FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
95 WALL STREET
NEW YORK, NY 10005
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FIRST
INVESTORS
CASH
MANAGEMENT
FUND, INC.
FIRST
INVESTORS
TAX-EXEMPT
MONEY MARKET
FUND, INC.
SEMI-
ANNUAL
REPORT
JUNE 30, 1998
Chief Investment Officer's Market Overview Letter
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
We are pleased to present the semi-annual report for First Investors
Cash Management Fund, Inc. and First Investors Tax-Exempt Money Market
Fund, Inc. for the six months ended June 30, 1998. Although both the
bond and stock markets suffered setbacks at times during the first six
months of the year, the combination of moderate growth, low inflation,
and respectable corporate earnings reports helped provide a positive
environment for investors in most types of funds.
The U.S. economy remained strong for the first half of 1998, with
sustained, moderate growth and low levels of inflation and unemployment.
Inflation remained low, as the Consumer Price Index rose just 1.7% for
the twelve months ended June 30. The unemployment rate continued to be
low, at 4.5% as of June 30, 1998. Consumer confidence remained high,
encouraged by the robust domestic economy and rising income levels.
In general, our long-term outlook for the financial markets continues to
be positive. The economy appears to be growing moderately, inflation
remains subdued and the Federal Reserve appears unlikely to tolerate
unsustainably fast economic growth. In regard to the stock market, we
are encouraged by the underlying fundamentals of the U.S. economy.
However, we are cautioned by a number of situations, including the
struggles in Asia. We are concerned about the effect this region's
difficulties may have on U.S. growth and corporate earnings. We are also
concerned about the relative lack of pricing power and the prospects
that the lofty level of gains posted year-to-date can continue into the
second half of 1998.
With regard to the bond market, interest rates continue to remain in a
tight range; we believe the Federal Reserve is likely to maintain
current interest rates. Continued weak Asian markets, low inflation in
the U.S. and the Federal budget surplus should support an environment of
low interest rates and high bond prices. However, the continued strength
of the U.S. economy could result in higher interest rates and inflation,
notwithstanding Asia. In this event, bond fund values would decline.
Thank you for your continued confidence in First Investors. As always,
we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
First Investors Management Company, Inc.
July 31, 1998
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
June 30, 1998
- ------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES--84.0%
$ 3,500M Abbott Laboratories, 7/20/98 5.60% $ 3,489,656 $ 235
1,000M Anheuser Busch Co., Inc., 12/16/98 5.70 998,607 67
1,250M Associates Corp. of North America, 8/1/98 5.66 1,252,682 84
7,000M Bell Atlantic Network Funding, Inc., 7/30/98 5.55 6,968,704 468
6,000M BellSouth Telecommunications, Inc., 7/8/98 5.75 5,993,292 403
1,430M Brown-Forman Corp., 7/10/98 5.60 1,427,998 96
7,000M Chevron USA, Inc., 8/28/98 5.48 6,938,198 466
2,592M Coca-Cola Company, 8/5/98 5.48 2,578,190 173
6,000M Consolidated Natural Gas Company, 7/17/98 5.54 5,985,227 402
2,500M Dresser Industries, Inc., 8/3/98 5.57 2,487,235 167
4,000M Eastman Kodak Company, 8/3/98 5.51 3,979,797 267
2,000M Eastman Kodak Company, 8/18/98 5.58 1,985,120 133
6,000M Florida Power Corp., 7/29/98 5.54 5,974,147 401
2,000M Ford Motor Credit Corp., 7/24/98 5.50 1,992,972 134
310M Ford Motor Credit Corp., 1/15/99 5.70 309,693 21
7,000M General Electric Capital Corp., 8/31/98 5.53 6,934,408 465
5,000M Lubrizol Corporation, 9/10/98 5.50 4,945,764 332
5,800M McGraw-Hill Cos., 7/27/98 5.50 5,776,961 388
6,000M Nalco Chemical Co., 8/25/98 5.55 5,949,125 400
5,000M National Rural Utilities Coop. Fin. Corp., 8/3/98 5.50 4,974,791 334
2,000M National Rural Utilities Coop. Fin. Corp., 8/25/98 5.50 1,983,194 133
500M Northern States Power Co., 2/1/99 5.66 499,183 34
4,000M Paccar Financial Corp., 9/10/98 5.49 3,956,690 266
700M Pacific Gas & Electric Co., 12/15/98 5.70 705,167 47
1,000M PepsiCo, Inc. 11/1/98 5.64 1,005,648 68
6,000M Pitney Bowes Credit, Inc., 7/1/98 6.25 6,000,000 403
5,000M Schering Corp., 7/10/98 5.80 4,992,750 336
1,075M Schering Corp., 7/14/98 5.50 1,072,865 72
2,875M Snap-On Tools Corp., 7/23/98 (Note 4) 5.60 2,865,161 193
600M Southern California Edison Company, 12/15/98 5.70 599,502 40
4,000M The Stanley Works, 9/10/98 5.50 3,956,611 266
3,000M The Stanley Works, 9/22/98 5.52 2,961,820 199
5,000M Texaco Inc., 9/22/98 5.48 4,936,828 332
4,000M USAA Capital Corp., 8/12/98 5.50 3,956,000 266
3,150M Winn-Dixie Stores, Inc., 7/14/98 5.51 3,143,732 211
1,500M Winn-Dixie Stores, Inc., 8/11/98 5.52 1,490,570 100
- ------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $125,068,288) 125,068,288 8,402
- ------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--8.2%
1,550M Fannie Mae, 7/15/98 5.82 1,549,653 104
500M Fannie Mae, 8/12/98 5.51 499,892 34
475M Fannie Mae, 9/4/98 5.72 475,073 32
400M Fannie Mae, 12/10/98 5.65 399,209 27
2,005M Federal Farm Credit Bank, 7/1/98 5.76 2,005,000 135
6,300M Federal Home Loan Bank, 7/8/98 5.52 6,300,500 423
200M Federal Home Loan Bank, 2/2/99 5.78 199,907 13
750M Freddie Mac, 9/14/98 5.61 748,554 50
- ------------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $12,177,788) 12,177,788 818
- ------------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--7.1%
2,000M Bankers Trust Co., 7/14/98 5.82 1,999,984 134
1,800M IBM Credit Corp., 7/6/98 5.73 1,799,984 121
1,000M IBM Credit Corp., 7/28/98 6.06 1,000,298 67
2,900M Key Bank N.A., 3/4/99 5.65 2,900,722 195
2,800M PNC Bank N.A., 9/16/98 5.74 2,799,651 188
- ------------------------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $10,500,639) 10,500,639 705
- ------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $147,746,715)+ 99.3% 147,746,715 9,925
Other Assets, Less Liabilities .7 1,121,334 75
- ------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $148,868,049 $10,000
========================================================================================================================
* The interest rates shown for the corporate notes and U.S. Government agency obligations are the effective rates at
the time of purchase by the Fund. The interest rates shown on floating rate notes are adjusted periodically; the
interest rates shown are the rates that were in effect at June 30, 1998.
+ 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, 1998
- ------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL NOTES AND VARIABLE RATE SECURITIES--101.5%
Alabama--5.2%
$ 900M City of Birmingham Wts., Series A, VR, 3.5% (LOC; Regions Bank) $ 900,000 $ 521
- ------------------------------------------------------------------------------------------------------------------------
California--.9%
150M San Francisco City & County General Obligation Bonds, 3.63%, 6/15/99
(MBIA Insured) 151,211 88
- ------------------------------------------------------------------------------------------------------------------------
District of Columbia--5.8%
1,000M District of Columbia Rev. Bonds (American University), VR, 3.6%
(LOC; National Westminster Bank) 1,000,000 579
- ------------------------------------------------------------------------------------------------------------------------
Florida--4.6%
800M Sunshine State Governmental Financing Commission, CP, 3.65%, 7/13/98
(LOC; Canadian Imperial Bank Corp.) 800,000 463
- ------------------------------------------------------------------------------------------------------------------------
Georgia--2.9%
500M Municipal Electric Authority of Georgia, CP, 3.65%, 9/10/98
(LOC; Morgan Guaranty Trust, Credit Suisse First Boston,
Bayerishe Landesbank) 500,000 290
- ------------------------------------------------------------------------------------------------------------------------
Illinois--5.8%
1,000M Illinois Edl. Facs. Auth. Rev. Bonds (Field Museum Nat. Hist.),
VR, 3.5% (LOC; Northern Trust Company) 1,000,000 579
- ------------------------------------------------------------------------------------------------------------------------
Louisiana--5.8%
1,000M Jefferson Parish Hosp. Svc. Rev. Bonds (Service District No. 2),
VR, 3.6% (FGIC Insured)(SPA; FGIC Securities) 1,000,000 579
- ------------------------------------------------------------------------------------------------------------------------
Maine--2.9%
500M Maine Health & Higher Ed. Fac. Auth. Rev. Bonds (New England Inc.-
Series B), VR, 3.6% (AMBAC Insured)(SPA; First National Bank Chicago) 500,000 290
- ------------------------------------------------------------------------------------------------------------------------
Maryland--4.6%
800M Baltimore County Poll. Control Rev. Bonds (Baltimore Gas & Electric Co.),
CP, 3.65%, 8/6/98 800,000 463
- ------------------------------------------------------------------------------------------------------------------------
Missouri--5.1%
875M Missouri State Env. Impt. & Energy Res. Auth. Poll. Control Rev. Bonds,
(National Rural Utilities Coop. Fin. Corp.) VR, 3.65% 875,000 507
- ------------------------------------------------------------------------------------------------------------------------
New York--9.1%
1,330M Babylon Indl. Dev. Agy. Rev. Bonds (Ogden Martin Sys. Babylon Inc.),
3.90%, 7/1/98 (Prerefunded) 1,369,900 794
194M East Ramapo Central School District General Obligation Bonds, Series A,
4.60%, 5/15/99 (FSA Insured) 195,476 113
- ------------------------------------------------------------------------------------------------------------------------
1,565,376 907
- ------------------------------------------------------------------------------------------------------------------------
Ohio--3.5%
600M Ohio State Water Dev. Auth. Poll. Ctl. Facs. Rev. Bonds (Cleveland Illum.),
CP, 3.7%, 8/11/98 (Liquidity Facility-FGIC) 600,000 348
- ------------------------------------------------------------------------------------------------------------------------
Oregon--4.6%
300M Klamath Falls, Elec. Rev. Bonds (Salt Caves Hydro. Project), VR, 3.8%
(Escrowed to put in U.S. Treasury Securities) 300,000 174
500M Multinomah County School District No. 1J Portland Tax & Revenue
Anticipation Notes, 3.65%, 6/30/99 502,885 291
- ------------------------------------------------------------------------------------------------------------------------
802,885 465
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania--7.4%
380M Lehigh County General Purpose Auth. Rev. Bonds (Good Shepherd
Rehabilitation Hospital), 3.75%, 11/15/98 (AMBAC Insured) 380,349 220
900M York County General Auth. Pooled Fin. Rev. Bonds, VR, 3.6%
(LOC; First Union National Bank) 900,000 522
- ------------------------------------------------------------------------------------------------------------------------
1,280,349 742
- ------------------------------------------------------------------------------------------------------------------------
South Carolina--2.3%
400M South Carolina Ed. Facs. Auth. Rev. Bonds (Presbyterian Coll. Proj.),
VR, 3.6% (LOC; Wachovia Bank of South Carolina) 400,000 232
- ------------------------------------------------------------------------------------------------------------------------
Tennessee--4.6%
800M Clarksville Public Building Authority Bonds, VR, 3.6%
(LOC; NationsBank of Florida) 800,000 463
- ------------------------------------------------------------------------------------------------------------------------
Texas--2.9%
500M State of Texas Tax & Rev. Antic. Nts., 4.75%, 8/31/98 500,724 290
- ------------------------------------------------------------------------------------------------------------------------
Virginia--7.0%
700M Alexandria Indl. Dev. Auth. Rev. Bonds, VR, 3.6%
(LOC; NationsBank) 700,000 405
100M Lynchburg Indl. Dev. Auth. Hosp. Fac. Rev. Bonds (Mid Atlantic/Cap-E),
VR, 3.6% (AMBAC Insured)(SPA; Mellon Bank) 100,000 58
400M Lynchburg Indl. Dev. Auth. Hosp. Fac. Rev. Bonds (Mid Atlantic/Cap-G),
VR, 3.6% (AMBAC Insured)(SPA; Mellon Bank) 400,000 232
- ------------------------------------------------------------------------------------------------------------------------
1,200,000 695
- ------------------------------------------------------------------------------------------------------------------------
Washington--7.2%
750M Port Kalama, Washington Pub. Corp. Rev. Bonds (Conagra Inc. Proj.),
VR, 3.5% (LOC; Morgan Guaranty Trust Co.) 750,000 434
200M Washington State Hsg. Fin. Commn. Rev. Bonds (Emerald Height Proj.),
VR, 4.0% (LOC; U.S. Bank of Washington) 200,000 116
300M Washington State Hsg. Fin. Commn. Rev. Bonds (Panorama City Proj.),
VR, 4.2% (LOC; Key Bank of Washington) 300,000 174
- ------------------------------------------------------------------------------------------------------------------------
1,250,000 724
- ------------------------------------------------------------------------------------------------------------------------
West Virginia--1.2%
200M West Virginia Hosp. Fin. Auth. Hosp. Rev. Bonds (St. Joseph's Hospital
Proj.), VR, 3.6% (LOC; Bank One of West Virginia) 200,000 116
- ------------------------------------------------------------------------------------------------------------------------
Wisconsin--4.6%
300M Racine Promissory Notes (Unlimited General Obligation) Series B,
3.5% 12/1/98 300,609 174
500M Racine Unified School District Tax & Rev. Antic. Notes, 4.25%, 8/24/98 500,285 290
- ------------------------------------------------------------------------------------------------------------------------
800,894 464
- ------------------------------------------------------------------------------------------------------------------------
Wyoming--3.5%
600M Kemmerer Pollution Control Rev. Bonds (Exxon Corp.) VR, 3.7% 600,000 348
- ------------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $17,526,439)+ 101.5% 17,526,439 10,153
Excess of Liabilities Over Other Assets (1.5) (264,049) (153)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $17,262,390 $10,000
========================================================================================================================
The interest rates shown for municipal notes and bonds are the effective rates at the time of purchase by the Fund.
Interest rates on variable rate securities are adjusted periodically; the rates shown are the rates that were in
effect at June 30, 1998. 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:
CP Municipal Commercial Paper
LOC Letter of Credit
SPA Security Purchase Agreement
VR Variable Rate Securities
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
June 30, 1998
- --------------------------------------------------------------------------------------------------------------------
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 $147,746,715 $17,526,439
============= =============
At value $147,746,715 $17,526,439
Cash 1,561,095 241,270
Interest receivable 500,999 116,564
Investment securities sold -- 158,600
Other assets 24,200 4,891
------------- -------------
Total Assets 149,833,009 18,047,764
------------- -------------
Liabilities
Payables:
Investment securities purchased -- 698,758
Dividend disbursing agent 601,883 40,392
Capital shares redeemed 220,346 30,749
Accrued expenses 80,460 8,366
Accrued advisory fee 62,271 7,109
Total Liabilities 964,960 785,374
------------- -------------
Net Assets $148,868,049 $17,262,390
============= =============
Capital shares outstanding (Note 2):
Class A 148,377,103 17,261,388
Class B 490,946 1,002
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, 1998
- ------------------------------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Interest income $4,045,353 $314,752
---------------- ----------------
Expenses (Notes 1 and 3):
Advisory fee 357,322 43,694
Shareholder servicing costs 392,560 39,892
Custodian fees 37,591 5,313
Professional fees 22,793 8,925
Reports and notices to shareholders 19,341 2,481
Other expenses 6,733 958
---------------- ----------------
Total expenses 836,340 101,263
Less: Expenses waived or assumed (267,675) (31,760)
Custodian fees paid indirectly -- (147)
---------------- ----------------
Net expenses 568,665 69,356
---------------- ----------------
Net investment income 3,476,688 245,396
Net realized loss on investments (44) --
---------------- ----------------
Net Increase in Net Assets Resulting from Operations $3,476,644 $245,396
================ ================
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, 1998 December 31, 1997 June 30, 1998 December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 3,476,688 $ 6,518,603 $ 245,396 $ 623,954
Net realized loss on investments (44) (395) -- --
-------------- -------------- -------------- --------------
Net increase in net assets resulting
from operations and declared as
distributions to shareholders
(Note 1C) $ 3,476,644 $ 6,518,208 $ 245,396 $ 623,954
============== ============== ============== ==============
Capital Share Transactions (Note 2)
Class A:
Proceeds from shares sold $122,718,014 $233,709,809 $ 9,944,401 $28,663,885
Reinvestment of distributions 2,814,618 6,358,311 203,027 613,112
Cost of shares redeemed (116,717,958) (234,306,443) (11,566,280) (33,484,370)
-------------- -------------- -------------- --------------
8,814,674 5,761,677 (1,418,852) (4,207,373)
-------------- -------------- -------------- --------------
Class B:
Proceeds from shares sold 430,767 743,487 5,208 8,935
Reinvestment of distributions 4,880 8,777 43 952
Cost of shares redeemed (212,078) (591,831) (17,461) (76,506)
-------------- -------------- -------------- --------------
223,569 160,433 (12,210) (66,619)
-------------- -------------- -------------- --------------
Total increase (decrease) in net assets 9,038,243 5,922,110 (1,431,062) (4,273,992)
Net Assets
Beginning of period 139,829,806 133,907,696 18,693,452 22,967,444
-------------- -------------- -------------- --------------
End of period $148,868,049 $139,829,806 $17,262,390 $18,693,452
============== ============== ============== ==============
See notes to 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
that is exempt from federal income tax and is not an item of tax
preference for purposes of the federal alternative minimum tax,
consistent with the preservation of capital and maintenance of
liquidity.
A. Security Valuation--Each Fund values its portfolio securities in
accordance with the amortized cost method of valuation under Rule 2a-7
under the 1940 Act. Amortized cost is an approximation of market value
of an instrument, whereby the difference between its acquisition cost
and value at maturity is amortized on a straight-line basis over the
remaining life of the instrument. The effect of changes in the market
value of a security as a result of fluctuating interest rates is not
taken into account and thus the amortized cost method of valuation may
result in the value of a security being higher or lower than its actual
market value.
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 plus or minus all realized short-term gains and 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. Use of Estimates--The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the recorded
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.
E. 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. For the six months ended June 30, 1998, the
custodian of Tax-Exempt Money Market Fund has provided credits in the
amount of $147 against custodian charges based on the uninvested cash
balances of the Fund.
2. Capital Stock--At June 30, 1998, paid-in capital amounted to
$148,868,049 for the Cash Management Fund and $17,262,390 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. Each Fund
offers two classes of shares, Class A and B. Both classes are sold
without an initial sales charge. However, Class B shares, which may only
be acquired through an exchange of Class B shares from another First
Investors eligible fund or through the reinvestment of dividends on
Class B shares, are generally subject to a contingent deferred sales
charge at the rate of 4% in the first year and declining to 0% after the
sixth year, which is payable to FIC as underwriter of the Funds.
3. Advisory Fee and Other Transactions With Affiliates--Certain officers
and directors of the Funds are officers and directors of the investment
adviser, First Investors Management Company, Inc. ("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. Directors 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 June 30, 1998, total
directors fees accrued by the Funds amounted to $4,500 for the Cash
Management Fund and $150 for the Tax-Exempt Money Market Fund.
The Investment Advisory Agreements provide as compensation to FIMCO an
annual fee, payable monthly, at the rate of .50% of each Fund's average
daily net assets. For the six months ended June 30, 1998, the investment
adviser assumed expenses of the Cash Management Fund and the Tax-Exempt
Money Market Fund of $173,345 and $21,555, respectively.
For the six months ended June 30, 1998, shareholder servicing costs of
the Cash Management Fund included transfer agent fees accrued to ADM of
$281,794 (of which $93,931 was waived) and $10,248 in custodian fees
paid to FFS. The Tax-Exempt Money Market Fund's shareholder servicing
costs included transfer agent fees accrued to ADM in the amount of
$30,594 (of which $10,198 was waived).
For the six months ended June 30, 1998, FIC received contingent deferred
sales charges from the redemption of Class B shares of the Cash
Management Fund and the Tax-Exempt Money Market Fund amounting to $2,668
and $125, respectively. In addition, Class B shares are subject to
distribution plan fees which are payable monthly to FIC at the annual
rate of up to 1% of the Class B shares' average daily net assets. For
the six months ended June 30, 1998, FIC received a total of $1,218 in
distribution plan fees from the two Funds, after waiving $406 (or 25% of
the fee). Such amounts are included in other expenses on the Statement
of Operations.
4. Rule 144A Securities--Under Rule 144A, certain restricted securities
are exempt from the registration requirements of the Securities Act of
1933 and may only be resold to qualified institutional investors. At
June 30, 1998, the Cash Management Fund held one restricted security
with a value of $2,865,161 representing approximately 1.9% of the Fund's
net assets. This security is valued as set forth in Note 1A.
<TABLE>
<CAPTION>
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.
- ------------------------------------------------------------------------------------------------------------------------------
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) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
- ------------------------------------------
CLASS A
- -------
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
1996 1.00 .048 .048 4.89 133,801 .70 4.78 1.19 4.29
1997 1.00 .049 .049 4.98 139,562 .77 4.87 1.19 4.45
1/1/98-6/30/98 1.00 .024 .024 2.46 148,377 .79(a) 4.87(a) 1.17(a) 4.49(a)
CLASS B
- -------
1995* 1.00 .044 .044 4.46 56 1.45(a) 4.54(a) 1.93(a) 4.06(a)
1996 1.00 .040 .040 4.11 107 1.45 4.03 1.94 3.54
1997 1.00 .041 .041 4.20 267 1.52 4.12 1.94 3.70
1/1/98-6/30/98 1.00 .021 .021 2.08 491 1.54(a) 4.12(a) 1.92(a) 3.74(a)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
- --------------------------------------------------
CLASS A
- -------
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
1996 1.00 .028 .028 2.85 22,888 .71 2.81 1.08 2.44
1997 1.00 .030 .030 3.00 18,680 .75 2.95 1.12 2.58
1/1/98-6/30/98 1.00 .014 .014 1.41 17,261 .80(a) 2.81(a) 1.16(a) 2.45(a)
CLASS B
- -------
1995* 1.00 .024 .024 2.40 .01 1.46(a) 2.43(a) 1.81(a) 2.09(a)
1996 1.00 .020 .020 2.04 80 1.46 2.06 1.83 1.69
1997 1.00 .022 .022 2.20 13 1.50 2.20 1.87 1.83
1/1/98-6/30/98 1.00 .008 .008 .79 1 1.55(a) 2.06(a) 1.91(a) 1.70(a)
+ 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 Auditors' Report
To the Shareholders and Boards 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, 1998, 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, 1998 and the year ended December 31, 1997 and
financial highlights for 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 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,
1998, 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, 1998, and
the results of their operations, changes in their net assets and
financial highlights for the periods indicated thereon, in conformity
with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
July 31, 1998
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Directors
- ------------
James J. Coy (Emeritus)
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
Nancy S. Schaenen
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- ------------
Glenn O. Head
President
Michael J. O'Keefe
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
Eight Penn Center Plaza
Philadelphia, PA 19103
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.
