisory fees in excess of .60% for Insured Tax Exempt Fund and New York Insured Fund. In addition, FIMCO has voluntarily waived advisory fees to limit each of the other Fund's overall expense ratio on Class A and Class B shares as follows: ..71% on Class A and 1.46% on Class B for Tax-Exempt Money Market; .95% on Class A and 1.70% on Class B for Insured Intermediate and New Jersey; 1.00% on Class A and 1.75% on Class B for Insured Tax Exempt II; .75% on Class A and 1.50% on Class B for Arizona, North Carolina, and Ohio; .85% on Class A and 1.60% on Class B for California, Connecticut, Maryland, Massachusetts and Oregon; .60% on Class A and 1.35% on Class B for Colorado, Georgia, Minnesota and Missouri; and .90% on Class A and 1.65% on Class B for Florida, Michigan, Pennsylvania and Virginia. For the year ended December 31, 2005, advisory fees accrued by the Funds to FIMCO were $12,378,165 of which $3,623,471 was waived as noted above. For the year ended December 31, 2005, FIC, as underwriter, received $2,215,299 in commissions from the sale of shares of the Funds after allowing $522,961 to other dealers. Shareholder servicing costs included $910,941 in transfer agent fees accrued to ADM. Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, each Fund, other than the Tax-Exempt Money Market 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 Tax-Exempt Money Market Fund, is authorized to pay FIC a fee up to 1% of the average daily net assets of the Class B shares on an annual basis, payable monthly. The fee consists of a distribution fee and a service fee. The service fee is paid for the ongoing servicing of clients who are shareholders of that Fund. For the year ended December 31, 2005, the fees paid under the distribution plans, other than the Tax-Exempt Money Market Fund, were limited to .27% on Class A and 1.00% on Class B for the Insured Tax Exempt Fund and .25% on Class A and 1.00% on Class B for each of the remaining Funds. The distribution fees paid by Tax-Exempt Money Market Fund were limited to. 75% on Class B shares. For the year ended December 31, 2005, total distribution plan fees accrued to FIC by the Funds amounted to $4,958,652. Notes to Financial Statements (continued) December 31, 2005 6. Tax Components of Capital and Distributions to Shareholders--The tax character of distributions declared for the years ended December 31, 2005 and December 31, 2004 were as follows:
Year Ended December 31, 2005 Year Ended December 31, 2004 ---------------------------------------------------- ------------------------------------------------------- Distributions Declared from Distributions Declared from -------------------------------------- ---------------------------------------- Long-Term Long-Term Tax-Exempt Ordinary Capital Tax-Exempt Ordinary Capital Fund Income Income Gain Total Income Income Gain Total - ---- ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------- Intermediate $ 1,471,373 $ -- $ -- $ 1,471,373 $ 1,370,631 $ -- $ -- $ 1,370,631 Tax Exempt 32,006,671 -- 1,932,707 33,939,378 34,789,497 -- -- 34,789,497 Tax Exempt II 3,614,833 345,282 720,062 4,680,177 3,176,787 -- 748,486 3,925,273 New York Insured 6,736,903 -- -- 6,736,903 7,388,612 -- -- 7,388,612 Arizona 721,046 167,834 120,929 1,009,809 868,462 -- 69,970 938,432 California 1,098,601 -- 408,324 1,506,925 1,100,716 -- -- 1,100,716 Colorado 439,294 -- -- 439,294 462,904 -- -- 462,904 Connecticut 1,412,339 -- 196,000 1,608,339 1,418,944 -- -- 1,418,944 Florida 1,379,088 -- 155,382 1,534,470 1,508,035 -- 109,915 1,617,950 Georgia 485,126 -- -- 485,126 443,908 -- -- 443,908 Maryland 1,145,659 -- 20,812 1,166,471 1,173,815 -- -- 1,173,815 Massachusetts 997,212 -- 96,285 1,093,497 1,115,044 -- -- 1,115,044 Michigan 1,391,954 -- 646,174 2,038,128 1,633,917 -- 19,840 1,653,757 Minnesota 629,032 -- -- 629,032 616,545 -- -- 616,545 Missouri 492,586 -- -- 492,586 419,875 -- -- 419,875 New Jersey 2,553,705 -- -- 2,553,705 2,668,949 -- -- 2,668,949 North Carolina 999,407 -- 103,884 1,103,291 936,723 -- -- 936,723 Ohio 1,019,131 -- -- 1,019,131 1,019,064 -- -- 1,019,064 Oregon 1,095,232 -- 177,642 1,272,874 1,103,939 -- -- 1,103,939 Pennsylvania 1,854,277 -- 619,257 2,473,534 1,886,980 -- -- 1,886,980 Virginia 1,370,892 -- 171,846 1,542,738 1,685,418 -- 12,047 1,697,465
As of December 31, 2005, the components of distributable earnings on a tax basis were as follows:
Undistributed Undistributed Undistributed Tax-Exempt Taxable Capital Gains Total Tax Ordinary Ordinary or (Loss) Unrealized Distributable Fund Income Income Carryover Appreciation Earnings* - ---- ------------ ------------ ------------- ------------ ------------ Insured Intermediate $109,451 $ -- $ (218,495) $ 490,096 $ 381,052 Insured Tax Exempt 9,469 284,237 -- 69,946,726 70,240,432 Insured Tax Exempt II 45,170 194 -- 3,654,293 3,699,657 New York Insured 15,152 8,892 (1,738,340) 11,416,685 9,702,389 Arizona 1,489 76 -- 884,972 886,537 California 3,591 12,620 838 1,737,197 1,754,246 Colorado 2,424 831 (4,145) 585,747 584,857 Connecticut 12,848 1,250 -- 1,511,883 1,525,981 Florida 25,769 2,464 -- 1,912,940 1,941,173 Georgia 11,509 771 (100,585) 663,931 575,626 Maryland 28,932 14,633 -- 1,469,561 1,513,126 Massachusetts 20,100 5,313 -- 1,572,160 1,597,573 Michigan 76,300 13,071 -- 2,207,508 2,296,879 Minnesota 1,250 2,474 (85,398) 703,169 621,495 Missouri 10,852 700 (22,764) 520,604 509,392 New Jersey 18,787 5,552 (8,941) 3,821,078 3,836,476 North Carolina 2,834 4,077 -- 1,128,361 1,135,272 Ohio 13,175 618 (33,100) 1,495,639 1,476,332 Oregon 16,793 -- -- 1,140,100 1,156,893 Pennsylvania 14,388 21,802 -- 2,476,656 2,512,846 Virginia 1,060 1,555 260 1,888,819 1,891,694 * Differences between book distributable earnings and tax distributable earnings consist of post-October losses.
Notes to Financial Statements (continued) December 31, 2005 For the year ended December 31, 2005, the following reclassifications were made to reflect permanent differences between book and tax reporting:
Accumulated Undistributed Capital Net Realized Net Investment Fund Paid In Gain Income - ---- ------------ ------------ ------------- Insured Tax Exempt $(1,186) $8,871 $(7,685) Insured Tax Exempt II (454) 454 -- New York Insured -- 617 (617) Arizona (161) 161 -- Connecticut (3,889) 3,889 -- Florida (117) 117 -- Maryland (306) 317 (11) Massachusetts (295) 295 -- Michigan (211) 211 -- Minnesota -- 954 (954) North Carolina (142) 142 -- Oregon (255) 255 -- Pennsylvania (116) 2,376 (2,260)
7. Fund Reorganizations--The shareholders of the Funds approved an Agreement and Plan of Conversion and Termination pursuant to which each Fund would be reorganized into a corresponding series of the First Investors Tax Exempt Funds, a newly-established Delaware statutory trust (the "Reorganizations"). As part of the Reorganizations, the investment objectives of each Fund will be classified as non-fundamental, which means the Board of Trustees may change the objective of each Fund without shareholder approval. First Investors Insured Tax Exempt Fund II's objective will be revised to state "seeks a high level of interest income that is exempt from federal income tax and is not a tax preference item for purposes of the federal alternative minimum tax and, secondarily, total return." It is expected that the Reorganizations will take effect after the close of business on or about April 28, 2006, although the date may be adjusted in accordance with the Agreement and Plan of Conversion and Termination. This page intentionally left blank.
Financial Highlights FIRST INVESTORS The following table sets forth the per share operating data for a share outstanding, total return, ratios to average net assets and other supplemental data for each year indicated. - --------------------------------------------------------------------------------------------------------------------------- P E R S H A R E D A T A -------------------------------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Realized Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- Class A - ------- 2001 $ 1.00 $.022 -- $ .022 $.022 -- $.022 2002 1.00 .008 -- .008 .008 -- .008 2003 1.00 .003 -- .003 .003 -- .003 2004 1.00 .005 -- .005 .005 -- .005 2005 1.00 .016 -- .016 .016 -- .016 Class B - ------- 2001 1.00 .014 -- .014 .014 -- .014 2002 1.00 .001 -- .001 .001 -- .001 2003 1.00 -- -- -- -- -- -- 2004 1.00 -- -- -- -- -- -- 2005 1.00 .009 -- .009 .009 -- .009 - --------------------------------------------------------------------------------------------------------------------------- INSURED INTERMEDIATE TAX EXEMPT FUND - ------------------------------------ Class A - ------- 2001 $ 6.10 $.243 $ .049 $ .292 $.245 $.137 $.382 2002 6.01 .208 .543 .751 .208 .103 .311 2003 6.45 .150 .092 .242 .149 .043 .192 2004 6.50 .134 (.052) .082 .132 -- .132 2005 6.45 .164 (.108) .056 .156 -- .156 Class B - ------- 2001 6.11 .195 .050 .245 .198 .137 .335 2002 6.02 .159 .544 .703 .160 .103 .263 2003 6.46 .101 .093 .194 .101 .043 .144 2004 6.51 .086 (.052) .034 .084 -- .084 2005 6.46 .118 (.110) .008 .108 -- .108 - --------------------------------------------------------------------------------------------------------------------------- INSURED TAX EXEMPT FUND - ----------------------- Class A - ------- 2001 $10.33 $.460 $(.099) $ .361 $.470 $.071 $.541 2002 10.15 .446 .560 1.006 .452 .244 .696 2003 10.46 .425 .037 .462 .422 .080 .502 2004 10.42 .418 (.169) .249 .419 -- .419 2005 10.25 .409 (.236) .173 .408 .025 .433 Class B - ------- 2001 10.33 .385 (.106) .279 .398 .071 .469 2002 10.14 .370 .564 .934 .380 .244 .624 2003 10.45 .344 .036 .380 .350 .080 .430 2004 10.40 .336 (.159) .177 .347 -- .347 2005 10.23 .329 (.228) .101 .336 .025 .361 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ----------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income (Loss) Rate - --------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- Class A - ------- 2001 $ 1.00 2.17% $ 20,185 .80% 2.10% .88% 2.02% -- 2002 1.00 .81 18,409 .80 .81 .92 .69 -- 2003 1.00 .34 16,902 .75 .35 1.11 (.01) -- 2004 1.00 .51 13,985 .70 .49 1.24 (.05) -- 2005 1.00 1.66 13,407 .71 1.63 1.39 .95 -- Class B - ------- 2001 1.00 1.41 30 1.55 1.35 1.63 1.27 -- 2002 1.00 .12 64 1.48 .13 1.60 .01 -- 2003 1.00 -- 64 1.10 -- 1.46 (.36) -- 2004 1.00 -- 23 1.19 -- 1.73 (.54) -- 2005 1.00 .91 1 1.46 .88 2.14 .20 -- - --------------------------------------------------------------------------------------------------------------------------- INSURED INTERMEDIATE TAX EXEMPT FUND - ------------------------------------ Class A - ------- 2001 $ 6.01 4.82% $ 11,298 .75% 3.90% 1.05% 3.60% 134% 2002 6.45 12.67 29,560 .75 3.27 1.14 2.88 168 2003 6.50 3.79 57,103 .85 2.28 1.09 2.04 77 2004 6.45 1.28 59,520 .95 2.08 1.05 1.98 102 2005 6.35 .88 49,128 .95 2.55 1.09 2.41 147 Class B - ------- 2001 6.02 4.02 2,674 1.50 3.15 1.80 2.85 134 2002 6.46 11.80 7,907 1.50 2.52 1.89 2.13 168 2003 6.51 3.02 12,680 1.60 1.53 1.84 1.29 77 2004 6.46 .53 11,125 1.70 1.33 1.80 1.23 102 2005 6.36 .13 8,419 1.70 1.80 1.84 1.66 147 - --------------------------------------------------------------------------------------------------------------------------- INSURED TAX EXEMPT FUND - ----------------------- Class A - ------- 2001 $10.15 3.51% $901,699 1.05% 4.43% 1.10% 4.38% 32% 2002 10.46 10.10 915,763 1.03 4.26 1.10 4.19 29 2003 10.42 4.50 882,285 1.02 4.06 1.11 3.97 25 2004 10.25 2.47 824,507 1.01 4.08 1.15 3.94 27 2005 9.99 1.72 759,815 1.01 4.02 1.13 3.90 24 Class B - ------- 2001 10.14 2.70 5,260 1.78 3.70 1.83 3.65 32 2002 10.45 9.36 5,553 1.76 3.53 1.83 3.46 29 2003 10.40 3.70 4,576 1.75 3.33 1.84 3.24 25 2004 10.23 1.76 3,588 1.74 3.35 1.88 3.21 27 2005 9.97 1.00 3,073 1.74 3.29 1.86 3.17 24 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- INSURED TAX EXEMPT II FUND - -------------------------- Class A - ------- 2001 $14.30 $.591 $ .175 $ .766 $.593 $.143 $ .736 2002 14.33 .549 1.191 1.740 .548 .252 .800 2003 15.27 .526 .231 .757 .527 .090 .617 2004 15.41 .535 .123 .658 .531 .117 .648 2005 15.42 .523 .050 .573 .523 .140 .663 Class B - ------- 2001 14.30 .487 .169 .656 .483 .143 .626 2002 14.33 .439 1.187 1.626 .444 .252 .696 2003 15.26 .412 .230 .642 .412 .090 .502 2004 15.40 .419 .129 .548 .411 .117 .528 2005 15.42 .408 .045 .453 .403 .140 .543 - --------------------------------------------------------------------------------------------------------------------------- NEW YORK INSURED TAX FREE FUND - ------------------------------ Class A - ------- 2001 $14.61 $.622 $ (.164) $ .458 $.628 $ -- $ .628 2002 14.44 .614 .869 1.483 .610 .413 1.023 2003 14.90 .596 .042 .638 .585 .123 .708 2004 14.83 .570 (.219) .351 .581 -- .581 2005 14.60 .536 (.225) .311 .541 -- .541 Class B - ------- 2001 14.61 .511 (.159) .352 .522 -- .522 2002 14.44 .500 .865 1.365 .502 .413 .915 2003 14.89 .485 .035 .520 .477 .123 .600 2004 14.81 .460 (.217) .243 .473 -- .473 2005 14.58 .427 (.224) .203 .433 -- .433 - --------------------------------------------------------------------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND - --------------------------------- ARIZONA FUND - ------------ Class A - ------- 2001 $13.36 $.616 $(.012) $ .604 $.614 $ -- $.614 2002 13.35 .574 .752 1.326 .571 .125 .696 2003 13.98 .552 .101 .653 .556 .087 .643 2004 13.99 .552 (.074) .478 .550 .048 .598 2005 13.87 .547 (.270) .277 .551 .226 .777 Class B - ------- 2001 13.35 .514 (.009) .505 .515 -- .515 2002 13.34 .470 .758 1.228 .463 .125 .588 2003 13.98 .445 .100 .545 .448 .087 .535 2004 13.99 .449 (.079) .370 .442 .048 .490 2005 13.87 .445 (.268) .177 .451 .226 .677 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- INSURED TAX EXEMPT II FUND - -------------------------- Class A - ------- 2001 $14.33 5.43% $ 29,851 1.00% 4.03% 1.52% 3.51% 190% 2002 15.27 12.34 64,728 1.00 3.67 1.47 3.20 147 2003 15.41 5.04 80,300 1.00 3.43 1.48 2.95 120 2004 15.42 4.36 83,555 1.00 3.47 1.46 3.01 115 2005 15.33 3.77 101,741 1.00 3.37 1.46 2.91 114 Class B - ------- 2001 14.33 4.63 3,019 1.75 3.28 2.27 2.76 190 2002 15.26 11.49 12,771 1.75 2.92 2.22 2.45 147 2003 15.40 4.26 17,392 1.75 2.68 2.23 2.20 120 2004 15.42 3.62 16,439 1.75 2.72 2.21 2.26 115 2005 15.33 2.97 16,091 1.75 2.62 2.21 2.16 114 - --------------------------------------------------------------------------------------------------------------------------- NEW YORK INSURED TAX FREE FUND - ------------------------------ Class A - ------- 2001 $14.44 3.14% $171,962 1.01% 4.22% 1.16% 4.07% 48% 2002 14.90 10.45 186,992 .99 4.11 1.14 3.96 70 2003 14.83 4.37 184,944 .99 3.99 1.14 3.84 21 2004 14.60 2.44 177,975 .98 3.88 1.13 3.73 30 2005 14.37 2.16 169,787 .99 3.70 1.14 3.55 49 Class B - ------- 2001 14.44 2.40 6,981 1.74 3.49 1.89 3.34 48 2002 14.89 9.59 10,293 1.74 3.36 1.89 3.21 70 2003 14.81 3.55 8,583 1.74 3.24 1.89 3.09 21 2004 14.58 1.69 7,613 1.73 3.13 1.88 2.98 30 2005 14.35 1.41 6,938 1.74 2.95 1.89 2.80 49 - --------------------------------------------------------------------------------------------------------------------------- MULTI-STATE INSURED TAX FREE FUND - --------------------------------- ARIZONA FUND - ------------ Class A - ------- 2001 $13.35 4.56% $ 16,652 .65% 4.55% 1.20% 4.00% 36% 2002 13.98 10.12 20,148 .75 4.19 1.17 3.77 28 2003 13.99 4.77 21,709 .75 3.95 1.20 3.50 43 2004 13.87 3.51 17,911 .75 3.96 1.18 3.53 15 2005 13.37 2.04 15,086 .75 3.99 1.23 3.51 14 Class B - ------- 2001 13.34 3.80 1,485 1.40 3.80 1.95 3.25 36 2002 13.98 9.34 2,111 1.50 3.44 1.92 3.02 28 2003 13.99 3.96 3,121 1.50 3.20 1.95 2.75 43 2004 13.87 2.71 2,523 1.50 3.21 1.93 2.78 15 2005 13.37 1.30 2,235 1.50 3.24 1.98 2.76 14 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- CALIFORNIA FUND - --------------- Class A - ------- 2001 $12.01 $.544 $(.095) $ .449 $.571 $.028 $.599 2002 11.86 .507 .719 1.226 .505 .111 .616 2003 12.47 .481 .063 .544 .479 .025 .504 2004 12.51 .480 .002 .482 .472 -- .472 2005 12.52 .474 (.151) .323 .480 .173 .653 Class B - ------- 2001 12.01 .456 (.097) .359 .481 .028 .509 2002 11.86 .413 .717 1.130 .409 .111 .520 2003 12.47 .387 .061 .448 .383 .025 .408 2004 12.51 .388 (.002) .386 .376 -- .376 2005 12.52 .384 (.147) .237 .384 .173 .557 - --------------------------------------------------------------------------------------------------------------------------- COLORADO FUND - ------------- Class A - ------- 2001 $12.99 $.619 $ .055 $ .674 $.620 $.014 $.634 2002 13.03 .575 .801 1.376 .574 .082 .656 2003 13.75 .560 .126 .686 .556 -- .556 2004 13.88 .564 (.089) .475 .555 -- .555 2005 13.80 .548 (.234) .314 .564 -- .564 Class B - ------- 2001 12.98 .544 .071 .615 .551 .014 .565 2002 13.03 .471 .797 1.268 .476 .082 .558 2003 13.74 .456 .122 .578 .448 -- .448 2004 13.87 .466 (.089) .377 .447 -- .447 2005 13.80 .449 (.243) .206 .456 -- .456 - --------------------------------------------------------------------------------------------------------------------------- CONNECTICUT FUND - ---------------- Class A - ------- 2001 $13.11 $.604 $(.051) $ .553 $.593 $ -- $.593 2002 13.07 .564 .701 1.265 .577 .138 .715 2003 13.62 .536 .023 .559 .534 .115 .649 2004 13.53 .533 (.037) .496 .526 -- .526 2005 13.50 .515 (.186) .329 .521 .068 .589 Class B - ------- 2001 13.11 .505 (.059) .446 .496 -- .496 2002 13.06 .460 .709 1.169 .481 .138 .619 2003 13.61 .434 .021 .455 .430 .115 .545 2004 13.52 .434 (.034) .400 .430 -- .430 2005 13.49 .414 (.191) .223 .425 .068 .493 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- CALIFORNIA FUND - --------------- Class A - ------- 2001 $11.86 3.78% $17,449 .65% 4.52% 1.14% 4.03% 36% 2002 12.47 10.53 23,240 .75 4.14 1.16 3.73 51 2003 12.51 4.45 26,977 .75 3.87 1.20 3.42 81 2004 12.52 3.96 25,873 .85 3.86 1.16 3.55 30 2005 12.19 2.63 26,536 .85 3.81 1.17 3.49 59 Class B - ------- 2001 11.86 3.01 1,046 1.40 3.77 1.89 3.28 36 2002 12.47 9.67 2,523 1.50 3.39 1.91 2.98 51 2003 12.51 3.65 3,511 1.50 3.12 1.95 2.67 81 2004 12.52 3.15 3,046 1.60 3.11 1.91 2.80 30 2005 12.20 1.92 2,571 1.60 3.06 1.92 2.74 59 - --------------------------------------------------------------------------------------------------------------------------- COLORADO FUND - ------------- Class A - ------- 2001 $13.03 5.24% $ 7,268 .50% 4.70% 1.15% 4.05% 61% 2002 13.75 10.76 10,027 .60 4.28 1.27 3.61 32 2003 13.88 5.09 11,956 .60 4.07 1.29 3.38 46 2004 13.80 3.51 9,705 .60 4.06 1.25 3.41 7 2005 13.55 2.32 9,675 .60 4.01 1.27 3.34 3 Class B - ------- 2001 13.03 4.56 419 1.25 3.95 1.90 3.30 61 2002 13.74 9.89 1,337 1.35 3.53 2.02 2.86 32 2003 13.87 4.28 1,678 1.35 3.32 2.04 2.63 46 2004 13.80 2.78 1,146 1.35 3.31 2.00 2.66 7 2005 13.55 1.51 1,032 1.35 3.26 2.02 2.59 3 - --------------------------------------------------------------------------------------------------------------------------- CONNECTICUT FUND - ---------------- Class A - ------- 2001 $13.07 4.26% $22,552 .80% 4.57% 1.19% 4.18% 33% 2002 13.62 9.86 29,865 .80 4.20 1.20 3.80 52 2003 13.53 4.19 31,234 .85 3.94 1.20 3.59 25 2004 13.50 3.76 32,130 .85 3.97 1.18 3.64 45 2005 13.24 2.48 34,186 .85 3.84 1.18 3.51 38 Class B - ------- 2001 13.06 3.43 3,689 1.55 3.82 1.94 3.43 33 2002 13.61 9.09 6,048 1.55 3.45 1.95 3.05 52 2003 13.52 3.40 5,959 1.60 3.19 1.95 2.84 25 2004 13.49 3.02 4,975 1.60 3.22 1.93 2.89 45 2005 13.22 1.68 4,115 1.60 3.09 1.93 2.76 38 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- FLORIDA FUND - ------------ Class A - ------- 2001 $13.38 $.592 $ (.028) $ .564 $.598 $.146 $.744 2002 13.20 .563 .796 1.359 .558 .171 .729 2003 13.83 .531 .038 .569 .527 .062 .589 2004 13.81 .523 (.068) .455 .517 .038 .555 2005 13.71 .513 (.243) .270 .518 .062 .580 Class B - ------- 2001 13.38 .491 (.035) .456 .500 .146 .646 2002 13.19 .462 .801 1.263 .452 .171 .623 2003 13.83 .429 .032 .461 .419 .062 .481 2004 13.81 .421 (.064) .357 .409 .038 .447 2005 13.72 .414 (.243) .171 .419 .062 .481 - --------------------------------------------------------------------------------------------------------------------------- GEORGIA FUND - ------------ Class A - ------- 2001 $13.23 $.619 $ (.027) $ .592 $.622 $ -- $.622 2002 13.20 .581 .823 1.404 .579 .165 .744 2003 13.86 .562 .109 .671 .557 .114 .671 2004 13.86 .547 (.119) .428 .548 -- .548 2005 13.74 .547 (.205) .342 .542 -- .542 Class B - ------- 2001 13.22 .519 (.033) .486 .526 -- .526 2002 13.18 .477 .820 1.297 .472 .165 .637 2003 13.84 .460 .103 .563 .449 .114 .563 2004 13.84 .447 (.117) .330 .440 -- .440 2005 13.73 .444 (.199) .245 .435 -- .435 - --------------------------------------------------------------------------------------------------------------------------- MARYLAND FUND - ------------- Class A - ------- 2001 $13.48 $.605 $(.077) $ .528 $.608 $ -- $.608 2002 13.40 .558 .773 1.331 .556 .035 .591 2003 14.14 .526 .094 .620 .525 .025 .550 2004 14.21 .538 (.194) .344 .524 -- .524 2005 14.03 .527 (.209) .318 .528 .010 .538 Class B - ------- 2001 13.48 .504 (.080) .424 .504 -- .504 2002 13.40 .454 .769 1.223 .448 .035 .483 2003 14.14 .420 .102 .522 .417 .025 .442 2004 14.22 .436 (.200) .236 .416 -- .416 2005 14.04 .423 (.212) .211 .421 .010 .431 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- FLORIDA FUND - ------------ Class A - ------- 2001 $13.20 4.25% $28,990 .80% 4.38% 1.17% 4.01% 73% 2002 13.83 10.48 34,524 .85 4.13 1.18 3.80 42 2003 13.81 4.19 37,426 .85 3.84 1.17 3.52 37 2004 13.71 3.38 36,477 .90 3.81 1.16 3.55 20 2005 13.40 2.00 31,370 .90 3.76 1.18 3.48 18 Class B - ------- 2001 13.19 3.42 1,356 1.55 3.63 1.92 3.26 73 2002 13.83 9.72 2,354 1.60 3.38 1.93 3.05 42 2003 13.81 3.38 3,354 1.60 3.09 1.92 2.77 37 2004 13.72 2.64 3,232 1.65 3.06 1.91 2.80 20 2005 13.41 1.26 2,560 1.65 3.01 1.93 2.73 18 - --------------------------------------------------------------------------------------------------------------------------- GEORGIA FUND - ------------ Class A - ------- 2001 $13.20 4.52% $ 7,429 .50% 4.64% 1.13% 4.01% 37% 2002 13.86 10.84 8,324 .60 4.20 1.25 3.55 36 2003 13.86 4.94 9,633 .60 4.05 1.26 3.39 20 2004 13.74 3.18 10,815 .60 4.00 1.24 3.36 32 2005 13.54 2.53 11,567 .60 3.99 1.24 3.35 21 Class B - ------- 2001 13.18 3.70 729 1.25 3.89 1.88 3.26 37 2002 13.84 10.00 1,531 1.35 3.45 2.00 2.80 36 2003 13.84 4.13 1,564 1.35 3.30 2.01 2.64 20 2004 13.73 2.45 1,295 1.35 3.25 1.99 2.61 32 2005 13.54 1.81 1,287 1.35 3.24 1.99 2.60 21 - --------------------------------------------------------------------------------------------------------------------------- MARYLAND FUND - ------------- Class A - ------- 2001 $13.40 3.95% $17,758 .65% 4.46% 1.17% 3.94% 33% 2002 14.14 10.10 28,204 .75 4.04 1.17 3.62 35 2003 14.21 4.47 26,934 .85 3.71 1.18 3.38 27 2004 14.03 2.48 27,107 .85 3.83 1.18 3.50 15 2005 13.81 2.30 23,935 .85 3.76 1.21 3.40 27 Class B - ------- 2001 13.40 3.16 4,474 1.40 3.71 1.92 3.19 33 2002 14.14 9.25 6,148 1.50 3.29 1.92 2.87 35 2003 14.22 3.75 6,033 1.60 2.96 1.93 2.63 27 2004 14.04 1.70 5,180 1.60 3.08 1.93 2.75 15 2005 13.82 1.52 4,863 1.60 3.01 1.95 2.66 27 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS FUND - ------------------ Class A - ------- 2001 $11.85 $.538 $(.050) $ .488 $.540 $.028 $.568 2002 11.77 .512 .674 1.186 .513 .143 .656 2003 12.30 .484 .103 .587 .482 .165 .647 2004 12.24 .465 (.139) .326 .466 -- .466 2005 12.10 .465 (.195) .270 .456 .044 .500 Class B - ------- 2001 11.85 .445 (.055) .390 .452 .028 .480 2002 11.76 .421 .679 1.100 .417 .143 .560 2003 12.30 .392 .099 .491 .386 .165 .551 2004 12.24 .375 (.135) .240 .370 -- .370 2005 12.11 .379 (.197) .182 .368 .044 .412 - --------------------------------------------------------------------------------------------------------------------------- MICHIGAN FUND - ------------- Class A - ------- 2001 $12.73 $.581 $(.090) $ .491 $.595 $.006 $.601 2002 12.62 .563 .668 1.231 .551 .270 .821 2003 13.03 .535 .061 .596 .541 .055 .596 2004 13.03 .523 (.240) .283 .526 .007 .533 2005 12.78 .523 (.224) .299 .494 .235 .729 Class B - ------- 2001 12.72 .487 (.092) .395 .499 .006 .505 2002 12.61 .464 .661 1.125 .455 .270 .725 2003 13.01 .437 .063 .500 .445 .055 .500 2004 13.01 .425 (.238) .187 .430 .007 .437 2005 12.76 .426 (.223) .203 .398 .235 .633 - --------------------------------------------------------------------------------------------------------------------------- MINNESOTA FUND - -------------- Class A - ------- 2001 $11.57 $.555 $(.045) $ .510 $.560 -- $.560 2002 11.52 .520 .561 1.081 .521 -- .521 2003 12.08 .499 .083 .582 .492 -- .492 2004 12.17 .496 (.091) .405 .495 -- .495 2005 12.08 .483 (.231) .252 .492 -- .492 Class B - ------- 2001 11.57 .471 (.045) .426 .476 -- .476 2002 11.52 .433 .554 .987 .427 -- .427 2003 12.08 .407 .089 .496 .396 -- .396 2004 12.18 .408 (.089) .319 .399 -- .399 2005 12.10 .405 (.240) .165 .405 -- .405 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS FUND - ------------------ Class A - ------- 2001 $11.77 4.15% $24,626 .80% 4.50% 1.18% 4.12% 45% 2002 12.30 10.26 25,687 .80 4.21 1.18 3.83 21 2003 12.24 4.86 25,819 .85 3.93 1.19 3.59 21 2004 12.10 2.74 25,329 .85 3.85 1.19 3.51 29 2005 11.87 2.27 23,220 .85 3.85 1.22 3.48 27 Class B - ------- 2001 11.76 3.30 2,771 1.55 3.75 1.93 3.37 45 2002 12.30 9.49 3,855 1.55 3.46 1.93 3.08 21 2003 12.24 4.05 3,876 1.60 3.18 1.94 2.84 21 2004 12.11 2.01 3,623 1.60 3.10 1.94 2.76 29 2005 11.88 1.52 2,781 1.60 3.10 1.97 2.73 27 - --------------------------------------------------------------------------------------------------------------------------- MICHIGAN FUND - ------------- Class A - ------- 2001 $12.62 3.89% $38,797 .86% 2.49% 1.16% 2.19% 22% 2002 13.03 9.93 41,992 .92 4.33 1.17 4.08 27 2003 13.03 4.66 41,585 .94 4.11 1.19 3.86 29 2004 12.78 2.25 35,869 .90 4.07 1.19 3.78 23 2005 12.35 2.38 32,325 .90 4.10 1.20 3.80 36 Class B - ------- 2001 12.61 3.12 1,448 1.61 1.74 1.91 1.44 22 2002 13.01 9.05 1,758 1.67 3.58 1.92 3.33 27 2003 13.01 3.91 1,686 1.69 3.36 1.94 3.11 29 2004 12.76 1.48 2,302 1.65 3.32 1.94 3.03 23 2005 12.33 1.61 2,238 1.65 3.35 1.95 3.05 36 - --------------------------------------------------------------------------------------------------------------------------- MINNESOTA FUND - -------------- Class A - ------- 2001 $11.52 4.47% $10,321 .50% 4.77% 1.15% 4.12% 27% 2002 12.08 9.57 12,259 .60 4.40 1.26 3.74 28 2003 12.17 4.91 13,848 .60 4.14 1.30 3.44 32 2004 12.08 3.42 14,287 .60 4.12 1.24 3.48 18 2005 11.84 2.13 15,420 .60 4.03 1.25 3.38 31 Class B - ------- 2001 11.52 3.72 234 1.25 4.02 1.90 3.37 27 2002 12.08 8.71 821 1.35 3.65 2.01 2.99 28 2003 12.18 4.17 1,194 1.35 3.39 2.05 2.69 32 2004 12.10 2.68 1,122 1.35 3.37 1.99 2.73 18 2005 11.86 1.38 719 1.35 3.28 2.00 2.63 31 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- MISSOURI FUND - ------------- Class A - ------- 2001 $12.88 $.604 $(.073) $ .531 $.601 $ -- $.601 2002 12.81 .559 .844 1.403 .563 -- .563 2003 13.65 .541 .185 .726 .534 .012 .546 2004 13.83 .558 (.056) .502 .552 -- .552 2005 13.78 .533 (.154) .379 .539 -- .539 Class B - ------- 2001 12.88 .503 (.068) .435 .505 -- .505 2002 12.81 .460 .847 1.307 .467 -- .467 2003 13.65 .438 .180 .618 .426 .012 .438 2004 13.83 .454 (.050) .404 .444 -- .444 2005 13.79 .433 (.161) .272 .432 -- .432 - --------------------------------------------------------------------------------------------------------------------------- NEW JERSEY FUND - --------------- Class A - ------- 2001 $13.08 $.588 $(.061) $ .527 $.610 $.037 $.647 2002 12.96 .543 .694 1.237 .553 .264 .817 2003 13.38 .524 .038 .562 .526 .116 .642 2004 13.30 .518 (.184) .334 .514 -- .514 2005 13.12 .494 (.186) .308 .498 -- .498 Class B - ------- 2001 13.05 .491 (.060) .431 .514 .037 .551 2002 12.93 .445 .686 1.131 .457 .264 .721 2003 13.34 .424 .046 .470 .424 .116 .540 2004 13.27 .418 (.192) .226 .406 -- .406 2005 13.09 .395 (.185) .210 .390 -- .390 - --------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA FUND - ------------------- Class A - ------- 2001 $12.86 $.583 $(.082) $ .501 $.581 $ -- $.581 2002 12.78 .541 .788 1.329 .539 -- .539 2003 13.57 .536 .145 .681 .537 .084 .621 2004 13.63 .530 (.108) .422 .522 -- .522 2005 13.53 .522 (.173) .349 .528 .051 .579 Class B - ------- 2001 12.87 .486 (.083) .403 .483 -- .483 2002 12.79 .442 .791 1.233 .443 -- .443 2003 13.58 .434 .141 .575 .441 .084 .525 2004 13.63 .429 (.103) .326 .426 -- .426 2005 13.53 .422 (.179) .243 .432 .051 .483 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- MISSOURI FUND - ------------- Class A - ------- 2001 $12.81 4.17% $ 4,585 .50% 4.65% 1.16% 3.99% 29% 2002 13.65 11.16 6,656 .60 4.22 1.31 3.51 45 2003 13.83 5.43 8,158 .60 3.95 1.35 3.20 22 2004 13.78 3.73 7,839 .60 4.07 1.28 3.39 7 2005 13.62 2.79 11,123 .60 3.87 1.25 3.22 37 Class B - ------- 2001 12.81 3.40 719 1.25 3.90 1.91 3.24 29 2002 13.65 10.36 2,096 1.35 3.47 2.06 2.76 45 2003 13.83 4.60 3,108 1.35 3.20 2.10 2.45 22 2004 13.79 2.99 3,274 1.35 3.32 2.03 2.64 7 2005 13.63 2.00 3,076 1.35 3.12 2.00 2.47 37 - --------------------------------------------------------------------------------------------------------------------------- NEW JERSEY FUND - --------------- Class A - ------- 2001 $12.96 4.06% $60,321 .96% 4.47% 1.16% 4.27% 37% 2002 13.38 9.72 65,130 .96 4.06 1.16 3.86 51 2003 13.30 4.28 63,407 .96 3.90 1.16 3.70 34 2004 13.12 2.59 63,235 .95 3.95 1.15 3.75 28 2005 12.93 2.39 61,161 .95 3.79 1.16 3.58 40 Class B - ------- 2001 12.93 3.32 4,706 1.71 3.72 1.91 3.52 37 2002 13.34 8.88 6,171 1.71 3.31 1.91 3.11 51 2003 13.27 3.59 7,067 1.71 3.15 1.91 2.95 34 2004 13.09 1.75 6,514 1.70 3.20 1.90 3.00 28 2005 12.91 1.63 5,776 1.70 3.04 1.91 2.83 40 - --------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA FUND - ------------------- Class A - ------- 2001 $12.78 3.94% $13,316 .65% 4.50% 1.20% 3.95% 51% 2002 13.57 10.58 18,479 .75 4.10 1.23 3.62 13 2003 13.63 5.11 19,592 .75 3.94 1.25 3.44 22 2004 13.53 3.18 21,430 .75 3.94 1.20 3.49 59 2005 13.30 2.62 22,561 .75 3.88 1.20 3.43 22 Class B - ------- 2001 12.79 3.15 1,839 1.40 3.75 1.95 3.20 51 2002 13.58 9.78 3,750 1.50 3.35 1.98 2.87 13 2003 13.63 4.30 4,586 1.50 3.19 2.00 2.69 22 2004 13.53 2.45 4,375 1.50 3.19 1.95 2.74 59 2005 13.29 1.82 4,576 1.50 3.13 1.95 2.68 22 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- OHIO FUND - --------- Class A - ------- 2001 $12.46 $.567 $(.067) $ .500 $.575 $.105 $.680 2002 12.28 .534 .768 1.302 .531 .191 .722 2003 12.86 .520 .087 .607 .517 -- .517 2004 12.95 .517 (.187) .330 .510 -- .510 2005 12.77 .510 (.264) .246 .516 -- .516 Class B - ------- 2001 12.47 .477 (.073) .404 .479 .105 .584 2002 12.29 .441 .765 1.206 .435 .191 .626 2003 12.87 .425 .086 .511 .421 -- .421 2004 12.96 .422 (.198) .224 .414 -- .414 2005 12.77 .416 (.256) .160 .420 -- .420 - --------------------------------------------------------------------------------------------------------------------------- OREGON FUND - ----------- Class A - ------- 2001 $12.63 $.573 $(.067) $ .506 $.566 $ -- $.566 2002 12.57 .533 .707 1.240 .540 -- .540 2003 13.27 .524 .078 .602 .522 -- .522 2004 13.35 .513 (.152) .361 .511 -- .511 2005 13.20 .490 (.161) .329 .486 .073 .559 Class B - ------- 2001 12.61 .477 (.057) .420 .470 -- .470 2002 12.56 .434 .700 1.134 .444 -- .444 2003 13.25 .424 .092 .516 .426 -- .426 2004 13.34 .414 (.159) .255 .415 -- .415 2005 13.18 .391 (.168) .223 .390 .073 .463 - --------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA FUND - ----------------- Class A - ------- 2001 $12.97 $.577 $(.002) $ .575 $.591 $.074 $.665 2002 12.88 .547 .810 1.357 .541 .126 .667 2003 13.57 .538 .016 .554 .534 .050 .584 2004 13.54 .527 (.219) .308 .528 -- .528 2005 13.32 .514 (.217) .297 .514 .173 .687 Class B - ------- 2001 12.96 .473 (.004) .469 .495 .074 .569 2002 12.86 .447 .814 1.261 .445 .126 .571 2003 13.55 .435 .024 .459 .429 .050 .479 2004 13.53 .427 (.227) .200 .420 -- .420 2005 13.31 .384 (.216) .168 .375 .173 .548 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- OHIO FUND - --------- Class A - ------- 2001 $12.28 4.05% $19,996 .80% 4.51% 1.18% 4.13% 40% 2002 12.86 10.79 22,751 .75 4.20 1.19 3.76 40 2003 12.95 4.82 23,032 .75 4.02 1.20 3.57 32 2004 12.77 2.63 22,010 .75 4.06 1.19 3.62 24 2005 12.50 1.96 21,696 .75 4.04 1.20 3.59 13 Class B - ------- 2001 12.29 3.26 1,444 1.55 3.76 1.93 3.38 40 2002 12.87 9.95 2,595 1.50 3.45 1.94 3.01 40 2003 12.96 4.04 4,304 1.50 3.27 1.95 2.82 32 2004 12.77 1.78 3,658 1.50 3.31 1.94 2.87 24 2005 12.51 1.27 3,382 1.50 3.29 1.95 2.84 13 - --------------------------------------------------------------------------------------------------------------------------- OREGON FUND - ----------- Class A - ------- 2001 $12.57 4.05% $17,341 .65% 4.50% 1.20% 3.95% 37% 2002 13.27 10.04 22,578 .75 4.12 1.21 3.66 32 2003 13.35 4.63 25,726 .75 3.94 1.22 3.47 4 2004 13.20 2.78 26,631 .75 3.89 1.21 3.43 15 2005 12.97 2.54 29,204 .85 3.72 1.22 3.35 44 Class B - ------- 2001 12.56 3.35 1,584 1.40 3.75 1.95 3.20 37 2002 13.25 9.16 3,155 1.50 3.37 1.96 2.91 32 2003 13.34 3.96 3,040 1.50 3.19 1.97 2.72 4 2004 13.18 1.96 2,695 1.50 3.14 1.96 2.68 15 2005 12.94 1.71 2,537 1.60 2.97 1.97 2.60 44 - --------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA FUND - ----------------- Class A - ------- 2001 $12.88 4.47% $39,649 .86% 4.39% 1.16% 4.09% 35% 2002 13.57 10.72 45,111 .91 4.10 1.16 3.85 23 2003 13.54 4.17 45,155 .90 3.98 1.15 3.73 12 2004 13.32 2.35 45,969 .90 3.95 1.16 3.69 24 2005 12.93 2.27 43,623 .90 3.90 1.18 3.62 37 Class B - ------- 2001 12.86 3.64 2,562 1.61 3.64 1.91 3.34 35 2002 13.55 9.95 3,249 1.66 3.35 1.91 3.10 23 2003 13.53 3.45 3,534 1.65 3.23 1.90 2.98 12 2004 13.31 1.52 3,453 1.65 3.20 1.91 2.94 24 2005 12.93 1.51 3,237 1.65 3.15 1.93 2.87 37 - ---------------------------------------------------------------------------------------------------------------------------
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 Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Year Income Investments Operations Income Gain Distributions - --------------------------------------------------------------------------------------------------------------------------- VIRGINIA FUND - ------------- Class A - ------- 2001 $13.00 $.579 $(.059) $ .520 $.598 $.062 $.660 2002 12.86 .543 .738 1.281 .536 .075 .611 2003 13.53 .550 .063 .613 .540 .083 .623 2004 13.52 .538 (.173) .365 .541 .004 .545 2005 13.34 .505 (.199) .306 .518 .068 .586 Class B - ------- 2001 12.98 .472 (.048) .424 .502 .062 .564 2002 12.84 .439 .726 1.165 .440 .075 .515 2003 13.49 .445 .072 .517 .444 .083 .527 2004 13.48 .436 (.177) .259 .445 .004 .449 2005 13.29 .402 (.191) .211 .413 .068 .481 - --------------------------------------------------------------------------------------------------------------------------- * Calculated without sales charges ** Net of expenses waived by the investment adviser (Note 5) See notes to financial statements. - --------------------------------------------------------------------------------------------------------------------------- R A T I O S / S U P P L E M E N T A L D A T A - ----------------------------------- ------------------------------------------------------------------------------------ Ratio to Average Net Ratio to Average Net Assets Before Expenses Assets** Waived or Assumed Net Asset -------------------- ---------------------- Value, Net Assets Net Net Portfolio End of Total End of Year Investment Investment Turnover Year Return* (in thousands) Expenses Income Expenses Income Rate - --------------------------------------------------------------------------------------------------------------------------- VIRGINIA FUND - ------------- Class A - ------- 2001 $12.86 4.04% $32,580 .80% 4.44% 1.17% 4.07% 36% 2002 13.53 10.14 40,430 .85 4.10 1.17 3.78 43 2003 13.52 4.62 41,758 .91 4.06 1.16 3.81 17 2004 13.34 2.78 35,941 .90 4.02 1.17 3.75 23 2005 13.06 2.33 31,281 .90 3.81 1.20 3.51 23 Class B - ------- 2001 12.84 3.29 1,465 1.55 3.69 1.92 3.32 36 2002 13.49 9.21 2,364 1.60 3.35 1.92 3.03 43 2003 13.48 3.89 2,851 1.66 3.31 1.91 3.06 17 2004 13.29 1.98 2,392 1.65 3.27 1.92 3.00 23 2005 13.02 1.61 1,992 1.65 3.06 1.95 2.76 23 - ---------------------------------------------------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm To the Shareholders and Boards of Directors/Trustees of First Investors Tax-Exempt Money Market Fund, Inc. First Investors Series Fund First Investors Insured Tax Exempt Fund, Inc. Executive Investors Trust First Investors New York Insured Tax Free Fund, Inc. and First Investors Multi-State Insured Tax Free Fund We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of First Investors Tax-Exempt Money Market Fund, Inc., First Investors Insured Intermediate Tax Exempt Fund (a series of First Investors Series Fund), First Investors Insured Tax Exempt Fund, Inc., First Investors Insured Tax Exempt Fund II (a series of Executive Investors Trust), First Investors New York Insured Tax Free Fund, Inc. and the seventeen Funds comprising First Investors Multi-State Insured Tax Free Fund, as of December 31, 2005, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform audits of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the custodian and brokers. Where brokers have not replied to our confirmation requests, we have carried out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of First Investors Tax-Exempt Money Market Fund, Inc., First Investors Insured Intermediate Tax Exempt Fund, First Investors Insured Tax Exempt Fund, Inc., First Investors Insured Tax Exempt Fund II, First Investors New York Insured Tax Free Fund, Inc. and the seventeen Funds comprising First Investors Multi-State Insured Tax Free Fund, as of December 31, 2005, and the results of their operations for the year then ended and changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Tait, Weller & Baker LLP Philadelphia, Pennsylvania February 2, 2006
FIRST INVESTORS TAX EXEMPT FUNDS Directors/Trustees and Officers* Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Year of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ----------- ------------- ------------- ------------- DISINTERESTED DIRECTORS/TRUSTEES Robert M. Grohol 1932 Director/Trustee None/Retired 49 None c/o First Investors since 6/30/00 Management Company, Inc. 95 Wall Street New York, NY 10005 Rex R. Reed 1922 Director/Trustee None/Retired 49 None c/o First Investors since 3/31/84 + Management Company, Inc. 95 Wall Street New York, NY 10005 Herbert Rubinstein 1921 Director/Trustee None/Retired 49 None c/o First Investors since 9/20/79 + Management Company, Inc. 95 Wall Street New York, NY 10005 James M. Srygley 1932 Director/Trustee Owner 49 None c/o First Investors since 1/19/95 Hampton Management Company, Inc. Properties 95 Wall Street New York, NY 10005 Robert F. Wentworth 1929 Director/Trustee None/Retired 49 None c/o First Investors since 10/15/92 Management Company, Inc. 95 Wall Street New York, NY 10005 * Each Director/Trustee serves for an indefinite term with the Funds, until his/her successor is elected. ** Ms. Head is an interested director/trustee because (a) she indirectly owns more than 5% of the voting stock of the adviser and principal underwriter of the Funds, (b) she is an officer, director and employee of the adviser and principal underwriter of the Funds, and (c) she is an officer of the Funds. Mr. Sullivan is an interested director/trustee because he is a director and he indirectly owns securities issued by the adviser and principal underwriter of the Funds. *** Other affiliated companies consist of: First Investors Realty Company, Inc., First Investors Life Insurance Company, First Investors Leverage Corporation, Route 33 Realty Corporation, First Investors Credit Funding Corporation, N.A.K. Realty Corporation, Real Property Development Corporation, First Investors Credit Corporation and First Investors Resources, Inc. + Mr. Reed and Mr. Rubinstein retired effective December 31, 2005. Charles R. Barton, III, Stefan L. Geiringer, and Arthur M. Scutro, Jr., were elected by shareholders as Director/Trustees effective January 1, 2006. Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Year of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ----------- ------------- ------------- ------------- INTERESTED DIRECTORS/TRUSTEES** Kathryn S. Head 1955 Director/Trustee Chairman, President 49 None c/o First Investors since 3/17/94 and Director of Management Company, Inc. First Investors Raritan Plaza I President Consolidated Edison, NJ 08837 since 11/15/01 Corporation; First Investors Chairman Management since 1/1/05 Company, Inc.; Administrative Data Management Corp.; Chairman and Director of First Investors Corporation; First Investors Federal Savings Bank; School Financial Management Services, Inc.; and other affiliated companies*** John T. Sullivan 1932 Director/Trustee Director of 49 None c/o First Investors since 9/20/79 First Investors Management Company, Inc. Corporation, 95 Wall Street First Investors Consolidated Corporation, First Investors Management Company, Inc., Administrative Data Management Corp., and other affiliated companies*** FIRST INVESTORS TAX EXEMPT FUNDS Directors/Trustees and Officers* (continued) Position(s) Held with Principal Number of Other Funds and Occupation(s) Portfolios in Trusteeships Name, Year of Birth Length of During Past Fund Complex Directorships and Address Service 5 Years Overseen Held - ------------------- ----------- ------------- ------------- ------------- OFFICER(S) WHO ARE NOT DIRECTORS/TRUSTEES Joseph I. Benedek 1957 Treasurer Treasurer 49 None c/o First Investors since 1988 and Principal Management Company, Inc. Accounting Officer Raritan Plaza I Edison, NJ 08837 Larry R. Lavoie 1947 Chief Compliance General Counsel 49 None c/o First Investors Officer since of First Investors Management Company, Inc. 8/19/04 Corporation 95 Wall Street and its affiliates New York, NY 10005 Director/Trustee from 9/17/98 to 8/18/04
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 Independent Registered Public Accounting Firm Tait, Weller & Baker LLP 1818 Market Street Philadelphia, PA 19103 Transfer Agent Administrative Data Management Corp. Raritan Plaza I - 8th Floor Edison NJ 08837-3620 Custodian The Bank of New York One Wall Street New York, NY 10286 Legal Counsel Kirkpatrick & Lockhart Nicholson Graham LLP 1601 K Street, N.W. Washington, DC 20006 The Tax-Exempt Money Market 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 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 in writing or by calling 800-423-4026. A description of the policies and procedures that the Funds use to vote proxies relating to a portfolio's securities is available, without charge, upon request by calling toll free 800-423-4026 or can be viewed online or downloaded from the EDGAR database on the Securities and Exchange Commission's ("SEC") internet website at http://www.sec.gov. In addition, information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available, without charge, upon request in writing or by calling 800-423-4026 and on the SEC's internet website at http://www.sec.gov. The Funds file their complete schedule of portfolio holdings with the SEC on Form N-Q for the first and third quarters of each fiscal year. The Funds' Form N-Q is available on the SEC's website at http://www.sec.gov; and may also be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. The schedule of portfolio holdings is also available, without charge, upon request in writing or by calling 800-423-4026. NOTES Item 2. Code of Ethics As of December 31, 2005, the Registrant has adopted a code of ethics that applies to the Registrant's President/Principal Executive Officer and Treasurer/Principal Financial Officer. For the year ended December 31, 2005, there were no amendments to any provision of its code of ethics, nor were there any waivers granted from a provision of the code of ethics. A copy of the Registrant's code of ethics is filed under Item 12(a)(1). Item 3. Audit Committee Financial Expert The Registrant's Board has determined that it has at least one "audit committee financial expert" serving on its audit committee. Robert F. Wentworth is the "audit committee financial expert" and is considered to be "independent" as defined in Item 3 of Form N-CSR. Item 4. Principal Accountant Fees and Services Fiscal Year Ended December 31, ----------------- 2005 2004 ---- ---- (a) Audit Fees First Investors Tax-Exempt Money Market Fund, Inc. $ 13,000 $12,400 Series Fund 7,700 7,400 Insured Tax Exempt Fund, Inc. 39,500 37,900 Executive Investors Trust 12,500 11,900 Multi-State Insured Tax Free Fund 103,200 99,000 New York Tax Free Fund, Inc. 19,200 18,400 (b) Audit-Related Fees First Investors Tax-Exempt Money Market Fund, Inc. $ 0 $ 0 Series Fund 0 0 Insured Tax Exempt Fund, Inc. 0 0 Executive Investors Trust 0 0 Multi-State Insured Tax Free Fund 0 0 New York Tax Free Fund, Inc. 0 0 (c) Tax Fees First Investors Tax-Exempt Money Market Fund, Inc. $ 2,600 $ 2,500 Series Fund 3,600 3,500 Insured Tax Exempt Fund, Inc. 3,600 3,500 Executive Investors Trust 3,600 3,500 Multi-State Insured Tax Free Fund 52,700 51,000 New York Tax Free Fund, Inc. 3,600 3,500 Nature of fees: tax returns preparation and tax compliance (d) All Other Fees First Investors Tax-Exempt Money Market Fund, Inc. $ 0 $ 0 Series Fund 0 0 Insured Tax Exempt Fund, Inc. 0 0 Executive Investors Trust (Insured Tax 0 0 Multi-State Insured Tax Free Fund 0 0 New York Tax Free Fund, Inc. 0 0 (e)(1) Audit committee's pre-approval policies The Charter of the Audit Committee requires the Audit Committee: (a) to pre-approve, and to recommend to the full Board, the selection, retention or termination of the independent auditors to provide audit, review or attest services to the Funds and, in connection therewith, evaluate the independence of the auditors and to obtain the auditors' specific representations as to their independence; (b) to pre-approve all non-audit services to be provided to the Funds by the independent auditor; (c) to pre-approve all non-audit services to be provided by the Funds' independent auditor to the Funds' investment adviser or to any entity that controls, is controlled by or is under common control with the Funds' investment adviser ("adviser affiliate") and that provides ongoing services to the Funds, if the engagement relates directly to the operations and financial reporting of the Funds; (d) to establish, if deemed necessary or appropriate as an alternative to Audit Committee pre-approval of services to be provided by the independent auditor as required by paragraphs (b) and (c) above, policies and procedures to permit such services to be pre-approved by other means, such as by action of a designated member and members of the Audit Committee, subject to subsequent Committee review and oversight; (e) to consider whether the non-audit services provided by the Funds' independent auditors to the Funds' investment adviser or any adviser affiliate that provides ongoing services to the Funds, which services were not pre-approved by the Audit Committee, are compatible with maintaining the auditors' independence; (f) to review and approve the fees proposed to be charged to the Funds by the auditors for each audit and non-audit service; (e)(2) None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Registrant and Related Entities disclosed above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit review or attest services, if certain conditions are satisfied). (f) Not Applicable (g) Aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Registrant and the Registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant for the two fiscal years ended December 31, 2005 and 2004 were $68,000 and $66,500, respectively. (h) Not Applicable Item 5. Audit Committee of Listed Registrants Not applicable Item 6. Schedule of Investments Schedule is included as part of the report to stockholders filed under Item 1 of this Form. Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End Management Investment Companies Not applicable Item 8. Portfolio Managers of Closed-End Management Investment Companies Not applicalbe Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers Not applicable Item 10. Submission of Matters to a Vote of Security Holders There were no material changes to the procedure by which shareholders may recommend nominees to the Registrant's Board of Directors/Trustees. Item 11. Controls and Procedures (a) The Registrant's Principal Executive Officer and Principal Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of the filing date of this report. (b) There were no changes in the Registrant's internal controls over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. Item 12. Exhibits (a)(1) Code of Ethics - Filed herewith (a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Filed herewith (b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First Investors Tax-Exempt Money Market Fund, Inc. First Investors Series Fund First Investors Insured Tax Exempt Fund, Inc. Executive Investors Trust First Investors Multi-State Insured Tax Free Fund First Investors New York Insured Tax Free Fund, Inc. (Registrant) By /S/ KATHRYN S. HEAD Kathryn S. Head President and Principal Executive Officer Date: March 10, 2006 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 Tax-Exempt Money Market Fund, Inc. First Investors Series Fund First Investors Insured Tax Exempt Fund, Inc. Executive Investors Trust First Investors Multi-State Insured Tax Free Fund First Investors New York Insured Tax Free Fund, Inc. (Registrant) By /S/ JOSEPH I. BENEDEK Joseph I. Benedek Treasurer and Principal Financial Officer Date: March 10, 2006 EX-99.CODE ETH 2 codeofethics.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 tax302.txt CERTIFICATIONS SECTION 302 CERTIFICATIONS I, Kathryn S. Head, certify that: 1. I have reviewed this report on Form N-CSR of First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, 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: March 10, 2006 CERTIFICATIONS I, Joseph I. Benedek, certify that: 1. I have reviewed this report on Form N-CSR of First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, 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: March 10, 2006 EX-99.906 CERT 4 tax906.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 Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, 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 First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, Inc. for the year ended December 31, 2005, 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: March 10, 2006 /S/ KATHRYN S. HEAD Kathryn S. Head President and Principal Executive Officer, First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund First Investors New York Insured Tax Free Fund, Inc. A signed original of this written statement required by Section 906 has been provided to First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, Inc. and will be retained by First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi- State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, 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 the First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors Insured Tax Free Fund, 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 First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, Inc. for the year ended December 31, 2005, 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: March 10, 2006 /S/ JOSEPH I. BENEDEK Joseph I. Benedek Treasurer and Principal Financial Officer, First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund First Investors New York Insured Tax Free Fund, Inc. A signed original of this written statement required by Section 906 has been provided to First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi-State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, Inc. and will be retained by First Investors Tax-Exempt Money Market Fund, Inc., First Investors Series Fund, First Investors Insured Tax Exempt Fund, Inc., Executive Investors Trust, First Investors Multi- State Insured Tax Free Fund and First Investors New York Insured Tax Free Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----