The words "FIRST INVESTORS" appear in a box at the top of the first page.
FIRST INVESTORS
SPECIAL BOND FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 1998
The First Investors logo appears at the bottom left of the first page.
Logo is described as follows:
The arabic numeral one separated into seven vertical segments
followed by the words "First Investors."
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
LIF007
Chief Investment Officer's Market Overview Letter
FIRST INVESTORS SPECIAL BOND FUND, INC.
Dear Investor:
We are pleased to present the semi-annual report for First Investors Special
Bond Fund, Inc. for the six months ended June 30, 1998. The Fund is
available only through the purchase of a variable annuity contract issued by
First Investors Life Insurance Company ("FIL"). The report does not include
information concerning expenses and charges to which a contractowner would be
subject.
Although both the bond and stock markets suffered setbacks at times during
the first six months of the year, the combination of moderate growth, low
inflation, and respectable corporate earnings reports helped provide a
positive environment for investors in most types of funds.
The U.S. economy remained strong for the first half of 1998, with sustained,
moderate growth and low levels of inflation and unemployment. Inflation
remained low, as the Consumer Price Index rose just 1.7% for the twelve
months ended June 30. The unemployment rate continued to be low, at 4.5% as
of June 30, 1998. Consumer confidence remained high, encouraged by the robust
domestic economy and rising income levels.
In general, our long-term outlook for the financial markets continues to be
positive. The economy appears to be growing moderately, inflation remains
subdued and the Federal Reserve appears unlikely to tolerate unsustainably
fast economic growth. In regard to the stock market, we are encouraged by the
underlying fundamentals of the U.S. economy. However, we are cautioned by a
number of situations, including the struggles in Asia. We are concerned about
the effect this region's difficulties may have on U.S. growth and corporate
earnings. We are also concerned about the relative lack of pricing power and
the prospects that the lofty level of gains posted year-to-date can continue
into the second half of 1998.
With regard to the bond market, interest rates continue to remain in a tight
range; we believe the Federal Reserve is likely to maintain current interest
rates. Continued weak Asian markets, low inflation in the U.S. and the
Federal budget surplus should support an environment of low interest rates
and high bond prices. However, the continued strength of the U.S. economy
could result in higher interest rates and inflation, notwithstanding Asia. In
this event, bond fund values would decline.
Thank you for your continued confidence in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
First Investors Management Company, Inc.
July 31, 1998
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS SPECIAL BOND FUND, INC.
June 30, 1998
- ------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--90.1%
Aerospace/Defense--.9%
$ 300M Moog, Inc., 10%, 2006 $ 325,946 $ 96
- ------------------------------------------------------------------------------------------------------------
Apparel/Textiles--2.1%
700M Polymer Group, Inc., 9%, 2007 708,750 209
- ------------------------------------------------------------------------------------------------------------
Automotive--7.3%
385M Aftermarket Technology Corp., 12%, 2004 424,463 125
700M Cambridge Industries, Inc., 10 1/4%, 2007 714,000 211
500M Collins & Aikman Products Co., 11 1/2%, 2006 555,000 164
750M Exide Corp., 10%, 2005 780,000 230
- ------------------------------------------------------------------------------------------------------------
2,473,463 730
- ------------------------------------------------------------------------------------------------------------
Building Materials--1.5%
500M Falcon Building Products Corp., 9 1/2%, 2007 493,750 146
- ------------------------------------------------------------------------------------------------------------
Chemicals--2.6%
800M Huntsman Polymers Corp., 11 3/4%, 2004 876,000 258
- ------------------------------------------------------------------------------------------------------------
Consumer Products--4.3%
700M AKI Inc., 10 1/2%, 2008+ 700,000 207
700M Hines Horticulture, Inc., 11 3/4%, 2005 766,500 226
- ------------------------------------------------------------------------------------------------------------
1,466,500 433
- ------------------------------------------------------------------------------------------------------------
Containers/Packaging--5.2%
400M Plastic Containers, Inc., 10%, 2006 430,000 127
600M Tekni-Plex, Inc., 9 1/4%, 2008 600,000 177
700M U.S. Can Corp., 10 1/8%, 2006 728,000 215
- ------------------------------------------------------------------------------------------------------------
1,758,000 519
- ------------------------------------------------------------------------------------------------------------
Durable Goods Manufacturing--1.5%
500M Columbus McKinnon Corp., 8 1/2%, 2008+ 496,250 146
- ------------------------------------------------------------------------------------------------------------
Energy--3.0%
1,000M Stone Energy Corp., 8 3/4%, 2007 998,750 295
- ------------------------------------------------------------------------------------------------------------
Entertainment/Leisure--3.9%
600M Outboard Marine Corp., 10 3/4%, 2008+ 606,000 179
1,000M Panavision Corp. (PX Escrow Corp.), 0%-9 5/8%, 2006+ 722,500 213
- ------------------------------------------------------------------------------------------------------------
1,328,500 392
- ------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--.8%
250M Doane Products Co., 10 5/8%, 2006 272,500 80
- ------------------------------------------------------------------------------------------------------------
Gaming/Lodging--2.4%
800M Empress Entertainment Corp., 8 1/8%, 2006+ 802,000 237
- ------------------------------------------------------------------------------------------------------------
Healthcare--5.2%
900M Integrated Health Services, Inc., 9 1/2%, 2007 945,000 279
800M Tenet Healthcare Corp., 8 5/8%, 2007 826,000 244
- ------------------------------------------------------------------------------------------------------------
1,771,000 523
- ------------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--9.5%
500M Allbritton Communications Corp., 9 3/4%, 2007 552,500 163
700M Mediacom LLC/Capital, 8 1/2%, 2008+ 697,375 206
500M Sinclair Broadcasting Group, Inc., 9%, 2007 518,125 153
500M Star Choice Communications, 13%, 2005 512,500 151
900M World Color Press, Inc., 9 1/8%, 2003 933,750 276
- ------------------------------------------------------------------------------------------------------------
3,214,250 949
- ------------------------------------------------------------------------------------------------------------
Media (Other)--2.9%
1,000M Affiliated Newspaper Investments, Inc., 0%-13 1/4%, 2006 980,000 289
- ------------------------------------------------------------------------------------------------------------
Mining/Metals--6.0%
600M Commonwealth Aluminum Corp., 10 3/4%, 2006 633,000 187
800M CSN Iron, SA, 9 1/8%, 2007+ 650,000 192
700M Euramax International PLC, 11 1/4%, 2006 756,000 223
----------------------------------------------------------------------------------------------------------
2,039,000 602
----------------------------------------------------------------------------------------------------------
Miscellaneous--5.6%
900M Kindercare Learning Centers, Inc., 9 1/2%, 2009 921,375 272
600M Loomis Fargo & Co., 10%, 2004 603,000 178
336M Pierce-Leahy Corp., 11 1/8%, 2006 377,160 111
----------------------------------------------------------------------------------------------------------
1,901,535 561
----------------------------------------------------------------------------------------------------------
Paper/Forest Products--4.2%
500M Container Corp., 11 1/4%, 2004 547,500 161
900M Fonda Group, Inc., 9 1/2%, 2007 873,000 258
- ------------------------------------------------------------------------------------------------------------
1,420,500 419
- ------------------------------------------------------------------------------------------------------------
Real Estate/Construction--1.5%
600M Cathay International Ltd., 13%, 2008+ 522,000 154
- ------------------------------------------------------------------------------------------------------------
Telecommunications--17.0%
500M 21st Century Telecom Group, Inc., 0%-12 1/4%, 2008+ 283,750 84
600M Comcast Cellular Holdings, Inc., 9 1/2%, 2007 625,500 185
700M Facilicom International, Inc., 10 1/2%, 2008+ 686,000 202
1,000M ICG Services, Inc., 0%-10%, 2008 597,500 176
1,100M McCaw International, Ltd., 0%-13%, 2007 732,875 216
700M McLeodUSA, Inc., 9 1/4%, 2007 728,000 215
750M Netia Holdings BV, 0%-11 1/4%, 2007 496,875 147
800M Powertel Inc., 0%-12%, 2006 616,000 182
700M Qwest Communications International, Inc., 0%-9.47%, 2007 525,000 155
800M RCN Corporation, 0%-11%, 2008 479,000 141
- ------------------------------------------------------------------------------------------------------------
5,770,500 1,703
- ------------------------------------------------------------------------------------------------------------
Transportation--2.7%
900M Eletson Holdings, Inc., 9 1/4%, 2003 923,625 272
- ------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $30,091,338) 30,542,819 9,013
- ------------------------------------------------------------------------------------------------------------
Principal Amount
Amount, Invested
Shares, For Each
Warrants $10,000 of
or Units Security Value Net Assets
- ------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.6%
- ------------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--.1%
1,300 * Echostar Communications Corp. - Class "A" 31,281 9
- ------------------------------------------------------------------------------------------------------------
Media (Other)--.4%
1,500 * Affiliated Newspaper Investments, Inc. - Class "B" 135,000 40
- ------------------------------------------------------------------------------------------------------------
Paper/Forest Products--.1%
5,594 * Gaylord Container Corp. - Class "A" 43,004 13
- ------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $41,891) 209,285 62
- ------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--1.8%
Durable Goods Manufacturing--.6%
200 Day International Group, Inc., 12 1/4%+ 203,500 60
- ------------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--1.2%
354 Time Warner Inc., 10 1/4%, PIK, Series "M" 395,153 117
- ------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $558,010) 598,653 177
- ------------------------------------------------------------------------------------------------------------
WARRANTS--.1%
Gaming/Lodging--.0%
850 * Goldriver Finance Corp., Liquidating Trust 850 0
- ------------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--.1%
11,580 * Star Choice Communications (expiring 12/15/05)+ 30,397 9
- ------------------------------------------------------------------------------------------------------------
Telecommunications--.0%
1,100 * McCaw International, Ltd. (expiring 4/15/07)+ 5,500 2
- ------------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $0) 36,747 11
- ------------------------------------------------------------------------------------------------------------
UNITS--.9%
Telecommunications
500 Viatel, Inc., (cost $304,267)(a)+ 302,500 90
- ------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--3.2%
1,000M United States Treasury Note, 7%, 2006 (cost $1,087,969) 1,092,813 322
- ------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.0%
1,000M Merrill Lynch & Co., 5.82%, 7/7/98 (cost $999,030) 999,030 295
- ------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $33,082,505) 99.7% 33,781,847 9,970
Other Assets, Less Liabilities .3 103,213 30
- ------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $33,885,060 $10,000
============================================================================================================
+ See Note 5
* Non-income producing
(a) Each unit consists of one 0%-12 1/2% senior discount note due 2008 and .49 share of Series "A" preferred stock.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS SPECIAL BOND FUND, INC.
June 30, 1998
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities, at value
(identified cost $33,082,505) (Note 1A) $ 33,781,847
Cash 320,003
Dividends and interest receivable 637,171
Other assets 4,373
--------------
Total Assets 34,743,394
Liabilities
Dividend payable . $ 804,502
Payable for capital stock redeemed 19,517
Accrued advisory fee 21,338
Accrued expenses 12,977
----------
Total Liabilities 858,334
--------------
Net Asset $ 33,885,060
==============
Net Assets Consist of:
Capital paid in $ 50,671,945
Undistributed net investment income 879,194
Accumulated net realized loss on investment transactions (18,365,421)
Net unrealized appreciation in value of investments 699,342
--------------
Total $ 33,885,060
==============
Net Asset Value, Offering Price and Redemption Price Per Share
($33,885,060 divided by 2,663,918 shares outstanding),
25,000,000 shares authorized, $1.00 par value (Note 2) $12.72
==============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS SPECIAL BOND FUND, INC.
Six Months Ended June 30, 1998
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Income:
Interest $ 1,658,740
Dividends 19,013
Consent fees and other income 42,360
------------------
Total income $ 1,720,113
Expenses (Notes 1 and 4):
Advisory fee 132,935
Professional fees 10,757
Custodian fees 6,553
Reports and notices to shareholders 241
Other expenses 3,276
------------------
Total expenses 153,762
Less: Custodian fees paid indirectly (1,571)
------------------
Net expenses 152,191
---------------
Net investment income 1,567,922
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Net realized gain on investments 824,802
Net unrealized depreciation of investments (1,194,376)
------------------
Net loss on investments (369,574)
---------------
Net Increase in Net Assets Resulting from Operations $1,198,348
===============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS SPECIAL BOND FUND, INC.
- --------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
June 30, 1998 December 31, 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 1,567,922 $ 3,094,490
Net realized gain on investments 824,802 972,414
Net unrealized depreciation of investments (1,194,376) (313,134)
---------------------- ----------------------
Net increase in net assets resulting from operations 1,198,348 3,753,770
---------------------- ----------------------
Dividends to Shareholders
Net investment income (1,634,315) (3,378,374)
---------------------- ----------------------
Capital Share Transactions (a)
Proceeds from shares sold 194,706 163,124
Reinvestment of dividends 829,813 3,378,373
Cost of shares redeemed (2,785,020) (4,783,216)
---------------------- ----------------------
Net decrease in net assets resulting from share transactions (1,760,501) (1,241,719)
---------------------- ----------------------
Net decrease in net assets (2,196,468) (866,323)
Net Assets
Beginning of period 36,081,528 36,947,851
---------------------- ----------------------
End of period (including undistributed net
investment income of $879,194 and $945,587,
respectively) $ 33,885,060 $ 36,081,528
====================== ======================
(a)Capital Shares Issued and Redeemed
Sold 14,959 12,765
Issued for dividends reinvested 63,685 264,653
Redeemed (214,813) (374,153)
---------------------- ----------------------
Net decrease in capital shares (136,169) (96,735)
====================== ======================
See notes to financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS SPECIAL BOND FUND, 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 to
seek high current income without undue risk to principal and secondarily to
seek growth of capital.
A. Security Valuation -- 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 market (including
securities listed on exchanges whose primary market is believed to be over-
the-counter) 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 and other available information
in determining value. Short-term debt securities that mature in 60 days or
less are valued on the amortized cost method which approximates market value.
Securities for which market quotations are not readily available 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.
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 June 30, 1998,
the Fund had capital loss carryovers of $19,190,223, of which $15,626,948
expires in 1998, $3,021,871 in 1999, $287,903 in 2003 and $253,501 in 2004.
C. Distributions to Shareholders -- Dividends to shareholders from net
investment income are declared daily and paid quarterly. 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 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 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 statement and federal income tax
purposes. Dividend income is recorded on the ex-dividend date. Interest
income and estimated expenses are accrued daily. For the six months ended
June 30, 1998, the Fund's custodian has provided credits in the amount of
$1,571 against custodian charges based on the uninvested cash balances of the
Fund.
2. Capital Stock -- Shares of the Fund are sold only through the purchase of
annuity contracts issued by First Investors Life Variable Annuity Fund A.
3. Security Transactions -- For the six months ended June 30, 1998, purchases
and sales of investment securities, other than United States Government
obligations and short-term corporate notes, aggregated $12,491,362 and
$14,160,985, respectively.
At June 30, 1998, the cost of investments for federal income tax purposes was
$33,082,505. Accumulated net unrealized appreciation on investments was
$699,342, consisting of $1,148,856 gross unrealized appreciation and $449,514
gross unrealized depreciation.
4. 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") and its transfer agent,
Administrative Data Management Corp. Directors of the Fund who are not
"interested persons" of the Fund as defined in the 1940 Act are remunerated
by the Fund. For the six months ended June 30, 1998, total directors fees
accrued by the Fund amounted to $1,750.
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.
5. Rule 144A Securities -- Under Rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and
may only be resold to qualified institutional investors. At June 30, 1998,
the Fund held fourteen 144A securities with an aggregate value of $6,707,772
representing approximately 19.8% of the Fund's net assets. These securities
are valued as set forth in Note 1A.
6. 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 risk 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.
Independent Auditors' Report
To the Shareholders and Board of Directors of
First Investors Special Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of First
Investors Special Bond Fund, Inc., including the portfolio of investments, as
of June 30, 1998 and the related statement of operations for the six months
then ended, the statement of changes in net assets for the six months ended
June 30, 1998 and the year ended December 31, 1997, and financial highlights
for each of the periods indicated thereon. 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 June 30, 1998,
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 Special Bond Fund, Inc. as of June 30, 1998, and the results
of its operations, changes in its net assets and financial highlights for the
periods indicated thereon, in conformity with generally accepted accounting
principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
July 31, 1998
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS SPECIAL BOND FUND, INC.
The following table sets forth the operating performance data for a share of capital stock outstanding,
total return, ratios to average net assets and other supplemental data for each period indicated.
-------------------------------------------------
Year Ended December 31
-------------------------------------------------
1/1/98
to 6/30/98 1997 1996 1995 1994 1993
--------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data
Net Asset Value, Beginning of Period $12.89 $12.75 $12.23 $11.03 $12.18 $11.38
--------- -------- -------- -------- -------- ---------
Income from Investment Operations
Net investment income .59 1.11 1.17 1.20 1.09 1.14
Net realized and unrealized
gain (loss) on investments (.16) .23 .37 1.02 (1.22) .86
--------- -------- -------- -------- -------- ---------
Total from Investment Operations .43 1.34 1.54 2.22 (.13) 2.00
--------- -------- -------- -------- -------- ---------
Less Distributions from
Net Investment Income .60 1.20 1.02 1.02 1.02 1.20
--------- -------- -------- -------- -------- ---------
Net Asset Value, End of Period $12.72 $12.89 $12.75 $12.23 $11.03 $12.18
--------- -------- -------- -------- -------- ---------
Total Return(%)+ 3.33 10.94 13.10 20.76 (1.00) 18.15
Ratios/Supplemental Data
Net Assets, End of Period (in thousands) $33,885 $36,082 $36,948 $38,037 $36,725 $43,056
Ratio to Average Net Assets:(%)
Expenses .87 (a) .86 .86 .88 .87 .85
Net investment income 8.85 (a) 8.60 9.31 10.17 9.38 9.54
Portfolio Turnover Rate(%) 37 53 29 45 54 79
+ The effect of fees and charges incurred at the separate account level are not reflected in these performance figures.
(a) Annualized
See notes to financial statements
</TABLE>
FIRST INVESTORS SPECIAL BOND FUND, INC.
Directors
- ---------------------------------------
James J. Coy (Emeritus)
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
Nancy S. Schaenen
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- ---------------------------------------
Glenn O. Head
President
George V. Ganter
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
Shareholder Information
- ---------------------------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Eight Penn Center Plaza
Philadelphia, PA 19103
It is the 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.
