<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets. The broad
stock market averages repeatedly closed at record highs, and bond prices surged
as long-term interest rates fell almost two percent. Several general factors
contributed to this strong performance. First, the U.S. economy grew at a
moderate pace throughout the year. Second, the rate of inflation declined,
reaching its lowest level since the 1960s. Third, the Federal Reserve began
lowering short-term interest rates during the second half of the year. Finally,
during the fourth quarter, Congress and the President appeared close to reaching
an agreement to eliminate the Federal budget deficit over the next seven years.
As evidence of a potentially softer economy and a less threatening inflationary
outlook were unfolding, investment strategies for money market funds were
changing. After shortening their average maturities throughout most of 1994,
many fund managers grew convinced that the year long trend to higher rates was
finally ending. Taxable money market funds moved sharply toward longer average
maturities during the first half of the year, increasing their weighted average
maturities from 36 days to 50 days by the end of June. Throughout the second
half of the year, weighted average maturities extended slightly, reflecting the
continued belief that short-term interest rates would continue to move lower in
the near future.
Short-term tax free interest rates also moved generally lower in 1995,
reflecting the change in economic outlook and increased liquidity in the market
place. Over the last few years, market participants have become increasingly
concerned about financial and administrative management at the state and local
government levels. Many issuers of municipal debt, in order to address these
concerns, have come to market with letters of credit supporting their
borrowings. Letters of credit generally provide additional assurance that buyers
of a security will receive their principal and interest at the maturity of the
note.
Money market funds remained an integral part of the investment universe in 1995
as evidenced by the continued inflow of new money. Assets in taxable money
market funds increased by over 25% in 1995, while assets in tax-free money
market funds increased by over 13%. For 1995, First Investors Cash Management
Fund returned 5.4% on Class A shares and 4.5% on Class B shares. The First
Investors Tax-Exempt Money Market Fund returned 3.2% on Class A shares and 2.4%
on Class B shares. Class B shares were first offered for sale by the Funds on
January 12, 1995. The income from the Tax-Exempt Fund was 100% free from Federal
income taxes and partially free from certain state taxes.
In 1996 we expect continued slow growth and low inflation, likely resulting in
additional easing by the Federal Reserve. Volatility will probably continue if
Congress and the President fail to agree on a balanced budget agreement. In the
tax exempt bond market, the uncertainty of potential tax reform remains the
biggest issue.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Michael J. O'Keefe
Michael J. O'Keefe
Portfolio Manager
January 31, 1996
1
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
December 31, 1995
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
PRINCIPAL INTEREST $10,000 OF
AMOUNT SECURITY RATE* VALUE NET ASSETS
- ---------- ------------------------------------------------------- ----- ------------ -----------
<S> <C> <C> <C> <C>
CORPORATE NOTES--90.3%
$6,000M Ameritech Capital Funding Corporation, 2/27/96 5.50% $ 5,947,750 $ 462
3,000M Appalachian Power, Inc., 1/4/96 6.10 2,998,475 233
5,000M BellSouth Telecommunications, Inc., 2/9/96 5.63 4,969,504 386
4,000M Chevron Oil Finance Company, 2/9/96 5.65 3,975,517 309
5,000M Colgate-Palmolive Company, 2/15/96 5.64 4,964,750 386
5,800M CPC International, Inc., 3/11/96 5.58 5,737,070 445
3,300M Dresser Industries, Inc., 1/31/96 5.73 3,284,256 255
4,000M Du Pont (E.I.) de Nemours & Company, 1/19/96 5.65 3,988,700 310
6,000M General Electric Capital Corporation, 1/31/96 5.65 5,971,750 464
3,000M GTE South, Inc., 2/7/96 5.73 2,982,333 232
3,300M Heinz (H.J.) Company, 2/12/96 5.57 3,278,556 255
5,000M Hewlett-Packard Company, 1/25/96 5.67 4,981,100 387
4,300M Idaho Power Company, 1/12/96 5.85 4,292,314 334
2,800M Lubrizol Corporation, 1/29/96 5.73 2,787,521 217
2,000M McGraw-Hill, Inc., 2/2/96 5.67 1,989,920 155
3,000M McGraw-Hill, Inc., 4/2/96 5.50 2,957,834 230
4,350M Merck & Company, Inc., 8/14/96 5.59 4,459,797 347
4,200M National Rural Utilities Coop. Fin. Corporation, 2/9/96 5.62 4,174,429 324
450M National Rural Utilities Coop. Fin. Corporation, 5/6/96 5.70 476,499 37
3,000M Panasonic Finance, Inc., 2/5/96 5.65 2,983,521 232
3,000M PepsiCo, Inc., 1/30/96 5.68 2,986,273 232
2,800M PepsiCo, Inc., 1/30/96 5.86 2,888,012 224
5,000M Pitney Bowes Credit, Inc., 1/5/96 5.72 4,996,822 387
6,000M Rockwell International Corporation, 1/17/96 5.70 5,984,800 465
5,000M Sandoz Corporation, 3/19/96 5.58 4,939,550 384
2,500M Schering-Plough Corporation, 1/16/96 5.67 2,494,094 194
5,000M The Stanley Works, 3/6/96 5.60 4,949,444 385
4,000M U.S. Borax & Chemical Corporation, 1/23/96 5.68 3,986,116 310
2,300M Waste Management, Inc., 4/14/96 5.84 2,314,200 180
2,500M Winn Dixie Stores, Inc., 2/8/96 5.66 2,485,064 193
1,000M Winn Dixie Stores, Inc., 2/23/96 5.63 991,711 77
Total Value of Corporate Notes (cost $116,217,682) 116,217,682 9,031
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
PRINCIPAL INTEREST $10,000 OF
AMOUNT SECURITY RATE* VALUE NET ASSETS
- --------- -------- ------- ----- ----------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCIES--9.6%
$6,000M Federal Home Loan Bank, 12/27/96 5.55% $ 6,004,548 $467
250M Federal Home Loan Mortgage Corporation, 6/3/96 5.52 249,811 19
2,200M Federal National Mortgage Association, 1/25/96 5.59 2,191,801 170
3,900M Tennessee Valley Authority, 9/9/96 5.51 3,927,763 305
TOTAL VALUE OF U.S. GOVERNMENT AGENCIES (cost $12,373,923) 12,373,923 961
TOTAL VALUE OF INVESTMENTS
(cost $128,591,605)+ 99.9% 128,591,605 9,992
OTHER ASSETS, LESS LIABILITIES .1 98,692 8
NET ASSETS 100.0% $128,690,297 $10,000
</TABLE>
*The interest rates shown for the corporate and U.S. Government agency notes 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
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 1995
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
--------- -------- ----- ----------
<S> <C> <C> <C>
MUNICIPAL NOTES AND VARIABLE RATE SECURITIES--96.9%
ALABAMA--4.0%
$1,000M Birmingham General Obligation Wts., VR, 5.2%
(LOC; First Alabama Bank) $ 1,003,606 $ 401
ARIZONA--4.0%
1,000M Maricopa County, Poll. Control Rev. Bond, VR, 5.0%
(Pub. Svc. New Mexico) (LOC; Canadian Imperial Bank) 1,003,647 401
CALIFORNIA--4.8%
1,200M California Poll. Control Rev. Bonds, VR, 5.4% (So. Cal. Edison) 1,204,355 481
COLORADO--.3%
70M Clear Creek County, Fin. Pool Prog. Rev. Antic. Notes, VR, 5.15%
(LOC; National Westminster Bank) 70,229 28
DELAWARE--2.2%
500M Delaware State General Obligation Bonds, 7.5%, 7/1/2005
(Prerefunded 7/1/96) 538,016 215
FLORIDA--11.5%
1,000M Jacksonville Florida Electric Rev. Bonds, 3.4%, CP, 3/8/96
(Jacksonville Elec.) (SPA; Morgan Guaranty Trust Co.) 1,002,329 400
535M Pinellas County Health Facs. Auth. Rev. Bonds, VR, 4.9%
(Bayfront Medical Center Project) (SPA; Barnett Bank South Florida) 536,652 215
1,000M Sunshine State Gov. Fin. Comm. Rev. Bonds, CP, 3.5%, 2/8/96
(LOC; Union Bank of Switzerland, National Westminster Bank
Morgan Guaranty Trust Co.) 1,002,397 400
340M Volusia County, Health Fac. Auth. Rev. Bonds, VR, 5.0%
(FGIC Insured) (SPA; Banque Paribas) 341,247 136
2,882,625 1,151
GEORGIA--4.4%
600M Cobb County, Multi-Family Hsg. Auth. Rev. Bonds, VR, 5.15%
(LOC; Mellon Bank, Pittsburgh) 602,242 241
500M Monroe County, Dev. Auth. Poll. Control Rev. Bonds, VR, 5.5%
(Gulf Power Co.) 501,843 200
1,104,085 441
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------- --------------------------------------------------------------- ---------- ----------
<S> <C> <C> <C>
ILLINOIS--2.0%
$500M State of Illinois Rev. Antic. Certs., 4.5%, 5/10/96 $ 510,164 $204
LOUISIANA--2.8%
700M De Soto Parish Poll. Control Rev. Bonds, VR, 5.05%
(Central LA Electric) (LOC; Swiss Bank) 702,136 280
MARYLAND--4.0%
1,000M Baltimore County, Poll. Control Rev. Bonds, CP, 3.4%, 3/12/96
(Baltimore Gas & Electric Co.) 1,002,422 400
MICHIGAN--2.0%
500M Detroit City School Dist. School Aid Notes, 4.5%, 5/1/96 510,424 204
MISSISSIPPI--1.6%
400M Claiborne County, Poll. Control Rev. Bonds, CP, 3.55%, 2/9/96
(National Rural Utilities Coop. Fin. Corp.) 400,973 160
MISSOURI--6.2%
530M Missouri State Env. Imp. & Energy Res. Auth. Poll. Control Rev.
Bonds, VR, 4.65% (National Rural Utilities Coop. Fin. Corp.) 531,427 212
1,000M Saint Louis City, Tax & Rev. Antic. Notes, 4.5%, 6/20/96 1,025,533 410
1,556,960 622
NEW JERSEY--7.3%
800M New Jersey State Turnpike Auth. Rev. Bonds, VR, 4.8%
(FGIC Insured) (LOC; Societe Generale) 813,989 325
1,000M State of New Jersey Tax & Rev. Antic. Notes, CP, 3.3%, 2/16/96
(Advance Agreement; Union Bank of Switzerland) 1,002,441 400
1,816,430 725
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 1995
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------- -------- ---------- ----------
<S> <C> <C> <C>
NEW YORK--4.1%
$1,000M New York City Tax Antic. Notes, 4.5%, 2/15/96 $1,019,577 $407
RHODE ISLAND--4.1%
1,000M Rhode Island Tax Antic. Notes, 4.5%, 6/28/96 1,026,794 410
SOUTH CAROLINA--5.6%
1,000M Charleston County, Hosp. Facs. Rev. Bonds, VR, 5.3%
(Brown Schools) (LOC; Bankers Trust) 1,003,626 401
400M South Carolina Ed. Facs. Rev. Bonds, VR, 5.3%
(Presbyterian Coll. Proj.) (LOC; South Carolina National Bank) 401,469 160
1,405,095 561
TEXAS--17.2%
500M Capital Indust. Dev. Corp., Ind. Dev. Rev. Bonds, VR, 5.15%
(Capital Industries) (LOC; Wachovia Bank) 501,837 200
250M Dallas County General Obligation Bonds, 4.75%, 8/15/96 259,539 104
1,000M Fort Worth Texas Water Sewer System Rev. Bonds, CP, 3.75%, 3/7/96
(Liquidity Agreement; Swiss Bank Corp.) 1,001,849 400
500M Gulf Coast Waste Disp. Auth. Poll. Control Rev. Bonds, VR, 5.9%
(Amoco Oil Co.) 501,862 200
1,000M Lubbock Health Facs. Dev. Corp. Rev. Bonds, VR, 5.3%
(Charter Medical) (LOC; Bankers Trust) 1,010,194 403
1,000M State of Texas Rev. Antic. Notes, 4.75%, 8/30/96 1,021,582 409
4,296,863 1,716
VIRGINIA--2.0%
500M Lynchburg Ind. Dev. Auth., Hosp. Facs. Dev. Bonds, VR, 5.0%
(Ambac Insured) (LOC; Mellon Bank) 501,750 200
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------- -------- -------- ----------
<S> <C> <C> <C> <C>
WASHINGTON--4.0%
$1,000M Port of Kalama, Pub. Corp. Rev. Bonds, VR, 4.85%
(Conagra Corp.) (LOC; Morgan Guaranty Trust Co.) $ 1,002,995 $ 400
WEST VIRGINIA--.8%
200M West Virginia Hosp. Fin. Auth. Hosp. Rev. Bonds, VR, 5.2%
(St. Joseph's Hosp. Proj.) (LOC; Bank One) 200,742 80
WISCONSIN--2.0%
500M Milwaukee Wisconsin General Obligation Bonds, 6.25%, 6/15/96 507,171 203
TOTAL VALUE OF INVESTMENTS (cost $24,267,059)+ 96.9% 24,267,059 9,690
OTHER ASSETS, LESS LIABILITIES 3.1 777,502 310
NET ASSETS 100.0% $25,044,561 $10,000
</TABLE>
The interest rates shown for municipal notes 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
December 31, 1995. 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
7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
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............................................... $128,591,605 $24,267,059
============ ===========
At value........................................................ $128,591,605 $24,267,059
Cash 364,923 841,419
Other assets......................................................... 24,200 4,891
------------ -----------
Total Assets......................................................... 128,980,728 25,113,369
------------ -----------
LIABILITIES
Payables:
Capital shares redeemed......................................... 222,818 35,859
Dividend disbursing agent....................................... 13,195 22,006
Accrued expenses..................................................... 34,111 5,919
Accrued advisory fee................................................. 20,307 5,024
------------ -----------
Total Liabilities.................................................... 290,431 68,808
------------ -----------
NET ASSETS........................................................... $128,690,297 $25,044,561
============ ===========
CAPITAL SHARES OUTSTANDING (Note 2):
Class A......................................................... 128,634,770 25,044,551
Class B......................................................... 55,527 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
============ ===========
</TABLE>
See notes to financial statements
8
<PAGE>
STATEMENT OF OPERATIONS
Year Ended December 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
FIRST INVESTORS FIRST INVESTORS
CASH MANAGEMENT TAX-EXEMPT MONEY
FUND, INC. MARKET FUND, INC.
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income............................................. $7,331,050 $966,073
---------- --------
Expenses (Note 3):
Advisory fee.............................................. 611,689 123,947
Shareholder servicing costs............................... 627,244 86,600
Reports and notices to shareholders....................... 77,121 6,902
Custodian fees............................................ 56,132 15,445
Professional fees......................................... 30,634 18,775
Other expenses............................................ 39,952 10,146
---------- --------
Total expenses.............................................. 1,442,772 261,815
Less: Portion of expenses waived............................ (584,612) (84,742)
Custodian fees paid indirectly............................. (1,312) (3,563)
---------- --------
Net expenses 856,848 173,510
---------- --------
Net investment income....................................... 6,474,202 792,563
Net realized gain (loss) on investments..................... 6,967 (742)
---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $6,481,169 $791,821
========== ========
</TABLE>
See notes to financial statements 9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FIRST INVESTORS FIRST INVESTORS
CASH MANAGEMENT TAX-EXEMPT MONEY
FUND, INC. FUND, INC.
----------------------------- -----------------------------------
Year Ended December 31 1995 1994 1995 1994
- ----------------------------------------- -------------- -------------- ---------------- -----------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.................... $ 6,474,202 $ 4,480,477 $ 792,563 $ 561,501
Net realized (gain) loss on investments.. 6,967 (2,388) (742) --
------------- ------------- ------------ ------------
Net increase in net assets resulting
from operations and declared as
distributions to shareholders
(Note 1C) $ 6,481,169 $ 4,478,089 $ 791,821 $ 561,501
------------- ------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Class A:
Proceeds from shares sold................ $ 270,334,802 $ 281,311,936 $ 34,618,262 $ 37,386,855
Value of distributions reinvested........ 6,848,793 3,812,783 772,244 544,099
Cost of shares redeemed.................. (277,043,961) (283,807,863) (36,769,598) (35,364,302)
------------- ------------- ------------ ------------
139,634 1,316,856 (1,379,088) 2,566,652
------------- ------------- ------------ ------------
Class B:
Proceeds from shares sold................ 90,178 -- 10 --
Value of distributions reinvested........ 349 -- -- --
Cost of shares redeemed.................. (35,000) -- -- --
------------- ------------- ------------ ------------
55,527 -- 10 --
------------- ------------- ------------ ------------
Total increase (decrease) in net assets.. 195,161 1,316,856 (1,379,078) 2,566,652
NET ASSETS
Beginning of year........................ 128,495,136 127,178,280 26,423,639 23,856,987
------------- -------------- ------------ ------------
End of year.............................. $ 128,690,297 $ 128,495,136 $ 25,044,561 $ 26,423,639
============= ============= ============ ============
</TABLE>
See notes to financial statements
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
1. SIGNIFICANT ACCOUNTING POLICIES--First Investors Cash Management Fund, Inc.
(the "Cash Management Fund") and First Investors Tax-Exempt Money Market Fund,
Inc. (the "Tax-Exempt Money Market Fund") (collectively, 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, for non-corporate shareholders, the federal
alternative minimum tax.
A. Security Valuation--The Funds value all of their 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 amortized discount or accrued interest. 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 amount of $1,312 and $3,563, respectively, against custodian
charges based on the uninvested cash balances of the Funds.
2. CAPITAL STOCK--At December 31, 1995, paid-in capital amounted to $128,690,297
for the Cash Management Fund and $25,044,561 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 year 1995, the underwriter waived
.25% of the 12b-1 fee paid by the Class B shares. As of December 31, 1995, 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.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
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 1/2 of 1% of each Fund's average daily net
assets. For the year ended December 31, 1995, the investment adviser voluntarily
reduced this fee by $354,517 for the Cash Management Fund and by $52,465 for the
Tax-Exempt Money Market Fund.
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
year ended December 31, 1995, no reimbursement was required pursuant to these
provisions.
For the year ended December 31, 1995, shareholder servicing costs of the Cash
Management Fund included transfer agent fees and out of pocket expenses accrued
to ADM of $372,756 (net of $230,095 waived) and $24,393 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
$54,323 (net of $32,277 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.
12
<PAGE>
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 year indicated.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
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 Net
(unchanged Net from Net Total Net Assets Investment Investment
during each Investment Investment Return End of Year Expenses Income Expenses Income
year) Income Income (%) (thousands) (%) (%) (%) (%)
- --------------------------- ---------- ------ ------- ---------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
CLASS A
- -------
1986 $1.00 $.058 $.058 5.92 $251,041 1.07 5.81 N/A N/A
1987 1.00 .058 .058 6.01 218,099 .98 5.84 1.02 5.80
1988 1.00 .068 .068 7.03 222,715 .85 6.83 .95 6.73
1989 1.00 .085 .085 8.80 335,678 .84 8.44 .96 8.32
1990 1.00 .074 .074 7.71 372,081 .86 7.45 .96 7.35
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
CLASS B
- -------
1995* 1.00 .044 .044 4.46 56 1.45(a) 4.54(a) 1.93(a) 4.06(a)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
- --------------------------------------------------
CLASS A
- -------
1986 $1.00 $.041 $.041 4.15 $ 47,838 .77 4.02 N/A N/A
1987 1.00 .039 .039 4.01 40,106 .76 3.92 N/A N/A
1988 1.00 .046 .046 4.68 39,467 .75 4.59 N/A N/A
1989 1.00 .055 .055 5.67 36,736 .81 5.52 N/A N/A
1990 1.00 .052 .052 5.31 40,745 .80 5.19 N/A N/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
CLASS B
- --------------
1995* 1.00 .024 .024 2.40 .01 1.46(a) 2.43(a) 1.81(a) 2.09(a)
</TABLE>
+ Net of fees waived by the investment adviser and the transfer agent
* For the period January 12, 1995 (date Class B shares were first offered) to
December 31, 1995
(a) Annualized
See notes to financial statements 13
<PAGE>
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 December 31, 1995, and
the related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended and
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
December 31, 1995, by correspondence with the custodian. 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 December 31, 1995, 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
January 31, 1996
14
<PAGE>
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
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.
15
<PAGE>
FIRST
INVESTORS
CASH
MANAGEMENT
FUND, INC.
FIRST
INVESTORS
TAX-EXEMPT
MONEY MARKET
FUND, INC.
ANNUAL
REPORT
DECEMBER 31, 995
Vertically reading from bottom 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. 1793" in a box to the right of
a circle containing the words 'MAILED FROM ZIP CODE 17604" 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
