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CASH MANAGEMENT
TAX-EXEMPT MONEY MARKET
MONEY MARKET FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1999
Bond Market Overview
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
We are pleased to present this Bond Market Overview for the semi-annual
report for the First Investors Money Market Funds for the six month period
ended June 30, 1999. The period under review was characterized by a strong
U.S. economy, rising interest rates and a climbing stock market.
The U.S. economy, now in its ninth year of expansion, continued its
remarkable performance. Economic growth in the first quarter of 1999 was
strong, with the Gross Domestic Product (GDP) growing by 4.3% on an
annualized basis. The momentum continued into the second quarter, with
growth of 2.3% on an annualized basis. Although the economy continued to
expand, inflation stayed under control. As of June 30, the rate of
inflation for the previous 12 months was 2% as measured by the Consumer
Price Index (CPI). The unemployment rate remained near its lowest level in
30 years at 4.3%. Rising personal income, high consumer confidence, wealth
from stock market gains and home price appreciation combined to power
economic growth.
During the first half of 1999, interest rates moved sharply higher, causing
bond prices to decline. The 30-year U.S. Treasury rate rose from 5.10% on
December 31 to 5.96% on June 30. The bellwether rate reached a high of
6.16% in June. This rising interest rate environment was driven by a number
of factors, including the improvement of economies around the globe. With
foreign economies and markets recovering from last year's financial markets
crisis, the "flight to safety" which had benefited U.S. Treasuries
reversed, as investors returned to riskier asset classes.
As well, the Federal Reserve became concerned that the continued strength
of the U.S. economy, particularly when combined with tight labor markets,
would lead to inflation. In an effort to preempt inflation, the Fed raised
the Federal Funds rate 25 basis points (.25%) to 5% on June 30. This
tightening of monetary policy was a partial unwinding of last fall's 75
basis point (.75%) decrease in the Federal Funds rate. Although the Fed has
currently adopted a neutral stance toward interest rates, it remains alert
to developments that may require further rate increases.
Among bond sectors, the high yield bond market provided the highest total
returns over the past six months, as companies benefited from the strong
economy and healthy earnings. The mortgage-backed bond market was the
second best performing bond sector as higher rates substantially reduced
prepayment risk. Treasury securities and investment grade corporate bonds
had the lowest total returns among bond sectors, in large part due to heavy
issuance of U.S. agency and corporate debt. Lastly, in June, long-term
municipal bond yields rose to their highest level in over 18 months.
Going forward, we anticipate that the bond market will remain stable, at
best, for the next three to six months. The domestic economy remains
strong, although inflation is not yet apparent. The Fed should remain
vigilant in its mission to keep inflation under control. To this end, one
or two additional interest rate hikes over the next six months are
possible. The bond markets can potentially perform better in the next six
to nine months if the economy slows, inflation remains low and the Fed is
satisfied with the economic outlook.
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 30, 1999
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
June 30, 1999
- ------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES--91.2%
$5,000M Air Products & Chemicals, Inc., 7/1/99 5.70% $5,000,000 $313
550M Alabama Power Co., 8/1/99 5.03 550,337 34
5,000M Alabama Power Co., 8/1/99 5.67 5,003,063 313
4,750M Anheuser-Busch Cos., Inc., 12/1/99 5.00 4,821,442 302
300M Anheuser-Busch Cos., Inc., 12/1/99 5.10 304,512 19
539M Anheuser-Busch Cos., Inc., 12/1/99 5.25 547,107 34
330M Anheuser-Busch Cos., Inc., 12/1/99 5.27 334,963 21
3,500M Archer-Daniels-Midland Co., 7/15/99 4.83 3,493,402 218
1,300M Associates First Capital Corp., 4/6/00 5.56 1,311,803 82
3,500M Bell Atlantic Network Funding Corp., 7/21/99 5.03 3,490,209 218
4,220M Brown-Forman Corporation, 8/3/99 4.90 4,200,986 263
7,000M Campbell Soup Company, 7/22/99 5.17 6,978,886 436
2,550M Clorox Company, 7/8/99 4.80 2,547,589 159
5,000M Clorox Company, 7/8/99 4.81 4,995,269 312
450M Colgate-Palmolive Co., 4/17/00 5.13 451,352 28
750M Duke Power Co., 11/1/99 5.01 756,979 47
2,000M Duke Power Co., 11/1/99 5.10 2,018,610 126
2,075M Du Pont (E.I.) de Nemours & Co., 4/15/00 5.19 2,136,547 134
1,550M Eastman Kodak Company, 7/1/99 4.96 1,550,000 97
5,000M Eastman Kodak Company, 7/8/99 5.10 4,995,037 312
2,000M Florida Power Corp., 7/8/99 4.96 1,998,068 125
4,200M Florida Power Corp., 7/13/99 4.98 4,193,018 262
2,620M Ford Holdings, Inc., 3/1/00 5.52 2,681,864 168
3,000M Ford Motor Credit Corp., 7/2/99 5.42 2,999,548 188
1,000M Ford Motor Credit Corp., 7/22/99 5.15 1,002,007 63
1,000M Ford Motor Credit Corp., 9/15/99 4.95 1,002,559 63
1,900M General Electric Capital Corp., 7/22/99 5.00 1,894,447 118
250M General Electric Capital Corp., 8/20/99 5.76 250,177 16
6,000M General Mills, Inc., 7/20/99 5.15 5,983,685 374
500M General Mills, Inc., 12/15/99 5.25 508,037 32
2,000M Hartford Steam Boiler Insp. & Ins. Co., 7/14/99 4.82 1,996,482 125
3,000M Heinz (H.J.) Company, 7/21/99 5.30 2,991,165 187
2,575M Heinz (H.J.) Company, 8/4/99 4.90 2,563,044 160
420M Heinz (H.J.) Company, 10/15/99 5.16 421,505 26
1,050M Heinz (H.J.) Company, 10/15/99 5.39 1,053,764 66
500M IBM Credit Corp., 10/20/99 5.50 500,556 31
3,000M Illinois Tool Works, Inc., 7/29/99 4.85 2,988,617 187
1,100M Michigan Bell Telephone Co., 9/15/99 5.02 1,101,612 69
420M Michigan Bell Telephone Co., 9/15/99 5.20 420,616 26
5,000M Nalco Chemical Co., 7/26/99 4.78 4,983,258 311
2,300M Nalco Chemical Co., 8/5/99 4.86 2,289,079 143
7,000M National Rural Utilities Coop. Fin. Corp., 8/19/99 5.18 6,950,639 434
4,000M New York Times Co., 7/15/99 4.87 3,992,396 250
1,500M Paccar Financial Corp., 7/15/99 5.73 1,500,280 94
3,500M Paccar Financial Corp., 7/22/99 4.78 3,490,155 218
1,100M PepsiCo, Inc., 9/1/99 5.00 1,101,957 69
250M PepsiCo, Inc., 9/1/99 5.03 250,445 16
125M PepsiCo, Inc., 9/1/99 5.05 125,222 8
1,000M PepsiCo, Inc., 9/1/99 5.22 1,001,779 63
8,000M Pfizer, Inc., 7/19/99 4.96 7,980,124 499
3,350M Pitney Bowes Credit Corp., 7/15/99 4.94 3,351,774 210
635M Pitney Bowes Credit Corp., 7/15/99 5.70 635,336 40
2,500M Proctor & Gamble Co., 7/12/99 4.90 2,496,247 156
4,000M Schering Corporation, 7/30/99 4.86 3,984,276 249
1,000M Shell Oil Company, 7/1/99 5.00 1,000,000 63
1,460M Texaco Capital, Inc., 7/15/99 4.89 1,460,820 91
500M Texaco Capital, Inc., 12/15/99 5.10 505,848 32
740M Texaco Capital, Inc., 7/15/99 5.40 740,415 46
2,500M Texaco Capital, Inc., 7/15/99 5.57 2,501,404 156
1,515M Wal Mart Stores, Inc., 10/1/99 5.14 1,518,072 95
2,000M Xerox Corp., 7/1/99 5.80 2,000,000 125
- ------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $145,898,390) 145,898,390 9,122
- ------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--5.6%
500M Federal Home Loan Bank, 7/26/99 4.75 500,741 31
2,100M Federal Home Loan Bank, 10/28/99 5.07 2,099,634 131
3,000M Federal Home Loan Bank, 10/29/99 5.01 2,998,746 187
2,000M Federal Home Loan Bank, 4/20/00 5.07 1,998,038 125
860M Freddie Mac, 7/21/99 4.87 861,042 54
500M Fannie Mae, 8/3/99 4.85 500,226 31
- ------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $8,958,427) 8,958,427 559
- ------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--3.8%
3,000M Merrill Lynch & Co. Inc., 9/23/99 5.06 3,000,000 188
3,000M Merrill Lynch & Co. Inc., 10/21/99 5.00 3,000,000 188
- ------------------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $6,000,000) 6,000,000 376
- ------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $160,856,817)+ 100.6% 160,856,817 10,057
Excess of Liabilities Over Other Assets (.6) (910,855) (57)
- ------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $159,945,962 $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, 1999.
+ 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, 1999
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL NOTES AND VARIABLE RATE SECURITIES--101.2%
Alabama--9.6%
$900M City of Birmingham Wts., Series A, VR, 3.65%
(LOC; First Alabama Bank) $900,000 $523
250M Jefferson County Sanitary Sewer Construction Wts.,
2.97%, 9/1/99 (Escrowed to maturity; U.S. Govt.
securities) 251,382 146
500M University of Alabama Rev. Bonds, 3.60%, 6/1/00
(AMBAC Insured) 504,016 293
- -----------------------------------------------------------------------------------------------------------------
1,655,398 962
- -----------------------------------------------------------------------------------------------------------------
California--1.2%
200M California Pollution Ctl. Fing. Auth. Rev. Bonds
(Southern California Edison), VR, 3.35% 200,000 116
- -----------------------------------------------------------------------------------------------------------------
Florida--7.8%
200M Hillsborough County School District Capital
Improvement Rev. Bonds, 3.35%, 8/1/99
(MBIA Insured) 200,038 116
500M Miami-Dade County Special Assessment Rev. Bonds,
3.65%, 7/1/99 (MBIA Insured) 500,000 290
650M Palm Beach County School District General Obligation
Bonds, 3.00%, 8/1/99 (AMBAC Insured) 651,156 378
- -----------------------------------------------------------------------------------------------------------------
1,351,194 784
- -----------------------------------------------------------------------------------------------------------------
Georgia--5.2%
400M Whitfield County Residential Care Fac,
(Royal Oaks Sr. Living Community), VR, 3.80%
(LOC; First Union National Bank) 400,000 233
500M Monroe County Dev. Auth. Pollution Ctl. Rev. Bonds
(Georgia Power Co.), VR, 3.50% 500,000 290
- -----------------------------------------------------------------------------------------------------------------
900,000 523
- -----------------------------------------------------------------------------------------------------------------
Hawaii--1.9%
335M Hawaii State General Obligation Bonds, 3.50%, 10/1/99
(Escrowed to maturity; State & Local Series) 336,247 195
- -----------------------------------------------------------------------------------------------------------------
Illinois--5.8%
1,000M Illinois Edl. Facs. Auth. Rev. Bonds
(Field Museum Nat. Hist.), VR, 3.65%
(LOC; Northern Trust Company) 1,000,000 581
- -----------------------------------------------------------------------------------------------------------------
Louisiana--9.6%
1,000M Jefferson Parish Hosp. Svc. Rev. Bonds (Service
District No. 2), VR, 3.50% (FGIC Insured)
(SPA; FGIC Securities) 1,000,000 581
455M Jefferson Sales Tax District Special Sales Tax Rev.
Bonds, 3.60%, (Prerefunded 7/1/99; U.S. Govt.
securities) 455,000 264
200M Jefferson Sales Tax District Special Sales Tax Rev.
Bonds, 3.70%, (Prerefunded 7/1/99; U.S. Govt.
securities) 200,000 116
- -----------------------------------------------------------------------------------------------------------------
1,655,000 961
- -----------------------------------------------------------------------------------------------------------------
Maryland--4.7%
800M Baltimore County Poll. Control Rev. Bonds
(Baltimore Gas & Electric Co.), CP, 3.00%, 7/28/99 800,000 465
- -----------------------------------------------------------------------------------------------------------------
Massachusetts--1.5%
250M Winchendon General Obligation Bonds, 3.00%,
10/15/99 (FGIC Insured) 251,926 146
- -----------------------------------------------------------------------------------------------------------------
Missouri-4.3%
745M Missouri St. Env. Impt. & Energy Res. Auth. Poll.
Control Rev. Bonds (National Rural Uties Coop.)
Fin. Corp.), VR, 3.55% 745,000 433
- -----------------------------------------------------------------------------------------------------------------
Nebraska--5.2%
900M Norfolk Indl. Dev. Rev. Bonds (Supervalu Inc. Proj.),
VR, 3.70% (LOC; Wachovia Bank of Georgia) 900,000 523
- -----------------------------------------------------------------------------------------------------------------
North Carolina--1.7%
300M Wake County Indl. Facs. & Pollution Ctl. Fing. Auth.,
(Carolina Power & Light), VR, 3.60% (LOC; Bank
of New York) 300,000 174
- -----------------------------------------------------------------------------------------------------------------
Pennsylvania--1.2%
200M York County General Auth. Pooled Fin. Rev. Bonds,
VR, 3.80% (LOC; First Union National Bank) 200,000 116
- -----------------------------------------------------------------------------------------------------------------
Rhode Island--2.9%
500M Rhode Island Health & Edl. Bldg. Corp. Rev. Bonds,
3.72%, 8/15/99 (FGIC Insured) (Escrowed to maturity;
U.S. Govt. securities) 501,402 291
- -----------------------------------------------------------------------------------------------------------------
Tennessee--4.1%
700M Clarksville Public Building Authority Rev. Bonds,
VR, 3.80% (LOC; NationsBank of Florida) 700,000 407
- -----------------------------------------------------------------------------------------------------------------
Texas--12.5%
800M Metropolitan Higher Ed. Auth. Rev. Bonds,
(Univ. of Dallas Proj.), VR, 3.55% (LOC;
Chase Bank of Texas N.A.) 800,000 465
450M North Texas State University Rev. Bonds, 3.75%,
4/15/00, (FSA Insured) 451,629 262
400M Stephen F. Austin State University, Texas Univ. Rev.
Bond, 3.00%, 10/15/99 (MBIA Insured) 403,709 235
500M State of Texas General Obligation Bonds, 3.35%,
10/1/99 502,738 292
- -----------------------------------------------------------------------------------------------------------------
2,158,076 1,254
- -----------------------------------------------------------------------------------------------------------------
Virginia--4.7%
700M Alexandria Indl. Dev. Auth. Rev. Bonds, Pooled Loan
Program, VR, 3.80% (LOC; NationsBank) 700,000 407
100M Chesapeake Indl. Dev. Auth. Rev. Bonds, (Chesapeake
Court House), 4.00%, 6/1/00 (MBIA Insured) 100,442 58
- -----------------------------------------------------------------------------------------------------------------
800,442 465
- -----------------------------------------------------------------------------------------------------------------
Washington--16.1%
400M King County Director's Association, CP, 3.20%,
9/15/99 (LOC; Key Bank) 397,284 231
250M King County School District No. 402, General
Obligation Bonds, 3.20%, 12/1/99 (AMBAC Insured) 250,821 146
650M Port Kalama, Washington Pub. Corp. Rev. Bonds
(Conagra Inc. Proj.), VR, 3.50% (LOC; Morgan
Guaranty Trust Co.) 650,000 377
475M Washington State Hsg. Fin. Commn. Rev. Bonds
(Pacific First Federal), VR, 3.65% (LOC; Key Bank
of Washington) 475,000 276
800M Washington State Hsg. Fin. Commn. Rev. Bonds
(Mill Plain Crossing Proj.), VR, 3.55; (LOC; Harris
Trust & Savings Bank) 800,000 465
195M Yakima Water & Sewer Rev. Bonds, 3.60%, 9/1/99
(FSA Insured) 195,127 113
- -----------------------------------------------------------------------------------------------------------------
2,768,232 1,608
- -----------------------------------------------------------------------------------------------------------------
West Virginia--1.2%
200M West Virginia Hosp. Fin. Auth. Hosp. Rev. Bonds
(St. Joseph's Hospital Proj.), VR, 3.57%
(LOC; Bank One of West Virginia) 200,000 116
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $17,422,917)+ 101.2% 17,422,917 10,120
Excess of Liabilities Over Other Assets (1.2) (207,419) (120)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $17,215,498 $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, 1999. 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, 1999
- --------------------------------------------------------------------------------------------------------------------------
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 $160,856,817 $17,422,917
============ ===========
At value $160,856,817 $17,422,917
Cash (overdraft) (1,276,695) 247,713
Interest receivable 1,127,303 141,601
Other assets 24,200 8,030
------------ -----------
Total Assets 160,731,625 17,820,261
------------ -----------
Liabilities
Payables:
Dividend disbursing agent 557,584 36,713
Investment securities purchased -- 553,987
Capital shares redeemed 136,820 5,007
Accrued expenses 63,211 9,056
Accrued advisory fee 28,048 --
------------ -----------
Total Liabilities 785,663 604,763
------------ -----------
Net Assets $159,945,962 $17,215,498
============ ===========
Capital shares outstanding (Note 2):
Class A 158,283,107 17,108,504
Class B 1,662,855 106,994
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, 1999
- --------------------------------------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Interest income $4,038,528 $281,124
------------ -----------
Expenses (Notes 1 and 3):
Advisory fee 402,165 43,458
Shareholder servicing costs 391,037 40,229
Custodian fees 33,106 5,825
Reports and notices to shareholders 22,530 1,927
Professional fees 6,709 8,868
Other expenses 17,177 1,623
------------ -----------
Total expenses 872,724 101,930
Less: Expenses assumed (229,648) (32,861)
------------ -----------
Net expenses 643,076 69,069
------------ -----------
Net investment income 3,395,452 212,055
Net realized gain on investments -- --
------------ -----------
Net Increase in Net Assets Resulting
from Operations $3,395,452 $212,055
============ ===========
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 Year Six Months Year
Ended Ended Ended Ended
6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $3,395,452 $7,183,007 $212,055 $479,491
Net realized gain on investments -- 962 -- --
------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations and declared as
distributions to shareholders
(Note 1C) $3,395,452 $7,183,969 $212,055 $479,491
============ ============ =========== ===========
Capital Share Transactions
(Note 2)
Class A:
Proceeds from shares sold $139,006,323 $275,726,040 $14,089,662 $20,996,053
Reinvestment of distributions 2,761,764 7,004,723 173,904 473,346
Cost of shares redeemed (143,955,082) (261,823,090) (13,465,242) (23,839,459)
------------ ------------ ----------- -----------
(2,186,995) 20,907,673 798,324 (2,370,060)
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 1,530,344 2,414,995 105,974 5,208
Reinvestment of distributions 19,887 30,219 7 54
Cost of shares redeemed (1,381,992) (1,217,975) -- (17,461)
------------ ------------ ----------- -----------
168,239 1,227,239 105,981 (12,199)
------------ ------------ ----------- -----------
Total increase (decrease) in
net assets (2,018,756) 22,134,912 904,305 (2,382,259)
Net Assets
Beginning of period 161,964,718 139,829,806 16,311,193 18,693,452
------------ ------------ ----------- -----------
End of period $159,945,962 $161,964,718 $17,215,498 $16,311,193
============ ============ =========== ===========
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, including the 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
regulated 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.
2. Capital Stock--At June 30, 1999, paid-in capital amounted to $159,945,962
for the Cash Management Fund and $17,215,498 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% over a six-year period, which is payable to
First Investors Corporation ("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, 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, 1999,
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, 1999, the investment
adviser assumed expenses of the Cash Management Fund and the Tax-Exempt
Money Market Fund of $229,648 and $32,861, respectively.
For the six months ended June 30, 1999, shareholder servicing costs of the
Cash Management Fund included transfer agent fees accrued to ADM of
$281,230 and $10,710 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 $29,096.
For the six months ended June 30, 1999, 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 $14,157. There were
no redemptions of Class B shares of the Tax-Exempt Money Market Fund during
the period. 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,
1999, FIC received a total of $5,518 in distribution plan fees from the two
Funds, after waiving $1,839 (or 25% of the fee). Such amounts are included
in other expenses on the Statement of Operations.
<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 Before Expenses Waived
Average Net Assets+ or Assumed (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
- -------
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
1998 1.00 .048 .048 4.92 160,470 .80 5.00 1.14 4.66
1/1/99-6/30/99 1.00 .021 .021 2.14 158,283 .80(a) 4.23(a) 1.08(a) 3.95(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
1998 1.00 .041 .041 4.14 1,495 1.55 4.25 1.89 3.91
1/1/99-6/30/99 1.00 .018 .018 1.76 1,663 1.55(a) 3.48(a) 1.83(a) 3.20(a)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
- --------------------------------------------------
CLASS A
- -------
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 .70 3.20 1.06 2.84
1996 1.00 .028 .028 2.85 22,888 .70 2.81 1.08 2.43
1997 1.00 .030 .030 3.00 18,680 .75 2.95 1.12 2.58
1998 1.00 .027 .027 2.77 16,310 .80 2.73 1.19 2.34
1/1/99-6/30/99 1.00 .012 .012 1.23 17,109 .80(a) 2.44(a) 1.17(a) 2.07(a)
CLASS B
- -------
1995* 1.00 .024 .024 2.40 .01 1.45(a) 2.45(a) 1.81(a) 2.09(a)
1996 1.00 .020 .020 2.04 80 1.45 2.06 1.83 1.68
1997 1.00 .022 .022 2.20 13 1.50 2.20 1.87 1.83
1998 1.00 .018 .018 1.78 1 1.55 1.98 1.94 1.59
1/1/99-6/30/99 1.00 .008 .008 .84 107 1.55(a) 1.69(a) 1.92(a) 1.32(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, 1999, 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, 1999 and the year ended December 31, 1998 and financial highlights for
each of the periods indicated thereon. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with 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, 1999, 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, 1999, 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 30, 1999
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Directors/Trustees
- ------------------------------------------------------
James J. Coy (Emeritus)
Glenn O. Head
Kathryn S. Head
Larry R. Lavoie
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.
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
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 the Funds' 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. The Funds will ensure that separate
reports are sent to any shareholder who subsequently changes his or her
mailing address.
This report is authorized for distribution only to existing shareholders,
and, if given to prospective shareholders, must be accompanied or preceded
by the Funds' prospectus.
