[First Investors Logo]
TAXABLE BOND & MONEY MARKET FUNDS
CASH MANAGEMENT
GOVERNMENT
INVESTMENT GRADE
FUND FOR INCOME
SEMI-ANNUAL REPORT
March 31, 2000
Bond Market Overview
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS GOVERNMENT FUND, INC.
FIRST INVESTORS INVESTMENT GRADE FUND
FIRST INVESTORS FUND FOR INCOME, INC.
Dear Investor:
We are pleased to present the semi-annual reports for the First
Investors taxable bond and money market funds for the six month period
ended March 31, 2000.
The past six months have been characterized by two different bond
markets. From October through mid-January, bonds continued to be plagued
by the bear market that had existed throughout 1999. However, the market
experienced a sharp turnaround in mid-January, and bull market
conditions prevailed for the rest of the reporting period. The bond
market rally was surprising in light of the strong U.S. economy and the
Federal Reserve Board's ("the Fed") attempt to slow the economy by
systematically raising interest rates. For the most part, the rally was
confined to the Treasury market, as yields in other sectors (corporate,
mortgage-backed, high yield) remained high, reflecting the strength of
the economy and the Fed's actions.
The benchmark 30-year U.S. Treasury bond yield rose from 6.05% on
September 30, 1999 to 6.75% on January 20, 2000, its highest level since
1997. This sharp rise in interest rates drove down bond prices. The
rising interest rate environment was triggered primarily by the
surprising strength of the U.S. economy. Gross domestic product (GDP)
rose 7.3% in the fourth quarter of 1999, the strongest growth rate since
1984. The unemployment rate dropped to just 4% in January, a 30-year
low. Consumer confidence reached record highs, with climbing personal
income and asset growth due to the strong housing and stock markets. The
Fed became increasingly concerned during 1999 that the accelerated rate
of economic growth would lead to inflation. To offset this possibility,
the Fed raised the federal funds rate in June, August, and November to
slow the economy.
The bond market (primarily the Treasury sector) rebounded dramatically
in mid-January. The 30-year U.S. Treasury bond yield rallied from 6.75%
on January 20 to 5.83% on March 31. The steady decline of interest rates
was largely due to the federal budget surplus, which may be as large as
$200 billion this year. This surplus has been produced by the roaring
economy of recent years, and has allowed the U.S. government to decrease
the issuance of new Treasury securities and to pay down its debt. In
March, the Treasury Department started buying back outstanding debt in
the open market.
The Fed continued its vigilant watch over inflationary pressures during
the first quarter of 2000, raising interest rates in February and March
due to the economy's continued strength. (First quarter 2000 GDP growth
is estimated to be very strong, at 5%-6%.) However, despite the
economy's strength and the length of the current economic expansion,
inflation remained remarkably low. Excluding food and energy, consumer
Bond Market Overview (continued)
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS GOVERNMENT FUND, INC.
FIRST INVESTORS INVESTMENT GRADE FUND
FIRST INVESTORS FUND FOR INCOME, INC.
prices were up only 2.4% for the last 12 months, compared to a 2.1% pace
from a year ago. Low inflation encouraged investors to buy bonds, as
they viewed the Fed's actions as a preemptive strike against inflation.
An interesting and rare phenomenon occurred as the market rallied in
January -- the yield curve inverted. Normally, interest rates on bonds
with longer maturities are higher than interest rates on bonds with
shorter maturities due to the former's greater interest rate risk.
However, in recent months, the interest rates on longer maturity bonds
have fallen below those of shorter maturities, as investors have flocked
to "long bonds" due to the scarcity of high-quality bonds.
Performance by sector within the bond market varied substantially during
the reporting period. The Treasury market was the best performing sector
over the past six months. This sector's performance was aided by a
perceived scarcity of Treasury securities and the fact that they have no
credit risk. While the long-term Treasury market rallied, interest rates
in other bond markets remained at or near bear market levels. The
investment grade corporate bond market had mixed performance. As
Treasury yields fell during the first quarter, corporate yields remained
high, substantially widening the yield spread between corporate and
Treasury bonds. Corporate bonds were held back by heavy supply in the
first quarter of 2000, as well as "event risk" -- concern that companies
with lagging stocks would take actions to boost share prices that would
hurt bondholders. Mortgage-backed bonds also posted mixed performance
for the reporting period. Despite low supply and a positive prepayment
environment, mortgage-backed securities lagged the Treasury market due
to the inverted yield curve (rising short-term rates hurt
mortgage-backed securities' prices, as do falling long-term rates). The
yield spread between mortgage-backed bonds and Treasuries ended the
reporting period at its widest level since October 1998. The high yield
corporate bond market suffered through weak performance. Despite the
strong economy, high yield bond prices fell due to rising default rates,
declining demand because of competition from equity market returns, and
event risk. The money markets benefited from higher yields during the
reporting period, as the Fed raised interest rates three times for a
total of 75 basis points (.75%). Money market yields increased
commensurately.
The economy ended the reporting period with considerable momentum. Going
forward, we expect that the Fed will continue to raise short-term rates
in an effort to cool the expansion. It is difficult to envision that
long-term interest rates will fall further until the economy slows. In
this challenging environment, sector and security selection will be
particularly important.
Because it is impossible to predict the future direction of the markets,
even over the short term, there are certain basic investment principles
that we encourage our shareholders to follow to reduce exposure to
risk.* First, we encourage shareholders to take a long-term view, and to
avoid trying to time the market. Attempting to time the market is
extremely difficult, even for professional investors. Second, we
encourage our shareholders to diversify their portfolios among stock
funds, bond funds and money market funds. Third, we encourage our
shareholders to follow a regular investment plan, investing a specific
amount of money at defined intervals. This strategy is known as "dollar
cost averaging." It may help you to avoid getting caught up in the
excitement of a rising market and will reduce the risk of buying at high
points.
Of course, no financial plan or program, no matter how well-designed, is
guaranteed to be successful. In addition, nothing eliminates the risk
associated with overall market trends. However, utilizing these various
strategies may help to minimize the risk by reducing the extent to which
an investor may be affected by a decline in any one security or segment
of the market. If you use dollar cost averaging, you should consider
your ability to continue purchases through periods of declining prices.
Thank you for placing your trust 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.
April 28, 2000
* There are a variety of risks associated with investing in bond mutual
funds, including interest rate risk and credit risk. Interest rate risk
is the risk that bonds will decrease in value as interest rates rise. As
a general matter, longer-term bonds fluctuate more than shorter-term
bonds in reaction to changes in interest rates. Credit risk is the risk
that that bonds will decline in value as the result of a decline in the
credit rating of the bonds or the economy as a whole. You should consult
your prospectus for a precise explanation of the risks associated with
your fund.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES--88.1%
$ 6,000M Abbott Laboratories, 4/13/2000 5.98% $ 5,988,016 $ 347
1,300M Associates Corp. of North America,
4/6/2000 5.56 1,300,205 75
1,000M Associates Corp. of North America,
4/6/2000 5.70 1,000,157 58
1,015M Associates Corp. of North America,
6/15/2000 6.08 1,014,729 59
100M Associates Corp. of North America,
6/15/2000 6.20 99,973 6
600M Associates Corp. of North America,
9/15/2000 6.34 599,531 35
5,600M AT&T Corp., 3/8/2001 5.89 5,599,494 324
4,500M BellSouth Corp., 4/12/2000 6.00 4,491,738 260
4,500M Chevron Corp., 4/14/2000 6.07 4,490,135 260
6,000M Clorox Co., 4/7/2000 5.81 5,994,140 347
450M Colgate-Palmolive Co., 4/17/2000 5.13 450,077 26
1,000M Donnelley RR & Sons Co., 6/21/2000 5.95 1,000,804 58
1,000M Dow Jones & Company, Inc., 12/1/2000 6.54 994,276 58
1,000M Dresser Industries, Inc., 6/1/2000 5.90 1,000,386 58
1,335M Dresser Industries, Inc., 6/1/2000 5.91 1,335,516 77
400M Dresser Industries, Inc., 6/1/2000 6.14 400,154 23
2,075M Du Pont (E.I.) de Nemours & Co.,
4/15/2000 5.19 2,077,749 120
1,000M Du Pont (E.I.) de Nemours & Co.,
4/15/2000 6.00 1,001,325 58
3,500M Du Pont (E.I.) de Nemours & Co.,
10/11/2000 6.53 3,491,942 202
3,500M Eastman Kodak Co., 5/9/2000 5.90 3,478,084 201
200M First Union Corp., 6/15/2000 6.20 200,070 12
3,000M First Union Corp., 10/27/2000 6.73 3,000,000 174
1,000M Florida Power Corp., 4/1/2000 5.85 1,000,000 58
2,000M Ford Motor Credit Co., 4/15/2000 5.65 2,002,786 116
1,000M Ford Motor Credit Co., 8/16/2000 6.40 1,001,140 58
530M Ford Motor Credit Co., 10/6/2000 6.61 529,110 31
2,500M Ford Motor Credit Co., 11/8/2000 6.60 2,492,897 144
400M Gannett Company, Inc., 5/1/2000 6.02 399,900 23
500M Gannett Company, Inc., 5/1/2000 6.04 499,875 29
250M Gannett Company, Inc., 5/1/2000 6.15 249,938 14
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES (continued)
$ 4,500M General Electric Capital Corp., 4/13/2000 5.91% $ 4,491,109 $ 260
750M General Electric Capital Corp., 4/24/2000 5.65 750,027 43
1,500M General Electric Capital Corp., 8/16/2000 6.32 1,498,187 87
7,000M General Mills, Inc., 4/5/2000 5.80 6,995,470 405
7,600M Illinois Tool Works, Inc., 4/25/2000 5.86 7,570,188 438
200M International Business Machines Corp.,
6/15/2000 5.67 200,186 12
1,000M International Business Machines Corp.,
6/15/2000 5.68 1,000,930 58
500M International Business Machines Corp.,
6/15/2000 5.70 500,465 29
1,350M International Business Machines Corp.,
6/15/2000 5.72 1,351,255 78
570M International Business Machines Corp.,
6/15/2000 5.80 570,530 33
1,000M International Business Machines Corp.,
6/15/2000 5.90 1,000,930 58
1,500M International Business Machines Corp.,
6/15/2000 5.94 1,501,396 87
1,025M International Business Machines Corp.,
6/15/2000 6.10 1,025,954 59
4,000M Johnson & Johnson, 5/5/2000 5.90 3,977,335 230
1,550M Lubrizol Corp., 5/8/2000 5.93 1,540,524 89
3,000M McGraw-Hill Companies, Inc., 4/25/2000 5.83 2,988,272 173
2,450M National Rural Utilities Coop.
Finance Corp., 4/17/2000 5.83 2,443,615 141
2,000M NIKE, Inc., 6/16/2000 5.32 2,003,512 116
2,340M Paccar Financial Corp., 7/17/2000 6.17 2,333,014 135
7,000M PepsiCo, Inc., 4/7/2000 6.10 6,992,882 405
500M PepsiCo, Inc., 5/15/2000 6.11 500,358 29
500M PepsiCo, Inc., 6/1/2000 6.11 499,729 29
4,000M Pfizer Corp., 4/17/2000 5.91 3,989,464 231
3,000M Pitney Bowes Credit Corp., 4/3/2000 5.96 2,999,005 174
5,000M Prudential Funding Corp., 4/14/2000 6.01 4,989,147 289
3,000M Prudential Funding Corp., 5/25/2000 5.91 2,973,234 172
1,525M Regions Bank, 4/7/2000 5.95 1,523,484 88
3,000M Regions Bank, 4/13/2000 5.95 2,994,034 173
6,000M Sara Lee Corp., 4/3/2000 6.01 5,997,995 347
8,500M Schering-Plough Corp., 4/27/2000 5.82 8,464,085 490
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES (continued)
$ 1,300M Wal-Mart Stores, Inc., 7/15/2000 6.18% $ 1,309,960 $ 76
1,000M Wal-Mart Stores, Inc., 7/15/2000 6.27 1,007,663 58
1,500M Walt Disney Co., 3/30/2001 6.76 1,494,874 87
500M Walt Disney Co., 4/17/2000 5.81 499,927 29
5,000M Walt Disney Co., 4/17/2000 5.88 4,999,270 289
--------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $152,162,157) 152,162,157 8,808
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--12.7%
5,000M Fannie Mae, 5/4/2000 5.81 4,973,211 288
5,000M Fannie Mae, 5/25/2000 5.85 4,955,896 287
2,000M Federal Home Loan Bank, 4/20/2000 5.07 1,999,873 116
1,070M Federal Home Loan Bank, 8/23/2000 5.97 1,065,918 62
9,000M Freddie Mac, 5/25/2000 5.83 8,920,821 516
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $21,915,719) 21,915,719 1,269
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $174,077,876) + 100.8% 174,077,876 10,077
Excess of Liabilities Over Other Assets (0.8) (1,324,063) (77)
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $172,753,813 $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.
+ Aggregate cost for federal income tax purposes is the same.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS GOVERNMENT FUND, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED CERTIFICATES--94.0%
Federal National Mortgage Association--12.9%
$ 16,679M 8%, 9/1/2027-4/1/2030 $ 16,735,550 $ 1,289
Government National Mortgage Association I
Program--39.4%
15,605M 6.50%, 1/15/2029-5/15/2029 14,727,627 1,134
30,486M 7%, 7/15/2027-11/15/2028 29,554,997 2,275
6,990M 7.50%, 1/15/2030 6,930,940 534
Government National Mortgage Association II
Program--41.7%
42,718M 7%, 6/20/2023-10/20/2029 41,225,865 3,173
13,004M 7.50%, 12/20/2022-10/20/2023 12,893,368 993
--------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $125,303,710) 122,068,347 9,398
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--5.8%
3,500M PepsiCo, Inc., 6.10% 4/7/2000 3,496,441 269
4,000M Pitney Bowes Credit Corp., 6.04%, 4/4/2000 3,997,986 308
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $7,494,427) 7,494,427 577
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $132,798,137) 99.8% 129,562,774 9,975
Other Assets, Less Liabilities 0.2 319,915 25
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $129,882,689 $10,000
========================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--88.9%
Aerospace/Defense--5.0%
$ 700M Precision Castparts Corp., 8.75%, 2005 $ 703,410 $ 129
700M Raytheon Co., 6.15%, 2008 621,089 114
750M Rockwell International Corp., 8.375%, 2001 757,673 139
700M Thiokol Corp., 6.625%, 2008 638,103 117
--------------------------------------------------------------------------------------------------------
2,720,275 499
--------------------------------------------------------------------------------------------------------
Apparel/Textiles/Shoes--.5%
250M VF Corp., 9.50%, 2001 255,780 47
--------------------------------------------------------------------------------------------------------
Automotive --5.1%
725M DaimlerChrysler NA Holdings Corp., 7.20%, 2009 708,955 130
800M Goodyear Tire & Rubber Co., 8.50%, 2007 811,079 148
650M Lear Corp., 7.96%, 2005 607,360 111
730M Navistar International Corp., 8%, 2008 680,725 125
--------------------------------------------------------------------------------------------------------
2,808,119 514
--------------------------------------------------------------------------------------------------------
Chemicals--2.6%
750M Du Pont (E.I.) de Nemours & Co., 8.125%, 2004 774,338 142
700M Lubrizol Corp., 7.25%, 2025 669,045 122
--------------------------------------------------------------------------------------------------------
1,443,383 264
--------------------------------------------------------------------------------------------------------
Conglomerates--1.3%
700M Hanson Overseas BV, 7.375%, 2003 694,733 127
--------------------------------------------------------------------------------------------------------
Consumer Products--1.7%
300M Dial Corp., 6.50%, 2008 277,687 51
735M Mattel, Inc., 6%, 2003 673,283 123
--------------------------------------------------------------------------------------------------------
950,970 174
--------------------------------------------------------------------------------------------------------
Electric Utilities--9.9%
750M Baltimore Gas & Electric Co., 6.50%, 2003 731,363 134
735M Consumers Energy Co., 6.375%, 2008 664,301 122
800M Kansas Gas & Electric Co., 7.60%, 2003 797,992 146
547M Niagara Mohawk Holdings, Inc., 7.625%, 2005 533,059 98
725M Northwestern Public Service Co., 7.10%, 2005 710,048 130
311M Old Dominion Electric Cooperative, 7.97%, 2002 312,908 57
750M Philadelphia Electric Co., 8%, 2002 755,155 138
925M Southwestern Electric Power Co., 7%, 2007 892,717 163
--------------------------------------------------------------------------------------------------------
5,397,543 988
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energy--4.8%
$ 700M Baroid Corp., 8%, 2003 $ 714,845 $ 131
500M Mobil Corp., 8.625%, 2021 566,158 104
725M Occidental Petroleum Corp., 6.40%, 2013 691,118 127
750M Phillips Petroleum Co., 7.20%, 2023 642,480 117
--------------------------------------------------------------------------------------------------------
2,614,601 479
--------------------------------------------------------------------------------------------------------
Entertainment/Leisure--1.9%
350M Time Warner, Inc., 6.875%, 2018 310,912 57
700M Walt Disney Co., 7.30%, 2005 699,213 128
--------------------------------------------------------------------------------------------------------
1,010,125 185
--------------------------------------------------------------------------------------------------------
Financial Services--11.0%
700M Bank of America Corp., 7.80%, 2010 706,712 129
700M Chemical Bank, 7%, 2005 679,069 124
800M Citicorp, 8%, 2003 808,920 148
800M First Union Corp., 7.70%, 2005 805,600 147
750M Fleet Capital Trust II, 7.92%, 2026 700,585 128
775M Huntington National Bank, 8%, 2010 769,958 141
750M Republic NY Corp., 7.75%, 2009 746,890 137
775M Washington Mutual, Inc., 8.25%, 2010 776,922 142
--------------------------------------------------------------------------------------------------------
5,994,656 1,096
--------------------------------------------------------------------------------------------------------
Food/Beverages/Tobacco--7.6%
750M Anheuser-Busch Companies, Inc., 7%, 2005 730,863 134
550M Coca-Cola Enterprises, Inc., 7.875%, 2002 554,604 102
700M Hershey Foods Corp., 6.70%, 2005 688,372 126
725M Pepsi Bottling Group, Inc., 7%, 2029 657,141 120
900M Philip Morris Companies, Inc., 7.125%, 2002 867,929 159
650M Universal Corp., 9.25%, 2001 658,679 120
--------------------------------------------------------------------------------------------------------
4,157,588 761
--------------------------------------------------------------------------------------------------------
Gas Transmission--2.5%
700M Columbia Energy Group, 6.80%, 2005 670,132 123
700M Enron Corp., 7.125%, 2007 671,080 123
--------------------------------------------------------------------------------------------------------
1,341,212 246
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS INVESTMENT GRADE FUND
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Healthcare--3.8%
$ 725M Johnson & Johnson, 6.625%, 2009 $ 702,009 $ 129
750M Tenet Healthcare Corp., 8.625%, 2007 716,250 131
700M Warner-Lambert Co., 6%, 2008 655,878 120
--------------------------------------------------------------------------------------------------------
2,074,137 380
--------------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--1.3%
725M Xerox Corp., 7.20%, 2016 695,168 127
--------------------------------------------------------------------------------------------------------
Investment/Finance Companies--5.2%
700M Associates Corp. of North America, 7.875%, 2001 704,536 129
750M Ford Motor Credit Co., 7.50%, 2005 748,323 137
700M General Electric Capital Corp., 7.875%, 2006 721,342 132
700M General Motors Acceptance Corp., 6.625%, 2005 669,328 123
--------------------------------------------------------------------------------------------------------
2,843,529 521
--------------------------------------------------------------------------------------------------------
Media--5.2%
750M Cox Enterprises, Inc., 8%, 2007 + 752,103 138
700M New York Times Co., Inc., 7.625%, 2005 713,665 131
750M News America Holdings, Inc., 8.50%, 2005 771,377 141
700M PanAmSat Corp., 6.375%, 2008 624,756 114
--------------------------------------------------------------------------------------------------------
2,861,901 524
--------------------------------------------------------------------------------------------------------
Miscellaneous--.9%
600M Allied Waste, Inc. N.A., 7.625%, 2006 495,000 91
--------------------------------------------------------------------------------------------------------
Retail - Food/Drug--2.3%
700M Kroger Co., 7%, 2018 619,765 113
650M Safeway, Inc., 7.25%, 2004 642,152 118
--------------------------------------------------------------------------------------------------------
1,261,917 231
--------------------------------------------------------------------------------------------------------
Retail - General Merchandise--2.5%
700M Federated Department Stores, Inc., 7.45%, 2017 658,925 120
700M Wal-Mart Stores, Inc., 8%, 2006 730,853 134
--------------------------------------------------------------------------------------------------------
1,389,778 254
--------------------------------------------------------------------------------------------------------
Telecommunications--11.9%
725M AT&T Corp., 6%, 2009 656,342 120
725M Global Crossing Holding, Ltd., 9.125%, 2006 + 694,188 127
725M Metromedia Fiber Network, Inc., 10%, 2009 695,094 127
725M MetroNet Communications Corp., 0%-9.95%, 2008 572,750 105
---------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Telecommunications (continued)
$ 700M New York Telephone Co., 7.25%, 2024 $ 632,312 $ 116
1,000M Pacific Bell Telephone Co., 7%, 2004 985,740 180
725M Sprint Capital Corp., 6.125%, 2008 658,566 121
750M Vodafone AirTouch, PLC, 7.75%, 2010 + 757,225 139
800M WorldCom, Inc., 8.875%, 2006 833,614 153
--------------------------------------------------------------------------------------------------------
6,485,831 1,188
--------------------------------------------------------------------------------------------------------
Transportation--1.9%
400M Eletson Holdings, Inc., 9.25%, 2003 362,000 66
700M Norfolk Southern Corp., 7.35%, 2007 683,225 125
--------------------------------------------------------------------------------------------------------
1,045,225 191
--------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $50,247,110) 48,541,471 8,887
--------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--1.3%
Housing
800M Virginia State Housing Dev. Auth., 6.51%, 2019
(cost $688,657) 717,000 131
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--1.4%
750M Federal Home Loan Bank, 8%, 2010
(cost $750,000) 752,678 138
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--5.4%
1,000M United States Treasury Notes, 7.875%, 2004 1,059,375 194
2,000M United States Treasury Notes, 5.625%, 2008 1,921,250 352
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $3,100,859) 2,980,625 546
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.0%
1,100M PepsiCo, Inc., 6.10%, 4/7/2000
(cost $1,098,881) 1,098,881 201
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $55,885,507) 99.0% 54,090,655 9,903
Other Assets, Less Liabilities 1.0 532,528 97
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $54,623,183 $10,000
========================================================================================================
+ See Note 4
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--85.6%
Aerospace/Defense--1.4%
$ 2,000M Burke Industries, Inc., 10%, 2007 $ 890,000 $ 16
3,000M DeCrane Aircraft Holdings, Inc., 12%, 2008 2,655,000 48
1,600M L-3 Communications Corp., 10.375%, 2007 1,592,000 29
3,000M L-3 Communications Corp., 8%, 2008 2,595,000 47
--------------------------------------------------------------------------------------------------------
7,732,000 140
--------------------------------------------------------------------------------------------------------
Agricultural Products--1.0%
6,900M Terra Industries, Inc., 10.50%, 2005 5,244,000 96
--------------------------------------------------------------------------------------------------------
Apparel/Textiles--2.1%
4,480M GFSI, Inc., 9.625%, 2007 2,889,600 52
7,750M Polymer Group, Inc., 9%, 2007 6,858,750 124
2,250M Worldtex, Inc., 9.625%, 2007 1,721,250 31
--------------------------------------------------------------------------------------------------------
11,469,600 207
--------------------------------------------------------------------------------------------------------
Automotive --2.3%
4,000M Accuride Corp., 9.25%, 2008 3,420,000 62
4,950M Cambridge Industries, Inc., 10.25%, 2007 ++ 816,750 15
2,800M Collins & Aikman Products Co., 11.50%, 2006 2,674,000 48
2,000M Cooperative Computing, Inc., 9%, 2008 570,000 10
4,200M Exide Corp., 10%, 2005 4,053,000 73
5,795M Safelite Glass Corp., 9.875%, 2006 ++ 144,875 3
2,500M Special Devices, Inc., 11.375%, 2008 1,137,500 21
--------------------------------------------------------------------------------------------------------
12,816,125 232
--------------------------------------------------------------------------------------------------------
Building Materials--.8%
2,500M American Architectural Products Corp., 11.75%, 2007 637,500 11
4,000M Nortek, Inc., 9.125%, 2007 3,660,000 66
--------------------------------------------------------------------------------------------------------
4,297,500 77
--------------------------------------------------------------------------------------------------------
Chemicals--6.3%
8,550M AEP Industries, Inc., 9.875%, 2007 6,840,000 123
9,800M Huntsman Polymers Corp., 11.75%, 2004 10,192,000 184
5,350M Hydrochem Industrial Services, Inc., 10.375%, 2007 4,146,250 75
9,500M Lyondell Chemical Co., 10.875%, 2009 8,977,500 162
1,500M Precise Technology, Inc., 11.125%, 2007 1,327,500 24
4,500M Texas Petrochemicals Corp., 11.125%, 2006 3,712,500 67
--------------------------------------------------------------------------------------------------------
35,195,750 635
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Products--3.1%
$ 3,420M AKI, Inc., 10.50%, 2008 $ 2,924,100 $ 53
4,500M Chattem, Inc., 8.875%, 2008 3,825,000 69
2,050M Corning Consumer Products Co., 9.625%, 2008 1,353,000 24
6,870M Herff Jones, Inc., 11%, 2005 7,196,325 130
2,135M Hines Horticulture, Inc., 11.75%, 2005 2,102,975 38
--------------------------------------------------------------------------------------------------------
17,401,400 314
--------------------------------------------------------------------------------------------------------
Containers/Packaging--1.7%
3,250M Radnor Holdings Corp., 10%, 2003 2,778,750 50
4,450M Tekni-Plex, Inc., 9.25%, 2008 4,249,750 77
2,200M U.S. Can Corp., 10.125%, 2006 2,321,000 42
--------------------------------------------------------------------------------------------------------
9,349,500 169
--------------------------------------------------------------------------------------------------------
Durable Goods Manufacturing--1.0%
1,750M Amtrol, Inc., 10.625%, 2006 1,653,750 30
1,500M Columbus McKinnon Corp., 8.50%, 2008 1,335,000 24
2,500M Day International Group, Inc., 11.125%, 2005 2,487,500 45
--------------------------------------------------------------------------------------------------------
5,476,250 99
--------------------------------------------------------------------------------------------------------
Electronics/Instruments/Components--.7%
4,000M Advanced Micro Devices, Inc., 11%, 2003 4,020,000 72
--------------------------------------------------------------------------------------------------------
Energy--2.2%
3,750M Giant Industries, Inc., 9.75%, 2003 3,614,062 65
3,750M Gulf Canada Resources, Ltd., 9.625%, 2005 3,768,750 68
2,000M RBF Finance Co., 11.375%, 2009 2,130,000 38
3,000M Tesoro Petroleum Corp., 9%, 2008 2,790,000 50
--------------------------------------------------------------------------------------------------------
12,302,812 221
--------------------------------------------------------------------------------------------------------
Entertainment/Leisure--2.8%
1,000M Bell Sports, Inc., 11%, 2008 985,000 18
3,890M Carmike Cinemas, Inc., 9.375%, 2009 2,470,150 45
4,000M KSL Recreation Group, Inc., 10.25%, 2007 3,780,000 68
4,000M Loews Cineplex Entertainment Corp., 8.875%, 2008 2,520,000 45
7,700M Outboard Marine Corp., 10.75%, 2008 5,813,500 105
--------------------------------------------------------------------------------------------------------
15,568,650 281
--------------------------------------------------------------------------------------------------------
Financial --.6%
4,500M Bay View Capital Corp., 9.125%, 2007 3,543,750 64
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Food Service--.8%
$ 5,000M Domino's, Inc., 10.375%, 2009 $ 4,593,750 $ 83
--------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.8%
5,000M Canandaigua Brands, Inc., 8.50%, 2009 4,650,000 84
3,500M Di Giorgio Corp., 10%, 2007 3,132,500 56
2,000M International Home Foods, Inc., 10.375%, 2006 1,970,000 36
--------------------------------------------------------------------------------------------------------
9,752,500 176
--------------------------------------------------------------------------------------------------------
Gaming/Lodging--1.6%
250M Hollywood Park, Inc., 9.25%, 2007 246,250 4
1,550M Isle of Capri Casinos, Inc., 8.75%, 2009 1,364,000 25
3,500M Park Place Entertainment Corp., 9.375%, 2007 + 3,430,500 62
4,000M Prime Hospitality Corp., 9.25%, 2006 3,960,000 71
--------------------------------------------------------------------------------------------------------
9,000,750 162
--------------------------------------------------------------------------------------------------------
Healthcare--4.0%
2,250M ALARIS Medical Systems, Inc., 9.75%, 2006 1,811,250 33
3,750M Conmed Corp., 9%, 2008 3,431,250 62
5,200M Fisher Scientific International, Inc., 9%, 2008 4,732,000 85
4,400M Genesis Health Ventures, Inc., 9.75%, 2005 ++ 462,000 8
5,750M Integrated Health Services, Inc., 10.25%, 2006 ++ 258,750 5
1,400M Leiner Health Products, Inc., 9.625%, 2007 1,043,000 19
6,689M Owens & Minor, Inc., 10.875%, 2006 6,889,670 124
1,500M Packard Bioscience, Inc., 9.375%, 2007 1,342,500 24
2,300M Tenet Healthcare Corp., 8.625%, 2007 2,196,500 40
--------------------------------------------------------------------------------------------------------
22,166,920 400
--------------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--3.1%
4,400M ChipPac International, Ltd., 12.75%, 2009 + 4,647,500 84
5,500M Exodus Communications, Inc., 10.75%, 2009 5,513,750 99
4,200M Rhythyms NetConnections, Inc., 12.75%, 2009 3,465,000 62
4,000M Rhythyms NetConnections, Inc., 14%, 2010 + 3,460,000 62
--------------------------------------------------------------------------------------------------------
17,086,250 307
--------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--12.2%
2,000M Century Communications Corp., 9.50%, 2005 1,970,000 36
5,000M Charter Communications Holdings, LLC,
8.625%, 2009 4,362,500 79
1,000M Charter Communications Holdings, LLC,
10%, 2009 + 962,500 17
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Media (Cable TV/Broadcasting) (continued)
$ 2,000M Charter Communications Holdings, LLC,
10.25%, 2010 + $ 1,925,000 $ 35
5,000M Comcast United Kingdom Cable Partners, Ltd.,
0%-11.20%, 2007 4,712,500 85
4,750M Diamond Cable Communications PLC,
0%-11.75%, 2005 4,429,375 80
7,650M Diva Systems Corp., 0%-12.625%, 2008 4,398,750 79
15,200M Echostar DBS, 9.375%, 2009 14,668,000 265
2,550M Grupo Televisa, SA, 11.875%, 2006 3,047,250 55
6,500M Mediacom LLC/Mediacom Capital Corp., 8.50%, 2008 6,012,500 108
4,000M Mediacom LLC/Mediacom Capital Corp., 7.875%, 2011 3,480,000 63
2,000M NTL, Inc., 11.50%, 2008 2,100,000 38
1,385M Rogers Communications, Inc., 9.125%, 2006 1,378,075 25
2,700M Rogers Communications, Inc., 8.875%, 2007 2,632,500 47
3,000M Sinclair Broadcasting Group, Inc., 10%, 2005 2,835,000 51
5,850M Star Choice Communications, Inc., 13%, 2005 5,835,375 105
3,000M Young Broadcasting Corp., 10.125%, 2005 2,955,000 53
--------------------------------------------------------------------------------------------------------
67,704,325 1,221
--------------------------------------------------------------------------------------------------------
Media (Other)--3.0%
2,000M Garden State Newspapers, Inc., 8.75%, 2009 1,750,000 32
2,000M Garden State Newspapers, Inc., 8.625%, 2011 1,710,000 31
3,250M Mail-Well I Corp., 8.75%, 2008 2,811,250 51
8,000M MDC Communications Corp., 10.50%, 2006 7,560,000 136
3,000M Von Hoffman Press, Inc., 10.875%, 2007 + 2,850,000 51
--------------------------------------------------------------------------------------------------------
16,681,250 301
--------------------------------------------------------------------------------------------------------
Mining/Metals--3.4%
2,500M Commonwealth Aluminum Corp., 10.75%, 2006 2,487,500 45
3,700M CSN Iron, SA, 9.125%, 2007 + 3,117,250 56
5,800M Euramax International PLC, 11.25%, 2006 5,684,000 103
3,000M Murrin Murrin Holdings Property, Ltd., 9.375%, 2007 2,535,000 46
2,000M Renco Metals, Inc., 11.50%, 2003 910,000 16
250M WCI Steel, Inc., 10%, 2004 245,000 4
4,000M Wheeling-Pittsburgh Corp., 9.25%, 2007 3,600,000 65
--------------------------------------------------------------------------------------------------------
18,578,750 335
--------------------------------------------------------------------------------------------------------
Miscellaneous--2.3%
3,500M Allied Waste, Inc. NA., 10%, 2009 2,607,500 47
1,500M Iron Mountain, Inc., 10.125%, 2006 1,462,500 26
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Miscellaneous (continued)
$ 5,825M Kindercare Learning Centers, Inc., 9.50%, 2009 $ 5,271,625 $ 95
2,000M Loomis Fargo & Co., 10%, 2004 1,960,000 35
1,286M Pierce Leahy Corp., 11.125%, 2006 1,314,935 24
--------------------------------------------------------------------------------------------------------
12,616,560 227
--------------------------------------------------------------------------------------------------------
Paper/Forest Products--5.1%
4,000M Container Corp., 11.25%, 2004 4,060,000 73
1,650M Fonda Group, Inc., 9.50%, 2007 1,377,750 25
5,950M Packaging Corp. of America, 9.625%, 2009 5,875,625 106
7,500M Riverwood International Corp., 10.25%, 2006 7,378,125 133
6,452M S.D. Warren Co., Inc., 14%, 2006 7,193,889 130
2,400M Stone Container Corp., 10.75%, 2002 2,412,000 43
--------------------------------------------------------------------------------------------------------
28,297,389 510
--------------------------------------------------------------------------------------------------------
Real Estate/Construction--.5%
6,600M Cathay International, Ltd., 13%, 2008 + 3,036,000 55
--------------------------------------------------------------------------------------------------------
Retail - General Merchandise--.7%
4,000M Big 5 Corp., 10.875%, 2007 3,780,000 68
--------------------------------------------------------------------------------------------------------
Telecommunications--19.2%
3,850M 21st Century Telecom Group, Inc., 0%-12.25%, 2008 2,666,125 48
9,500M E. Spire Communications, Inc., 0%-13%, 2005 4,940,000 89
5,000M Global Crossing Holding, Ltd., 9.50%, 2009 + 4,850,000 87
4,600M GST USA, Inc., 0%-13.875%, 2005 2,461,000 44
4,000M Hyperion Telecommunications, Inc., 0%-13%, 2003 3,665,000 66
2,400M ICG Services, Inc., 0%-10%, 2008 1,278,000 23
5,000M Intermedia Communications, Inc., 8.50%, 2008 4,600,000 83
8,000M Level 3 Communications, Inc., 9.125%, 2008 6,940,000 125
3,000M Level 3 Communications, Inc., 0%-12.875%, 2010 + 1,485,000 27
2,500M McCaw International, Ltd., 0%-13%, 2007 1,825,000 33
2,250M Netia Holdings BV, 0%-11.25%, 2007 1,569,375 28
5,000M Nextel Communications, Inc., 0%-9.95%, 2008 3,387,500 61
7,000M Nextlink Communications, Inc., 12.50%, 2006 7,245,000 131
2,750M Nextlink Communications, Inc., 0%-9.45%, 2008 1,650,000 30
7,000M OmniPoint Corporation, 11.625%, 2006 7,455,000 134
7,300M Orion Network Systems, Inc., 11.25%, 2007 5,821,750 105
6,350M Pac-West Telecommunications, Inc., 13.50%, 2009 6,572,250 119
1,800M Powertel, Inc., 0%-12%, 2006 1,629,000 29
4,000M Powertel, Inc., 11.125%, 2007 4,100,000 74
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Telecommunications (continued)
$ 2,200M Qwest Communications International, Inc.,
0%-9.47%, 2007 $ 1,760,000 $ 32
9,000M RCN Corp., 0%-11.125%, 2007 5,805,000 105
300M RCN Corp., 0%-11%, 2008 178,500 3
4,500M Tritel PCS, Inc., 0%-12.75%, 2009 2,790,000 50
8,000M Triton Communications, LLC, 0%-11%, 2008 5,440,000 98
5,500M Viatel, Inc., 0%-12.50%, 2008 3,038,750 55
250M VoiceStream Wireless Corp., 0%-11.875%, 2009 + 151,250 3
4,500M Williams Communications Group, Inc.,
10.875%, 2009 4,466,250 81
5,800M World Access, Inc., 13.25%, 2008 4,959,000 89
4,000M Worldwide Fiber, Inc., 12%, 2009 3,780,000 68
--------------------------------------------------------------------------------------------------------
106,508,750 1,920
--------------------------------------------------------------------------------------------------------
Transportation--1.9%
2,500M American Commercial Lines, LLC, 10.25%, 2008 2,075,000 37
9,250M Eletson Holdings, Inc., 9.25%, 2003 8,371,250 151
--------------------------------------------------------------------------------------------------------
10,446,250 188
--------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $550,437,072) 474,666,781 8,560
--------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.5%
Chemicals--.2%
2,000M Hexcel Corp., 7%, 2003 1,367,500 25
--------------------------------------------------------------------------------------------------------
Media (Other)--.3%
2,000M Mail-Well, Inc., 5%, 2002 1,617,500 29
--------------------------------------------------------------------------------------------------------
Total Value of Convertible Bonds (cost $3,742,620) 2,985,000 54
--------------------------------------------------------------------------------------------------------
COMMON STOCKS--1.2%
Media (Cable TV/Broadcasting)--1.1%
75,577 * Echostar Communications Corp. - Class A 5,970,583 108
--------------------------------------------------------------------------------------------------------
Telecommunications--.1%
4,090 * Viatel, Inc. 205,267 4
18,224 * World Access, Inc. 348,539 6
--------------------------------------------------------------------------------------------------------
553,806 10
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $345,886) 6,524,389 118
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
March 31, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
Shares, For Each
Warrants $10,000 of
or Units Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS--3.2%
Financial --.2%
40,800 Astoria Financial Corp., 12%, Series B $ 1,234,200 $ 22
--------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--3.0%
153,043 CSC Holdings, Inc., 11.125%, PIK, Series M 16,498,082 298
--------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $16,792,437) 17,732,282 320
--------------------------------------------------------------------------------------------------------
WARRANTS--0.3%
Aerospace/Defense--.0%
3,000 * DeCrane DeCrane Aircraft Holdings, Inc. (expiring 9/30/08) + 3,000 --
--------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--.2%
22,950 * Diva Systems Corp. (expiring 3/1/08) 550,800 10
135,486 * Star Choice Communications, Inc. (expiring 12/15/05) + 355,653 6
--------------------------------------------------------------------------------------------------------
906,453 16
--------------------------------------------------------------------------------------------------------
Mining/Metals--.0%
200 * Gulf State Steel Acquisition Corp. (expiring 4/15/03) + -- --
--------------------------------------------------------------------------------------------------------
Paper/Forest Products--.0%
139,200 * S.D. Warren Co., Inc. (expiring 12/15/06) + -- --
--------------------------------------------------------------------------------------------------------
Telecommunications--.1%
11,500 * E. Spire Communications, Inc. (expiring 11/1/05) 460,000 8
3,400 * McCaw International, Ltd. (expiring 4/15/07) 8,500 --
5,600 * Powertel, Inc. (expiring 2/1/06) 386,400 7
--------------------------------------------------------------------------------------------------------
854,900 15
--------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $10,515) 1,764,353 31
--------------------------------------------------------------------------------------------------------
UNITS--.8%
Mining/Metals--.5%
2,500 Russel Metals, Inc. ** 2,487,500 45
--------------------------------------------------------------------------------------------------------
Telecommunications--.3%
3,500 GT Group Telecom, Inc. *** + 1,907,500 34
--------------------------------------------------------------------------------------------------------
Total Value of Units (cost $4,383,033) 4,395,000 79
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--2.3%
$ 7,500M United States Treasury Notes, 7.25%, 2004 $ 7,750,785 $ 140
5,000M United States Treasury Notes, 7%, 2006 5,175,000 93
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $13,493,438) 12,925,785 233
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.7%
13,200M Duke Energy Corp., 6.04%, 4/4/00 13,193,350 238
11,000M Peoples Gas Light and Coke Co., 6.10%, 4/6/00 10,990,677 198
1,650M Prudential Funding Corp., 5.95%, 4/3/00 1,649,455 30
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $25,833,482) 25,833,482 466
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $615,038,483) 98.6% 546,827,072 9,861
Other Assets, Less Liabilities 1.4 7,696,423 139
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $554,523,495 $10,000
========================================================================================================
* Non-income producing
** Each unit consists of one Russel Metals, Inc. 10% $600 guaranteed
Senior Note due 2009 and one Russel Metals, Inc. USA LLC 10% $400
guaranteed Senior Note due 2009.
*** Each unit consists of one GT Group Telecom, Inc. 0%-13.25% $1,000
guaranteed Senior Note due 2003 and one warrant to buy 4.9106 Class "B"
shares.
+ See Note 4
++ In default as to principal and/or interest payment
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
March 31, 2000
-------------------------------------------------------------------------------------------------------------
CASH INVESTMENT
MANAGEMENT GOVERNMENT GRADE INCOME
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $174,077,876 $132,798,137 $55,885,507 $615,038,483
============= ============= ============= =============
At value (Note 1A) $174,077,876 $129,562,774 $54,090,655 $546,827,072
Cash 519,033 651,599 217,012 628,609
Receivables:
Interest 1,164,663 747,701 909,602 13,929,865
Shares sold -- 120,605 22,459 232,730
Investment securities sold -- -- 704,199 --
Other assets 24,200 27,482 64 232,843
------------- ------------- ------------- -------------
Total Assets 175,785,772 131,110,161 55,943,991 561,851,119
------------- ------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased 1,806,653 -- 771,737 1,407,604
Dividends payable 735,184 649,282 267,677 3,962,962
Shares redeemed 343,679 460,554 226,870 1,366,713
Accrued advisory fees 72,019 66,423 27,945 304,226
Accrued expenses 74,424 51,213 26,579 286,119
------------- ------------- ------------- -------------
Total Liabilities 3,031,959 1,227,472 1,320,808 7,327,624
------------- ------------- ------------- -------------
Net Assets $172,753,813 $129,882,689 $54,623,183 $554,523,495
============= ============= ============= =============
Net Assets Consist of:
Capital paid in $172,753,813 $154,822,026 $57,202,783 $634,408,956
Undistributed net investment income -- 179,767 91,194 5,338,969
Accumulated net realized loss on investments -- (21,883,741) (875,942) (17,013,019)
Net unrealized depreciation in value of
investments -- (3,235,363) (1,794,852) (68,211,411)
------------- ------------- ------------- -------------
Total $172,753,813 $129,882,689 $54,623,183 $554,523,495
============= ============= ============= =============
Net Assets:
Class A $170,128,027 $126,982,674 $47,274,227 $532,168,321
Class B $ 2,625,786 $ 2,900,015 $ 7,348,956 $ 22,355,174
Shares outstanding (Note 6):
Class A 170,128,027 11,807,254 5,013,640 141,232,586
Class B 2,625,786 269,841 778,607 5,956,906
Net asset value and redemption price per
share - Class A $1.00+ $10.75 $9.43 $3.77
============= ============= ============= =============
Maximum offering price per share - Class A
(Net asset value/.9375)* N/A $11.47 $10.06 $4.02
============= ============= ============= =============
Net asset value and offering price per
share - Class B (Note 6) $1.00 $10.75 $9.44 $3.75
============= ============= ============= =============
* On purchases of $25,000 or more, the sales charge is reduced.
+ Also maximum offering price per share
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Six Months Ended March 31, 2000
-------------------------------------------------------------------------------------------------------------
CASH INVESTMENT
MANAGEMENT GOVERNMENT GRADE INCOME
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Income:
Interest income $4,820,228 $4,943,020 $2,016,459 $21,234,886
Dividends (Note 1F) -- -- -- 617,763
------------- ------------- ------------- -------------
Total income 4,820,228 4,943,020 2,016,459 21,852,649
------------- ------------- ------------- -------------
Expenses (Notes 1 and 3):
Advisory fees 415,456 685,805 207,993 1,536,510
Distribution plan expenses - Class A -- 167,674 72,363 600,794
Distribution plan expenses - Class B 10,542 15,452 36,136 76,106
Shareholder servicing costs 428,112 158,084 66,631 384,092
Professional fees 9,000 20,255 5,991 47,462
Custodian fees 25,066 17,275 4,986 19,662
Reports to shareholders 46,116 8,264 5,511 24,451
Other expenses 20,081 21,099 7,944 26,973
------------- ------------- ------------- -------------
Total expenses 954,373 1,093,908 407,555 2,716,050
Less: Expenses waived or assumed (278,726) (274,322) (72,425) --
Custodian fees paid indirectly (902) (12,221) (4,905) (12,586)
------------- ------------- ------------- -------------
Net expenses 674,745 807,365 330,225 2,703,464
------------- ------------- ------------- -------------
Net investment income 4,145,483 4,135,655 1,686,234 19,149,185
------------- ------------- ------------- -------------
Realized and Unrealized Gain (Loss) on
Investments (Note 2):
Net realized loss on investments -- (2,105,943) (837,615) (4,796,441)
Net unrealized depreciation of investments -- (223,161) (477,931) (13,524,115)
------------- ------------- ------------- -------------
Net loss on investments -- (2,329,104) (1,315,546) (18,320,556)
------------- ------------- ------------- -------------
Net Increase in Net Assets Resulting from
Operations $4,145,483 $1,806,551 $ 370,688 $ 828,629
------------- ------------- ------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
----------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT GOVERNMENT
------------------------------------------- -----------------------------
10/1/99 to 1/1/99 to 1/1/98 to 10/1/99 to 10/1/98 to
3/31/00 9/30/99 12/31/98 3/31/00 9/30/99
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 4,145,483 $ 5,281,831 $ 7,183,007 $ 4,135,655 $ 8,610,226
Net realized gain (loss) on investments -- -- 962 (2,105,943) (212,801)
Net unrealized depreciation of investments -- -- -- (223,161) (7,728,801)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations 4,145,483 5,281,831 7,183,969 1,806,551 668,624
------------- ------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income-Class A (4,085,749) (5,236,156) (7,150,694) (4,016,055) (8,322,989)
Net investment income-Class B (59,734) (45,675) (32,313) (80,542) (146,529)
Net realized gains-Class A -- -- (952) -- --
Net realized gains-Class B -- -- (10) -- --
------------- ------------- ------------- ------------- -------------
Total distributions (4,145,483) (5,281,831) (7,183,969) (4,096,597) (8,469,518)
------------- ------------- ------------- ------------- -------------
Share Transactions *
Class A:
Proceeds from shares sold 156,341,710 207,642,217 275,726,040 3,142,170 15,464,882
Value of shares issued for acquisitions** -- -- -- -- --
Reinvestment of distributions 3,928,520 4,502,460 7,004,723 3,298,897 6,905,530
Cost of shares redeemed (157,504,786) (205,252,197) (261,823,090) (17,362,454) (35,078,160)
------------- ------------- ------------- ------------- -------------
2,765,444 6,892,480 20,907,673 (10,921,387) (12,707,748)
------------- ------------- ------------- ------------- -------------
Class B:
Proceeds from shares sold 1,963,064 2,740,803 2,414,995 434,000 1,200,503
Value of shares issued for acquisition** -- -- -- -- --
Reinvestment of distributions 55,414 36,167 30,219 65,285 122,997
Cost of shares redeemed (2,044,354) (1,619,923) (1,217,975) (763,278) (1,012,485)
------------- ------------- ------------- ------------- -------------
(25,876) 1,157,047 1,227,239 (263,993) 311,015
------------- ------------- ------------- ------------- -------------
Net increase (decrease) from
share transactions 2,739,568 8,049,527 22,134,912 (11,185,380) (12,396,733)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets 2,739,568 8,049,527 22,134,912 (13,475,426) (20,197,627)
Net Assets
Beginning of period 170,014,245 161,964,718 139,829,806 143,358,115 163,555,742
------------- ------------- ------------- ------------- -------------
End of period+ $172,753,813 $170,014,245 $161,964,718 $129,882,689 $143,358,115
============= ============= ============= ============= =============
+Includes undistributed net investment
income of $ -- $ -- $ -- $ 179,767 $ 140,709
============= ============= ============= ============= =============
* See pages 26 and 27
** See Note 7
See notes to financial statements
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS
------------------------------------------------------------------------------------------------------
INVESTMENT GRADE INCOME
---------------------------- ----------------------------
10/1/99 to 10/1/98 to 10/1/99 to 10/1/98 to
3/31/00 9/30/99 3/31/00 9/30/99
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 1,686,234 $ 3,161,838 $ 19,149,185 $ 40,923,339
Net realized gain (loss) on investments (837,615) 43,933 (4,796,441) (807,500)
Net unrealized depreciation of investments (477,931) (4,531,517) (13,524,115) (26,750,866)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations 370,688 (1,325,746) 828,629 13,364,973
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income-Class A (1,463,849) (2,852,022) (19,767,212) (38,097,881)
Net investment income-Class B (192,591) (329,267) (708,120) (1,015,407)
Net realized gains-Class A (50,935) (315,829) -- --
Net realized gains-Class B (7,477) (34,277) -- --
------------- ------------- ------------- -------------
Total distributions (1,714,852) (3,531,395) (20,475,332) (39,113,288)
------------- ------------- ------------- -------------
Share Transactions *
Class A:
Proceeds from shares sold 4,428,621 11,094,669 14,680,988 28,824,653
Value of shares issued for acquisitions** -- -- 174,400,627 --
Reinvestment of distributions 1,191,943 2,502,015 13,478,214 27,082,488
Cost of shares redeemed (6,151,768) (10,073,591) (40,068,249) (52,103,604)
------------- ------------- ------------- -------------
(531,204) 3,523,093 162,491,580 3,803,537
------------- ------------- ------------- -------------
Class B:
Proceeds from shares sold 1,238,668 3,650,939 3,794,483 7,314,849
Value of shares issued for acquisition** -- -- 7,454,721 --
Reinvestment of distributions 147,958 270,893 349,690 574,750
Cost of shares redeemed (1,190,869) (1,308,933) (2,222,920) (2,187,378)
------------- ------------- ------------- -------------
195,757 2,612,899 9,375,974 5,702,221
------------- ------------- ------------- -------------
Net increase (decrease) from
share transactions (335,447) 6,135,992 171,867,554 9,505,758
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (1,679,611) 1,278,851 152,220,851 (16,242,557)
Net Assets
Beginning of period 56,302,794 55,023,943 402,302,644 418,545,201
------------- ------------- ------------- -------------
End of period+ $54,623,183 $56,302,794 $554,523,495 $402,302,644
============= ============= ============= =============
+Includes undistributed net investment
income of $ 91,194 $ 61,400 $ 5,338,969 $ 6,665,116
============= ============= ============= =============
* See pages 26 and 27
** See Note 7
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS
---------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT GOVERNMENT
------------------------------------------- ----------------------------
10/1/99 to 1/1/99 to 1/1/98 to 10/1/99 to 10/1/98 to
3/31/00 9/30/99 12/31/98 3/31/00 9/30/99
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*Shares Issued and Redeemed
Class A:
Sold 156,341,710 207,642,217 275,726,040 292,401 1,370,344
Issued for acquisitions** -- -- -- -- --
Issued for distributions reinvested 3,928,520 4,502,460 7,004,723 305,813 617,466
Redeemed (157,504,786) (205,252,197) (261,823,090) (1,616,278) (3,133,789)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in Class A shares
outstanding 2,765,444 6,892,480 20,907,673 (1,018,064) (1,145,979)
============= ============= ============= ============= =============
Class B:
Sold 1,963,064 2,740,803 2,414,995 40,238 107,492
Issued for acquisition** -- -- -- -- --
Issued for distributions reinvested 55,414 36,167 30,219 6,057 11,013
Redeemed (2,044,354) (1,619,923) (1,217,975) (70,898) (90,301)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in Class B shares
outstanding (25,876) 1,157,047 1,227,239 (24,603) 28,204
============= ============= ============= ============= =============
** See Note 7
See notes to financial statements
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS
-----------------------------------------------------------------------------------------------------
INVESTMENT GRADE INCOME
---------------------------- ----------------------------
10/1/99 to 10/1/98 to 10/1/99 to 10/1/98 to
3/31/00 9/30/99 3/31/00 9/30/99
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
*Shares Issued and Redeemed
Class A:
Sold 467,754 1,100,406 3,768,435 6,963,528
Issued for acquisitions** -- -- 45,133,723 --
Issued for distributions reinvested 125,386 247,887 3,457,423 6,527,820
Redeemed (649,788) (1,001,822) (10,308,977) (12,582,818)
------------- ------------- ------------- -------------
Net increase (decrease) in Class A shares
outstanding (56,648) 346,471 42,050,604 908,530
============= ============= ============= =============
Class B:
Sold 131,276 361,388 977,976 1,776,869
Issued for acquisition** -- -- 1,936,922 --
Issued for distributions reinvested 15,549 26,886 90,013 139,057
Redeemed (125,590) (130,878) (572,794) (534,681)
------------- ------------- ------------- -------------
Net increase (decrease) in Class B shares
outstanding 21,235 257,396 2,432,117 1,381,245
============= ============= ============= =============
** See Note 7
See notes to financial statements
</TABLE>
Notes to Financial Statements
1. Significant Accounting Policies--First Investors Cash Management
Fund, Inc. ("Cash Management Fund"), First Investors Government Fund,
Inc. ("Government Fund"), First Investors Investment Grade Fund
("Investment Grade Fund"), a series of First Investors Series Fund
("Series Fund"), and First Investors Fund For Income, Inc. ("Income
Fund") are registered under the Investment Company Act of 1940 (the
"1940 Act") as diversified, open-end management investment companies.
Each Fund accounts separately for the assets, liabilities and operations
of the Fund. Series Fund offers four additional series which are not
included in this report. 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.
Government Fund seeks to achieve a significant level of current income
which is consistent with security and liquidity of principal.
Investment Grade Fund seeks to generate a maximum level of income
consistent with investment in investment grade debt securities.
Income Fund primarily seeks high current income and secondarily seeks
capital appreciation.
On September 29, 1999, the Board of Directors of the Cash Management
Fund approved a change in the Fund's fiscal year to September 30.
Previously, the fiscal year-end was December 31.
A. Security Valuation--The Cash Management 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 market 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. With respect to each
of the other Funds, except as provided below, a security listed or
traded on an exchange or the Nasdaq Stock Market is valued at its last
sale price on the exchange or market where the security is principally
traded, and lacking any sales, the security is valued at the mean
between the closing bid and asked prices. Securities traded in the
over-the-counter ("OTC") market (including securities listed on
exchanges whose primary market is believed to be OTC) are valued at the
mean between the last bid and asked prices based upon quotes furnished
by a market maker for such securities. Securities may also be priced by
a pricing service. The pricing service uses quotations obtained from
investment dealers or brokers, information with respect to market
transactions in comparable securities, and other available information
in determining values. Short-term debt securities that mature in 60 days
or less are valued at amortized cost. Securities for which market
quotations are not readily available, and any other assets are valued on
a consistent basis at fair value as determined in good faith by or under
the supervision of the Fund's officers in a manner specifically
authorized by the Board of Directors/Trustees.
B. Federal Income Taxes--No provision has been made for federal income
taxes on net income or capital gains since it is the policy of each Fund
to continue to comply with the special provisions of the Internal
Revenue Code applicable to investment companies, and to make sufficient
distributions of income and capital gains (in excess of any available
capital loss carryovers) to relieve it from all, or substantially all,
federal income taxes. At September 30, 1999, capital loss carryovers
were as follows:
<TABLE>
<CAPTION>
Year Capital Loss Carryovers Expire
---------------------------------------------------------------------
Fund Total 2001 2002 2003 2004 2005 2007
---- ----- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Government $19,777,797 $ -- $19,360,488 $ -- $ 204,508 $ -- $212,801
Income 11,455,290 1,762,042 390,105 805,124 4,514,945 3,055,280 927,794
</TABLE>
C. Distributions to Shareholders--The Cash Management Fund declares
distributions daily and pays distributions monthly. Distributions are
declared from the total of net investment income plus or minus all
realized short-term gains and losses on investments. Dividends from net
investment income of each of the other Funds are generally declared
daily and paid monthly and distributions from net realized capital
gains, if any, are generally declared and paid annually. Income
dividends and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for mortgage-backed securities, capital loss carryforwards
and post-October capital losses.
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 reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
accounting period. Actual results could differ from those estimates.
E. Expense Allocation--Expenses directly charged or attributable to a
Fund are paid from the assets of that Fund. General expenses of Series
Fund are allocated among and charged to the assets of each Fund in
Series Fund on a fair and equitable basis, which may be based on the
relative assets of each Fund or the nature of the services performed and
relative applicability to each Fund.
F. Other--Security transactions are accounted for on the date the
securities are purchased or sold. Cost is determined, and gains and
losses are based, on the identified cost basis for both financial
statement and federal income tax purposes. Dividend income is recorded
on the ex-dividend date. Shares of stock received in lieu of cash
dividends on certain preferred stock holdings of Income Fund are
recognized as dividend income and recorded at the market value of the
shares received. During the six months ended March 31, 2000, Income Fund
recognized $617,763 from these taxable "pay-in-kind" distributions.
Interest income and estimated expenses are accrued daily. For the six
months ended March 31, 2000, the Bank of New York, custodian for the
Funds, has provided total credits in the amount of $30,614 against
custodian charges based on the uninvested cash balances of the Funds.
2. Security Transactions--For the six months ended March 31, 2000,
purchases and sales (including pay-downs on Government Fund) of
securities and long-term U.S. Government obligations (excluding U.S.
Treasury bills, short-term U.S. Government obligations and short-term
securities) were as follows:
<TABLE>
<CAPTION>
Long-Term U.S.
Securities Government Obligations
---------------------------- ----------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases from Sales Purchases from Sales
---- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Government $ -- $ -- $36,006,337 $47,599,666
Investment Grade 19,318,345 17,088,826 1,798,516 3,544,645
Income 39,322,295 55,090,483 -- --
</TABLE>
At March 31, 2000, aggregate cost and net unrealized depreciation of
securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Fund Cost Appreciation Depreciation Appreciation
---- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Government $132,798,137 $ 184,766 $ 3,420,129 ($3,235,363)
Investment Grade 55,885,507 206,994 2,001,846 (1,794,852)
Income 615,038,483 11,103,400 79,314,811 (68,211,411)
</TABLE>
3. Advisory Fee and Other Transactions With Affiliates--Certain officers
and directors/trustees of the Funds are officers and directors of the
Funds' investment adviser, First Investors Management Company, Inc.
("FIMCO"), its underwriter, First Investors Corporation ("FIC"), its
transfer agent, Administrative Data Management Corp. ("ADM") and/or
First Financial Savings Bank, S.L.A. ("FFS"), custodian of the Funds'
Individual Retirement Accounts. Directors/trustees of the Funds who are
not "interested persons" of the Funds as defined in the 1940 Act are
remunerated by the Funds. For the six months ended March 31, 2000, total
directors/trustees fees accrued by the Funds amounted to $18,000.
The Investment Advisory Agreements provide as compensation to FIMCO an
annual fee, payable monthly, at the following rates:
Cash Management Fund--.50% of the Fund's average daily net assets.
Government Fund--1% on the first $200 million of the Fund's average
daily net assets, .75% on the next $300 million, declining by .03% on
each $250 million thereafter, down to .66% on average daily net assets
over $1 billion. FIMCO has voluntarily waived 40% of the 1% annual fee
on the first $200 million of Government Fund's average daily net assets
for the six months ended March 31, 2000.
Investment Grade Fund--.75% on the first $300 million of the Fund's
average daily net assets, .72% on the next $200 million, .69% on the
next $250 million, and .66% on average daily net assets over $750
million. FIMCO waived 20% of the .75% annual fee on the first $300
million of the Fund's average daily net assets for the six months ended
March 31, 2000.
Income Fund--.75% on the first $250 million of the Fund's average daily
net assets, declining by .03% on each $250 million thereafter, down to
.66% on average daily net assets over $750 million.
For the six months ended March 31, 2000, total advisory fees accrued to
FIMCO by the Funds were $2,845,764 of which $315,921 was waived. In
addition, FIMCO assumed $309,552 of the Cash Management and Investment
Grade Funds expenses.
For the six months ended March 31, 2000, FIC, as underwriter, received
$573,506 in commissions from the sale of shares of the Funds after
allowing $64,138 to other dealers. Shareholder servicing costs included
$684,374 in transfer agent fees accrued to ADM and $119,539 in IRA
custodian fees accrued to FFS. For the six months ended March 31, 2000,
FIC received contingent deferred sales charges from the redemption of
Class B shares of the Cash Management Fund in the amount of $17,460. 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 March 31, 2000, FIC received $10,542 in
distribution plan fees from the Cash Management Fund, after waiving
$3,513 (or 25% of the fee). Pursuant to Distribution Plans adopted under
Rule 12b-1 of the 1940 Act, each of the other Funds is authorized to pay
FIC a fee up to .30% of the average daily net assets of the Class A
shares and 1% of the average daily net assets of the Class B shares on
an annual basis each year, payable monthly. The fee consists of a
distribution fee and a service fee. The service fee is paid for the
ongoing servicing of clients who are shareholders of that Fund.
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 sold to qualified institutional investors. At March
31, 2000, Investment Grade Fund held three 144A securities with an
aggregate value of $2,203,516 representing 4.0% of the Fund's net assets
and Income Fund held sixteen 144A securities with an aggregate value of
$32,181,153 representing 5.8% of the Fund's net assets. These securities
are valued as set forth in Note 1A.
5. High Yield Credit Risk--The investments of Income Fund in high yield
securities whether rated or unrated may be considered speculative and
subject to greater market fluctuations and risks of loss of income and
principal than lower yielding, higher rated, fixed income securities.
The risk of loss due to default by the issuer may be significantly
greater for holders of high yielding securities, because such securities
are generally unsecured and are often subordinated to other creditors of
the issuer.
6. Capital--At March 31, 2000, paid-in capital of the Cash Management
Fund amounted to $172,753,813. The Fund sells two classes of shares,
Class A and Class B, each without an initial sales charge. Class B
shares 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 and 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 FIC as underwriter of
the Funds. Each of the other Funds also sells two classes of shares,
Class A and Class B, each with a public offering price that reflects
different sales charges and expense levels. Class A shares are sold with
an initial sales charge of up to 6.25% of the amount invested and
together with the Class B shares are subject to distribution plan fees
as described in Note 3. Class B shares are sold without an initial sales
charge, but are generally subject to a contingent deferred sales charge
which declines in steps from 4% to 0% over a six-year period. Class B
shares automatically convert into Class A shares after eight years.
Realized and unrealized gains or losses, investment income and expenses
(other than distribution plan fees) are allocated daily to each class of
shares based upon the relative proportion of net assets to each class.
Of the 5,000,000,000 shares originally authorized by the Cash Management
Fund, the Fund has designated 2,500,000,000 shares as Class A and
2,500,000,000 shares as Class B. Of the 1,000,000,000 shares originally
authorized by both Government Fund and Income Fund, each Fund has
designated 500,000,000 shares as Class A and 500,000,000 shares as Class
B. Series Fund, of which Investment Grade Fund is a series, has
established an unlimited number of shares of beneficial interest for
both Class A and Class B shares.
7. Reorganizations--On March 14, 2000, the First Investors Fund For
Income, Inc. ("Income Fund") acquired all of the net assets of the First
Investors High Yield Fund, Inc. ("High Yield Fund") and the Executive
Investors High Yield Fund ("Executive High Yield Fund") in connection
with tax-free reorganizations that were approved by the High Yield Fund
and Executive High Yield Fund shareholders. The Income Fund issued
41,380,062 Class A shares and 1,936,922 Class B shares to the High Yield
Fund and 3,753,661 Class A shares to the Executive High Yield Fund in
connection with the reorganizations. In return, it received net assets
of $167,350,876 from the High Yield Fund (which included $21,301,059 of
unrealized depreciation and $10,784,903 in accumulated net realized
losses) and $14,504,472 in net assets from the Executive High Yield Fund
which included $1,748,230 in unrealized depreciation and $256,977 in
accumulated net realized losses). The Income Fund's shares were issued
at their current net asset values as of the date of the reorganizations.
The aggregate net assets of the Income Fund, High Yield Fund and
Executive High Yield Fund immediately before the acquisition were
$575,064,172 consisting of Income Fund $393,208,824 ($377,900,590 Class
A and $15,308,234 Class B), High Yield Fund $167,350,876 ($159,896,155
Class A and $7,454,721 Class B) and Executive High Yield Fund
$14,504,472, respectively.
Financial Highlights
FIRST INVESTORS
The following table sets forth the per share operating performance data
for a share outstanding, total return, ratios to average net assets and
other supplemental data for each period indicated.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Asset
Value Net Net Realized Value
---------- Investment and Unrealized Total from Net Net ------------
Beginning Income Gain (Loss) on Investment Investment Realized Total End of
of Period (Loss) Investments Operations Income Gain Distributions Period
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH MANAGEMENT FUND
--------------------
Class A
-------
1995(d) $ 1.00 $.053 $ -- $.053 $.053 $ -- $.053 $ 1.00
1996(d) 1.00 .048 -- .048 .048 -- .048 1.00
1997(d) 1.00 .049 -- .049 .049 -- .049 1.00
1998(d) 1.00 .048 -- .048 .048 -- .048 1.00
1999(c) 1.00 .032 -- .032 .032 -- .032 1.00
2000(f) 1.00 .025 -- .025 .025 -- .025 1.00
Class B
-------
1995(b) $ 1.00 $.044 $ -- $.044 $.044 $ -- $.044 $ 1.00
1996(d) 1.00 .040 -- .040 .040 -- .040 1.00
1997(d) 1.00 .041 -- .041 .041 -- .041 1.00
1998(d) 1.00 .041 -- .041 .041 -- .041 1.00
1999(c) 1.00 .027 -- .027 .027 -- .027 1.00
2000(f) 1.00 .021 -- .021 .021 -- .021 1.00
---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
---------------
Class A
-------
1995(d) $10.50 $ .71 $ .82 $1.53 $ .72 $ -- $ .72 $11.31
1996(d) 11.31 .68 (.30) .38 .64 -- .64 11.05
1997(d) 11.05 .69 .21 .90 .66 -- .66 11.29
1998(a) 11.29 .49 .18 .67 .47 -- .47 11.49
1999(e) 11.49 .63 (.58) .05 .61 -- .61 10.93
2000(f) 10.93 .33 (.19) .14 .32 -- .32 10.75
Class B
-------
1995(b) $10.52 $ .63 $ .80 $1.43 $ .64 $ -- $ .64 $11.31
1996(d) 11.31 .60 (.31) .29 .56 -- .56 11.04
1997(d) 11.04 .61 .21 .82 .59 -- .59 11.27
1998(a) 11.27 .42 .19 .61 .40 -- .40 11.48
1999(e) 11.48 .54 (.57) (.03) .53 -- .53 10.92
2000(f) 10.92 .29 (.18) .11 .28 -- .28 10.75
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return* End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH MANAGEMENT FUND
--------------------
Class A
-------
1995(d) 5.42 $129 .70 5.29 1.18 4.81 --
1996(d) 4.89 134 .70 4.78 1.19 4.29 --
1997(d) 4.98 140 .77 4.87 1.19 4.45 --
1998(d) 4.92 160 .80 5.00 1.14 4.66 --
1999(c) 3.29 158 .80+ 4.33+ 1.14+ 3.99+ --
2000(f) 2.53 170 .80+ 5.00+ 1.13+ 4.67+ --
Class B
-------
1995(b) 4.46 $ .1 1.45+ 4.54+ 1.93+ 4.06+ --
1996(d) 4.11 .1 1.45 4.03 1.94 3.54 --
1997(d) 4.20 .3 1.52 4.12 1.94 3.70 --
1998(d) 4.14 1 1.55 4.25 1.89 3.91 --
1999(c) 2.72 2 1.55+ 3.58+ 1.89+ 3.24+ --
2000(f) 2.15 3 1.55+ 4.25+ 1.88+ 3.92+ --
------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
---------------
Class A
-------
1995(d) 14.98 $217 1.38 6.50 1.61 6.27 163
1996(d) 3.51 187 1.39 6.15 1.64 5.90 121
1997(d) 8.40 170 1.34 6.16 1.64 5.86 134
1998(a) 6.03 161 1.28+ 5.71+ 1.62+ 5.37+ 62
1999(e) .50 140 1.19 5.58 1.57 5.20 99
2000(f) 1.34 127 1.17+ 6.05+ 1.56+ 5.66+ 21
Class B
-------
1995(b) 13.94 $ 1 2.13+ 5.75+ 2.37+ 5.51+ 163
1996(d) 2.73 1 2.09 5.45 2.34 5.20 121
1997(d) 7.60 2 2.04 5.46 2.34 5.16 134
1998(a) 5.54 3 1.98+ 5.01+ 2.32+ 4.67+ 62
1999(e) (.25) 3 1.93 4.84 2.31 4.46 99
2000(f) 1.04 3 1.92+ 5.30+ 2.31+ 4.91+ 21
------------------------------------------------------------------------------------------------------------------
</TABLE>
Financial Highlights
FIRST INVESTORS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Asset
Value Net Net Realized Value
---------- Investment and Unrealized Total from Net Net ------------
Beginning Income Gain (Loss) on Investment Investment Realized Total End of
of Period (Loss) Investments Operations Income Gain Distributions Period
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT GRADE FUND
---------------------
Class A
-------
1995(d) $ 9.24 $ .64 $1.10 $1.74 $ .64 $ -- $ .64 $10.34
1996(d) 10.34 .62 (.39) .23 .62 .02 .64 9.93
1997(d) 9.93 .62 .25 .87 .61 .03 .64 10.16
1998(a) 10.16 .46 .36 .82 .45 -- .45 10.53
1999(e) 10.53 .57 (.79) (.22) .58 .07 .65 9.66
2000(f) 9.66 .29 (.22) .07 .29 .01 .30 9.43
Class B
-------
1995(b) $ 9.26 $ .54 $1.10 $1.64 $ .55 $ -- $ .55 $10.35
1996(d) 10.35 .55 (.39) .16 .55 .02 .57 9.94
1997(d) 9.94 .55 .26 .81 .55 .03 .58 10.17
1998(a) 10.17 .41 .36 .77 .40 -- .40 10.54
1999(e) 10.54 .50 (.79) (.29) .51 .07 .58 9.67
2000(f) 9.67 .26 (.23) .03 .25 .01 .26 9.44
---------------------------------------------------------------------------------------------------------------------------------
INCOME FUND
-----------
Class A
-------
1995(d) $ 3.81 $ .38 $ .30 $ .68 $ .36 $ -- $ .36 $ 4.13
1996(d) 4.13 .39 .14 .53 .37 -- .37 4.29
1997(d) 4.29 .38 .14 .52 .38 -- .38 4.43
1998(a) 4.43 .29 (.26) .03 .29 -- .29 4.17
1999(e) 4.17 .40 (.27) .13 .38 -- .38 3.92
2000(f) 3.92 .16 (.12) .04 .19 -- .19 3.77
Class B
-------
1995(b) $ 3.81 $ .31 $ .33 $ .64 $ .32 $ -- $ .32 $ 4.13
1996(d) 4.13 .38 .12 .50 .35 -- .35 4.28
1997(d) 4.28 .34 .15 .49 .35 -- .35 4.42
1998(a) 4.42 .26 (.26) -- .26 -- .26 4.16
1999(e) 4.16 .37 (.27) .10 .36 -- .36 3.90
2000(f) 3.90 .16 (.13) .03 .18 -- .18 3.75
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return* End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT GRADE FUND
---------------------
Class A
-------
1995(d) 19.40 $ 50 1.10 6.43 1.43 6.10 27
1996(d) 2.39 46 1.11 5.96 1.42 5.65 22
1997(d) 9.14 45 1.11 6.18 1.43 5.86 34
1998(a) 8.29 50 1.10+ 6.02+ 1.40+ 5.72+ 49
1999(e) (2.21) 49 1.10 5.70 1.38 5.42 18
2000(f) 0.73 47 1.10+ 6.17+ 1.34+ 5.93+ 39
Class B
-------
1995(b) 18.08 $ 1 1.80+ 5.73+ 2.13+ 5.40+ 27
1996(d) 1.64 2 1.81 5.26 2.12 4.95 22
1997(d) 8.40 3 1.81 5.48 2.13 5.16 34
1998(a) 7.73 5 1.80+ 5.32+ 2.10+ 5.02+ 49
1999(e) (2.90) 7 1.80 5.00 2.08 4.72 18
2000(f) 0.36 7 1.80+ 5.47+ 2.04+ 5.23+ 39
------------------------------------------------------------------------------------------------------------------
INCOME FUND
-----------
Class A
-------
1995(d) 18.54 $425 1.18 9.53 N/A N/A 33
1996(d) 13.40 432 1.16 9.27 N/A N/A 30
1997(d) 12.62 439 1.15 8.63 N/A N/A 45
1998(a) .49 410 1.27+ 8.68+ N/A N/A 28
1999(e) 3.13 389 1.29 9.71 N/A N/A 28
2000(f) 1.04 532 1.27+ 9.24+ N/A N/A 10
Class B
-------
1995(b) 17.46 $ 2 1.92+ 8.78+ N/A N/A 33
1996(d) 12.51 3 1.86 8.57 N/A N/A 30
1997(d) 11.95 6 1.85 7.93 N/A N/A 45
1998(a) (.06) 9 1.97+ 7.98+ N/A N/A 28
1999(e) 2.29 14 1.99 9.01 N/A N/A 28
2000(f) 0.73 22 1.97+ 8.54+ N/A N/A 10
------------------------------------------------------------------------------------------------------------------
* Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed (Note 3).
(a) For the period January 1, 1998 to September 30, 1998.
(b) For the period January 12, 1995 (date Class B shares first offered)
to December 31, 1995.
(c) For the period January 1, 1999 to September 30, 1999.
(d) For the calendar year ended December 31.
(e) For the fiscal year ended September 30.
(f) For the period October 1, 1999 to March 31, 2000.
See notes to financial statements
</TABLE>
Independent Auditors' Report
To the Shareholders and Boards of Directors/Trustees of
First Investors Cash Management Fund, Inc.
First Investors Government Fund, Inc.
First Investors Investment Grade Fund
First Investors Fund For Income, Inc.
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the First Investors Cash
Management Fund, Government Fund, Investment Grade Fund (a series of
First Investors Series Fund), and Fund For Income as of March 31, 2000,
the related statement of operations and the statement of changes in net
assets 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 March 31, 2000, by correspondence
with the custodian and brokers. Where brokers have not replied to our
confirmation requests, we have carried out other appropriate auditing
procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the First Investors Cash Management Fund,
Government Fund, Investment Grade Fund, and Fund For Income at March 31,
2000, and the results of their operations, changes in their net assets
and financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 28, 2000
FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS
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
George V. Ganter
Vice President
Nancy W. Jones
Vice President
Michael J. O'Keefe
Vice President
Clark D. Wagner
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Mark S. Spencer
Assistant Treasurer
Carol Lerner Brown
Assistant Secretary
FIRST INVESTORS TAXABLE BOND AND MONEY MARKET FUNDS
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
The Cash Management 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 the Fund will be able to do so or achieve its investment
objective. An investment in the Fund is neither insured nor guaranteed
by the U.S. Government.
It is the Funds' practice to mail only one copy of their 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.
