<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS FUND FOR INCOME, INC.
Dear Investor:
The current economic expansion extended to its fifth year in 1996. The economy
grew by 3.4% during the year with the core rate of consumer price inflation
increasing 2.6%, its slowest pace since the mid-1960's. The combination of
moderate growth and low inflation provided a positive background for the
financial markets. The broad stock market averages made new highs during 1996
while long-term interest rates moved somewhat higher during the year. Besides
the economy, the markets benefited from strong demand for U.S. securities.
Individual investors bought a record amount of stock mutual funds, while foreign
investors bought a record amount of U.S. Treasury bonds.
For the second consecutive year, the high yield bond market outperformed other
domestic fixed income markets. The favorable economic climate helped many high
yield issuers improve their credit profiles during the year. Additionally, the
strong equity markets provided an important source of capital to many companies.
A low default rate and several credit-enhancing merger and acquisition (M&A)
events also helped the market. Finally, continued net inflows to the high yield
asset class from mutual funds and institutional investors seeking to improve on
low Treasury and investment grade yields easily absorbed near-record issuance.
For 1996, First Investors Fund For Income Class A shares posted a total return
on a net asset value basis of 13.4% compared with 13.7% for the average of all
high yield funds as measured by Lipper Analytical Services, Inc. Class B shares
posted a total return of 12.5%. The ten year Treasury bond, by contrast,
produced a meager .1% return during the year. One factor aiding your Fund's
performance in 1996 was M&A activity. A consolidation involving two of the
companies in the United Kingdom cable/telephone sector increased investor
interest and improved credit profiles. Additionally, PanAmSat, one of the larger
investments in the Fund, agreed to merge with a satellite subsidiary of Hughes
Aerospace. Corporate restructuring also aided performance. The proposed split of
Waban into two companies, the orderly liquidation of Horizon Cellular and the
reorganization of Mediq were examples of transactions which resulted in bond
tenders at premium prices.
While the overall market had a good tone in 1996, the price decline for bonds of
companies which failed to meet expectations was swift and extreme. While the
Fund avoided defaults during the year, the collapse of a marketing and
distribution partnership among CAI Wireless, NYNEX and Bell Atlantic led to
severe losses in the CAI position. Worse than expected results at Riverwood
International also hurt Fund performance. Finally, moderate underperformance by
the U.S. cable sector served as a drag on results.
Investors who buy bonds funds -- whether for income or total return -- should be
aware that the value of their investment fluctuates as interest rates change.
For example, a 1% increase in yield on a ten year bond results in roughly a 7%
decrease in that bond's price. In each of the last five years, ten year Treasury
bond yields have moved more than 1%. In addition, the value of a fund can
fluctuate based on changes in the credit quality of the bonds which it holds. In
particular, high yield funds invest in lower-rated debt obligations which are
more sensitive than higher-rated investments to adverse
1
<PAGE>
PORTFOLIO MANAGER'S LETTER (continued)
FIRST INVESTORS FUND FOR INCOME, INC.
economic changes or individual corporate developments, and thus can be subject
to a higher incidence of default. Investors should be aware of these risks and
recognize that successful investing generally requires a long-term commitment to
the market.
While the strong market performance of 1995 and 1996 will be difficult to match,
we believe that the overall fundamentals of the high yield market remain
attractive and that default rates will remain low. Continued performance in
excess of the market's weighted yield to maturity will depend on continued
upgrades through credit improvement and acquisitions. We further believe that
1997 will continue to be a "bond-picker's" market, where poor credit choices are
difficult to exit before severe price erosion occurs. Our research efforts in
the coming year will focus on trying to find those credits which will benefit
from continued consolidation, deleveraging or growth.
Looking forward, the factors that benefited the markets in 1996 appear likely to
continue in 1997: moderate growth, low inflation, and strong demand for
financial assets. A significant risk to the market is that inflation may
increase due to the length of economic expansion. This could lead the Federal
Reserve to raise interest rates, hurting both the bond and stock markets. On the
other hand, the markets may be positively surprised by legislation from the
President and Congress to eliminate the federal budget deficit. We will continue
to be alert to events that may affect the value of your investments.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Nancy W. Jones
Vice President
and Portfolio Manager
January 31, 1997
2
<PAGE>
CUMULATIVE PERFORMANCE INFORMATION
FIRST INVESTORS FUND FOR INCOME, INC.
Comparison of change in value of $10,000 investment in the First Investors Fund
For Income, Inc. (Class A shares) and the First Boston High Yield Index.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND FOR INCOME FIRST BOSTON HIGH YIELD INDEX
<S> <C> <C> <C>
Jan-87 $9,375 $10,000
Dec-87 9,247 12,319
Dec-88 10,520 14,001
Dec-89 9,692 14,054
Dec-90 8,025 13,157
Dec-91 11,463 18,914
Dec-92 13,378 22,065
Dec-93 15,794 26,237
Dec-94 15,886 25,983
Dec-95 18,831 30,498
Dec-96 21,366 34,286
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
Class A shares
One Year 13.40% 6.20%
Five Years 13.25% 11.78%
Ten Years 8.59% 7.88%
S.E.C. 30-Day Yield 6.84%
Class B shares
One Year 12.51% 8.06%
Since Inception
(1/12/95) 15.22% 12.83%
S.E.C. 30-Day Yield 6.61%
</TABLE>
THE GRAPH COMPARES A $10,000 INVESTMENT IN THE FIRST INVESTORS FUND FOR INCOME,
INC. (CLASS A SHARES) BEGINNING 1/1/87 WITH A THEORETICAL INVESTMENT IN THE
FIRST BOSTON HIGH YIELD INDEX. THE FIRST BOSTON HIGH YIELD INDEX IS DESIGNED TO
MEASURE THE PERFORMANCE OF THE HIGH YIELD BOND MARKET. THE INDEX CONSISTS OF 852
DIFFERENT ISSUES, 706 OF WHICH ARE CASH PAY, 127 OF WHICH ARE ZERO-COUPON, 9 OF
WHICH ARE STEP BONDS, 1 IS A PAYMENT-IN-KIND BOND AND THE REMAINING 9 ARE IN
DEFAULT. THE BONDS INCLUDED IN THE INDEX HAVE AN AVERAGE LIFE OF 7.8 YEARS, AN
AVERAGE MATURITY OF 7.8 YEARS, AN AVERAGE DURATION OF 4.2 YEARS AND AN AVERAGE
COUPON OF 10.6%. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN THIS INDEX. IN
ADDITION, THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES. FOR PURPOSES
OF THE GRAPH AND THE ACCOMPANYING TABLE, UNLESS OTHERWISE INDICATED, IT HAS BEEN
ASSUMED THAT THE MAXIMUM SALES CHARGE WAS DEDUCTED FROM THE INITIAL $10,000
INVESTMENT IN THE FUND AND ALL DIVIDENDS AND DISTRIBUTIONS WERE REINVESTED.
CLASS B SHARES PERFORMANCE MAY BE GREATER THAN OR LESS THAN THAT SHOWN IN THE
LINE GRAPH ABOVE BASED ON DIFFERENCES IN SALES LOADS AND FEES PAID BY
SHAREHOLDERS INVESTING IN THE DIFFERENT CLASSES.
* AVERAGE ANNUAL TOTAL RETURN FIGURES (FOR THE PERIOD ENDED 12/31/96) INCLUDE
THE REINVESTMENT OF ALL DIVIDENDS AND DISTRIBUTIONS. "N.A.V. ONLY" RETURNS ARE
CALCULATED WITHOUT SALES CHARGES. THE CLASS A "S.E.C. STANDARDIZED" RETURNS
SHOWN ARE BASED ON THE MAXIMUM SALES CHARGE OF 6.25% (PRIOR TO 7/1/93 AND
12/29/89, THE MAXIMUM SALES CHARGES WERE 6.9% AND 8.5%, RESPECTIVELY). THE
CLASS B "S.E.C. STANDARDIZED" RETURNS ARE ADJUSTED FOR THE APPLICABLE DEFERRED
SALES CHARGE (MAXIMUM OF 4% IN THE FIRST YEAR). RESULTS REPRESENT PAST
PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. THE UNUSUALLY
HIGH CURRENT YIELDS OFFERED REFLECT THE SUBSTANTIAL RISKS ASSOCIATED WITH
INVESTMENTS IN HIGH YIELD BONDS. THE ISSUERS OF THE BONDS PAY HIGHER INTEREST
RATES BECAUSE THEY HAVE A GREATER LIKELIHOOD OF FINANCIAL DIFFICULTY, WHICH
COULD RESULT IN THEIR INABILITY TO REPAY THE BONDS FULLY WHEN DUE. PRICES OF
HIGH YIELD BONDS ARE ALSO SUBJECT TO GREATER FLUCTUATIONS. THE FUND WAS CLOSED
TO NEW INVESTMENTS FROM 11/9/90 TO 7/27/92. FIRST BOSTON HIGH YIELD INDEX
FIGURES FROM CS FIRST BOSTON AND ALL OTHER FIGURES FROM FIRST INVESTORS
MANAGEMENT COMPANY, INC.
3
<PAGE>
PORTFOLIO COMPOSITION
FIRST INVESTORS FUND FOR INCOME, INC.
The dollar weighted average of credit ratings of all bonds held by the Fund
during the 1996 fiscal year and the dollar weighted average of the total of the
Fund's investments in zero coupon bonds during the 1996 fiscal year, computed on
a monthly basis, are set forth below. This information reflects the average
composition of the Fund's assets during the 1996 fiscal year and is not
necessarily representative of the Fund as of the end of its 1996 fiscal year,
the current fiscal year or at any other time in the future.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Comparable Quality of
Rated by Unrated Securities to
Moody's Bonds Rated by Moody's
- -------------------------------------------------------
<S> <C> <C>
Aaa 1.02% 0.00%
A2 0.10 0.00
Baa2 1.01 0.00
Baa3 0.49 0.00
Ba1 0.71 0.27
Ba2 1.30 0.05
Ba3 13.11 0.17
B1 24.70 0.00
B2 21.72 0.00
B3 18.43 0.00
Caa 3.05 3.04
Ca 0.01 0.00
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Zero
Coupon
Bonds 10.68%
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS FUND FOR INCOME, INC.
December 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--86.1%
AEROSPACE/DEFENSE--.3%
$ 1,250M K & F Industries, Inc., 10.375%, 2004 $ 1,318,750 $ 30
- ---------------------------------------------------------------------------------------------
AGRICULTURAL PRODUCTS--1.1%
4,500M Terra Industries, Inc., 10.50%, 2005 4,882,500 112
- ---------------------------------------------------------------------------------------------
APPAREL/TEXTILES--2.4%
2,000M Dan River, Inc., 10.125%, 2003 2,010,000 46
1,200M Pillowtex Corp., 10%, 2006 (Note 4) 1,236,000 28
7,000M Westpoint Stevens, Inc., 9.375%, 2005 7,157,500 165
- ---------------------------------------------------------------------------------------------
10,403,500 239
- ---------------------------------------------------------------------------------------------
AUTOMOTIVE--3.8%
2,800M Collins & Aikman Products Co., 11.50%, 2006 3,052,000 70
2,000M Exide Corp., 10%, 2005 2,070,000 48
4,000M Lear Seating, Inc., 11.25%, 2000 4,105,000 94
2,260M Safelite Glass Corp., 9.875%, 2006 (Note 4) 2,316,500 53
4,400M SPX Corp., 11.75%, 2002 4,917,000 113
- ---------------------------------------------------------------------------------------------
16,460,500 378
- ---------------------------------------------------------------------------------------------
BUILDING MATERIALS--3.7%
4,500M American Standard Corp., 11.375%, 2004 4,826,250 111
4,500M American Standard Corp., 0% - 10.50%, 1998 4,213,125 97
4,950M Triangle Pacific Corp., 10.50%, 2003 5,222,250 120
1,630M Waxman USA Inc., 11.125%, 2001 1,630,000 37
- ---------------------------------------------------------------------------------------------
15,891,625 365
- ---------------------------------------------------------------------------------------------
CHEMICALS--6.8%
4,200M Harris Chemical North America, Inc., 10.25%, 2001 4,378,500 101
6,125M Harris Chemical North America, Inc., 10.75%, 2003 6,354,687 146
6,600M Rexene Corp., 11.75%, 2004 7,326,000 168
6,000M Synthetic Industries, Inc., 12.75%, 2002 6,615,000 152
4,500M Texas Petrochemicals Corp., 11.125%, 2006 4,837,500 111
- ---------------------------------------------------------------------------------------------
29,511,687 678
- ---------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS FUND FOR INCOME, INC.
December 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER NON-DURABLES--.9%
$ 1,000M E & S Holdings, Inc., 10.375%, 2006 (Note 4) $ 1,045,000 $ 24
2,000M Hines Horticulture, Inc., 11.75%, 2005 2,130,000 49
600M Plastic Containers, Inc., 10%, 2006 (Note 4) 612,000 14
- ---------------------------------------------------------------------------------------------
3,787,000 87
- ---------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--.4%
1,500M Herff Jones, Inc., 11%, 2005 1,605,000 37
- ---------------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--3.8%
10,000M Owens Illinois, Inc., 11%, 2003 11,150,000 256
5,250M Sweetheart Cup Co., Inc., 10.50%, 2003 5,512,500 127
- ---------------------------------------------------------------------------------------------
16,662,500 383
- ---------------------------------------------------------------------------------------------
DURABLE GOODS MANUFACTURING--2.6%
1,000M Amtrol Acquisition, Inc., 10.625%, 2006 (Note 4) 1,030,000 24
2,500M Day International Group, Inc., 11.125%, 2005 2,625,000 60
4,275M Fairfield Manufacturing, Inc., 11.375%, 2001 4,467,375 103
4,000M RACI Acquisition Corp., 10%, 2003 (Note 4) 3,370,000 77
- ---------------------------------------------------------------------------------------------
11,492,375 264
- ---------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--.9%
3,650M Essex Group, Inc., 10%, 2003 3,759,500 86
- ---------------------------------------------------------------------------------------------
ELECTRONICS/INSTRUMENTS/COMPONENTS--.7%
3,000M Advanced Micro Devices, Inc., 11%, 2003 3,247,500 75
- ---------------------------------------------------------------------------------------------
ENERGY--3.9%
3,500M Deeptech International, Inc., 12%, 2000 3,745,000 86
3,500M Falcon Drilling Co., Inc., 9.75%, 2001 3,605,000 83
5,000M KCS Energy Inc., 11%, 2003 5,425,000 125
3,900M Maxus Energy Corp., 11.50%, 2015 4,090,125 94
- ---------------------------------------------------------------------------------------------
16,865,125 388
- ---------------------------------------------------------------------------------------------
FINANCIAL--.7%
2,800M Terra Nova Holdings, PLC, 10.75%, 2005 3,164,000 73
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
FOOD/BEVERAGE/TOBACCO--1.5%
$ 1,000M Delta Beverage Group, Inc., 9.75%, 2003 (Note 4) $ 1,027,500 $ 24
5,000M TLC Beatrice International Holdings, Inc.,
11.50%, 2005 5,312,500 122
- ---------------------------------------------------------------------------------------------
6,340,000 146
- ---------------------------------------------------------------------------------------------
GAMING/LODGING--2.8%
4,000M Casino America, Inc., 12.50%, 2003 3,760,000 86
500M Majestic Star Casino, LLC, 12.75%, 2003 536,250 12
2,500M Player's International, Inc., 10.875%, 2005 2,475,000 57
2,250M Prime Hospitality Corp., 9.25%, 2006 2,278,125 52
3,000M Showboat, Inc., 9.25%, 2008 2,947,500 68
- ---------------------------------------------------------------------------------------------
11,996,875 275
- ---------------------------------------------------------------------------------------------
HEALTHCARE--7.7%
3,000M Genesis Healthcare, Inc., 9.75%, 2005 3,135,000 72
4,400M Healthsouth Rehabilitation Corp., 9.50%, 2001 4,664,000 107
1,000M IMED Corp., 9.75%, 2006 (Note 4) 1,017,500 23
4,500M Integrated Health Services, Inc., 10.75%, 2004 4,781,250 110
3,750M Integrated Health Services, Inc., 10.25%, 2006
(Note 4) 3,918,750 90
6,000M Ornda Healthcorp., 12.25%, 2002 6,420,000 148
2,550M Ornda Healthcorp., 11.375%, 2004 2,945,250 68
2,200M Owens & Minor, Inc., 10.875%, 2006 2,343,000 54
3,800M Tenet Healthcare Corporation, 10.125%, 2005 4,194,250 96
- ---------------------------------------------------------------------------------------------
33,419,000 768
- ---------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--.2%
1,000M Mettler-Toledo, 9.75%, 2006 1,045,000 24
- ---------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY/OFFICE EQUIPMENT--.7%
3,500M Dictaphone Corp., 11.75%, 2005 3,185,000 73
- ---------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--16.9%
3,500M Allbritton Communications Corp., 9.75%, 2007 3,395,000 78
5,000M Bell Cablemedia, PLC, 0% - 11.95%, 2004 4,375,000 101
3,000M CF Cable TV, Inc., 11.625%, 2005 3,502,500 81
5,000M Comcast United Kingdom Cable Corp., 0% - 11.20%,
2007 3,550,000 82
- ---------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS FUND FOR INCOME, INC.
December 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDIA/CABLE TELEVISION (continued)
$ 4,750M Diamond Cable Communications, PLC, 0% - 11.75%,
2005 $ 3,378,438 $ 78
10,550M Echostar Communications Corp., 0% - 12.875%, 2004 8,677,375 199
5,500M Jones Intercable, Inc., 11.50%, 2004 5,981,250 138
5,000M Marcus Cable Operating Co., 0% - 13.50%, 2004 4,087,500 94
4,000M MDC Communications Corp., 10.50%, 2006 4,125,000 95
5,000M PanAmSat Capital Corp., 0% - 11.375%, 2003 4,637,500 107
6,150M Rogers Communication Inc., 10.875%, 2004 6,472,875 149
6,000M SCI Television Corp., 11%, 2005 6,420,000 148
2,000M Sinclair Broadcasting Group, 10%, 2005 2,030,000 47
6,500M Videotron Holdings, PLC, 0% - 11.125%, 2004 5,590,000 129
4,000M Videotron, Ltd., 10.25%, 2002 4,240,000 97
3,000M Young Broadcasting Corp., 10.125%, 2005 3,105,000 71
- ---------------------------------------------------------------------------------------------
73,567,438 1,694
- ---------------------------------------------------------------------------------------------
MINING/METALS--5.5%
5,001M Carbide/Graphite Group, Inc., 11.50%, 2003 5,426,085 125
2,750M Earle M. Jorgensen Co., 10.75%, 2000 2,818,750 65
1,400M Euramax International, PLC, 11.25%, 2006 (Note 4) 1,447,250 33
4,000M Renco Metals, Inc., 11.50%, 2003 4,210,000 97
4,000M Russel Metals, Inc., 10.25%, 2000 4,060,000 93
1,155M UCAR Global Enterprises, Inc., 12%, 2005 1,329,694 31
5,000M Wheeling-Pittsburgh Steel Corp., 9.375%, 2003 4,850,000 111
- ---------------------------------------------------------------------------------------------
24,141,779 555
- ---------------------------------------------------------------------------------------------
MISCELLANEOUS--1.7%
1,800M Allied Waste, North America, 10.25%, 2006 (Note
4) 1,890,000 43
4,000M Monarch Marking Systems, Inc., 12.50%, 2003 4,600,000 106
700M Muzak, L.P./ Muzak Capital Corp., 10%, 2003 715,750 16
- ---------------------------------------------------------------------------------------------
7,205,750 165
- ---------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--7.0%
4,000M Container Corp., 11.25%, 2004 4,330,000 100
4,000M Gaylord Container Corp., 11.50%, 2001 4,240,000 97
4,500M Riverwood International, 10.25%, 2006 4,432,500 102
- ---------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
PAPER/FOREST PRODUCTS (continued)
$ 5,600M S.D. Warren Co., Inc., 12%, 2004 $ 6,048,000 $ 139
5,500M Stone Container Corp., 11.875%, 1998 5,802,500 133
3,000M Stone Container Corp., 9.875%, 2001 3,030,000 70
2,600M Stone Container Corp., 10.75%, 2002 2,743,000 63
- ---------------------------------------------------------------------------------------------
30,626,000 704
- ---------------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--2.3%
4,500M Barnes & Noble, Inc., 11.875%, 2003 4,882,500 112
4,500M Waban, Inc., 11%, 2004 5,040,000 116
- ---------------------------------------------------------------------------------------------
9,922,500 228
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--5.0%
7,300M American Communication Services, Inc., 0% - 13%,
2005 4,307,000 99
2,500M Brooks Fiber Properties, Inc., 0% - 11.875%, 2006
(Note 4) 1,593,750 37
3,300M Brooks Fiber Properties, Inc., 0% - 10.875%, 2006 2,202,750 51
500M CAI Wireless Systems, Inc., 12.25%, 2002 240,000 6
2,600M GST USA Inc., 0% - 13.875%, 2005 1,664,000 38
3,800M InterCel, Inc., 0% - 12%, 2006 2,306,600 53
6,000M Nextlink Communications, Inc., 12.50%, 2006 6,450,000 148
2,800M Paging Network, Inc., 11.75%, 2002 3,010,000 69
- ---------------------------------------------------------------------------------------------
21,774,100 501
- ---------------------------------------------------------------------------------------------
TRANSPORTATION--2.8%
5,700M Eletson Holdings, Inc., 9.25%, 2003 5,742,750 132
3,100M Moran Transportation Co., 11.75%, 2004 3,348,000 77
3,350M Trism, Inc., 10.75%, 2000 3,190,875 73
- ---------------------------------------------------------------------------------------------
12,281,625 282
- ---------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost
$355,549,222) 374,556,629 8,610
- ---------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS FUND FOR INCOME, INC.
December 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
INVESTED
SHARES FOR EACH
OR $10,000 OF
WARRANTS SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--.3%
MEDIA/CABLE TELEVISION--.2%
35,753 *Echostar Communications - Class - "A" $ 786,566 $ 18
- ---------------------------------------------------------------------------------------------
RETAIL - GENERAL MERCHANDISE--.1%
96,129 *Barry's Jewelers, Inc. 216,290 5
- ---------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $2,179,297) 1,002,856 23
- ---------------------------------------------------------------------------------------------
PREFERRED STOCKS--5.3%
CONSUMER STAPLES--1.1%
4,300 Time Warner, Inc., 10.25%, PIK, Series "K" 4,665,500 107
- ---------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--3.4%
77,085 Cablevision Systems Corp., 11.125%, PIK 6,899,108 159
11,485 K-III Communications Corp., 11.625%, PIK, Series
"B" 1,160,034 27
5,519 PanAmSat Capital Corp., 12.75%, PIK 6,765,304 155
- ---------------------------------------------------------------------------------------------
14,824,446 341
- ---------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.8%
100,000 S.D. Warren Co., Inc., 14% 3,650,000 84
- ---------------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost
$21,376,365) 23,139,946 532
- ---------------------------------------------------------------------------------------------
WARRANTS--.4%
GAMING/LODGING--.0%
7,000 *Goldriver Finance Corp., Liquidating Trust 49,000 1
- ---------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.2%
55,390 *Gaylord Container Corp. (expiring 11/1/02) 342,725 8
100,000 *S.D. Warren Co., Inc. (expiring 12/15/06) (Note
4) 500,000 12
- ---------------------------------------------------------------------------------------------
842,725 20
- ---------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C>
RETAIL-GENERAL MERCHANDISE--.0%
65,000 *Cort Business Services Corp. (expiring 9/1/98) $ 146,250 $ 3
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.2%
7,300 *American Communication Services, Inc. (expiring
11/1/05) 620,500 14
- ---------------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $214,858) 1,658,475 38
- ---------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--2.4%
$ 10,000M U.S. Treasury Note, 7.25%, 2004 (cost
$10,884,375) 10,531,250 242
- ---------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.1%
9,930M Brown-Forman Corp., 5.50%, 1/17/97 9,905,727 228
1,000M S.C. Johnson & Son, Inc., 7%, 1/2/97 999,806 23
7,000M Texaco, Inc., 6%, 1/3/97 6,997,666 161
- ---------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$17,903,199) 17,903,199 412
- ---------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $408,107,316) 98.6% 428,792,355 9,857
OTHER ASSETS, LESS LIABILITIES 1.4 6,226,489 143
- ----------------------------------------------------------------------------------------------
NET ASSETS 100.0% $435,018,844 $10,000
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS FUND FOR INCOME, INC.
December 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at value (identified
cost $408,107,316) (Note 1A)................... $ 428,792,355
Cash............................................. 353,937
Receivables:
Interest....................................... $ 7,951,063
Capital shares sold............................ 74,195 8,025,258
--------------
Other assets..................................... 168,816
--------------
Total Assets..................................... 437,340,366
LIABILITIES
Payables:
Cash portion of dividend payable January 15,
1997......................................... 1,274,628
Capital shares redeemed........................ 595,337
Accrued advisory fee............................. 266,030
Accrued expenses................................. 185,527
--------------
Total Liabilities................................ 2,321,522
--------------
NET ASSETS (Note 6):
Class A (100,684,163 shares outstanding)....... 431,678,363
Class B (780,354 shares outstanding)........... 3,340,481 $ 435,018,844
--------------
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in.................................. $1,086,474,710
Undistributed net investment income.............. 5,067,191
Accumulated net realized loss on investment
transactions................................... (677,208,096)
Net unrealized appreciation in value of
investments.................................... 20,685,039
--------------
Total............................................ $ 435,018,844
--------------
--------------
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE - CLASS A................................ $ 4.29
-----
-----
MAXIMUM OFFERING PRICE PER SHARE - CLASS A
($4.29/.9375)*................................. $ 4.58
-----
-----
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - CLASS B................................ $ 4.28
-----
-----
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
12
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS FUND FOR INCOME, INC.
Year Ended December 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Interest....................................... $ 42,062,719
Dividends (Note 1E)............................ 2,060,217
Consent fees................................... 470,676
--------------
Total income..................................... $ 44,593,612
Expenses (Notes 1E and 3):
Advisory fee................................... 3,153,822
Shareholder servicing costs.................... 848,199
Distribution plan expenses - Class A........... 637,627
Distribution plan expenses - Class B........... 21,497
Reports and notices to shareholders............ 124,870
Professional fees.............................. 70,722
Custodian fees................................. 43,823
Other expenses................................. 75,043
--------------
Total expenses................................... 4,975,603
Less: Custodian fees paid indirectly............. (19,257)
--------------
Net expenses..................................... 4,956,346
--------------
Net investment income............................ 39,637,266
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 2):
Net realized loss on investments................. (5,886,757)
Net unrealized appreciation of investments....... 19,592,189
--------------
Net gain on investments.......................... 13,705,432
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS..................................... $ 53,342,698
--------------
--------------
</TABLE>
See notes to financial statements
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS FUND FOR INCOME, INC.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31 1996 1995
- ------------------------------------------------- -------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income.......................... $ 39,637,266 $ 39,800,885
Net realized gain (loss) on investments........ (5,886,757) 4,041,341
Net unrealized appreciation of investments..... 19,592,189 27,647,990
-------------- --------------
Net increase in net assets resulting from
operations................................. 53,342,698 71,490,216
-------------- --------------
DIVIDENDS TO SHAREHOLDERS
Net investment income - Class A................ (37,526,146) (37,489,349)
Net investment income - Class B................ (210,871) (71,432)
-------------- --------------
Total dividends.............................. (37,737,017) (37,560,781)
-------------- --------------
CAPITAL SHARE TRANSACTIONS (a)
Class A:
Proceeds from shares sold...................... 14,956,436 13,975,925
Value of dividends reinvested.................. 25,915,540 25,433,839
Cost of shares redeemed........................ (50,539,459) (48,423,529)
-------------- --------------
(9,667,483) (9,013,765)
-------------- --------------
Class B:
Proceeds from shares sold...................... 1,604,309 1,762,436
Value of dividends reinvested.................. 127,411 45,376
Cost of shares redeemed........................ (249,045) (112,219)
-------------- --------------
1,482,675 1,695,593
-------------- --------------
Net decrease from capital share transactions... (8,184,808) (7,318,172)
-------------- --------------
Net increase in net assets................... 7,420,873 26,611,263
NET ASSETS
Beginning of year.............................. 427,597,971 400,986,708
-------------- --------------
End of year (including undistributed net
investment income of $5,067,191 and
$3,166,942, respectively).................... $ 435,018,844 $ 427,597,971
-------------- --------------
-------------- --------------
(a)CAPITAL SHARES ISSUED AND REDEEMED
Class A:
Sold........................................... 3,564,924 3,505,873
Issued for dividends reinvested................ 6,171,776 6,340,562
Redeemed....................................... (12,071,004) (12,088,258)
-------------- --------------
Net decrease in Class A capital shares
outstanding.................................. (2,334,304) (2,241,823)
-------------- --------------
-------------- --------------
Class B:
Sold........................................... 383,768 442,113
Issued for dividends reinvested................ 30,324 11,234
Redeemed....................................... (59,519) (27,566)
-------------- --------------
Net increase in Class B capital shares
outstanding.................................. 354,573 425,781
-------------- --------------
-------------- --------------
</TABLE>
See notes to financial statements
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS FUND FOR INCOME, INC.
1. SIGNIFICANT ACCOUNTING POLICIES--The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as a diversified, open-end management
investment company. The investment objective of the Fund is primarily to seek to
earn a high level of current income and, to the extent possible, in view of that
objective, secondarily to seek growth of capital.
A. Security Valuation--Except as provided below, a security listed or traded on
an exchange or the NASDAQ National Market System is valued at its last sale
price on the exchange or system where the security is principally traded, and
lacking any sales, the security is valued at the last bid price. Each security
traded in the over-the-counter market (including securities listed on exchanges
whose primary market is believed to be over-the-counter) was valued at the most
recent bid price 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 and other
available information in determining bid values. Short-term corporate notes
which are purchased at a discount are valued at amortized cost. Securities for
which market quotations are not readily available, and 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.
Effective January 2, 1997, the Board of Directors approved a change in the
pricing policy for certain securities. Each security traded in the over-the-
counter market (including securities listed on exchanges whose primary market is
believed to be over-the-counter) which had been valued at the last bid price,
will be priced at the mean between the bid and asked prices.
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 the 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, such taxes. At December 31, 1996, the Fund had
capital loss carryovers of $669,293,833 of which $111,360,941 expires in 1997,
$350,158,165 in 1998, $207,520,038 in 1999, and $254,689 in 2002.
C. Distributions to Shareholders--Dividends to shareholders from net investment
income are accrued daily and paid monthly. 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 capital loss carryforwards and post
October 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 reporting period. Actual results could differ
from those estimates.
E. Other--Security transactions are accounted for on the date the securities are
purchased or sold. Cost is determined, and gains and losses are based, on the
identified cost basis for both financial
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS FUND FOR INCOME, INC.
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 are recognized as dividend income and recorded at the
market value of the shares received. During the year ended December 31, 1996,
the Fund recognized $2,060,217 of dividend income from these taxable "pay in
kind" distributions. Interest income and estimated expenses are accrued daily.
The Fund's custodian has provided credits in the amount of $19,257 against
custodian charges based on the uninvested cash balances of the Fund.
2. SECURITIES TRANSACTIONS--For the year ended December 31, 1996, purchases and
sales of securities, other than short-term United States Government obligations
and short-term corporate notes, aggregated $123,192,676 and $134,383,313,
respectively.
At December 31, 1996, the cost of investments for federal income tax purposes
was $408,107,316. Accumulated net unrealized appreciation on investments was
$20,685,039, consisting of $25,783,161 gross unrealized appreciation and
$5,098,122 gross unrealized depreciation.
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
directors of the Fund are officers and directors of its 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 Fund's Individual Retirement Accounts. Officers and directors
of the Fund received no remuneration from the Fund for serving in such
capacities. Their remuneration (together with certain other expenses of the
Fund) is paid by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO an annual
fee, payable monthly, at the rate of .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 year ended December 31, 1996, FIC, as underwriter, received $339,449 in
commissions after allowing $15,512 to other dealers. Shareholder servicing costs
included $514,634 in transfer agent fees paid to ADM, and $191,587 in custodian
fees paid to FFS.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940 Act, the
Fund is authorized to pay FIC a fee in an amount up to .30% of the average net
assets of the Class A shares and up to 1% of the average net assets of the Class
B shares on an annualized 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 the Fund. However, pursuant to
settlements entered into with various state regulators, the fee is limited to
.15% for Class A and .85% for Class B until February 1, 1998. For the year ended
December 31, 1996, this fee reduction amounted to $637,627 for Class A and
$3,794 for Class B.
4. RULE 144A SECURITIES--Under Rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and may
only be resold to qualified institutional investors. At December 31, 1996, the
Fund
16
<PAGE>
held thirteen 144A securities with an aggregate value of $21,004,250
representing 4.8% of the Fund's net assets. These securities are valued as set
forth in Note 1A.
5. CONCENTRATION OF CREDIT RISK--The Fund's investment 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 the holders of high yielding
securities, because such securities are generally unsecured and are often
subordinated to other creditors of the issuer.
6. CAPITAL--The Fund 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 12b-1
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 12b-1
fees and certain other class expenses) are allocated daily to each class of
shares based upon the relative proportion of net assets of each class. Of the
1,000,000,000 shares originally authorized, the Fund has designated 500,000,000
shares as Class A and 500,000,000 shares as Class B.
17
<PAGE>
FINANCIAL HIGHLIGHTS
FIRST INVESTORS FUND FOR INCOME, INC.
The following table sets forth the per share operating performance for a share
of capital stock outstanding, total return, ratios to average net assets and
other supplemental data for each year indicated.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
CLASS A
------------------------------------------
Year Ended December 31 1996 1995 1994 1993 1992
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value, Beginning of Year...... $ 4.13 $ 3.81 $4.17 $ 3.89 $ 3.69
------ ------ ----- ------ -----------
Income from Investment Operations
Net investment income................. .39 .38 .37 .39 .41
Net realized and unrealized gain
(loss) on investments............... .14 .30 (.35) .29 .19
------ ------ ----- ------ -----------
Total from Investment Operations.... .53 .68 .02 .68 .60
------ ------ ----- ------ -----------
Less Distributions from:
Net investment income................. .37 .36 .38 .40 .40
Capital surplus....................... -- -- -- -- --
------ ------ ----- ------ -----------
Total distributions................. .37 .36 .38 .40 .40
------ ------ ----- ------ -----------
Net Asset Value, End of Year............ $ 4.29 $ 4.13 $3.81 $ 4.17 $ 3.89
------ ------ ----- ------ -----------
------ ------ ----- ------ -----------
TOTAL RETURN (%)+....................... 13.40 18.54 .58 18.06 16.70
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Year (in millions)... $432 $425 $401 $431 $414
Ratio to Average Net Assets: (%)
Expenses.............................. 1.16 1.18 1.22 1.32 1.03
Net investment income................. 9.27 9.53 9.34 9.54 10.63
Portfolio Turnover Rate (%)............. 30 33 39 76 51
</TABLE>
+ Calculated without sales charge
* For the period 1/12/95 (date Class B shares first offered) to 12/31/95
(a) Annualized
See notes to financial statements
18
<PAGE>
The following table sets forth the per share operating performance for a share
of capital stock outstanding, total return, ratios to average net assets and
other supplemental data for each year indicated.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
CLASS B
CLASS A -----------------
----------------------------------------- 1995
1991 1990 1989 1988 1987 1996 *
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value, Beginning of Year...... $ 2.98 $ 4.16 $ 5.19 $ 5.15 $ 5.87 $ 4.13 $ 3.81
-------- ------- ------ ------ ------ ------ ---------
Income from Investment Operations
Net investment income................. .42 .53 .64 .69 .66 .38 .31
Net realized and unrealized gain
(loss) on investments............... .78 (1.19) (1.01) .01 (.71) .12 .33
-------- ------- ------ ------ ------ ------ ---------
Total from Investment Operations.... 1.20 (.66) (.37) .70 (.05) .50 .64
-------- ------- ------ ------ ------ ------ ---------
Less Distributions from:
Net investment income................. .41 .52 .66 .66 .67 .35 .32
Capital surplus....................... .08 -- -- -- -- -- --
-------- ------- ------ ------ ------ ------ ---------
Total distributions................. .49 .52 .66 .66 .67 .35 .32
-------- ------- ------ ------ ------ ------ ---------
Net Asset Value, End of Year............ $ 3.69 $ 2.98 $ 4.16 $ 5.19 $ 5.15 $ 4.28 $ 4.13
-------- ------- ------ ------ ------ ------ ---------
-------- ------- ------ ------ ------ ------ ---------
TOTAL RETURN (%)+....................... 42.84 (17.23) (8.05) 14.22 (1.25) 12.51 17.46
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Year (in millions)... $429 $527 $1,321 $1,739 $1,620 $3 $2
Ratio to Average Net Assets: (%)
Expenses.............................. 1.18 1.27 1.02 .99 1.08 1.86 1.92(a)
Net investment income................. 12.49 14.39 13.19 13.03 11.56 8.57 8.78(a)
Portfolio Turnover Rate (%)............. 50 21 44 74 74 30 33
</TABLE>
+ Calculated without sales charge
* For the period 1/12/95 (date Class B shares first offered) to 12/31/95
(a) Annualized
See notes to financial statements
19
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and Board of Directors of
First Investors Fund For Income, Inc.
We have audited the accompanying statement of assets and liabilities of First
Investors Fund For Income, Inc., including the portfolio of investments, as of
December 31, 1996, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years presented.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements.
Our procedures included confirmation of securities owned as of December 31,
1996, by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of First
Investors Fund For Income, Inc. at December 31, 1996, and the results of its
operations, changes in its net assets and financial highlights for the
respective years presented, in conformity with generally accepted accounting
principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 31, 1997
20
<PAGE>
[This page intentionally left blank.]
21
<PAGE>
FIRST INVESTORS FUND FOR INCOME, INC.
DIRECTORS
- -------------------------------------------
JAMES J. COY
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
REX R. REED
HERBERT RUBINSTEIN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- -------------------------------------------
GLENN O. HEAD
President
NANCY W. JONES
Vice President
CONCETTA DURSO
Vice President and Secretary
JOSEPH I. BENEDEK
Treasurer
CAROL LERNER BROWN
Assistant Secretary
GREGORY R. KINGSTON
Assistant Treasurer
MARK S. SPENCER
Assistant Treasurer
22
<PAGE>
FIRST INVESTORS FUND FOR INCOME, INC.
SHAREHOLDER INFORMATION
- -------------------------------------------
INVESTMENT ADVISER
FIRST INVESTORS
MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
UNDERWRITER
FIRST INVESTORS CORPORATION
95 Wall Street
New York, NY 10005
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
TRANSFER AGENT
ADMINISTRATIVE DATA
MANAGEMENT CORP.
581 Main Street
Woodbridge, NJ 07095-1198
LEGAL COUNSEL
KIRKPATRICK & LOCKHART LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
AUDITORS
TAIT, WELLER & BAKER
Two Penn Center Plaza
Philadelphia, PA 19102
It is the Fund's practice to mail only one copy of its annual and semi-annual
reports to any address at which more than one shareholder with the same last
name has indicated that mail is to be delivered. Additional copies of the
reports will be mailed if requested by any shareholder in writing or by calling
800-423-4026. The Fund will ensure that separate reports are sent to any
shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders, and,
if given to prospective shareholders, must be accompanied or preceded by the
Fund's prospectus.
23
<PAGE>
FIRST
INVESTORS
FUND FOR
INCOME, INC.
ANNUAL
REPORT
DECEMBER 31, 1996
Vertically reading from bottom to top in the center of the page the words "FIRST
INVESTORS" appear.
The following appears in a box to the left of the above language:
First Investors Logo (as described above)
NEED SERVICE?
If you have questions about your account...or would like information regarding
other products or services...please contact your representative or call our
Shareholder Services Department at...
(800) 423-4026
The following appears in a box within the above box:
Our business is...putting investors first
The following appears on the bottom lefthand side:
FIFI065
