FIRST
INVESTORS
CASH
MANAGEMENT
FUND, INC.
FIRST
INVESTORS
TAX-EXEMPT
MONEY MARKET
FUND, INC.
SEMI-
ANNUAL
REPORT
JUNE 30, 1996
Vertically reading from bottom to top in the center of the page the words
"FIRST INVESTORS" appear.
The following language appears to the left of the above language:
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" in a box to
the right of a circle containing the words "MAILED FROM ZIP CODE
11201" appears on the righthand side.
The following language appears on the lefthand side:
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
95 WALL STREET
NEW YORK, NY 10005
The following appears on the bottom lefthand side:
First Investors logo
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIMM-103
Portfolio Manager's Letter
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue
to slow or even enter a recession. Instead the economy accelerated
throughout the first half of the year. After growing at an
annualized rate of only .5% in the fourth quarter of 1995, the
economy expanded at a 2.2% pace during the first quarter of this
year and at an estimated 3.5%-4% during the second quarter. Concern
that faster growth would lead to higher inflation contributed to a
sharp rise in interest rates with the yield on long-term U. S.
Treasury bonds increasing from 5.95% to 6.87%. Despite higher
interest rates the stock market continued to rally, with the broad
stock market averages hitting record highs during the second
quarter.
With analysts calling for lower rates through most of the first
quarter, weighted average maturities of most money market funds
increased. But in the second quarter, as the economy appeared to be
picking up steam, and further easings of short-term interest rates
seemed less likely, funds were quick to once again shorten their
maturities. The Cash Management Fund followed this pattern,
finishing the first half of 1996 with a weighted average maturity of
43 days, nearly one third lower than where it stood at the end of
December, 1995.
Interest rate levels in the municipal money market remained
generally stable during the first half of 1996 except that interest
rates on variable rate securities moved higher or lower during the
period as cash flowed into and out of money market funds. The market
was supported through most of the first half by continued cash
flowing into money funds; assets increased by over 5% during the
period. Also, volatility in the longer end of the market resulted in
long-term rates increasing by over 100 basis points, encouraging
many investors to ride out the storm in safer money market
instruments.
For the first six months of 1996, the Cash Management Fund Class A
shares returned 2.4% and the Class B shares returned 2.0% or 4.8%
and 4.0%, respectively, on an annualized basis, while maintaining a
$1.00 net asset value throughout the period. For the same period,
the Tax-Exempt Money Market Fund Class A shares returned 1.4% or
2.8% on an annualized basis, 100% of which was free from federal
income taxes, while also maintaining a stable $1.00 net asset value.
Though conservative investment principles are generally standard
among money market funds, First Investors Funds place this
consideration in particular above all others. The Funds invest only
in "first tier" securities which are considered to present minimal
risk to investors. Money market funds continue to be among the most
conservative investment vehicles available to the public, offering
stability of principal as their hallmark, in addition to free check
writing privileges, easy access to account information, and a return
that is generally better than that available on most bank savings or
checking accounts. Please bear in mind that money market mutual
funds are not insured by the Federal Deposit Insurance Corporation
and are not guaranteed by a bank or other entity.
Looking forward, inflation shows few signs of accelerating, despite
the market's concern. In addition, the pace of economic growth is
likely to slow during the second half of the year. A combination of
stable inflation and moderate growth should provide a comfortable
environment for investors throughout the remainder of 1996.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
Michael J. O'Keefe
Portfolio Manager
July 8, 1996
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
BANKERS' ACCEPTANCES--4.9%
<S> <C> <C> <C> <C>
$6,000M Bank of America, 7/23/96 (cost $5,981,740) 4.98% $ 5,981,740 $ 495
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES--91.5%
3,000M Abbott Laboratories, 7/30/96 5.35 2,987,071 247
1,500M Associates Corporation of North America, 2/13/97 5.11 1,417,413 117
2,500M Baltimore Gas & Electric Company, 8/16/96 5.35 2,482,910 206
5,000M BellSouth Telecommunications, Inc., 8/28/96 5.37 4,956,742 410
3,500M Brown-Forman Corp., 8/2/96 5.33 3,483,418 288
3,000M Colgate-Palmolive Company, 7/25/96 5.34 2,989,320 248
1,235M Consolidated National Gas Company, 7/15/96 5.37 1,232,421 102
6,000M CPC International, Inc., 7/18/96 5.29 5,985,011 496
5,800M Dresser Industries, Inc., 7/16/96 5.28 5,787,240 479
200M Ford Motor Credit Corp., 7/15/96 5.87 200,168 17
500M Ford Motor Credit Corp., 7/16/96 5.38 500,730 42
1,500M Ford Motor Credit Corp., 8/27/96 5.27 1,487,484 123
3,500M General Electric Capital Corp., 8/15/96 5.28 3,476,900 288
3,500M GLAXO Corp., 9/17/96 5.38 3,459,201 286
5,000M Hewlett-Packard Company, 7/19/96 5.05 4,987,375 413
3,500M Hitachi Corp., 7/15/96 5.28 3,492,812 289
2,000M Illinois Tool Works Inc., 7/16/96 5.30 1,995,584 165
2,000M Illinois Tool Works Inc., 9/17/96 5.43 1,976,470 164
4,825M McGraw-Hill, Inc., 9/10/96 5.30 4,774,565 395
4,350M Merck & Company, Inc., 8/14/96 5.59 4,360,406 361
4,000M MetLife Funding, Inc., 7/23/96 5.26 3,987,142 330
3,000M Monsanto Corp., 9/4/96 5.30 2,971,291 246
2,000M National Rural Utilities Coop. Fin. Corp., 7/26/96 5.40 1,992,500 165
6,000M Paccar Financial Corp., 7/26/96 5.27 5,978,042 495
4,000M Panasonic Finance, Inc., 8/13/96 5.27 3,974,821 329
4,000M PepsiCo, Inc., 9/20/96 5.38 3,951,580 327
250M Phillip Morris Corp., 7/1/96 5.70 250,000 21
400M Phillip Morris Corp., 8/21/96 5.70 401,321 33
2,000M Pitney Bowes Credit, Inc., 7/16/96 5.32 1,995,567 165
1,950M Pitney Bowes Credit, Inc., 8/19/96 5.36 1,935,772 160
1,850M Republic New York Corp., 7/31/96 5.23 1,841,937 153
1,800M Schering-Plough Corp., 8/13/96 5.26 1,788,692 148
4,000M Schering-Plough Corp., 8/27/96 5.26 3,966,688 328
5,000M US West Telecommunications Inc., 7/10/96 5.30 4,993,376 414
3,000M Walt Disney Company, 7/15/96 5.35 2,993,758 248
3,000M Winn Dixie Stores, Inc., 8/19/96 5.35 2,978,154 247
2,500M Winn Dixie Stores, Inc., 9/4/96 5.42 2,475,535 205
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $110,509,417) 110,509,417 9,150
- --------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--3.3%
3,900M Tennessee Valley Authority, 9/9/96 (cost $3,951,894) 4.19 3,951,894 327
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $120,443,051)+ 99.7% 120,443,051 9,972
Other Assets, Less Liabilities .3 337,775 28
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $120,780,826 $10,000
================================================================================================================================
* The interest rates shown are the effective rates at the time of purchase by the Fund.
+ Aggregate cost for federal income tax purposes is the same.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL NOTES AND VARIABLE RATE SECURITIES--104.3%
Alabama--4.0%
<S> <C> <C> <C> <C>
$1,000M Birmingham General Obligation Wts., VR, 3.3%
(LOC; First Alabama Bank) $ 1,002,470 $ 399
- --------------------------------------------------------------------------------------------------------------------------------
California--4.8%
1,200M California Poll. Control Rev. Bonds, VR, 3.45%
(So. Cal. Edison) 1,202,890 479
- --------------------------------------------------------------------------------------------------------------------------------
Colorado--1.8%
45M Clear Creek County, Fin. Pool Prog. Rev. Antic. Notes, VR, 3.4%
(LOC; National Westminster Bank, PLC) 45,023 18
400M Moffat County, Poll. Control Rev. Bonds, VR, 3.6%
(Pacificorp) (AMBAC Insured) (SPA; Bank of New York) 401,053 159
- --------------------------------------------------------------------------------------------------------------------------------
446,076 177
- --------------------------------------------------------------------------------------------------------------------------------
Connecticut--.4%
100M State of Connecticut General Obligation Notes, 3.56%, 9/15/96 100,062 40
- --------------------------------------------------------------------------------------------------------------------------------
Delaware--2.0%
500M Delaware State General Obligation Bonds, 3.65%, 7/1/05
(Prerefunded 7/1/96) 510,000 203
- --------------------------------------------------------------------------------------------------------------------------------
District of Columbia--4.0%
1,000M District of Columbia, University Rev. Bonds, VR, 3.15%
(American University) (LOC; National Westminster Bank, PLC) 1,002,518 399
- --------------------------------------------------------------------------------------------------------------------------------
Florida--7.5%
500M Jacksonville Florida Health Facs. Rev. Bonds, VR, 3.4%
(LOC; NationsBank) 501,419 200
535M Pinellas County, Health Facs. Auth. Rev. Bonds, VR, 3.35%
(Bayfront Medical Center Project) (SPA; Barnett Bank South Florida)
(FGIC Insured) 536,298 213
500M Sunshine State Gov. Fin. Comm. Rev. Bonds, CP, 3.5%, 7/15/96
(LOC; Union Bank of Switzerland, National Westminster Bank, PLC,
Morgan Guaranty Trust Co.) 503,920 201
340M Volusia County, Health Facs. Auth. Rev. Bonds, VR, 3.7%
(FGIC Insured) (SPA; Banque Paribas) 340,969 136
- --------------------------------------------------------------------------------------------------------------------------------
1,882,606 750
- --------------------------------------------------------------------------------------------------------------------------------
Georgia--4.0%
500M Burke County, Dev. Auth. Poll. Control Rev. Bonds, VR, 3.75%
(Georgia Power Co.) 501,399 200
500M State of Georgia General Obligation Bonds, 3.7%, 3/1/97 509,885 202
- --------------------------------------------------------------------------------------------------------------------------------
1,011,284 402
- --------------------------------------------------------------------------------------------------------------------------------
Illinois--2.0%
500M Winnebago & Boone Counties Tax Antic. Notes, 3.15%, 10/30/96 509,769 203
- --------------------------------------------------------------------------------------------------------------------------------
Louisiana--6.8%
700M De Soto Parish Poll. Control Rev. Bonds, VR, 3.25%
(Central LA Electric) (LOC; Swiss Bank) 701,582 279
1,000M Jefferson Parish LA Hosp. Rev. Bonds, VR, 3.1%
(FGIC Insured) (SPA; FGIC Securities) 1,002,470 399
- --------------------------------------------------------------------------------------------------------------------------------
1,704,052 678
- --------------------------------------------------------------------------------------------------------------------------------
Maryland--5.0%
1,000M Baltimore County, Poll. Control Rev. Bonds, CP, 3.5%, 9/4/96
(Baltimore Gas & Electric Co.) 1,002,486 399
250M State of Maryland Dept. of Trans. Rev. Bonds, 4%, 7/1/97 256,310 102
- --------------------------------------------------------------------------------------------------------------------------------
1,258,796 501
- --------------------------------------------------------------------------------------------------------------------------------
Massachusetts--8.0%
1,000M Commonwealth General Obligation Notes, 3.82%, 6/10/97 1,004,938 400
1,000M Massachusetts State Health Facs. Auth. Rev. Bonds, VR, 3.4%
(MBIA Insured) (SPA; Credit Suisse) 1,002,567 399
- --------------------------------------------------------------------------------------------------------------------------------
2,007,505 799
- --------------------------------------------------------------------------------------------------------------------------------
Michigan--1.6%
400M University of Michigan Hospital Rev. Bonds, VR, 3.55% 401,116 160
- --------------------------------------------------------------------------------------------------------------------------------
Mississippi--1.6%
400M Claiborne County, Poll. Control Rev. Bonds, CP, 3.55%, 8/16/96
(National Rural Utilities Coop. Fin. Corp.) 402,263 160
- --------------------------------------------------------------------------------------------------------------------------------
Missouri--3.1%
530M Missouri State Env. Imp. & Energy Res. Auth. Poll. Control Rev.
Bonds, VR, 3.15% (National Rural Utilities Coop. Fin. Corp.) 531,212 211
250M Saint Louis City, Tax & Rev. Antic. Notes, 3.96%, 6/30/97 251,892 100
- --------------------------------------------------------------------------------------------------------------------------------
783,104 311
- --------------------------------------------------------------------------------------------------------------------------------
New Jersey--4.8%
400M Hunterdon County General Obligation Bonds, 3.32%, 12/15/96 401,391 160
800M New Jersey State Turnpike Auth. Rev. Bonds, VR, 3.0%
(FGIC Insured) (LOC; Societe Generale) 812,387 323
- --------------------------------------------------------------------------------------------------------------------------------
1,213,778 483
- --------------------------------------------------------------------------------------------------------------------------------
New York--1.6%
400M Triborough Bridge & Tunnel Auth. Rev. Bonds, VR, 3.05%
(FGIC Insured) (SPA; FGIC Securities) 400,941 159
- --------------------------------------------------------------------------------------------------------------------------------
Ohio--4.0%
1,000M Scioto County, Hosp. Facs. Rev. Bonds, VR, 3.25%
(AMBAC Insured) (First National Bank Chicago) 1,002,481 399
- --------------------------------------------------------------------------------------------------------------------------------
Pennsylvania--4.2%
500M City of Philadelphia Tax Rev. Antic. Notes, 3.95%, 6/30/97 502,620 200
300M Sayre PA Health Facs. Auth. Rev. Bonds, VR, 3.25%
(AMBAC Insured) (First National Bank Chicago) 300,752 120
250M State of Pennsylvania General Obligation Bonds, 3.6%, 11/1/96 252,452 100
- --------------------------------------------------------------------------------------------------------------------------------
1,055,824 420
- --------------------------------------------------------------------------------------------------------------------------------
Rhode Island--2.0%
500M Rhode Island Tax Antic. Notes, 3.85%, 6/30/97 503,110 200
- --------------------------------------------------------------------------------------------------------------------------------
South Carolina--5.6%
1,000M Charleston County, Hosp. Facs. Rev. Bonds, VR, 3.55%
(Brown Schools) (LOC; Bankers Trust) 1,002,496 399
400M South Carolina Ed. Facs. Rev. Bonds, VR, 3.35%
(Presbyterian Coll. Proj.) (LOC; Wachovia Bank) 401,116 160
- --------------------------------------------------------------------------------------------------------------------------------
1,403,612 559
- --------------------------------------------------------------------------------------------------------------------------------
Texas--12.1%
500M Capital Industrial Dev. Auth., Ind. Dev. Rev. Bonds, VR, 3.4%
(LOC; Wachovia Bank) 501,401 200
250M Dallas County General Obligation Bonds, 3.85%, 8/15/96 250,298 99
250M Houston Water & Sewer System Rev. Bonds, 3.75%, 12/1/02
(Prerefunded 12/1/96) 259,257 103
1,000M Lubbock Health Facs. Dev. Corp. Rev. Bonds, VR, 3.55%
(Charter Medical) (LOC; Bankers Trust) 1,009,036 401
1,000M State of Texas Rev. Antic. Notes, 3.85%, 8/30/96 1,040,957 414
- --------------------------------------------------------------------------------------------------------------------------------
3,060,949 1,217
- --------------------------------------------------------------------------------------------------------------------------------
Utah--4.0%
1,000M State of Utah General Obligation Bonds, 3.45%, 7/1/96 1,000,000 398
- --------------------------------------------------------------------------------------------------------------------------------
Virginia--2.8%
600M Lynchburg Ind. Dev. Auth., Hosp. Facs. Dev. Bonds, VR, 3.35%
(AMBAC Insured) (LOC; Mellon Bank) 601,523 239
100M Virginia Public Facs. General Obligation Bonds, 3.6%, 12/1/96 100,000 40
- --------------------------------------------------------------------------------------------------------------------------------
701,523 279
- --------------------------------------------------------------------------------------------------------------------------------
Washington--3.8%
950M Port of Kalama, Pub. Corp. Port. Rev. Bonds, VR, 3%
(Conagra Corp.) (LOC; Morgan Guaranty Trust Co.) 952,098 379
- --------------------------------------------------------------------------------------------------------------------------------
West Virginia--.8%
200M West Virginia Hosp. Fin. Auth. Hosp. Rev. Bonds, VR, 3.3%
(St. Joseph's Hosp. Proj.) (LOC; Bank One) 200,502 80
- --------------------------------------------------------------------------------------------------------------------------------
Wyoming--2.0%
500M Kemmerer Wyoming Poll. Control Rev. Bonds, VR, 3.5%
(Exxon Corp.) 501,366 199
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $26,220,695)+ 104.3% 26,220,695 10,433
Excess of Liabilities Over Other Assets (4.3) (1,089,393) (433)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $25,131,302 $10,000
================================================================================================================================
The interest rates shown for municipal notes and bonds are the effective rates at the time of purchase by the Fund. The interest
rates on variable rate securities are adjusted periodically; the rates shown are the rates that were in effect at June 30, 1996.
The variable rate securities are subject to optional tenders (which are exercised through put options) or mandatory redemptions.
The put options are exercisable on a daily, weekly, monthly or semi-annual basis at a price equal to the principal amount plus
accrued interest.
+ Aggregate cost for federal income tax purposes is the same.
Summary of Abbreviations:
LOC Letter of Credit
SPA Security Purchase Agreement
VR Variable Rate Notes
CP Municipal Commercial Paper
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities (Note 1A):
At amortized cost $120,443,051 $26,220,695
============ ===========
At value $120,443,051 $26,220,695
Cash 752,482 463,037
Interest receivable 106,804 122,894
Receivable for capital shares sold 140 --
Other assets 24,200 4,891
------------ -----------
Total Assets 121,326,677 26,811,517
------------ -----------
Liabilities
Payables:
Investment securities purchased -- 1,509,060
Dividend disbursing agent 465,196 76,928
Capital shares redeemed 43,727 78,453
Accrued expenses 36,928 15,774
------------ -----------
Total Liabilities 545,851 1,680,215
------------ -----------
Net Assets $120,780,826 $25,131,302
============ ===========
Capital shares outstanding (Note 2):
Class A 120,742,978 25,131,292
Class B 37,848 10
Net asset value, offering price and redemption price per share--
Class A and Class B (Net assets divided by shares outstanding) $1.00 $1.00
===== =====
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Six Months Ended June 30, 1996
- --------------------------------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Interest income $3,392,125 $439,061
---------- --------
Expenses (Notes 1D and 3):
Advisory fee 311,355 63,309
Shareholder servicing costs 330,561 43,554
Reports and notices to shareholders 44,322 3,015
Custodian fees 24,770 8,399
Professional fees 8,316 11,990
Other expenses 17,496 5,616
---------- --------
Total expenses 736,820 135,883
Less: Expenses waived or assumed (302,431) (46,666)
Custodian fees paid indirectly (501) (993)
---------- --------
Net expenses 433,888 88,224
---------- --------
Net investment income 2,958,237 350,837
Net realized gain on investments 1,947 --
---------- --------
Net Increase in Net Assets Resulting from Operations $2,960,184 $350,837
========== ========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
------------------------------------- ------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, 1995 June 30, 1996 December 31, 1995
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 2,958,237 $ 6,474,202 $ 350,837 $ 792,563
Net realized gain (loss) on investments 1,947 6,967 -- (742)
------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations and declared as
distributions to shareholders
(Note 1C) $ 2,960,184 $ 6,481,169 $ 350,837 $ 791,821
============ ============ =========== ===========
Capital Share Transactions (Note 2)
Class A:
Proceeds from shares sold $158,629,191 $270,334,802 $19,180,717 $34,618,262
Value of distributions reinvested 2,402,034 6,848,793 289,249 772,248
Cost of shares redeemed (168,923,017) (277,043,961) (19,383,225) (36,769,598)
------------ ------------ ----------- -----------
(7,891,792) 139,634 86,741 (1,379,088)
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 141,346 90,178 -- 10
Value of distributions reinvested 821 349 -- --
Cost of shares redeemed (159,846) (35,000) -- --
------------ ------------ ----------- -----------
(17,679) 55,527 -- 10
------------ ------------ ----------- -----------
Total increase (decrease) in net assets (7,909,471) 195,161 86,741 (1,379,078)
Net Assets
Beginning of period 128,690,297 128,495,136 25,044,561 26,423,639
------------ ------------ ----------- -----------
End of period $120,780,826 $128,690,297 $25,131,302 $25,044,561
============ ============ =========== ===========
See notes financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
1. Significant Accounting Policies--The Funds are registered under
the Investment Company Act of 1940 (the "1940 Act") as diversified,
open-end management investment companies. The objective of each Fund
is as follows:
Cash Management Fund seeks to earn a high rate of current income
consistent with the preservation of capital and maintenance of
liquidity.
Tax-Exempt Money Market Fund seeks to earn a high rate of current
income exempt from federal income tax and is not a tax preference
item, consistent with the preservation of capital and maintenance of
liquidity.
A. Security Valuation--The Funds value portfolio securities using
the amortized cost method, which excludes unrealized gains or losses
from the computation of portfolio value. This is accomplished by
valuing a security at cost plus amortization of discount or
accretion of premium. While this method of valuation tends to
produce stable valuation of securities held to their maturity, the
actual market value of the security, if sold prior to maturity, may
vary from the security's value to the Funds while in the Funds'
portfolios.
B. Federal Income Taxes--It is the policy of the Funds 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 to relieve the Funds from
all, or substantially all, federal income taxes.
C. Distributions--The Funds declare distributions daily and pay
distributions monthly. Distributions are declared from the total of
net investment income and net realized gains or losses on
investments. Distributions paid by the Tax-Exempt Money Market Fund
from net investment income are considered exempt-interest dividends
and as such should not be subject to federal income taxes.
D. 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 amortized cost basis for both financial
statement and federal income tax purposes. Interest income and
estimated expenses are accrued daily. The Custodian of Cash
Management Fund and Tax-Exempt Money Market Fund has provided
credits in the amounts of $501 and $993, respectively, against
custodian charges based on the uninvested cash balances of the
Funds.
2. Capital Stock--At June 30, 1996, paid-in capital amounted to
$120,780,826 for the Cash Management Fund and $25,131,302 for the
Tax-Exempt Money Market Fund. The numbers of shares transacted
during the period are the same as the amounts included in the
Statement of Changes in Net Assets since shares are recorded at
$1.00 per share.
The Funds sell two classes of shares, Class A and Class B. The Class
B shares are subject to a 1% 12b-1 fee and may only be acquired
through an exchange from another First Investors eligible Fund. For
the six months ended June 30, 1996, the underwriter waived .25% of
the 12b-1 fee paid by the Class B shares of the Cash Management
Fund. As of June 30, 1996, there have been no transactions in the
Class B shares for the Tax-Exempt Money Market Fund other than the
sale of 10 shares to First Investors Management Company, Inc.
("FIMCO").
3. Advisory Fee and Other Transactions With Affiliates--Certain
officers and directors of the Funds are officers and directors of
the investment adviser, FIMCO, the underwriter, First Investors
Corporation ("FIC"), the transfer agent, Administrative Data
Management Corp. ("ADM") and/or First Financial Savings Bank, S.L.A.
("FFS"), custodian of the Cash Management Fund's Individual
Retirement Accounts. Officers and directors of the Funds received no
remuneration from the Funds for serving in such capacities. Their
remuneration (together with certain other expenses of the Funds) is
paid by FIMCO or FIC.
The Investment Advisory Agreements provide as compensation to FIMCO
an annual fee, payable monthly, at the rate of 1U2 of 1% of each
Fund's average daily net assets. For the six months ended June 30,
1996, the investment adviser assumed expenses of the Cash Management
Fund and the Tax-Exempt Money Market Fund of $217,726 and $35,339,
respectively.
Pursuant to certain state regulations, FIMCO has agreed to reimburse
each Fund if and to the extent that the Fund's aggregate operating
expenses, including the advisory fee but generally excluding
interest, taxes, brokerage commissions and extraordinary expenses,
exceed any limitation on expenses applicable to the Fund in those
states (unless waivers of such limitations have been obtained). The
amount of any such reimbursement is limited to the yearly advisory
fee. For the six months ended June 30, 1996, no reimbursement was
required pursuant to these provisions.
For the six months ended June 30, 1996, shareholder servicing costs
of the Cash Management Fund included transfer agent fees and out of
pocket expenses accrued to ADM of $234,539 (net of $84,705 waived)
and $11,317 in custodian fees paid to FFS. The Tax-Exempt Money
Market Fund's shareholder servicing costs included transfer agent
fees and out of pocket expenses accrued to ADM in the amount of
$32,227 (net of $11,327 waived).
The Tax-Exempt Money Market Fund has adopted a Distribution Plan
under Rule 12b-1 of the 1940 Act, under which fees may be paid to
Administrators for distribution and administrative services.
Payments are made by the underwriter in its sole discretion, and no
Administrator will receive more than .25% of the funds represented
by shares owned by its clients.
Financial Highlights
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
The following table sets forth the per share operating performance
data for a share of capital stock outstanding, total return, ratios
to average net assets and other supplemental data for each period
indicated.
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------
Per Share Data Ratios / Supplemental Data
------------------------------------ --------------------------------------------------------------
Ratio to Average
Net Assets
Ratio to Prior to Waiver
Average Net Assets+ of Fees (Note 3)
Net Asset -------------------- ------------------
Value Dividends Net Assets Net Net
(unchanged Net from Net Total End of Investment Investment
during each Investment Investment Return Period Expenses Income Expenses Income
period) Income Income (%) (thousands) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1991 $1.00 $.052 $.052 5.35 $217,150 .94 5.33 1.13 5.14
1992 1.00 .030 .030 3.03 150,895 .87 3.02 1.16 2.72
1993 1.00 .025 .025 2.57 127,178 .70 2.54 1.15 2.09
1994 1.00 .036 .036 3.69 128,495 .70 3.72 1.15 3.26
1995 1.00 .053 .053 5.42 128,635 .70 5.29 1.18 4.81
1/1/96-6/30/96 1.00 .024 .024 2.40 120,743 .70(a) 4.75(a) 1.18(a) 4.26(a)
CLASS B
1995* 1.00 .044 .044 4.46 56 1.45(a) 4.54(a) 1.93(a) 4.06(a)
1/1/96-6/30/96 1.00 .020 .020 2.02 38 1.25(a) 4.20(a) 1.74(a) 3.71(a)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
CLASS A
1991 $1.00 $.038 $.038 3.87 $31,157 .94 3.83 1.02 3.74
1992 1.00 .023 .023 2.36 25,399 .95 2.33 1.05 2.23
1993 1.00 .018 .018 1.85 23,857 .70 1.83 .92 1.61
1994 1.00 .022 .022 2.24 26,424 .70 2.24 1.02 1.92
1995 1.00 .032 .032 3.24 25,045 .71 3.18 1.06 2.84
1/1/96-6/30/96 1.00 .014 .014 1.39 25,131 .70(a) 2.77(a) 1.07(a) 2.40(a)
CLASS B (See Note 2)
+ Net of fees waived or assumed
* For the period January 12, 1995 (date Class B shares were first
offered) to December 31, 1995
(a) Annualized
See notes to financial statements
</TABLE>
Independent Auditor's Report
To the Shareholders and Board of Directors of
First Investors Cash Management Fund, Inc. and
First Investors Tax-Exempt Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities
of First Investors Cash Management Fund, Inc. and First Investors
Tax-Exempt Money Market Fund, Inc. including the portfolios of
investments, as of June 30, 1996, and the related statement of
operations for the six months then ended, the statement of changes
in net assets for the six months ended June 30, 1996 and the year
ended December 31, 1995 and financial highlights for each of the
periods presented. 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 generally accepted
auditing standards. 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 June
30, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of First Investors Cash Management Fund, Inc. and
First Investors Tax-Exempt Money Market Fund, Inc. at June 30, 1996,
and the results of their operations, changes in their net assets and
financial highlights for each of the respective periods presented,
in conformity with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
July 31, 1996
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Directors
- ---------------------------------------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- ---------------------------------------
Glenn O. Head
President
Nancy W. Jones
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
Each Fund is a money market fund and seeks to maintain a stable net
asset value of $1.00 per share. However, there can be no assurance
that either Fund will be able to do so or to achieve its investment
objective. An investment in either Fund is neither insured nor
guaranteed by the U.S. Government.
Shareholder Information
- ---------------------------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
It is each Fund's practice to mail only one copy of its annual and
semi-annual reports to any address at which more than one
shareholder with the same last name has indicated that mail is to be
delivered. Additional copies of the reports will be mailed if
requested by any shareholder in writing or by calling 800-423-4026.
Each Fund 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 Fund's prospectus.
