N-CSRS 1 equity033105.txt FIRST INVESTORS EQUITY 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 811-5690; 811-6618; 811-3169 FIRST INVESTORS SERIES FUND FIRST INVESTORS SERIES FUND II, INC. FIRST INVESTORS GLOBAL 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 8th Floor Edison, NJ 08837-3620 1-732-855-2712 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-212-858-8000 DATE OF FISCAL YEAR END: SEPTEMBER 30, 2005 DATE OF REPORTING PERIOD: MARCH 31, 2005 Item 1. Reports to Stockholders The Semi-Annual Report to Stockholders follows [First Investors Logo] EQUITY FUNDS TOTAL RETURN VALUE BLUE CHIP GROWTH & INCOME ALL-CAP GROWTH MID-CAP OPPORTUNITY SPECIAL SITUATIONS FOCUSED EQUITY GLOBAL SEMI-ANNUAL REPORT March 31, 2005 Equity Market Overview FIRST INVESTORS EQUITY FUNDS Dear Investor: The U.S. economy decelerated during the reporting period, primarily in response to higher oil prices. Following a third quarter 2004 gain of 4%, economic growth decelerated to 3.8% in the fourth quarter and 3.1% in the first quarter of 2005. Nonetheless, the unemployment rate continued to decline from 5.4% to 5.2% as the economy -- in its fourth year of expansion -- added over one million new jobs. Inflation moved higher during the reporting period, although from a low base. The consumer price index showed a year-over-year gain of 3.1% through March, up from 2.5% six months earlier. Excluding the volatile food and energy components, consumer prices rose a milder 2.3% for the twelve months ending in March. Concern about potential inflation, as well as the belief that monetary policy remained accommodative, kept the Federal Reserve ("the Fed") on a steady course of tighter monetary policy. Specifically, the Fed raised the benchmark federal funds rate four times during the reporting period, from 1.75% to 2.75%. As well, the Fed indicated that it would continue to raise rates at a measured pace. During the last three months of 2004, stocks rallied broadly, as the economy was firing on all cylinders, concerns over Iraq and terrorism lessened, the U.S. Presidential election concluded and consumer and corporate confidence advanced. Stocks were up convincingly during this period, with the S&P 500 up 9.2% and the Dow Jones Industrials Average up 7.6%. The smaller cap indices also posted strong results, as the Russell 2000 Index gained 13.7% during this time period. This was achieved despite troubling issues on the horizon, such as increased inflationary pressures due to surging energy costs and a weakening U.S. dollar. The strong momentum from 2004's strong rally did not carry into 2005, however, as investors became more defensively positioned amidst increased volatility. As the Fed continued its interest rate hikes due to concerns that inflationary pressures had accelerated, investors grew more concerned over the sustainability of the economy's strength. Worries over the rate of future corporate profits growth also weighed on the markets. The broad market averages were lackluster, with both the S&P 500 and Dow Jones Industrials off 2.6% each. The more speculative Nasdaq-OTC Composite was down 8.1%. Small cap stocks underperformed their larger counterparts during the first part of 2005, with the Russell 2000 down 5.6%. Overall, the period's returns were slightly positive, even as the economy faced challenging headwinds. Equity Market Overview (continued) FIRST INVESTORS EQUITY FUNDS Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs. Sincerely, /s/ EDWIN D. MISKA Edwin D. Miska Director of Equities First Investors Management Company, Inc. May 2, 2005 This Market Overview is not part of the Funds' financial report and is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus. The Market Overview reflects conditions through the end of the period as stated on the cover. Market conditions are subject to change. This Market Overview may not be relied on as investment advice or an indication of current or future trading intent on behalf of any Fund. There are a variety of risks associated with investing in mutual funds. For stock funds, the risks include market risk (the risk that the entire stock market will decline because of an event such as a deterioration in the economy or a rise in interest rates), as well as special risks associated with investing in certain types of stock funds, such as small-cap, global and international funds. For bond funds, the risks include interest rate risk and credit risk. Interest rate risk is the risk that bonds will decrease in value as interest rates rise. As a general matter, longer-term bonds fluctuate more than shorter-term bonds in reaction to changes in interest rates. Credit risk is the risk that bonds will decline in value as the result of a decline in the credit rating of the bonds or the economy as a whole, or that the issuer will be unable to pay interest and/or principal when due. You should consult your prospectus for a precise explanation of the risks associated with your fund. Understanding Your Fund's Expenses FIRST INVESTORS EQUITY FUNDS As a mutual fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (on Class A shares only), contingent deferred sales charges on redemptions (on Class B shares only); and (2) ongoing costs, including advisory fees; distribution and service fees (12b-1); and other expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 in each Fund at the beginning of the period, October 1, 2004, and held for the entire six-month period ended March 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 Expense 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 during 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 Expense Example: The amounts in the table 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 transactional 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 transactional costs were included, your costs would have been higher. Fund Expenses FIRST INVESTORS TOTAL RETURN FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,051.95 $7.06 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.05 $6.94 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,048.38 $10.62 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.56 $10.45 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.38% for Class A shares and 2.08% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN SECTORS (BAR CHART: Top Ten Sectors) Financials 20.5% Consumer Discretionary 11.9% Industrials 9.9% Health Care 9.2% Mortgage-Backed Certificates 9.1% Information Technology 9.1% Consumer Staples 8.7% Materials 5.3% Energy 5.1% Municipals 2.8% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS TOTAL RETURN FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--64.9% Consumer Discretionary--10.6% 64,800 Blockbuster, Inc. - Class "A" $572,184 $19 70,500 Claire's Stores, Inc. 1,624,320 55 15,400 Clear Channel Communications, Inc. 530,838 18 58,400 * Cost Plus, Inc. 1,569,792 53 57,700 Domino's Pizza, Inc. 1,078,413 37 34,400 * GameStop Corporation - Class "A" 762,304 26 15,500 Genuine Parts Company 674,095 23 21,500 Harley-Davidson, Inc. 1,241,840 42 70,700 * Hollywood Entertainment Corporation 931,119 32 30,500 Home Depot, Inc. 1,166,320 40 23,800 J.C. Penney Company, Inc. (Holding Co.) 1,235,696 42 30,800 Kenneth Cole Productions, Inc. - Class "A" 897,512 30 20,900 Lear Corporation 927,124 31 46,100 Leggett & Platt, Inc. 1,331,368 45 64,900 McDonald's Corporation 2,020,986 69 51,300 Movado Group, Inc. 949,050 32 27,500 Neiman Marcus Group, Inc. - Class "A" 2,516,525 85 3,000 Neiman Marcus Group, Inc. - Class "B " 270,750 9 29,000 * Netflix, Inc. 314,650 11 93,300 * Office Depot, Inc. 2,069,394 70 58,300 Orient-Express Hotels, Ltd. 1,521,630 52 21,600 Oxford Industries, Inc. 790,344 27 36,500 Polo Ralph Lauren Corporation - Class "A" 1,416,200 48 28,500 RadioShack Corporation 698,250 24 16,100 Ross Stores, Inc. 469,154 16 19,900 Sherwin-Williams Company 875,401 30 43,500 * Steiner Leisure Ltd. 1,422,015 48 37,800 Viacom, Inc. - Class "B" 1,316,574 45 ---------------------------------------------------------------------------------------------------------------------- 31,193,848 1,059 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--5.3% 30,700 Altria Group, Inc. 2,007,473 68 13,500 Bunge, Ltd. 727,380 25 15,300 Coca-Cola Company 637,551 21 77,000 * Herbalife, Ltd. 1,173,480 40 35,000 Hormel Foods Corporation 1,088,850 37 19,300 Kimberly-Clark Corporation 1,268,589 43 134,700 Nu Skin Enterprises, Inc. - Class "A" 3,032,097 103 15,300 PepsiCo, Inc. 811,359 27 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS TOTAL RETURN FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 23,100 Procter & Gamble Company $1,224,300 $41 34,900 * Smithfield Foods, Inc. 1,101,095 37 25,235 Tootsie Roll Industries, Inc. 757,050 26 23,400 Wal-Mart Stores, Inc. 1,172,574 40 23,300 WD-40 Company 757,017 26 ---------------------------------------------------------------------------------------------------------------------- 15,758,815 534 ---------------------------------------------------------------------------------------------------------------------- Energy--5.1% 19,700 Anadarko Petroleum Corporation 1,499,170 51 76,600 Chesapeake Energy Corporation 1,680,604 57 12,000 ConocoPhillips 1,294,080 44 35,500 ExxonMobil Corporation 2,115,800 72 24,200 Noble Corporation 1,360,282 46 46,000 Suncor Energy, Inc. 1,849,660 63 30,300 * Swift Energy Company 861,732 29 36,300 * Transocean, Inc. 1,867,998 63 15,900 Unocal Corporation 980,871 33 43,866 XTO Energy, Inc. 1,440,559 49 ---------------------------------------------------------------------------------------------------------------------- 14,950,756 507 ---------------------------------------------------------------------------------------------------------------------- Financials--14.1% 15,700 American Express Company 806,509 27 24,600 American International Group, Inc. 1,363,086 46 61,006 Bank of America Corporation 2,690,365 91 10,800 Bear Stearns Companies, Inc. 1,078,920 37 45,900 Citigroup, Inc. 2,062,746 70 62,300 Colonial BancGroup, Inc. 1,278,396 43 30,500 Comerica, Inc. 1,679,940 57 65,200 Doral Financial Corporation 1,427,228 48 39,300 Endurance Specialty Holdings, Ltd. 1,487,112 50 15,600 Fannie Mae 849,420 29 36,500 Independence Community Bank Corporation 1,423,500 48 47,400 JPMorgan Chase & Company 1,640,040 56 17,400 Lehman Brothers Holdings, Inc. 1,638,384 56 52,200 MBNA Corporation 1,281,510 43 32,100 Merrill Lynch & Company, Inc. 1,816,860 62 59,800 Montpelier Re Holdings, Ltd. 2,101,970 71 27,500 Morgan Stanley 1,574,375 53 27,700 National City Corporation 927,950 32 55,500 New York Community Bancorp, Inc. 1,007,880 34 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Financials (continued) 69,000 NewAlliance Bancshares, Inc. $966,000 $33 69,032 North Fork Bancorporation, Inc. 1,914,948 65 23,000 Plum Creek Timber Company, Inc. (REIT) 821,100 28 32,500 Safeco Corporation 1,583,075 54 15,400 South Financial Group, Inc. 470,316 16 61,800 Sovereign Bancorp, Inc. 1,369,488 47 52,100 U.S. Bancorp 1,501,522 51 20,300 U.S.B. Holding Co., Inc. 450,457 15 30,900 Wachovia Corporation 1,573,119 53 38,500 Washington Mutual, Inc. 1,520,750 52 21,500 Wells Fargo & Company 1,285,700 44 ---------------------------------------------------------------------------------------------------------------------- 41,592,666 1,411 ---------------------------------------------------------------------------------------------------------------------- Health Care--8.4% 49,400 Abbott Laboratories 2,303,028 78 18,200 Aetna, Inc. 1,364,090 46 14,200 * Amgen, Inc. 826,582 28 95,100 * Boston Scientific Corporation 2,785,479 95 9,000 Eli Lilly & Company 468,900 16 20,200 * Forest Laboratories, Inc. 746,390 25 6,000 * Genentech, Inc. 339,660 12 20,800 Guidant Corporation 1,537,120 52 30,800 Johnson & Johnson 2,068,528 70 16,000 * Laboratory Corporation of America Holdings 771,200 26 15,100 Medtronic, Inc. 769,345 26 24,700 Merck & Company, Inc. 799,539 27 100,280 Pfizer, Inc. 2,634,356 89 44,900 * Priority Healthcare Corporation 971,187 33 36,600 * Thermo Electron Corporation 925,614 32 29,000 * Waters Corporation 1,037,910 35 23,000 * Wellpoint, Inc. 2,883,050 98 36,800 Wyeth 1,552,224 53 ---------------------------------------------------------------------------------------------------------------------- 24,784,202 841 ---------------------------------------------------------------------------------------------------------------------- Industrials--7.4% 15,900 3M Company 1,362,471 46 63,100 * AGCO Corporation 1,151,575 39 15,600 Alexander & Baldwin, Inc. 642,720 22 29,700 Briggs & Stratton Corporation 1,081,377 37 9,300 Caterpillar, Inc. 850,392 29 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS TOTAL RETURN FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Industrials (continued) 30,600 Cendant Corporation $628,524 $21 30,600 Chicago Bridge & Iron Company NV - NY Shares 1,347,318 46 11,100 Eaton Corporation 725,940 25 15,300 Engineered Support Systems, Inc. 818,856 28 14,400 * Gardner Denver, Inc. 568,944 19 15,300 Harsco Corporation 912,033 31 42,600 Honeywell International, Inc. 1,585,146 54 16,200 Knoll, Inc. 270,216 9 18,300 Lockheed Martin Corporation 1,117,398 38 42,800 Masco Corporation 1,483,876 50 27,600 Northrop Grumman Corporation 1,489,848 51 61,300 * Pinnacle Airlines Corporation 651,006 22 18,500 Pitney Bowes, Inc. 834,720 28 15,400 Rockwell Automation, Inc. 872,256 30 41,600 SPX Corporation 1,800,448 61 15,300 United Technologies Corporation 1,555,398 53 ---------------------------------------------------------------------------------------------------------------------- 21,750,462 739 ---------------------------------------------------------------------------------------------------------------------- Information Technology--8.6% 30,800 Amphenol Corporation - Class "A" 1,140,832 39 4,400 Analog Devices, Inc. 159,016 5 61,100 * Cisco Systems, Inc. 1,093,079 37 42,900 * Electronics for Imaging, Inc. 765,336 26 107,300 * EMC Corporation 1,321,936 45 170,200 * Entrust, Inc. 638,250 22 500 * Fastclick, Inc. 6,000 -- 43,076 First Data Corporation 1,693,318 57 61,800 Hewlett-Packard Company 1,355,892 46 53,700 Intel Corporation 1,247,451 42 24,900 Intersil Corporation - Class "A" 431,268 15 15,300 * Intuit, Inc. 669,681 23 40,800 * Lexar Media, Inc. 203,184 7 50,500 * McAfee, Inc. 1,139,280 39 107,600 Microsoft Corporation 2,600,692 88 92,600 Nokia Corporation - Class "A" (ADR) 1,428,818 49 40,300 * palmOne, Inc. 1,022,814 35 59,800 * Paxar Corporation 1,276,132 43 49,400 QUALCOMM, Inc. 1,810,510 61 49,500 * SanDisk Corporation 1,376,100 47 19,800 StarTek, Inc. 332,640 11 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 56,985 * Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) $483,233 $16 29,300 * Tech Data Corporation 1,085,858 37 73,100 * VERITAS Software Corporation 1,697,382 58 10,800 Xilinx, Inc. 315,684 11 ---------------------------------------------------------------------------------------------------------------------- 25,294,386 859 ---------------------------------------------------------------------------------------------------------------------- Materials--3.5% 30,800 Calgon Carbon Corporation 263,032 9 20,000 Dow Chemical Company 997,000 34 18,900 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 748,629 25 38,500 Georgia-Pacific Corporation 1,366,365 46 38,200 Lubrizol Corporation 1,552,448 53 43,300 MeadWestvaco Corporation 1,377,806 47 560 Neenah Paper, Inc. 18,827 1 13,800 PPG Industries, Inc. 986,975 33 18,500 Praxair, Inc. 885,410 30 63,800 RPM International, Inc. 1,166,264 39 15,900 Weyerhaeuser Company 1,089,150 37 ---------------------------------------------------------------------------------------------------------------------- 10,451,906 354 ---------------------------------------------------------------------------------------------------------------------- Other--.6% 23,700 Nasdaq - 100 Index Tracking Stock 866,235 30 7,800 SPDR Trust Series "1" 920,400 31 ---------------------------------------------------------------------------------------------------------------------- 1,786,635 61 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--.6% 42,800 SBC Communications, Inc. 1,013,932 35 23,100 Verizon Communications, Inc. 820,050 28 ---------------------------------------------------------------------------------------------------------------------- 1,833,982 63 ---------------------------------------------------------------------------------------------------------------------- Utilities--.7% 35,300 Atmos Energy Corporation 953,100 32 23,000 Consolidated Edison, Inc. 970,140 33 ---------------------------------------------------------------------------------------------------------------------- 1,923,240 65 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $158,098,847) 191,320,898 6,493 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS TOTAL RETURN FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--16.2% Aerospace/Defense--.2% $500M Precision Castparts Corp., 5.6%, 2013 $503,202 $17 ---------------------------------------------------------------------------------------------------------------------- Automotive--.3% DaimlerChrysler NA Holdings Corp.: 350M 8%, 2010 389,537 13 350M 6.5%, 2013 364,590 13 ---------------------------------------------------------------------------------------------------------------------- 754,127 26 ---------------------------------------------------------------------------------------------------------------------- Chemicals--.1% 198M Rohm & Haas Co., 7.4%, 2009 219,652 7 ---------------------------------------------------------------------------------------------------------------------- Consumer Non-Durables--.3% 900M Clorox Co., 6.125%, 2011 962,996 33 ---------------------------------------------------------------------------------------------------------------------- Financial--2.0% CIT Group, Inc.: 500M 4.75%, 2010 496,268 17 750M 7.75%, 2012 868,695 30 1,250M ERAC USA Finance Enterprise Co., 7.35%, 2008+ 1,350,434 46 400M Ford Motor Credit Co., 7.75%, 2007 414,350 14 General Motors Acceptance Corp.: 500M 6.125%, 2006 497,864 17 650M 7.75%, 2010 624,933 21 750M Household Finance Corp., 6.5%, 2008 795,581 27 885M SLM Corp., 5%, 2015 860,745 29 ---------------------------------------------------------------------------------------------------------------------- 5,908,870 201 ---------------------------------------------------------------------------------------------------------------------- Financial Services--1.8% Bank of America Corp.: 500M 6.5%, 2011 534,259 18 500M 7.4%, 2011 564,343 19 638M Bank United Corp., 8%, 2009 712,853 24 1,000M Lincoln National Corp., 6.5%, 2008 1,062,853 36 725M Manufacturers & Traders Trust Co., 8%, 2010 838,208 28 853M National City Bank of Kentucky, 6.3%, 2011 920,711 31 737M Washington Mutual, Inc., 8.25%, 2010 836,902 29 ---------------------------------------------------------------------------------------------------------------------- 5,470,129 185 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Food/Beverage/Tobacco--1.1% $950M Bottling Group, LLC, Series "B", 4.625%, 2012 $934,605 $32 1,000M Coca-Cola Co., 5.75%, 2011 1,051,662 36 1,030M Coca-Cola Enterprises, Inc., 7.125%, 2009 1,131,491 38 ---------------------------------------------------------------------------------------------------------------------- 3,117,758 106 ---------------------------------------------------------------------------------------------------------------------- Food/Drug--.9% 600M Delhaize America, Inc., 8.125%, 2011 669,913 23 1,000M Kroger Co., 7.8%, 2007 1,071,150 36 996M Safeway, Inc., 7%, 2007 1,047,654 35 ---------------------------------------------------------------------------------------------------------------------- 2,788,717 94 ---------------------------------------------------------------------------------------------------------------------- Forest Products/Containers--.7% 1,100M International Paper Co., 6.75%, 2011 1,207,581 41 700M Weyerhaeuser Co., 6.75%, 2012 769,910 26 ---------------------------------------------------------------------------------------------------------------------- 1,977,491 67 ---------------------------------------------------------------------------------------------------------------------- Gaming/Leisure--.3% 750M MGM Mirage, Inc., 8.5%, 2010 825,000 28 ---------------------------------------------------------------------------------------------------------------------- Health Care--.6% 1,000M HCA, Inc., 5.25%, 2008 1,003,950 34 800M Wyeth, 6.95%, 2011 878,399 30 ---------------------------------------------------------------------------------------------------------------------- 1,882,349 64 ---------------------------------------------------------------------------------------------------------------------- Information Technology--.5% 1,455M International Business Machines Corp., 5.4%, 2009 1,505,670 51 ---------------------------------------------------------------------------------------------------------------------- Manufacturing--.6% 700M Newell Rubbermaid, Inc., 6.75%, 2012 769,069 26 900M United Technologies Corp., 7.125%, 2010 1,007,078 34 ---------------------------------------------------------------------------------------------------------------------- 1,776,147 60 ---------------------------------------------------------------------------------------------------------------------- Media - Broadcasting--.6% Comcast Cable Communications, Inc.: 705M 8.375%, 2007 759,772 26 500M 7.125%, 2013 557,117 19 500M Cox Communications, Inc., 5.5%, 2015 484,708 16 ---------------------------------------------------------------------------------------------------------------------- 1,801,597 61 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS TOTAL RETURN FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Media-Diversified--.7% $750M AOL Time Warner, Inc., 6.75%, 2011 $811,454 $27 500M Cox Enterprises, Inc., 8%, 2007+ 527,241 18 705M Viacom, Inc., 8.625%, 2012 842,698 29 ---------------------------------------------------------------------------------------------------------------------- 2,181,393 74 ---------------------------------------------------------------------------------------------------------------------- Metals/Mining--.4% 500M Alcoa, Inc., 6%, 2012 533,774 18 500M Thiokol Corp., 6.625%, 2008 529,004 18 ---------------------------------------------------------------------------------------------------------------------- 1,062,778 36 ---------------------------------------------------------------------------------------------------------------------- Real Estate Investment Trusts--1.4% 910M AvalonBay Communities, Inc., 6.875%, 2007 961,233 33 750M Boston Properties, Inc., 5%, 2015 723,975 25 700M EOP Operating LP, 8.1%, 2010 795,964 27 700M Mack-Cali Realty LP, 7.75%, 2011 792,292 27 800M Simon Property Group LP, 7.375%, 2018 896,920 30 ---------------------------------------------------------------------------------------------------------------------- 4,170,384 142 ---------------------------------------------------------------------------------------------------------------------- Retail-General Merchandise--.4% 500M Federated Department Stores, Inc., 7.45%, 2017 570,496 20 600M Target Corp., 7.5%, 2010 680,310 23 ---------------------------------------------------------------------------------------------------------------------- 1,250,806 43 ---------------------------------------------------------------------------------------------------------------------- Telecommunications--.4% 600M New York Telephone Co., 6.125%, 2010 624,416 21 600M SBC Communications, Inc., 6.25%, 2011 637,472 22 ---------------------------------------------------------------------------------------------------------------------- 1,261,888 43 ---------------------------------------------------------------------------------------------------------------------- Transportation--1.0% Burlington Northern Santa Fe Corp.: 1,000M 7.875%, 2007 1,066,448 36 250M 6.75%, 2011 274,738 9 400M Canadian National Railway Co., 6.45%, 2006 411,277 14 1,000M Union Pacific Corp., 7.375%, 2009 1,096,849 37 ---------------------------------------------------------------------------------------------------------------------- 2,849,312 96 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Utilities--1.5% $750M Consumers Energy Co., 6.375%, 2008 $783,668 $27 800M DPL, Inc., 6.875%, 2011 853,975 29 750M Duke Capital Corp., 8%, 2019 891,790 30 750M NiSource Finance Corp., 7.875%, 2010 856,268 29 900M PP&L Capital Funding, Inc., 8.375%, 2007 971,605 33 ---------------------------------------------------------------------------------------------------------------------- 4,357,306 148 ---------------------------------------------------------------------------------------------------------------------- Waste Management--.4% 1,000M Waste Management, Inc., 6.875%, 2009 1,077,097 37 ---------------------------------------------------------------------------------------------------------------------- Total Value of Corporate Bonds (cost $46,626,144) 47,704,669 1,619 ---------------------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED CERTIFICATES--9.0% Fannie Mae--3.9% 6,490M 5.5%, 4/1/33 - 10/1/33 6,515,283 221 1,577M 6.5%, 11/1/33 1,644,867 56 3,132M 7%, 3/1/32 - 8/1/32 3,337,077 113 ---------------------------------------------------------------------------------------------------------------------- 11,497,227 390 ---------------------------------------------------------------------------------------------------------------------- Freddie Mac--3.2% 7,158M 5.5%, 7/1/33 - 2/1/35 7,185,779 244 767M 6%, 9/1/32 786,207 27 1,461M 6.5%, 1/1/34 1,517,210 51 ---------------------------------------------------------------------------------------------------------------------- 9,489,196 322 ---------------------------------------------------------------------------------------------------------------------- Government National Mortgage Association--1.9% 1,491M 5%, 11/15/34 1,472,983 50 3,014M 5.5%, 4/15/33 - 8/15/33 3,055,648 104 497M 6%, 9/15/34 511,025 17 418M 6.5%, 7/15/28 437,690 15 165M 7%, 8/15/32 174,711 6 ---------------------------------------------------------------------------------------------------------------------- 5,652,057 192 ---------------------------------------------------------------------------------------------------------------------- Total Value of Mortgage-Backed Certificates (cost $26,684,632) 26,638,480 904 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS TOTAL RETURN FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Principal Invested Amount For Each Shares or $10,000 of Warrants Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS--2.8% $2,000M Jefferson Cnty., AL, Ltd. Oblig. Rev. Bonds, 5%, 2024 $2,035,000 $69 4,500M Massachusetts Bay Trans. Auth. Sales Tax Rev. Bonds, 5%, 2035 4,595,625 156 1,500M Tobacco Settlement Financing Corp., NJ Rev. Bonds, 6.75%, 2039 1,576,875 54 ---------------------------------------------------------------------------------------------------------------------- Total Value of Municipal Bonds (cost $8,076,074) 8,207,500 279 ---------------------------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS--1.6% Financials--1.1% Chubb Corporation: 27,800 7%, 2005 - Series "A" 838,170 28 15,400 7%, 2006 - Series "B" 463,925 16 29,800 Hartford Financial Services Group, Inc., 6%, 2006 - Class "A" 1,884,850 64 ---------------------------------------------------------------------------------------------------------------------- 3,186,945 108 ---------------------------------------------------------------------------------------------------------------------- Health Care--.1% 5,800 Baxter International, Inc., 7%, 2006 313,200 10 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--.4% 24,200 ALLTEL Corporation, 7.75%, 2005 1,228,150 42 ---------------------------------------------------------------------------------------------------------------------- Total Value of Convertible Preferred Stock (cost $4,045,842) 4,728,295 160 ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--1.6% $4,650M Federal Farm Credit Bank, 4.94%, 2012 (cost $4,651,751) 4,609,712 156 ---------------------------------------------------------------------------------------------------------------------- PASS THROUGH CERTIFICATES--.4% Transportation 752M Continental Airlines, Inc., 8.388%, 2020 624,287 21 604M NWA Trust, 10.23%, 2012 534,377 18 ---------------------------------------------------------------------------------------------------------------------- Total Value of Pass Through Certificates (cost $1,399,451) 1,158,664 39 ---------------------------------------------------------------------------------------------------------------------- WARRANTS--.0% Information Technology 3,736 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 2,503 -- ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--2.8% Colgate-Palmolive Co.: $1,700M 2.64%, 4/5/05++ $1,699,500 $58 1,500M 2.74%, 4/14/05++ 1,498,515 51 3,600M New York Times Co., 2.74%, 4/4/05 3,599,177 122 1,400M Paccar Financial Corp., 2.7%, 4/14/05 1,398,634 47 ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $8,195,826) 8,195,826 278 ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--.4% 1,200M Tennessee Valley Authority, 2.67%, 4/28/05 (cost $1,197,597) 1,197,597 41 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $258,976,164) 99.7% 293,764,144 9,969 Other Assets, Less Liabilities .3 914,869 31 ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $294,679,013 $10,000 ====================================================================================================================== * Non-income producing + Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 6) ++ Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 6) Summary of Abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements
Fund Expenses FIRST INVESTORS VALUE FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,091.46 $7.40 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.85 $7.14 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,085.87 $11.02 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.36 $10.65 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.42% for Class A shares and 2.12% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition TOP TEN SECTORS (BAR CHART: Top Ten Sectors) Financials 25.8% Consumer Discretionary 15.3% Energy 10.1% Industrials 8.2% Consumer Staples 7.8% Materials 7.2% Health Care 5.8% Utilities 5.3% Information Technology 4.8% Telecommunication Services 4.2% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS VALUE FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--88.3% Consumer Discretionary--14.7% 81,800 Bob Evans Farms,Inc. $1,918,210 $74 60,500 Clear Channel Communications, Inc. 2,085,435 81 47,300 Genuine Parts Company 2,057,077 80 97,100 Hancock Fabrics, Inc. 722,424 28 41,600 Home Depot, Inc. 1,590,784 62 51,300 J.C. Penney Company, Inc. (Holding Co.) 2,663,496 103 39,600 Jones Apparel Group, Inc. 1,326,204 51 24,500 Kenneth Cole Productions, Inc. - Class "A" 713,930 28 70,974 Kimball International, Inc. - Class "B" 1,029,123 40 36,100 Lee Enterprises, Inc. 1,566,740 61 63,700 Leggett & Platt, Inc. 1,839,656 71 19,800 Liberty Corporation 802,890 31 14,200 Magna International, Inc. - Class "A" 949,980 37 44,600 May Department Stores Company 1,651,092 64 102,800 McDonald's Corporation 3,201,192 124 95,700 Natuzzi SpA (ADR) 994,323 39 53,000 New York Times Company - Class "A" 1,938,740 75 35,300 Newell Rubbermaid, Inc. 774,482 30 36,000 OshKosh B'Gosh, Inc. - Class "A" 1,098,000 43 28,200 Outback Steakhouse, Inc. 1,291,278 50 162,900 Pearson PLC (ADR) 1,997,154 77 55,100 Talbots, Inc. 1,762,098 68 29,900 Tupperware Corporation 608,764 24 110,800 Walt Disney Company 3,183,284 124 ---------------------------------------------------------------------------------------------------------------------- 37,766,356 1,465 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--7.5% 37,200 Brown-Forman Corporation - Class "B" 2,036,700 79 62,100 Coca-Cola Company 2,587,707 101 73,800 ConAgra Foods, Inc. 1,994,076 77 19,541 * Del Monte Foods Company 212,020 8 42,200 Diageo PLC (ADR) 2,401,180 93 23,900 Fomento Economico Mexicano, SA de CV (ADR) 1,279,845 50 44,200 H.J. Heinz Company 1,628,328 63 28,300 Kimberly-Clark Corporation 1,860,159 72 52,500 Ruddick Corporation 1,215,375 47 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS VALUE FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 58,800 Sara Lee Corporation $1,303,008 $51 58,200 Tasty Baking Company 488,298 19 46,600 UST, Inc. 2,409,220 93 ---------------------------------------------------------------------------------------------------------------------- 19,415,916 753 ---------------------------------------------------------------------------------------------------------------------- Energy--9.7% 27,600 Anadarko Petroleum Corporation 2,100,360 82 39,000 BP PLC (ADR) 2,433,600 94 36,400 ChevronTexaco Corporation 2,122,484 82 29,500 ConocoPhillips 3,181,280 124 47,900 Diamond Offshore Drilling, Inc. 2,390,210 93 36,600 Kerr-McGee Corporation 2,866,878 111 55,700 Marathon Oil Corporation 2,613,444 101 40,200 Royal Dutch Petroleum Company - NY Shares (ADR) 2,413,608 94 52,600 Tidewater, Inc. 2,044,036 79 46,500 Unocal Corporation 2,868,585 111 ---------------------------------------------------------------------------------------------------------------------- 25,034,485 971 ---------------------------------------------------------------------------------------------------------------------- Financials--23.2% 46,000 A.G. Edwards, Inc. 2,060,800 80 14,600 ACE, Ltd. 602,542 23 52,600 Allstate Corporation 2,843,556 110 62,400 AmSouth Bancorporation 1,619,280 63 71,900 Amvescap PLC (ADR) 911,692 35 84,500 Aon Corporation 1,929,980 75 97,500 Bank Mutual Corporation 1,152,450 45 56,364 Bank of America Corporation 2,485,652 96 80,000 Bank of New York Company, Inc. 2,324,000 90 75,700 Brascan Corporation - Class "A" 2,857,675 111 47,855 Cincinnati Financial Corporation 2,086,957 81 34,200 Comerica, Inc. 1,883,736 73 38,500 CRT Properties, Inc. (REIT) 838,530 33 56,900 Eagle Hospitality Properties Trust, Inc. 510,393 20 6,000 Endurance Specialty Holdings, Ltd. 227,040 9 34,200 Erie Indemnity Company - Class "A" 1,782,504 69 30,300 FBL Financial Group, Inc. - Class "A" 848,400 33 30,600 Jefferson-Pilot Corporation 1,500,930 58 72,500 JPMorgan Chase & Company 2,508,500 97 56,400 KeyCorp 1,830,180 71 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Financials (continued) 30,700 Lincoln National Corporation $1,385,798 $54 43,400 Merrill Lynch & Company, Inc. 2,456,440 95 37,700 Montpelier Re Holdings, Ltd. 1,325,155 51 44,400 Morgan Stanley 2,541,900 99 96,300 NewAlliance Bancshares, Inc. 1,348,200 52 30,500 North Fork Bancorporation, Inc. 846,070 33 21,800 One Liberty Properties, Inc. (REIT) 406,788 16 50,900 Plum Creek Timber Company, Inc. (REIT) 1,817,130 70 32,400 PNC Financial Services Group 1,667,952 65 1,900 Preferred Bank 75,810 3 51,300 Protective Life Corporation 2,016,090 78 40,300 PXRE Group, Ltd. 1,033,695 40 77,100 Regions Financial Corporation 2,498,040 97 63,800 Sky Financial Group, Inc. 1,711,116 66 25,500 SunTrust Banks, Inc. 1,837,785 71 20,300 T. Rowe Price Group, Inc. 1,205,414 47 23,079 TD Banknorth, Inc. 720,988 28 36,700 Wells Fargo & Company 2,194,660 85 ---------------------------------------------------------------------------------------------------------------------- 59,893,828 2,322 ---------------------------------------------------------------------------------------------------------------------- Health Care--5.5% 52,400 Abbott Laboratories 2,442,888 95 50,500 Bristol-Myers Squibb Company 1,285,730 50 39,100 GlaxoSmithKline PLC (ADR) 1,795,472 69 36,900 Johnson & Johnson 2,478,204 96 33,200 Novartis AG 1,553,096 60 84,500 Pfizer, Inc. 2,219,815 86 82,100 Schering-Plough Corporation 1,490,115 58 8,034 * WellPoint, Inc. 1,007,062 39 ---------------------------------------------------------------------------------------------------------------------- 14,272,382 553 ---------------------------------------------------------------------------------------------------------------------- Industrials--7.9% 23,000 A.O. Smith Corporation 664,010 26 29,800 Adesa, Inc. 696,128 27 2,600 Alexander & Baldwin, Inc. 107,120 4 34,800 Baldor Electric Company 898,188 35 33,500 Dover Corporation 1,265,965 49 53,700 Federal Signal Corporation 814,629 32 21,300 General Dynamics Corporation 2,280,165 88 62,600 Honeywell International, Inc. 2,329,346 90 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS VALUE FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Industrials (continued) 67,200 Masco Corporation $2,329,824 $90 63,300 Norfolk Southern Corporation 2,345,265 91 69,800 Pall Corporation 1,892,976 73 47,700 Pitney Bowes, Inc. 2,152,224 84 16,300 SPX Corporation 705,464 28 28,600 Stewart & Stevenson Services, Inc. 654,654 25 21,700 Teleflex, Inc. 1,110,606 43 ---------------------------------------------------------------------------------------------------------------------- 20,246,564 785 ---------------------------------------------------------------------------------------------------------------------- Information Technology--4.6% 51,300 Automatic Data Processing, Inc. 2,305,935 89 68,900 AVX Corporation 844,025 33 6,381 * Freescale Semiconductor, Inc. 110,072 4 95,000 Hewlett-Packard Company 2,084,300 81 41,200 Intersil Corporation - Class "A" 713,584 28 60,900 Methode Electronics, Inc. - Class "A" 737,499 29 57,800 Motorola, Inc. 865,266 33 84,000 Nokia Corporation - Class "A" (ADR) 1,296,120 50 28,200 * palmOne, Inc. 715,716 28 26,700 Paychex, Inc. 876,294 34 77,100 * Planar Systems, Inc. 695,442 27 46,700 Woodhead Industries, Inc. 635,120 25 ---------------------------------------------------------------------------------------------------------------------- 11,879,373 461 ---------------------------------------------------------------------------------------------------------------------- Materials--6.9% 31,500 Air Products & Chemicals, Inc. 1,993,635 77 7,800 Albemarle Corporation 283,608 11 46,800 Alcoa, Inc. 1,422,252 55 56,600 Compass Minerals International, Inc. 1,440,470 56 49,500 Du Pont (E.I.) de Nemours & Company 2,536,380 98 75,900 Glatfelter 1,119,525 44 42,700 Great Lakes Chemical Corporation 1,371,524 53 62,300 Lubrizol Corporation 2,531,872 98 21,000 MeadWestvaco Corporation 668,220 26 42,130 Myers Industries, Inc. 594,454 23 857 Neenah Paper, Inc. 28,812 1 75,900 Sonoco Products Company 2,189,715 85 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Materials (continued) 18,200 Vulcan Materials Company $1,034,306 $40 8,600 Weyerhaeuser Company 589,100 23 ---------------------------------------------------------------------------------------------------------------------- 17,803,873 690 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--3.6% 62,300 BellSouth Corporation 1,637,867 63 60,400 CT Communications, Inc. 636,012 25 42,600 D&E Communications, Inc. 388,938 15 60,100 Nippon Telegraph and Telephone Corporation (ADR) 1,313,185 51 67,400 SBC Communications, Inc. 1,596,706 62 2,600 SureWest Communications 59,956 2 22,100 Telephone & Data Systems, Inc. 1,803,360 70 48,528 Verizon Communications, Inc. 1,722,744 67 ---------------------------------------------------------------------------------------------------------------------- 9,158,768 355 ---------------------------------------------------------------------------------------------------------------------- Utilities--4.7% 34,550 American States Water Company 874,115 34 39,200 KeySpan Corporation 1,527,624 59 44,200 MDU Resources Group, Inc. 1,220,804 47 86,900 NiSource, Inc. 1,980,451 77 37,700 Northwest Natural Gas Company 1,363,609 53 40,300 ONEOK, Inc. 1,242,046 48 8,000 South Jersey Industries, Inc. 451,200 17 51,200 Southwest Gas Corporation 1,236,992 48 48,700 United Utilities PLC (ADR) 1,176,105 46 39,700 Vectren Corporation 1,057,608 41 ---------------------------------------------------------------------------------------------------------------------- 12,130,554 470 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $174,323,686) 227,602,099 8,825 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS VALUE FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS--1.7% Financials--1.5% 49,200 Chubb Corp., 7%, 2005 - Series "A" $1,483,380 $57 21,600 Lehman Brothers Holdings, Inc., 6.25%, 2007 - Series "GIS" 575,100 22 9,300 State Street Corp., 6.75%, 2006 1,849,333 72 ---------------------------------------------------------------------------------------------------------------------- 3,907,813 151 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--.2% 10,900 ALLTEL Corp., 7.75%, 2005 553,175 21 ---------------------------------------------------------------------------------------------------------------------- Total Value of Convertible Preferred Stocks (cost $4,133,635) 4,460,988 172 ---------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--.5% Telecommunication Services--.3% 27,300 Verizon South, Inc., 7%, 2041 - Series "F" 695,058 27 ---------------------------------------------------------------------------------------------------------------------- Utilities--.2% 22,300 Entergy Louisiana, Inc., 7.6%, 2032 582,030 22 ---------------------------------------------------------------------------------------------------------------------- Total Value of Preferred Stocks (cost $1,253,436) 1,277,088 49 ---------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS--.2% Utilities $500M Union Electric Co., 6.75%, 2008 (cost $499,383) 531,098 20 ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--5.3% 9,500M Colgate-Palmolive Co., 2.74%, 4/14/05 9,490,597 368 4,200M New York Times Co., 2.74%, 4/4/05 4,199,041 163 ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $13,689,638) 13,689,638 531 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $193,899,778) 96.0% 247,560,911 9,597 Other Assets, Less Liabilities 4.0 10,392,901 403 ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $257,953,812 $10,000 ====================================================================================================================== * Non-income producing Summary of abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements
Fund Expenses FIRST INVESTORS BLUE CHIP FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,070.64 $7.43 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.75 $7.24 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,067.01 $11.03 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.26 $10.75 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.44% for Class A shares and 2.14% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN SECTORS (BAR CHART: Top Ten Sectors) Financials 18.1% Information Technology 16.5% Health Care 13.5% Industrials 13.1% Consumer Discretionary 12.1% Consumer Staples 9.6% Energy 8.4% Materials 2.8% Telecommunication Services 2.5% Utilities 1.6% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS BLUE CHIP FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--98.6% Consumer Discretionary--12.2% 22,000 Carnival Corporation $1,139,820 $24 71,996 * Comcast Corporation - Class "A" 2,432,025 50 48,900 * Comcast Corporation - Special Class "A" 1,633,260 34 55,300 Eastman Kodak Company 1,800,015 37 31,500 * eBay, Inc. 1,173,690 24 99,200 Gap, Inc. 2,166,528 45 165,800 Hilton Hotels Corporation 3,705,630 77 153,100 Home Depot, Inc. 5,854,544 122 75,100 * Kohl's Corporation 3,877,413 81 48,700 Lowe's Companies, Inc. 2,780,283 58 97,900 McDonald's Corporation 3,048,606 63 158,600 News Corporation - Class "A" 2,683,512 56 36,800 NIKE, Inc. - Class "B" 3,065,808 64 227,200 * Office Depot, Inc. 5,039,296 105 73,800 Target Corporation 3,691,476 77 258,300 * Time Warner, Inc. 4,533,165 94 125,200 Viacom, Inc. - Class "B" 4,360,716 91 137,000 Walt Disney Company 3,936,010 82 29,600 Yum! Brands, Inc. 1,533,576 32 ---------------------------------------------------------------------------------------------------------------------- 58,455,373 1,216 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--9.6% 77,400 Altria Group, Inc. 5,061,186 105 142,900 Coca-Cola Company 5,954,643 124 66,300 Corn Products International, Inc. 1,723,137 36 36,800 Costco Wholesale Corporation 1,625,824 34 47,800 CVS Corporation 2,515,236 52 29,200 General Mills, Inc. 1,435,180 30 18,400 Gillette Company 928,832 19 25,800 Hershey Foods Corporation 1,559,868 33 52,100 Kimberly-Clark Corporation 3,424,533 71 104,100 PepsiCo, Inc. 5,520,423 115 112,100 Procter & Gamble Company 5,941,300 124 77,700 Walgreen Company 3,451,434 72 139,100 Wal-Mart Stores, Inc. 6,970,301 145 ---------------------------------------------------------------------------------------------------------------------- 46,111,897 960 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Energy--8.4% 184,100 Chesapeake Energy Corporation $4,039,154 $84 172,200 ChevronTexaco Corporation 10,040,982 209 63,000 Devon Energy Corporation 3,008,250 63 10,700 EnCana Corporation 753,494 16 204,300 ExxonMobil Corporation 12,176,280 253 143,800 * Grant Prideco, Inc. 3,474,208 72 42,100 Schlumberger, Ltd. 2,967,208 62 55,100 * Transocean, Inc. 2,835,446 59 14,600 Valero Energy Corporation 1,069,742 22 ---------------------------------------------------------------------------------------------------------------------- 40,364,764 840 ---------------------------------------------------------------------------------------------------------------------- Financials--18.2% 48,100 ACE, Ltd. 1,985,087 41 59,000 Allstate Corporation 3,189,540 66 84,900 American Express Company 4,361,313 91 130,300 American International Group, Inc. 7,219,923 150 186,166 Bank of America Corporation 8,209,921 171 117,700 Bank of New York Company, Inc. 3,419,185 71 1,150 * Berkshire Hathaway, Inc. - Class "B" 3,284,400 68 44,200 Capital One Financial Corporation 3,304,834 69 37,500 Chubb Corporation 2,972,625 62 243,100 Citigroup, Inc. 10,924,914 227 55,200 Compass Bancshares, Inc. 2,506,080 52 28,600 Fannie Mae 1,557,270 32 40,500 Freddie Mac 2,559,600 53 35,300 Goldman Sachs Group, Inc. 3,882,647 81 167,268 JPMorgan Chase & Company 5,787,473 121 40,500 Marsh & McLennan Companies, Inc. 1,232,010 26 52,300 Merrill Lynch & Company, Inc. 2,960,180 62 66,800 Morgan Stanley 3,824,300 80 158,600 New York Community Bancorp, Inc. 2,880,176 60 173,200 UnumProvident Corporation 2,947,864 61 70,200 Washington Mutual, Inc. 2,772,900 58 79,800 Wells Fargo & Company 4,772,040 99 18,400 Willis Group Holdings, Ltd. 678,408 14 ---------------------------------------------------------------------------------------------------------------------- 87,232,690 1,815 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS BLUE CHIP FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Health Care--13.6% 93,500 Abbott Laboratories $4,358,970 $91 33,800 Aetna, Inc. 2,533,310 53 83,200 * Amgen, Inc. 4,843,072 101 103,100 * Boston Scientific Corporation 3,019,799 63 173,100 Bristol-Myers Squibb Company 4,407,126 92 14,800 Cooper Companies, Inc. 1,078,920 22 38,500 * Coventry Health Care, Inc. 2,623,390 55 22,200 Guidant Corporation 1,640,580 34 41,400 * Haemonetics Corporation 1,745,424 36 157,000 Johnson & Johnson 10,544,120 219 80,700 Medtronic, Inc. 4,111,665 86 69,600 Merck & Company, Inc. 2,252,952 47 97,800 Novartis AG 4,575,084 95 352,260 Pfizer, Inc. 9,253,870 193 36,800 Teva Pharmaceutical Industries, Ltd. (ADR) 1,140,800 24 62,700 * Triad Hospitals, Inc. 3,141,270 65 40,400 UnitedHealth Group, Inc. 3,853,352 80 ---------------------------------------------------------------------------------------------------------------------- 65,123,704 1,356 ---------------------------------------------------------------------------------------------------------------------- Industrials--13.2% 43,800 3M Company 3,753,222 78 44,200 Boeing Company 2,583,932 54 48,000 Caterpillar, Inc. 4,389,120 91 129,600 Cendant Corporation 2,661,984 56 44,200 Cintas Corporation 1,825,902 38 38,100 Emerson Electric Company 2,473,833 52 401,600 General Electric Company 14,481,696 301 55,300 Honeywell International, Inc. 2,057,713 43 36,100 ITT Industries, Inc. 3,257,664 68 73,700 Joy Global, Inc. 2,583,922 54 59,200 Lockheed Martin Corporation 3,614,752 75 73,700 Masco Corporation 2,555,179 53 42,800 Northrop Grumman Corporation 2,310,344 48 139,200 Tyco International, Ltd. 4,704,960 98 36,800 Union Pacific Corporation 2,564,960 53 37,400 United Parcel Service, Inc. - Class "B" 2,720,476 57 47,400 United Technologies Corporation 4,818,684 100 ---------------------------------------------------------------------------------------------------------------------- 63,358,343 1,319 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Information Technology--16.6% 84,700 * Amdocs, Ltd. $2,405,480 $50 44,200 * Apple Computer, Inc. 1,841,814 38 147,400 * ASML Holding NV - NY Shares 2,471,898 52 245,800 * BEA Systems, Inc. 1,959,026 41 305,600 * Cisco Systems, Inc. 5,467,184 114 121,500 * Corning, Inc. 1,352,295 28 54,800 * Cypress Semiconductor Corporation 690,480 14 119,100 * Dell, Inc. 4,575,822 95 353,400 * EMC Corporation 4,353,888 91 81,000 First Data Corporation 3,184,110 66 55,100 Hewlett-Packard Company 1,208,894 25 320,200 Intel Corporation 7,438,246 155 73,900 International Business Machines Corporation 6,752,982 141 736,200 * Lucent Technologies, Inc. 2,024,550 42 36,800 * Marvell Technology Group, Ltd. 1,410,912 29 505,300 Microsoft Corporation 12,213,101 254 136,200 Motorola, Inc. 2,038,914 42 110,500 National Semiconductor Corporation 2,277,405 47 171,000 Nokia Corporation - Class "A" (ADR) 2,638,530 55 40,500 QUALCOMM, Inc. 1,484,325 31 92,000 * SanDisk Corporation 2,557,600 53 10,100 * Sigmatel, Inc. 378,043 8 114,100 * Sybase, Inc. 2,106,286 44 109,900 Texas Instruments, Inc. 2,801,351 58 138,400 * Veritas Software Corporation 3,213,648 67 55,300 * Xerox Corporation 837,795 18 ---------------------------------------------------------------------------------------------------------------------- 79,684,579 1,658 ---------------------------------------------------------------------------------------------------------------------- Materials--2.8% 59,000 Alcoa, Inc. 1,793,010 37 51,700 Cemex SA de CV (ADR) 1,874,125 39 73,700 Dow Chemical Company 3,673,945 76 40,400 DuPont (E.I.) de Nemours & Company 2,070,096 43 66,200 International Paper Company 2,435,498 51 18,300 Newmont Mining Corporation 773,175 16 14,800 Peabody Energy Corporation 686,128 14 3,600 Phelps Dodge Corporation 366,228 8 ---------------------------------------------------------------------------------------------------------------------- 13,672,205 284 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS BLUE CHIP FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--2.4% 119,500 * Nextel Communications, Inc. - Class "A" $3,396,190 $70 135,800 SBC Communications, Inc. 3,217,102 67 54,900 Sprint Corporation 1,248,975 26 110,900 Verizon Communications, Inc. 3,936,950 82 ---------------------------------------------------------------------------------------------------------------------- 11,799,217 245 ---------------------------------------------------------------------------------------------------------------------- Utilities--1.6% 172,700 Duke Energy Corporation 4,837,327 101 98,400 ONEOK, Inc. 3,032,688 63 ---------------------------------------------------------------------------------------------------------------------- 7,870,015 164 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $370,807,466) 473,672,787 9,857 ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--1.8% Colgate-Palmolive Co.: $1,000M 2.64%, 4/5/05+ 999,706 21 2,200M 2.74%, 4/14/05+ 2,197,823 46 5,600M New York Times Co., 2.74%, 4/4/05 5,598,720 116 ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term Corporate Notes (cost $8,796,249) 8,796,249 183 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $379,603,715) 100.4% 482,469,036 10,040 Excess of Liabilities Over Other Assets (.4) (1,940,209) (40) ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $480,528,827 $10,000 ====================================================================================================================== * Non-income producing + Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 6) Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements
Fund Expenses FIRST INVESTORS GROWTH & INCOME FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,080.47 $7.05 Hypothetical (5% annual return before expenses) $1,000.00 $1,018.15 $6.84 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,076.49 $10.66 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.66 $10.35 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.36% for Class A shares and 2.06% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition TOP TEN SECTORS Financials 22.9% Consumer Discretionary 16.0% Information Technology 12.9% Health Care 12.8% Industrials 11.1% Consumer Staples 7.9% Energy 7.7% Materials 5.2% Telecommunication Services 1.6% Utilities 1.0% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS GROWTH & INCOME FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--97.7% Consumer Discretionary--16.0% 212,500 Blockbuster, Inc. - Class "A" $1,876,375 $29 226,500 Claire's Stores, Inc. 5,218,560 82 50,000 Clear Channel Communications, Inc. 1,723,500 27 189,702 * Cost Plus, Inc. 5,099,190 80 188,300 Domino's Pizza, Inc. 3,519,327 55 112,100 * GameStop Corporation - Class "A" 2,484,136 39 50,000 Genuine Parts Company 2,174,500 34 70,000 Harley-Davidson, Inc. 4,043,200 63 230,100 * Hollywood Entertainment Corporation 3,030,417 48 100,000 Home Depot, Inc. 3,824,000 60 75,000 J.C. Penney Company, Inc. (Holding Co.) 3,894,000 61 100,000 Kenneth Cole Productions, Inc. - Class "A" 2,914,000 46 60,000 Lear Corporation 2,661,600 42 150,000 Leggett & Platt, Inc. 4,332,000 68 210,000 McDonald's Corporation 6,539,400 103 175,000 Movado Group, Inc. 3,237,500 51 90,000 Neiman Marcus Group, Inc. - Class "A" 8,235,900 129 10,000 Neiman Marcus Group, Inc. - Class "B" 902,500 14 100,000 * Netflix, Inc. 1,085,000 17 305,300 * Office Depot, Inc. 6,771,554 106 203,400 Orient-Express Hotels, Ltd. 5,308,740 83 75,000 Oxford Industries, Inc. 2,744,250 43 120,000 Polo Ralph Lauren Corporation - Class "A" 4,656,000 73 100,000 RadioShack Corporation 2,450,000 38 50,000 Ross Stores, Inc. 1,457,000 23 65,000 Sherwin-Williams Company 2,859,350 45 140,000 * Steiner Leisure Ltd. 4,576,600 72 125,000 Viacom, Inc. - Class "B" 4,353,750 68 ---------------------------------------------------------------------------------------------------------------------- 101,972,349 1,599 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--7.9% 100,000 Altria Group, Inc. 6,539,000 103 45,000 Bunge, Ltd. 2,424,600 38 50,000 Coca-Cola Company 2,083,500 33 250,000 * Herbalife, Ltd. 3,810,000 60 113,300 Hormel Foods Corporation 3,524,763 55 62,500 Kimberly-Clark Corporation 4,108,125 64 400,000 Nu Skin Enterprises, Inc. - Class "A" 9,004,000 141 50,000 PepsiCo, Inc. 2,651,500 42 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Consumer Staples (continued) 75,000 Procter & Gamble Company $3,975,000 $62 112,000 * Smithfield Foods, Inc. 3,533,600 55 82,091 Tootsie Roll Industries, Inc. 2,462,730 39 75,000 Wal-Mart Stores, Inc. 3,758,250 59 75,700 WD-40 Company 2,459,493 39 ---------------------------------------------------------------------------------------------------------------------- 50,334,561 790 ---------------------------------------------------------------------------------------------------------------------- Energy--7.8% 65,000 Anadarko Petroleum Corporation 4,946,500 77 255,000 Chesapeake Energy Corporation 5,594,700 88 40,000 ConocoPhillips 4,313,600 68 115,000 ExxonMobil Corporation 6,854,000 107 80,000 Noble Corporation 4,496,800 71 150,000 Suncor Energy, Inc. 6,031,500 95 100,000 * Swift Energy Company 2,844,000 45 120,000 * Transocean, Inc. 6,175,200 97 55,000 Unocal Corporation 3,392,950 53 145,000 XTO Energy, Inc. 4,761,800 75 ---------------------------------------------------------------------------------------------------------------------- 49,411,050 776 ---------------------------------------------------------------------------------------------------------------------- Financials--21.3% 50,000 American Express Company 2,568,500 40 80,000 American International Group, Inc. 4,432,800 70 197,718 Bank of America Corporation 8,719,364 137 35,000 Bear Stearns Companies, Inc. 3,496,500 55 150,000 Citigroup, Inc. 6,741,000 106 200,000 Colonial BancGroup, Inc. 4,104,000 64 100,000 Comerica, Inc. 5,508,000 86 225,000 Doral Financial Corporation 4,925,250 77 129,200 Endurance Specialty Holdings, Ltd. 4,888,928 77 50,000 Fannie Mae 2,722,500 43 120,000 Independence Community Bank Corporation 4,680,000 73 155,000 JPMorgan Chase & Company 5,363,000 84 57,500 Lehman Brothers Holdings, Inc. 5,414,200 85 170,000 MBNA Corporation 4,173,500 65 105,000 Merrill Lynch & Company, Inc. 5,943,000 93 190,000 Montpelier Re Holdings, Ltd. 6,678,500 105 90,000 Morgan Stanley 5,152,500 81 90,000 National City Corporation 3,015,000 47 180,000 New York Community Bancorp, Inc. 3,268,800 51 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS GROWTH & INCOME FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Financials (continued) 225,000 NewAlliance Bancshares, Inc. $3,150,000 $49 225,000 North Fork Bancorporation, Inc. 6,241,500 98 75,000 Plum Creek Timber Company, Inc. (REIT) 2,677,500 42 106,105 Safeco Corporation 5,168,374 81 50,000 South Financial Group, Inc. 1,527,000 24 200,000 Sovereign Bancorp, Inc. 4,432,000 70 170,000 U.S. Bancorp 4,899,400 77 67,000 U.S.B. Holding Co., Inc. 1,486,730 23 100,000 Wachovia Corporation 5,091,000 80 125,000 Washington Mutual, Inc. 4,937,500 78 70,000 Wells Fargo & Company 4,186,000 66 ---------------------------------------------------------------------------------------------------------------------- 135,592,346 2,127 ---------------------------------------------------------------------------------------------------------------------- Health Care--12.6% 160,000 Abbott Laboratories 7,459,200 117 60,000 Aetna, Inc. 4,497,000 71 46,700 * Amgen, Inc. 2,718,407 43 300,000 * Boston Scientific Corporation 8,787,000 138 30,000 Eli Lilly & Company 1,563,000 24 65,000 * Forest Laboratories, Inc. 2,401,750 38 20,000 * Genentech, Inc. 1,132,200 18 65,000 Guidant Corporation 4,803,500 75 100,000 Johnson & Johnson 6,716,000 105 52,800 * Laboratory Corporation of America Holdings 2,544,960 40 50,000 Medtronic, Inc. 2,547,500 40 80,000 Merck & Company, Inc. 2,589,600 40 330,000 Pfizer, Inc. 8,669,100 136 145,000 * Priority Healthcare Corporation 3,136,350 49 120,000 * Thermo Electron Corporation 3,034,800 48 100,000 * Waters Corporation 3,579,000 56 75,000 * Wellpoint, Inc. 9,401,250 147 120,000 Wyeth 5,061,600 79 ---------------------------------------------------------------------------------------------------------------------- 80,642,217 1,264 ---------------------------------------------------------------------------------------------------------------------- Industrials--11.1% 52,000 3M Company 4,455,880 70 205,000 * AGCO Corporation 3,741,250 59 50,400 Alexander & Baldwin, Inc. 2,076,480 33 100,000 Briggs & Stratton Corporation 3,641,000 57 30,000 Caterpillar, Inc. 2,743,200 43 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Industrials (continued) 100,000 Cendant Corporation $2,054,000 $32 100,200 Chicago Bridge & Iron Company NV - NY Shares 4,411,806 69 36,000 Eaton Corporation 2,354,400 37 50,000 Engineered Support Systems, Inc. 2,676,000 42 50,000 * Gardner Denver, Inc. 1,975,500 31 50,000 Harsco Corporation 2,980,500 47 140,000 Honeywell International, Inc. 5,209,400 82 53,700 Knoll, Inc. 895,716 14 60,000 Lockheed Martin Corporation 3,663,600 57 140,000 Masco Corporation 4,853,800 76 90,000 Northrop Grumman Corporation 4,858,200 76 200,000 * Pinnacle Airlines Corporation 2,124,000 33 60,000 Pitney Bowes, Inc. 2,707,200 43 50,000 Rockwell Automation, Inc. 2,832,000 44 130,000 SPX Corporation 5,626,400 88 50,000 United Technologies Corporation 5,083,000 80 ---------------------------------------------------------------------------------------------------------------------- 70,963,332 1,113 ---------------------------------------------------------------------------------------------------------------------- Information Technology--12.9% 100,000 Amphenol Corporation - Class "A" 3,704,000 58 15,000 Analog Devices, Inc. 542,100 9 200,000 * Cisco Systems, Inc. 3,578,000 56 135,000 * Electronics for Imaging, Inc. 2,408,400 38 350,000 * EMC Corporation 4,312,000 68 581,600 * Entrust, Inc. 2,181,000 34 1,500 * Fastclick, Inc. 18,000 -- 140,000 First Data Corporation 5,503,400 86 200,000 Hewlett-Packard Company 4,388,000 69 175,000 Intel Corporation 4,065,250 64 80,000 Intersil Corporation - Class "A" 1,385,600 22 50,000 * Intuit, Inc. 2,188,500 34 127,100 * Lexar Media, Inc. 632,958 10 165,000 * McAfee, Inc. 3,722,400 58 350,000 Microsoft Corporation 8,459,500 133 300,000 Nokia Corporation - Class "A" (ADR) 4,629,000 73 132,000 * palmOne, Inc. 3,350,160 53 195,000 * Paxar Corporation 4,161,300 65 160,000 QUALCOMM, Inc. 5,864,000 92 160,000 * SanDisk Corporation 4,448,000 70 65,000 StarTek, Inc. 1,092,000 17 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS GROWTH & INCOME FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Information Technology (continued) 184,820 Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) $1,567,273 $24 95,000 * Tech Data Corporation 3,520,700 55 236,900 * VERITAS Software Corporation 5,500,818 86 35,000 Xilinx, Inc. 1,023,050 16 ---------------------------------------------------------------------------------------------------------------------- 82,245,409 1,290 ---------------------------------------------------------------------------------------------------------------------- Materials--5.3% 100,000 Calgon Carbon Corporation 854,000 13 65,000 Dow Chemical Company 3,240,250 51 60,000 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 2,376,600 37 125,000 Georgia-Pacific Corporation 4,436,250 70 122,100 Lubrizol Corporation 4,962,144 78 140,000 MeadWestvaco Corporation 4,454,800 70 1,893 Neenah Paper, Inc. 63,643 1 45,000 PPG Industries, Inc. 3,218,400 50 60,000 Praxair, Inc. 2,871,600 45 207,000 RPM International, Inc. 3,783,960 59 50,000 Weyerhaeuser Company 3,425,000 54 ---------------------------------------------------------------------------------------------------------------------- 33,686,647 528 ---------------------------------------------------------------------------------------------------------------------- Other--.9% 75,000 Nasdaq - 100 Index Tracking Stock 2,741,250 43 25,000 SPDR Trust - Series "1" 2,950,000 46 ---------------------------------------------------------------------------------------------------------------------- 5,691,250 89 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--.9% 140,000 SBC Communications, Inc. 3,316,600 52 75,000 Verizon Communications, Inc. 2,662,500 42 ---------------------------------------------------------------------------------------------------------------------- 5,979,100 94 ---------------------------------------------------------------------------------------------------------------------- Utilities--1.0% 115,400 Atmos Energy Corporation 3,115,800 49 75,000 Consolidated Edison, Inc. 3,163,500 50 ---------------------------------------------------------------------------------------------------------------------- 6,279,300 99 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $505,167,569) 622,797,561 9,769 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Shares or $10,000 of Warrants Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS--2.4% Financials--1.6% Chubb Corporation 90,800 7%, 2005 - Series "A" $2,737,620 $43 50,000 7%, 2006 - Series "B" 1,506,250 23 97,000 Hartford Financial Services Group, Inc., 6%, 2006 - Class "A" 6,135,250 96 ---------------------------------------------------------------------------------------------------------------------- 10,379,120 162 ---------------------------------------------------------------------------------------------------------------------- Health Care--.1% 16,000 Baxter International, Inc., 7%, 2006 864,000 13 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--.7% 80,000 ALLTEL Corporation, 7.75%, 2005 4,060,000 65 ---------------------------------------------------------------------------------------------------------------------- Total Value of Convertible Preferred Stocks (cost $12,653,192) 15,303,120 240 ---------------------------------------------------------------------------------------------------------------------- WARRANTS--.0% Information Technology 23,179 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 15,530 -- ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $517,820,761) 100.1% 638,116,211 10,009 Excess of Liabilities Over Other Assets (.1) (587,508) (9) ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $637,528,703 $10,000 ====================================================================================================================== * Non-income producing Summary of abbreviations: ADR American Depositary Receipts REIT Real Estate Investment Trust See notes to financial statements
Fund Expenses FIRST INVESTORS ALL-CAP GROWTH FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,029.49 $7.89 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.15 $7.85 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,026.35 $11.42 Hypothetical (5% annual return before expenses) $1,000.00 $1,013.66 $11.35 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.56% for Class A shares and 2.26% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition BY SECTOR (BAR CHART DATA:) Information Technology 31.4% Health Care 19.5% Industrials 15.1% Consumer Discretionary 13.7% Financials 7.1% Energy 5.6% Telecommunication Services 2.0% Materials 0.9% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS ALL-CAP GROWTH FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--95.2% Consumer Discretionary--13.7% 12,580 * A.C. Moore Arts & Crafts, Inc. $335,383 $20 24,300 Abercrombie & Fitch Company - Class "A" 1,390,932 82 38,900 * Chico's FAS, Inc. 1,099,314 65 21,300 * Coach, Inc. 1,206,219 71 44,180 * Comcast Corporation - Special Class "A" 1,475,612 87 34,533 D.R. Horton, Inc. 1,009,745 59 108,920 * eBay, Inc. 4,058,359 238 13,000 * Electronics Boutique Holdings Corporation 558,610 33 38,200 * GameStop Corporation - Class "B" 851,860 50 28,720 Omnicom Group, Inc. 2,542,294 149 16,000 * Pixar 1,560,800 92 11,830 * Red Robin Gourmet Burgers, Inc. 602,265 35 22,700 Ross Stores, Inc. 661,478 39 6,090 Standard Pacific Corporation 439,637 26 30,930 * Tempur-Pedic International, Inc. 577,154 34 15,200 * Wynn Resorts, Ltd. 1,029,648 60 122,530 * XM Satellite Radio Holdings, Inc. - Class "A" 3,859,695 227 ---------------------------------------------------------------------------------------------------------------------- 23,259,005 1,367 ---------------------------------------------------------------------------------------------------------------------- Energy--5.6% 13,390 Cabot Oil & Gas Corporation 738,459 43 29,000 EOG Resources, Inc. 1,413,460 83 27,340 Halliburton Company 1,182,455 70 4,800 Oil Service HOLDRs Trust 462,000 27 64,560 Petro-Canada 3,735,442 220 20,740 * Whiting Petroleum Corporation 845,777 50 34,766 XTO Energy, Inc. 1,141,715 67 ---------------------------------------------------------------------------------------------------------------------- 9,519,308 560 ---------------------------------------------------------------------------------------------------------------------- Financials--7.1% 7,175 * Affiliated Managers Group, Inc. 445,065 26 7,140 * Arch Capital Group, Ltd. 285,886 17 36,520 Capital One Financial Corporation 2,730,600 161 21,800 * CB Richard Ellis Group, Inc. - Class "A" 762,782 45 209,790 Countrywide Financial Corporation 6,809,783 400 12,900 Legg Mason, Inc. 1,008,006 59 ---------------------------------------------------------------------------------------------------------------------- 12,042,122 708 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS ALL-CAP GROWTH FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Health Care--19.4% 81,310 Abbott Laboratories $3,790,672 $223 28,900 * Abgenix, Inc. 202,300 12 12,480 * Advisory Board Company 545,376 32 38,100 Aetna, Inc. 2,855,595 168 13,870 * Amerigroup Corporation 507,087 30 14,960 * Amylin Pharmaceuticals, Inc. 261,650 15 1,400 Arrow International, Inc. 48,090 3 156,190 AstraZeneca PLC (ADR) 6,174,191 363 7,960 * AtheroGenics, Inc. 104,196 6 12,600 * Cephalon, Inc. 590,058 35 26,400 * DaVita, Inc. 1,104,840 65 43,480 Eli Lilly & Company 2,265,308 133 51,840 * Forest Laboratories, Inc. 1,915,488 112 13,700 * Hologic, Inc. 436,688 26 22,550 * Medicines Company 510,983 30 111,320 Medtronic, Inc. 5,671,754 333 16,910 * NPS Pharmaceuticals, Inc. 213,404 12 148,320 Schering-Plough Corporation 2,692,008 158 11,600 * Triad Hospitals, Inc. 581,160 34 21,100 * WellPoint, Inc. 2,644,885 155 ---------------------------------------------------------------------------------------------------------------------- 33,115,733 1,945 ---------------------------------------------------------------------------------------------------------------------- Industrials--15.1% 105,410 * Apollo Group, Inc. - Class "A" 7,806,665 459 11,100 Corporate Executive Board Company 709,845 42 22,140 * Corrections Corporation of America 854,604 50 33,160 Danaher Corporation 1,771,076 104 39,040 * DiamondCluster International, Inc. 628,544 37 28,600 * Education Management Corporation 799,370 47 10,200 Fastenal Company 564,162 33 16,910 General Dynamics Corporation 1,810,216 106 126,470 General Electric Company 4,560,508 268 8,300 * Jacobs Engineering Group, Inc. 430,936 25 37,300 * Monster Worldwide, Inc. 1,046,265 62 26,510 * Navigant Consulting, Inc. 721,867 42 14,400 PACCAR, Inc. 1,042,416 61 35,700 Robert Half International, Inc. 962,472 57 19,900 Rockwell Collins, Inc. 947,041 56 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Industrials (continued) 6,770 Strayer Education, Inc. $767,176 $45 3,870 * Yellow Roadway Corporation 226,550 13 ---------------------------------------------------------------------------------------------------------------------- 25,649,713 1,507 ---------------------------------------------------------------------------------------------------------------------- Information Technology--31.4% 54,520 * Accenture, Ltd. - Class "A" 1,316,658 77 31,980 * Aeroflex, Inc. 298,373 17 44,100 * Amdocs, Ltd. 1,252,440 74 18,000 CDW Corporation 1,020,240 60 188,070 * Cisco Systems, Inc. 3,364,572 198 19,700 * Cognizant Technology Solutions Corporation - Class "A" 910,140 53 161,290 * Dell, Inc. 6,196,762 364 136,260 * Electronic Arts, Inc. 7,055,543 415 8,850 * F5 Networks, Inc. 446,837 26 66,980 First Data Corporation 2,632,984 155 14,830 * Google, Inc. - Class "A" 2,676,963 157 46,900 * Jabil Circuit, Inc. 1,337,588 79 34,200 * Lam Research Corporation 987,012 58 43,350 * Lexmark International Group, Inc. - Class "A" 3,466,700 204 52,390 * MEMC Electronic Materials, Inc. 704,646 41 20,250 * Microsemi Corporation 329,873 19 129,660 Microsoft Corporation 3,133,882 184 5,980 * NAVTEQ 259,233 15 35,500 * Network Appliance, Inc. 981,930 58 74,560 * Opsware, Inc. 384,730 23 38,420 * Research in Motion, Ltd. 2,936,056 172 28,300 * Salesforce.com, Inc. 424,217 25 42,200 * SanDisk Corporation 1,173,160 69 25,300 * Semtech Corporation 452,111 27 26,800 * Take-Two Interactive Software, Inc. 1,047,880 62 34,720 * THQ, Inc. 977,021 57 9,100 * Websense, Inc. 489,580 29 210,850 * Yahoo!, Inc. 7,147,815 420 ---------------------------------------------------------------------------------------------------------------------- 53,404,946 3,138 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS ALL-CAP GROWTH FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Materials--.9% 14,150 Arch Coal, Inc. $608,591 $36 22,200 Cameco Corporation 982,128 58 ---------------------------------------------------------------------------------------------------------------------- 1,590,719 94 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--2.0% 120,580 * American Tower Corporation - Class "A" 2,198,173 129 77,370 * Crown Castle International Corporation 1,242,562 73 ---------------------------------------------------------------------------------------------------------------------- 3,440,735 202 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $141,273,012) 162,022,281 9,521 ---------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--4.7% $7,974M UBS Securities, 2.66%, 3/31/05, to be repurchased at $7,974,589 on 4/1/05 (collateralized by U.S. Treasury Bonds, 6.875%, 8/15/25, valued at $8,156,977) (cost $7,974,000) 7,974,000 468 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $149,247,012) 99.9% 169,996,281 9,989 Other Assets, Less Liabilities .1 179,371 11 ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $170,175,652 $10,000 ====================================================================================================================== * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements
Fund Expenses FIRST INVESTORS MID-CAP OPPORTUNITY FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,130.33 $7.75 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.65 $7.34 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,126.53 $11.45 Hypothetical (5% annual return before expenses) $1,000.00 $1,014.16 $10.85 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.46% for Class A shares and 2.16% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Health Care 16.9% Consumer Discretionary 16.3% Financials 15.9% Information Technology 13.6% Industrials 11.7% Energy 10.6% Consumer Staples 5.8% Materials 3.9% Other 2.3% Utilities 2.0% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS MID-CAP OPPORTUNITY FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--98.9% Consumer Discretionary--16.3% 75,000 American Axle & Manufacturing Holdings, Inc. $1,837,500 $46 54,400 American Eagle Outfitters, Inc. 1,607,520 40 70,000 Applebee's International, Inc. 1,929,200 49 105,000 Blockbuster, Inc. - Class "A" 927,150 23 60,000 BorgWarner, Inc. 2,920,800 74 70,000 * Chico's FAS, Inc. 1,978,200 50 145,700 Claire's Stores, Inc. 3,356,928 85 45,000 * Coach, Inc. 2,548,350 64 100,000 * Cost Plus, Inc. 2,688,000 68 155,000 * GameStop Corporation - Class "A" 3,434,800 87 75,000 * Helen of Troy, Ltd. 2,053,500 52 115,000 * Hollywood Entertainment Corporation 1,514,550 38 75,000 Kenneth Cole Productions, Inc. - Class "A" 2,185,500 55 30,000 Lear Corporation 1,330,800 34 80,000 Leggett & Platt, Inc. 2,310,400 58 100,000 Movado Group, Inc. 1,850,000 47 55,000 Neiman Marcus Group, Inc. - Class "A" 5,033,050 127 167,000 * Office Depot, Inc. 3,704,060 93 111,400 Orient-Express Hotels, Ltd. 2,907,540 73 165,000 * Pacific Sunwear of California, Inc. 4,616,700 117 56,100 Polo Ralph Lauren Corporation - Class "A" 2,176,680 55 60,000 * Quiksilver, Inc. 1,741,800 44 60,000 Regis Corporation 2,455,800 62 50,000 Ross Stores, Inc. 1,457,000 37 65,000 Tiffany & Company 2,243,800 57 50,000 Tupperware Corporation 1,018,000 26 110,000 * Warnaco Group, Inc. 2,644,400 67 ---------------------------------------------------------------------------------------------------------------------- 64,472,028 1,628 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--5.8% 30,000 Altria Group, Inc. 1,961,700 49 190,000 Chiquita Brands International, Inc. 5,088,200 128 140,000 * Herbalife, Ltd. 2,133,600 54 58,900 Hormel Foods Corporation 1,832,379 46 190,000 Nu Skin Enterprises, Inc. - Class "A" 4,276,900 108 60,000 * Performance Food Group Company 1,660,800 42 120,000 * Smithfield Foods, Inc. 3,786,000 96 70,000 Tootsie Roll Industries, Inc. 2,100,000 53 ---------------------------------------------------------------------------------------------------------------------- 22,839,579 576 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Energy--10.5% 40,000 Anadarko Petroleum Corporation $3,044,000 $77 170,000 Chesapeake Energy Corporation 3,729,800 94 93,800 EOG Resources, Inc. 4,571,812 115 165,000 * Grant Prideco, Inc. 3,986,400 101 160,000 Patterson-UTI Energy, Inc. 4,003,200 101 80,000 Suncor Energy, Inc. 3,216,800 81 110,600 * Swift Energy Company 3,145,464 79 142,500 Talisman Energy, Inc. 4,866,375 123 77,500 * Transocean, Inc. 3,988,150 101 50,000 * Weatherford International, Ltd. 2,897,000 73 133,333 XTO Energy, Inc. 4,378,656 110 ---------------------------------------------------------------------------------------------------------------------- 41,827,657 1,055 ---------------------------------------------------------------------------------------------------------------------- Financials--15.9% 40,000 Ambac Financial Group, Inc. 2,990,000 75 52,500 Astoria Financial Corporation 1,328,250 34 30,000 Bear Stearns Companies, Inc. 2,997,000 76 60,000 Brookline Bancorp, Inc. 894,000 23 45,000 * CapitalSource, Inc. 1,035,000 26 37,488 Citigroup, Inc. 1,684,711 43 30,000 City National Corporation 2,094,600 53 135,000 Colonial BancGroup, Inc. 2,770,200 70 100,000 * Conseco, Inc. 2,042,000 51 56,250 Doral Financial Corporation 1,231,312 31 78,400 Endurance Specialty Holdings, Ltd. 2,966,656 75 95,000 Hub International, Ltd. 1,833,500 46 75,000 Independence Community Bank Corporation 2,925,000 74 175,000 Janus Capital Group, Inc. 2,441,250 62 55,000 KeyCorp 1,784,750 45 100,000 Montpelier Re Holdings, Ltd. 3,515,000 89 111,666 New York Community Bancorp, Inc. 2,027,855 51 135,000 NewAlliance Bancshares, Inc. 1,890,000 48 154,432 North Fork Bancorporation, Inc. 4,283,944 108 44,400 PartnerRe, Ltd. 2,868,240 72 60,900 Protective Life Corporation 2,393,370 60 40,000 Provident Financial Services, Inc. 684,000 17 52,000 SAFECO Corporation 2,532,920 64 110,000 South Financial Group, Inc. 3,359,400 85 200,640 Sovereign Bancorp, Inc. 4,446,182 112 71,000 * TD Banknorth, Inc. 2,218,040 56 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS MID-CAP OPPORTUNITY FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Financials (continued) 28,000 Zions Bancorporation $1,932,560 $49 ---------------------------------------------------------------------------------------------------------------------- 63,169,740 1,595 ---------------------------------------------------------------------------------------------------------------------- Health Care--16.9% 94,150 * Accredo Health, Inc. 4,181,201 106 56,000 Aetna, Inc. 4,197,200 106 35,000 AmerisourceBergen Corporation 2,005,150 51 75,000 * Aspreva Pharmaceuticals Corporation 1,091,250 27 55,000 Beckman Coulter, Inc. 3,654,750 92 53,000 Biomet, Inc. 1,923,900 49 125,000 * Caremark Rx, Inc. 4,972,500 126 125,000 * Centene Corporation 3,748,750 95 54,000 * Charles River Laboratories International, Inc. 2,540,160 64 95,000 * Community Health Systems, Inc. 3,316,450 84 43,000 DENTSPLY International, Inc. 2,339,630 59 10,000 * Express Scripts, Inc. 871,900 22 60,000 * Gilead Sciences, Inc. 2,148,000 54 70,000 * Henry Schein, Inc. 2,508,800 63 200,000 * Human Genome Sciences, Inc. 1,844,000 46 65,000 * Humana, Inc. 2,076,100 52 95,000 * Idenix Pharmaceuticals, Inc. 1,885,750 48 50,000 * Laboratory Corporation of America Holdings 2,410,000 61 61,600 * Neurocrine Biosciences, Inc. 2,344,496 59 35,000 * PacifiCare Health Systems, Inc. 1,992,200 50 85,000 * Priority Healthcare Corporation - Class "B" 1,838,550 46 80,000 * Thermo Electron Corporation 2,023,200 51 60,000 * Triad Hospitals, Inc. 3,006,000 76 65,000 * Waters Corporation 2,326,350 59 44,000 * WellPoint, Inc. 5,515,400 139 ---------------------------------------------------------------------------------------------------------------------- 66,761,687 1,685 ---------------------------------------------------------------------------------------------------------------------- Industrials--11.7% 165,000 * AGCO Corporation 3,011,250 76 43,000 Avery Dennison Corporation 2,662,990 67 93,500 Chicago Bridge & Iron Company NV - NY Shares 4,116,805 104 43,000 * ChoicePoint, Inc. 1,724,730 44 41,000 FedEx Corporation 3,851,950 97 55,000 IDEX Corporation 2,219,250 56 125,000 Knoll, Inc. 2,085,000 53 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Industrials (continued) 30,000 L-3 Communications Holdings, Inc. $2,130,600 $54 67,000 Manpower, Inc. 2,915,840 74 91,400 Masco Corporation 3,168,838 80 65,000 * Mobile Mini, Inc. 2,626,650 66 75,000 Northrop Grumman Corporation 4,048,500 102 225,000 * Pinnacle Airlines Corporation 2,389,500 60 30,900 Rockwell Automation, Inc. 1,750,176 44 79,300 SPX Corporation 3,432,104 87 57,600 United Defense Industries, Inc. 4,228,992 107 ---------------------------------------------------------------------------------------------------------------------- 46,363,175 1,171 ---------------------------------------------------------------------------------------------------------------------- Information Technology--13.6% 113,000 Amphenol Corporation - Class "A" 4,185,520 106 37,500 * CheckFree Corporation 1,528,500 38 125,000 * Comverse Technology, Inc. 3,152,500 79 35,000 * DST Systems, Inc. 1,616,300 41 100,000 * Electronics for Imaging, Inc. 1,784,000 45 71,250 Fair Isaac Corporation 2,453,850 62 175,000 * Ingram Micro, Inc. - Class "A" 2,917,250 74 27,900 * International Rectifier Corporation 1,269,450 32 105,000 Intersil Corporation - Class "A" 1,818,600 46 62,500 * Intuit, Inc. 2,735,625 69 120,000 * Manhattan Associates, Inc. 2,444,400 62 110,000 * McAfee, Inc. 2,481,600 63 180,000 * Novatel Wireless, Inc. 1,935,000 49 70,000 * Novellus Systems, Inc. 1,871,100 47 90,000 * palmOne, Inc. 2,284,200 58 125,000 * Paxar Corporation 2,667,500 67 150,000 * Polycom, Inc. 2,542,500 64 30,000 * SanDisk Corporation 834,000 21 60,000 * Storage Technology Corporation 1,848,000 47 75,600 * SunGard Data Systems, Inc. 2,608,200 66 165,000 * Sybase, Inc. 3,045,900 77 100,000 * Tellabs, Inc. 730,000 18 160,000 * VERITAS Software Corporation 3,715,200 94 125,000 * Vishay Intertechnology, Inc. 1,553,750 39 ---------------------------------------------------------------------------------------------------------------------- 54,022,945 1,364 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS MID-CAP OPPORTUNITY FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Materials--3.9% 60,000 Freeport-McMoRan Copper & Gold, Inc. - Class "B" $2,376,600 $60 60,000 Georgia-Pacific Corporation 2,129,400 54 65,000 Louisiana-Pacific Corporation 1,634,100 41 60,000 Lubrizol Corporation 2,438,400 62 80,000 MeadWestvaco Corporation 2,545,600 64 50,000 Praxair, Inc. 2,393,000 60 150,000 Sappi, Ltd. (ADR) 1,845,000 47 ---------------------------------------------------------------------------------------------------------------------- 15,362,100 388 ---------------------------------------------------------------------------------------------------------------------- Other--2.3% 75,000 MidCap SPDR Trust - Series "1" 9,027,000 228 ---------------------------------------------------------------------------------------------------------------------- Utilities--2.0% 59,500 AGL Resources, Inc. 2,078,335 53 35,000 Equitable Resources, Inc. 2,010,400 51 50,000 SCANA Corporation 1,911,000 48 57,000 Wisconsin Energy Corporation 2,023,500 51 ---------------------------------------------------------------------------------------------------------------------- 8,023,235 203 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $306,262,874) 391,869,146 9,893 ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--.6% $2,600M Tennessee Valley Authority, 2.67%, 4/28/05 (cost $2,594,793) 2,594,793 66 ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE NOTES--.4% 1,400M New York Times Co., 2.74%, 4/4/05 (cost $1,399,680) 1,399,680 35 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $310,257,347) 99.9% 395,863,619 9,994 Other Assets, Less Liabilities .1 231,588 6 ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $396,095,207 $10,000 ====================================================================================================================== * Non-income producing Summary of Abbreviations: ADR American Depositary Receipts
Fund Expenses FIRST INVESTORS SPECIAL SITUATIONS FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,116.38 $8.23 Hypothetical (5% annual return before expenses) $1,000.00 $1,017.15 $7.85 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,111.97 $11.90 Hypothetical (5% annual return before expenses) $1,000.00 $1,013.66 $11.35 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.56% for Class A shares and 2.26% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid during the period are net of expenses waived.
Portfolio Composition TOP TEN SECTORS (BAR CHART DATA:) Industrials 18.8% Information Technology 17.8% Consumer Discretionary 13.9% Health Care 12.1% Energy 9.2% Utilities 5.9% Financials 5.5% Telecommunication Services 4.9% Consumer Staples 4.4% Other 3.4% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments. Board Considerations of Advisory Contracts and Fees FIRST INVESTORS SPECIAL SITUATIONS FUND The Board of Trustees of the First Investors Series Fund approved a Subadvisory Agreement ("Subadvisory Agreement") among First Investors Management Company, Inc. ("FIMCO"), Paradigm Capital Management, Inc. ("PCM"), and the First Investors Series Fund for Special Situations Fund ("the Fund") at its meeting on November 18, 2004. The Board considered several factors when evaluating PCM and in approving the Subadvisory Agreement, including PCM's experience in managing assets in the small cap value style, its reputation, the past performance of an account managed by PCM in the small cap value style, its overall capabilities to perform the services under the Subadvisory Agreement and its willingness to perform those services for the Fund. The material factors considered by the Board included, but were not limited to the following. * Discussion of the nature, extent, and quality of the services to be provided by PCM. The Board proposed that PCM manage the investment operations and the assets of the Fund, subject to supervision by FIMCO and the Board. In determining that PCM's services would benefit the Fund, the Board considered that PCM's investment process, including its value-oriented style and the background and experience of the portfolio management team, could enhance the performance of the Fund. In addition, the Board considered PCM's investment resources and the adequacy of its compliance program. * Discussion of the performance of the Fund and PCM. The Board evaluated the Fund's performance relative to PCM's performance record for a small cap value managed account during the previous three calendar years since inception and for the one, two, and three year periods ended October 31, 2004. The Board noted that the performance of the PCM managed account was better than relevant indices for most of the time periods presented, including since inception and year-to-date performance periods. * Discussion of the costs of the services to be provided and profits to be realized by PCM and its affiliates from the relationship with the Fund. The Board considered the representation from PCM that the fee schedule in the Subadvisory Agreement is lower than the fee schedule for PCM's other subadvisory relationships. Since the subadvisory relationship with PCM is new, the Board did not consider the costs of the services to be provided and profits to be realized by PCM and its affiliates from the relationship with the Fund. * Discussion of the extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund investors. The Board noted that the fee paid to PCM is paid by FIMCO and not the Fund. However, the Board considered that FIMCO negotiated "breakpoints" in PCM's fee based on the levels of assets in the Fund and FIMCO's representation that it would not benefit economically from the proposed fee arrangement with PCM. * Discussion of the comparisons of the amounts to be paid under the Subadvisory Agreement with those under contracts between PCM and its other clients. The Board considered PCM's representation that the fee schedule for the Fund under the Subadvisory Agreement is lower than the fee schedule for PCM's other subadvisory relationships, which include a registered investment company and other institutional investors. * Discussion of the benefits to be derived by PCM from the relationship with the Fund. The Board considered the benefits accruing to PCM as a result of the subadvisory relationship with the Fund, including materially expanding the level of assets under management by PCM and potentially increased opportunities for soft dollar arrangements. The term soft dollars generally refers to arrangements where an investment adviser purchases brokerage and research services provided by broker-dealers with commissions from its clients' securities transactions.
Portfolio of Investments FIRST INVESTORS SPECIAL SITUATIONS FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--96.8% Consumer Discretionary--13.8% 99,800 Arbitron, Inc. $4,281,420 $188 124,500 Catalina Marketing Corporation 3,224,550 142 143,700 Dillard's, Inc. - Class "A" 3,865,530 170 119,200 Foot Locker, Inc. 3,492,560 153 182,400 Journal Communications, Inc. 3,018,720 133 55,700 Media General, Inc. 3,445,045 151 117,900 * Quiksilver, Inc. 3,422,637 150 73,600 Sherwin-Williams Company 3,237,664 142 115,300 * Zale Corporation 3,426,716 151 ---------------------------------------------------------------------------------------------------------------------- 31,414,842 1,380 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--4.4% 115,000 Flower Foods, Inc. 3,244,150 142 79,800 Lancaster Colony Corporation 3,395,490 149 112,908 Tootsie Roll Industries, Inc. 3,387,240 149 ---------------------------------------------------------------------------------------------------------------------- 10,026,880 440 ---------------------------------------------------------------------------------------------------------------------- Energy--9.2% 68,300 Ashland, Inc. 4,608,201 202 161,800 Chesapeake Energy Corporation 3,549,892 156 41,500 Kerr-McGee Corporation 3,250,695 143 55,300 Overseas Shipholding Group, Inc. 3,478,923 153 76,700 * Swift Energy Company 2,181,348 96 102,400 * Tesoro Corporation 3,790,848 166 ---------------------------------------------------------------------------------------------------------------------- 20,859,907 916 ---------------------------------------------------------------------------------------------------------------------- Financials--5.4% 121,500 Commerce Bancorp, Inc. 3,945,105 173 51,800 HCC Insurance Holdings, Inc. 1,873,088 82 174,900 MoneyGram International, Inc. 3,303,861 145 66,400 U.S.B. Holding Company, Inc. 1,473,416 64 43,300 Westcorp, Inc. 1,829,425 80 ---------------------------------------------------------------------------------------------------------------------- 12,424,895 544 ---------------------------------------------------------------------------------------------------------------------- Health Care--12.0% 142,100 * AmSurg Corporation 3,595,130 158 442,000 * BioScrip, Inc. 2,665,260 117 102,200 * Humana, Inc. 3,264,268 143 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Health Care (continued) 103,200 * LabOne, Inc. $3,558,336 $156 83,000 * Lincare Holdings, Inc. 3,671,090 161 102,200 * Magellan Health Services, Inc. 3,479,910 153 107,000 Matthews International Corporation - Class "A" 3,505,320 154 151,600 West Pharmaceutical Services, Inc. 3,623,240 159 ---------------------------------------------------------------------------------------------------------------------- 27,362,554 1,201 ---------------------------------------------------------------------------------------------------------------------- Industrials--18.7% 120,200 Angelica Corporation 3,365,600 148 32,000 Curtiss-Wright Corporation 1,824,000 80 147,200 * Dycom Industries, Inc. 3,384,128 149 79,200 HNI Corporation 3,560,040 156 63,800 * Jacobs Engineering Group, Inc. 3,312,496 146 175,100 * Kansas City Southern 3,372,426 148 86,200 * NCI Building Systems, Inc. 3,327,320 146 46,500 Oshkosh Truck Corporation 3,812,535 167 121,700 United Industrial Corporation 3,604,754 158 179,200 Wabtec Corporation 3,671,808 161 70,400 * Washington Group International, Inc. 3,167,296 139 124,900 Watson Wyatt & Company Holdings 3,397,280 149 38,400 Woodward Governor Company 2,753,280 121 ---------------------------------------------------------------------------------------------------------------------- 42,552,963 1,868 ---------------------------------------------------------------------------------------------------------------------- Information Technology--17.7% 192,000 * Avnet, Inc. 3,536,640 155 107,300 * Cabot Microelectronics Corporation 3,367,074 148 230,100 * Convergys Corporation 3,435,393 151 159,600 * eFunds Corporation 3,562,272 157 99,000 Imation Corporation 3,440,250 151 123,400 * Intergraph Corporation 3,555,154 156 78,500 * International Rectifier Corporation 3,571,750 157 269,600 * MEMC Electronic Materials, Inc. 3,626,120 159 144,800 * Overland Storage, Inc. 2,125,664 93 89,600 * Rogers Corporation 3,584,000 157 389,600 * Tyler Technologies, Inc. 2,964,856 130 93,100 * Varian Semiconductor Equipment Associates, Inc. 3,538,731 156 ---------------------------------------------------------------------------------------------------------------------- 40,307,904 1,770 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS SPECIAL SITUATIONS FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested Shares or For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Materials--1.5% 147,300 * Pactiv Corporation $3,439,455 $151 ---------------------------------------------------------------------------------------------------------------------- Other--3.3% 121,900 iShares Russell 2000 Growth Index 7,618,750 334 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--4.9% 95,800 CenturyTel, Inc. 3,146,072 138 333,500 * Premiere Global Services, Inc. 3,775,220 166 51,300 Telephone & Data Systems, Inc. 4,186,080 184 ---------------------------------------------------------------------------------------------------------------------- 11,107,372 488 ---------------------------------------------------------------------------------------------------------------------- Utilities--5.9% 121,300 Atmos Energy Corporation 3,275,100 144 261,800 * CMS Energy Corporation 3,413,872 150 185,200 Duquesne Light Holdings, Inc. 3,318,784 146 160,100 Pepco Holdings, Inc. 3,360,499 147 ---------------------------------------------------------------------------------------------------------------------- 13,368,255 587 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $206,979,010) 220,483,777 9,679 ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--2.6% Federal Home Loan Bank: $3,000M 2.42%, 4/4/05 2,999,395 132 3,000M 2.58%, 4/5/05 2,999,140 132 ---------------------------------------------------------------------------------------------------------------------- Total Value of Short-Term U.S. Government Agency Obligations (cost $5,998,535) 5,998,535 264 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $212,977,545) 99.4% 226,482,312 9,943 Other Assets, Less Liabilities .6 1,301,846 57 ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $227,784,158 $10,000 ====================================================================================================================== * Non-income producing See notes to financial statements
Fund Expenses FIRST INVESTORS FOCUSED EQUITY FUND The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,055.93 $8.92 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.25 $8.75 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,053.69 $12.49 Hypothetical (5% annual return before expenses) $1,000.00 $1,012.76 $12.24 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.74% for Class A shares and 2.44% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition BY SECTOR (BAR CHART DATA:) Information Technology 16.3% Financials 16.0% Health Care 16.0% Industrials 15.2% Energy 10.3% Consumer Discretionary 9.5% Consumer Staples 9.5% Materials 4.2% Telecommunication Services 2.0% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS FOCUSED EQUITY FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--99.1% Consumer Discretionary--9.5% 23,900 * Comcast Corporation - Special Class "A" $798,260 $137 23,100 Lowe's Companies, Inc. 1,318,779 227 142,300 * Time Warner, Inc. 2,497,365 429 25,400 Viacom, Inc. - Class "B" 884,682 152 ---------------------------------------------------------------------------------------------------------------------- 5,499,086 945 ---------------------------------------------------------------------------------------------------------------------- Consumer Staples--9.5% 20,800 Altria Group, Inc. 1,360,112 234 16,200 General Mills, Inc. 796,230 137 28,700 PepsiCo, Inc. 1,521,961 262 35,300 Procter & Gamble Company 1,870,900 321 ---------------------------------------------------------------------------------------------------------------------- 5,549,203 954 ---------------------------------------------------------------------------------------------------------------------- Energy--10.3% 25,800 ConocoPhillips 2,782,272 478 21,000 GlobalSantaFe Corporation 777,840 134 9,200 Noble Energy, Inc. 625,784 107 25,900 Schlumberger, Ltd. 1,825,432 314 ---------------------------------------------------------------------------------------------------------------------- 6,011,328 1,033 ---------------------------------------------------------------------------------------------------------------------- Financials--16.0% 13,220 American International Group, Inc. 732,520 126 51,700 Bank of America Corporation 2,279,970 392 52,000 Citigroup, Inc. 2,336,880 402 5,000 Golden West Financial Corporation 302,500 52 27,200 Merrill Lynch & Company, Inc. 1,539,520 264 13,600 Principal Financial Group, Inc. 523,464 90 28,984 St. Paul Travelers Companies, Inc. 1,064,582 183 12,700 State Street Corporation 555,244 95 ---------------------------------------------------------------------------------------------------------------------- 9,334,680 1,604 ---------------------------------------------------------------------------------------------------------------------- Health Care--16.0% 34,000 Abbott Laboratories 1,585,080 272 30,000 Baxter International, Inc. 1,019,400 175 16,300 Eli Lilly & Company 849,230 146 11,200 * Genzyme Corporation 641,088 110 12,600 HCA, Inc. 674,982 116 27,600 Medtronic, Inc. 1,406,220 242 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Health Care (continued) 39,500 Pfizer, Inc. $1,037,665 $178 47,500 Schering-Plough Corporation 862,125 148 28,900 Wyeth 1,219,002 210 ---------------------------------------------------------------------------------------------------------------------- 9,294,792 1,597 ---------------------------------------------------------------------------------------------------------------------- Industrials--15.2% 17,100 Boeing Company 999,666 172 5,500 Caterpillar, Inc. 502,920 86 11,600 CSX Corporation 483,140 83 9,300 General Dynamics Corporation 995,565 171 61,600 General Electric Company 2,221,296 382 11,300 Ingersoll-Rand Company - Class "A" 900,045 155 44,300 Tyco International, Ltd. 1,497,340 257 12,500 United Technologies Corporation 1,270,750 218 ---------------------------------------------------------------------------------------------------------------------- 8,870,722 1,524 ---------------------------------------------------------------------------------------------------------------------- Information Technology--16.4% 35,000 Analog Devices, Inc. 1,264,900 217 54,500 * Cisco Systems, Inc. 975,005 168 19,700 Computer Associates International, Inc. 533,870 92 30,400 * Dell, Inc. 1,167,968 201 6,200 * Electronic Arts, Inc. 321,036 55 26,200 First Data Corporation 1,029,922 177 110,100 Microsoft Corporation 2,661,117 457 25,700 Texas Instruments, Inc. 655,093 113 26,600 * Yahoo!, Inc. 901,740 155 ---------------------------------------------------------------------------------------------------------------------- 9,510,651 1,635 ---------------------------------------------------------------------------------------------------------------------- Materials--4.2% 13,900 Air Products & Chemicals, Inc. 879,731 151 31,000 Du Pont (E.I.) de Nemours & Company 1,588,440 273 ---------------------------------------------------------------------------------------------------------------------- 2,468,171 424 ---------------------------------------------------------------------------------------------------------------------- Telecommunication Services--2.0% 40,000 * Nextel Communications, Inc. - Class "A" 1,136,800 195 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $53,674,958) 57,675,433 9,911 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS FOCUSED EQUITY FUND March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--.9% $546M UBS Securities, 2.66%, dated 3/31/05, to be repurchased at $546,040 on 4/1/05 (collateralized by U.S. Treasury Bonds, 6.125%, 8/15/29, valued at $558,945) (cost $546,000) $546,000 $93 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $54,220,958) 100.0% 58,221,433 10,004 Excess of Liabilities Over Other Assets .0 (26,991) (4) ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $58,194,442 $10,000 ====================================================================================================================== * Non-income producing See notes to financial statements
Fund Expenses FIRST INVESTORS GLOBAL 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 the costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.
--------------------------------------------------------------------------------------------- Beginning Ending Account Account Expenses Paid Value Value During Period (10/1/04) (3/31/05) (10/1/04-3/31/05)* --------------------------------------------------------------------------------------------- Expense Example - Class A Shares Actual $1,000.00 $1,092.75 $9.24 Hypothetical (5% annual return before expenses) $1,000.00 $1,016.10 $8.90 --------------------------------------------------------------------------------------------- Expense Example - Class B Shares Actual $1,000.00 $1,088.77 $12.86 Hypothetical (5% annual return before expenses) $1,000.00 $1,012.61 $12.39 --------------------------------------------------------------------------------------------- * Expenses are equal to the annualized expense ratio of 1.77% for Class A shares and 2.47% for Class B shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Portfolio Composition TOP TEN COUNTRIES (BAR CHART DATA:) United States 50.7% Japan 9.0% France 8.8% United Kingdom 7.7% Canada 4.1% Switzerland 3.3% Netherlands 2.2% Germany 2.2% Italy 1.9% Sweden 1.7% Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2005, and are based on the total value of investments.
Portfolio of Investments FIRST INVESTORS GLOBAL FUND, INC. March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--98.8% United States--49.4% 53,600 Abbott Laboratories $2,498,832 $105 41,100 Air Products & Chemicals, Inc. 2,601,219 109 49,500 Alcoa, Inc. 1,504,305 63 31,900 Altria Group, Inc. 2,085,941 88 11,700 American Express Company 601,029 25 19,753 American International Group, Inc. 1,094,514 46 84,100 Bank of America Corporation 3,708,810 156 31,800 Baxter International, Inc. 1,080,564 45 25,500 Boeing Company 1,490,730 63 16,200 * Cablevision Systems Corporation Group - Class "A" 454,410 19 8,300 Caterpillar, Inc. 758,952 32 82,100 * Cisco Systems, Inc. 1,468,769 62 68,200 * Citadel Broadcasting Corporation 936,386 39 78,749 Citigroup, Inc. 3,538,980 149 30,400 * Comcast Corporation - Class "A" 1,015,360 43 29,800 Computer Associates International, Inc. 807,580 34 39,400 ConocoPhillips 4,248,896 179 22,600 CSX Corporation 941,290 40 45,300 * Dell, Inc. 1,740,426 73 40,000 DuPont (E.I.) de Nemours & Company 2,049,600 86 20,900 * Electronic Arts, Inc. 1,082,202 46 23,700 Eli Lilly & Company 1,234,770 52 2,800 FedEx Corporation 263,060 11 39,300 First Data Corporation 1,544,883 65 38,100 * Fiserv, Inc. 1,516,380 64 17,000 Franklin Resources, Inc. 1,167,050 49 9,700 Freddie Mac 613,040 26 14,300 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 566,423 24 31,200 Gap, Inc. 681,408 29 9,100 General Dynamics Corporation 974,155 41 93,000 General Electric Company 3,353,580 141 17,300 General Mills, Inc. 850,295 36 33,300 * Genzyme Corporation 1,906,092 80 18,200 Gillette Company 918,736 39 54,800 GlobalSantaFe Corporation 2,029,792 85 17,300 Golden West Financial Corporation 1,046,650 44 29,800 HCA, Inc. 1,596,386 67 40,000 * Health Net, Inc. 1,308,400 55 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- United States (continued) 26,100 Ingersoll-Rand Company, Ltd. - Class "A" $2,078,865 $87 52,760 Intel Corporation 1,225,615 51 22,600 Kellogg Company 977,902 41 29,100 * Lamar Advertising Company - Class "A" 1,172,439 49 34,800 Lowe's Companies, Inc. 1,986,732 84 29,900 Market 2000+ Holders Trust 1,606,826 68 15,800 Maxim Integrated Products, Inc. 645,746 27 41,300 Medtronic, Inc. 2,104,235 89 39,900 Merrill Lynch & Company, Inc. 2,258,340 95 26,500 Michaels Stores, Inc. 961,950 40 165,700 Microsoft Corporation 4,004,969 168 29,700 Motorola, Inc. 444,609 19 59,900 * Nextel Communications, Inc. - Class "A" 1,702,358 72 49,100 Noble Energy, Inc. 3,339,782 140 33,500 Northern Trust Corporation 1,455,240 61 42,700 PepsiCo, Inc. 2,264,381 95 52,625 Pfizer, Inc. 1,382,459 58 30,500 PG&E Corporation 1,040,050 44 67,500 * Polycom, Inc. 1,144,125 48 11,800 Precision Castparts Corporation 908,718 38 21,400 Principal Financial Group, Inc. 823,686 35 35,100 Procter & Gamble Company 1,860,300 78 19,400 Rockwell Collins, Inc. 923,246 39 40,100 * Safeway, Inc. 743,053 31 123,400 Schering-Plough Corporation 2,239,710 94 25,200 Schlumberger, Ltd. 1,776,096 75 42,825 St. Paul Travelers Companies, Inc. 1,572,962 66 26,900 Staples, Inc. 845,467 36 10,100 State Street Corporation 441,572 19 60,200 Symbol Technologies, Inc. 872,298 37 51,400 Texas Instruments, Inc. 1,310,186 55 206,800 * Time Warner, Inc. 3,629,340 153 66,500 Tyco International, Ltd. 2,247,700 95 19,100 United Technologies Corporation 1,941,706 82 39,200 Viacom, Inc. - Class "B" 1,365,336 57 11,700 Wal-Mart Stores, Inc. 586,287 25 41,000 Wyeth 1,729,380 73 40,100 * Yahoo!, Inc. 1,359,390 57 16,700 Zions Bancorporation 1,152,634 48 ---------------------------------------------------------------------------------------------------------------------- 117,405,585 4,939 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS GLOBAL FUND, INC. March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Japan--9.0% 46,000 Canon, Inc. $2,472,887 $104 50,000 Eisai Company, Ltd. 1,701,571 72 44,100 Electric Power Development Company, Ltd. 1,360,602 57 11,500 Fast Retailing Company, Ltd. 697,784 29 270 Japan Tobacco, Inc. 3,003,927 126 5,600 Keyence Corporation 1,300,523 55 10,300 Nidec Corporation 1,285,574 54 10,900 ORIX Corporation 1,393,072 59 56,000 Sankyo Company, Ltd. 1,183,246 50 29,600 Shin-Etsu Chemical Company, Ltd. 1,123,560 47 27,300 Sony Corporation 1,089,856 46 23,200 Takeda Pharmaceutical Co., Ltd.. 1,108,377 47 23,610 Takefuji Corporation 1,593,719 67 393 * UFJ Holdings, Inc. 2,072,289 87 ---------------------------------------------------------------------------------------------------------------------- 21,386,987 900 ---------------------------------------------------------------------------------------------------------------------- France--8.8% 9,200 Air Liquid SA 1,696,663 71 46,367 Axa 1,238,358 52 29,166 Essilor International SA 2,113,231 89 74,008 European Aeronautic Defence and Space Company 2,218,009 93 63,583 France Telecom SA 1,908,878 80 27,469 Sanofi - Aventis 2,322,284 98 45,881 Societe Television Francaise 1 1,454,950 61 101,352 STMicroelectronics NV 1,691,308 71 10,344 Total SA 2,426,560 102 2,353 Unibail 279,660 12 116,400 * Vivendi Universal SA 3,574,719 151 ---------------------------------------------------------------------------------------------------------------------- 20,924,620 880 ---------------------------------------------------------------------------------------------------------------------- United Kingdom--7.7% 79,200 AstraZeneca PLC 3,121,846 131 337,500 Centrica PLC 1,471,592 62 345,254 EMI Group PLC 1,541,283 65 54,571 Imperial Tobacco Group PLC 1,432,307 60 598 * mm 02 PLC (ADR)** 13,475 1 105,339 Reckitt Benckiser PLC 3,348,013 141 105,508 Royal Bank of Scotland Group PLC 3,357,372 141 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- United Kingdom (continued) 136,600 Vedanta Resources PLC $1,215,748 $51 1,071,012 Vodafone Group PLC 2,843,431 120 ---------------------------------------------------------------------------------------------------------------------- 18,345,067 772 ---------------------------------------------------------------------------------------------------------------------- Canada--4.1% 53,800 Canadian Pacific Railway, Ltd. 1,945,489 82 21,217 EnCana Corporation 1,498,176 63 38,400 Fairmont Hotels & Resorts, Inc. 1,272,576 54 49,600 Petro-Canada 2,880,026 121 60,000 Talisman Energy, Inc. 2,052,651 86 ---------------------------------------------------------------------------------------------------------------------- 9,648,918 406 ---------------------------------------------------------------------------------------------------------------------- Switzerland--3.3% 9,800 Nestle SA - Registered 2,690,704 113 14,530 Roche Holding AG - Genusscheine 1,562,837 66 29,900 UBS AG - Registered 2,533,686 106 6,642 * Zurich Financial Services AG - Registered 1,169,692 49 ---------------------------------------------------------------------------------------------------------------------- 7,956,919 334 ---------------------------------------------------------------------------------------------------------------------- Netherlands--2.3% 92,400 Aegon NV 1,250,109 52 88,072 * ASML Holding NV 1,491,446 63 310,800 * Koninklijke Ahold NV 2,609,389 110 ---------------------------------------------------------------------------------------------------------------------- 5,350,944 225 ---------------------------------------------------------------------------------------------------------------------- Germany--2.2% 72,800 * Bayerische Hypo-und Vereinsbank AG 1,783,479 75 111,200 * Deutsche Telekom AG - Registered 2,227,064 94 9,635 Muenchener Rueckversicherungs - Gesellschaft AG - Registered 1,160,798 49 ---------------------------------------------------------------------------------------------------------------------- 5,171,341 218 ---------------------------------------------------------------------------------------------------------------------- Italy--1.9% 269,540 Banca Intesa SpA 1,373,202 58 88,070 Eni SpA 2,292,631 96 108,300 * Geox SpA 945,851 40 ---------------------------------------------------------------------------------------------------------------------- 4,611,684 194 ---------------------------------------------------------------------------------------------------------------------- Portfolio of Investments (continued) FIRST INVESTORS GLOBAL FUND, INC. March 31, 2005 ---------------------------------------------------------------------------------------------------------------------- Amount Invested For Each $10,000 of Shares Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Sweden--1.7% 27,850 AB SKF - Class "B" $1,306,853 $55 111,580 Swedish Match AB 1,370,353 58 483,070 * Telefonaktiebolaget LM Ericsson AB - Class "B" 1,364,876 57 ---------------------------------------------------------------------------------------------------------------------- 4,042,082 170 ---------------------------------------------------------------------------------------------------------------------- Taiwan--1.5% 79,100 AU Optronics Corporation (ADR) 1,159,606 49 271,519 Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) 2,302,481 97 ---------------------------------------------------------------------------------------------------------------------- 3,462,087 146 ---------------------------------------------------------------------------------------------------------------------- Hong Kong--1.4% 324,000 Esprit Holdings, Ltd. 2,212,107 93 130,000 Sun Hung Kai Properties, Ltd. 1,179,265 50 ---------------------------------------------------------------------------------------------------------------------- 3,391,372 143 ---------------------------------------------------------------------------------------------------------------------- Spain--1.2% 169,108 Banco Bilbao Vizcaya Argentaria SA 2,760,445 116 ---------------------------------------------------------------------------------------------------------------------- Brazil--.7% 27,200 Companhia Vale Do Rio Doce (ADR) 859,792 36 20,100 Petroleo Brasileiro SA - Petrobras (ADR) 888,018 37 ---------------------------------------------------------------------------------------------------------------------- 1,747,810 73 ---------------------------------------------------------------------------------------------------------------------- Mexico--.7% 48,100 Cemex SA de CV (ADR) 1,743,625 73 ---------------------------------------------------------------------------------------------------------------------- Belgium--.5% 31,183 * Belgacom SA 1,292,807 54 ---------------------------------------------------------------------------------------------------------------------- Turkey--.5% 71,300 Turkcell Iletisim Hizmetleri AS (ADR) 1,217,804 51 ---------------------------------------------------------------------------------------------------------------------- Denmark--.5% 24,320 Carlsberg A/S - Class "B" 1,209,169 51 ---------------------------------------------------------------------------------------------------------------------- Ireland--.5% 26,100 * Ryanair Holdings PLC (ADR) 1,142,397 48 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Amount Shares, Invested Warrants or For Each Principal $10,000 of Amount Security Value Net Assets ---------------------------------------------------------------------------------------------------------------------- Indonesia--.5% 59,200 PT Telekomunikasi Indonesia (ADR) $1,109,408 $47 ---------------------------------------------------------------------------------------------------------------------- Austria--.4% 22,100 Wienerberger AG 1,008,436 42 ---------------------------------------------------------------------------------------------------------------------- Total Value of Common Stocks (cost $204,003,522) 234,929,507 9,882 ---------------------------------------------------------------------------------------------------------------------- WARRANTS--.0% United States 5,142 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 3,445 -- ---------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--.0% Brazil 23,000 * Vale Do Rio Doce - Class "B" (cost $0) 375 -- ---------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--1.5% $3,531M UBS Securities, 2.66%, dated 3/31/05, to be repurchased at $3,531,261 on 4/1/05 (collateralized by U.S. Treasury Bonds, 12%, 8/15/13, valued at $3,608,189) (cost $3,531,000) 3,531,000 149 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments (cost $207,534,522) 100.3% 238,464,327 10,031 Excess of Liabilities Over Other Assets (.3) (734,378) (31) ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $237,729,949 $10,000 ====================================================================================================================== * Non-income producing ** Security valued at fair value (see Note 1A) Summary of Abbreviations: ADR American Depositary Receipts See notes to financial statements
Portfolio of Investments (continued) FIRST INVESTORS GLOBAL FUND, INC. March 31, 2005 Sector diversification of the portfolio was as follows: ---------------------------------------------------------------------------------------------------------------------- Percentage Sector of Net Assets Value ---------------------------------------------------------------------------------------------------------------------- Energy 9.9% $23,432,627 Pharmaceuticals & Biotechnology 9.2 21,991,404 Capital Goods 8.1 19,210,950 Banks 7.5 17,867,921 Food, Beverage & Tobacco 6.7 15,884,979 Diversified Financials 6.6 15,806,374 Media 6.4 15,144,223 Materials 5.6 13,361,310 Technology Hardware & Equipment 5.6 13,257,139 Telecommunication Services 5.2 12,315,224 Software & Services 4.3 10,315,404 Semiconductors & Semiconductor Equipment 3.6 8,666,782 Health Care Equipment & Services 3.5 8,202,816 Insurance 3.1 7,486,433 Retailing 3.1 7,385,448 Household & Personal Products 2.6 6,127,049 Transportation 1.8 4,292,236 Food & Staples Retailing 1.7 3,938,729 Utilities 1.6 3,872,244 Consumer Durables & Apparel 0.9 2,035,708 Pooled Vehicle 0.7 1,606,826 Real Estate 0.6 1,458,925 Hotels, Restaurants & Leisure 0.5 1,272,576 Repurchase Agreement 1.5 3,531,000 ---------------------------------------------------------------------------------------------------------------------- Total Value of Investments 100.3 238,464,327 Excess of Liabilities Over Other Assets (.3) (734,378) ---------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $237,729,949 ====================================================================================================================== See notes to financial statements
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Statements of Assets and Liabilities FIRST INVESTORS March 31, 2005 ------------------------------------------------------------------------------------------------------------------------------ TOTAL GROWTH & ALL-CAP RETURN VALUE BLUE CHIP INCOME GROWTH ------------------------------------------------------------------------------------------------------------------------------ Assets Investments in securities: At identified cost $258,976,164 $193,899,778 $379,603,715 $517,820,761 $149,247,012 ============ ============ ============ ============ ============ At value (Note 1A) $293,764,144 $247,560,911 $482,469,036 $638,116,211 $169,996,281 Cash 500,593 9,792,646 539,267 2,033,600 32,059 Receivables: Investment securities sold 1,345,397 229,452 2,938,812 4,543,660 803,286 Dividends and interest 1,154,290 557,217 593,505 526,461 60,584 Shares sold 667,973 924,817 334,869 858,507 257,214 Other assets 41,670 40,524 79,074 104,414 32,017 ------------ ------------ ------------ ------------ ------------ Total Assets 297,474,067 259,105,567 486,954,563 646,182,853 171,181,441 ------------ ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased 2,151,256 671,490 5,024,583 7,393,907 658,273 Shares redeemed 362,131 236,686 957,469 698,541 174,614 Dividends payable 17,220 14,007 -- 8,227 -- Accrued advisory fees 188,024 163,152 312,083 396,418 109,263 Accrued shareholder servicing costs 69,028 66,420 131,601 157,057 61,663 Accrued expenses 7,395 -- -- -- 1,976 ------------ ------------ ------------ ------------ ------------ Total Liabilities 2,795,054 1,151,755 6,425,736 8,654,150 1,005,789 ------------ ------------ ------------ ------------ ------------ Net Assets $294,679,013 $257,953,812 $480,528,827 $637,528,703 $170,175,652 ============ ============ ============ ============ ============ Net Assets Consist of: Capital paid in $279,055,344 $260,985,058 $499,164,564 $578,076,627 $160,780,723 Undistributed net investment income (deficit) (360,175) 488,526 1,767,611 1,280,071 (372,241) Accumulated net realized loss on investments and foreign currency transactions (18,804,136) (57,180,905) (123,268,669) (62,123,445) (10,982,099) Net unrealized appreciation in value of investments and foreign currency transactions 34,787,980 53,661,133 102,865,321 120,295,450 20,749,269 ------------ ------------ ------------ ------------ ------------ Total $294,679,013 $257,953,812 $480,528,827 $637,528,703 $170,175,652 ============ ============ ============ ============ ============ Net Assets: Class A $257,364,786 $232,133,431 $423,311,638 $553,345,976 $148,515,983 Class B $37,314,227 $25,820,381 $57,217,189 $84,182,727 $21,659,669 Shares outstanding (Note 5): Class A 19,034,599 35,948,815 21,150,851 42,408,215 18,488,909 Class B 2,799,008 4,059,543 3,045,403 6,745,534 2,780,564 Net asset value and redemption price per share - Class A $13.52 $6.46 $20.01 $13.05 $8.03 ============ ============ ============ ============ ============ Maximum offering price per share - Class A (Net asset value/.9425)* $14.34 $6.85 $21.23 $13.85 $8.52 ============ ============ ============ ============ ============ Net asset value and offering price per share - Class B (Note 5) $13.33 $6.36 $18.79 $12.48 $7.79 ============ ============ ============ ============ ============
Statements of Assets and Liabilities FIRST INVESTORS March 31, 2005 -------------------------------------------------------------------------------------------------------------- MID-CAP SPECIAL FOCUSED OPPORTUNITY SITUATIONS EQUITY GLOBAL -------------------------------------------------------------------------------------------------------------- Assets Investments in securities: At identified cost $310,257,347 $212,977,545 $54,220,958 $207,534,522 ============ ============ ============ ============ At value (Note 1A) $395,863,619 $226,482,312 $58,221,433 $238,464,327 Cash 915,239 818,946 4,407 31,614 Receivables: Investment securities sold 582,809 2,539,524 37,396 224,144 Dividends and interest 177,068 81,459 53,457 543,717 Shares sold 940,946 165,919 41,042 260,692 Forward currency contracts (Note 4) -- -- -- 9,252 Other assets 53,147 37,244 15,897 56,736 ------------ ------------ ------------ ------------ Total Assets 398,532,828 230,125,404 58,373,632 239,590,482 ------------ ------------ ------------ ------------ Liabilities Payables: Investment securities purchased 1,817,961 1,914,328 -- 1,377,667 Shares redeemed 247,800 200,049 111,973 181,919 Dividends payable -- -- -- -- Accrued advisory fees 251,075 146,907 37,859 205,070 Accrued shareholder servicing costs 120,785 79,962 29,358 66,554 Accrued expenses -- -- -- 29,323 ------------ ------------ ------------ ------------ Total Liabilities 2,437,621 2,341,246 179,190 1,860,533 ------------ ------------ ------------ ------------ Net Assets $396,095,207 $227,784,158 $58,194,442 $237,729,949 ============ ============ ============ ============ Net Assets Consist of: Capital paid in $312,684,832 $230,168,025 $79,156,717 $221,287,178 Undistributed net investment income (deficit) (539,467) (760,376) 167,287 (131,931) Accumulated net realized loss on investments and foreign currency transactions (1,656,430) (15,128,258) (25,130,037) (14,362,733) Net unrealized appreciation in value of investments and foreign currency transactions 85,606,272 13,504,767 4,000,475 30,937,435 ------------ ------------ ------------ ------------ Total $396,095,207 $227,784,158 $58,194,442 $237,729,949 ============ ============ ============ ============ Net Assets: Class A $343,391,359 $206,495,742 $48,293,164 $223,061,163 Class B $52,703,848 $21,288,416 $9,901,278 $14,668,786 Shares outstanding (Note 5): Class A 13,379,491 10,983,977 5,850,181 34,449,108 Class B 2,217,436 1,232,051 1,249,209 2,442,660 Net asset value and redemption price per share - Class A $25.67 $18.80 $8.25 $6.48 ============ ============ ============ ============ Maximum offering price per share - Class A (Net asset value/.9425)* $27.24 $19.95 $8.75 $6.88 ============ ============ ============ ============ Net asset value and offering price per share - Class B (Note 5) $23.77 $17.28 $7.93 $6.01 ============ ============ ============ ============ * On purchases of $100,000 or more, the sales charge is reduced. See notes to financial statements
Statements of Operations FIRST INVESTORS Six Months Ended March 31, 2005 ------------------------------------------------------------------------------------------------------------------------------ TOTAL GROWTH & ALL-CAP RETURN VALUE BLUE CHIP INCOME GROWTH ------------------------------------------------------------------------------------------------------------------------------ Investment Income Dividends $2,291,558 $3,082,807 $5,372,062 $7,645,788 $920,002 Interest 2,459,286 218,454 115,709 12,366 73,090 ------------ ------------ ------------ ------------ ------------ Total income 4,750,844 3,301,261 5,487,771 7,658,154 993,092 ------------ ------------ ------------ ------------ ------------ Expenses (Notes 1 and 3): Advisory fees 1,312,783 877,223 2,083,125 2,251,525 619,339 Distribution plan expenses - Class A 370,259 313,848 643,145 799,678 215,330 Distribution plan expenses - Class B 183,760 123,469 301,329 424,049 108,018 Shareholder servicing costs 368,911 348,213 775,095 875,462 350,632 Professional fees 18,116 20,350 33,441 30,439 18,060 Custodian fees 14,529 12,484 29,811 24,668 7,838 Registration fees 23,092 15,722 14,837 24,351 15,851 Reports to shareholders 18,189 11,215 36,568 15,673 15,839 Directors/trustees' fees 5,197 4,227 9,036 11,058 2,533 Other expenses 25,815 17,854 50,719 52,756 12,990 ------------ ------------ ------------ ------------ ------------ Total expenses 2,340,651 1,744,605 3,977,106 4,509,659 1,366,430 Less: Expenses waived (249,315) -- (249,315) -- -- Expenses paid indirectly (7,060) (7,290) (7,631) (7,006) (1,097) ------------ ------------ ------------ ------------ ------------ Net expenses 2,084,276 1,737,315 3,720,160 4,502,653 1,365,333 ------------ ------------ ------------ ------------ ------------ Net investment income (loss) 2,666,568 1,563,946 1,767,611 3,155,501 (372,241) ------------ ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions (Note 2): Net realized gain on investments and foreign currency transactions 5,771,957 2,634,961 16,696,639 21,477,193 6,800,666 Net unrealized appreciation (depreciation) of investments and foreign currency transactions 5,529,298 15,458,840 14,690,307 22,046,686 (2,292,492) ------------ ------------ ------------ ------------ ------------ Net gain on investments and foreign currency transactions 11,301,255 18,093,801 31,386,946 43,523,879 4,508,174 ------------ ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $13,967,823 $19,657,747 $33,154,557 $46,679,380 $4,135,933 ============ ============ ============ ============ ============
Statements of Operations FIRST INVESTORS Six Months Ended March 31, 2005 -------------------------------------------------------------------------------------------------------------- MID-CAP SPECIAL FOCUSED OPPORTUNITY SITUATIONS EQUITY GLOBAL -------------------------------------------------------------------------------------------------------------- Investment Income Dividends $2,221,557 $1,037,619 $836,812 $1,954,802+ Interest 72,636 48,425 9,313 68,607 ------------ ------------ ------------ ------------ Total income 2,294,193 1,086,044 846,125 2,023,409 ------------ ------------ ------------ ------------ Expenses (Notes 1 and 3): Advisory fees 1,609,994 1,102,659 226,680 1,189,033 Distribution plan expenses - Class A 469,286 308,697 74,876 333,854 Distribution plan expenses - Class B 249,950 108,801 52,654 76,185 Shareholder servicing costs 651,151 465,477 169,815 385,785 Professional fees 23,207 33,135 7,375 29,787 Custodian fees 17,802 13,377 4,974 57,196 Registration fees 16,267 23,638 16,311 27,839 Reports to shareholders 20,277 17,250 5,798 14,437 Directors/trustees' fees 4,902 4,136 1,125 5,463 Other expenses 27,338 23,904 2,353 37,207 ------------ ------------ ------------ ------------ Total expenses 3,090,174 2,101,074 561,961 2,156,786 Less: Expenses waived (249,315) (249,315) -- -- Expenses paid indirectly (7,199) (5,339) (461) (1,446) ------------ ------------ ------------ ------------ Net expenses 2,833,660 1,846,420 561,500 2,155,340 ------------ ------------ ------------ ------------ Net investment income (loss) (539,467) (760,376) 284,625 (131,931) ------------ ------------ ------------ ------------ Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions (Note 2): Net realized gain on investments and foreign currency transactions 10,677,761 46,061,749 1,792,538 16,959,574 Net unrealized appreciation (depreciation) of investments and foreign currency transactions 33,055,690 (21,097,559) 1,246,237 3,757,795 ------------ ------------ ------------ ------------ Net gain on investments and foreign currency transactions 43,733,451 24,964,190 3,038,775 20,717,369 ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting from Operations $43,193,984 $24,203,814 $3,323,400 $20,585,438 ============ ============ ============ ============ + Net of $66,142 foreign taxes withheld See notes to financial statements
Statements of Changes in Net Assets FIRST INVESTORS ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN VALUE ---------------------------- ---------------------------- 10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to 3/31/2005 9/30/2004 3/31/2005 9/30/2004 ------------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations Net investment income (loss) $2,666,568 $3,537,896 $1,563,946 $2,050,767 Net realized gain on investments 5,771,957 8,318,115 2,634,961 4,056,548 Net unrealized appreciation of investments 5,529,298 8,527,394 15,458,840 25,404,854 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 13,967,823 20,383,405 19,657,747 31,512,169 ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A (2,511,267) (3,344,902) (1,175,866) (1,866,906) Net investment income - Class B (250,550) (318,565) (56,379) (112,863 ------------ ------------ ------------ ------------ Total dividends (2,761,817) (3,663,467) (1,232,245) (1,979,769) ------------ ------------ ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 30,463,743 67,816,731 41,912,037 51,007,936 Reinvestment of dividends 2,470,502 3,288,426 1,147,573 1,814,820 Cost of shares redeemed (16,493,574) (31,026,815) (12,379,951) (19,645,255 ------------ ------------ ------------ ------------ 16,440,671 40,078,342 30,679,659 33,177,501 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 2,641,844 9,344,252 2,834,506 5,777,938 Reinvestment of dividends 248,959 316,238 55,835 111,791 Cost of shares redeemed (2,674,356) (4,776,454) (2,394,430) (4,941,142) ------------ ------------ ------------ ------------ 216,447 4,884,036 495,911 948,587 ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions 16,657,118 44,962,378 31,175,570 34,126,088 ------------ ------------ ------------ ------------ Net increase in net assets 27,863,124 61,682,316 49,601,072 63,658,488 Net Assets Beginning of period 266,815,889 205,133,573 208,352,740 144,694,252 ------------ ------------ ------------ ------------ End of period+ $294,679,013 $266,815,889 $257,953,812 $208,352,740 ============ ============ ============ ============ + Includes undistributed net investment income (deficit) of $(360,175) $(264,926) $488,526 $156,825 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 2,262,026 5,268,212 6,660,921 8,950,654 Issued for dividends reinvested 181,325 252,536 178,445 310,958 Redeemed (1,223,846) (2,410,468) (1,969,576) (3,441,839) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 1,219,505 3,110,280 4,869,790 5,819,773 ============ ============ ============ ============ Class B: Sold 199,997 737,727 460,314 1,032,020 Issued for dividends reinvested 18,519 24,614 8,814 19,427 Redeemed (202,439) (375,421) (389,017) (882,554) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding 16,077 386,920 80,111 168,893 ============ ============ ============ ============
Statements of Changes in Net Assets FIRST INVESTORS ------------------------------------------------------------------------------------------------------------------------------ BLUE CHIP GROWTH & INCOME ---------------------------- ---------------------------- 10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to 3/31/2005 9/30/2004 3/31/2005 9/30/2004 ------------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations Net investment income (loss) $1,767,611 $(283,785) $3,155,501 $2,341,691 Net realized gain on investments 16,696,639 25,571,788 21,477,193 36,796,326 Net unrealized appreciation of investments 14,690,307 14,361,975 22,046,686 27,753,508 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 33,154,557 39,649,978 46,679,380 66,891,525 ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A -- -- (2,817,255) (1,198,784) Net investment income - Class B -- -- (201,082) -- ------------ ------------ ------------ ------------ Total dividends -- -- (3,018,337) (1,198,784) ------------ ------------ ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 22,952,010 59,861,560 51,553,252 105,331,802 Reinvestment of dividends -- -- 2,784,314 1,186,897 Cost of shares redeemed (43,129,366) (62,755,398) (37,552,728) (63,168,639) ------------ ------------ ------------ ------------ (20,177,356) (2,893,838) 16,784,838 43,350,060 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 2,004,799 8,311,100 4,459,244 14,981,290 Reinvestment of dividends -- -- 200,260 -- Cost of shares redeemed (9,779,691) (15,084,253) (9,936,356) (17,923,509) ------------ ------------ ------------ ------------ (7,774,892) (6,773,153) (5,276,852) (2,942,219) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (27,952,248) (9,666,991) 11,507,986 40,407,841 ------------ ------------ ------------ ------------ Net increase in net assets 5,202,309 29,982,987 55,169,029 106,100,582 Net Assets Beginning of period 475,326,518 445,343,531 582,359,674 476,259,092 ------------ ------------ ------------ ------------ End of period+ $480,528,827 $475,326,518 $637,528,703 $582,359,674 ============ ============ ============ ============ + Includes undistributed net investment income (deficit) of $1,767,611 $-- $1,280,071 $1,142,907 ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 1,156,532 3,172,176 4,021,823 8,833,243 Issued for dividends reinvested -- -- 211,453 97,777 Redeemed (2,175,666) (3,335,866) (2,929,318) (5,290,872) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (1,019,134) (163,690) 1,303,958 3,640,148 ============ ============ ============ ============ Class B: Sold 107,359 466,882 364,388 1,312,512 Issued for dividends reinvested -- -- 15,843 -- Redeemed (524,406) (846,873) (812,354) (1,568,845) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (417,047) (379,991) (432,123) (256,333) ============ ============ ============ ============
Statements of Changes in Net Assets FIRST INVESTORS ------------------------------------------------------------------------------------------------------------------------------ ALL-CAP GROWTH MID-CAP OPPORTUNITY ---------------------------- ---------------------------- 10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to 3/31/2005 9/30/2004 3/31/2005 9/30/2004 ------------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations Net investment income (loss) $(372,241) $(1,549,253) $(539,467) $(1,639,804) Net realized gain on investments 6,800,666 3,952,080 10,677,761 20,378,683 Net unrealized appreciation (depreciation) of investments (2,292,492) 12,347,189 33,055,690 24,729,598 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 4,135,933 14,750,016 43,193,984 43,468,477 ------------ ------------ ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 23,836,261 52,765,310 46,943,001 79,643,493 Cost of shares redeemed (9,274,948) (11,769,360) (18,305,721) (31,414,210) ------------ ------------ ------------ ------------ 14,561,313 40,995,950 28,637,280 48,229,283 ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 2,079,047 6,200,445 4,453,563 11,173,893 Cost of shares redeemed (1,301,246) (1,739,011) (3,741,288) (5,939,582) ------------ ------------ ------------ ------------ 777,801 4,461,434 712,275 5,234,311 ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions 15,339,114 45,457,384 29,349,555 53,463,594 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 19,475,047 60,207,400 72,543,539 96,932,071 Net Assets Beginning of period 150,700,605 90,493,205 323,551,668 226,619,597 ------------ ------------ ------------ ------------ End of period+ $170,175,652 $150,700,605 $396,095,207 $323,551,668 ============ ============ ============ ============ + Includes undistributed net investment income (deficit) of $(372,241) $-- $(539,467) $-- ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 2,920,654 6,871,429 1,907,816 3,631,663 Redeemed (1,134,100) (1,531,123) (744,200) (1,427,534) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding 1,786,554 5,340,306 1,163,616 2,204,129 ============ ============ ============ ============ Class B: Sold 262,103 827,213 194,834 548,606 Redeemed (165,191) (231,955) (163,511) (289,487) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding 96,912 595,258 31,323 259,119 ============ ============ ============ ============
Statements of Changes in Net Assets FIRST INVESTORS ------------------------------------------------------------------------------------------------------------------------------ SPECIAL SITUATIONS FOCUSED EQUITY ---------------------------- ---------------------------- 10/1/2004 to 10/1/2003 to 10/1/2004 to 10/1/2003 to 3/31/2005 9/30/2004 3/31/2005 9/30/2004 ------------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets From Operations Net investment income (loss) $(760,376) $(2,473,241) $284,625 $(268,089) Net realized gain on investments 46,061,749 26,478,497 1,792,538 1,822,147 Net unrealized appreciation (depreciation) of investments (21,097,559) (9,729,555) 1,246,237 3,279,568 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 24,203,814 14,275,701 3,323,400 4,833,626 ------------ ------------ ------------ ------------ Dividends to Shareholders Net investment income - Class A -- -- (111,522) -- Net investment income - Class B -- -- (5,816) -- ------------ ------------ ------------ ------------ Total dividends -- -- (117,338) -- ------------ ------------ ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 13,074,410 32,272,999 2,408,819 7,719,981 Reinvestment of dividends -- -- 110,993 -- Cost of shares redeemed (18,054,060) (24,508,853) (6,356,231) (10,216,270) ------------ ------------ ------------ ------------ (4,979,650) 7,764,146 (3,836,419) (2,496,289) ------------ ------------ ------------ ------------ Class B: Proceeds from shares sold 974,713 4,172,232 309,539 1,199,744 Reinvestment of dividends -- -- 5,739 -- Cost of shares redeemed (2,555,461) (5,431,921) (1,574,350) (2,128,058) ------------ ------------ ------------ ------------ (1,580,748) (1,259,689) (1,259,072) (928,314) ------------ ------------ ------------ ------------ Net increase (decrease) from share transactions (6,560,398) 6,504,457 (5,095,491) (3,424,603) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 17,643,416 20,780,158 (1,889,429) 1,409,023 Net Assets Beginning of period 210,140,742 189,360,584 60,083,871 58,674,848 ------------ ------------ ------------ ------------ End of period+ $227,784,158 $210,140,742 $58,194,442 $60,083,871 ============ ============ ============ ============ + Includes undistributed net investment income (deficit) of $(760,376) $-- $167,287 $-- ============ ============ ============ ============ *Shares Issued and Redeemed Class A: Sold 701,848 1,863,325 292,943 977,797 Issued for dividends reinvested -- -- 13,198 -- Redeemed (972,014) (1,421,872) (772,597) (1,296,757) ------------ ------------ ------------ ------------ Net increase (decrease) in Class A shares outstanding (270,166) 441,453 (466,456) (318,960) ============ ============ ============ ============ Class B: Sold 57,076 259,292 39,166 157,973 Issued for dividends reinvested -- -- 709 -- Redeemed (149,126) (338,579) (198,674) (280,246) ------------ ------------ ------------ ------------ Net increase (decrease) in Class B shares outstanding (92,050) (79,287) (158,799) (122,273) ============ ============ ============ ============
Statements of Changes in Net Assets FIRST INVESTORS --------------------------------------------------------------------------------------------- GLOBAL --------------------------- 10/1/2004 to 10/1/2003 to 3/31/2005 9/30/2004 --------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets From Operations Net investment loss $(131,931) $(400,083) Net realized gain on investments and foreign currency transactions 16,959,574 30,025,702 Net unrealized appreciation of investments and foreign currency transactions 3,757,795 690,941 ------------ ------------ Net increase in net assets resulting from operations 20,585,438 30,316,560 ------------ ------------ Share Transactions* Class A: Proceeds from shares sold 10,162,316 16,930,869 Cost of shares redeemed (15,700,960) (28,122,035) ------------ ------------ (5,538,644) (11,191,166) ------------ ------------ Class B: Proceeds from shares sold 745,217 1,931,105 Cost of shares redeemed (2,582,846) (3,892,357) ------------ ------------ (1,837,629) (1,961,252) ------------ ------------ Net decrease from share transactions (7,376,273) (13,152,418) ------------ ------------ Net increase in net assets 13,209,165 17,164,142 Net Assets Beginning of period 224,520,784 207,356,642 ------------ ------------ End of period+ $237,729,949 $224,520,784 ============ ============ + Includes undistributed net investment deficit of $(131,931) $-- ============ ============ *Shares Issued and Redeemed Class A: Sold 1,579,771 2,881,046 Redeemed (2,448,922) (4,801,535) ------------ ------------ Net decrease in Class A shares outstanding (869,151) (1,920,489) ============ ============ Class B: Sold 125,285 353,684 Redeemed (435,617) (706,156) ------------ ------------ Net decrease in Class B shares outstanding (310,332) (352,472) ============ ============ See notes to financial statements
Notes to Financial Statements March 31, 2005 1. Significant Accounting Policies--First Investors Total Return Fund, First Investors Blue Chip Fund and First Investors Special Situations Fund, each a series of First Investors Series Fund ("Series Fund"), a Massachusetts business trust; First Investors Value Fund (formerly Utilities Income), First Investors Growth & Income Fund, First Investors All-Cap Growth Fund, First Investors Mid-Cap Opportunity Fund and First Investors Focused Equity Fund, each a series of First Investors Series Fund II, Inc. ("Series Fund II"), a Maryland corporation; and First Investors Global Fund, Inc. ("Global Fund"), a Maryland corporation, are registered under the Investment Company Act of 1940 ("the 1940 Act") as diversified, open-end management investment companies, with the exception of First Investors Focused Equity Fund, which is registered as a non-diversified series of the investment company. Each Fund accounts separately for the assets, liabilities, and operations of the Fund. Series Fund offers two additional series which are not included in this report. The objective of each Fund is as follows: Total Return Fund seeks high, long-term total investment return consistent with moderate investment risk. Value Fund seeks total return. Blue Chip Fund seeks high total investment return consistent with the preservation of capital. Growth & Income Fund seeks long-term growth of capital and current income. All-Cap Growth Fund seeks long-term growth of capital. Mid-Cap Opportunity Fund seeks long-term capital growth. Special Situations Fund seeks long-term growth of capital. Focused Equity Fund seeks capital appreciation. Global Fund primarily seeks long-term capital growth and secondarily a reasonable level of current income. A. Security Valuation--Except as provided below, a security listed or traded on an exchange or the Nasdaq Stock Market is valued at its last sale price on the exchange or market where the security is principally traded, and lacking any sales, the security is valued at the mean between the closing bid and asked prices. Securities traded in the over-the-counter ("OTC") market (including securities listed on exchanges whose primary market is believed to be OTC) are valued at the mean between the last bid and asked prices based upon quotes furnished by a market maker for such securities. Securities may also be priced by a pricing service approved by the applicable Fund's Notes to Financial Statements (continued) March 31, 2005 Board of Directors/Trustees ("the Board"). The pricing service considers security type, rating, market condition and yield data as well as market quotations, prices provided by market makers and other available information in determining value. Short-term debt securities that mature in 60 days or less are valued at amortized cost. The Funds monitor for significant events occurring after the close of foreign markets but prior to the close of trading on the New York Stock Exchange that could have a material impact on the value of any foreign securities that are held by the Funds. Examples of such events include natural disasters, political events, issuer-specific developments such as bankruptcies and significant fluctuations in securities markets. If the Valuation Committee decides that such events warrant using fair value estimates for foreign securities, it will take such events into consideration in determining the fair values of such securities. If market quotations or prices are not readily available or determined to be unreliable, the securities will be valued at fair value as determined in good faith pursuant to procedures adopted by the Board. At March 31, 2005, Global Fund held one security that was fair valued by its Valuation Committee with a value of $13,475 representing .0% of the Fund's net assets. For valuation purposes, where applicable, quotations of foreign securities in foreign currency are translated to U.S. dollar equivalents using the foreign exchange quotation in effect. B. Federal Income Taxes--No provision has been made for federal income taxes on net income or capital gains since it is the policy of each Fund to continue to comply with the special provisions of the Internal Revenue Code applicable to investment companies and to make sufficient distributions of income and capital gains (in excess of any available capital loss carryovers) to relieve it from all, or substantially all, such taxes. At September 30, 2004, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire -------------------------------------------------------------------------------- Fund Total 2008 2009 2010 2011 2012 ---- ----- ---- ---- ---- ---- ---- Total Return $22,473,294 $ -- $ -- $ 3,370,272 $19,103,022 $ -- Value 59,796,762 -- 5,133,146 18,257,137 36,406,479 -- Blue Chip 129,277,387 -- -- 60,089,848 69,187,539 -- Growth & Income 78,057,817 -- -- 13,237,225 64,820,592 -- All-Cap Growth 17,185,776 -- -- 6,375,516 10,810,260 -- Mid-Cap Opportunity 12,290,944 -- -- 5,604,079 6,686,865 -- Special Situations 60,973,556 -- -- 34,927,376 26,046,180 -- Focused Equity 26,520,358 553,800 12,951,888 1,712,582 9,856,986 1,445,102 Global 30,872,163 -- -- -- 30,872,163 --
C. Distributions to Shareholders--Dividends from net investment income, if any, of Total Return Fund, Value Fund, Blue Chip Fund and Growth & Income Fund are normally declared and paid quarterly. Dividends from net investment income, if any, of All-Cap Growth Fund, Mid-Cap Opportunity Fund, Special Situations Fund, Focused Equity Fund and Global Fund are normally declared and paid annually. Distributions from net realized capital gains, if any, are normally declared and paid annually. Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for capital loss carryforwards, deferral of wash sales losses, post-October capital losses, net operating losses and foreign currency transactions. D. Expense Allocation--Expenses directly charged or attributable to a Fund are paid from the assets of that Fund. General expenses of Series Fund and Series Fund II 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. Repurchase Agreements--Securities pledged as collateral for repurchase agreements entered into by the All-Cap Growth Fund, Focused Equity Fund, and Global Fund are held by each Fund's custodian until maturity of the repurchase agreement. The agreements provide that the Funds will receive, as collateral, securities with a market value which will at all times be at least equal to 100% of the amount invested by the Funds. F. Use of Estimates--The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. G. Foreign Currency Translations--The accounting records of Global Fund are maintained in U.S. dollars. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated to U.S. dollars at the date of valuation. Purchases and sales of investment securities, dividend income and certain expenses are translated to U.S. dollars at the rates of exchange prevailing on the respective dates of such transactions. Global Fund does not isolate that portion of gains and losses on investments which is due to changes in foreign exchange rates from that which is due to changes in market Notes to Financial Statements (continued) March 31, 2005 prices of the investments. Such fluctuations are included with the net realized and unrealized gains and losses from investments. Net realized and unrealized gains and losses on foreign currency transactions include gains and losses from the sales of foreign currency and gains and losses on accrued foreign dividends and related withholding taxes. H. Other--Security transactions are accounted for on the date the securities are purchased or sold. Cost is determined, and gains and losses are based, on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income and estimated expenses are accrued daily. Bond discounts and premiums are accreted or amortized using the interest method. For the six months ended March 31, 2005, the Bank of New York, custodian for the Series Fund and Series Fund II, has provided total credits in the amount of $28,061 against custodian charges based on the uninvested cash balances of these Funds. The Funds also reduced expenses through brokerage service arrangements. For the six months ended March 31, 2005, the Funds expenses were reduced by $16,468 under these arrangements. 2. Security Transactions--For the six months ended March 31, 2005, purchases and sales of securities and long-term U.S. Government obligations (excluding U.S. Treasury bills, repurchase agreements, short-term securities and foreign currencies) were as follows: Long-Term U.S. Securities Government Obligations --------------------------- --------------------------- Cost of Proceeds Cost of Proceeds Fund Purchases from Sales Purchases from Sales ---- ------------ ------------ ------------ ------------ Total Return $ 73,607,490 $ 55,414,900 $17,161,414 $9,147,455 Value 36,390,818 15,001,811 -- -- Blue Chip 193,705,366 219,076,638 -- -- Growth & Income 123,804,918 109,793,950 -- -- All-Cap Growth 91,202,141 77,224,081 -- -- Mid-Cap Opportunity 105,155,011 70,834,502 -- -- Special Situations 191,183,119 200,033,880 -- -- Focused Equity 19,315,565 24,704,716 -- -- Global 138,151,543 143,147,425 -- -- At March 31, 2005, aggregate cost and net unrealized appreciation of securities for federal income tax purposes were as follows: Gross Gross Net Aggregate Unrealized Unrealized Unrealized Fund Cost Appreciation Depreciation Appreciation ---- ------------ ------------ ------------ ------------ Total Return $261,798,833 $ 39,623,773 $ 7,658,462 $ 31,965,311 Value 193,918,882 55,341,139 1,699,110 53,642,029 Blue Chip 390,291,635 101,859,179 9,681,778 92,177,401 Growth & Income 523,363,583 137,590,816 22,838,188 114,752,628 All-Cap Growth 149,844,001 25,232,011 5,079,731 20,152,280 Mid-Cap Opportunity 310,300,594 96,779,007 11,215,982 85,563,025 Special Situations 213,193,996 17,728,684 4,440,368 13,288,316 Focused Equity 54,623,177 6,906,841 3,308,584 3,598,257 Global 207,984,674 34,179,166 3,699,513 30,479,653 3. Advisory Fee and Other Transactions With Affiliates--Certain officers and directors/trustees of the Funds are officers and directors of the Funds' investment adviser, First Investors Management Company, Inc. ("FIMCO"), their underwriter, First Investors Corporation ("FIC"), their transfer agent, Administrative Data Management Corp. ("ADM") and/or First Investors Federal Savings Bank, ("FIFSB"), custodian of the Funds' retirement accounts. Directors/trustees of the Funds who are not "interested persons" of the Funds as defined in the 1940 Act are remunerated by the Funds. For the six months ended March 31, 2005, total directors/trustees fees accrued by the Funds amounted to $47,677. The Investment Advisory Agreements provide as compensation to FIMCO, an annual fee, payable monthly, at the following rates: Total Return, Blue Chip, Mid-Cap Opportunity and Special Situations Funds--1% on the first $200 million of each Fund's average daily net assets, .75% on the next $300 million, declining by .03% on each $250 million thereafter, down to .66% on average daily net assets over $1 billion. FIMCO has voluntarily waived 25% of the 1% annual fee on the first $200 million of each Fund's average daily net assets for the six months ended March 31, 2005. Value, Growth & Income, All-Cap Growth and Focused Equity Funds--.75% on the first $300 million of each Fund's average daily net assets, .72% on the next $200 million, .69% on the next $250 million and .66% on average daily net assets over $750 million. Notes to Financial Statements (continued) March 31, 2005 Global Fund--1% on the first $250 million of the Fund's average daily net assets, declining by .03% on each $250 million thereafter, down to .91% on average daily net assets over $750 million. For the six months ended March 31, 2005, total advisory fees accrued to FIMCO by the Funds were $11,272,361 of which $997,260 was waived. For the six months ended March 31, 2005, FIC, as underwriter, received $13,185,941 in commissions from the sale of shares of the Funds, after allowing $10,991 to other dealers. Shareholder servicing costs included $3,270,618 in transfer agent fees accrued to ADM and $951,287 in retirement accounts custodian fees accrued to FIFSB. Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, each Fund is authorized to pay FIC a fee up to .30% of the average daily net assets of the Class A shares and 1% of the average daily net assets of the Class B shares on an annualized basis each fiscal year, payable monthly. The fee consists of a distribution fee and a service fee. The service fee is paid for the ongoing servicing of clients who are shareholders of that Fund. For the six months ended March 31, 2005, total distribution plan fees accrued to FIC by the Funds amounted to $5,157,188. Wellington Management Company, LLP ("Wellington") serves as investment subadviser to All-Cap Growth Fund, Focused Equity Fund and Global Fund. Effective March 8, 2005, Paradigm Capital Management, Inc. serves as investment subadviser to Special Situations Fund. The subadvisers are paid by FIMCO and not by the Funds. 4. Forward Currency Contracts--A forward currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. When a Fund purchases or sells foreign securities it customarily enters into a forward currency contract to minimize foreign exchange risk between the trade date and the settlement date of such transactions. The Fund could be exposed to risk if counter parties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. Forward currency contracts are "marked-to-market" daily at the applicable translation rate and the resulting unrealized gains or losses are reflected in the Fund's assets. Global Fund had the following forward currency contracts outstanding at March 31, 2005: Contracts to Buy Unrealized Foreign Currency In Exchange for Settlement Date Gain ---------------------------- --------------- --------------- ---------- 492,853 Euro US$ 636,589 4/1/05 US$ 3,946 684,681 Swiss Franc 569,230 4/1/05 5,215 193,907 Swiss Franc 162,063 4/4/05 624 --------------- ---------- $1,367,882 $9,785 =============== ---------- Contracts to Sell Unrealized Foreign Currency In Exchange for Settlement Date Loss ---------------------------- --------------- --------------- ---------- 891,645 Swedish Krona $ 126,063 4/1/05 $ (533) =============== ---------- Net Unrealized Gain on Forward Currency Contract $ 9,252 ========== 5. Capital--Each Fund sells two classes of shares, Class A and Class B, each with a public offering price that reflects different sales charges and expense levels. Class A shares are sold with an initial sales charge of up to 5.75% of the amount invested and together with the Class B shares are subject to distribution plan fees as described in Note 3. Class B shares are sold without an initial sales charge, but are generally subject to a contingent deferred sales charge which declines in steps from 4% to 0% over a six-year period. Class B shares automatically convert into Class A shares after eight years. Realized and unrealized gains or losses, investment income and expenses (other than distribution plan fees and certain other class expenses) are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Series Fund has established an unlimited number of no par value shares of beneficial interest for both Class A and Class B shares. Of the 100,000,000 $0.001 par value shares originally designated to each Fund, Series Fund II has classified 50,000,000 shares as Class A and 50,000,000 shares as Class B for each Fund. Of the 100,000,000 $1.00 par value Global Fund shares originally authorized, the Fund has designated 65,000,000 shares as Class A and 35,000,000 shares as Class B. 6. Restricted Securities--Certain restricted securities are exempt from the registration requirements under Rule 144A of the Securities Act of 1933 and may only be sold to qualified institutional investors. At March 31, 2005, Total Return Fund held two 144A securities with an aggregate value of $1,877,675 representing .6% of the Fund's net assets. Certain restricted securities are exempt from the registration requirements under Section 4(2) of the Securities Act of 1933 and may only be sold to qualified investors. At March 31, 2005, Total Return Fund held two Notes to Financial Statements (continued) March 31, 2005 Section 4(2) securities with an aggregate value of $3,198,015 representing 1.1% of the Fund's net assets and Blue Chip Fund held two Section 4(2) securities with an aggregate value of $3,197,529 representing .7% of the Fund's net assets. These securities are valued as set forth in Note 1A. This page intentionally left blank.
Financial Highlights FIRST INVESTORS The following table sets forth the per share operating performance data for a share outstanding, total return, ratios to average net assets and other supplemental data for each fiscal year ended September 30, except as otherwise indicated. ----------------------------------------------------------------------------------------------------- P E R S H A R E D A T A ---------------------------------------------------------------------------------------- Less Distributions Investment Operations from ------------------------------------- ---------------------- Net Asset Net Realized Value, Net and Unrealized Total from Net Net Beginning Investment Gain (Loss) on Investment Investment Realized Total of Period Income Investments Operations Income Gain Distributions ----------------------------------------------------------------------------------------------------- TOTAL RETURN FUND ----------------- Class A ------- 2000 $14.34 $ .31 $ 2.29 $ 2.60 $ .27 $ .40 $ .67 2001 16.27 .26 (2.86) (2.60) .32 1.07 1.39 2002++ 12.28 .22 (1.59) (1.37) .32 -- .32 2003 10.59 .20 1.44 1.64 .21 -- .21 2004 12.02 .20 .96 1.16 .20 -- .20 2005(b) 12.98 .13 .55 .68 .14 -- .14 Class B ------- 2000 14.17 .21 2.24 2.45 .17 .40 .57 2001 16.05 .18 (2.84) (2.66) .21 1.07 1.28 2002++ 12.11 .15 (1.59) (1.44) .21 -- .21 2003 10.46 .09 1.44 1.53 .13 -- .13 2004 11.86 .12 .94 1.06 .12 -- .12 2005(b) 12.80 .08 .54 .62 .09 -- .09 ----------------------------------------------------------------------------------------------------- VALUE FUND+++ ----------------- Class A ------- 2000 $ 7.99 $ .13 $ 1.21 $ 1.34 $ .13 $ .60 $ .73 2001 8.60 .10 (2.10) (2.00) .11 .56 .67 2002++ 5.93 .11 (1.65) (1.54) .13 -- .13 2003 4.26 .08 .73 .81 .08 -- .08 2004 4.99 .07 .96 1.03 .07 -- .07 2005(b) 5.95 .04 .50 .54 .03 -- .03 Class B ------- 2000 7.88 .08 1.18 1.26 .07 .60 .67 2001 8.47 .06 (2.07) (2.01) .06 .56 .62 2002++ 5.84 .07 (1.63) (1.56) .08 -- .08 2003 4.20 .05 .71 .76 .04 -- .04 2004 4.92 .03 .95 .98 .03 -- .03 2005(b) 5.87 .02 .48 .50 .01 -- .01 ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 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 Period Investment Investment Turnover Period Return* (in millions) Expenses Income Expenses Income Rate ----------------------------------------------------------------------------------------------------------- TOTAL RETURN FUND ----------------- Class A ------- 2000 $16.27 18.67% $120 1.33% 2.00% 1.58% 1.75% 118% 2001 12.28 (17.31) 121 1.37 2.02 1.62 1.77 130 2002++ 10.59 (11.44) 129 1.47 1.91 1.72 1.66 185 2003 12.02 15.58 177 1.52 1.72 1.77 1.47 80 2004 12.98 9.65 231 1.44 1.60 1.65 1.39 41 2005(b) 13.52 5.19 257 1.38+ 1.96+ 1.56+ 1.78+ 25 Class B ------- 2000 16.05 17.79 16 2.03 1.30 2.28 1.05 118 2001 12.11 (17.82) 19 2.07 1.32 2.32 1.07 130 2002++ 10.46 (12.09) 22 2.17 1.21 2.42 .96 185 2003 11.86 14.71 28 2.22 1.02 2.47 .77 80 2004 12.80 8.92 36 2.14 .90 2.35 .69 41 2005(b) 13.33 4.84 37 2.08+ 1.26+ 2.26+ 1.08+ 25 ----------------------------------------------------------------------------------------------------------- VALUE FUND+++ ----------------- Class A ------- 2000 $ 8.60 17.58% $187 1.31% 1.57% N/A N/A 46% 2001 5.93 (24.98) 149 1.37 1.47 N/A N/A 51 2002++ 4.26 (26.34) 99 1.51 1.93 N/A N/A 40 2003 4.99 19.04 126 1.67 1.69 N/A N/A 198 2004 5.95 20.57 185 1.48 1.21 N/A N/A 11 2005(b) 6.46 9.15 232 1.42+ 1.40+ N/A N/A 7 Class B ------- 2000 8.47 16.77 32 2.01 .87 N/A N/A 46 2001 5.84 (25.46) 26 2.07 .77 N/A N/A 51 2002++ 4.20 (26.94) 17 2.21 1.23 N/A N/A 40 2003 4.92 18.26 19 2.37 .99 N/A N/A 198 2004 5.87 19.91 23 2.18 .51 N/A N/A 11 2005(b) 6.36 8.59 26 2.12+ .70+ N/A N/A 7 -----------------------------------------------------------------------------------------------------------
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 Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions ----------------------------------------------------------------------------------------------------- BLUE CHIP FUND -------------------- Class A ------- 2000 $27.15 $(.09) $ 5.68 $ 5.59 $ -- $1.65 $1.65 2001 31.09 -- (8.64) (8.64) .01 3.30 3.31 2002 19.14 (.03) (4.55) (4.58) -- -- -- 2003 14.56 -- 2.58 2.58 -- -- -- 2004 17.14 .01 1.54 1.55 -- -- -- 2005(b) 18.69 .08 1.24 1.32 -- -- -- Class B ------- 2000 26.61 (.25) 5.50 5.25 -- 1.65 1.65 2001 30.21 (.16) (8.33) (8.49) -- 3.30 3.30 2002 18.42 (.16) (4.35) (4.51) -- -- -- 2003 13.91 (.11) 2.46 2.35 -- -- -- 2004 16.26 (.13) 1.48 1.35 -- -- -- 2005(b) 17.61 -- 1.18 1.18 -- -- -- ----------------------------------------------------------------------------------------------------- GROWTH & INCOME FUND -------------------- Class A ------- 2000 $15.18 $ .01 $ 2.98 $ 2.99 $.01 $1.55 $1.56 2001 16.61 .06 (3.99) (3.93) .03 1.49 1.52 2002++ 11.16 .03 (2.31) (2.28) .05 -- .05 2003 8.83 .04 1.85 1.89 .04 -- .04 2004 10.68 .06 1.43 1.49 .03 -- .03 2005(b) 12.14 .07 .91 .98 .07 -- .07 Class B ------- 2000 14.90 (.08) 2.90 2.82 -- 1.55 1.55 2001 16.17 (.01) (3.88) (3.89) -- 1.49 1.49 2002++ 10.79 (.04) (2.24) (2.28) -- -- -- 2003 8.51 (.03) 1.78 1.75 -- -- -- 2004 10.26 (.03) 1.39 1.36 -- -- -- 2005(b) 11.62 .01 .88 .89 .03 -- .03 ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 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 Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate ----------------------------------------------------------------------------------------------------------- BLUE CHIP FUND -------------------- Class A ------- 2000 $31.09 21.49% $615 1.27% (.31)% 1.34% (.38)% 125% 2001 19.14 (30.88) 445 1.35 (.02) 1.43 (.10) 117 2002 14.56 (23.93) 333 1.48 (.17) 1.58 (.27) 144 2003 17.14 17.72 383 1.56 -- 1.68 (.12) 111 2004 18.69 9.04 414 1.47 .03 1.58 (.08) 94 2005(b) 20.01 7.06 423 1.44+ .80+ 1.54+ .70+ 41 Class B ------- 2000 30.21 20.60 105 1.97 (1.01) 2.04 (1.08) 125 2001 18.42 (31.33) 78 2.05 (.72) 2.13 (.80) 117 2002 13.91 (24.48) 57 2.18 (.87) 2.28 (.97) 144 2003 16.26 16.90 62 2.26 (.70) 2.38 (.82) 111 2004 17.61 8.30 61 2.17 (.67) 2.28 (.78) 94 2005(b) 18.79 6.70 57 2.14+ .10+ 2.24+ -- 41 ----------------------------------------------------------------------------------------------------------- GROWTH & INCOME FUND -------------------- Class A ------- 2000 $16.61 21.31% $494 1.28% .05% N/A N/A 142% 2001 11.16 (25.91) 383 1.34 .47 N/A N/A 168 2002++ 8.83 (20.53) 318 1.46 .33 N/A N/A 169 2003 10.68 21.49 400 1.52 .44 N/A N/A 70 2004 12.14 13.95 499 1.42 .53 N/A N/A 32 2005(b) 13.05 8.05 553 1.36+ 1.12+ N/A N/A 18 Class B ------- 2000 16.17 20.49 107 1.98 (.65) N/A N/A 142 2001 10.79 (26.38) 82 2.04 (.23) N/A N/A 168 2002++ 8.51 (21.13) 65 2.16 (.37) N/A N/A 169 2003 10.26 20.56 76 2.22 (.26) N/A N/A 70 2004 11.62 13.26 83 2.12 (.17) N/A N/A 32 2005(b) 12.48 7.65 84 2.06+ .42+ N/A N/A 18 -----------------------------------------------------------------------------------------------------------
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 Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions ----------------------------------------------------------------------------------------------------- ALL-CAP GROWTH FUND ------------------- Class A ------- 2001(a) $10.00 $(.05) $(3.42) $(3.47) -- -- -- 2002 6.53 (.06) (1.14) (1.20) -- -- -- 2003 5.33 (.06) 1.48 1.42 -- -- -- 2004 6.75 (.07) 1.12 1.05 -- -- -- 2005(b) 7.80 (.01) .24 .23 -- -- -- Class B ------- 2001(a) 10.00 (.08) (3.43) (3.51) -- -- -- 2002 6.49 (.10) (1.13) (1.23) -- -- -- 2003 5.26 (.09) 1.44 1.35 -- -- -- 2004 6.61 (.12) 1.10 .98 -- -- -- 2005(b) 7.59 (.04) .24 .20 -- -- -- ----------------------------------------------------------------------------------------------------- MID-CAP OPPORTUNITY FUND ------------------------ Class A ------- 2000 $21.02 (.10) $ 8.02 $ 7.92 -- $2.28 $2.28 2001 26.66 (.05) (7.67) (7.72) -- 1.30 1.30 2002 17.64 (.13) (1.73) (1.86) -- -- -- 2003 15.78 (.12) 3.52 3.40 -- -- -- 2004 19.18 (.09) 3.62 3.53 -- -- -- 2005(b) 22.71 (.02) 2.98 2.96 -- -- -- Class B ------- 2000 20.35 (.20) 7.67 7.47 -- 2.28 2.28 2001 25.54 (.18) (7.32) (7.50) -- 1.30 1.30 2002 16.74 (.24) (1.63) (1.87) -- -- -- 2003 14.87 (.23) 3.31 3.08 -- -- -- 2004 17.95 (.23) 3.38 3.15 -- -- -- 2005(b) 21.10 (.10) 2.77 2.67 -- -- -- ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 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 Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate ----------------------------------------------------------------------------------------------------------- ALL-CAP GROWTH FUND ------------------- Class A ------- 2001(a) $ 6.53 (34.70)% $ 35 1.75%+ (.90)%+ 2.10%+ (1.25)%+ 84% 2002 5.33 (18.38) 44 1.75 (1.03) 1.98 (1.26) 138 2003 6.75 26.64 77 1.94 (1.15) 1.96 (1.17) 126 2004 7.80 15.56 130 1.68 (1.12) N/A N/A 75 2005(b) 8.03 2.95 149 1.56+ (.36)+ N/A N/A 51 Class B ------- 2001(a) 6.49 (35.10) 8 2.45+ (1.60)+ 2.80+ (1.95)+ 84 2002 5.26 (18.95) 9 2.45 (1.73) 2.68 (1.96) 138 2003 6.61 25.67 14 2.64 (1.85) 2.66 (1.87) 126 2004 7.59 14.83 20 2.38 (1.82) N/A N/A 75 2005(b) 7.79 2.64 22 2.26+ (1.06)+ N/A N/A 51 ----------------------------------------------------------------------------------------------------------- MID-CAP OPPORTUNITY FUND ------------------------ Class A ------- 2000 $26.66 41.41% $120 1.42% (.52)% 1.67% (.77)% 180% 2001 17.64 (30.34) 109 1.51 (.27) 1.76 (.52) 123 2002 15.78 (10.55) 131 1.70 (.82) 1.95 (1.07) 112 2003 19.18 21.55 192 1.73 (.80) 1.97 (1.04) 37 2004 22.71 18.41 277 1.56 (.46) 1.73 (.63) 40 2005(b) 25.67 13.03 343 1.46+ (.20)+ 1.60+ (.34)+ 21 Class B ------- 2000 25.54 40.46 24 2.12 (1.22) 2.37 (1.47) 180 2001 16.74 (30.84) 22 2.21 (.97) 2.46 (1.22) 123 2002 14.87 (11.17) 25 2.40 (1.52) 2.65 (1.77) 112 2003 17.95 20.71 35 2.43 (1.50) 2.67 (1.74) 37 2004 21.10 17.55 46 2.26 (1.16) 2.43 (1.33) 40 2005(b) 23.77 12.65 53 2.16+ (.90)+ 2.30+ (1.04)+ 21 -----------------------------------------------------------------------------------------------------------
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 Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions ----------------------------------------------------------------------------------------------------- SPECIAL SITUATIONS FUND -------------------------- Class A ------- 2000 $23.40 $(.18) $ 9.81 $ 9.63 -- $1.21 $1.21 2001 31.82 (.18) (11.59) (11.77) -- 4.89 4.89 2002 15.16 (.19) (2.31) (2.50) -- -- -- 2003 12.66 (.17) 3.14 2.97 -- -- -- 2004 15.63 (.18) 1.39 1.21 -- -- -- 2005(b) 16.84 (.06) 2.02 1.96 -- -- -- Class B ------- 2000 22.62 (.33) 9.38 9.05 -- 1.21 1.21 2001 30.46 (.29) (11.00) (11.29) -- 4.89 4.89 2002 14.28 (.29) (2.15) (2.44) -- -- -- 2003 11.84 (.25) 2.93 2.68 -- -- -- 2004 14.52 (.30) 1.32 1.02 -- -- -- 2005(b) 15.54 (.12) 1.86 1.74 -- -- -- ----------------------------------------------------------------------------------------------------- FOCUSED EQUITY FUND ------------------- Class A ------- 2000 $10.88 $(.08) $ (.42) $ (.50) $ -- -- $ -- 2001 10.38 (.03) (2.63) (2.66) -- -- -- 2002 7.72 (.07) (1.92) (1.99) -- -- -- 2003 5.73 (.02) 1.52 1.50 -- -- -- 2004 7.23 (.02) .62 .60 -- -- -- 2005(b) 7.83 .04 .40 .44 .02 -- .02 Class B ------- 2000 10.84 (.15) (.43) (.58) -- -- -- 2001 10.26 (.09) (2.59) (2.68) -- -- -- 2002 7.58 (.13) (1.86) (1.99) -- -- -- 2003 5.59 (.07) 1.48 1.41 -- -- -- 2004 7.00 (.08) .61 .53 -- -- -- 2005(b) 7.53 .02 .38 .40 -- -- -- ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 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 Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate ----------------------------------------------------------------------------------------------------------- SPECIAL SITUATIONS FUND -------------------------- Class A ------- 2000 $31.82 43.07% $276 1.41% (.68)% 1.60% (.87)% 161% 2001 15.16 (42.86) 164 1.54 (.94) 1.75 (1.15) 183 2002 12.66 (16.49) 138 1.69 (1.24) 1.93 (1.48) 153 2003 15.63 23.46 169 1.80 (1.26) 2.05 (1.51) 111 2004 16.84 7.74 190 1.63 (1.08) 1.86 (1.31) 119 2005(b) 18.80 11.64 206 1.56+ (.60)+ 1.78+ (.82)+ 86 Class B ------- 2000 30.46 41.94 34 2.11 (1.38) 2.30 (1.57) 161 2001 14.28 (43.26) 21 2.24 (1.64) 2.45 (1.85) 183 2002 11.84 (17.09) 18 2.39 (1.94) 2.63 (2.18) 153 2003 14.52 22.63 20 2.50 (1.96) 2.75 (2.21) 111 2004 15.54 7.03 21 2.33 (1.78) 2.56 (2.01) 119 2005(b) 17.28 11.20 21 2.26+ (1.30)+ 2.48+ (1.52)+ 86 ----------------------------------------------------------------------------------------------------------- FOCUSED EQUITY FUND ------------------- Class A ------- 2000 $10.38 (4.60)% $ 75 1.62% (.76)% 1.52% (.66)% 178% 2001 7.72 (25.63) 51 1.75 (.35) N/A N/A 240 2002 5.73 (25.78) 38 1.83 (.90) N/A N/A 150 2003 7.23 26.18 48 1.99 (.35) N/A N/A 49 2004 7.83 8.30 49 1.85 (.30) N/A N/A 39 2005(b) 8.25 5.59 48 1.74+ 1.06+ N/A N/A 32 Class B ------- 2000 10.26 (5.35) 18 2.32 (1.46) 2.22 (1.36) 178 2001 7.58 (26.12) 13 2.45 (1.05) N/A N/A 240 2002 5.59 (26.25) 9 2.53 (1.60) N/A N/A 150 2003 7.00 25.22 11 2.69 (1.05) N/A N/A 49 2004 7.53 7.57 11 2.55 (1.00) N/A N/A 39 2005(b) 7.93 5.37 10 2.44+ .36+ N/A N/A 32 -----------------------------------------------------------------------------------------------------------
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 Net Realized Value, Investment and Unrealized Total from Net Net Beginning Income Gain (Loss) on Investment Investment Realized Total of Period (Loss) Investments Operations Income Gain Distributions ----------------------------------------------------------------------------------------------------- GLOBAL FUND ----------- Class A ------- 2000 $ 8.11 $(.02) $ .91 $ .89 -- $ .89 $ .89 2001 8.11 (.01) (2.13) (2.14) -- .76 .76 2002 5.21 (.01) (.96) (.97) -- -- -- 2003 4.24 (.01) .93 .92 -- -- -- 2004 5.16 (.01) .78 .77 -- -- -- 2005(b) 5.93 -- .55 .55 -- -- -- Class B ------- 2000 7.88 (.07) .88 .81 -- .89 .89 2001 7.80 (.06) (2.03) (2.09) -- .76 .76 2002 4.95 -- (.95) (.95) -- -- -- 2003 4.00 (.04) .88 .84 -- -- -- 2004 4.84 (.05) .73 .68 -- -- -- 2005(b) 5.52 (.02) .51 .49 -- -- -- ----------------------------------------------------------------------------------------------------- * Calculated without sales charges. ** Net of expenses waived or assumed by the investment adviser (Note 3). + Annualized ++ Prior to October 1, 2001, the Total Return Fund, Growth & Income Fund, and Value Fund did not amortize premiums on debt securities. The per share data and ratios prior to 2001 have not been restated. The cumulative effect of this accounting change had no impact on the total net assets of the Funds. +++ Prior to December 31, 2002, known as Utilities Income Fund. (a) For the period October 25, 2000 (commencement of operations) to September 30, 2001. (b) For the period October 1, 2004 to March 31, 2005. 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 Net Net Value, Net Assets Investment Investment Portfolio End of Total End of Period Income Income Turnover Period Return* (in millions) Expenses (Loss) Expenses (Loss) Rate ----------------------------------------------------------------------------------------------------------- GLOBAL FUND ----------- Class A ------- 2000 $ 8.11 11.73% $350 1.65% (.26)% N/A N/A 102% 2001 5.21 (28.87) 234 1.77 (.21) N/A N/A 116 2002 4.24 (18.62) 173 1.87 (.35) N/A N/A 125 2003 5.16 21.70 192 1.98 (.19) N/A N/A 112 2004 5.93 14.92 209 1.86 (.13) N/A N/A 105 2005(b) 6.48 9.27 223 1.77+ (.07)+ N/A N/A 61 Class B ------- 2000 7.80 10.99 26 2.35 (.96) N/A N/A 102 2001 4.95 (29.42) 18 2.47 (.91) N/A N/A 116 2002 4.00 (19.19) 14 2.57 (1.05) N/A N/A 125 2003 4.84 21.00 15 2.68 (.89) N/A N/A 112 2004 5.52 14.05 15 2.56 (.83) N/A N/A 105 2005(b) 6.01 8.88 15 2.47+ (.77)+ N/A N/A 61 -----------------------------------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm To the Shareholders and Boards of Directors/Trustees of First Investors Series Fund First Investors Series Fund II, Inc. First Investors Global Fund, Inc. We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of the Blue Chip Fund, Special Situations Fund and Total Return Fund (each a series of First Investors Series Fund), the All-Cap Growth Fund, Focused Equity Fund, Growth & Income Fund, Mid-Cap Opportunity Fund and Value Fund (each a series of First Investors Series Fund II, Inc.), and First Investors Global Fund, Inc. as of March 31, 2005, the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 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 the Blue Chip Fund, Special Situations Fund, Total Return Fund, All-Cap Growth Fund, Focused Equity Fund, Growth & Income Fund, Mid-Cap Opportunity Fund, Value Fund, and Global Fund as of March 31, 2005, and the results of their operations, changes in their net assets, and their financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. Tait, Weller & Baker Philadelphia, Pennsylvania May 2, 2005 FIRST INVESTORS EQUITY FUNDS Directors/Trustees ----------------------- Robert M. Grohol Kathryn S. Head Rex R. Reed Herbert Rubinstein James M. Srygley John T. Sullivan Robert F. Wentworth Officers ----------------------- Kathryn S. Head President Clark D. Wagner Vice President 1 Matthew S. Wright Vice President 2 Larry R. Lavoie Chief Compliance Officer Joseph I. Benedek Treasurer Mark S. Spencer Assistant Treasurer Carol Lerner Brown Assistant Secretary ----------------------- 1 First Investors Series Fund only 2 First Investors Series Fund II, Inc. only FIRST INVESTORS EQUITY FUNDS Shareholder Information ----------------------- Investment Adviser First Investors Management Company, Inc. 95 Wall Street New York, NY 10005 Subadviser (Special Situations Fund only) Paradigm Capital Management, Inc. Nine Elk Street Albany, NY 12207 Subadviser (All-Cap Growth Fund, Focused Equity Fund and Global Fund only) Wellington Management Company, LLP 75 State Street Boston, MA 02109 Underwriter First Investors Corporation 95 Wall Street New York, NY 10005 Custodian The Bank of New York One Wall Street New York, NY 10286 Custodian (Global Fund only) Brown Brothers Harriman & Co. 40 Water Street Boston, MA 02109 Transfer Agent Administrative Data Management Corp. Raritan Plaza I - 8th Floor Edison, NJ 08837-3620 Legal Counsel Kirkpatrick & Lockhart Nicholson Graham LLP 1800 Massachusetts Avenue, N.W. Washington, DC 20036 Auditors Tait, Weller & Baker 1818 Market Street Philadelphia, PA 19103 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 for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q is available on the SEC's website at http://www.sec.gov; and may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. The schedule of portfolio holdings is also available, without charge, upon request in writing or by calling 800-423-4026. Item 2. Code of Ethics Not applicable Item 3. Audit Committee Financial Expert Not applicable Item 4. Principal Accountant Fees and Services Not applicable Item 5. Audit Committee of Listed Registrants Not applicable Item 6. Schedule of Investments Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form. Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End Management Investment Companies Not applicable Item 8. Portfolio Managers of Closed-End Management Investment Companies Not applicable Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers Not applicable Item 10. Submission of Matters to a Vote of Security Holders The Nominating and Compensation Committee (the "Committee") of the Board of Directors/Trustees of the First Investors Family of Funds (the "Board") was established in November 2004. The Committee is comprised of all the Independent Directors/Trustees. The Committee is responsible for, among other things, selecting and nominating persons to serve as Independent Directors/Trustees on the Board, evaluating candidates' qualifications, reviewing the composition of the Board to determine whether it may be appropriate to add other Independent Directors/Trustees, and reviewing director/trustee compensation. When the Board has, or expects to have, vacancies, the Committee shall consider shareholder recommendations for nominations to fill such vacancies if such recommendations are submitted in writing and addressed to the Committee at the Funds' offices at: First Investors Funds, 95 Wall Street, New York, NY 10005. 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 significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 12. Exhibits (a) Code of Ethics - Previously filed on the Registrant's Form N-CSR on December 8, 2004 (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Filed herewith (c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First Investors Series Fund First Investors Series Fund II, Inc. First Investors Global Fund, Inc. (Registrant) By /S/ KATHRYN S. HEAD Kathryn S. Head President and Principal Executive Officer Date: June 8, 2005 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 Series Fund First Investors Series Fund II, Inc. First Investors Global Fund, Inc. (Registrant) By /S/ JOSEPH I. BENEDEK Joseph I. Benedek Treasurer and Principal Financial Officer Date: June 8, 2005