Portfolio Manager's Letter
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
The substantial decline in long-term interest rates during 1995 provided
municipal bond investors with historically high total returns. These
returns were achieved despite investor concern about tax reform; Orange
County, California's bankruptcy; and new issue supply which reached $156
billion due to a large number of refunding deals in the fourth quarter.
During 1995 First Investors Insured Tax Exempt Fund, Inc. returned 16.0%
on Class A shares on a net asset value basis, somewhat below the Lipper
Analytical Services, Inc.'s insured municipal bond fund average. Class B
shares, which were first offered for sale on January 12, 1995, returned
14.3%. The large decline in long-term interest rates during 1995
provided investors with substantial capital appreciation in addition to
dividends from net investment income of 52.6 cents per Class A share and
43.8 cents per Class B share.
The Fund historically has had a relatively short duration--or
sensitivity to interest rate rise--due to its large holdings of high
coupon bonds which provide a high level of current income. Thus, the
Fund's total return tends to underperform the Lipper average when
interest rates fall, as they did last year. In order to enhance total
return, the Fund focused during 1995 on improving call protection and
increasing duration by purchasing noncallable bonds and bonds trading at
a discount to par, and selling callable bonds priced near par. In terms
of credit concerns, the Fund reduced its hospital holdings over the past
year from approximately 21% of assets to 13% due to ongoing uncertainty
in the healthcare sector. The Fund remained fully invested throughout
the year to maximize current income, although calls on high coupon bonds
slightly eroded the Fund's yield.
Looking forward, the uncertainty of potential tax reform during the next
two years remains the main hurdle facing the tax exempt bond market.
This uncertainty continues to keep municipal bonds historically cheap to
taxable bonds. As investors realize the unlikelihood of major tax
reform, municipal bonds are likely to outperform taxable bonds. Thus, we
continue to believe that municipal bonds represent an attractive
opportunity for long-term investors.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
Comparison of change in value of $10,000 investment in the First
Investors Insured Tax Exempt Fund, Inc. (Class A shares) and the Lehman
Brothers Municipal Bond Index.
As of December 31, 1995
[worm chart omitted; the following figures were used to create this
chart]
TAX EXEMPT LEHMAN
JAN 1986 9,375 10,000
DEC 1986 10,833 11,932
DEC 1987 11,074 12,111
DEC 1988 12,262 13,340
DEC 1989 13,306 14,779
DEC 1990 14,150 15,856
DEC 1991 15,600 17,782
DEC 1992 16,840 19,350
DEC 1993 18,504 21,725
DEC 1994 17,466 20,602
DEC 1995 20,263 24,197
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
Class A shares
One Year 16.0% 8.7%
Five Years 7.5% 6.1%
Ten Years 8.0% 7.3%
S.E.C. 30-Day Yield 4.6%
Class B shares
Since Inception 14.3% 9.6%
S.E.C. 30-Day Yield 4.2%
The graph compares a $10,000 investment made in the First
Investors Insured Tax Exempt Fund, Inc. (Class A shares) on 1/1/86 with
a theoretical investment in the Lehman Brothers Municipal Bond Index. It
is not possible to invest directly in this Index. In addition, the Index
does not take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. 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 above based on differences in sales loads and fees paid by
shareholders investing in the different classes.
The Lehman Brothers Municipal Bond Index is a total return
performance benchmark for the long-term investment grade tax-exempt bond
market. Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by Muller
Data Corp.
*Average Annual Total Return figures (for the period ended 12/31/95)
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 7.25%, respectively). The returns for Class B shares (first offered
for sale on 1/12/95) are for the period 1/12/95 through 12/31/95. The
Class B "S.E.C. Standardized" return is 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. Lehman Brothers Municipal Bond Index figures from
Lehman Brothers Inc. and all other figures from First Investors
Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS--99.6%
Alaska--.4%
$ 8,000 M North Slope Boro, Alaska General Obligation Zero Coupon 6/30/2005 $ 4,970,000 $ 36
- -------------------------------------------------------------------------------------------------------------------
Arizona--1.4%
8,550 M Arizona State Municipal Financing Program Ctfs. of Partn. 7.7% 8/1/2010 10,473,750 76
7,000 M Mesa, Arizona Utility System Revenue 7 1U8% 7/1/2011 8,575,000 63
- -------------------------------------------------------------------------------------------------------------------
19,048,750 139
- -------------------------------------------------------------------------------------------------------------------
California--3.6%
2,865 M California Public Capital Improv. Fin. Auth. 8.1% 3/1/2018 3,108,525 23
4,220 M Long Beach Finance Authority 6% 11/1/2017 4,615,625 34
10,000 M San Francisco City & County Redev. Agcy. 6 3U4% 7/1/2025 11,125,000 81
San Jose Redevelopment Agency Tax Allocation:
5,000 M 6% 8/1/2015 5,475,000 40
12,700 M 5% 8/1/2020 12,065,000 88
5,000 M Santa Clara County Financing Authority 7 3U4% 11/15/2010 6,356,250 46
5,720 M South Orange Cnty. Public Financing Authority 6 1U2% 8/15/2010 6,463,600 47
- -------------------------------------------------------------------------------------------------------------------
49,209,000 359
- -------------------------------------------------------------------------------------------------------------------
Colorado--.1%
1,850 M Aurora Municipal Building Corp. 9.2% 12/1/1997* 2,041,937 15
- -------------------------------------------------------------------------------------------------------------------
Connecticut--1.8%
Connecticut Special Tax Obligation Revenue:
13,500 M 6 1U2% 10/1/2011 15,440,625 112
9,000 M 6 1U8% 9/1/2012 10,035,000 73
- -------------------------------------------------------------------------------------------------------------------
25,475,625 185
- -------------------------------------------------------------------------------------------------------------------
Delaware--.6%
7,000 M Delaware State Econ. Dev. Auth. Rev. Pollution Control 7.15% 7/1/2018 7,822,500 57
- -------------------------------------------------------------------------------------------------------------------
District of Columbia--3.0%
Washington D.C. General Obligation:
10,530 M Series "C" 8% 6/1/1998* 11,596,162 84
5,800 M Series "A" 6 1U2% 6/1/2009 6,401,750 47
8,875 M Series "A" 6% 6/1/2011 9,374,219 68
13,255 M Series "E" 6% 6/1/2012 13,718,925 100
- -------------------------------------------------------------------------------------------------------------------
41,091,056 299
- -------------------------------------------------------------------------------------------------------------------
Florida--4.5%
13,865 M Dade County Guaranteed Entitlement Rev. Zero Coupon 2/1/2011 6,065,937 44
2,255 M Dade County Spec. Oblig. (Miami Beach Conv. Ctr.) 8 5U8% 12/1/2008 2,497,412 18
Escambia County Utilities Authority:
5,485 M 6 1U4% 1/1/2012 6,156,913 45
5,360 M 6 1U4% 1/1/2013 6,009,900 44
1,070 M Florida Hsg. Fin. Agy. Residential Mtge. Rev. (Series 2) 8% 12/15/2016 1,117,487 8
5,000 M Florida State Turnpike Authority Revenue 5% 7/1/2019 4,831,250 35
Orange County Health Facilities:
8,410 M Mercy Medical 7 7U8% 12/1/2025 8,946,138 65
7,725 M Sarasota, Lee Memorial, Venice 7 7U8% 12/1/2025 8,217,469 60
1,750 M Palm Beach County Solid Waste Authority 8 3U8% 7/1/2010 1,909,687 14
3,000 M Plant City Utility System 6% 10/1/2015 3,277,500 24
Sunrise Utilities System Revenue:
1,500 M 10 1U4% 10/1/2000* 1,882,500 13
1,500 M 10 3U4% 10/1/2000* 1,914,375 14
5,975 M Tampa Utilities Tax & Spl. Rev. 8 1U8% 10/1/1997* 6,505,281 47
1,395 M West Coast Regional Water Supply Auth. 10.4% 10/1/2010* 2,033,213 15
- -------------------------------------------------------------------------------------------------------------------
61,365,062 446
- -------------------------------------------------------------------------------------------------------------------
Georgia--7.1%
3,960 M Cherokee County Water & Sewer Auth. Revenue 5.2% 8/1/2025 3,935,250 29
5,815 M Fulton County Water & Sewer Revenue 6 3U8% 1/1/2014 6,650,906 48
Georgia Municipal Electric Authority Power Revenue:
2,000 M 8 3U8% 1/1/1997* 2,117,640 15
14,000 M 8 1U8% 1/1/1998* 15,260,000 111
5,000 M 6 1U4% 1/1/2012 5,575,000 41
Metropolitan Atlanta Rapid Transit Authority:
20,500 M 6 1U4% 7/1/2011 23,011,250 167
7,500 M 6 3U4% 7/1/2013 8,390,625 61
28,165 M 6 1U4% 7/1/2020 32,319,338 235
- -------------------------------------------------------------------------------------------------------------------
97,260,009 707
- -------------------------------------------------------------------------------------------------------------------
Hawaii--1.4%
Hawaii State General Obligation:
5,500 M 6% 10/1/2009 6,084,375 44
6,000 M 6% 10/1/2010 6,652,500 49
6,000 M Honolulu General Obligation 5 3U4% 4/1/2012 6,337,500 46
- -------------------------------------------------------------------------------------------------------------------
19,074,375 139
- -------------------------------------------------------------------------------------------------------------------
Illinois--10.8%
27,200 M Chicago Board of Education Lease Certificates 6% 1/1/2020 29,546,000 215
16,660 M Chicago General Obligation 6 1U8% 1/1/2016 17,513,825 128
Chicago O'Hare International Airport Revenue:
13,090 M 6 3U8% 1/1/2012 14,219,013 104
10,000 M 6 3U8% 1/1/2015 10,775,000 78
Chicago Public Building Commission Building Revenue:
3,340 M 7 3U4% 1/1/1999* 3,732,450 27
3,500 M 8 3U4% 1/1/2007 3,738,000 27
2,500 M Des Plaines Hosp. Facs. (Holy Family Hosp.) 9 1U4% 1/1/2014 2,568,000 19
2,800 M Hazel Crest Hosp. Facs. Rev. (South Sub. Proj.) 9 1U8% 7/1/1997* 3,059,000 22
16,750 M Illinois Development Finance Auth. Poll. Control Rev. 6 3U4% 3/1/2015 18,529,687 135
Illinois Development Finance Authority Rev. (Rockford School 205):
3,400 M 6.55% 2/1/2009 3,795,250 28
5,000 M 6.6% 2/1/2010 5,631,250 41
3,000 6.65% 2/1/2011 3,412,500 25
Illinois Health Facilities Authority Revenue:
4,300 M Bromenn Healthcare Project 8% 8/15/1998* 4,789,125 35
1,500 M Grant Hospital 7 1U2% 12/1/1996* 1,580,085 11
1,765 M Mercy Hospital & Medical Center 9 1U2% 1/1/2015 1,837,700 13
1,000 M Methodist Medical Center 9 5U8% 10/1/2010 1,033,410 8
2,600 M SSM Health Care Project Series "B" 8% 6/1/1998* 2,876,250 21
4,000 M University of Chicago Hospital 8.1% 8/1/1997* 4,325,000 31
1,750 M Lansing Sales Tax Rfdg. 7.7% 12/1/1998* 1,922,812 14
4,000 M Regional Transportation Authority 7 3U4% 6/1/2019 5,285,000 38
Will County School District General Obligation:
3,600 M 7% 12/1/2007 4,270,500 31
2,080 M 7.05% 12/1/2008 2,477,800 18
1,175 M 7.1% 12/1/2009 1,404,125 10
- -------------------------------------------------------------------------------------------------------------------
148,321,782 1,079
- -------------------------------------------------------------------------------------------------------------------
Indiana--1.5%
4,070 M Delaware Cnty. Hosp. Auth. (Ball Memorial Hosp.) 6 5U8% 8/1/2006 4,466,825 32
4,205 M Indiana Housing Fin. Auth. Single-Family Mtge. Rev. 7.6% 1/1/2016 4,483,581 33
2,000 M Indiana State Edl. Facs. Auth. (Butler University) 8% 11/1/1998* 2,237,500 16
Indianapolis Public Improvement Bond Bank:
5,035 M 6 1U2% 1/1/2012 5,695,844 41
2,500 M 6 1U2% 1/1/2013 2,825,000 21
1,000 M Muncie Certificates of Participation 8.1% 2/1/1998* 1,088,750 8
- -------------------------------------------------------------------------------------------------------------------
20,797,500 151
- -------------------------------------------------------------------------------------------------------------------
Louisiana--4.9%
1,030 M Bossier Cty. Public Imp. Sales & Use Tax Rev. 9 1U4% 11/1/1997* 1,138,150 8
2,000 M Calcasieu Parish Mem. Hosp. (Lake Charles Hosp.) 8.4% 12/1/1997* 2,195,000 16
3,000 M Greater New Orleans Expressway 7.8% 11/1/1996* 3,186,090 23
Louisiana Public Facilities Authority Hospital Revenue:
1,325 M Daughters of Charity 9 3U4% 2/1/1996* 1,357,264 10
2,350 M Touro Infirmary 8% 6/1/1998* 2,596,750 19
2,400 M Womens Hospital Foundation 8 1U8% 10/1/1998* 2,685,000 20
Louisiana Public Facilities Hlth. & Ed. Cap. Fac.:
5,845 M CP Program 7.9% 12/1/2015 6,473,337 47
1,750 M Our Lady of the Lake 8.2% 12/1/1998* 1,968,750 14
Louisiana State General Obligation:
8,050 M 6.1% 5/1/2010 8,633,625 63
14,555 M 6% 5/1/2012 15,464,687 113
14,000 M 6% 5/1/2014 14,752,500 107
15,000 M New Orleans Regl. Transit Auth. Sales Tax Rev. Zero Cpn. 12/1/2021 3,487,500 25
3,000 M Regional Transportation Authority Revenue 8% 12/1/2013 3,345,000 24
- -------------------------------------------------------------------------------------------------------------------
67,283,653 489
- -------------------------------------------------------------------------------------------------------------------
Maryland--.4%
5,000 M Maryland Indl. Dev. Auth. 5.928% 8/26/2022 5,393,750 39
- -------------------------------------------------------------------------------------------------------------------
Massachusetts--5.5%
4,750 M Boston General Obligation 7 3U8% 2/1/2000* 5,379,375 39
2,300 M Mass. Bay Transportation Authority Ctfs. of Partn. 7.65% 8/1/2000* 2,670,875 19
Mass. Bay Transportation Authority Gen. Sys. Rev.:
9,080 M 5.8% 3/1/2012 9,579,400 70
11,175 M 5.8% 3/1/2013 11,845,500 86
10,000 M 5 7U8% 3/1/2015 10,612,500 77
Mass. Health & Educational Facilities Authority:
2,300 M Berkshire Health Systems 7.6% 10/1/1998* 2,550,125 19
1,500 M Carney Hospital 7 3U4% 7/1/2000* 1,740,000 13
1,540 M Mass. Housing Finance Agency 7.7% 6/1/2017 1,634,325 12
20,550 M Massachusetts State General Obligation 6% 8/1/2009 22,656,375 165
5,000 M Mass. State Water Resource Authority 6 1U4% 12/1/2012 5,637,500 41
1,000 M Palmer General Obligation 7.3% 3/1/2000* 1,133,750 8
- -------------------------------------------------------------------------------------------------------------------
75,439,725 549
- -------------------------------------------------------------------------------------------------------------------
Michigan--3.5%
5,000 M Detroit Sewer Disposal System Revenue 5% 7/1/2025 4,762,500 35
2,000 M Detroit Water Supply System Revenue 5.55% 7/1/2012 2,065,000 15
10,000 M Michigan State General Obligation 6 1U4% 11/1/2012 11,275,000 82
Michigan State Housing Development
Authority Single-Family Mtge. Rev.:
4,685 M 7 1U2% 6/1/2015 4,948,531 36
2,500 M 7.3% 12/1/2016 2,628,125 19
2,135 M 7.7% 12/1/2016 2,255,094 17
4,500 M Monroe Cnty. Econ. Dev. Corp. (Detroit Edison Co.) 6.95% 9/1/2022 5,563,125 40
15,010 M Wayne Charter Cnty. Airport Rev. 5 1U4% 12/1/2021 14,615,988 106
- -------------------------------------------------------------------------------------------------------------------
48,113,363 350
- -------------------------------------------------------------------------------------------------------------------
Minnesota--.2%
1,315 M Eden Prairie Multi-Family Housing 8% 7/1/2026 1,405,406 10
1,240 M St. Paul Hsg. & Red. Auth. (Como-Lake Proj.) 7 1U2% 3/1/2026
(Defaulted) (Note 1A) 1,240,000 9
- -------------------------------------------------------------------------------------------------------------------
2,645,406 19
- -------------------------------------------------------------------------------------------------------------------
Mississippi--.5%
4,475 M Mississippi Hosp. Equip. & Facs. Auth. Rev. (Baptist Med. Ctr.)
7.6% 5/1/2000* 5,146,250 37
1,545 M Mississippi Hsg. Fin. Corp. Single-Family Mtge. Pur. Rev.
7.8% 10/15/2016 1,608,731 12
- -------------------------------------------------------------------------------------------------------------------
6,754,981 49
- -------------------------------------------------------------------------------------------------------------------
Missouri--2.4%
3,640 M Kansas City School District Bldg. Cap. Improvement 7.9% 2/1/1998* 3,994,900 29
Missouri State Health & Educational Facilities Authority:
BJC Health System Series "A":
6,840 M 6 3U4% 5/15/2010 7,985,700 58
10,175 M 6 3U4% 5/15/2011 11,993,781 87
10,000 M Lester Cox Zero Cpn. 9/1/2016 3,225,000 24
5,245 M SSM Health Care 6 1U4% 6/1/2007 5,690,825 41
- -------------------------------------------------------------------------------------------------------------------
32,890,206 239
- -------------------------------------------------------------------------------------------------------------------
Nevada--.2%
1,640 M Nevada Housing Div. Single-Family Prog. 7.6% 10/1/2018 1,740,450 13
1,195 M Reno Hosp. Rev. (St. Mary's Hospital) 7 3U4% 7/1/2000* 1,366,781 10
- -------------------------------------------------------------------------------------------------------------------
3,107,231 23
- -------------------------------------------------------------------------------------------------------------------
New Jersey--2.8%
7,120 M Camden County Municipal Utilities Sewer Rev. 8 1U4% 12/1/2017 7,796,400 57
11,185 M New Jersey Economic Development Auth. Market Trans. Fac. Rev.
5 7U8% 7/1/2011 11,814,156 86
New Jersey Housing & Mortgage Financing Revenue:
5,380 M 7 1U2% 4/1/2015 5,675,900 41
8,400 M 7 3U8% 10/1/2017 8,862,000 65
4,195 M 8.1% 10/1/2017 4,457,188 32
- -------------------------------------------------------------------------------------------------------------------
38,605,644 281
- -------------------------------------------------------------------------------------------------------------------
New Mexico--.4%
1,000 M Farmington Power Rev. Gen. Dev. 9 7U8% 1/1/2005* 1,375,000 10
New Mexico Mortgage Finance Authority, Single-Family Mortgage:
3,075 M 8% 1/1/2017 3,217,219 23
1,195 M 8 5U8% 7/1/2017 1,248,775 9
- -------------------------------------------------------------------------------------------------------------------
5,840,994 42
- -------------------------------------------------------------------------------------------------------------------
New York--6.3%
Metropolitan Transit Authority, Transit Facilities:
10,000 M 8% 7/1/1998* 11,125,000 81
3,500 M 7 1U2% 7/1/2000* 3,937,500 28
New York City General Obligation:
10,000 M Series "A" 8 3U4% 11/1/1997* 10,987,500 80
5,000 M Series "B" 7 3U4% 8/1/1998* 5,443,750 40
3,850 M Series "A" 8% 8/1/1998* 4,268,687 31
4,500 M New York State Dorm. Auth. Revs. City Univ.
System 7 1U2% 7/1/2000* 5,186,250 38
New York State Dorm. Auth. Revs. State Univ. Educ. System:
2,780 M 7 1U4% 5/15/2000* 3,165,725 23
11,300 M 7 3U8% 5/15/2014 12,656,000 92
5,000 M New York State General Obligation 6% 6/15/2011 5,318,750 39
New York State Med. Care Facs. Fin. Agcy. Rev.:
2,025 M Hosp. & Nursing 7.35% 2/15/2029 2,232,563 16
10,500 M St. Luke's Hosp. 7.45% 2/15/2000* 11,970,000 87
4,000 M New York State Urban Dev. Corp. 7 1U2% 1/1/2000* 4,555,000 33
5,840 M Suffolk Cnty., N.Y. Indl. Dev. Agcy. Southwest Sewer Sys. 6% 2/1/2008 6,453,200 47
- -------------------------------------------------------------------------------------------------------------------
87,299,925 635
- -------------------------------------------------------------------------------------------------------------------
North Carolina--2.0%
North Carolina Municipal Power Agency (Catawba):
8,950 M 6% 1/1/2010 9,755,500 71
8,945 M 6% 1/1/2011 9,738,869 71
8,900 M 5% 1/1/2018 8,555,125 62
- -------------------------------------------------------------------------------------------------------------------
28,049,494 204
- -------------------------------------------------------------------------------------------------------------------
North Dakota--.7%
8,000 M Mercer County Poll. Ctrl. Rev. (Basin Elec. Pwr. Coop.) 7.2% 6/30/2013 9,800,000 71
- -------------------------------------------------------------------------------------------------------------------
Ohio--.8%
1,145 M Cuyahoga Cnty. Hosp. Rev. (Richmond Hts. Gen. Hosp.) 10% 12/1/2011 1,145,000 9
8,350 M Lucas Cnty. Hospital (Toledo Hosp.) 5% 11/15/2022 7,838,562 57
1,435 M Ohio State Air Quality Dev. Auth. (Ohio Power Co.) 7.4% 8/1/2009 1,551,594 11
- -------------------------------------------------------------------------------------------------------------------
10,535,156 77
- -------------------------------------------------------------------------------------------------------------------
Oklahoma--4.4%
4,000 M Central Oklahoma Transp. & Pkg. Rev. 8% 7/1/2006 4,159,160 30
Grand River Dam Authority Revenue:
9,000 M 5 3U4% 6/1/2008 9,686,250 71
5,100 M 5 1U2% 6/1/2010 5,361,375 39
13,660 M 6 1U4% 6/1/2011 15,555,325 113
20,895 M 5 1U2% 6/1/2013 21,887,513 159
1,495 M Muskogee County Home Fin. Auth. Single-Family Mtge. 7.6% 12/1/2010 1,569,750 12
1,420 M Tulsa County Home Fin. Auth. Single-Family Mtge. 7.35% 11/1/2010 1,533,600 11
- -------------------------------------------------------------------------------------------------------------------
59,752,973 435
- -------------------------------------------------------------------------------------------------------------------
Oregon--1.2%
11,000 M Oregon Health Sciences Univ. Rev. 5 1U4% 7/1/2025 10,793,750 79
6,100 M Oregon State Dept. Administrative Svcs. Certs. of Part. 5 3U8% 11/1/2016 6,054,250 44
- -------------------------------------------------------------------------------------------------------------------
16,848,000 123
- -------------------------------------------------------------------------------------------------------------------
Pennsylvania--4.5%
6,500 M Allegheny County Hospital Develop. Auth. Rev. (Magee-Womens)
Zero Cpn. 10/1/2017 1,974,375 14
1,225 M Allegheny County Rev. Fin. Auth. Mtge. Single-Family Mtge.
8% 6/1/2017 1,280,125 9
6,500 M Pennsylvania State Certificates of Participation 5% 7/1/2015 6,166,875 45
5,000 M Pennsylvania State General Obligation 6 3U4% 11/15/2013 5,606,250 41
11,200 M Pennsylvania State Ind. Dev. Auth. 5 1U2% 1/1/2014 11,326,000 82
5,000 M Pennsylvania State Turnpike Commission Turnpike Revenue
5 1U2% 12/1/2012 5,087,500 37
Philadelphia Water & Wastewater Revenue:
5,000 M 5% 6/15/2017 4,762,500 35
5,000 M 5% 6/15/2018 4,756,250 35
9,050 M Pittsburgh Water & Sewer Authority 6 1U2% 9/1/2013 10,384,875 76
1,000 M Sewickely Valley Hosp. Auth. (Sewickely Vy. Hosp.) 7 1U2% 10/1/1999* 1,128,750 8
Westmoreland County Municipal Authority Municipal Services Revenue:
10,800 M Zero Coupon 8/15/2018 3,091,500 22
8,880 M Zero Coupon 8/15/2019 2,408,700 18
5,880 M Zero Coupon 8/15/2020 1,506,750 11
5,880 M Zero Coupon 8/15/2021 1,425,900 10
5,000 M Zero Coupon 8/15/2022 1,150,000 8
- -------------------------------------------------------------------------------------------------------------------
62,056,350 451
- -------------------------------------------------------------------------------------------------------------------
Puerto Rico--1.3%
18,730 M Puerto Rico General Obligations 5% 7/1/2021 17,980,800 131
- -------------------------------------------------------------------------------------------------------------------
Rhode Island--.5%
1,000 M Rhode Island Health & Ed. Bldg. Corp. (Roger Williams Hosp.)
11 3U8% 7/1/1996* 1,037,040 8
Rhode Island Housing & Mortgage Finance Corp.:
1,000 M 8 3U8% 10/1/2013 1,051,250 8
1,500 M 8 3U8% 10/1/2016 1,576,875 11
2,500 M 8 3U8% 4/1/2019 2,628,125 19
- -------------------------------------------------------------------------------------------------------------------
6,293,290 46
- -------------------------------------------------------------------------------------------------------------------
South Dakota--.4%
4,485 M South Dakota Health & Edl. Facs. Auth. (McKennan Hosp.) 7 5U8% 7/1/2014 5,045,625 37
- -------------------------------------------------------------------------------------------------------------------
Texas--12.7%
Austin, Texas Utilities System Revenue:
Capital Appreciation:
30,465 M Zero Coupon 5/15/2018 8,872,931 64
29,410 M Zero Coupon 5/15/2019 8,087,750 59
5,120 M Series "A" 7.8% 11/15/1998* 5,715,200 42
4,280 M Series "B" 7.8% 11/15/2012 4,772,200 35
2,000 M 8 5U8% 11/15/2002* 2,452,500 18
1,000 M 8 5U8% 11/15/2002* 1,226,250 9
16,000 M 6% 11/15/2013 17,520,000 127
5,000 M Bexar County, Texas Health Facs. (Baptist Memorial) 6 3U4% 8/15/2019 5,568,750 41
10,000 M Brazos River Auth., Houston Light & Power Proj. 8.1% 5/1/2019 10,950,000 80
Brownsville Utility Systems Revenue:
3,490 M 6 1U4% 9/1/2011 3,908,800 28
5,000 M 5 1U4% 9/1/2020 4,793,750 35
9,215 M Coastal Water Auth. Water Conveyance System 8 1U8% 12/15/1997* 9,917,644 72
Harris County Toll Road Senior Lien:
3,355 M Series "B" 6 5U8% 8/15/1997* 3,560,494 26
8,375 M Series "A" 6 1U2% 8/15/2002* 9,474,219 69
11,065 M Series "A" 6 1U2% 8/15/2012 12,697,087 92
7,305 M Series "A" 6 1U2% 8/15/2013 8,327,700 61
Houston Water Conveyance System Certificates of Participation:
2,250 M 6 1U4% 12/15/2012 2,517,187 18
4,705 M 6 1U4% 12/15/2013 5,193,144 38
4,350 M 6 1U4% 12/15/2014 4,844,813 35
5,860 M 6 1U4% 12/15/2015 6,548,550 48
2,750 M Kerrville Electric System Rev. 8 3U8% 11/1/1997* 3,011,250 22
4,720 M North Cent. Texas Hlth. Fac. Dev. Corp. (Presbyt. "A" & "B")
8 7U8% 12/1/1997* 5,227,400 38
1,500 M Northeast Hospital Auth. Rev. (Northeast Med. Ctr. Hosp.) 8 1U8% 7/1/1998* 1,668,750 12
Rio Grande Valley Hlth. Fac. Dev. Corp. (Valley Baptist Med. Ctr.):
3,910 M 8% 8/1/1998* 4,349,875 32
5,300 M 6.4% 8/1/2012 5,697,500 41
1,500 M Sabine River Auth. Poll. Control (Texas Util. Co. Proj.) 7 3U4% 4/1/2016 1,539,840 11
San Antonio Electric & Gas Revenue:
3,000 M 8% 2/1/1998* 3,288,750 24
1,850 M 10 1U2% 2/1/1998* 2,118,250 15
1,800 M Texas Health Facs. Dev. Corp. (Fort Worth Med. Ctr.) 8 1U8% 6/1/1998* 1,998,000 15
5,000 M Texas Public Fin. Auth. 6.2% 2/1/2005 5,518,750 40
2,700 M Texas Public Ppty. Fin. Corp. Rev. (Mental Health & Retardation)
7 7U8% 1/1/1998* 2,899,125 21
- -------------------------------------------------------------------------------------------------------------------
174,266,459 1,268
- -------------------------------------------------------------------------------------------------------------------
Utah--1.1%
Intermountain Power Agency (Utah Power Supply):
4,000 M Series C, 8 3U8% 7/1/1997* 4,330,000 31
2,500 M Series D, 8 3U8% 7/1/2012 2,706,250 20
2,000 M Provo, Utah Electric System Revenue 10 3U8% 9/15/2015 3,000,000 22
Salt Lake County Water Conservancy District Revenue:
3,800 M Zero Cpn. 10/1/2011 1,638,750 12
3,800 M Zero Cpn. 10/1/2012 1,553,250 11
3,760 M Zero Cpn. 10/1/2013 1,447,600 11
- -------------------------------------------------------------------------------------------------------------------
14,675,850 107
- -------------------------------------------------------------------------------------------------------------------
Virginia--.9%
11,000 M Hanover County Indl. Dev. Auth. (Mem. Regl. Med. Ctr. Proj.)
6 3U8% 8/15/2018 12,567,500 91
- -------------------------------------------------------------------------------------------------------------------
Washington--2.4%
2,710 M Benton County Public Utilties District #001 11 5U8% 11/1/1997* 3,065,688 22
5,000 M Tacoma Electric System Revenue 8% 1/1/1998* 5,468,750 40
Washington Public Power Supply System:
5,000 M Project No. 2 - 7 3U8% 7/1/2000* 5,712,500 42
4,960 M Project No. 2 - 7 3U8% 7/1/2001* 5,704,000 41
934 M Project Nos. 4 & 5 - 8 1U2% 7/1/2017 (Defaulted) (Note 1A) 934,080 7
5,000 M Washington State General Obligation 6.4% 6/1/2017 5,700,000 41
2,500 M Washington State Hlth. & Educ. Facs. (Mason Med. Ctr.) 8% 7/1/2015 2,690,625 20
3,900 M Washington State Hsg. Fin. Comm. Single-Family Mtge. 7.7% 7/1/2016 4,129,125 30
- -------------------------------------------------------------------------------------------------------------------
33,404,768 243
- -------------------------------------------------------------------------------------------------------------------
West Virginia--1.0%
1,050 M West Virginia State Hosp. Fin. Auth. (Monongalia Hosp.) 8 1U2% 7/1/1997* 1,118,250 8
13,885 M West Virginia Water Development Authority 5% 11/1/2018 12,965,119 94
- -------------------------------------------------------------------------------------------------------------------
14,083,369 102
- -------------------------------------------------------------------------------------------------------------------
Wisconsin--2.4%
5,000 M Superior, Wisconsin Ltd. Oblig. Rev. (Midwest Energy) 6.9% 8/1/2021 6,043,750 44
Wisconsin Housing & Economic Development Authority:
1,435 M 7 1U2% 9/1/2017 1,495,988 11
4,145 M 7.6% 9/1/2017 4,378,156 32
14,840 M 7 3U4% 9/1/2017 15,730,400 115
1,545 M Wisconsin Municipal Insurance Comm. Rev. 8.7% 4/1/2007 1,658,944 12
Wisconsin State Health & Educational Facilities Authority Revenue:
2,000 M Hospital Sisters Services Inc. 7 5U8% 11/15/1998* 2,225,000 16
1,500 M Novus Health Group 8% 12/1/1998* 1,683,750 12
- -------------------------------------------------------------------------------------------------------------------
33,215,988 242
- -------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $1,244,526,025) 1,368,428,096 9,955
- -------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.1%
Michigan--.9%
13,000 M Michigan State Underground Storage Tank Fin. Auth. Floating Rate
Note 5.15%** 13,000,000 94
- -------------------------------------------------------------------------------------------------------------------
New York--.1%
2,000 M New York City General Obligation Floating Rate Note 5%** 2,000,000 14
- -------------------------------------------------------------------------------------------------------------------
Tennessee--.1%
1,000 M Hamilton Cnty, Tenn. Ind'l Dev. Rev. Floating Rate Note 5.3%** 1,000,000 7
- -------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments (cost $16,000,000) 16,000,000 115
- -------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $1,260,526,025) 100.7% 1,384,428,096 10,070
Excess of Liabilities Over Other Assets (.7) (9,656,916) (70)
- -------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,374,771,180 $10,000
============== ===============
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Floating Rate Notes are determined and reset at least weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1995.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
December 31, 1995
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities, at value (identified cost $1,260,526,025)
(Note 1A) $1,384,428,096
Cash 132,381
Receivables:
Interest $ 24,233,847
Investment securities sold 5,319,292
Capital shares sold 574,692 30,127,831
--------------
Other assets 81,733
--------------
Total Assets 1,414,770,041
Liabilities
Payables:
Investment securities purchased 36,154,107
Capital shares redeemed 1,334,164
Dividend payable January 10, 1996 1,257,076
Accrued advisory fee 788,845
Accrued expenses 464,669
--------------
Total Liabilities 39,998,861
--------------
Net Assets (Note 4):
Class A (132,331,251 shares outstanding) 1,372,751,820
Class B (194,664 shares outstanding) 2,019,360 $1,374,771,180
-------------- ===============
Net Assets Consist of:
Capital paid in $1,264,512,987
Undistributed net investment income 232,483
Accumulated net realized loss on investment transactions (13,876,361)
Net unrealized appreciation in value of investments 123,902,071
--------------
Total $1,374,771,180
===============
Net asset value and redemption price per share--Class A $10.37
======
Maximum offering price per share--Class A ($10.37/.9375)* $11.06
======
Net asset value and offering price per share--Class B $10.37
======
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
Year Ended December 31, 1995
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Interest income $ 86,308,137
Expenses (Notes 1 and 3):
Advisory fee $ 9,356,534
Distribution plan expenses-Class A 3,936,480
Distribution plan expenses-Class B 9,876
Shareholder servicing costs 1,037,407
Bond insurance premiums 322,978
Reports and notices to shareholders 127,623
Custodian fees 119,117
Professional fees 87,258
Other expenses 421,114
------------
Total expenses 15,418,387
Less: Custodian fees paid indirectly 53,091
------------
Net expenses 15,365,296
------------
Net investment income 70,942,841
Realized and Unrealized Gain (Loss) on Investments (Note 2):
Net realized gain on investments 8,136,087
Net unrealized appreciation of investments 122,110,841
------------
Net gain on investments 130,246,928
------------
Net Increase in Net Assets Resulting from Operations $201,189,769
===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
- ---------------------------------------------------------------------------------------------------------
Year Ended December 31 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 70,942,841 $ 78,721,451
Net realized gain (loss) on investments 8,136,087 (21,856,239)
Net unrealized appreciation (depreciation) of investments 122,110,841 (141,170,233)
-------------- --------------
Net increase (decrease) in net assets resulting from operations 201,189,769 (84,305,021)
-------------- --------------
Dividends to Shareholders from:
Net investment income--Class A (71,159,718) (78,422,877)
Net investment income--Class B (44,535) --
-------------- --------------
Total dividends (71,204,253) (78,422,877)
-------------- --------------
Capital Share Transactions (a)
Class A:
Proceeds from shares sold 68,618,192 98,224,276
Value of dividends reinvested 55,351,361 61,033,013
Cost of shares redeemed (182,664,583) (202,387,164)
-------------- --------------
(58,695,030) (43,129,875)
-------------- --------------
Class B:
Proceeds from shares sold 2,088,764 --
Value of dividends reinvested 34,823 --
Cost of shares redeemed (179,527) --
-------------- --------------
1,944,060 --
-------------- --------------
Net decrease from capital share transactions (56,750,970) (43,129,875)
-------------- --------------
Net increase (decrease) in net assets 73,234,546 (205,857,773)
Net Assets
Beginning of year 1,301,536,634 1,507,394,407
-------------- --------------
End of year (including undistributed net investment income of
$232,483 and $493,895, respectively) $1,374,771,180 $1,301,536,634
============= ==============
(a)Capital shares issued and redeemed
Class A:
Sold 6,907,266 9,853,687
Issued for dividends reinvested 5,532,051 6,238,112
Redeemed (18,333,002) (20,662,077)
-------------- --------------
Net decrease in Class A shares outstanding (5,893,685) (4,570,278)
=========== ==============
Class B:
Sold 209,525 --
Issued for dividends reinvested 3,441 --
Redeemed (18,302) --
-------------- --------------
Net increase in Class B shares outstanding 194,664 --
============== ===============
See notes to financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS INSURED TAX EXEMPT 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 to provide a high level of interest income which is exempt
from federal income tax.
A. Security Valuation-The Municipal Bonds in which the Fund invests are
traded primarily in the over-the-counter markets. Such securities are
valued daily at their fair value on the basis of valuations provided by
a pricing service approved by the Board of Directors. The pricing
service considers security type, rating, market condition and yield
data, as well as market quotations and prices provided by market makers.
"When Issued Securities" are reflected in the assets of the Fund as of
the date the securities are purchased.
The Fund's Municipal Bonds are insured as to payment of principal and
interest by the issuer or under insurance policies written by
independent insurance companies. It is the intention of the Fund to
retain any insured securities which are in default or in significant
risk of default and to place a value on the defaulted securities equal
to the value of similar securities which are not in default.
B. Federal Income Taxes-It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute exempt-
interest dividends, by complying with the provisions available to
certain investment companies, as defined in the Internal Revenue Code,
and to make distributions of income and net realized capital gains (in
excess of any available capital loss carryovers), sufficient to relieve
it from all, or substantially all, federal income taxes. At December
31, 1995, the Fund had a capital loss carryover of $13,869,892 expiring
in the year 2002.
C. Distributions to Shareholders-Dividends from net investment income
are declared daily and paid monthly. Distributions from net realized
capital gains are normally 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 losses.
D. Security Transactions and Investment Income-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. Interest
income is earned from settlement date and recorded on the accrual basis.
Estimated expenses are accrued daily. The Fund's Custodian has provided
credits in the amount of $53,091 against custodian charges based on the
uninvested cash balances of the Fund.
2. Securities Transactions-For the year ended December 31, 1995,
purchases and sales of investment securities, other than United States
Government obligations and short-term notes, aggregated $494,660,447 and
$562,561,301, respectively.
At December 31, 1995, the cost of investments for federal income tax
purposes was $1,260,532,495. Accumulated net unrealized appreciation on
investments was $123,895,601, consisting of $123,904,051 gross
unrealized appreciation and $8,450 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") and/or its transfer
agent, Administrative Data Management Corp. ("ADM"). Officers and
directors of the Fund received no remuneration from the Fund for serving
in such capacity. 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% of 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.
Pursuant to certain state regulations, FIMCO has agreed to reimburse the
Fund if and to the extent that the Fund's aggregate operating expenses,
including the advisory fee but generally excluding interest, bond
insurance premiums, taxes, brokerage commissions and extraordinary
expenses, exceed any limitation on expenses applicable to the Fund in
those states (unless waivers of such limitation have been obtained). The
amount of any such reimbursement is limited to the amount of the yearly
advisory fee. For the year ended December 31, 1995, no reimbursement was
required pursuant to these provisions.
For the year ended December 31, 1995, FIC, as underwriter, received
$698,289 in commissions, after allowing $87,383 to other dealers.
Shareholder servicing costs included $842,095 in transfer agent fees
paid to ADM.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940
Act, the Fund is authorized to pay FIC a fee equal to .30% of the
average net assets of the Class A shares and 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.
4. 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 500,000,000
shares originally authorized, the Fund has designated 300,000,000 shares
as Class A and 200,000,000 shares as Class B.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS INSURED TAX EXEMPT FUND, 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.
- ------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------------------------------- -------
Year Ended December 31 1/12/95*
-----------------------------------------------------------------------
to
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 2/31/95
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data
--------------
Net Asset Value,
Beginning of Year $ 9.42 $10.56 $10.32 $10.22 $ 9.92 $10.03 $ 9.91 $ 9.64 $10.14 $ 9.48 $ 9.48
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations
Net investment income .52 .56 .60 .65 .69 .70 .71 .72 .72 .75 .44
Net realized and unrealized gain
(loss) on investments .96 (1.15) .40 .15 .30 (.11) .12 .27 (.50) .68 .89
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Investment
Operations 1.48 (.59) 1.00 .80 .99 .59 .83 .99 .22 1.43 1.33
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less Distributions from:
Net investment income .53 .55 .61 .65 .69 .70 .71 .72 .72 .76 .44
Net realized gains -- -- .15 .05 -- -- -- -- -- .01 --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions .53 .55 .76 .70 .69 .70 .71 .72 .72 .77 .44
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Year $10.37 $ 9.42 $10.56 $10.32 $10.22 $ 9.92 $10.03 $ 9.91 $ 9.64 $10.14 $10.37
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return(%)+ 16.01 (5.61) 9.88 8.05 10.26 6.13 8.64 10.61 2.33 15.51 14.27
Ratios/Supplemental Data
Net Assets, End of Year
(in millions) $1,373 $1,302 $1,507 $1,363 $1,208 $1,132 $1,079 $971 $853 $730 $2
Ratio to Average Net Assets:(%)
Expenses 1.14 1.18 1.15 1.16 1.13 1.14 1.01 1.04 1.13 1.02 1.88(a)
Net investment income 5.25 5.64 5.69 6.32 6.82 7.03 7.16 7.33 7.39 7.75 4.45(a)
Portfolio Turnover Rate(%) 37 57 58 52 34 28 26 43 18 16 37
* Date shares first offered
+ Calculated without sales charges
(a) Annualized
See notes to financial statements
</TABLE>
Independent Auditor's Report
To the Shareholders and Board of Directors of
First Investors Insured Tax Exempt Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
First Investors Insured Tax Exempt Fund, Inc., including the portfolio
of investments, as of December 31, 1995, 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, 1995, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of First Investors Insured Tax Exempt Fund, Inc. at
December 31, 1995, and the results of its operations, changes in its net
assets and financial highlights for each of the respective years
presented, in conformity with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1996
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
Concetta Durso
Vice President and Secretary
Clark D. Wagner
Vice President
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
Shareholder Information
- ----------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart, LLP
1800 M Street, 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.
FIRST
INVESTORS
INSURED
TAX EXEMPT
FUND, INC.
ANNUAL REPORT
DECEMBER 31, 1995
Vertically reading from the bottom to top in the center of the page the
words "First Investors" appear.
The following language appears to the left of the above language:
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379 in a box to
the right of a circle containing the words "MAILED FROM ZIP CODE 11201"
appears on the righthand side.
The following language appears on the lefthand side:
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
95 WALL STREET
NEW YORK, NY 10005
The following appears on the bottom lefthand side:
First Investors logo
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FITE113
