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INSURED INTERMEDIATE TAX EXEMPT
INSURED TAX EXEMPT
NEW YORK INSURED TAX FREE
MULTI-STATE INSURED TAX FREE
ARIZONA MARYLAND NORTH CAROLINA
CALIFORNIA MASSACHUSETTS OHIO
COLORADO MICHIGAN OREGON
CONNECTICUT MINNESOTA PENNSYLVANIA
FLORIDA MISSOURI VIRGINIA
GEORGIA NEW JERSEY
TAX EXEMPT FUNDS
ANNUAL REPORT
DECEMBER 31, 1998
Portfolio Manager's Letter
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
FIRST INVESTORS INSURED TAX EXEMPT FUND, INC.
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina,
Ohio, Oregon, Pennsylvania and Virginia Funds
Dear Investor:
We are pleased to present the annual report for the First Investors Insured
Intermediate Tax Exempt Fund, First Investors Insured Tax Exempt Fund,
Inc., First Investors New York Insured Tax Free Fund, Inc. and First
Investors Multi-State Insured Tax Free Fund (collectively, "the Funds") for
the fiscal year ending December 31, 1998.
As was the case with other financial markets, 1998 was a unique year for
the municipal bond market. Despite an 80 basis point (.8%) decline in
30-year Treasury bond rates, long-term municipal bond yields fell only
15 basis points. New issue supply overwhelmed demand as fiscally strong
municipalities issued a record amount of "new money" bonds and refunding
volume soared in response to historically low rates. 1998's $284 billion of
issuance was the second largest in the market's history, surpassed only by
1993's total of $292 billion. Supply cheapened municipal bonds relative to
Treasuries, with long-term insured municipal bonds yielding more than
Treasury bonds, a relationship previously seen only in the mid-1980s, when
tax reform legislation threatened municipal bonds with the loss of their
tax-exempt status. Nonetheless, in early October long-term municipal bond
yields reached their lowest level since the 1960s, and municipal bonds had
greater after-tax returns (for those in higher tax brackets) for the year
than those of most taxable bonds.
We are pleased to report that in 1998, the return of each Fund in the
annual report exceeded its peer group's average return as reported by
Lipper Inc., with the exception of the Massachusetts and Ohio Funds. For
1998, the Funds had the following returns on a net asset value basis on
Class A shares and Class B shares, respectively: Insured Intermediate Tax
Exempt Fund 6.5% and 5.6%, Insured Tax Exempt Fund 5.6% and 4.8%, New York
5.6% and 4.8%, Arizona 6.2% and 5.3%, California 6.3% and 5.4%, Colorado
6.3% and 5.5%, Connecticut 6.2% and 5.2%, Florida 6.1% and 5.2%, Georgia
6.1% and 5.2%, Maryland 6.4% and 5.5%, Massachusetts 5.3% and 4.6%,
Michigan 5.6% and 4.7%, Minnesota 6.2% and 5.4%, Missouri 6.6% and 5.7%,
New Jersey 5.8% and 5.0%, North Carolina 6.7% and 5.8%, Ohio 5.3% and 4.5%,
Oregon 6.3% and 5.6%, Pennsylvania 5.2% and 4.4%, and Virginia 5.7% and
4.8%.
The principal factors affecting the Funds' performance were falling
interest rates and near-record issuance of municipal bonds. The multi-year
accumulation of non-callable bonds by the Funds allowed them to maintain
long durations relative to their peer groups, as long-term municipal bond
yields fell to 30-year lows. This resulted in higher returns to the Funds
than would have been achieved had they held callable bonds. The Funds also
were substantially fully invested throughout the year, which maximized
current income and helped total return to the extent that interest rates
fell.
Every Fund outperformed its peer group average during the second half of
the year, when the bulk of the decline in interest rates occurred. In
addition, the duration of several Funds (Insured Tax Exempt, New York Tax
Free, Florida, Massachusetts, and New Jersey) was increased prior to the
market's rally in the third quarter. Finally, Insured Intermediate Tax
Exempt and, to a lesser extent, some of the Multi-State Funds, benefited
from trading opportunities created by heavy new issue supply and strong
retail demand. In the case of Massachusetts, the Fund held too many high-
coupon/short-call date bonds, which delivered below-average total returns,
particularly during the first half of 1998. Restructuring of the Fund
resulted in substantially better performance during the second half of the
year. The Ohio Fund had two months of poor performance due to positions in
both non-callable bonds (May) and high-coupon callable and non-callable
bonds (December).
Investors who buy bond funds - whether for income or total return - should
be aware that the value of their investment will fluctuate as interest
rates change. Also, the value of a fund can fluctuate based on changes in
the credit quality of the bonds it holds. In addition, while the Funds'
municipal bonds are insured as to timely payment of principal and interest,
the insurance does not protect the bonds against changes in market value.
Investors should be aware of these risks and recognize that successful
investing generally requires a long-term commitment to the market.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
January 29, 1999
Cumulative Performance Information
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
Comparison of change in value of $10,000 investment in the First Investors
Insured Intermediate Tax Exempt Fund (Class A shares) and the Lehman Brothers
Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
INSURED
INTERMEDIATE
TAX EXEMPT LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
NOV 93 9,375 10,000
DEC 93 9,375 10,211
DEC 94 9,177 9,683
DEC 95 10,416 11,386
DEC 96 10,840 11,870
DEC 97 11,672 12,961
DEC 98 12,426 13,801
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.47% (.26%)
Five Years 5.73% 4.36%
Since Inception
(11/22/93) 5.68% 4.34%
S.E.C. 30-Day Yield 3.34%
Class B Shares
One Year 5.57% 1.57%
Since Inception
(1/12/95) 6.85% 6.23%
S.E.C. 30-Day Yield 2.37%
The graph compares a $10,000 investment in the First Investors Insured
Intermediate Tax Exempt Fund (Class A shares) beginning 11/22/93 (inception
date) with a theoretical investment in the Lehman Brothers Municipal Bond
Index. 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. The Index does
not take into account fees and expenses or cost of insurance of bonds held by
an insured tax-exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 1/12/95 the maximum sales charge was 3.5%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the Class
A "S.E.C. Standardized" Average Annual Total Return for One Year, Five Years
and Since Inception would have been (.92%), 3.49% and 3.48%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.69%. The
Class B "S.E.C. Standardized" Average Annual Total Return for One Year and
Since Inception would have been 1.19% and 5.67%, respectively, and the S.E.C.
30-Day Yield for December 1998 would have been 1.99%. 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 INTERMEDIATE TAX EXEMPT FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.4%
Alaska--2.3%
$ 200M Anchorage General Obligation 6 1/2% 7/1/2004 $ 225,000 $ 233
- -----------------------------------------------------------------------------------------------------------------
Arizona--8.7%
255M Apache Junction Water Utilities Revenue 5% 7/1/2003 266,794 276
250M Maricopa County Uni. Sch. Dist. Gen. Oblig. #80
(Chandler) 6.6% 7/1/2006 290,000 300
250M Phoenix Civic Impt. Corp. Mun. Facs. Excise Tax Rev.
6 3/4% 7/1/2004 284,652 294
- -----------------------------------------------------------------------------------------------------------------
841,446 870
- -----------------------------------------------------------------------------------------------------------------
California--1.7%
150M Pittsburg Pub. Fing. Auth. Wastewater Rev. 6.8%
6/1/2001* 163,875 169
- -----------------------------------------------------------------------------------------------------------------
Georgia--4.2%
400M Savannah Hospital Authority (St. Joseph's/Chandler
Health System) 4.3% 7/1/2006 403,500 417
- -----------------------------------------------------------------------------------------------------------------
Illinois--18.3%
250M Chicago Board of Education 6% 12/1/2007 281,875 291
250M Chicago General Obligation 6 1/4% 10/31/2001 267,152 276
Cook County High School District
General Obligation #205:
250M 5.4% 12/1/2001 261,875 271
200M 5.9% 12/1/2001* 212,000 219
250M Northwest Subn. Mun. Jt. Action Water Agy. 6.35%
5/1/2006 285,000 295
400M Regional Transportation Authority 7 3/4% 6/1/2003 460,500 476
- -----------------------------------------------------------------------------------------------------------------
1,768,402 1,828
- -----------------------------------------------------------------------------------------------------------------
Indiana--1.7%
150M Valparaiso Indpt. Multi-Schools Bldg. Corp. 6 5/8%
7/1/2002* 166,687 172
- -----------------------------------------------------------------------------------------------------------------
Kentucky--2.7%
200M Louisville & Jefferson County Met. Sewer District 10%
5/15/2004 257,750 266
- -----------------------------------------------------------------------------------------------------------------
Louisiana--1.9%
175M Louisiana General Obligation 7% 5/1/2001 187,688 194
- -----------------------------------------------------------------------------------------------------------------
Michigan--11.7%
300M Allegan Pub. Schl. Dist. Gen. Oblig. 6 1/2% 5/1/2007 348,375 360
1,000M Brighton Area Schl. Dist. Gen. Oblig. Zero Coupon
5/1/2005* 380,000 393
350M Greater Detroit Resources Recovery Authority Revenue
6 1/4% 12/13/2007 401,187 415
- -----------------------------------------------------------------------------------------------------------------
1,129,562 1,168
- -----------------------------------------------------------------------------------------------------------------
New Jersey--10.7%
400M Jersey City Mun. Utils. Auth. Sewer Rev. 4 3/8%
12/1/2009 402,000 415
200M New Jersey Econ. Dev. Auth. Mkt. Transition Fac. Rev.
7% 7/1/2004* 231,000 239
400M New Jersey Health Care Facs. Fing. Auth.
(Virtua Health Inc.) 4.2% 7/1/2006 402,500 416
- -----------------------------------------------------------------------------------------------------------------
1,035,500 1,070
- -----------------------------------------------------------------------------------------------------------------
New York--6.6%
New York City General Obligation:
150M 6 5/8% 8/1/2002* 166,312 172
250M 8% 8/1/2005 304,688 315
150M Niagara Falls Bridge Commission 6.3% 10/1/2002* 165,750 171
- -----------------------------------------------------------------------------------------------------------------
636,750 658
- -----------------------------------------------------------------------------------------------------------------
North Carolina--5.5%
200M University of North Carolina System Pool Revenue 4%
10/1/2008 196,250 203
325M Winston Salem State University Revenue 4 1/2%
1/1/2008 331,500 343
- -----------------------------------------------------------------------------------------------------------------
527,750 546
- -----------------------------------------------------------------------------------------------------------------
Ohio--2.3%
200M Columbus City Sch. Dist. Gen. Oblig. 6.65% 12/1/2002* 224,750 233
- -----------------------------------------------------------------------------------------------------------------
Oklahoma--2.7%
250M Oklahoma State Cap. Impt. Auth. Lease Rev. 4 1/2%
5/1/2007 257,500 266
- -----------------------------------------------------------------------------------------------------------------
Oregon--1.7%
150M Tillamook General Obligation 5 3/4% 1/15/2002 159,375 165
- -----------------------------------------------------------------------------------------------------------------
Pennsylvania--2.4%
200M Pennsylvania Intergovernmental Coop. Auth. Spec.
Tax Rev. 7% 6/15/2004 229,500 237
- -----------------------------------------------------------------------------------------------------------------
Rhode Island--1.1%
100M Rhode Island Depositors Econ. Protection Corp. 7.1%
8/1/2001* 110,250 114
- -----------------------------------------------------------------------------------------------------------------
Tennessee--2.3%
225M Greater Dickson Gas Auth. Tenn. Gas System Rev.
4 1/4% 1/1/2008 225,562 233
- -----------------------------------------------------------------------------------------------------------------
Texas--3.4%
300M Harris County Toll Road General Obligation 6 1/2%
8/15/2002* 333,000 344
- -----------------------------------------------------------------------------------------------------------------
Virginia--4.1%
400M Virginia College Bldg. Auth. (Hampton University Proj.)
4.1% 4/1/2007 396,000 410
- -----------------------------------------------------------------------------------------------------------------
Washington--2.4%
200M Snohomish & Island Counties Schl. Dist. Gen. Oblig.
#401 (Stanwood) 7% 12/15/2005 234,250 242
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $9,066,176) 98.4% 9,514,097 9,835
Other Assets, Less Liabilities 1.6 159,877 165
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,673,974 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
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.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
INSURED TAX LEHMAN BROTHERS
EXEMPT FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,174 11,079
DEC 90 10,819 11,886
DEC 91 11,928 13,330
DEC 92 12,876 14,505
DEC 93 14,149 16,286
DEC 94 13,355 15,444
DEC 95 15,494 18,161
DEC 96 15,930 18,932
DEC 97 17,247 20,672
DEC 98 18,216 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.62% (1.02%)
Five Years 5.18% 3.84%
Ten Years 6.87% 6.18%
S.E.C. 30-Day Yield 3.01%
Class B Shares
One Year 4.83% .83%
Since Inception
(1/12/95) 7.15% 6.53%
S.E.C. 30-Day Yield 2.49%
The graph compares a $10,000 investment in the First Investors Insured
Tax Exempt Fund, Inc. (Class A shares) beginning 1/1/89 with a theoretical
investment in the Lehman Brothers Municipal Bond Index. 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. The Index does not take into account
fees and expenses or cost of insurance of bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman Brothers
Municipal Bond Index. 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 for Class A
shares 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 12/31/98)
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 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, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.3%
Alaska--.5%
$ 8,000M North Slope Boro, Alaska General Obligation
Zero Coupon 6/30/2005 $ 6,110,000 $ 54
- -----------------------------------------------------------------------------------------------------------------
Arizona--1.0%
8,550M Arizona State Municipal Financing Program Ctfs.
of Partn. 7.7% 8/1/2010 10,805,063 96
- -----------------------------------------------------------------------------------------------------------------
California--6.4%
2,750M California Public Capital Improv. Fin. Auth. 8.1%
3/1/2018 2,803,185 25
15,770M California State Public Works Board Lease Rev.
Dept. of Corrections 5% 12/1/2019 16,006,550 143
4,220M Long Beach Finance Authority 6% 11/1/2017 4,858,275 43
10,000M San Francisco City & County Redev. Agcy. 6 3/4%
7/1/2025 11,559,750 103
5,000M San Jose Redevelopment Agency Tax Allocation 6%
8/1/2015 5,756,250 51
Santa Clara County Financing Authority:
5,000M 7 3/4% 11/15/2010 6,575,000 59
8,900M 5 3/4% 11/15/2013 10,090,375 90
6,220M South Orange County Public Financing Authority
6 1/2% 8/15/2010 7,440,675 66
5,000M Walnut Valley Unified School District 7.2% 2/1/2016 6,275,000 56
- -----------------------------------------------------------------------------------------------------------------
71,365,060 636
- -----------------------------------------------------------------------------------------------------------------
Colorado--.5%
5,000M Denver City & County Airport Revenue 6%
11/15/2013 5,768,750 51
- -----------------------------------------------------------------------------------------------------------------
Connecticut--2.7%
Connecticut Special Tax Obligation Revenue:
13,500M 6 1/2% 10/1/2011 16,115,625 144
9,000M 6 1/8% 9/1/2012 10,473,750 93
3,400M Connecticut State Dev. Auth. Rev. (Seabury Project)
5% 9/1/2021 3,349,000 30
- -----------------------------------------------------------------------------------------------------------------
29,938,375 267
- -----------------------------------------------------------------------------------------------------------------
Delaware--.7%
7,000M Delaware State Econ. Dev. Auth. Rev. Pollution
Control 7.15% 7/1/2018 7,638,750 68
- -----------------------------------------------------------------------------------------------------------------
District of Columbia--2.3%
Washington D.C. General Obligation:
5,495M Series "A" 6 1/2% 6/1/2009 6,408,543 57
12,765M Series "E" 6% 6/1/2012 13,722,375 122
5,030M Series "E" 6% 6/1/2016 5,671,325 51
- -----------------------------------------------------------------------------------------------------------------
25,802,243 230
- -----------------------------------------------------------------------------------------------------------------
Florida--4.6%
Escambia County Utilities Authority:
5,485M 6 1/4% 1/1/2012 6,486,013 58
5,360M 6 1/4% 1/1/2013 6,331,500 56
Florida State Board of Education Lottery Revenue:
3,245M RITES-PA 371B Variable Rate 5.16006%
7/1/2012 (Note 6)** 3,549,219 32
3,410M RITES-PA 371C Variable Rate 5.16006%
7/1/2013 (Note 6)** 3,670,013 33
10,000M Lakeland, Florida Electric & Water Revenue 6%
10/1/2012 11,650,000 104
4,500M Orlando Regional Healthcare 6 1/4% 10/1/2021 5,338,125 48
Sunrise Utilities System Revenue:
1,500M 10 1/4% 10/1/2000* 1,672,500 15
1,500M 10 3/4% 10/1/2000* 1,683,750 15
9,000M 5% 10/1/2028 9,022,500 80
1,395M West Coast Regional Water Supply Auth. 10.4%
10/1/2010* 1,946,025 17
- -----------------------------------------------------------------------------------------------------------------
51,349,645 458
- -----------------------------------------------------------------------------------------------------------------
Georgia--8.2%
Fulton County Water & Sewer Revenue:
6,160M 6 3/8% 1/1/2014 7,268,800 65
6,015M RITES-PA374 Variable Rate 5.43699% 1/1/2014
(Note 6)** 6,481,162 58
Georgia Municipal Electric Authority Power Revenue:
5,000M 6 1/4% 1/1/2012 5,818,750 52
5,000M 7 1/4% 1/1/2024 6,681,250 59
Metropolitan Atlanta Rapid Transit Authority:
7,500M 6 3/4% 7/1/2004* 8,671,875 77
20,450M 6 1/4% 7/1/2011 24,003,187 214
28,605M 6% 7/1/2013 32,788,481 292
- -----------------------------------------------------------------------------------------------------------------
91,713,505 817
- -----------------------------------------------------------------------------------------------------------------
Hawaii--2.6%
Hawaii State General Obligation:
5,500M 6% 10/1/2009 6,263,125 56
6,000M 6% 10/1/2010 6,840,000 61
4,660M RITES-PA 358A Variable Rate 5.43699%
4/1/2011 (Note 6)** 5,271,625 47
2,000M RITES-PA 358B Variable Rate 5.43699%
4/1/2012 (Note 6)** 2,225,000 20
1,865M RITES-PA 358C Variable Rate 5.43699%
4/1/2013 (Note 6)** 2,042,175 18
6,000M Honolulu General Obligation 5 3/4% 4/1/2012 6,697,500 59
- -----------------------------------------------------------------------------------------------------------------
29,339,425 261
- -----------------------------------------------------------------------------------------------------------------
Illinois--12.8%
Chicago Board of Education Lease Certificates:
5,000M 6% 1/1/2016 5,631,250 50
33,200M 6% 1/1/2020 37,557,500 334
Chicago General Obligation:
7,000M 6% 7/1/2005* 7,866,250 70
16,660M 6 1/8% 1/1/2016 18,388,475 164
Chicago O'Hare International Airport Revenue:
14,570M 6 3/8% 1/1/2012 16,391,250 146
10,000M 6 3/8% 1/1/2015 11,150,000 99
16,750M Illinois Development Finance Auth. Poll. Control
Rev. 6 3/4% 3/1/2015 19,178,750 171
Illinois Development Finance Authority Rev.
(Rockford School 205):
3,400M 6.55% 2/1/2009 3,990,750 36
5,000M 6.6% 2/1/2010 5,931,250 53
3,000M 6.65% 2/1/2011 3,566,250 32
4,000M Regional Transportation Authority 7 3/4% 6/1/2019 5,415,000 48
Will County School District General Obligation:
3,600M 7% 12/1/2007 4,324,500 39
2,080M 7.05% 12/1/2008 2,527,200 22
1,175M 7.1% 12/1/2009 1,443,781 13
- -----------------------------------------------------------------------------------------------------------------
143,362,206 1,277
- -----------------------------------------------------------------------------------------------------------------
Indiana--.7%
4,070M Delaware County Hosp. Auth. (Ball Memorial Hosp.)
6 5/8% 8/1/2001* 4,436,300 40
3,555M Indiana Housing Fin. Auth. Single-Family Mtge.
Rev. 7.6% 1/1/2016 3,710,531 33
- -----------------------------------------------------------------------------------------------------------------
8,146,831 73
- -----------------------------------------------------------------------------------------------------------------
Louisiana--4.1%
Louisiana State General Obligation:
14,555M 6% 5/1/2004* 16,174,244 144
14,000M 6% 5/1/2004* 15,557,500 139
8,050M 6.1% 5/1/2004* 8,985,813 80
15,000M New Orleans Regional Transit Auth. Sales Tax Rev.
Zero Coupon 12/1/2021 4,743,750 42
- -----------------------------------------------------------------------------------------------------------------
45,461,307 405
- -----------------------------------------------------------------------------------------------------------------
Massachusetts--7.5%
4,750M Boston General Obligation 7 3/8% 2/1/2000* 5,040,700 45
10,025M Boston, Mass. Water & Sewer 5 3/4% 11/1/2013 11,265,594 100
2,300M Mass. Bay Transportation Authority Ctfs. of Partn.
7.65% 8/1/2000* 2,492,625 22
Mass. Bay Transportation Authority Gen. Sys. Rev.:
9,080M 5.8% 3/1/2012 10,237,700 91
10,775M 5.8% 3/1/2013 12,108,406 108
10,000M 5 7/8% 3/1/2015 11,325,000 101
1,500M Mass. Health & Educational Facilities Authority
(Carney Hospital) 7 3/4% 7/1/2000* 1,623,750 14
6,540M Mass. Housing Finance Agency 6% 12/1/2012 6,965,100 62
20,550M Mass. State General Obligation 6% 8/1/2009 23,529,750 210
- -----------------------------------------------------------------------------------------------------------------
84,588,625 753
- -----------------------------------------------------------------------------------------------------------------
Michigan--2.1%
10,000M Michigan State General Obligation 6 1/4% 11/1/2012 11,712,500 104
Michigan State Housing Development Auth.
Single-Family Mtge. Rev.:
3,255M 7 1/2% 6/1/2015 3,381,131 30
2,500M 7.3% 12/1/2016 2,606,250 23
4,500M Monroe County Econ. Dev. Corp. (Detroit
Edison Co.) 6.95% 9/1/2022 5,821,875 52
- -----------------------------------------------------------------------------------------------------------------
23,521,756 209
- -----------------------------------------------------------------------------------------------------------------
Minnesota--.7%
1,290M Eden Prairie Multi-Family Housing 8% 7/1/2026 1,351,275 12
1,240M St. Paul Hsg. & Red. Auth. (Como-Lake Proj.)
7 1/2% 3/1/2026 (Defaulted) (Note 1A) 1,277,287 11
4,795M University of Minnesota Series "A" 5 3/4% 7/1/2017 5,316,456 48
- -----------------------------------------------------------------------------------------------------------------
7,945,018 71
- -----------------------------------------------------------------------------------------------------------------
Mississippi--.4%
4,475M Mississippi Hosp. Equip. & Facs. Auth. Rev.
(Baptist Med. Ctr.) 7.6% 5/1/2000* 4,805,031 43
- -----------------------------------------------------------------------------------------------------------------
Missouri--2.7%
Missouri State Health & Educational Facilities Authority:
BJC Health System Series "A":
6,840M 6 3/4% 5/15/2010 8,387,550 75
10,175M 6 3/4% 5/15/2011 12,527,969 111
10,000M Lester E. Cox Medical Center Zero Coupon
9/1/2016 4,162,500 37
5,245M SSM Health Care 6 1/4% 6/1/2007 5,690,825 51
- -----------------------------------------------------------------------------------------------------------------
30,768,844 274
- -----------------------------------------------------------------------------------------------------------------
Nevada--.1%
1,200M Nevada Housing Div. Single-Family Prog. 7.6%
10/1/2018 1,245,000 11
- -----------------------------------------------------------------------------------------------------------------
New Jersey--1.7%
4,440M New Jersey Health Care Facs. Fing. Auth.
(AHS Hosp. Corp.) 6% 7/1/2013 5,117,100 46
New Jersey Housing & Mortgage Financing Revenue:
5,380M 7 1/2% 4/1/2015 5,565,287 50
8,400M 7 3/8% 10/1/2017 8,702,232 77
- -----------------------------------------------------------------------------------------------------------------
19,384,619 173
- -----------------------------------------------------------------------------------------------------------------
New Mexico--.4%
1,000M Farmington Power Rev. Gen. Dev. 9 7/8% 7/1/2005* 1,287,500 11
3,075M New Mexico Mortgage Finance Authority,
Single-Family Mortgage 8% 1/1/2017 3,119,403 28
- -----------------------------------------------------------------------------------------------------------------
4,406,903 39
- -----------------------------------------------------------------------------------------------------------------
New York--10.3%
1,930M Metropolitan Transit Authority Commuter
Facilities Revenue
RITES-PA 359C Variable Rate 5.43699%
7/1/2013 (Note 6)** 2,118,175 19
3,500M Metropolitan Transit Authority Transit Facilities
7 1/2% 7/1/2000* 3,749,375 33
22,250M New York City Municipal Water Finance Auth. Rev.
6% 6/15/2021 25,754,375 229
4,500M New York State Dorm. Auth. Revs. City Univ.
System 7 1/2% 7/1/2000* 4,848,750 43
New York State Dorm. Auth. Revs. State
Univ. System:
2,780M 7 1/4% 5/15/2000* 2,974,600 27
11,300M 7 3/8% 5/15/2014 12,062,750 108
6,585M RITES-PA 390 Variable Rate 5.43699%
7/1/2015 (Note 6)** 7,070,644 63
3,820M RITES-PA 391A Variable Rate 5.43699%
8/15/2011 (Note 6)** 4,292,725 38
1,250M RITES-PA 391B Variable Rate 5.43699%
2/15/2012 (Note 6)** 1,387,500 12
5,000M New York State General Obligation 6% 6/15/2011 5,450,000 49
6,385M New York State Housing Finance Agency Rev.
5 7/8% 11/1/2010 6,911,763 62
New York State Med. Care Facs. Fin. Agcy. Rev.:
1,340M Hosp. & Nursing 7.35% 2/15/1999* 1,400,715 12
10,500M St. Luke's Hosp. 7.45% 2/15/2000* 11,169,375 100
New York State Thruway Authority Highway &
Bridge Trust Fund:
1,500M RITES-PA 392A Variable Rate 5.43699%
4/1/2011 (Note 6)** 1,687,500 15
2,265M RITES-PA 392B Variable Rate 5.43699%
4/1/2012 (Note 6)** 2,514,150 22
1,660M RITES-PA 392C Variable Rate 5.43699%
4/1/2013 (Note 6)** 1,817,700 16
4,000M New York State Urban Dev. Corp. 7 1/2% 1/1/2000* 4,237,080 38
5,840M Suffolk County, N.Y. Indl. Dev. Agcy. Southwest
Sewer Sys. 6% 2/1/2008 6,628,400 59
Triborough Bridge & Tunnel Authority
Special Obligation:
3,910M RITES-PA 394A Variable Rate 5.46% 1/1/2011
(Note 6)** 4,379,200 39
3,540M RITES-PA 394B Variable Rate 5.46% 1/1/2012
(Note 6)** 3,916,125 35
1,295M RITES-PA 394C Variable Rate 5.46% 1/1/2013
(Note 6)** 1,403,456 12
- -----------------------------------------------------------------------------------------------------------------
115,774,358 1,031
- -----------------------------------------------------------------------------------------------------------------
North Carolina--1.8%
North Carolina Municipal Power Agency (Catawba):
8,950M 6% 1/1/2010 10,147,063 90
8,945M 6% 1/1/2011 10,219,662 91
- -----------------------------------------------------------------------------------------------------------------
20,366,725 181
- -----------------------------------------------------------------------------------------------------------------
North Dakota--1.2%
10,500M Mercer County Poll. Ctrl. Rev. (Basin Elec.
Pwr. Coop.) 7.2% 6/30/2013 13,282,500 118
- -----------------------------------------------------------------------------------------------------------------
Ohio--.1%
1,435M Ohio State Air Quality Dev. Auth. (Ohio Power Co.)
7.4% 8/1/2009 1,486,717 13
- -----------------------------------------------------------------------------------------------------------------
Oklahoma--2.4%
Grand River Dam Authority Revenue:
9,000M 5 3/4% 6/1/2008 10,125,000 90
13,000M 6 1/4% 6/1/2011 15,307,500 136
1,420M Tulsa County Home Fin. Auth. Single-Family Mtge.
7.35% 11/1/2010 1,498,100 14
- -----------------------------------------------------------------------------------------------------------------
26,930,600 240
- -----------------------------------------------------------------------------------------------------------------
Pennsylvania--2.9%
6,000M Allegheny County Hosp. Dev. Auth. (UPMC Health
Center) 6% 7/1/2024 6,885,000 61
5,000M Pennsylvania State General Obligation 6 3/4%
11/15/2013 5,681,250 51
Pennsylvania State Turnpike Commission Oil
Franchise Tax Revenue:
2,165M RITES-PA 404A Variable Rate 5.46% 12/1/2013
(Note 6)** 2,346,319 21
2,835M RITES-PA 404B Variable Rate 5.46% 12/1/2014
(Note 6)** 3,047,625 27
12,050M Pittsburgh Water & Sewer Authority 6 1/2% 9/1/2013 14,369,625 128
- -----------------------------------------------------------------------------------------------------------------
32,329,819 288
- -----------------------------------------------------------------------------------------------------------------
Puerto Rico--.5%
5,000M Puerto Rico Commonwealth Highway &
Transportation Auth. Rev. 6% 7/1/2018 5,793,750 52
- -----------------------------------------------------------------------------------------------------------------
South Dakota--.4%
3,855M South Dakota Health & Edl. Facs. Auth.
(McKennan Hosp.) 7 5/8% 7/1/2006* 4,857,300 43
- -----------------------------------------------------------------------------------------------------------------
Texas--10.1%
Austin, Texas Utilities System Revenue:
3,000M 8 5/8% 5/15/2002* 3,457,500 31
16,000M 6% 11/15/2013 18,340,000 163
30,465M Zero Coupon 5/15/2018 11,348,213 101
29,410M Zero Coupon 5/15/2019 10,367,025 92
5,000M Bexar County, Texas Health Facs. (Baptist Memorial)
6 3/4% 8/15/2004* 5,781,250 51
Harris County Toll Road Senior Lien:
8,375M Series "A" 6 1/2% 8/15/2002* 9,296,250 83
11,065M Series "A" 6 1/2% 8/15/2012 13,208,844 118
7,305M Series "A" 6 1/2% 8/15/2013 8,711,212 78
Houston Water Conveyance System Certificates
of Participation:
2,250M 6 1/4% 12/15/2012 2,646,562 24
4,705M 6 1/4% 12/15/2013 5,522,494 49
4,950M 6 1/4% 12/15/2014 5,785,312 51
6,035M 6 1/4% 12/15/2015 7,038,319 63
5,300M Rio Grande Valley Hlth. Fac. Dev. Corp.
(Valley Baptist Med. Ctr.) 6.4% 8/1/2012 5,743,875 51
5,000M Texas Public Fin. Auth. 6.2% 2/1/2005 5,581,250 50
- -----------------------------------------------------------------------------------------------------------------
112,828,106 1,005
- -----------------------------------------------------------------------------------------------------------------
Utah--.8%
2,000M Provo, Utah Electric System Revenue 10 3/8%
9/15/2015 2,962,500 26
Salt Lake County Water Conservancy
District Revenue:
3,800M Zero Coupon 10/1/2011 2,132,750 19
3,800M Zero Coupon 10/1/2012 1,990,250 18
3,760M Zero Coupon 10/1/2013 1,851,800 17
- -----------------------------------------------------------------------------------------------------------------
8,937,300 80
- -----------------------------------------------------------------------------------------------------------------
Virginia--1.2%
11,000M Hanover County Indl. Dev. Auth. (Mem. Regl.
Med. Ctr. Proj.) 6 3/8% 8/15/2018 13,048,750 116
- -----------------------------------------------------------------------------------------------------------------
Washington--1.7%
Washington Public Power Supply System:
5,000M Project No. 2 - 7 3/8% 7/1/2000* 5,381,250 48
4,960M Project No. 2 - 7 3/8% 1/1/2001* 5,400,200 48
934M Projects No. 4 & 5 - 8 1/2% 7/1/2017 (Defaulted)
(Note 1A) 937,770 8
5,000M Washington State General Obligation 6.4% 6/1/2017 5,881,250 52
1,680M Washington State Hsg. Fin. Comm. Single-Family
Mtge. 7.7% 7/1/2016 1,753,500 16
- -----------------------------------------------------------------------------------------------------------------
19,353,970 172
- -----------------------------------------------------------------------------------------------------------------
Wisconsin--2.2%
12,000M Superior, Wisconsin Limited Obligation Rev.
(Midwest Energy) 6.9% 8/1/2021 15,165,000 135
Wisconsin Housing & Economic
Development Authority:
1,275M 7 1/2% 9/1/2017 1,312,217 12
4,145M 7.6% 9/1/2017 4,326,344 39
3,935M 7 3/4% 9/1/2017 4,097,319 36
- -----------------------------------------------------------------------------------------------------------------
24,900,880 222
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $975,428,269) 1,103,357,731 9,827
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--.1%
800M New York State Energy Res. & Dev. Auth. (N.Y.S.
Electric & Gas) Adjustable Rate Note 4.80%+ 800,000 7
400M North Carolina Edl. Facs. Fin. Agy. Rev. (Bowman
Grey Medical School Project) Adjustable Rate
Note 3.95%+ 400,000 4
- -----------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $1,200,000) 1,200,000 11
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $976,628,269) 98.4% 1,104,557,731 9,838
Other Assets, Less Liabilities 1.6 18,218,555 162
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,122,776,286 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
**The interest rates on these securities (commonly referred to as inverse
floaters) vary inversely with interest rates on other municipal obligations
or an index and are reset at least weekly by the issuer. The interest rate
shown on these securities is the rate in effect at December 31, 1998.
+Interest rates on Adjustable Rate Notes are determined and reset weekly by
the issuer. Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
Comparison of change in value of $10,000 investment in the First Investors
New York Insured Tax Free Fund, Inc. (Class A shares) and the Lehman
Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
NEW YORK INSURED LEHMAN BROTHERS
TAX FREE FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,253 11,079
DEC 90 10,864 11,886
DEC 91 12,047 13,330
DEC 92 13,095 14,505
DEC 93 14,381 16,286
DEC 94 13,658 15,444
DEC 95 15,768 18,161
DEC 96 16,234 18,932
DEC 97 17,503 20,672
DEC 98 18,482 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.59% (1.01%)
Five Years 5.15% 3.80%
Ten Years 7.02% 6.33%
S.E.C. 30-Day Yield 3.18%
Class B Shares
One Year 4.84% .84%
Since Inception
(1/12/95) 6.93% 6.30%
S.E.C. 30-Day Yield 2.66%
The graph compares a $10,000 investment in the First Investors New York Tax
Free Fund, Inc. (Class A shares) beginning 1/1/89 with a theoretical
investment in the Lehman Brothers Municipal Bond Index. 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. The Index does not take into
account fees and expenses or cost of insurance of bonds held by an insured
tax-exempt bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (1.10%), 3.77% and 6.32%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 3.09%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been .74% and 6.27%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.56%. 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 NEW YORK INSURED TAX FREE FUND, INC.
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.6%
Education--18.0%
Monroe County Industrial Development Agency:
$1,430M Nazareth College Civic Facility 5 1/4% 4/1/2018 $ 1,463,962 $ 76
1,000M Rochester Institute of Technology 7 3/4% 5/1/2000* 1,075,000 56
New York State Dormitory Authority Revenues:
City University:
1,955M 5 3/4% 7/1/2013 2,196,931 114
2,000M 5 3/4% 7/1/2013 2,247,500 117
2,000M 5 3/4% 7/1/2013 2,247,500 117
3,000M 6% 7/1/2020 3,465,000 180
2,800M Manhattanville College 7 1/2% 7/1/2000* 3,017,000 156
1,000M Pace University 6 1/2% 7/1/2012 1,203,750 62
4,510M Special Act School Districts Program 5 1/4%
7/1/2015 4,690,400 243
State University Educational Facilities:
1,880M 7 1/4% 5/15/2000* 2,011,600 104
1,000M 5 7/8% 5/15/2011 1,135,000 59
3,500M 5 1/2% 5/15/2013 3,841,250 199
3,700M 7 3/8% 5/15/2014 3,949,750 205
2,000M 5 1/4% 5/15/2015 2,120,000 110
- -----------------------------------------------------------------------------------------------------------------
34,664,643 1,798
- -----------------------------------------------------------------------------------------------------------------
General Obligation--15.5%
1,250M Monroe County 6% 3/1/2015 1,425,000 74
Nassau County:
3,845M 6 1/2% 11/1/2004* 4,440,975 230
4,355M 5.7% 8/1/2012 4,708,844 244
1,300M 6% 7/1/2013 1,491,750 77
New York City:
3,355M 6.95% 8/15/2004* 3,883,412 202
3,000M 6.2% 8/1/2008 3,450,000 179
1,000M 7 1/4% 3/15/2018 1,055,000 55
Niagara Falls Public Improvement:
1,340M 7 1/2% 3/1/2012 1,752,050 91
1,680M 7 1/2% 3/1/2015 2,207,100 114
1,600M 7 1/2% 3/1/2018 2,124,000 110
1,750M North Hempstead 6.4% 4/1/2012 2,097,812 109
1,100M Puerto Rico Commonwealth 6 1/4% 7/1/2013 1,310,375 68
- -----------------------------------------------------------------------------------------------------------------
29,946,318 1,553
- -----------------------------------------------------------------------------------------------------------------
Health Care--12.3%
New York State Dormitory Authority Revenues:
1,500M North Shore University Hospital 5 1/2% 11/1/2014 1,629,375 84
1,210M North Shore University Hospital (Plainview)
5 1/2% 11/1/2013 1,323,438 69
New York State Medical Care Facilities Agency:
3,690M Beth Israel Hospital 7 1/2% 11/1/2000* 4,022,100 208
1,850M Long Term Health Care 7 3/8% 11/1/2011 1,940,613 101
Mental Health Services Facilities:
4,090M 7 3/4% 2/15/2000* 4,360,962 226
955M 7 3/8% 2/15/2014 995,139 52
845M 7.7% 2/15/2018 857,126 44
4,915M 6 1/2% 8/15/2004* 5,621,531 292
2,750M St. Luke's Hospital 7.45% 2/15/2000* 2,925,312 152
- -----------------------------------------------------------------------------------------------------------------
23,675,596 1,228
- -----------------------------------------------------------------------------------------------------------------
Housing--3.3%
2,250M New York City Hsg. Dev. Corp. Ins. Multi-Family
(Sheridan Manor) 7.45% 10/1/2008 2,349,270 122
3,655M New York State Housing Finance Agency 6.05%
5/1/2011 3,983,950 206
- -----------------------------------------------------------------------------------------------------------------
6,333,220 328
- -----------------------------------------------------------------------------------------------------------------
Transportation--25.7%
Metropolitan Transit Authority of New York:
Commuter Facilities Series:
5,000M 6 1/8% 7/1/2004* 5,593,750 290
3,380M RITES-PA 359A Variable Rate 5.43699%
7/1/2011 (Note 6)** 3,810,950 198
3,565M RITES-PA 359B Variable Rate 5.43699%
7/1/2012 (Note 6)** 3,966,063 206
1,750M RITES-PA 359C Variable Rate 5.43699%
7/1/2013 (Note 6)** 1,920,625 100
1,760M 5 3/4% 7/1/2021 1,911,800 99
1,000M Dedicated Tax Fund Series "A" 5 1/2% 4/1/2015 1,087,500 56
Transit Facilities Series:
4,250M 5 1/8% 7/1/2013 4,398,750 228
3,200M 5 1/2% 7/1/2017 3,484,000 181
1,500M 5 3/4% 7/1/2021 1,623,750 84
1,000M New York City Transit Auth. Hwy. & Brdg. Trust
Fund Rev. 7 1/2% 1/1/2000* 1,059,270 55
3,325M New York State Thruway Auth. Hwy. & Brdg. Trust
Fund Rev. 5% 4/1/2018 3,333,313 173
Puerto Rico Commonwealth Highway &
Transportation Authority:
3,030M 6 1/4% 7/1/2014 3,575,400 185
5,000M 6% 7/1/2018 5,793,750 300
6,900M Triborough Bridge & Tunnel Authority Series "Y"
6% 1/1/2012 7,943,625 412
- -----------------------------------------------------------------------------------------------------------------
49,502,546 2,567
- -----------------------------------------------------------------------------------------------------------------
Utilities--12.2%
5,275M Long Island Power Authority 5% 4/1/2013 5,400,281 280
New York City Municipal Water Finance Authority:
4,975M 5 7/8% 6/15/2012 5,677,719 294
2,000M 5 7/8% 6/15/2013 2,272,500 118
2,750M 6% 6/15/2021 3,183,125 165
Suffolk County Water Authority:
2,165M 6% 6/1/2014 2,478,925 129
4,000M 6% 6/1/2017 4,600,000 239
- -----------------------------------------------------------------------------------------------------------------
23,612,550 1,225
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.6%
1,000M New York State Dorm. Auth. Rev. (Suffolk County
Jud. Facs.) 7 3/8% 7/1/2016 1,270,000 66
5,000M New York State Local Government Assistance
Corporation 6% 4/1/2014 5,687,500 295
3,660M New York State Urban Development Corporation
Corr. Facs. 5 1/4% 1/1/2013 3,852,150 200
Puerto Rico Public Buildings Authority:
1,250M 6 1/4% 7/1/2013 1,475,000 76
2,035M 6 1/4% 7/1/2015 2,403,844 125
7,000M 5 1/2% 7/1/2021 7,691,250 399
- -----------------------------------------------------------------------------------------------------------------
22,379,744 1,161
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $172,980,419) 98.6% 190,114,617 9,860
Other Assets, Less Liabilities 1.4 2,699,751 140
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $192,814,368 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
**The interest rates on these securities (commonly referred to as inverse
floaters) vary inversely with interest rates on other municipal
obligations or an index and are reset at least weekly by the issuer. The
interest rate shown on these securities is the rate in effect at December
31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Arizona Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
ARIZONA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
NOV 90 9,375 10,000
DEC 90 9,337 10,246
DEC 91 10,241 11,490
DEC 92 11,345 12,503
DEC 93 13,033 14,038
DEC 94 12,298 13,313
DEC 95 14,562 15,654
DEC 96 15,100 16,320
DEC 97 16,502 17,819
DEC 98 17,521 18,974
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.17% (.48%)
Five Years 6.10% 4.74%
Since Inception
(11/1/90) 7.95% 7.11%
S.E.C. 30-Day Yield 3.69%
Class B Shares
One Year 5.33% 1.33%
Since Inception
(1/12/95) 8.15% 7.54%
S.E.C. 30-Day Yield 3.13%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Arizona Fund (Class A shares) beginning 11/1/90
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.17%), 3.97% and 6.17%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
3.02%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .60% and 6.70%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.42%.
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 Multi-State Insured Tax Free Fund--ARIZONA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--96.8%
Certificates of Participation--5.7%
Arizona State:
$ 100M 6.1% 5/1/2007 $ 107,625 $ 95
375M 6 1/4% 9/1/2010 407,344 358
100M Arizona State Municipal Financing Program 7.7%
8/1/2010 126,375 111
- -----------------------------------------------------------------------------------------------------------------
641,344 564
- -----------------------------------------------------------------------------------------------------------------
Education--1.0%
100M Arizona State University Revenue 7% 7/1/2001* 109,750 97
- -----------------------------------------------------------------------------------------------------------------
General Obligation--39.2%
Maricopa County:
235M School District #3 (Tempe) 7.3% 7/1/2009 293,750 258
400M School District #11 (Peoria) 6.1% 7/1/2010 439,500 387
100M School District #14 (Creighton) 7 7/8% 7/1/2006 123,875 109
1,000M School District #41 (Gilbert) Zero Coupon 1/1/2008 683,750 602
300M School District #68 (Alhambra) 6 3/4% 7/1/2014 342,375 301
380M School District #80 (Chandler) 6 1/4% 7/1/2011 445,075 392
275M School District #80 (Chandler) 6 1/4% 7/1/2011 332,750 293
100M School District #92 (Pendergast Elementary) 6 5/8%
7/1/2000* 105,625 93
200M School District #213 (Tempe) 7% 7/1/2008 242,750 214
500M Mohave County Unified School District #1
(Lake Havasu) 5% 7/1/2015 505,625 445
100M Pima County Unified School District #13
(Tanque Verde) 6.7% 7/1/2010 114,625 101
100M Puerto Rico Commonwealth 6.6% 7/1/2002* 110,875 97
200M Santa Cruz County School District #35, 6% 7/1/2008 219,000 193
Yavapai County:
230M Elementary School District #6 (Cottonwood-Oak
Creek) 6.7% 7/1/2009 260,475 229
215M Elementary School District #28 (Camp Verde) 6%
7/1/2008 237,038 209
- -----------------------------------------------------------------------------------------------------------------
4,457,088 3,923
- -----------------------------------------------------------------------------------------------------------------
Health Care--11.0%
650M Maricopa County Ind. Dev. Auth. (Samaritan
Health Svcs.) 7% 12/1/2016 817,375 720
100M Mohave County Hosp. Dist. #1 (Kingman Reg.
Med. Ctr.) 6.45% 6/1/2008 107,875 95
300M Pima County Ind. Dev. Auth. (Tucson Med. Ctr.)
6 3/8% 4/1/2012 326,250 287
- -----------------------------------------------------------------------------------------------------------------
1,251,500 1,102
- -----------------------------------------------------------------------------------------------------------------
Housing--2.7%
200M Maricopa Cnty. Indl. Dev. Auth. Multi-Family Housing
(Stanford Courts Apts.) 5.1% 7/1/2013 202,500 178
105M Phoenix Hsg. Fin. Corp. Mtg. Rev. 6.65% 7/1/2006 109,200 96
- -----------------------------------------------------------------------------------------------------------------
311,700 274
- -----------------------------------------------------------------------------------------------------------------
Transportation--9.2%
385M Phoenix Airport Revenue 6 1/4% 7/1/2012 430,719 379
500M Phoenix Civic Improvement Corp. Airport Revenue 5%
7/1/2018 499,375 440
100M Phoenix Street & Highway User Revenue 6 1/4%
7/1/2002* 107,875 95
- -----------------------------------------------------------------------------------------------------------------
1,037,969 914
- -----------------------------------------------------------------------------------------------------------------
Utilities--16.7%
200M Central Arizona Water Conservation District
Zero Coupon 5/1/2005 154,500 136
Chandler Water & Sewer Revenue:
200M 7 1/4% 7/1/2013 256,000 225
225M 5 1/2% 7/1/2015 237,375 209
225M Gilbert Water & Sewer Revenue 6 1/2% 7/1/2012 253,687 223
350M Mesa Utility Systems Revenue 6 1/8% 7/1/2007* 402,062 354
100M Peoria Water & Sewer Revenue 6.6% 7/1/2000* 104,750 92
150M Phoenix Civic Impt. Corp. Water System Rev. 5%
7/1/2016 150,750 133
250M Tucson Water Revenue 8% 7/1/2013 339,687 299
- -----------------------------------------------------------------------------------------------------------------
1,898,811 1,671
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.3%
250M Bullhead City Mun. Ppty. Corp. Excise Tax Rev. 5%
7/1/2012 258,125 227
305M Casa Grande Excise Tax Rev. 6.1% 4/1/2009 335,119 295
225M Phoenix Civic Impt. Mun. Facs. Excise Tax Rev. 6.6%
7/1/2004* 257,906 227
400M Sierra Vista Mun. Ppty. Corp. Mun. Facs. Rev. 6%
1/1/2011 437,000 385
- -----------------------------------------------------------------------------------------------------------------
1,288,150 1,134
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $9,827,065) 10,996,312 9,679
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT
INVESTMENTS--.9%
100M Puerto Rico Commonwealth Government Development
Bank Adjustable Rate Note 3.60%** (cost $100,000) 100,000 88
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $9,927,065) 97.7% 11,096,312 9,767
Other Assets, Less Liabilities 2.3 264,883 233
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $11,361,195 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset
weekly by the issuer. Interest rate shown is the rate in effect at
December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--California Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
CALIFORNIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,324 11,079
DEC 90 11,062 11,886
DEC 91 12,307 13,330
DEC 92 13,496 14,505
DEC 93 15,288 16,286
DEC 94 14,347 15,444
DEC 95 16,952 18,161
DEC 96 17,616 18,932
DEC 97 19,318 20,672
DEC 98 20,538 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.31% (.35%)
Five Years 6.09% 4.73%
Ten Years 8.16% 7.46%
S.E.C. 30-Day Yield 3.33%
Class B Shares
One Year 5.40% 1.40%
Since Inception
(1/12/95) 8.28% 7.67%
S.E.C. 30-Day Yield 2.76%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--California Fund (Class A shares) beginning 1/1/89
with a theoretical investment in the Lehman Brothers Municipal Bond Index.
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.
The Index does not take into account fees and expenses or cost of insurance
of bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (.70%), 4.37% and 6.89%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 2.98%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been 1.03% and 7.30%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.39%. 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 Multi-State Insured Tax Free Fund--CALIFORNIA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--103.0%
Certificates of Participation--12.6%
$ 500M Castaic Lake Water Agency Water System Impt.
Proj. 7% 8/1/2012 $ 631,875 $ 419
San Diego County:
750M Downtown Courthouse 4 1/2% 5/1/2023 694,688 460
500M County Inmate Reception Center 6 3/4% 8/1/2004* 580,000 384
- -----------------------------------------------------------------------------------------------------------------
1,906,563 1,263
- -----------------------------------------------------------------------------------------------------------------
General Obligation--15.4%
500M Coachella Valley Unified School District Zero Coupon
8/1/2016 210,625 140
1,000M Escondido Unified High School District Zero Coupon
5/1/2020 342,500 227
270M Greenfield School District 7.1% 8/1/1999* 281,505 186
Walnut Valley School District:
750M 6% 8/1/2012 861,562 571
500M 7.2% 2/1/2016 627,500 416
- -----------------------------------------------------------------------------------------------------------------
2,323,692 1,540
- -----------------------------------------------------------------------------------------------------------------
Utilities--8.0%
575M East Bay Municipal Utility District 6.4% 6/1/2004* 656,938 435
250M Fresno Water Revenue 6 1/4% 9/1/2014 295,937 196
250M Los Angeles Wastewater System 7% 6/1/1999* 258,505 171
- -----------------------------------------------------------------------------------------------------------------
1,211,380 802
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--67.0%
500M Barstow Redevelopment Agency 7% 9/1/2014 630,000 417
100M California Public Capital Impt. Fin. Auth. Rev. 8.1%
3/1/2018 101,934 68
1,315M California State Public Works Board 6 1/2% 12/1/2008 1,566,494 1,038
1,000M Long Beach Financing Authority Revenue 6% 11/1/2017 1,151,250 763
300M Sacramento Redev. Agency Merged Downtown Redev.
Proj. 6 3/4% 11/1/2005 321,750 213
640M San Francisco City & Cnty. Pkg. Auth. Rev. 7%
6/1/2011 760,000 504
500M San Francisco City & Cnty. Redev. Agy. (Moscone Ctr.)
6 3/4% 7/1/2015 572,500 379
500M San Jose Redevelopment Agency 6% 8/1/2015 575,625 381
700M San Mateo Joint Powers Authority Lease Revenue
6 1/2% 7/1/2015 845,250 560
500M San Rafael Redevelopment Agency 6.45% 12/1/2017 551,875 366
500M Santa Ana Financing Authority Lease Rev. 6 1/4%
7/1/2015 589,375 391
750M Santa Margarita/Dana Point Impt. Dist. 7 1/4%
8/1/2010 951,562 630
750M South Gate Public Financing Authority 6% 10/1/2012 872,812 578
500M South Orange County Public Finance Authority 7%
9/1/2011 625,000 414
- -----------------------------------------------------------------------------------------------------------------
10,115,427 6,702
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $13,619,312) 103.0% 15,557,062 10,307
Excess of Liabilities Over Other Assets (3.0) (463,321) (307)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $15,093,741 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Colorado Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
COLORADO LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
MAY 92 9,375 10,000
DEC 92 10,015 10,753
DEC 93 11,432 12,073
DEC 94 10,773 11,449
DEC 95 12,739 13,463
DEC 96 13,321 14,035
DEC 97 14,570 15,325
DEC 98 15,483 16,318
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.27% (.40%)
Five Years 6.26% 4.89%
Since Inception
(5/4/92) 7.80% 6.77%
S.E.C. 30-Day Yield 3.64%
Class B Shares
One Year 5.48% 1.48%
Since Inception
(1/12/95) 8.44% 7.84%
S.E.C. 30-Day Yield 3.08%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Colorado Fund (Class A shares) beginning 5/4/92
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.31%), 3.84% and 5.64%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
2.76%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .51% and 6.56%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.14%.
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 Multi-State Insured Tax Free Fund--COLORADO FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--95.6%
Education--9.0%
$225M Colorado Postsecondary Educ. Facs. Auth. Rev.
(Aurora Fndtn. Proj.) 6% 9/1/2015 $ 245,812 $ 623
100M University of Northern Colorado Revenue 6% 6/1/2004* 110,750 281
- -----------------------------------------------------------------------------------------------------------------
356,562 904
- -----------------------------------------------------------------------------------------------------------------
General Obligation--44.1%
150M Bayfield School District #10, 6 1/2% 6/1/2009 169,313 429
250M Douglas County School District #RE 1, 8% 12/15/2009 329,673 835
150M Eagle Garfield & Routt Cntys. School District #RE 50J,
6.3% 12/1/2012 168,750 428
150M El Paso County School District #020, 6.2% 12/15/2007 172,875 438
150M Garfield County School District #RE 2, 6.15% 12/1/2003* 166,500 422
150M Garfield Pitkin & Eagle Cntys. School District #RE 1,
6.6% 6/15/2004* 170,812 433
100M Miguel County Mountain Village Met. Dist. 5%
12/1/2017 99,750 253
150M Puerto Rico Commonwealth 6 1/4% 7/1/2012 179,063 454
100M Summit County School District #RE 1, 6.55% 12/1/2004* 113,875 289
150M Yuma Hospital District 6.4% 11/1/2004* 169,688 430
- -----------------------------------------------------------------------------------------------------------------
1,740,299 4,411
- -----------------------------------------------------------------------------------------------------------------
Health Care--12.5%
Colorado Health Facilities Authority (Sisters of Charity):
100M 6 1/4% 5/15/2012 116,750 296
100M 5% 12/1/2013 101,750 258
250M Colorado Springs Hospital Revenue 6% 12/15/2015 276,875 702
- -----------------------------------------------------------------------------------------------------------------
495,375 1,256
- -----------------------------------------------------------------------------------------------------------------
Transportation--10.4%
100M Arapahoe County Capital Improv. Highway Rev. (E-470)
6.05% 8/31/2005* 110,875 281
150M Denver City & County Airport Revenue 5 3/4%
11/15/2016 162,375 411
115M Puerto Rico Commonwealth Hwy. & Transn. Auth. Rev.
6 1/4% 7/1/2014 135,700 344
- -----------------------------------------------------------------------------------------------------------------
408,950 1,036
- -----------------------------------------------------------------------------------------------------------------
Utilities--11.0%
150M Westminster Water & Wastewater Util. Enterprise Rev.
6% 12/1/2009 162,750 412
150M Widefield Water & Sanitary District Water & Sewer
Rev. 5.6% 12/1/2026 159,375 404
100M Woodland Park Wastewater Util. Rev. 6.05% 12/1/2013 110,500 280
- -----------------------------------------------------------------------------------------------------------------
432,625 1,096
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--8.6%
100M Pueblo Urban Renewal Authority Tax Increment Rev.
6.05% 12/1/2012 109,625 278
100M Puerto Rico Mun. Fin. Agy. Series "A" 6% 7/1/2014 109,750 278
100M Puerto Rico Public Buildings Authority 6 1/4 7/1/2012 118,250 300
- -----------------------------------------------------------------------------------------------------------------
337,625 856
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $3,391,104) 95.6% 3,771,436 9,559
Other Assets, Less Liabilities 4.4 174,107 441
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,945,543 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Connecticut Fund (Class A shares) and
the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
CONNECTICUT LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
OCT 90 9,375 10,000
DEC 90 9,395 10,431
DEC 91 10,345 11,698
DEC 92 11,306 12,730
DEC 93 12,900 14,292
DEC 94 12,030 13,553
DEC 95 14,097 15,938
DEC 96 14,573 16,615
DEC 97 15,851 18,142
DEC 98 16,826 19,317
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.15% (.50%)
Five Years 5.46% 4.11%
Since Inception
(10/8/90) 7.36% 6.52%
S.E.C. 30-Day Yield 3.30%
Class B Shares
One Year 5.22% 1.22%
Since Inception
(1/12/95) 7.71% 7.10%
S.E.C. 30-Day Yield 2.73%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Connecticut Fund (Class A shares) beginning 10/8/90
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (.84%), 3.67% and 5.91%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
2.97%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .86% and 6.64%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.38%.
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 Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.8%
Certificates of Participation--1.7%
Connecticut State (Middletown Courthouse Facilities):
$ 130M 6 1/4% 12/15/2001* $ 141,862 $ 68
100M 6 1/4% 12/15/2001* 109,125 52
100M 6 1/4% 12/15/2001* 109,125 52
- -----------------------------------------------------------------------------------------------------------------
360,112 172
- -----------------------------------------------------------------------------------------------------------------
Education--22.9%
Conn. State Health & Educational Facilities
Authority Revenue:
725M Choate Rosemary Hall 6.8% 7/1/2004* 833,750 398
500M Loomis Chafee School Project-Series "B" 6%
7/1/2015 546,250 261
1,000M Trinity College 6 1/8% 7/1/2004* 1,125,000 538
1,000M Quinnipiac College 4 3/4% 7/1/2024 965,590 462
University of Connecticut:
750M 5 1/4% 4/1/2014 786,562 376
500M 5 1/4% 6/1/2015 525,000 251
- -----------------------------------------------------------------------------------------------------------------
4,782,152 2,286
- -----------------------------------------------------------------------------------------------------------------
General Obligation--26.9%
250M Ansonia 5% 10/15/2015 254,063 121
100M Bethel 6 1/2% 2/15/2011 119,000 57
775M Bridgeport 5 1/2% 9/1/2015 817,625 391
Connecticut State:
500M 6 1/2% 3/15/2002* - Series "A" 550,000 263
700M 6% 3/15/2012 - Series "E" 805,000 385
130M Coventry 6.7% 12/15/2009 156,813 75
Griswold:
250M 5 3/4% 4/15/2010 265,000 127
100M 6 1/4% 6/15/2010 116,750 56
100M Groton City 6 3/4% 6/1/2007 118,375 56
800M New Britain 6% 3/1/2012 921,000 440
130M Newton 6.7% 8/15/2010 158,275 76
250M Plainfield 6 3/8% 8/1/2011 272,500 130
290M Regional School District #5, 6.3% 3/1/2002* 313,562 150
330M Southington 6.55% 4/1/2012 362,175 173
90M Stafford 6.55% 11/15/2008 106,988 51
250M Westbrook 6.4% 3/15/2010 294,375 141
- -----------------------------------------------------------------------------------------------------------------
5,631,501 2,692
- -----------------------------------------------------------------------------------------------------------------
Health Care--19.4%
Conn. State Health & Educationial Facilities
Authority Revenue:
450M Bridgeport Hospital 6 1/2% 7/1/2012 495,000 237
500M Lawrence & Memorial Hospital 6 3/8% 7/1/2002* 551,875 264
500M Masonicare 5% 7/1/2013 512,500 245
700M New Britain General Hospital 6 1/8% 7/1/2014 773,500 370
325M Stamford Hospital 6 1/2% 7/1/2006 350,187 167
750M Yale-New Haven Hospital 5.7% 7/1/2025 807,187 386
500M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
6 1/4% 7/1/2016 559,375 267
- -----------------------------------------------------------------------------------------------------------------
4,049,624 1,936
- -----------------------------------------------------------------------------------------------------------------
Housing--3.9%
750M Connecticut State Housing Finance Authority 6%
11/15/2010 805,315 385
- -----------------------------------------------------------------------------------------------------------------
Transportation--7.1%
Connecticut State Special Tax Oblig.
Transportation Infrastructure:
285M 6% 10/1/2004* 317,775 152
250M 6.1% 10/1/2004* 280,000 134
500M 6 1/2% 10/1/2011 596,875 285
250M 6 1/8% 9/1/2012 289,687 139
- -----------------------------------------------------------------------------------------------------------------
1,484,337 710
- -----------------------------------------------------------------------------------------------------------------
Utilities--3.9%
South Central Conn. Regl. Water Auth. Water Sys. Rev.:
250M 5 7/8% 8/1/2002* 271,875 130
500M 6 1/8% 8/1/2014 550,625 263
- -----------------------------------------------------------------------------------------------------------------
822,500 393
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--12.0%
545M Connecticut State Dev. Auth. Govtl. Lease Rev. 6 1/2%
6/15/2008 617,894 295
Puerto Rico Public Buildings Authority:
350M 6 1/4% 7/1/2013 413,000 198
575M 6 1/4% 7/1/2015 679,219 325
795M Puerto Rico Commonwealth Infrastructure Fing.
Auth. Spl. 5% 7/1/2017 803,944 384
- -----------------------------------------------------------------------------------------------------------------
2,514,057 1,202
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $18,528,995) 97.8% 20,449,598 9,776
Other Assets, Less Liabilities 2.2 467,802 224
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $20,917,400 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Florida Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
FLORIDA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
OCT 90 9,375 10,000
DEC 90 9,345 10,431
DEC 91 10,442 11,698
DEC 92 11,526 12,730
DEC 93 13,161 14,292
DEC 94 12,451 13,553
DEC 95 14,788 15,938
DEC 96 15,282 16,615
DEC 97 16,685 18,142
DEC 98 17,702 19,317
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.09% (.55%)
Five Years 6.11% 4.74%
Since Inception
(10/5/90) 8.01% 7.17%
S.E.C. 30-Day Yield 3.34%
Class B Shares
One Year 5.19% 1.19%
Since Inception
(1/12/95) 8.22% 7.62%
S.E.C. 30-Day Yield 2.76%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Florida Fund (Class A shares) beginning 10/5/90
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (.85%), 4.27% and 6.53%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
3.05%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .86% and 7.17%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.45%.
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 Multi-State Insured Tax Free Fund--FLORIDA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.8%
General Obligation--7.4%
$ 300M Miami 6% 12/1/2010 $ 348,750 $ 131
1,000M Miami-Dade County School Board 5% 8/1/2025 995,000 372
500M North Springs Improvement District 7% 10/1/2009 621,250 232
- -----------------------------------------------------------------------------------------------------------------
1,965,000 735
- -----------------------------------------------------------------------------------------------------------------
Health Care--9.0%
350M North Broward Hospital District 6 1/2% 1/1/2002* 383,688 144
1,000M Orange County Health Facs. Auth. (Orlando Regl.
Healthcare) 6 1/4% 10/1/2018 1,177,500 440
750M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
6 1/4% 7/1/2016 839,063 314
- -----------------------------------------------------------------------------------------------------------------
2,400,251 898
- -----------------------------------------------------------------------------------------------------------------
Housing--.5%
130M Dade County Hsg. Fin. Auth. Single-Family Mtge.
6.95% 12/15/2012 137,962 52
- -----------------------------------------------------------------------------------------------------------------
Transportation--6.2%
500M Dade County Aviation Revenue Series "A" 6%
10/1/2010 560,625 209
300M Florida State Turnpike Authority Turnpike Revenue
6.35% 7/1/2002* 328,500 123
250M Pensacola Airport Revenue 5.6% 10/1/2017 270,000 101
455M Port Palm Beach District Revenue 6 1/4% 9/1/2008 502,206 188
- -----------------------------------------------------------------------------------------------------------------
1,661,331 621
- -----------------------------------------------------------------------------------------------------------------
Utilities--54.0%
750M Charlotte County Utilities Revenue 6 3/4% 10/1/2003* 859,687 321
1,000M Cocoa Water & Sewer Revenue 5 3/4% 10/1/2017 1,097,500 410
Escambia County Utilities Authority Util. Sys. Rev.:
500M 6 1/4% 1/1/2013 590,625 221
1,000M 6 1/4% 1/1/2015 1,186,250 444
690M Jacksonville Beach Utility Revenue 6 3/4% 10/1/2001* 759,000 284
300M Kissimmee Utility Authority Electric System Revenue
6 1/2% 10/1/2001* 327,750 123
1,495M Lakeland Electric & Water Revenue 6% 10/1/2014 1,732,331 648
350M Miramar Utilities Improvement Revenue 6.4%
10/1/2007 397,250 149
500M Nassau County Gas Tax 5% 10/1/2018 502,500 188
1,000M North Springs Impt. Dist. Water & Sewer Revenue
5 1/8% 10/1/2017 1,022,500 383
1,000M Plant City Utility System Revenue 6% 10/1/2015 1,163,750 435
100M Reedy Creek Improvement District Utilities Revenue
6 1/2% 10/1/2001* 108,375 41
500M Sarasota County Utility System Revenue 6 1/2%
10/1/2004* 575,625 215
Seminole County Water & Sewer Revenue:
500M 6% 10/1/2009 578,750 217
500M 6% 10/1/2019 573,750 215
1,000M St. John's County Water & Sewer Revenue 5 1/2%
6/1/2011 1,107,500 414
1,000M Sunrise Utility System Revenue 5% 10/1/2028 1,002,500 375
750M West Melbourne Water & Sewer Revenue 6 3/4%
10/1/2014 855,937 320
- -----------------------------------------------------------------------------------------------------------------
14,441,580 5,403
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--21.7%
1,000M Indian Trace Community Dev. District 5 3/4% 5/1/2011 1,096,250 410
1,000M Jacksonville Capital Improvement (Gator Bowl Project)
5 7/8% 10/1/2015 1,096,250 410
350M Jacksonville Excise Taxes Revenue 6 1/2% 10/1/2013 385,438 144
600M Orange County Tourist Development Tax Revenue
5.9% 10/1/2010 689,250 258
1,000M Palm Beach County Criminal Justice Facilities Revenue
5 3/8% 6/1/2011 1,095,000 410
300M St. Lucie County Sales Tax Revenue 6 1/2% 10/1/2002* 334,125 125
1,000M Tampa Sports Auth. Sales Tax Rev. (Tampa Bay Arena)
5 3/4% 10/1/2020 1,117,500 418
- -----------------------------------------------------------------------------------------------------------------
5,813,813 2,175
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $23,600,391) 98.8% 26,419,937 9,884
Other Assets, Less Liabilities 1.2 311,361 116
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $26,731,298 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Georgia Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
GEORGIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
MAY 92 9,375 10,000
DEC 92 9,803 10,753
DEC 93 11,289 12,073
DEC 94 10,760 11,449
DEC 95 12,740 13,463
DEC 96 13,242 14,035
DEC 97 14,565 15,325
DEC 98 15,451 16,318
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.08% (.58%)
Five Years 6.48% 5.12%
Since Inception
(5/1/92) 7.77% 6.74%
S.E.C. 30-Day Yield 3.81%
Class B Shares
One Year 5.23% 1.23%
Since Inception
(1/12/95) 8.39% 7.79%
S.E.C. 30-Day Yield 3.26%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Georgia Fund (Class A shares) beginning 5/1/92
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.60%), 3.93% and 5.32%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
2.81%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .16% and 6.48%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.21%.
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 Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--96.5%
Education--5.3%
Private Colleges & Universities Facilities Authority:
$ 80M Mercer University Project 6.35% 11/1/2006 $ 91,900 $ 269
80M Spelman University Project 6% 6/1/2009 88,100 258
- -----------------------------------------------------------------------------------------------------------------
180,000 527
- -----------------------------------------------------------------------------------------------------------------
General Obligation--25.1%
75M Columbia County School District 6 1/4% 4/1/2013 83,063 244
100M Hall County School District 6.7% 12/1/2004* 116,250 341
100M Mitchell County School District 6 1/2% 3/1/2009 114,000 334
125M Paulding County School District 6% 2/1/2013 142,656 418
100M Peach County School District 6.4% 2/1/2005* 114,375 335
150M Pike County School District 5.7% 2/1/2016 165,937 486
100M Puerto Rico Commonwealth 6 1/4% 7/1/2012 119,375 350
- -----------------------------------------------------------------------------------------------------------------
855,656 2,508
- -----------------------------------------------------------------------------------------------------------------
Health Care--7.1%
100M Fulton De Kalb Hosp. Auth. (Grady Memorial Hosp.)
5 1/2% 1/1/2020 103,500 303
125M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
6 1/4% 7/1/2016 139,844 410
- -----------------------------------------------------------------------------------------------------------------
243,344 713
- -----------------------------------------------------------------------------------------------------------------
Housing--4.7%
150M Georgia State Housing & Finance Authority Revenue
5.7% 12/1/2011 159,750 468
- -----------------------------------------------------------------------------------------------------------------
Transportation--11.4%
300M Metropolitan Atlanta Rapid Transit Authority 6 1/4%
7/1/2011 352,125 1,032
30M Puerto Rico Commonwealth Hwy. & Transn. Auth.
6 1/4% 7/1/2014 35,400 104
- -----------------------------------------------------------------------------------------------------------------
387,525 1,136
- -----------------------------------------------------------------------------------------------------------------
Utilities--31.6%
95M Brunswick Water & Sewer Revenue 6.1% 10/1/2019 110,556 324
85M Conyers Water & Sewer Revenue 6.45% 7/1/2010 94,987 279
80M Cordele Combined Public Utilities Revenue 6.4%
11/1/2014 90,400 265
250M Fulton County Water & Sewer Revenue 6 3/8% 1/1/2014 292,813 858
Georgia Municipal Gas Authority Revenue:
80M 6.8% 11/1/2009 92,000 270
100M 5.8% 1/1/2015 109,250 320
150M Milledgeville Water & Sewer Revenue 6% 12/1/2021 173,250 508
100M St. Mary's Water & Sewer Revenue 6 1/8% 7/1/2018 116,125 340
- -----------------------------------------------------------------------------------------------------------------
1,079,381 3,164
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.3%
80M Appling County Dev. Auth. Poll. Ctl. Rev. 7.1%
1/1/2014 91,600 269
80M Downtown Smyrna Development Authority Revenue
6.7% 2/1/2005* 92,800 272
50M East Point Building Authority Revenue 6% 2/1/2011 54,500 160
125M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2013 147,500 432
- -----------------------------------------------------------------------------------------------------------------
386,400 1,133
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $2,931,170) 96.5% 3,292,056 9,649
Other Assets, Less Liabilities 3.5 119,605 351
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,411,661 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Maryland Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
MARYLAND LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
OCT 90 9,375 10,000
DEC 90 9,555 10,431
DEC 91 10,374 11,698
DEC 92 11,346 12,730
DEC 93 13,005 14,292
DEC 94 12,277 13,553
DEC 95 14,426 15,938
DEC 96 14,905 16,615
DEC 97 16,335 18,142
DEC 98 17,378 19,317
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.38% (.30%)
Five Years 5.97% 4.61%
Since Inception
(10/8/90) 7.78% 6.94%
S.E.C. 30-Day Yield 3.90%
Class B Shares
One Year 5.54% 1.54%
Since Inception
(1/12/95) 8.11% 7.50%
S.E.C. 30-Day Yield 3.36%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Maryland Fund (Class A shares) beginning 10/8/90
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.04%), 3.77% and 5.90%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
3.19%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .76% and 6.31%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.60%.
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 Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.0%
Education--7.9%
$250M Maryland State Health & Higher Edl. Facs. Auth.
(College of Art) 5% 6/1/2019 $ 252,188 $187
Morgan State University Academic & Aux. Facs.
Fees Revenue:
500M 6.05% 7/1/2015 578,125 429
200M 6.1% 7/1/2020 238,000 176
- -----------------------------------------------------------------------------------------------------------------
1,068,313 792
- -----------------------------------------------------------------------------------------------------------------
General Obligation--27.9%
350M Anne Arundel County Water & Sewer 6.3% 8/1/2015 391,125 290
Baltimore, Maryland:
100M 6.3% 10/15/2004 112,375 83
100M 7% 10/15/2009 123,000 91
250M 5 5/8% 10/15/2012 272,813 202
100M 5 5/8% 10/15/2013 108,500 81
100M Chesapeake Beach 6 1/2% 5/1/2012 106,375 79
Frederick:
100M 6 1/8% 12/1/2008 108,750 81
200M 6 1/8% 10/1/2014 221,500 164
Puerto Rico Commonwealth:
105M 6.6% 7/1/2002* 116,419 86
630M 6 1/4% 7/1/2012 752,062 557
275M 5 1/4% 7/1/2015 287,719 213
250M 5.65% 7/1/2015 280,313 208
500M Queen Annes County 5.6% 11/15/2015 536,250 397
325M Washington County 5.8% 1/1/2013 353,031 262
- -----------------------------------------------------------------------------------------------------------------
3,770,232 2,794
- -----------------------------------------------------------------------------------------------------------------
Health Care--19.7 %
500M Calvert County Economic Development Authority 5%
1/1/2017 505,000 374
250M Maryland State Indl. Dev. Fing. Auth. (Holy Cross
Health System) 5.7% 12/1/2010 277,813 206
Maryland State Health & Higher Education
Facilities Authority:
500M Maryland General Hospital 6 1/8% 7/1/2014 553,750 410
250M Medlantic/Helix 5 1/4% 8/15/2015 262,187 194
140M Sinai Hospital of Baltimore 7% 7/1/2000* 149,975 111
110M Suburban Hospital 6% 7/1/2002* 118,250 88
325M Puerto Rico Indl. Tourist Edl. Med. and Env. Ctl. Facs.
6 1/4% 7/1/2016 363,594 270
350M Takoma Park Hospital Facilities (Adventist Hosp.)
6 1/2% 9/1/2012 420,875 312
- -----------------------------------------------------------------------------------------------------------------
2,651,444 1,965
- -----------------------------------------------------------------------------------------------------------------
Housing--12.8%
250M Baltimore County Mortgage Revenue
(Old Orchard Apts.) 7% 7/1/2016 273,125 202
Maryland State Community Dev. Admin. Dept. Hsg. &
Cmnty. Dev.:
45M 7% 6/1/2001* 49,331 37
345M 7% 4/1/2014 371,737 276
600M 5 7/8% 7/1/2016 633,750 470
200M 5.6% 3/1/2017 209,750 155
175M Montgomery County Single Family Mortgage Revenue
6 1/2% 7/1/2011 187,906 139
- -----------------------------------------------------------------------------------------------------------------
1,725,599 1,279
- -----------------------------------------------------------------------------------------------------------------
Transportation--6.6%
500M Maryland State Department of Transportation Zero
Coupon 7/1/2012 268,750 199
525M Puerto Rico Highway & Transportation Authority
6 1/4% 7/1/2014 619,500 459
- -----------------------------------------------------------------------------------------------------------------
888,250 658
- -----------------------------------------------------------------------------------------------------------------
Utilities--6.7%
250M Baltimore Revenue Water Project 5.8% 7/1/2015 272,500 202
Baltimore Wastewater Utilities Revenue:
165M 6 1/2% 7/1/2000* 172,425 128
215M 6 1/4% 7/1/2002* 236,500 175
200M 6% 7/1/2015 228,750 169
- -----------------------------------------------------------------------------------------------------------------
910,175 674
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--15.4%
300M Baltimore City Parking System Facilities 5 1/4%
7/1/2021 316,875 235
Baltimore Convention Center:
250M 6.1% 9/1/2004* 277,500 205
500M 5% 9/1/2019 505,000 374
250M Maryland State Stadium Authority 5 7/8% 12/15/2013 275,625 204
100M Montgomery County Parking Revenue (Bethesda
Parking Lot) 6 1/4% 6/1/2009 108,875 81
500M Puerto Rico Public Buildings Authority 6 1/4%
7/1/2015 590,625 438
- -----------------------------------------------------------------------------------------------------------------
2,074,500 1,537
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $11,911,214) 13,088,513 9,699
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--.7%
100M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
(Ana G. Mendez Univ. Sys. Proj.) Adjustable Rate
Note 3.60%** (cost $100,000) 100,000 74
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $12,011,214) 97.7% 13,188,513 9,773
Other Assets, Less Liabilities 2.3 306,766 227
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $13,495,279 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Massachusetts Fund (Class A shares) and
the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
MASSACHUSETTS LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,346 11,079
DEC 90 11,082 11,886
DEC 91 12,338 13,330
DEC 92 13,548 14,505
DEC 93 15,164 16,286
DEC 94 14,363 15,444
DEC 95 16,815 18,161
DEC 96 17,318 18,932
DEC 97 18,749 20,672
DEC 98 19,749 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.33% (1.23%)
Five Years 5.43% 4.07%
Ten Years 7.73% 7.04%
S.E.C. 30-Day Yield 3.66%
Class B Shares
One Year 4.60% .60%
Since Inception
(1/12/95) 7.31% 6.69%
S.E.C. 30-Day Yield 3.09%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Massachusetts Fund (Class A shares) beginning 1/1/89
with a theoretical investment in the Lehman Brothers Municipal Bond Index.
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.
The Index does not take into account fees and expenses or cost of insurance
of bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (1.57%), 3.72% and 6.51%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 3.32%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been .24% and 6.32%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.73%. 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 Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.5%
Education--13.5%
Massachusetts Health & Educational Facilities Authority:
$ 500M Community Colleges Program 5% 10/1/2022 $ 494,375 $ 207
425M Northeastern University 7 1/8% 10/1/2000* 455,281 191
1,000M Massachusetts State Indl. Fin. Agy. (Suffolk University)
5 1/4% 7/1/2017 1,022,500 429
1,000M University of Massachusetts Building Authority
Revenue 6 7/8% 5/1/2014 1,245,000 522
- -----------------------------------------------------------------------------------------------------------------
3,217,156 1,349
- -----------------------------------------------------------------------------------------------------------------
General Obligation--33.8%
1,000M Amherst-Pelham Regional School District 5 1/8%
5/15/2018 1,007,500 422
750M Boston 5 7/8% 8/1/2012 808,125 339
1,000M Frontier Regional School District 5% 6/15/2017 990,000 415
Massachusetts General Obligations:
300M 7% 7/1/2009 365,625 153
1,000M 6% 8/1/2010 1,151,250 483
1,000M Methuen 5 1/8% 5/15/2014 1,026,250 430
1,100M New Bedford 5 5/8% 10/1/2016 1,166,000 489
1,000M Springfield Municipal Purpose Loan 5% 11/15/2018 996,250 418
500M Wareham 7.1% 1/15/2001* 548,125 230
- -----------------------------------------------------------------------------------------------------------------
8,059,125 3,379
- -----------------------------------------------------------------------------------------------------------------
Health Care--24.6%
Massachusetts Health & Educational Facilities Authority:
Capital Asset Program:
225M 7.35% 8/1/2008 234,022 98
400M 7.2% 7/1/2009 414,516 174
500M Central New England Health 5 1/8% 8/1/2018 501,875 211
1,000M Harvard Pilgrim Health Care 5 1/4% 7/1/2013 1,045,000 438
750M Massachusetts General Hospital 6 1/4% 7/1/2012 873,750 366
570M Milton Hospital 7% 7/1/2016 606,337 254
1,500M Mt. Auburn Hospital 6 1/4% 8/15/2014 1,657,500 695
490M University Hospital 7 1/4% 7/1/2000* 526,137 221
- -----------------------------------------------------------------------------------------------------------------
5,859,137 2,457
- -----------------------------------------------------------------------------------------------------------------
Housing--4.9%
Massachusetts Housing Finance Agency:
995M 6% 12/1/2012 1,059,675 444
120M 7.7% 12/1/2017 124,010 52
- -----------------------------------------------------------------------------------------------------------------
1,183,685 496
- -----------------------------------------------------------------------------------------------------------------
Transportation--8.0%
Massachusetts Bay Transportation Authority:
200M Series "A" 7.65% 8/1/2000* 216,750 91
1,500M Series "A" 5.8% 3/1/2013 1,685,625 707
- -----------------------------------------------------------------------------------------------------------------
1,902,375 798
- -----------------------------------------------------------------------------------------------------------------
Utilities--13.7%
Boston Water & Sewer Commission:
850M 7% 11/1/2001* 942,437 395
1,035M 5 3/4% 11/1/2013 1,163,081 488
1,000M South Essex Sewer District 6 3/4% 6/1/2004* 1,153,750 484
- -----------------------------------------------------------------------------------------------------------------
3,259,268 1,367
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $21,535,838) 23,480,746 9,846
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--.4%
100M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
(Ana G. Mendez Univ. Sys. Proj.) Adjustable Rate
Note 3.60%** (cost $100,000) 100,000 42
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $21,635,838) 98.9% 23,580,746 9,888
Other Assets, Less Liabilities 1.1 266,649 112
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $23,847,395 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Michigan Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
MICHIGAN LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,401 11,079
DEC 90 11,122 11,886
DEC 91 12,371 13,330
DEC 92 13,681 14,505
DEC 93 15,663 16,286
DEC 94 14,668 15,444
DEC 95 17,230 18,161
DEC 96 17,811 18,932
DEC 97 19,480 20,672
DEC 98 20,570 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.60% (1.00%)
Five Years 5.60% 4.25%
Ten Years 8.18% 7.48%
S.E.C. 30-Day Yield 3.45%
Class B Shares
One Year 4.73% .73%
Since Inception
(1/12/95) 7.78% 7.17%
S.E.C. 30-Day Yield 2.88%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Michigan Fund (Class A shares) beginning 1/1/89 with
a theoretical investment in the Lehman Brothers Municipal Bond Index. 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.
The Index does not take into account fees and expenses or cost of insurance
of bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (1.25%), 3.91% and 6.91%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 3.20%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been .47% and 6.82%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.61%. 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 Multi-State Insured Tax Free Fund--MICHIGAN FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.3%
Certificates of Participation--2.7%
$1,000M Michigan State Hsg. Representatives 5 1/4% 8/15/2014 $ 1,062,500 $ 265
- -----------------------------------------------------------------------------------------------------------------
Education--2.7%
1,000M Grand Valley Michigan State University Revenue
5 1/2% 2/1/2018 1,081,250 270
- -----------------------------------------------------------------------------------------------------------------
General Obligation--50.6%
1,055M Calhoun County Water Supply System 5 3/4% 5/1/2019 1,126,213 281
1,000M Detroit City School District 5.85% 5/1/2006* 1,127,500 281
1,000M Detroit Downtown Development Series "A" 5 3/4%
7/15/2015 1,071,250 267
1,000M East Detroit School District 6.1% 5/1/2016 1,093,750 273
1,000M Genesee County Sewer Disposal System 5.4% 4/1/2013 1,048,750 262
1,000M Grand Ledge Public School District 7 7/8% 5/1/2004* 1,205,000 301
1,000M Gull Lake Community School District Zero Coupon
5/1/2013 507,500 127
1,000M Huron School District Zero Coupon 5/1/2015 450,000 112
1,000M Lake Orion Community School District 7% 5/1/2005* 1,176,250 294
1,000M Lincoln Park School District 7% 5/1/2006* 1,192,500 297
1,000M Michigan State Environmental Protection Program
6 1/4% 11/1/2012 1,171,250 292
1,000M Montrose Township School District 6.2% 5/1/2017 1,158,750 289
350M Oak Park 7.2% 5/1/2002* 393,313 98
1,000M Portage Lake Water & Sewer Authority 6.1% 10/1/2014 1,106,250 276
1,195M Redford Unified School District 6 3/8% 5/1/2010 1,413,087 352
800M Rochester School District 5 5/8% 5/1/2011 882,000 220
380M Saline Building Authority 7.1% 7/1/2009 414,200 103
1,000M South Lake Schools 5 1/8% 5/1/2014 1,043,750 260
500M Van Buren Public Schools 4 3/4% 5/1/2016 482,500 120
1,000M Waterford Township School District 6 1/4% 6/1/2004* 1,121,250 280
1,000M Zeeland Public Schools 6% 5/1/2004* 1,116,250 278
- -----------------------------------------------------------------------------------------------------------------
20,301,313 5,063
- -----------------------------------------------------------------------------------------------------------------
Health Care--5.2%
Michigan State Hospital Finance Authority Revenue:
1,000M St. John's Hospital 6% 5/15/2008 1,083,750 270
1,000M Oakwood Obligated Group 5% 8/15/2012 1,022,500 255
- -----------------------------------------------------------------------------------------------------------------
2,106,250 525
- -----------------------------------------------------------------------------------------------------------------
Housing--1.3%
500M Michigan State Housing Dev. Auth. Single-Family
Mtge. Rev. 7.3% 12/1/2016 521,250 130
- -----------------------------------------------------------------------------------------------------------------
Transportation--7.7%
1,500M Puerto Rico Commonwealth Hwy. & Transn. Hwy. Rev.
6 1/4% 7/1/2015 1,771,875 442
1,190M Wayne Charter County (Detroit Metropolitan Airport)
6 3/4% 12/1/2001* 1,313,463 328
- -----------------------------------------------------------------------------------------------------------------
3,085,338 770
- -----------------------------------------------------------------------------------------------------------------
Utilities--20.5%
Detroit Water Supply System:
200M 6 3/8% 7/1/2002* 220,500 55
1,750M 5.55% 7/1/2012 1,929,375 481
1,275M 6 1/2% 7/1/2015 1,528,406 381
1,000M Kalamazoo Water Revenue 6% 9/1/2015 1,100,000 275
Michigan State Strategic Fund (Detroit Edison):
1,750M 6.95% 5/1/2011 2,154,687 538
500M 7% 5/1/2021 641,250 160
500M Monroe County Economic Development Corporation
(Detroit Edison) 6.95% 9/1/2022* 646,875 161
- -----------------------------------------------------------------------------------------------------------------
8,221,093 2,051
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--8.6%
1,000M Grand Rapids Downtown Development Authority
Zero Coupon 6/1/2009 633,750 158
Michigan Municipal Bond Authority Revenue:
1,500M 6.55% 11/1/2008 1,706,250 425
1,000M 6 1/8% 5/1/2014 1,101,250 275
- -----------------------------------------------------------------------------------------------------------------
3,441,250 858
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $35,424,245) 99.3% 39,820,244 9,932
Other Assets, Less Liabilities .7 272,211 68
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $40,092,455 $10,000
=====================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Minnesota Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
MINNESOTA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,289 11,079
DEC 90 11,010 11,886
DEC 91 12,198 13,330
DEC 92 13,330 14,505
DEC 93 14,836 16,286
DEC 94 13,956 15,444
DEC 95 16,145 18,161
DEC 96 16,705 18,932
DEC 97 18,135 20,672
DEC 98 19,266 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.23% (.44%)
Five Years 5.37% 4.02%
Ten Years 7.47% 6.78%
S.E.C. 30-Day Yield 3.75%
Class B Shares
One Year 5.37% 1.37%
Since Inception
(1/12/95) 7.43% 6.82%
S.E.C. 30-Day Yield 3.20%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Minnesota Fund (Class A shares) beginning 1/1/89
with a theoretical investment in the Lehman Brothers Municipal Bond Index.
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.
The Index does not take into account fees and expenses or cost of insurance
of bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (1.12%), 3.33% and 5.89%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 3.10%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been .66% and 6.00%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.51%. 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 Multi-State Insured Tax Free Fund--MINNESOTA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.6%
Certificates of Participation--5.3%
$400M Minneapolis Special School District #001, 5.9%
2/1/2012 $ 441,000 $ 526
- -----------------------------------------------------------------------------------------------------------------
Education--5.3%
400M University of Minnesota 5 3/4% 7/1/2017 443,500 529
- -----------------------------------------------------------------------------------------------------------------
General Obligation--32.9%
325M Becker Wastewater Treatment 5.8% 2/1/2010 346,531 413
180M Blaine Series "A" Fire Improvement 6.8% 2/1/2001* 190,125 227
150M Cass Lake Independent School District #115, 6 5/8%
2/1/2001* 158,063 188
285M Inner Grove Heights Independent School District #199,
5 3/4% 2/1/2012 309,225 368
280M Lakeville 5 1/2% 2/1/2011 296,800 354
405M Lino Lakes 5.7% 2/1/2012 440,944 525
275M Minnesota State 6 1/4% 8/1/2002* 298,375 355
350M North St. Paul Maplewood Independent School
District #622, 7.1% 2/1/2005* 407,750 486
650M Rosemount Independent School District No. #196,
Zero Coupon 4/1/2014 316,875 378
- -----------------------------------------------------------------------------------------------------------------
2,764,688 3,294
- -----------------------------------------------------------------------------------------------------------------
Health Care--24.9%
195M Duluth Economic Development Authority (Duluth Clinic)
6.2% 11/1/2012 213,281 254
200M Hibbing Health Care Facilities Revenue (Duluth Clinic)
5 1/2% 11/1/2016 213,500 254
Minneapolis & St. Paul Hsg. & Redev. Auth. Health
Care System:
150M Childrens Health Care 5.7% 8/15/2016 161,625 193
180M Health One 7.4% 8/15/2011 192,825 230
250M Minneapolis Hospital Revenue (Fairview Hospital)
6 1/2% 1/1/2011 271,250 323
Minnesota Agricultural & Economic Development Board:
Evangelical Lutheran Good Samaritan:
375M 5% 12/1/2015 380,625 454
250M 5.15% 12/1/2022 253,437 302
200M Fairview Hospital 5 3/4% 11/15/2026 215,250 256
170M St. Cloud Hosp. Facs. Rev. (St. Cloud Hosp.) Series "B"
7% 7/1/2001* 186,575 222
- -----------------------------------------------------------------------------------------------------------------
2,088,368 2,488
- -----------------------------------------------------------------------------------------------------------------
Housing--16.7%
120M Eagen Multi-Family Housing (Forest Ridge Apts.)
7 1/2% 3/1/2027 124,216 148
Minnesota State Housing Finance Authority:
610M Rental Housing Revenue 5.9% 8/1/2015 645,848 769
Single Family Mortgage Revenue:
75M 6.9% 7/1/2009 79,875 95
215M 6.4% 1/1/2015 228,975 273
St. Paul Housing & Redevelopment Authority:
65M Multi-Family Housing Revenue 7 1/2% 3/1/2026
(Defaulted)(Note 1A) 66,955 80
240M Single Family Mortgage Revenue 6 1/4% 9/1/2014 255,900 305
- -----------------------------------------------------------------------------------------------------------------
1,401,769 1,670
- -----------------------------------------------------------------------------------------------------------------
Utilities--8.7%
150M Northern Municipal Power Agency Electric System
Revenue 5 1/4% 1/1/2017 156,000 186
210M Southern Minn. Municipal Power Agency Power
Supply System 5 3/4% 1/1/2018* 228,375 272
325M Western Minn. Municipal Power Agency 5 1/2%
1/1/2011 350,187 417
- -----------------------------------------------------------------------------------------------------------------
734,562 875
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--3.8%
300M Scott County Hsg. & Redev. Auth. Fac. Lease Rev.
5 1/2% 12/1/2015 319,875 381
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $7,556,759) 97.6% 8,193,762 9,763
Other Assets, Less Liabilities 2.4 198,934 237
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $8,392,696 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Missouri Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
MISSOURI LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
MAY 92 9,375 10,000
DEC 92 9,917 10,753
DEC 93 11,326 12,073
DEC 94 10,624 11,449
DEC 95 12,594 13,463
DEC 96 13,077 14,035
DEC 97 14,313 15,325
DEC 98 15,256 16,318
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.59% (.06%)
Five Years 6.14% 4.78%
Since Inception
(5/4/92) 7.57% 6.54%
S.E.C. 30-Day Yield 3.76%
Class B Shares
One Year 5.71% 1.71%
Since Inception
(1/12/95) 8.36% 7.76%
S.E.C. 30-Day Yield 3.18%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Missouri Fund (Class A shares) beginning 5/4/92
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.25%), 3.52% and 4.90%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
2.61%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .47% and 6.32%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 1.94%.
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 Multi-State Insured Tax Free Fund--MISSOURI FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--96.5%
Certificates of Participation--2.3%
$ 50M Richmond Heights Capital Improvement Projects 5.3%
8/15/2017 $ 51,250 $ 227
- -----------------------------------------------------------------------------------------------------------------
General Obligation--14.0%
50M Lincoln County Reorg. School District #3, 6.1%
3/1/2005* 55,813 247
90M Puerto Rico Commonwealth 6 1/4% 7/1/2012 107,438 476
50M Springfield School District 7% 3/1/2008 60,875 269
80M St. Charles School District 6 1/2% 2/1/2006* 92,500 410
- -----------------------------------------------------------------------------------------------------------------
316,626 1,402
- -----------------------------------------------------------------------------------------------------------------
Health Care--26.3%
Missouri State Health & Educational Facilities Authority:
140M BJC Health System 6 3/4% 5/15/2011 172,375 763
90M Health Midwest 6.1% 6/1/2011 98,887 438
125M Sisters of Sorrowful Mother Healthcare 6 1/4%
6/1/2007 135,625 601
100M University of Missouri Health Facilities Rev. 5%
1/1/2018 98,625 437
80M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
6 1/4% 7/1/2016 89,500 396
- -----------------------------------------------------------------------------------------------------------------
595,012 2,635
- -----------------------------------------------------------------------------------------------------------------
Housing--4.2%
90M Missouri State Hsg. Devel. Comm. (Ecumenical Housing)
5.8% 3/1/2010 95,513 423
- -----------------------------------------------------------------------------------------------------------------
Transportation--12.8%
100M Bi State Dev. Agcy. St. Clair Cnty. Metrolink Ext. 5%
7/1/2013 101,250 449
75M Kansas City Airport Revenue 6 7/8% 9/1/2004* 87,000 385
85M Puerto Rico Commonwealth Highway & Transportation
Authority 6 1/4% 7/1/2013 100,300 444
- -----------------------------------------------------------------------------------------------------------------
288,550 1,278
- -----------------------------------------------------------------------------------------------------------------
Utilities--19.4%
80M Liberty Sewer System Revenue 6.15% 2/1/2015 90,700 401
Missouri State Env. Impt. & Energy Res. Auth. Water
Poll. Control:
80M 6% 1/1/2016 86,500 383
85M 6.05% 7/1/2016 92,969 412
150M St. Louis Water and Sewer Revenue 6% 7/1/2014 168,187 745
- -----------------------------------------------------------------------------------------------------------------
438,356 1,941
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--17.5%
Clay County Public Bldg. Authority Leasehold Revenue:
25M 7% 5/15/2004* 28,781 127
100M 5 1/8% 5/15/2014 102,250 453
80M Excelsior Springs School Dist. Bldg. Corp. Leasehold
Rev. 6 1/2% 3/1/2009 87,300 387
80M St. Louis Mun. Fing. Corp. Leasehold Revenue 5 3/4%
8/1/2013 86,600 383
80M Warren County Public Facs. Authority Leasehold
Revenue 6.3% 6/1/2010 89,600 397
- -----------------------------------------------------------------------------------------------------------------
394,531 1,747
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $1,968,481) 96.5% 2,179,838 9,653
Other Assets, Less Liabilities 3.5 78,312 347
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $2,258,150 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--New Jersey Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
NEW JERSEY LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,348 11,079
DEC 90 11,121 11,886
DEC 91 12,378 13,330
DEC 92 13,579 14,505
DEC 93 15,356 16,286
DEC 94 14,436 15,444
DEC 95 16,819 18,161
DEC 96 17,339 18,932
DEC 97 18,788 20,672
DEC 98 19,885 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.84% (.80%)
Five Years 5.30% 3.96%
Ten Years 7.81% 7.12%
S.E.C. 30-Day Yield 3.20%
Class B Shares
One Year 5.00% 1.00%
Since Inception
(1/12/95) 7.27% 6.65%
S.E.C. 30-Day Yield 2.61%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--New Jersey Fund (Class A shares) beginning 1/1/89
with a theoretical investment in the Lehman Brothers Municipal Bond Index.
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.
The Index does not take into account fees and expenses or cost of insurance
of bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (.95%), 3.73% and 6.70%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 3.05%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been .84% and 6.46%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.46%. 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 Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.7%
Education--3.8%
New Jersey Educational Facilities Financing Authority:
$1,300M Seton Hall University 6 1/4% 7/1/2010 $ 1,395,875 $ 221
1,000M Drew University 5% 7/1/2017 1,010,000 160
- -----------------------------------------------------------------------------------------------------------------
2,405,875 381
- -----------------------------------------------------------------------------------------------------------------
General Obligation--20.0%
1,750M Atlantic City Board of Education 6.1% 12/1/2015 2,019,063 320
Essex County Improvement Authority:
955M County College Project 6.9% 12/1/2004* 1,122,125 178
Orange School District:
1,025M Series "A" 6.95% 7/1/2005* 1,212,062 192
1,220M Series "B" 6.95% 7/1/2005* 1,442,650 228
1,000M New Jersey State Various Purposes 6% 2/15/2011 1,157,500 183
Pleasantville School District:
1,000M 5% 2/15/2013 1,020,000 162
500M 5% 2/15/2014 506,250 80
1,550M Puerto Rico Commonwealth 6 1/4% 7/1/2013 1,846,437 292
Union City:
1,000M 6.7% 9/1/2002* 1,118,750 177
995M 6.4% 11/1/2013 1,185,294 188
- -----------------------------------------------------------------------------------------------------------------
12,630,131 2,000
- -----------------------------------------------------------------------------------------------------------------
Health Care--23.3%
New Jersey Health Care Facilities Financing Authority:
1,045M Bayonne Hospital 6 1/4% 7/1/2012 1,171,706 186
1,745M General Hospital Center at Passaic 6% 7/1/2014 2,002,388 317
1,100M Hunterdon Hospital 7% 7/1/2020 1,167,375 185
1,750M Monmouth Medical Center 6 1/4% 7/1/2004* 1,979,688 314
1,500M Ocean County Medical Center 6.9% 7/1/2007 1,633,125 259
3,120M Riverview Medical Center 6 1/4% 7/1/2011 3,638,700 576
1,000M St. Barnabas Medical Center 5 1/4% 7/1/2014 1,043,750 165
2,000M Virtua Health 5 1/4% 7/1/2014 2,085,000 330
- -----------------------------------------------------------------------------------------------------------------
14,721,732 2,332
- -----------------------------------------------------------------------------------------------------------------
Housing--3.6%
New Jersey State Housing & Mortgage
Financing Agency:
380M Series "A" 7 1/2% 4/1/2015 393,087 62
420M Series "E" 7.65% 10/1/2016 438,900 70
1,385M Series "C" 7 3/8% 10/1/2017 1,434,832 227
- -----------------------------------------------------------------------------------------------------------------
2,266,819 359
- -----------------------------------------------------------------------------------------------------------------
Transportation--4.9%
1,000M Delaware River Port Authority 5% 1/1/2015 1,007,500 159
1,000M New Jersey State Highway Authority (Garden State
Parkway) 6.2% 1/1/2010 1,147,500 182
1,000M Port Authority N.Y. & N.J. 116th Series 4 1/2%
10/1/2018 947,500 150
- -----------------------------------------------------------------------------------------------------------------
3,102,500 491
- -----------------------------------------------------------------------------------------------------------------
Utilities--15.5%
1,000M Bergen County Utility Authority Pollution Control
6 1/2% 6/15/2002* 1,107,500 175
1,500M Essex County Impt. Auth. Rev. Utility System 5 3/4%
7/1/2027 1,614,375 255
1,410M Jersey City Municipal Utilities Authority 5 1/4%
12/1/2010 1,521,037 241
New Jersey Wastewater Treatment Trust:
1,435M 6 1/4% 4/1/2004* 1,616,169 256
1,310M 7% 7/1/2011 1,621,125 257
1,040M Passaic Valley Water Commission 6.4% 12/15/2002* 1,159,600 184
1,000M Puerto Rico Commonwealth Aqueduct & Sewer
Authority 6 1/4% 7/1/2013 1,180,000 187
- -----------------------------------------------------------------------------------------------------------------
9,819,806 1,555
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--26.6%
2,900M Atlantic County Impt. Auth. Lux. Tax. (Convention
Center) 7.4% 7/1/2016 3,773,625 598
350M Cape May County Indl. Pollution Control Fin. Auth.
6.8% 3/1/2021 442,750 70
1,250M Casino Reinvestment Dev. Auth. Pkg. Fee Rev. 5 1/4%
10/1/2013 1,312,500 208
500M Essex County Impt. Auth. Pkg. Facs. Rev. 5%
10/1/2017 505,000 80
New Jersey Economic Development Authority:
Educational Testing Service:
1,000M 5.9% 5/15/2005* 1,121,250 178
2,000M 6 1/8% 5/15/2005* 2,267,500 359
2,185M Market Transition Facility 5 7/8% 7/1/2011 2,392,575 379
1,775M N.J. Performing Arts Center 6% 6/15/2012 2,041,250 323
Puerto Rico Public Buildings Authority:
1,275M Series "A" 6 1/4% 7/1/2013 1,504,500 238
1,195M Series "A" 6 1/4% 7/1/2014 1,410,100 223
- -----------------------------------------------------------------------------------------------------------------
16,771,050 2,656
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $55,678,655) 61,717,913 9,774
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--.5%
300M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
(Ana G. Mendez Univ. Sys. Proj.) Adjustable Rate
Note 3.60%** (cost $300,000) 300,000 47
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $55,978,655) 98.2% 62,017,913 9,821
Other Assets, Less Liabilities 1.8 1,129,110 179
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $63,147,023 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--North Carolina Fund (Class A shares) and
the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
NORTH CAROLINA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
MAY 92 9,375 10,000
DEC 92 9,769 10,753
DEC 93 11,135 12,073
DEC 94 10,417 11,449
DEC 95 12,367 13,463
DEC 96 12,821 14,035
DEC 97 14,046 15,325
DEC 98 14,990 16,318
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.72% .08%
Five Years 6.13% 4.76%
Since Inception
(5/4/92) 7.28% 6.26%
S.E.C. 30-Day Yield 3.85%
Class B Shares
One Year 5.83% 1.83%
Since Inception
(1/12/95) 8.46% 7.86%
S.E.C. 30-Day Yield 3.31%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--North Carolina Fund (Class A shares) beginning
5/4/92 (inception date) with a theoretical investment in the Lehman
Brothers Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (.80%), 3.71% and 5.08%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
3.01%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .90% and 6.77%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.41%.
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 Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.5%
Certificates of Participation--2.6%
$100M Charlotte Convention Facilities Project 6 3/4%
12/1/2001* $ 110,375 $ 129
100M Cumberland County Civic Center Project 6.3%
12/1/2004* 114,125 134
- -----------------------------------------------------------------------------------------------------------------
224,500 263
- -----------------------------------------------------------------------------------------------------------------
Education--3.2%
250M North Carolina Cent. Univ. Hsg. Rev. 5.6% 11/1/2012 272,500 319
- -----------------------------------------------------------------------------------------------------------------
General Obligation--32.9%
250M Cleveland County 5 1/2% 3/1/2012 269,375 315
200M Cumberland County 5 1/2% 4/1/2012 214,250 251
200M Currituck County 5.4% 4/1/2013 212,500 249
200M Gaston County 5.7% 3/1/2013 215,750 252
220M Laurinburg 5.3% 6/1/2012 232,650 272
200M Mecklenburg County 6.2% 1/1/2002* 215,750 252
200M Morganton 5.7% 6/1/2014 217,000 254
400M Onslow County 5.7% 3/1/2011 435,500 510
235M Puerto Rico Commonwealth 6 1/4% 7/1/2012 280,531 328
280M Rowan County 5.6% 4/1/2014 301,700 353
200M Watauga County 5.9% 6/1/2014 218,500 256
- -----------------------------------------------------------------------------------------------------------------
2,813,506 3,292
- -----------------------------------------------------------------------------------------------------------------
Health Care--19.0%
150M New Hanover County (New Hanover Regional
Medical Center) 5 3/4% 10/1/2026 160,313 188
North Carolina Medical Care Commission Health
Care Facilities:
300M Alamance Regional Medical Center 5% 8/15/2016 299,250 350
200M Mission-St. Joseph's Health System 5.1% 10/1/2018 200,250 234
500M Novant Health Project 5% 10/1/2013 508,750 596
250M Rex Healthcare 5% 6/1/2013 254,375 298
175M Puerto Rico Indl. Tourist Edl. Med. and Env. Ctl. Facs.
6 1/4% 7/1/2016 195,781 229
- -----------------------------------------------------------------------------------------------------------------
1,618,719 1,895
- -----------------------------------------------------------------------------------------------------------------
Housing--1.6%
125M North Carolina Housing Finance Agency Multi-Family
6.6% 7/1/2017 136,406 160
- -----------------------------------------------------------------------------------------------------------------
Transportation--7.0%
505M Puerto Rico Commonwealth Highway & Transportation
Authority 6 1/4% 7/1/2014 595,900 698
- -----------------------------------------------------------------------------------------------------------------
Utilities--27.5%
250M Asheville Water System Revenue 5 5/8% 8/1/2013 273,125 320
250M Buncombe County Solid Waste System 5.6% 3/1/2011 270,313 317
400M Concord Utilities System Revenue 5% 12/1/2017 400,500 469
Fayetteville Public Works Commission Revenue:
390M 5.7% 2/1/2010 426,075 499
250M 5.1% 3/1/2015 255,312 299
250M Kinston Enterprise System Revenue 5.7% 4/1/2012 274,375 321
200M North Carolina Eastern Municipal Power Agency 5.6%
1/1/2010 218,250 255
200M North Carolina Municipal Power Agency (Catawba
Electric) 6% 1/1/2010 226,750 265
- -----------------------------------------------------------------------------------------------------------------
2,344,700 2,745
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--3.7%
270M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2012 319,275 374
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $7,704,050) 97.5% 8,325,506 9,746
Other Assets, Less Liabilities 2.5 217,255 254
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $8,542,761 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Ohio Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
OHIO LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
JAN 89 9,375 10,000
DEC 89 10,410 11,079
DEC 90 11,174 11,886
DEC 91 12,437 13,330
DEC 92 13,680 14,505
DEC 93 15,474 16,286
DEC 94 14,560 15,444
DEC 95 17,085 18,161
DEC 96 17,808 18,932
DEC 97 19,346 20,672
DEC 98 20,364 22,012
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.26% (1.34%)
Five Years 5.64% 4.30%
Ten Years 8.06% 7.37%
S.E.C. 30-Day Yield 3.27%
Class B Shares
One Year 4.46% .46%
Since Inception
(1/12/95) 7.69% 7.08%
S.E.C. 30-Day Yield 2.68%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Ohio Fund (Class A shares) beginning 1/1/89 with a
theoretical investment in the Lehman Brothers Municipal Bond Index. 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.
The Index does not take into account fees and expenses or cost of insurance
of bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. 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 for Class A shares 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 12/31/98)
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 Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Ten Years would
have been (1.75%), 3.85% and 6.74%, respectively, and the S.E.C. 30-Day
Yield for December 1998 would have been 2.87%. The Class B "S.E.C.
Standardized" Average Annual Total Return for One Year and Since Inception
would have been .02% and 6.59%, respectively, and the S.E.C. 30-Day Yield
for December 1998 would have been 2.26%. 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.
Comparison of change in value of $10,000 investment in the First Investors
New York Insured Tax Free Fund, Inc. (Class A shares) and the Lehman
Brothers Municipal Bond Index.
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund - OHIO FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--100.4%
General Obligation--71.8%
$1,000M Adams County Valley Local School District 7%
12/1/2015 $ 1,252,500 $ 621
800M Avon Local School District 6 1/2% 12/1/2015 956,000 474
500M Batavia Local School District 7% 12/1/2005* 595,625 295
1,000M Beaver Creek Local School District 6.6% 12/1/2015 1,206,250 598
425M Bedford Heights 6 1/2% 12/1/2014 478,656 237
500M Brecksville-Broadview Heights City School District
6 1/2% 12/1/2016 571,250 283
250M Cardington & Lincoln Local School District 6.6%
12/1/2014 271,563 135
Cleveland:
500M 6 3/8% 7/1/2002* 551,875 274
250M 6 5/8% 11/15/2004* 289,375 143
500M Clyde-Green Springs Exempted Village School District
7% 12/1/2013 583,750 289
450M Dublin 6.4% 12/1/2014 532,125 264
525M East Clinton Local School District 6 7/8% 12/1/2009 607,687 301
265M Finneytown Local School District 6 1/4% 12/1/2012 310,381 154
700M Garfield Heights 6.3% 12/1/2014 777,000 385
500M Lakeview Local School District 6.9% 12/1/2004* 586,250 291
500M Lakewood City School District 6.95% 12/1/2015 576,250 286
270M Muskingum County 7.2% 12/1/2010 293,962 146
500M North Royalton City School District 6% 12/1/2014 567,500 281
250M Olmsted Falls Local School District 6.85% 12/15/2004* 292,812 145
350M Portage County 6.2% 12/1/2014 386,750 192
285M Shaker Heights City School District 7.1% 12/15/2010 352,331 175
250M Springfield Local School District 7 1/8% 12/1/2012 269,688 134
Summit County:
115M 6.9% 8/1/2012 125,350 62
550M 6.4% 12/1/2014 620,812 308
250M Toledo 6 1/2% 12/1/2002* 279,688 139
500M Tuscarawas Valley Local School District 6.6%
12/1/2015 572,500 284
250M Valley View 7% 12/1/2000* 271,250 134
250M Wayne Local School District 6.45% 12/1/2011 297,813 148
- -----------------------------------------------------------------------------------------------------------------
14,476,993 7,178
- -----------------------------------------------------------------------------------------------------------------
Health Care--7.9%
255M Franklin County Hospital Revenue (Holy Cross Health
System) 7 5/8% 6/1/2009 271,575 135
500M Lorain County Hosp. Rev. (Catholic Healthcare
Partners) 5 1/2% 9/1/2011 535,625 266
300M Montgomery County (Sisters of Charity Health Care)
6 1/4% 5/15/2003* 331,875 164
400M Trumbull County Hospital Revenue 6.9% 11/15/2003* 454,500 225
- -----------------------------------------------------------------------------------------------------------------
1,593,575 790
- -----------------------------------------------------------------------------------------------------------------
Transportation--5.4%
1,000M Ohio State Turnpike Commission Turnpike Revenue
5 1/2% 2/15/2026 1,093,750 542
- -----------------------------------------------------------------------------------------------------------------
Utilities--13.9%
600M Alliance Sewer System Revenue 6% 10/15/2010 661,500 328
500M Cleveland Public Power System 4 3/4% 11/15/2017 488,750 242
340M Cleveland Waterworks Revenue 6 1/2% 1/1/2002* 372,725 185
280M Hamilton Wastewater Revenue 5.9% 10/15/2011 309,400 153
165M Ohio State Air Quality Dev. Auth. Rev. (Ohio
Power Co.) 7.4% 8/1/2009 170,947 85
250M Ohio State Water Dev. Auth. Rev. Pure Water Series
7% 12/1/2009 298,438 148
200M Toledo Water Revenue 6% 11/15/2007 222,000 110
250M Warren Waterworks Revenue 5 1/2% 11/1/2015 271,250 134
- -----------------------------------------------------------------------------------------------------------------
2,795,010 1,385
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--1.4%
250M Ohio State Building Auth. (Juvenile Correction Projects)
6.6% 10/1/2014 283,750 141
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $18,268,332) 20,243,078 10,036
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--1.5%
300M Puerto Rico Commonwealth General Obligation
Adjustable Rate Note 4.00%** (cost $300,000) 300,000 149
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $18,568,332) 101.9% 20,543,078 10,185
Excess of Liabilities Over Other Assets (1.9) (372,675) (185)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $20,170,403 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Oregon Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
OREGON LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
MAY 92 9,375 10,000
DEC 92 9,794 10,753
DEC 93 11,079 12,073
DEC 94 10,343 11,449
DEC 95 12,204 13,463
DEC 96 12,653 14,035
DEC 97 13,914 15,325
DEC 98 14,789 16,318
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 6.29% (.37%)
Five Years 5.95% 4.59%
Since Inception
(5/4/92) 7.06% 6.04%
S.E.C. 30-Day Yield 3.61%
Class B Shares
One Year 5.55% 1.55%
Since Inception
(1/12/95) 8.32% 7.72%
S.E.C. 30-Day Yield 3.05%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Oregon Fund (Class A shares) beginning 5/4/92
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.06%), 3.66% and 4.88%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
2.95%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .82% and 6.57%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.34%.
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 Multi-State Insured Tax Free Fund--OREGON FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.6%
Certificates of Participation--5.5%
$500M Oregon State Dept. of Administrative Services 5.65%
5/1/2012 $ 550,000 $ 391
100M Oregon State Dept. of General Services 6% 9/1/2010 106,875 76
100M Washington County Educational Service District 7%
6/1/2005* 117,125 83
- -----------------------------------------------------------------------------------------------------------------
774,000 550
- -----------------------------------------------------------------------------------------------------------------
Education--3.9%
200M Chemeketa Commmunity College District 6.4%
7/1/2009 227,750 162
100M Multnomah County Educl. Facs. (Univ. of Portland)
5.1% 4/1/2013 103,500 73
200M Oregon State Hlth. & Hsg. Educl. & Cult. Facs.
(Lewis & Clark College) 6% 10/1/2013 221,750 158
- -----------------------------------------------------------------------------------------------------------------
553,000 393
- -----------------------------------------------------------------------------------------------------------------
General Obligation--46.2%
300M Chemeketa Commmunity College District 5.8%
6/1/2006* 334,125 237
500M Clackamas County School District #12, 5 1/4%
6/1/2015 517,500 367
200M Clackamas County School District #115, 5.8%
6/1/2004* 222,000 158
250M Jackson County School District #005 (Ashland) 5.7%
6/1/2007 278,437 198
200M Josephine County School District (Three Rivers) 5.65%
12/1/2008 214,500 152
200M Klamath County Series "A" 5.3% 6/1/2011 217,750 155
245M La Grande 5 5/8% 6/1/2011 262,762 187
Lane County School District:
200M #019 (Springfield) 6 1/4% 10/15/2004* 226,250 161
250M #019 (Springfield) 6% 10/15/2014 287,500 204
115M #052 (Bethel) 7% 12/1/2006 137,281 98
200M Lincoln County School District 5 1/4% 6/15/2012 211,250 150
180M Linn County School District #095 (Scio) 5 3/4%
7/15/2011 194,400 138
100M Marion & Linn Counties Elem. School Dist. #077J
(Stayton) 6.1% 7/1/2005* 112,250 80
200M Polk Marion & Benton Counties School District #13,
5 1/2% 12/1/2008 215,250 153
Puerto Rico Commonwealth:
540M 6 1/4% 7/1/2012 644,625 458
650M 6 1/4% 7/1/2013 774,313 550
250M Tillamook County 5.6% 1/15/2012 270,000 192
Umatilla County School District #016R (Pendleton):
200M 6% 7/1/2004* 222,750 158
500M 5 1/4% 7/1/2014 528,125 375
170M Washington County School District #003 (Hillsboro)
6% 11/1/2005* 190,612 135
Washington County School District #88J (Sherwood):
145M 6.1% 6/1/2005* 162,400 115
55M 6.1% 6/1/2012 60,775 43
200M Yamhill County School District #029J (Newberg) 6.1%
6/1/2004* 222,750 158
- -----------------------------------------------------------------------------------------------------------------
6,507,605 4,622
- -----------------------------------------------------------------------------------------------------------------
Health Care--2.1%
25M Clackamas County Health Facs. Auth. (Adventist Health)
6.35% 3/1/2009 27,031 19
250M Medford Hospital Facs. Auth. (Asante Health System)
5 1/4% 8/15/2013 261,563 186
- -----------------------------------------------------------------------------------------------------------------
288,594 205
- -----------------------------------------------------------------------------------------------------------------
Housing--4.9%
Oregon State Housing & Community Svcs. Dept.
Mtge. Rev. Single Family Mortgage Program:
250M 6% 7/1/2012 268,437 191
400M 5.95% 7/1/2013 424,500 301
- -----------------------------------------------------------------------------------------------------------------
692,937 492
- -----------------------------------------------------------------------------------------------------------------
Transportation--9.9%
Oregon State Department of Transportation Revenue:
100M 7% 6/1/2004 115,250 82
100M 6.2% 6/1/2008 111,375 79
200M 6 1/4% 6/1/2009 222,750 158
Portland Airport Revenue (International Airport):
100M Series 12A - 5% 7/1/2018 100,500 71
250M Series 12B - 5% 7/1/2018 251,250 179
500M Puerto Rico Highway & Transportation Authority
Highway Revenue 6 1/4% 7/1/2014 590,000 419
- -----------------------------------------------------------------------------------------------------------------
1,391,125 988
- -----------------------------------------------------------------------------------------------------------------
Utilities--21.3%
Emerald Peoples Utility District:
100M 6.4% 11/1/2001* 107,625 77
325M 7.35% 11/1/2011 419,250 298
200M Klamath Falls Water Revenue 6.1% 6/1/2014 220,000 156
250M Marion County Solid Waste & Elec. Revenue 5 3/8%
10/1/2008 270,000 192
250M Portland Gas Tax Revenue 5 3/4% 6/1/2012 275,000 195
Portland Sewer System Revenue:
400M 6.2% 6/1/2004* 448,500 319
200M 6 1/4% 6/1/2004* 224,250 159
250M Salem Water & Sewer Revenue 5 1/2% 6/1/2012 268,438 191
200M South Fork Water Board Water Revenue 6% 2/1/2004* 221,250 157
Washington County Unified Sewer Agency:
250M 5 3/4% 10/1/2012 283,125 201
240M 5 1/2% 10/1/2014 257,700 183
- -----------------------------------------------------------------------------------------------------------------
2,995,138 2,128
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--3.8%
100M Puerto Rico Municipal Finance Agency 6% 7/1/2014 109,750 78
355M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2012 419,788 298
- -----------------------------------------------------------------------------------------------------------------
529,538 376
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $12,595,509) 13,731,937 9,754
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--.7%
100M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs.
(Ana G. Mendez Univ. Sys. Proj.) Adjustable Rate
Note 3.60%** (cost $100,000) 100,000 71
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $12,695,509) 98.3% 13,831,937 9,825
Other Assets, Less Liabilities 1.7 246,344 175
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $14,078,281 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Pennsylvania Fund (Class A shares) and
the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
PENNSYLVANIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
APR 90 9,375 10,000
DEC 90 9,830 10,759
DEC 91 10,861 12,066
DEC 92 11,885 13,129
DEC 93 13,583 14,741
DEC 94 12,726 13,979
DEC 95 15,054 16,438
DEC 96 15,564 17,137
DEC 97 16,987 18,711
DEC 98 17,875 19,924
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.23% (1.38%)
Five Years 5.65% 4.29%
Since Inception
(4/30/90) 7.72% 6.92%
S.E.C. 30-Day Yield 3.57%
Class B Shares
One Year 4.39% .39%
Since Inception
(1/12/95) 7.86% 7.25%
S.E.C. 30-Day Yield 3.00%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Pennsylvania Fund (Class A shares) beginning 4/30/90
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.62%), 3.96% and 6.44%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
3.33%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .13% and 6.93%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.74%.
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 Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.9%
Education--12.9%
Allegheny County Higher Educ. Bldg. Auth.
(Duquesne Univ.):
$1,000M 5% 3/1/2016 $ 1,001,250 $ 234
1,570M 5 1/2% 3/1/2020 1,693,637 395
675M Northeast. Pa. Hosp. & Ed. Auth. (Luzerne Cnty.
Cmnty. College) 6.55% 2/15/2005* 765,281 179
1,000M Philadelphia Hosp. & Higher Edl. Facs. Auth.
(Cmnty. College) 6 1/8% 5/1/2014 1,090,000 255
1,000M Washington County Auth. (Girard College Project)
5% 5/15/2018 986,250 230
- -----------------------------------------------------------------------------------------------------------------
5,536,418 1,293
- -----------------------------------------------------------------------------------------------------------------
General Obligation--17.1%
1,470M Erie 5.7% 5/15/2012 1,598,625 373
1,310M General McLane School District 5 3/4% 5/15/2013 1,459,013 341
1,000M Philadelphia 6% 11/15/2014 1,093,750 256
1,500M Pittsburgh 5 1/2% 9/1/2014 1,627,500 380
1,000M Stroudsburg Area School District 5.8% 10/1/2005* 1,102,500 257
400M Trinity Area School District 6 5/8% 11/1/2001* 431,500 101
- -----------------------------------------------------------------------------------------------------------------
7,312,888 1,708
- -----------------------------------------------------------------------------------------------------------------
Health Care--23.3%
Allegheny County Hospital Development Authority:
1,000M Allegheny General Hospital Project 6.2% 9/1/2015 1,013,750 237
Health Center - University of Pittsburgh:
1,000M 5.6% 4/1/2013 1,073,750 251
1,000M 5.65% 4/1/2014 1,075,000 251
1,250M South Hills Health System 5.8% 5/1/2016 1,345,313 314
1,500M Berks County Mun. Auth. Hosp. (Reading Hosp.
Med. Ctr.) 5.7% 10/1/2014 1,663,125 388
1,100M Blair County Hosp. Auth. Rev. (Altoona Hosp.) 6 3/8%
7/1/2014 1,212,750 283
1,000M Dauphin County Gen. Health System (Pinnacle Health
System) 5 1/2% 5/15/2013 1,056,250 246
1,000M Pennsylvania State Higher Edl. Facs. Auth. Health Svcs.
5.7% 11/15/2011 1,031,250 241
500M St. Mary Hosp. Auth., Langhorne (Franciscan Health)
7% 7/1/2014 517,670 121
- -----------------------------------------------------------------------------------------------------------------
9,988,858 2,332
- -----------------------------------------------------------------------------------------------------------------
Housing--2.1%
Pennsylvania Housing Finance Agency
Single-Family Mtge.:
460M 7.15% 4/1/2015 484,725 113
385M 7.3% 10/1/2017 406,175 95
- -----------------------------------------------------------------------------------------------------------------
890,900 208
- -----------------------------------------------------------------------------------------------------------------
Utilities--32.1%
Allegheny County Sanitation Authority Sewer Revenue:
1,100M 6 1/2% 12/1/2001* 1,185,250 277
1,000M 6 1/4% 12/1/2014 1,118,750 261
250M Harrisburg Authority Water Revenue 6 1/2% 8/15/2002* 273,125 64
1,000M North Pennsylvania Water Authority 6 7/8% 11/1/2004* 1,158,750 270
1,000M North Wales Water Authority 6 3/4% 11/1/2004* 1,147,500 268
Philadelphia Water & Wastewater:
1,230M 6 1/4% 8/1/2011 1,439,100 336
2,000M 6 1/4% 8/1/2012 2,347,500 548
2,950M Pittsburgh Water & Sewer Authority 6 1/2% 9/1/2013 3,517,875 822
500M Warminster Township Mun. Auth. Sewer & Water
Revenue 4 3/4% 3/1/2023 475,155 111
1,000M Washington County Indl. Dev. Auth. (West Penn.
Power) 6.05% 4/1/2014 1,095,000 256
- -----------------------------------------------------------------------------------------------------------------
13,758,005 3,213
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.4%
1,500M Harrisburg Authority Pooled Bond Program 5 5/8%
4/01/2015 1,586,250 370
1,000M Pennsylvania Intergovernmental Coop. Auth. Spl. Tax
Rev. 7% 6/15/2005* 1,168,750 273
1,000M Pennsylvania State Industrial Development Authority
6% 1/1/2012 1,087,500 254
1,000M Philadelphia Authority for Ind. Dev. Lease Rev. 5.4%
2/15/2017 1,035,000 242
- -----------------------------------------------------------------------------------------------------------------
4,877,500 1,139
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $38,536,238) 42,364,569 9,893
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--1.2%
500M Lehigh County General Purpose Authority Rev.
(Lehigh Valley Hospital) Adjustable Rate Note
4.90%** (cost $500,000) 500,000 117
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $39,036,238) 100.1% 42,864,569 10,010
Excess of Liabilities Over Other Assets (.1) (42,198) (10)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $42,822,371 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
Comparison of change in value of $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund--Virginia Fund (Class A shares) and the
Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1998
VIRGINIA LEHMAN BROTHERS
FUND MUNICIPAL BOND INDEX
APR 90 9,375 10,000
DEC 90 9,729 10,759
DEC 91 10,830 12,066
DEC 92 11,923 13,129
DEC 93 13,466 14,741
DEC 94 12,663 13,979
DEC 95 14,870 16,438
DEC 96 15,385 17,137
DEC 97 16,774 18,711
DEC 98 17,728 19,924
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 5.69% (.91%)
Five Years 5.65% 4.30%
Since Inception
(4/30/90) 7.61% 6.82%
S.E.C. 30-Day Yield 3.36%
Class B Shares
One Year 4.76% .76%
Since Inception
(1/12/95) 7.74% 7.13%
S.E.C. 30-Day Yield 2.78%
The graph compares a $10,000 investment in the First Investors Multi-State
Insured Tax Free Fund--Virginia Fund (Class A shares) beginning 4/30/90
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. 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. The Index does not take into account fees and expenses or
cost of insurance of bonds held by an insured tax-exempt bond fund. It is
not possible to invest directly in the Lehman Brothers Municipal Bond
Index. 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 for Class A
shares 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 12/31/98)
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 the maximum sales charge was 6.9%). The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales charge
(maximum of 4% in the first year). Some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Since Inception would have been (1.28%), 3.86% and 6.28%,
respectively, and the S.E.C. 30-Day Yield for December 1998 would have been
3.00%. The Class B "S.E.C. Standardized" Average Annual Total Return for
One Year and Since Inception would have been .36% and 6.69%, respectively,
and the S.E.C. 30-Day Yield for December 1998 would have been 2.39%.
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 Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--94.0%
Education--9.3%
$ 575M George Mason University 6 3/8% 2/1/2016 $ 644,000 $ 258
1,100M Norfolk Redev. & Hsg. Auth. (Tidewater Cmnty.
College) 5 7/8% 11/1/2015 1,179,750 474
500M Winchester Indl. Dev. Auth. Educ. Facs. (Shenandoah
Univ. Proj.) 5% 10/1/2018 498,125 200
- -----------------------------------------------------------------------------------------------------------------
2,321,875 932
- -----------------------------------------------------------------------------------------------------------------
General Obligation--9.1%
625M Bristol 5.2% 4/1/2014 660,938 266
1,000M Chesapeake Public Improvement 5% 5/1/2013 1,036,250 416
500M Virginia State Public School Authority 6 1/2%
8/1/2004* 571,250 229
- -----------------------------------------------------------------------------------------------------------------
2,268,438 911
- -----------------------------------------------------------------------------------------------------------------
Health Care--15.0%
1,150M Danville Ind. Dev. Auth. (Danville Reg. Med. Ctr.)
6 3/8% 10/1/2004* 1,303,812 523
500M Medical College Virginia Hospitals Authority 5 1/8%
7/1/2018 504,375 203
1,675M Roanoke Indl. Dev. Auth. (Roanoke Memorial
Hospitals Project) 6 1/8% 7/1/2017 1,926,366 773
- -----------------------------------------------------------------------------------------------------------------
3,734,553 1,499
- -----------------------------------------------------------------------------------------------------------------
Transportation--19.6%
1,000M Puerto Rico Commonwealth Highway & Transportation
Authority 6 1/4% 7/1/2014 1,180,000 474
Richmond Metropolitan Authority Expressway Revenue:
280M 7% 10/15/2000* 308,700 124
1,075M 5 1/4% 7/15/2017 1,130,094 454
Washington, D.C. Metropolitan Area
Transportation Authority:
1,000M 6% 7/1/2008 1,132,500 454
1,000M 6% 7/1/2010 1,140,000 458
- -----------------------------------------------------------------------------------------------------------------
4,891,294 1,964
- -----------------------------------------------------------------------------------------------------------------
Utilities--17.9%
750M Leesburg Utility System Revenue 6.3% 7/1/2002* 826,875 332
500M Loudoun County Sanitation Authority Water & Sewer
Revenue 6 1/4% 1/1/2010 545,625 219
1,000M Norfolk Water Revenue 5 7/8% 11/1/2015 1,091,250 438
1,000M Prince William County Svc. Auth. Water & Sewer
Sys. Rev. 6 1/2% 7/1/2001* 1,086,250 436
200M Roanoke County Water System Revenue 6 1/2%
7/1/2001* 217,250 87
625M Upper Occoquan Sewer Authority Regional Sewer
Revenue 6 1/2% 7/1/2001* 678,906 273
- -----------------------------------------------------------------------------------------------------------------
4,446,156 1,785
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--23.1%
1,000M Chesapeake Indl. Dev. Auth. (Chesapeake Court
House Proj.) 5 1/4% 6/1/2017 1,031,250 414
700M Frederick County Indl. Dev. Auth. (Govt. Complex
Proj.) 6 1/2% 12/1/2014 791,000 318
1,000M Puerto Rico Public Buildings Authority 6 1/4%
7/1/2014 1,180,000 474
Richmond Redev. & Hsg. Auth.
(Old Manchester Projects):
1,000M 6.8% 3/1/2005* 1,167,500 469
500M 5% 3/1/2018 496,875 199
1,000M Riverside Regional Jail Authority 5 7/8% 7/1/2014 1,091,250 438
- -----------------------------------------------------------------------------------------------------------------
5,757,875 2,312
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $21,085,406) 23,420,191 9,403
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT
INVESTMENTS--3.6%
600M Fairfax County Industrial Development Authority
(Inova Svcs. Inc.) Adjustable Rate Note 4.00%** 600,000 241
Roanoke Industrial Development Authority:
200M Roanoke Memorial Hospitals Adjustable Rate
Note 4.00%** 200,000 80
100M Carilion Health System Adjustable Rate
Note 5.05%** 100,000 40
- -----------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Tax Exempt Investments
(cost $900,000) 900,000 361
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments
(cost $21,985,406) 97.6% 24,320,191 9,764
Other Assets, Less Liabilities 2.4 586,665 236
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,906,856 $10,000
=================================================================================================================
*Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
**Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer.
Interest rate shown is the rate in effect at December 31, 1998.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 1998
- -------------------------------------------------- ---------- -------------- ------------
INSURED NEW YORK
INTERMEDIATE INSURED INSURED
TAX EXEMPT TAX EXEMPT TAX FREE
- -------------------------------------------------- ---------- -------------- ------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $9,066,176 $ 976,628,269 $172,980,419
========== ============== ============
At value (Note 1A) $9,514,097 $1,104,557,731 $190,114,617
Cash (overdraft) 82,042 1,009,279 (13,140)
Receivables:
Interest 119,610 19,141,972 3,451,072
Shares sold 239 178,279 37,945
---------- -------------- ------------
Total Assets 9,715,988 1,124,887,261 193,590,494
---------- -------------- ------------
Liabilities
Payables:
Investment securities purchased -- -- --
Distributions payable 11,194 932,834 499,940
Shares redeemed 18,587 458,696 133,319
Accrued advisory fees -- 656,740 104,794
Accrued expenses 12,233 62,705 38,073
---------- -------------- ------------
Total Liabilities 42,014 2,110,975 776,126
---------- -------------- ------------
Net Assets $9,673,974 $1,122,776,286 $192,814,368
========== ============== ============
Net Assets Consist of:
Capital paid in $9,247,885 $998,213,244 $175,680,170
Undistributed net investment income -- 378,717 --
Accumulated net realized loss on investments (21,832) (3,745,137) --
Net unrealized appreciation in value of investments 447,921 127,929,462 17,134,198
---------- -------------- ------------
Total $9,673,974 $1,122,776,286 $192,814,368
========== ============== ============
Net Assets:
Class A $8,673,588 $1,118,898,464 $187,543,710
Class B $1,000,386 $3,877,822 $5,270,658
Shares outstanding (Note 2):
Class A 1,442,164 106,080,591 12,625,536
Class B 166,191 367,618 354,866
Net asset value and redemption price
per share -- Class A $6.01 $10.55 $14.85
========== ============== ============
Maximum offering price per share -- Class A* $6.41 $11.25 $15.84
========== ============== ============
Net asset value and offering price
per share -- Class B (Note 2) $6.02 $10.55 $14.85
========== ============== ============
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 1998
- -------------------------------------------------- -----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------
ARIZONA CALIFORNIA COLORADO CONNECTICUT
- -------------------------------------------------- -----------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $ 9,927,065 $13,619,312 $3,391,104 $18,528,995
=========== =========== ========== ===========
At value (Note 1A) $11,096,312 $15,557,062 $3,771,436 $20,449,598
Cash (overdraft) 35,724 93,511 77,354 90,751
Receivables:
Interest 252,397 235,880 33,552 396,357
Shares sold 190 -- 69,324 1,904
----------- ----------- ---------- -----------
Total Assets 11,384,623 15,886,453 3,951,666 20,938,610
----------- ----------- ---------- -----------
Liabilities
Payables:
Investment securities purchased -- 704,100 -- --
Distributions payable 20,463 75,268 5,421 15,286
Shares redeemed -- 5,012 -- --
Accrued advisory fees 2,813 6,252 648 740
Accrued expenses 152 2,080 54 5,184
----------- ----------- ---------- -----------
Total Liabilities 23,428 792,712 6,123 21,210
----------- ----------- ---------- -----------
Net Assets $11,361,195 $15,093,741 $3,945,543 $20,917,400
=========== =========== ========== ===========
Net Assets Consist of:
Capital paid in $10,233,824 $13,149,534 $3,580,287 $19,039,303
Undistributed net investment income 4,370 6,457 3,021 7,346
Accumulated net realized loss on investments (46,246) -- (18,097) (49,852)
Net unrealized appreciation in value of investments 1,169,247 1,937,750 380,332 1,920,603
----------- ----------- ---------- -----------
Total $11,361,195 $15,093,741 $3,945,543 $20,917,400
=========== =========== ========== ===========
Net Assets:
Class A $10,872,611 $14,614,373 $3,571,128 $17,433,847
Class B $ 488,584 $ 479,368 $ 374,415 $ 3,483,553
Shares outstanding (Note 2):
Class A 798,311 1,198,370 271,494 1,304,927
Class B 35,891 39,327 28,481 260,912
Net asset value and redemption price
per share -- Class A $13.62 $12.20 $13.15 $13.36
=========== =========== ========== ===========
Maximum offering price per share -- Class A* $14.53 $13.01 $14.03 $14.25
=========== =========== ========== ===========
Net asset value and offering price
per share -- Class B (Note 2) $13.61 $12.19 $13.15 $13.35
=========== =========== ========== ===========
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 1998
- -------------------------------------------------- -----------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------------
FLORIDA GEORGIA MARYLAND MASSACHUSETTS
- -------------------------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $23,600,391 $2,931,170 $12,011,214 $21,635,838
=========== ============== ============ ===========
At value (Note 1A) $26,419,937 $3,292,056 $13,188,513 $23,580,746
Cash (overdraft) 4,980 58,443 53,624 (775)
Receivables:
Interest 360,539 66,165 271,716 381,643
Shares sold 44,045 240 9,521 1,409
Investment securities sold -- 146,056 -- --
----------- -------------- ------------ -----------
Total Assets 26,829,501 3,562,960 13,523,374 23,963,023
----------- -------------- ------------ -----------
Liabilities
Payables:
Investment securities purchased -- 146,056 -- --
Distributions payable 83,141 4,680 20,081 83,940
Shares redeemed -- -- 1,782 20,000
Accrued advisory fees 11,137 563 3,363 9,952
Accrued expenses 3,925 -- 2,869 1,736
----------- -------------- ------------ -----------
Total Liabilities 98,203 151,299 28,095 115,628
----------- -------------- ------------ -----------
Net Assets $26,731,298 $3,411,661 $13,495,279 $23,847,395
=========== ============== ============ ===========
Net Assets Consist of:
Capital paid in $23,904,183 $3,049,720 $12,332,426 $21,887,120
Undistributed net investment income 7,569 1,599 5,060 15,367
Accumulated net realized loss on investments -- (544) (19,506) --
Net unrealized appreciation in value of investments 2,819,546 360,886 1,177,299 1,944,908
----------- -------------- ------------ -----------
Total $26,731,298 $3,411,661 $13,495,279 $23,847,395
=========== ============== ============ ===========
Net Assets:
Class A $25,873,129 $3,161,981 $11,279,830 $22,421,368
Class B $ 858,169 $ 249,680 $ ,215,449 $ 1,426,027
Shares outstanding (Note 2):
Class A 1,881,244 238,352 828,251 1,864,884
Class B 62,394 18,840 162,719 118,662
Net asset value and redemption price
per share -- Class A $13.75 $13.27 $13.62 $12.02
=========== ============== ============ ===========
Maximum offering price per share -- Class A* $14.67 $14.15 $14.53 $12.82
=========== ============== ============ ===========
Net asset value and offering price
per share -- Class B (Note 2) $13.75 $13.25 $13.62 $12.02
=========== ============== ============ ===========
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 1998
- -------------------------------------------------- ----------------------------------------
MULTI-STATE INSURED TAX FREE FUND
----------------------------------------
MICHIGAN MINNESOTA MISSOURI
- -------------------------------------------------- ----------------------------------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $35,424,245 $7,556,759 $1,968,481
=========== ========== ===========
At value (Note 1A) $39,820,244 $8,193,762 $2,179,838
Cash (overdraft) (100,400) 47,447 46,121
Receivables:
Interest 505,823 164,000 38,897
Shares sold 1,667 -- --
Investment securities sold 112,387 -- --
----------- ---------- -----------
Total Assets 40,339,721 8,405,209 2,264,856
----------- ---------- -----------
Liabilities
Payables:
Investment securities purchased -- -- --
Distributions payable 130,148 8,017 2,905
Shares redeemed 93,625 -- 3,406
Accrued advisory fees 16,858 2,098 --
Accrued expenses 6,635 2,398 395
----------- ---------- -----------
Total Liabilities 247,266 12,513 6,706
----------- ---------- -----------
Net Assets $40,092,455 $8,392,696 $2,258,150
=========== ========== ===========
Net Assets Consist of:
Capital paid in $35,689,589 $7,817,822 $2,100,230
Undistributed net investment income 6,867 2,937 621
Accumulated net realized loss on investments -- (65,066) (54,058)
Net unrealized appreciation in value of investments 4,395,999 637,003 211,357
----------- ---------- -----------
Total $40,092,455 $8,392,696 $2,258,150
=========== ========== ===========
Net Assets:
Class A $39,060,813 $8,345,707 $2,086,627
Class B $1,031,642 $46,989 $171,523
Shares outstanding (Note 2):
Class A 2,983,440 710,163 160,881
Class B 78,852 3,998 13,220
Net asset value and redemption price
per share -- Class A $13.09 $11.75 $12.97
=========== ========== ===========
Maximum offering price per share -- Class A* $13.96 $12.53 $13.83
=========== ========== ===========
Net asset value and offering price
per share -- Class B (Note 2) $13.08 $11.75 $12.97
=========== ========== ===========
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 1998
- ------------------------- ----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------
NORTH
NEW JERSEY CAROLINA OHIO
- ------------------------- ----------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $55,978,655 $7,704,050 $18,568,332
=========== =========== ============
At value (Note 1A) $62,017,913 $8,325,506 $20,543,078
Cash 73,574 91,375 59,661
Receivables:
Interest 1,215,725 138,518 162,767
Shares sold 115,048 225 7,319
----------- ----------- ------------
Total Assets 63,422,260 8,555,624 20,772,825
----------- ----------- ------------
Liabilities
Payables:
Investment securities purchased -- -- 494,324
Distributions payable 196,439 11,354 38,690
Shares redeemed 27,641 70 55,608
Accrued advisory fees 31,559 1,420 8,466
Accrued expenses 19,598 19 5,334
----------- ----------- ------------
Total Liabilities 275,237 12,863 602,422
----------- ----------- ------------
Net Assets $63,147,023 $8,542,761 $20,170,403
=========== =========== ============
Net Assets Consist of:
Capital paid in $57,106,129 $7,999,784 $18,167,174
Undistributed net investment income 1,636 1,414 28,483
Accumulated net realized loss
on investments -- (79,893) --
Net unrealized appreciation in value
of investments 6,039,258 621,456 1,974,746
----------- ----------- ------------
Total $63,147,023 $8,542,761 $20,170,403
=========== =========== ============
Net Assets:
Class A $60,585,265 $8,296,628 $19,767,114
Class B $ 2,561,758 $ 246,133 $ 403,289
Shares outstanding (Note 2):
Class A 4,552,469 642,993 1,556,692
Class B 192,822 19,076 31,767
Net asset value and redemption price
per share -- Class A $13.31 $12.90 $12.70
=========== =========== ============
Maximum offering price per share
- -- Class A* $14.20 $13.76 $13.55
=========== =========== ============
Net asset value and offering price
per share -- Class B (Note 2) $13.29 $12.90 $12.70
=========== =========== ============
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
December 31, 1998
- ------------------------- ---------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------
OREGON PENNSYLVANIA VIRGINIA
- ------------------------- ---------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $12,695,509 $39,036,238 $21,985,406
=========== ============ ===========
At value (Note 1A) $13,831,937 $42,864,569 $24,320,191
Cash 58,312 91,845 84,913
Receivables:
Interest 199,360 598,263 481,082
Shares sold 3,582 59,092 92,299
----------- ------------ -----------
Total Assets 14,093,191 43,613,769 24,978,485
----------- ------------ -----------
Liabilities
Payables:
Investment securities purchased -- 484,001 --
Distributions payable 11,165 164,272 58,955
Shares redeemed -- 118,677 --
Accrued advisory fees 2,824 17,950 10,291
Accrued expenses 921 6,498 2,383
----------- ------------ -----------
Total Liabilities 14,910 791,398 71,629
----------- ------------ -----------
Net Assets $14,078,281 $42,822,371 $24,906,856
=========== ============ ===========
Net Assets Consist of:
Capital paid in $13,105,210 $38,873,083 $22,553,187
Undistributed net investment income -- 120,957 18,891
Accumulated net realized loss
on investments (163,357) -- (7)
Net unrealized appreciation in value
of investments 1,136,428 3,828,331 2,334,785
----------- ------------ -----------
Total $14,078,281 $42,822,371 $24,906,856
=========== ============ ===========
Net Assets:
Class A $13,038,412 $40,774,170 $23,423,035
Class B $ 1,039,869 $ 2,048,201 $ 1,483,821
Shares outstanding (Note 2):
Class A 1,020,785 3,075,296 1,765,804
Class B 81,523 154,597 112,055
Net asset value and redemption price
per share -- Class A $12.77 $13.26 $13.26
=========== ============ ===========
Maximum offering price per share
- -- Class A* $13.62 $14.14 $14.14
=========== ============ ===========
Net asset value and offering price
per share -- Class B (Note 2) $12.76 $13.25 $13.24
=========== ============ ===========
* 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
Year Ended December 31, 1998
- -------------------------------------------------- ---------- -------------- ------------
INSURED NEW YORK
INTERMEDIATE INSURED INSURED
TAX EXEMPT TAX EXEMPT TAX FREE
- -------------------------------------------------- ---------- -------------- ------------
<S> <C> <C> <C>
Investment Income
Interest income $461,571 $64,952,495 $10,982,001
========== ============== ============
Expenses (Notes 1 and 5):
Advisory fees 51,962 8,060,955 1,457,759
Distribution plan expenses -- Class A 23,290 3,218,572 569,485
Distribution plan expenses -- Class B 8,970 36,853 45,395
Shareholder servicing costs 8,905 955,752 161,388
Professional fees 12,486 76,968 42,916
Custodian fees 2,771 80,332 19,374
Reports to shareholders 642 63,137 29,521
Bond insurance premiums -- 144,407 19,103
Other expenses 4,768 153,896 57,218
---------- -------------- ------------
Total expenses 113,794 12,790,872 2,402,159
Less: Expenses waived or assumed (58,274) -- (194,368)
Custodian fees paid indirectly (2,751) (30,135) (10,124)
---------- -------------- ------------
Expenses -- net 52,769 12,760,737 2,197,667
---------- -------------- ------------
Net investment income 408,802 52,191,758 8,784,334
---------- -------------- ------------
Realized and Unrealized Gain (Loss)
on Investments (Note 4):
Net realized gain on investments 153,017 4,350,118 1,855,430
Net unrealized appreciation (depreciation)
of investments (15,130) 5,576,047 (57,095)
---------- -------------- ------------
Net gain on investments 137,887 9,926,165 1,798,335
---------- -------------- ------------
Net Increase in Net Assets Resulting
from Operations $546,689 $62,117,923 $10,582,669
========== ============== ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 1998
- -------------------------------------------------- -----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------
ARIZONA CALIFORNIA COLORADO CONNECTICUT
- -------------------------------------------------- -----------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Interest income $578,222 $823,894 $204,901 $1,073,660
=========== =========== ========== ===========
Expenses (Notes 1 and 5):
Advisory fees 80,892 115,062 28,802 149,832
Distribution plan expenses -- Class A 20,672 29,913 6,953 33,410
Distribution plan expenses -- Class B 4,499 3,850 3,637 32,725
Shareholder servicing costs 9,396 10,478 6,427 16,610
Professional fees 4,687 9,837 1,468 12,650
Custodian fees 2,258 3,672 1,095 3,528
Reports to shareholders 1,086 4,274 790 3,266
Bond insurance premiums 231 807 -- 3,077
Other expenses 3,908 3,700 2,000 7,269
----------- ----------- ---------- -----------
Total expenses 127,629 181,593 51,172 262,367
Less: Expenses waived or assumed (67,765) (53,288) (31,760) (73,603)
Custodian fees paid indirectly (2,225) (2,466) (1,084) (3,236)
----------- ----------- ---------- -----------
Expenses -- net 57,639 125,839 18,328 185,528
----------- ----------- ---------- -----------
Net investment income 520,583 698,055 186,573 888,132
----------- ----------- ---------- -----------
Realized and Unrealized Gain (Loss)
on Investments (Note 4):
Net realized gain on investments 38,699 138,965 6,145 90,498
Net unrealized appreciation (depreciation)
of investments 88,188 89,987 37,825 185,864
----------- ----------- ---------- -----------
Net gain on investments 126,887 228,952 43,970 276,362
----------- ----------- ---------- -----------
Net Increase in Net Assets Resulting
from Operations $647,470 $927,007 $230,543 $1,164,494
=========== =========== ========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 1998
- -------------------------------------------------- --------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------
FLORIDA GEORGIA MARYLAND
- -------------------------------------------------- --------------------------------------------
<S> <C> <C> <C>
Investment Income
Interest income $1,364,971 $173,909 $691,557
----------- ----------- ------------
Expenses (Notes 1 and 5):
Advisory fees 192,840 24,646 97,393
Distribution plan expenses -- Class A 49,748 6,117 22,073
Distribution plan expenses -- Class B 8,377 2,281 19,494
Shareholder servicing costs 17,139 3,703 11,859
Professional fees 13,870 2,134 7,053
Custodian fees 4,453 896 2,565
Reports to shareholders 3,133 337 1,133
Bond insurance premiums -- 210 2,839
Other expenses 8,375 1,815 4,237
----------- ----------- ------------
Total expenses 297,935 42,139 168,646
Less: Expenses waived or assumed (81,049) (26,285) (85,465)
Custodian fees paid indirectly (4,136) (885) (2,509)
----------- ----------- ------------
Expenses -- net 212,750 14,969 80,672
----------- ----------- ------------
Net investment income 1,152,221 158,940 610,885
----------- ----------- ------------
Realized and Unrealized Gain (Loss)
on Investments (Note 4):
Net realized gain on investments 131,106 10,671 59,511
Net unrealized appreciation (depreciation)
of investments 232,807 21,236 121,325
----------- ----------- ------------
Net gain on investments 363,913 31,907 180,836
----------- ----------- ------------
Net Increase in Net Assets Resulting
from Operations $1,516,134 $190,847 $791,721
=========== =========== ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 1998
- -------------------------------------------------- -----------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------
MICHIGAN MINNESOTA MISSOURI
- -------------------------------------------------- -----------------------------------------
<S> <C> <C> <C>
Investment Income
Interest income $2,168,619 $455,292 $113,212
----------- ----------- -----------
Expenses (Notes 1 and 5):
Advisory fees 301,761 61,475 15,905
Distribution plan expenses -- Class A 78,440 16,303 3,995
Distribution plan expenses -- Class B 10,151 455 1,222
Shareholder servicing costs 28,293 9,129 3,224
Professional fees 14,923 6,438 2,176
Custodian fees 5,297 1,701 596
Reports to shareholders 11,185 1,213 445
Bond insurance premiums 1,914 2,164 88
Other expenses 15,692 4,014 1,522
----------- ----------- -----------
Total expenses 467,656 102,892 29,173
Less: Expenses waived or assumed (100,587) (59,806) (19,108)
Custodian fees paid indirectly (2,973) (1,676) (590)
----------- ----------- -----------
Expenses -- net 364,096 41,410 9,475
----------- ----------- -----------
Net investment income 1,804,523 413,882 103,737
----------- ----------- -----------
Realized and Unrealized Gain (Loss)
on Investments (Note 4):
Net realized gain on investments 291,714 29,226 10,441
Net unrealized appreciation (depreciation)
of investments 85,297 51,706 23,945
----------- ----------- -----------
Net gain on investments 377,011 80,932 34,386
----------- ----------- -----------
Net Increase in Net Assets Resulting
from Operations $2,181,534 $494,814 $138,123
=========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 1998
- ------------------------- ----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------
NORTH
NEW JERSEY CAROLINA OHIO
- ------------------------- ----------------------------------------------------
<S> <C> <C> <C>
Investment Income
Interest income $3,378,561 $399,408 $1,116,509
----------- ------------ ------------
Expenses (Notes 1 and 5):
Advisory fees 461,383 59,265 148,974
Distribution plan expenses -- Class A 118,568 15,358 38,963
Distribution plan expenses -- Class B 22,334 2,230 3,815
Shareholder servicing costs 42,100 6,945 19,823
Professional fees 27,631 2,692 9,654
Custodian fees 9,348 1,916 2,994
Reports to shareholders 8,016 1,026 7,119
Bond insurance premiums 2,003 429 1,337
Other expenses 14,246 3,104 9,089
----------- ------------ ------------
Total expenses 705,629 92,965 241,768
Less: Expenses waived or assumed (92,277) (57,620) (77,574)
Custodian fees paid indirectly (6,668) (1,892) (2,200)
----------- ------------ ------------
Expenses -- net 606,684 33,453 161,994
----------- ------------ ------------
Net investment income 2,771,877 365,955 954,515
----------- ------------ ------------
Realized and Unrealized Gain (Loss)
on Investments (Note 4):
Net realized gain on investments 662,131 16,557 105,338
Net unrealized appreciation
(depreciation) of investments 23,799 132,846 (42,129)
----------- ------------ ------------
Net gain on investments 685,930 149,403 63,209
----------- ------------ ------------
Net Increase in Net Assets Resulting
from Operations $3,457,807 $515,358 $1,017,724
=========== ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Year Ended December 31, 1998
- ------------------------- ---------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------
OREGON PENNSYLVANIA VIRGINIA
- ------------------------- ---------------------------------------------------
<S> <C> <C> <C>
Investment Income
Interest income $665,907 $2,433,188 $1,286,864
----------- ------------ -----------
Expenses (Notes 1 and 5):
Advisory fees 97,924 322,441 178,665
Distribution plan expenses -- Class A 24,328 82,075 44,746
Distribution plan expenses -- Class B 8,923 19,558 14,480
Shareholder servicing costs 17,171 29,358 21,809
Professional fees 7,319 13,209 11,315
Custodian fees 2,739 5,073 4,018
Reports to shareholders 1,932 5,562 3,967
Bond insurance premiums 1,045 1,261 2,383
Other expenses 4,147 15,722 5,529
----------- ------------ -----------
Total expenses 165,528 494,259 286,912
Less: Expenses waived or assumed (90,291) (107,480) (81,178)
Custodian fees paid indirectly (2,614) (4,310) (3,547)
----------- ------------ -----------
Expenses -- net 72,623 382,469 202,187
----------- ------------ -----------
Net investment income 593,284 2,050,719 1,084,677
----------- ------------ -----------
Realized and Unrealized Gain (Loss)
on Investments (Note 4):
Net realized gain on investments 21,921 303,417 170,072
Net unrealized appreciation
(depreciation) of investments 176,273 (173,315) 41,410
----------- ------------ -----------
Net gain on investments 198,194 130,102 211,482
----------- ------------ -----------
Net Increase in Net Assets Resulting
from Operations $791,478 $2,180,821 $1,296,159
=========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- -------------------------------------------------------
INSURED INTERMEDIATE INSURED
TAX EXEMPT TAX EXEMPT
---------------------- -------------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $408,802 $398,687 $52,191,758 $59,282,250
Net realized gain on investments 153,017 50,171 4,350,118 6,301,947
Net unrealized appreciation (depreciation)
of investments (15,130) 137,858 5,576,047 30,510,966
---------- ---------- -------------- --------------
Net increase in net assets resulting from operations 546,689 586,716 62,117,923 96,095,163
---------- ---------- -------------- --------------
Distributions to Shareholders
Net investment income -- Class A (382,903) (369,696) (51,992,144) (59,425,389)
Net investment income -- Class B (35,153) (28,946) (139,136) (139,453)
Net realized gains -- Class A -- -- -- --
Net realized gains -- Class B -- -- -- --
---------- ---------- -------------- --------------
Total distributions (418,056) (398,642) (52,131,280) (59,564,842)
---------- ---------- -------------- --------------
Share Transactions (a)
Class A:
Proceeds from shares sold 1,897,134 1,296,789 28,870,405 25,022,487
Reinvestment of distributions 255,404 252,840 39,823,598 45,619,578
Cost of shares redeemed (939,120) (1,789,778) (151,567,231) (167,860,367)
---------- ---------- -------------- --------------
1,213,418 (240,149) (82,873,228) (97,218,302)
---------- ---------- -------------- --------------
Class B:
Proceeds from shares sold 324,697 280,224 878,737 784,544
Reinvestment of distributions 25,323 18,802 116,143 106,089
Cost of shares redeemed (170,139) (123,256) (606,637) (581,697)
---------- ---------- -------------- --------------
179,881 175,770 388,243 308,936
---------- ---------- -------------- --------------
Net increase (decrease) from share transactions 1,393,299 (64,379) (82,484,985) (96,909,366)
---------- ---------- -------------- --------------
Net increase (decrease) in net assets 1,521,932 123,695 (72,498,342) (60,379,045)
Net Assets
Beginning of year 8,152,042 8,028,347 1,195,274,628 1,255,653,673
---------- ---------- -------------- --------------
End of year+ $9,673,974 $8,152,042 $1,122,776,286 $1,195,274,628
========== ========== ============== ==============
+Includes undistributed net investment income of $ -- $ 2,793 $ 378,717 $ 318,239
========== ========== ============== ==============
(a) Shares Issued and Redeemed
Class A:
Sold 317,906 223,924 2,745,318 2,452,421
Issued for distributions reinvested 42,864 43,437 3,798,052 4,476,197
Redeemed (158,006) (308,527) (14,459,581) (16,510,382)
---------- ---------- -------------- --------------
Net increase (decrease) in Class A shares outstanding 202,764 (41,166) (7,916,211) (9,581,764)
========== ========== ============== ==============
Class B:
Sold 54,364 48,220 83,541 77,307
Issued for distributions reinvested 4,244 3,220 11,071 10,406
Redeemed (28,578) (21,066) (57,995) (57,234)
---------- ---------- -------------- --------------
Net increase in Class B shares outstanding 30,030 30,374 36,617 30,479
========== ========== ============== ==============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- -----------------------------------------------------
NEW YORK MULTI-STATE INSURED
INSURED TAX FREE ARIZONA
--------------------------- ------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- -----------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $8,784,334 $9,669,364 $520,583 $462,459
Net realized gain on investments 1,855,430 999,973 38,699 18,999
Net unrealized appreciation (depreciation)
of investments (57,095) 4,334,404 88,188 350,052
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 10,582,669 15,003,741 647,470 831,510
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income -- Class A (8,631,460) (9,533,619) (498,161) (449,449)
Net investment income -- Class B (172,992) (124,703) (18,089) (13,842)
Net realized gains -- Class A (1,811,151) (991,578) -- --
Net realized gains -- Class B (50,918) (18,325) -- --
------------ ------------ ----------- -----------
Total distributions (10,666,521) (10,668,225) (516,250) (463,291)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 8,482,447 8,821,313 1,873,481 2,127,438
Reinvestment of distributions 7,708,106 7,725,167 266,865 250,827
Cost of shares redeemed (23,835,964) (29,029,473) (1,084,999) (1,422,398)
------------ ------------ ----------- -----------
(7,645,411) (12,482,993) 1,055,347 955,867
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 1,882,792 1,309,248 87,136 175,581
Reinvestment of distributions 152,887 85,393 10,895 8,313
Cost of shares redeemed (367,708) (109,219) (51,458) (51,410)
------------ ------------ ----------- -----------
1,667,971 1,285,422 46,573 132,484
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions (5,977,440) (11,197,571) 1,101,920 1,088,351
------------ ------------ ----------- -----------
Net increase (decrease) in net assets (6,061,292) (6,862,055) 1,233,140 1,456,570
Net Assets
Beginning of year 198,875,660 205,737,715 10,128,055 8,671,485
------------ ------------ ----------- -----------
End of year+ $192,814,368 $198,875,660 $11,361,195 $10,128,055
============ ============ =========== ===========
+Includes undistributed net investment income of $ -- $15,802 $4,370 $37
============ ============ =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 570,191 605,875 138,599 162,298
Issued for distributions reinvested 518,763 528,609 19,715 19,141
Redeemed (1,603,307) (1,993,188) (80,274) (108,423)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares outstanding (514,353) (858,704) 78,040 73,016
============ ============ =========== ===========
Class B:
Sold 126,852 89,912 6,468 13,468
Issued for distributions reinvested 10,288 5,830 805 634
Redeemed (24,762) (7,506) (3,850) (3,943)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 112,378 88,236 3,423 10,159
============ ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- ---------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------------
CALIFORNIA COLORADO
----------------------- -------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- ----------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $698,055 $734,070 $186,573 $186,181
Net realized gain on investments 138,965 222,497 6,145 27,776
Net unrealized appreciation of investments 89,987 457,511 37,825 120,228
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations 927,007 1,414,078 230,543 334,185
----------- ----------- ----------- -----------
Distributions to Shareholders
Net investment income - Class A (679,429) (730,988) (169,316) (173,961)
Net investment income - Class B (14,501) (4,864) (14,712) (11,744)
Net realized gains - Class A (135,517) (220,063) -- --
Net realized gains - Class B (4,461) (3,128) -- --
----------- ----------- ----------- -----------
Total distributions (833,908) (959,043) (184,028) (185,705)
----------- ----------- ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 1,594,351 1,926,113 749,804 543,509
Reinvestment of distributions 451,949 543,564 101,964 103,551
Cost of shares redeemed (3,123,781) (2,878,847) (746,101) (825,607)
----------- ----------- ----------- -----------
(1,077,481) (409,170) 105,667 (178,547)
----------- ----------- ----------- -----------
Class B:
Proceeds from shares sold 266,114 100,191 10,000 125,400
Reinvestment of distributions 7,758 3,784 13,717 11,359
Cost of shares redeemed (17,116) (133) (24,612) (19,006)
----------- ----------- ----------- -----------
256,756 103,842 (895) 117,753
----------- ----------- ----------- -----------
Net increase (decrease) from share transactions (820,725) (305,328) 104,772 (60,794)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets (727,626) 149,707 151,287 87,686
Net Assets
Beginning of year 15,821,367 15,671,660 3,794,256 3,706,570
----------- ----------- ----------- -----------
End of year+ $15,093,741 $15,821,367 $3,945,543 $3,794,256
=========== =========== =========== ===========
+Includes undistributed net investment income of $ 6,457 $ 2,332 $ 3,021 $ 476
=========== =========== =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 131,137 162,506 57,230 43,260
Issued for distributions reinvested 37,073 45,562 7,805 8,215
Redeemed (257,038) (243,525) (57,208) (65,387)
---------- ----------- ----------- -----------
Net increase (decrease) in Class A shares
outstanding (88,828) (35,457) 7,827 (13,912)
=========== =========== =========== ===========
Class B:
Sold 21,895 8,213 772 9,886
Issued for distributions reinvested 636 317 1,051 899
Redeemed (1,396) (11) (1,877) (1,536)
----------- ----------- ----------- -----------
Net increase (decrease) in Class B shares
outstanding 21,135 8,519 (54) 9,249
=========== =========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- ---------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------------
CONNECTICUT FLORIDA
------------------------- ------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- ---------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $888,132 $795,326 $1,152,221 $1,129,186
Net realized gain on investments 90,498 50,520 131,106 67,791
Net unrealized appreciation of investments 185,864 584,046 232,807 918,984
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations 1,164,494 1,429,892 1,516,134 2,115,961
----------- ----------- ----------- -----------
Distributions to Shareholders
Net investment income - Class A (759,838) (727,487) (1,115,201) (1,103,241)
Net investment income - Class B (122,488) (69,611) (31,678) (25,765)
Net realized gains - Class A -- -- (127,113) (64,428)
Net realized gains - Class B -- -- (4,219) (2,262)
----------- ----------- ----------- -----------
Total distributions (882,326) (797,098) (1,278,211) (1,195,696)
----------- ----------- ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 2,358,296 3,345,337 4,069,057 3,953,847
Reinvestment of distributions 600,282 577,348 656,546 639,331
Cost of shares redeemed (1,910,271) (3,536,484) (2,922,734) (4,945,111)
----------- ----------- ----------- -----------
1,048,307 386,201 1,802,869 (351,933)
----------- ----------- ----------- -----------
Class B:
Proceeds from shares sold 626,852 1,650,444 73,697 383,014
Reinvestment of distributions 107,129 60,562 23,726 19,073
Cost of shares redeemed (189,093) (396,030) (83,656) (141,095)
----------- ----------- ----------- -----------
544,888 1,314,976 13,767 260,992
----------- ----------- ----------- -----------
Net increase (decrease) from share transactions 1,593,195 1,701,177 1,816,636 (90,941)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets 1,875,363 2,333,971 2,054,559 829,324
Net Assets
Beginning of year 19,042,037 16,708,066 24,676,739 23,847,415
----------- ----------- ----------- -----------
End of year+ $20,917,400 $19,042,037 $26,731,298 $24,676,739
=========== =========== =========== ===========
+Includes undistributed net investment income of $7,346 $1,540 $7,569 $2,227
=========== =========== =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 178,314 261,160 297,455 297,950
Issued for distributions reinvested 45,259 44,937 47,988 48,100
Redeemed (144,562) (276,898) (214,071) (373,839)
----------- ----------- ----------- -----------
Net increase (decrease) in Class A shares
outstanding 79,011 29,199 131,372 (27,789)
=========== =========== =========== ===========
Class B:
Sold 47,451 127,371 5,380 28,887
Issued for distributions reinvested 8,081 4,708 1,734 1,432
Redeemed (14,215) (30,991) (6,133) (10,782)
----------- ----------- ----------- -----------
Net increase (decrease) in Class B shares
outstanding 41,317 101,088 981 19,537
=========== =========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- -----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-------------------------------------------------------
GEORGIA MARYLAND
---------------------- -----------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $158,940 $168,712 $610,885 $570,758
Net realized gain on investments 10,671 30,180 59,511 42,900
Net unrealized appreciation (depreciation)
of investments 21,236 119,243 121,325 452,934
---------- ---------- -------------- --------------
Net increase in net assets resulting from operations 190,847 318,135 791,721 1,066,592
---------- ---------- -------------- --------------
Distributions to Shareholders
Net investment income -- Class A (148,474) (160,266) (529,069) (511,125)
Net investment income -- Class B (9,211) (8,102) (77,864) (58,525)
Net realized gains -- Class A -- -- -- --
Net realized gains -- Class B -- -- -- --
---------- ---------- -------------- --------------
Total distributions (157,685) (168,368) (606,933) (569,650)
---------- ---------- -------------- --------------
Share Transactions (a)
Class A:
Proceeds from shares sold 386,432 311,222 1,771,728 1,369,331
Reinvestment of distributions 95,448 121,894 310,259 315,673
Cost of shares redeemed (502,013) (691,067) (1,665,358) (1,531,338)
---------- ---------- -------------- --------------
(20,133) (257,951) 416,629 153,666
---------- ---------- -------------- --------------
Class B:
Proceeds from shares sold 35,384 46,095 670,361 755,812
Reinvestment of distributions 9,211 8,065 42,872 33,277
Cost of shares redeemed (246) (11,387) (306,875) (90,836)
---------- ---------- -------------- --------------
44,349 42,773 406,358 698,253
---------- ---------- -------------- --------------
Net increase (decrease) from share transactions 24,216 (215,178) 822,987 851,919
---------- ---------- -------------- --------------
Net increase (decrease) in net assets 57,378 (65,411) 1,007,775 1,348,861
Net Assets
Beginning of year 3,354,283 3,419,694 12,487,504 11,138,643
---------- ---------- -------------- --------------
End of year+ $3,411,661 $3,354,283 $13,495,279 $12,487,504
========== ========== ============== ==============
+Includes undistributed net investment income of $ 1,599 $ 344 $ 5,060 $ 1,108
========== ========== ============== ==============
(a) Shares Issued and Redeemed
Class A:
Sold 29,199 24,835 131,413 105,429
Issued for distributions reinvested 7,242 9,603 22,976 24,226
Redeemed (38,181) (54,774) (123,247) (118,217)
---------- ---------- -------------- --------------
Net increase (decrease) in Class A shares
outstanding (1,740) (20,336) 31,142 11,438
========== ========== ============== ==============
Class B:
Sold 2,699 3,668 49,637 57,852
Issued for distributions reinvested 699 635 3,172 2,552
Redeemed (18) (895) (22,830) (6,964)
---------- ---------- -------------- --------------
Net increase in Class B shares outstanding 3,380 3,408 29,979 53,440
========== ========== ============== ==============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- -----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------
MASSACHUSETTS MICHIGAN
--------------------------- ------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- -----------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $1,105,621 $1,155,755 $1,804,523 $1,845,635
Net realized gain on investments 459,494 140,093 291,714 142,240
Net unrealized appreciation (depreciation)
of investments (356,826) 551,435 85,297 1,509,328
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 1,208,289 1,847,283 2,181,534 3,497,203
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income -- Class A (1,050,431) (1,133,213) (1,762,486 (1,809,590)
Net investment income -- Class B (39,990) (26,803) (37,283) (33,932)
Net realized gains -- Class A (433,402) (137,168) (284,638) (138,717)
Net realized gains -- Class B (27,565) (4,721) (7,529) (3,576)
------------ ------------ ----------- -----------
Total distributions (1,551,388) (1,301,905) (2,091,936) (1,985,815)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 1,552,045 2,739,539 3,003,493 3,513,245
Reinvestment of distributions 1,192,740 983,401 1,271,187 1,129,433
Cost of shares redeemed (2,854,850) (3,944,233) (4,881,005) (3,465,523)
------------ ------------ ----------- -----------
(110,065) (221,293) (606,325) 1,177,155
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 678,504 242,414 199,508 261,965
Reinvestment of distributions 55,380 24,880 24,681 19,651
Cost of shares redeemed (68,670) (18,083) (214,257) (23,603)
------------ ------------ ----------- -----------
665,214 249,211 9,932 258,013
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions 555,149 27,918 (596,393) 1,435,168
------------ ------------ ----------- -----------
Net increase (decrease) in net assets 212,050 573,296 (506,795) 2,946,556
Net Assets
Beginning of year 23,635,345 23,062,049 40,599,250 37,652,694
------------ ------------ ----------- -----------
End of year+ $23,847,395 $23,635,345 $40,092,455 $40,599,250
============ ============ =========== ===========
+Includes undistributed net investment income of $ 15,367 $ 167 $ 6,867 $ 2,113
============ ============ =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 127,084 228,885 229,191 278,017
Issued for distributions reinvested 98,331 81,842 97,042 88,609
Redeemed (233,988) (328,701) (373,083) (273,847)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding (8,573) (17,974) (46,850) 92,779
============ ============ =========== ===========
Class B:
Sold 55,365 20,137 15,260 20,673
Issued for distributions reinvested 4,572 2,069 1,886 1,542
Redeemed (5,536) (1,506) (16,302) (1,854)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 54,401 20,700 844 20,361
============ ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- ------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------
MINNESOTA MISSOURI
---------------------- ------------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $413,882 $438,481 $103,737 $98,660
Net realized gain on investments 29,226 47,529 10,441 8,239
Net unrealized appreciation of investments 51,706 197,717 23,945 69,406
---------- ---------- -------------- --------------
Net increase in net assets resulting from operations 494,814 683,727 138,123 176,305
---------- ---------- -------------- --------------
Distributions to Shareholders
Net investment income -- Class A (409,132) (436,938) (98,269) (95,683)
Net investment income -- Class B (1,904) (1,867) (5,007) (3,062)
Net realized gains -- Class A -- -- -- --
Net realized gains -- Class B -- -- -- --
---------- ---------- -------------- --------------
Total distributions (411,036) (438,805) (103,276) (98,745)
---------- ---------- -------------- --------------
Share Transactions (a)
Class A:
Proceeds from shares sold 560,476 621,511 371,474 75,383
Reinvestment of distributions 311,414 326,972 62,596 59,727
Cost of shares redeemed (840,538) (1,265,323) (178,522) (335,899)
---------- ---------- -------------- --------------
31,352 (316,840) 255,548 (200,789)
---------- ---------- -------------- --------------
Class B:
Proceeds from shares sold 2,000 48,632 48,020 74,001
Reinvestment of distributions 1,909 1,747 4,889 3,063
Cost of shares redeemed (1,000) (48,765) -- (139)
---------- ---------- -------------- --------------
2,909 1,614 52,909 76,925
---------- ---------- -------------- --------------
Net increase (decrease) from share transactions 34,261 (315,226) 308,457 (123,864)
---------- ---------- -------------- --------------
Net increase (decrease) in net assets 118,039 (70,304) 343,304 (46,304)
Net Assets
Beginning of year 8,274,657 8,344,961 1,914,846 1,961,150
---------- ---------- -------------- --------------
End of year+ $8,392,696 $8,274,657 $2,258,150 $1,914,846
========== ========== ============== ==============
+Includes undistributed net investment income of $ 2,937 $ 91 $ 621 $ 160
========== ========== ============== ==============
(a) Shares Issued and Redeemed
Class A:
Sold 47,618 54,777 29,195 6,070
Issued for distributions reinvested 26,654 28,722 4,866 4,804
Redeemed (72,134) (111,020) (13,888) (26,881)
---------- ---------- -------------- --------------
Net increase (decrease) in Class A shares
outstanding 2,138 (27,521) 20,173 (16,007)
========== ========== ============== ==============
Class B:
Sold 174 4,239 3,697 5,995
Issued for distributions reinvested 163 154 380 245
Redeemed (87) (4,246) -- (11)
---------- ---------- -------------- --------------
Net increase in Class B shares outstanding 250 147 4,077 6,229
========== ========== ============== ==============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- -----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------
NEW JERSEY NORTH CAROLINA
--------------------------- ------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- -----------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $2,771,877 $2,894,916 $365,955 $299,883
Net realized gain on investments 662,131 538,959 16,557 14,963
Net unrealized appreciation of investments 23,799 1,458,613 132,846 254,334
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 3,457,807 4,892,488 515,358 569,180
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income -- Class A (2,693,979) (2,820,992) (356,381) (294,736)
Net investment income -- Class B (83,488) (70,065) (8,468) (5,281)
Net realized gains -- Class A (638,421) (521,354) -- --
Net realized gains -- Class B (27,005) (17,683) -- --
------------ ------------ ----------- -----------
Total distributions (3,442,893) (3,430,094) (364,849) (300,017)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 6,159,936 5,185,860 1,639,024 1,277,363
Reinvestment of distributions 2,304,360 2,163,582 223,837 189,740
Cost of shares redeemed (7,139,371) (8,349,542) (409,842) (855,438)
------------ ------------ ----------- -----------
1,324,925 (1,000,100) 1,453,019 611,665
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 710,030 514,175 62,154 125,284
Reinvestment of distributions 89,417 68,543 5,532 3,236
Cost of shares redeemed (245,751) (216,809) (10,810) (83,078)
------------ ------------ ----------- -----------
553,696 365,909 56,876 45,442
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions 1,878,621 (634,191) 1,509,895 657,107
------------ ------------ ----------- -----------
Net increase (decrease) in net assets 1,893,535 828,203 1,660,404 926,270
Net Assets
Beginning of year 61,253,488 60,425,285 6,882,357 5,956,087
------------ ------------ ----------- -----------
End of year+ $63,147,023 $61,253,488 $8,542,761 $6,882,357
============ ============ =========== ===========
+Includes undistributed net investment income of $ 1,636 $ 7,226 $ 1,414 $ 308
============ ============ =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 461,281 397,509 128,727 103,107
Issued for distributions reinvested 172,773 164,789 17,520 15,450
Redeemed (534,399) (638,130) (32,060) (69,558)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding 99,655 (75,832) 114,187 48,999
============ ============ =========== ===========
Class B:
Sold 53,282 39,138 4,883 10,154
Issued for distributions reinvested 6,715 5,219 433 264
Redeemed (18,554) (16,522) (862) (6,823)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 41,443 27,835 4,454 3,595
============ ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- ----------------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
----------------------------------------------------------
OHIO OREGON
------------------------- -------------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $954,515 $937,436 $593,284 $545,833
Net realized gain on investments 105,338 108,868 21,921 40,560
Net unrealized appreciation (depreciation)
of investments (42,129) 550,280 176,273 519,899
------------ ------------ -------------- --------------
Net increase in net assets resulting from operations 1,017,724 1,596,584 791,478 1,106,292
------------ ------------ -------------- --------------
Distributions to Shareholders
Net investment income -- Class A (913,253) (923,757) (560,461) (521,186)
Net investment income -- Class B (14,670) (11,788) (34,225) (26,319)
Net realized gains -- Class A (103,541) (107,079) -- --
Net realized gains -- Class B (2,115) (1,856) -- --
------------ ------------ -------------- --------------
Total distributions (1,033,579) (1,044,480) (594,686) (547,505)
------------ ------------ -------------- --------------
Share Transactions (a)
Class A:
Proceeds from shares sold 2,214,427 1,562,659 2,442,130 2,314,351
Reinvestment of distributions 750,957 729,611 434,290 415,538
Cost of shares redeemed (2,490,353) (3,651,289) (1,821,201) (1,372,531)
------------ ------------ -------------- --------------
475,031 (1,359,019) 1,055,219 1,357,358
------------ ------------ -------------- --------------
Class B:
Proceeds from shares sold 95,265 99,500 293,952 135,183
Reinvestment of distributions 13,500 12,697 31,339 25,954
Cost of shares redeemed (40,388) (64,408) (51,221) (9,259)
------------ ------------ -------------- --------------
68,377 47,789 274,070 151,878
------------ ------------ -------------- --------------
Net increase (decrease) from share transactions 543,408 (1,311,230) 1,329,289 1,509,236
------------ ------------ -------------- --------------
Net increase (decrease) in net assets 527,553 (759,126) 1,526,081 2,068,023
Net Assets
Beginning of year 19,642,850 20,401,976 12,552,200 10,484,177
------------ ------------ -------------- --------------
End of year+ $20,170,403 $19,642,850 $14,078,281 $12,552,200
============ ============ ============== ==============
+Includes undistributed net investment income of $ 28,483 $ 1,891 $ -- $ 1,131
============ ============ ============== ==============
(a) Shares Issued and Redeemed
Class A:
Sold 174,415 126,005 192,410 190,759
Issued for distributions reinvested 59,011 58,449 34,311 34,078
Redeemed (195,415) (295,120) (144,132) (112,963)
------------ ------------ -------------- --------------
Net increase (decrease) in Class A shares
outstanding 38,011 (110,666) 82,589 111,874
============ ============ ============== ==============
Class B:
Sold 7,493 8,014 23,233 11,116
Issued for distributions reinvested 1,062 1,017 2,477 2,129
Redeemed (3,175) (5,212) (4,029) (747)
------------ ------------ -------------- --------------
Net increase in Class B shares outstanding 5,380 3,819 21,681 12,498
============ ============ ============== ==============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
- ----------------------------------------------------- ----------------------------------------------------
MULTI-STATE INSURED TAX FREE FUND
----------------------------------------------------
PENNSYLVANIA VIRGINIA
-------------------------- ------------------------
Year Ended December 31 1998 1997 1998 1997
- ----------------------------------------------------- ----------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $2,050,719 $2,102,139 $1,084,677 $1,062,779
Net realized gain on investments 303,417 499,152 170,072 55,541
Net unrealized appreciation (depreciation)
of investments (173,315) 1,260,229 41,410 841,380
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 2,180,821 3,861,520 1,296,159 1,959,700
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income -- Class A (1,859,304) (2,053,887) (1,014,072) (1,017,300)
Net investment income -- Class B (72,835) (48,614) (53,905) (49,137)
Net realized gains -- Class A (290,930) (481,910) (161,139) (53,373)
Net realized gains -- Class B (14,563) (19,807) (10,233) (3,353)
------------ ------------ ----------- -----------
Total distributions (2,237,632) (2,604,218) (1,239,349) (1,123,163)
------------ ------------ ----------- -----------
Share Transactions (a)
Class
Proceeds from shares sold 4,340,752 4,830,698 2,513,743 1,989,565
Reinvestment of distributions 1,289,547 1,549,699 795,105 717,022
Cost of shares redeemed (7,025,076) (7,614,846) (2,074,090) (2,405,825)
------------ ------------ ----------- -----------
(1,394,777) (1,234,449) 1,234,758 300,762
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 286,627 965,794 129,680 372,554
Reinvestment of distributions 52,980 48,384 37,357 30,964
Cost of shares redeemed (27,855) (83,930) (77,741) (227,855)
------------ ------------ ----------- -----------
311,752 930,248 89,296 175,663
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions (1,083,025) (304,201) 1,324,054 476,425
------------ ------------ ----------- -----------
Net increase (decrease) in net assets (1,139,836) 953,101 1,380,864 1,312,962
Net Assets
Beginning of year 43,962,207 43,009,106 23,525,992 22,213,030
------------ ------------ ----------- -----------
End of year+ $42,822,371 $43,962,207 $24,906,856 $23,525,992
============ ============ =========== ===========
+Includes undistributed net investment income of $ 120,957 $ 2,377 $ 18,891 $ 2,191
============ ============ =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 326,228 373,121 188,751 155,283
Issued for distributions reinvested 96,963 118,522 59,960 55,601
Redeemed (527,157) (582,302) (156,840) (187,941)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding (103,966) (90,659) 91,871 22,943
============ ============ =========== ===========
Class B:
Sold 21,633 73,391 9,938 29,002
Issued for distributions reinvested 3,988 3,687 2,820 2,405
Redeemed (2,092) (6,492) (5,876) (17,762)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 23,529 70,586 6,882 13,645
============ ============ =========== ===========
See notes to financial statements
</TABLE>
Notes to Financial Statements
1. Significant Accounting Policies--First Investors Insured Intermediate
Tax Exempt Fund ("Insured Intermediate"), a series of First Investors Series
Fund ("Series Fund"), First Investors Insured Tax Exempt Fund, Inc. ("Insured
Tax Exempt"), First Investors New York Insured Tax Free Fund, Inc. ("New York
Insured") and the Arizona, California, Colorado, Connecticut, Florida, Georgia,
Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North
Carolina, Ohio, Oregon, Pennsylvania and Virginia Funds, each a series of
First Investors Multi-State Insured Tax Free Fund ("Multi-State Insured"),
(collectively, the "Funds"), are registered under the Investment Company Act
of 1940 (the "1940 Act") as diversified, open-end management investment
companies. Each Fund accounts separately for its assets, liabilities and
operations. Series Fund offers four additional series which are not included
in this report. The investment objective of each Fund is as follows:
Insured Intermediate seeks to provide a high level of interest income which
is exempt from federal income tax.
Insured Tax Exempt seeks to provide a high level of interest income which is
exempt from federal income tax.
New York Insured seeks to provide a high level of interest income which is
exempt from federal income tax, New York State and New York City personal
income taxes.
Multi-State Insured seeks to achieve a high level of interest income which is
exempt from federal income tax and, to the extent indicated in the
prospectus, from state and local income taxes for residents of that state.
A. Security Valuation--The municipal securities in which the Funds invest 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 Boards of Directors/Trustees. 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 Funds as of the date the
securities are purchased.
The municipal bonds held by the Funds are insured as to payment of principal
and interest by the issuer or under insurance policies written by independent
insurance companies. The Funds may retain any insured municipal bond which is
in default in the payment of principal or interest until the default has been
cured, or the principal and interest outstanding are paid by an insurer or
the issuer of any letter of credit or other guarantee supporting such
municipal bond. In such case, it is the Funds' policy to value the defaulted
bond daily based upon the value of a comparable bond which is insured and not
in default. In selecting a comparable bond, the Funds will consider security
type, rating, market condition and yield. Insured Tax Exempt may invest up to
20% of its assets in portfolio securities not covered by the insurance
feature; Insured Intermediate, New York Insured and Multi-State Insured may
invest up to 35% of their assets in portfolio securities not covered by the
insurance feature.
B. Federal Income Taxes--It is the policy of the Funds to continue to qualify
as regulated investment companies, which can distribute tax exempt dividends,
by complying with the provisions available to certain investment companies,
as defined in the Internal Revenue Code. The Funds make distributions of
income and net realized capital gains (in excess of any available capital
loss carryovers) sufficient to relieve them from all, or substantially all,
federal income taxes.
At December 31, 1998, capital loss carryovers were as follows:
Year Capital Loss
Carryovers Expire
-----------------------------------------
Fund Total 2002 2003 2004
- ----------- ---------- ---------- ------- --------
Insured Intermediate. $ 21,207 $ -- $ 7,566 $ 13,641
Insured Tax Exempt 3,745,137 3,221,246 -- 523,891
Arizona 46,246 34,111 -- 12,135
Colorado 18,097 18,097 -- --
Connecticut 49,852 49,852 -- --
Georgia 544 -- -- 544
Maryland 19,506 6,741 -- 12,765
Minnesota 65,066 432 64,634 --
Missouri 54,058 44,353 9,705 --
North Carolina 79,893 36,481 20,296 23,116
Oregon 161,150 106,103 -- 55,047
C. Distributions to Shareholders--Dividends from net investment income are
declared daily and paid monthly. 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, deferral of wash sales and post-October losses.
D. Expense Allocation--Direct expenses attributable to a Fund are charged to
and paid from the assets of that Fund. General expenses of Multi-State
Insured and Series Fund are allocated among and charged to the assets of each
Fund in the series on a fair and equitable basis, which may be based on the
relative assets of each Fund or the nature of the services performed and
relative applicability to each Fund.
E. 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. For the year ended December 31, 1998, The Bank of
New York, custodian for the Funds, has provided total credits in the amount
of $89,612 against custodian charges based on the uninvested cash balances of
the Funds.
F. 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.
2. Capital--Each 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 distribution plan fees as described in Note 5. Class B shares are sold
without an initial sales charge, but are generally subject to a contingent
deferred sales charge which declines in steps from 4% to 0% over a six-year
period. Class B shares automatically convert into Class A shares after eight
years. Realized and unrealized gains or losses, investment income and
expenses (other than distribution plan fees) are allocated daily to each
class of shares based upon the relative proportion of net assets of each
class. Of the 500,000,000 shares originally authorized, Insured Tax Exempt
has designated 300,000,000 shares as Class A and 200,000,000 shares as Class
B. Of the 1,000,000,000 shares originally authorized, New York Insured has
designated 500,000,000 shares as Class A and 500,000,000 shares as Class B.
Multi-State Insured and Series Fund have established an unlimited number of
shares of beneficial interest for both Class A and Class B shares.
3. Concentration of Credit Risk--New York Insured and Multi-State Insured
invest in debt instruments of municipal issuers whose ability to meet their
obligations may be affected by economic developments in a state, industry or
region.
4. Security Transactions--For the year ended December 31, 1998, purchases and
sales of municipal securities, other than short-term municipal notes, were as
follows:
Cost of Proceeds
Fund Purchases of Sales
- ---- ------------ ------------
Insured Intermediate $ 15,379,305 $ 14,261,197
Insured Tax Exempt 213,617,580 349,089,399
New York Insured 82,960,929 98,734,480
Arizona 6,162,613 5,292,205
California 12,131,070 13,257,232
Colorado 919,719 941,200
Connecticut 6,324,437 4,979,311
Florida 12,912,584 11,048,204
Georgia 1,153,045 1,163,079
Maryland 4,904,263 4,146,916
Massachusetts 11,185,370 11,698,549
Michigan 7,937,726 8,618,868
Minnesota 1,793,076 1,748,811
Missouri 582,476 350,367
New Jersey 16,725,555 16,911,117
North Carolina 5,660,977 4,184,700
Ohio 7,289,618 6,671,856
Oregon 4,652,332 3,400,189
Pennsylvania 11,054,323 11,766,698
Virginia 6,297,835 6,042,376
At December 31, 1998, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Fund Cost Appreciation Depreciation Appreciation
- ---- ------------ ------------ ------------ ------------
Insured Intermediate $ 9,066,176 $ 450,616 $ 2,695 $ 447,921
Insured Tax Exempt 976,628,269 127,963,360 33,898 127,929,462
New York Insured 172,980,419 17,152,586 18,388 17,134,198
Arizona 9,927,065 1,169,247 -- 1,169,247
California 13,619,312 1,937,750 -- 1,937,750
Colorado 3,391,104 380,332 -- 380,332
Connecticut 18,528,995 1,926,197 5,594 1,920,603
Florida 23,600,391 2,819,546 -- 2,819,546
Georgia 2,931,170 360,886 -- 360,886
Maryland 12,011,214 1,184,371 7,072 1,177,299
Massachusetts 21,635,838 1,944,908 -- 1,944,908
Michigan 35,424,245 4,395,999 -- 4,395,999
Minnesota 7,556,759 637,003 -- 637,003
Missouri 1,968,481 211,357 -- 211,357
New Jersey 55,978,655 6,073,173 33,915 6,039,258
North Carolina 7,704,050 621,456 -- 621,456
Ohio 18,568,332 1,974,746 -- 1,974,746
Oregon 12,697,715 1,134,979 757 1,134,222
Pennsylvania 39,036,238 3,835,726 7,395 3,828,331
Virginia 21,985,406 2,334,785 -- 2,334,785
5. Advisory Fee and Other Transactions With Affiliates--Certain officers and
directors/trustees of the Funds are officers and directors of the Funds'
investment adviser, First Investors Management Company, Inc. ("FIMCO"), their
underwriter, First Investors Corporation ("FIC") and/or their transfer agent,
Administrative Data Management Corp. ("ADM"). Directors/trustees of the Funds
who are not "interested persons" of the Funds as defined in the 1940 Act are
remunerated by the Funds. For the year ended December 31, 1998, total
directors/trustees fees accrued by the Funds amounted to $41,183.
The Investment Advisory Agreements provide as compensation to FIMCO for each
Fund other than Insured Intermediate, an annual fee, payable monthly, at the
rate of .75% on the first $250 million of the average daily net assets of
each Fund, declining by .03% on each $250 million thereafter, down to .66% on
average daily net assets over $750 million. The annual fee for Insured
Intermediate is payable monthly, at the rate of .60% of the Fund's average
daily net assets.
For the year ended December 31, 1998, advisory fees accrued to FIMCO by the
Funds were $12,081,888 of which $1,128,638 was waived. In addition, other
expenses in the amount of $310,607 were assumed by FIMCO.
For the year ended December 31, 1998, FIC, as underwriter, received
$1,769,833 in commissions from the sale of shares of the Funds after
allowing $485,488 to other dealers. Shareholder servicing costs included
$1,097,761 in transfer agent fees accrued to ADM.
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act,
each Fund is authorized to pay FIC a fee up to .30% of the average daily
net assets of the Class A shares and 1% of the average daily net assets of
the Class B shares on an annual basis each year, payable monthly. For the
year ended December 31, 1998, total distribution plan fees accrued to FIC
by the Funds amounted to $4,706,781, of which $23,290 was waived on the
Class A shares of Insured Intermediate. Based on the average daily net
assets of the Class A shares of the Funds, FIC was paid a fee of .28% by
Insured Tax Exempt and .20% by Multi-State Insured. The fee consists of a
distribution fee and a service fee. The service fee is paid for the ongoing
servicing of clients who are shareholders of that Fund.
6. 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,
1998, Insured Tax Exempt held eighteen 144A securities with an aggregate
value of $59,220,313 representing approximately 5.27% of the Fund's net
assets and New York Insured held three 144A securities with an aggregate
value of $9,697,638 representing approximately 5.03% of the Fund's net
assets. These securities are valued as set forth in Note 1A.
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
1994 $ 5.79 $.239 $(.361) $ (.122) $.238 $ --
1995 5.43 .301 .419 .720 .300 --
1996 5.85 .290 (.060) .230 .290 --
1997 5.79 .292 .140 .432 .292 --
1998 5.93 .288 .086 .374 .294 --
Class B
- -------
1/12/95* to 12/31/95 5.45 .254 .407 .661 .261 --
1996 5.85 .235 (.055) .180 .230 --
1997 5.80 .234 .128 .362 .232 --
1998 5.93 .226 .098 .324 .234 --
- ---------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
1994 $10.56 $.556 $(1.142) $ (.586) $.554 $ --
1995 9.42 .524 .952 1.476 .526 --
1996 10.37 .510 (.233) .277 .507 --
1997 10.14 .502 .312 .814 .504 --
1998 10.45 .475 .099 .574 .474 --
Class B
- -------
1/12/95* to 12/31/95 9.48 .438 .891 1.329 .439 --
1996 10.37 .441 (.242) .199 .439 --
1997 10.13 .429 .323 .752 .432 --
1998 10.45 .400 .096 .496 .396 --
- ---------------------------------------------------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
1994 $15.18 $.758 $(1.510) $ (.752) $.768 $ --
1995 13.66 .738 1.331 2.069 .740 .059
1996 14.93 .719 (.298) .421 .720 .091
1997 14.54 .709 .395 1.104 .708 .076
1998 14.86 .674 .137 .811 .676 .145
Class B
- -------
1/12/95* to 12/31/95 13.76 .616 1.232 1.848 .619 .059
1996 14.93 .617 (.306) .311 .620 .091
1997 14.53 .608 .406 1.014 .608 .076
1998 14.86 .569 .134 .703 .568 .145
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
1994 $.238 $ 5.43 (2.05) $ 5,688 .14 4.52
1995 .300 5.85 13.50 7,017 .35 5.32
1996 .290 5.79 4.07 7,415 .49 5.05
1997 .292 5.93 7.68 7,344 .53 5.02
1998 .294 6.01 6.47 8,674 .50 4.80
Class B
- -------
1/12/95* to 12/31/95 .261 5.85 12.27 378 1.35+ 4.32+
1996 .230 5.80 3.17 613 1.49 4.05
1997 .232 5.93 6.39 808 1.53 4.02
1998 .234 6.02 5.57 1,000 1.50 3.80
- ----------------------------------------------------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
1994 $.554 $ 9.42 (5.61) $1,301,537 1.18 5.64
1995 .526 10.37 16.01 1,372,752 1.14 5.25
1996 .507 10.14 2.81 1,252,608 1.14 5.06
1997 .504 10.45 8.27 1,191,815 1.14 4.93
1998 .474 10.55 5.62 1,118,898 1.11 4.51
Class B
- -------
1/12/95* to 12/31/95 .439 10.37 14.27 2,019 1.88+ 4.45+
1996 .439 10.13 2.03 3,046 1.83 4.37
1997 .432 10.45 7.62 3,460 1.85 4.22
1998 .396 10.55 4.83 3,878 1.83 3.79
- ----------------------------------------------------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
1994 $.768 $13.66 (5.03) $ 193,916 1.28 5.30
1995 .799 14.93 15.45 215,259 1.23 5.10
1996 .811 14.54 2.95 203,496 1.23 4.93
1997 .784 14.86 7.82 195,273 1.17 4.86
1998 .821 14.85 5.59 187,544 1.12 4.54
Class B
- -------
1/12/95* to 12/31/95 .678 14.93 13.66 1,156 2.00+ 4.34+
1996 .711 14.53 2.18 2,242 1.93 4.23
1997 .684 14.86 7.16 3,602 1.87 4.16
1998 .713 14.85 4.84 5,271 1.82 3.84
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
INSURED INTERMEDIATE TAX EXEMPT FUND
- ------------------------------------
Class A
- -------
1994 .96 3.70 210
1995 1.22 4.45 47
1996 1.24 4.30 82
1997 1.21 4.34 91
1998 1.20 4.10 163
Class B
- -------
1/12/95* to 12/31/95 1.92+ 3.75+ 47
1996 1.94 3.60 82
1997 1.91 3.64 91
1998 1.90 3.40 163
- ----------------------------------------------------------------------
INSURED TAX EXEMPT FUND
- -----------------------
Class A
- -------
1994 N/A N/A 57
1995 N/A N/A 37
1996 N/A N/A 21
1997 N/A N/A 13
1998 N/A N/A 19
Class B
- -------
1/12/95* to 12/31/95 N/A N/A 37
1996 N/A N/A 21
1997 N/A N/A 13
1998 N/A N/A 19
- ----------------------------------------------------------------------
NEW YORK INSURED TAX FREE FUND
- ------------------------------
Class A
- -------
1994 N/A N/A 55
1995 N/A N/A 53
1996 N/A N/A 53
1997 1.22 4.81 24
1998 1.22 4.44 44
Class B
- -------
1/12/95* to 12/31/95 N/A N/A 53
1996 N/A N/A 53
1997 1.92 4.11 24
1998 1.92 3.74 44
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- -------
Class A
- -------
1994 $13.12 $.663 $(1.397) $(.734) $.676 $ --
1995 11.71 .665 1.448 2.113 .673 --
1996 13.15 .664 (.199) .465 .665 --
1997 12.95 .658 .511 1.169 .659 --
1998 13.46 .657 .155 .812 .652 --
Class B
- -------
1/12/95* to 12/31/95 11.82 .544 1.340 1.884 .554 --
1996 13.15 .565 (.201) .364 .564 --
1997 12.95 .556 .500 1.056 .556 --
1998 13.45 .549 .155 .704 .544 --
- ----------------------------------------------------------------------------------------------------------------
CALIFORNIA FUND
- ---------------
Class A
- -------
1994 $12.12 $.598 $(1.328) $(.730) $.620 $ --
1995 10.77 .580 1.335 1.915 .589 .136
1996 11.96 .576 (.128) .448 .575 .073
1997 11.76 .569 .534 1.103 .570 .173
1998 12.12 .558 .190 .748 .554 .114
Class B
- -------
1/12/95* to 12/31/95 10.87 .472 1.227 1.699 .483 .136
1996 11.95 .486 (.123) .363 .480 .073
1997 11.76 .476 .532 1.008 .475 .173
1998 12.12 .458 .184 .642 .458 .114
- ----------------------------------------------------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
1994 $12.60 $.631 $(1.351) $ (.720) $.640 $ --
1995 11.24 .668 1.340 2.008 .668 --
1996 12.58 .642 (.089) .553 .643 --
1997 12.49 .638 .498 1.136 .636 --
1998 12.99 .644 .152 .796 .636 --
Class B
- -------
1/12/95* to 12/31/95 11.35 .564 1.239 1.803 .573 --
1996 12.58 .547 (.100) .447 .547 --
1997 12.48 .539 .501 1.040 .540 --
1998 12.98 .538 .160 .698 .528 --
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- -------
Class A
- -------
1994 $.676 $11.71 (5.63) $ 8,803 .30 5.52
1995 .673 13.15 18.41 8,834 .50 5.27
1996 .665 12.95 3.69 8,383 .53 5.17
1997 .659 13.46 9.28 9,691 .50 5.03
1998 .652 13.62 6.17 10,873 .50 4.88
Class B
- -------
1/12/95* to 12/31/95 .554 13.15 16.20 173 1.30+ 4.62+
1996 .564 12.95 2.89 289 1.33 4.37
1997 .556 13.45 8.36 437 1.30 4.23
1998 .544 13.61 5.33 489 1.30 4.08
- ----------------------------------------------------------------------------------------------------------------
CALIFORNIA FUND
- ---------------
Class A
- -------
1994 $.620 $10.77 (6.10) $15,335 .97 5.27
1995 .725 11.96 18.16 16,547 .90 5.02
1996 .648 11.76 3.91 15,558 .84 4.93
1997 .743 12.12 9.66 15,601 .80 4.80
1998 .668 12.20 6.31 14,614 .80 4.59
Class B
- -------
1/12/95* to 12/31/95 .619 11.95 15.91 59 1.74+ 4.31+
1996 .553 11.76 3.16 114 1.63 4.14
1997 .648 12.12 8.79 220 1.60 4.00
1998 .572 12.19 5.40 479 1.60 3.79
- ----------------------------------------------------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
1994 $.640 $11.24 (5.77) $ 3,110 .20 5.41
1995 .668 12.58 18.25 3,525 .20 5.54
1996 .643 12.49 4.57 3,466 .38 5.20
1997 .636 12.99 9.37 3,424 .40 5.07
1998 .636 13.15 6.27 3,571 .40 4.96
Class B
- -------
1/12/95* to 12/31/95 .573 12.58 16.18 131 1.00+ 4.90+
1996 .547 12.48 3.68 241 1.19 4.39
1997 .540 12.98 8.55 370 1.20 4.27
1998 .528 13.15 5.48 374 1.20 4.16
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
MULTI-STATE INSURED TAX FREE FUND
- ---------------------------------
ARIZONA FUND
- -------
Class A
- -------
1994 1.24 4.59 63
1995 1.15 4.62 36
1996 1.23 4.47 27
1997 1.16 4.37 24
1998 1.13 4.25 50
Class B
- -------
1/12/95* to 12/31/95 1.95+ 3.95+ 36
1996 2.03 3.67 27
1997 1.96 3.57 24
1998 1.93 3.45 50
- ----------------------------------------------------------------------
CALIFORNIA FUND
- ---------------
Class A
- -------
1994 1.22 5.02 83
1995 1.15 4.77 53
1996 1.19 4.58 30
1997 1.16 4.44 46
1998 1.17 4.22 79
Class B
- -------
1/12/95* to 12/31/95 2.00+ 4.04+ 53
1996 1.98 3.79 30
1997 1.96 3.64 46
1998 1.97 3.42 79
- ----------------------------------------------------------------------
COLORADO FUND
- -------------
Class A
- -------
1994 1.43 4.18 108
1995 1.32 4.42 45
1996 1.40 4.17 20
1997 1.29 4.18 39
1998 1.26 4.10 25
Class B
- -------
1/12/95* to 12/31/95 2.12+ 3.75+ 45
1996 2.21 3.36 20
1997 2.09 3.38 39
1998 2.06 3.30 25
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONNECTICUT FUND
- ----------------
Class A
- -------
1994 $13.05 $.609 $(1.480) $ (.871) $.609 $ --
1995 11.57 .617 1.333 1.950 .620 --
1996 12.90 .619 (.202) .417 .617 --
1997 12.70 .613 .471 1.084 .614 --
1998 13.17 .607 .186 .793 .603 --
Class B
- -------
1/12/95* to 12/31/95 11.67 .512 1.242 1.754 .524 --
1996 12.90 .522 (.204) .318 .518 --
1997 12.70 .516 .470 .986 .516 --
1998 13.17 .500 .176 .676 .496 --
- ----------------------------------------------------------------------------------------------------------------
FLORIDA FUND
- ------------
Class A
- -------
1994 $13.14 $.642 $(1.346) $ (.704) $.646 $ --
1995 11.79 .640 1.527 2.167 .647 --
1996 13.31 .623 (.198) .425 .625 --
1997 13.11 .624 .547 1.171 .624 .037
1998 13.62 .616 .195 .811 .613 .068
Class B
- -------
1/12/95* to 12/31/95 11.87 .529 1.460 1.989 .549 --
1996 13.31 .530 (.204) .326 .526 --
1997 13.11 .531 .552 1.083 .526 .037
1998 13.63 .507 .186 .693 .505 .068
- ----------------------------------------------------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
1994 $12.49 $.584 $(1.165) $ (.581) $.579 $ --
1995 11.33 .653 1.387 2.040 .650 --
1996 12.72 .639 (.161) .478 .648 --
1997 12.55 .639 .578 1.217 .637 --
1998 13.13 .645 .135 .780 .640 --
Class B
- -------
1/12/95* to 12/31/95 11.42 .529 1.303 1.832 .542 --
1996 12.71 .563 (.183) .380 .550 --
1997 12.54 .524 .584 1.108 .538 --
1998 13.11 .539 .133 .672 .532 --
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONNECTICUT FUND
- ----------------
Class A
- -------
1994 $.609 $11.57 (6.75) $14,848 .87 5.01
1995 .620 12.90 17.18 16,725 .85 4.98
1996 .617 12.70 3.37 15,203 .81 4.92
1997 .614 13.17 8.77 16,151 .80 4.78
1998 .603 13.36 6.15 17,434 .80 4.58
Class B
- -------
1/12/95* to 12/31/95 .524 12.90 15.28 857 1.71+ 4.12+
1996 .518 12.70 2.57 1,505 1.61 4.12
1997 .516 13.17 7.95 2,891 1.60 3.98
1998 .496 13.35 5.22 3,484 1.60 3.78
- ----------------------------------------------------------------------------------------------------------------
FLORIDA FUND
- ------------
Class A
- -------
1994 $.646 $11.79 (5.39) $19,765 .62 5.24
1995 .647 13.31 18.77 22,229 .75 5.05
1996 .625 13.11 3.34 23,299 .83 4.80
1997 .661 13.62 9.18 23,840 .80 4.71
1998 .681 13.75 6.09 25,873 .80 4.50
Class B
- -------
1/12/95* to 12/31/95 .549 13.31 17.06 299 1.68+ 4.12+
1996 .526 13.11 2.56 549 1.62 4.01
1997 .563 13.63 8.38 837 1.60 3.91
1998 .573 13.75 5.19 858 1.60 3.70
- ----------------------------------------------------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
1994 $.579 $11.33 (4.69) $ 2,065 .20 4.99
1995 .650 12.72 18.40 3,047 .20 5.41
1996 .648 12.55 3.94 3,269 .38 5.17
1997 .637 13.13 10.00 3,152 .40 5.03
1998 .640 13.27 6.08 3,162 .40 4.92
Class B
- -------
1/12/95* to 12/31/95 .542 12.71 16.34 97 1.00+ 4.61+
1996 .550 12.54 3.13 151 1.19 4.36
1997 .538 13.11 9.07 203 1.20 4.23
1998 .532 13.25 5.23 250 1.20 4.12
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
CONNECTICUT FUND
- ----------------
Class A
- -------
1994 1.22 4.66 63
1995 1.20 4.63 26
1996 1.23 4.50 15
1997 1.17 4.41 14
1998 1.16 4.22 25
Class B
- -------
1/12/95* to 12/31/95 2.07+ 3.76+ 26
1996 2.02 3.71 15
1997 1.97 3.61 14
1998 1.96 3.42 25
- ----------------------------------------------------------------------
FLORIDA FUND
- ------------
Class A
- -------
1994 1.19 4.67 98
1995 1.15 4.65 68
1996 1.16 4.47 55
1997 1.11 4.40 19
1998 1.10 4.20 44
Class B
- -------
1/12/95* to 12/31/95 2.09+ 3.70+ 68
1996 1.95 3.68 55
1997 1.91 3.60 19
1998 1.90 3.40 44
- ----------------------------------------------------------------------
GEORGIA FUND
- ------------
Class A
- -------
1994 1.93 3.26 78
1995 1.42 4.20 45
1996 1.44 4.11 37
1997 1.33 4.10 21
1998 1.20 4.12 36
Class B
- -------
1/12/95* to 12/31/95 2.22+ 3.40+ 45
1996 2.25 3.30 37
1997 2.13 3.30 21
1998 2.00 3.32 36
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND FUND
- -------------
Class A
- -------
1994 $13.15 $.644 $(1.373) $ (.729) $.651 $ --
1995 11.77 .668 1.348 2.016 .666 --
1996 13.12 .650 (.235) .415 .655 --
1997 12.88 .652 .549 1.201 .651 --
1998 13.43 .651 .186 .837 .647 --
Class B
- -------
1/12/95* to 12/31/95 11.85 .561 1.279 1.840 .570 --
1996 13.12 .555 (.249) .306 .556 --
1997 12.87 .551 .556 1.107 .547 --
1998 13.43 .543 .186 .729 .539 --
- ----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS FUND
- ------------------
Class A
- -------
1994 $12.28 $.627 $(1.267) $ (.640) $.630 $ --
1995 11.01 .612 1.227 1.839 .613 .016
1996 12.22 .603 (.256) .347 .602 .045
1997 11.92 .601 .356 .957 .603 .074
1998 12.20 .586 .049 .635 .578 .237
Class B
- -------
1/12/95* to 12/31/95 11.09 .508 1.155 1.663 .527 .016
1996 12.21 .514 (.263) .251 .506 .045
1997 11.91 .508 .353 .861 .507 .074
1998 12.19 .488 .061 .549 .482 .237
- ----------------------------------------------------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
1994 $12.89 $.612 $(1.423) $ (.811) $.609 $ --
1995 11.47 .634 1.331 1.965 .635 --
1996 12.80 .627 (.215) .412 .631 .011
1997 12.57 .610 .535 1.145 .609 .046
1998 13.06 .591 .124 .715 .589 .096
Class B
- -------
1/12/95* to 12/31/95 11.57 .528 1.241 1.769 .539 --
1996 12.80 .534 (.229) .305 .534 .011
1997 12.56 .511 .536 1.047 .511 .046
1998 13.05 .484 .123 .607 .481 .096
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND FUND
- -------------
Class A
- -------
1994 $.651 $11.77 (5.59) $ 6,904 .45 5.27
1995 .666 13.12 17.50 8,666 .48 5.32
1996 .655 12.88 3.33 10,118 .51 5.10
1997 .651 13.43 9.59 10,705 .50 5.01
1998 .647 13.62 6.38 11,280 .50 4.84
Class B
- -------
1/12/95* to 12/31/95 .570 13.12 15.82 423 1.38+ 4.42+
1996 .556 12.87 2.45 1,021 1.31 4.30
1997 .547 13.43 8.81 1,782 1.30 4.21
1998 .539 13.62 5.54 2,215 1.30 4.04
- ----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS FUND
- ------------------
Class A
- -------
1994 $.630 $11.01 (5.30) $20,838 .95 5.45
1995 .629 12.22 17.07 23,180 .90 5.22
1996 .647 11.92 2.99 22,543 .86 5.08
1997 .677 12.20 8.27 22,852 .80 5.01
1998 .815 12.02 5.33 22,421 .80 4.82
Class B
- -------
1/12/95* to 12/31/95 .543 12.21 15.28 314 1.76+ 4.36+
1996 .551 11.91 2.16 519 1.66 4.28
1997 .581 12.19 7.41 783 1.60 4.21
1998 .719 12.02 4.60 1,426 1.60 4.02
- ----------------------------------------------------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
1994 $.609 $11.47 (6.36) $30,362 .93 5.11
1995 .635 12.80 17.47 36,837 .89 5.14
1996 .642 12.57 3.37 36,928 .88 5.03
1997 .655 13.06 9.37 39,581 .87 4.80
1998 .685 13.09 5.60 39,061 .89 4.51
Class B
- -------
1/12/95* to 12/31/95 .539 12.80 15.55 388 1.76+ 4.41+
1996 .545 12.56 2.49 724 1.69 4.22
1997 .557 13.05 8.54 1,018 1.67 4.00
1998 .577 13.08 4.73 1,032 1.69 3.71
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
MARYLAND FUND
- -------------
Class A
- -------
1994 1.34 4.37 44
1995 1.24 4.55 49
1996 1.24 4.37 13
1997 1.18 4.33 35
1998 1.16 4.18 33
Class B
- -------
1/12/95* to 12/31/95 2.19+ 3.61+ 49
1996 2.05 3.57 13
1997 1.98 3.53 35
1998 1.96 3.38 33
- ----------------------------------------------------------------------
MASSACHUSETTS FUND
- ------------------
Class A
- -------
1994 1.20 5.20 64
1995 1.15 4.97 40
1996 1.18 4.76 45
1997 1.15 4.66 28
1998 1.15 4.47 49
Class B
- -------
1/12/95* to 12/31/95 2.01+ 4.10+ 40
1996 1.98 3.96 45
1997 1.95 3.86 28
1998 1.95 3.67 49
- ----------------------------------------------------------------------
MICHIGAN FUND
- -------------
Class A
- -------
1994 1.18 4.86 60
1995 1.14 4.89 45
1996 1.13 4.78 43
1997 1.12 4.55 32
1998 1.13 4.27 20
Class B
- -------
1/12/95* to 12/31/95 2.02+ 4.15+ 45
1996 1.94 3.97 43
1997 1.92 3.75 32
1998 1.93 3.47 20
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MINNESOTA FUND
- -------
Class A
- -------
1994 $11.77 $.592 $(1.282) $ (.690) $.600 $ --
1995 10.48 .589 1.022 1.611 .591 --
1996 11.50 .592 (.210) .382 .592 --
1997 11.29 .599 .340 .939 .599 --
1998 11.63 .592 .116 .708 .588 --
Class B
- -------
1/12/95* to 12/31/95 10.55 .515 .950 1.465 .515 --
1996 11.50 .493 (.205) .288 .498 --
1997 11.29 .508 .341 .849 .509 --
1998 11.63 .498 .114 .612 .492 --
- ----------------------------------------------------------------------------------------------------------------
MISSOURI FUND
- -------------
Class A
- -------
1994 $12.50 $.617 $(1.384) $ (.767) $.613 $ --
1995 11.12 .662 1.356 2.018 .668 --
1996 12.47 .637 (.180) .457 .637 --
1997 12.29 .638 .490 1.128 .638 --
1998 12.78 .634 .188 .822 .632 --
Class B
- -------
1/12/95* to 12/31/95 11.22 .548 1.260 1.808 .548 --
1996 12.48 .538 (.189) .349 .539 --
1997 12.29 .537 .494 1.031 .541 --
1998 12.78 .528 .187 .715 .525 --
- ----------------------------------------------------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
1994 $13.51 $.659 $(1.448) $ (.789) $.661 $ --
1995 12.06 .648 1.291 1.939 .652 .097
1996 13.25 .636 (.245) .391 .636 .015
1997 12.99 .630 .427 1.057 .629 .118
1998 13.30 .606 .153 .759 .607 .142
Class B
- -------
1/12/95* to 12/31/95 12.14 .526 1.199 1.725 .528 .097
1996 13.24 .533 (.253) .280 .535 .015
1997 12.97 .525 .433 .958 .530 .118
1998 13.28 .498 .153 .651 .499 .142
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MINNESOTA FUND
- -------
Class A
- -------
1994 $.600 $10.48 (5.93) $ 7,375 .65 5.40
1995 .591 11.50 15.68 8,162 .65 5.29
1996 .592 11.29 3.47 8,304 .56 5.27
1997 .599 11.63 8.57 8,231 .50 5.27
1998 .588 11.75 6.23 8,346 .50 5.08
Class B
- -------
1/12/95* to 12/31/95 .515 11.50 14.13 .1 1.45+ 4.64+
1996 .498 11.29 2.61 41 1.40 4.44
1997 .509 11.63 7.71 44 1.30 4.47
1998 .492 11.75 5.37 47 1.30 4.28
- ----------------------------------------------------------------------------------------------------------------
MISSOURI FUND
- -------------
Class A
- -------
1994 $.613 $11.12 (6.20) $ 1,611 .20 5.45
1995 .668 12.47 18.55 1,890 .20 5.58
1996 .637 12.29 3.84 1,925 .38 5.24
1997 .638 12.78 9.44 1,798 .40 5.13
1998 .632 12.97 6.59 2,087 .40 4.97
Class B
- -------
1/12/95* to 12/31/95 .548 12.48 16.41 .1 1.00+ 4.94+
1996 .539 12.29 2.93 36 1.24 4.38
1997 .541 12.78 8.60 117 1.20 4.33
1998 .525 12.97 5.71 172 1.20 4.17
- ----------------------------------------------------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
1994 $.661 $12.06 (5.91) $55,379 .99 5.21
1995 .749 13.25 16.41 59,153 .99 5.06
1996 .651 12.99 3.09 58,823 .98 4.92
1997 .747 13.30 8.36 59,243 .96 4.81
1998 .749 13.31 5.84 60,585 .97 4.53
Class B
- -------
1/12/95* to 12/31/95 .625 13.24 14.45 957 1.81+ 4.24+
1996 .550 12.97 2.22 1,603 1.78 4.12
1997 .648 13.28 7.56 2,011 1.76 4.01
1998 .641 13.29 5.00 2,562 1.77 3.73
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
MINNESOTA FUND
- -------
Class A
- -------
1994 1.29 4.76 34
1995 1.31 4.63 53
1996 1.31 4.52 49
1997 1.21 4.56 15
1998 1.23 4.35 22
Class B
- -------
1/12/95* to 12/31/95 2.11+ 3.96+ 53
1996 2.14 3.69 49
1997 2.01 3.76 15
1998 2.03 3.55 22
- ----------------------------------------------------------------------
MISSOURI FUND
- -------------
Class A
- -------
1994 1.57 4.07 98
1995 1.42 4.36 50
1996 1.69 3.93 15
1997 1.46 4.07 12
1998 1.30 4.07 17
Class B
- -------
1/12/95* to 12/31/95 2.22+ 3.68+ 50
1996 2.55 3.07 15
1997 2.26 3.27 12
1998 2.10 3.27 17
- ----------------------------------------------------------------------
NEW JERSEY FUND
- ---------------
Class A
- -------
1994 1.14 5.06 60
1995 1.14 4.91 30
1996 1.13 4.77 35
1997 1.11 4.66 22
1998 1.11 4.39 27
Class B
- -------
1/12/95* to 12/31/95 1.97+ 4.08+ 30
1996 1.93 3.97 35
1997 1.91 3.86 22
1998 1.91 3.59 27
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORTH CAROLINA FUND
- -------------------
Class A
- -------
1994 $12.28 $.594 $(1.380) $ (.786) $.594 $ --
1995 10.90 .608 1.391 1.999 .609 --
1996 12.29 .590 (.159) .431 .591 --
1997 12.13 .597 .530 1.127 .597 --
1998 12.66 .593 .239 .832 .592 --
Class B
- -------
1/12/95* to 12/31/95 10.99 .492 1.307 1.799 .499 --
1996 12.29 .496 (.161) .335 .495 --
1997 12.13 .497 .534 1.031 .501 --
1998 12.66 .491 .233 .724 .484 --
- ----------------------------------------------------------------------------------------------------------------
OHIO FUND
- ---------
Class A
- -------
1994 $12.66 $.613 $(1.353) $ (.740) $.620 $ --
1995 11.30 .615 1.306 1.921 .619 .092
1996 12.51 .605 (.097) .508 .609 .059
1997 12.35 .607 .430 1.037 .606 .071
1998 12.71 .614 .040 .654 .597 .067
Class B
- -------
1/12/95* to 12/31/95 11.40 .503 1.212 1.715 .513 .092
1996 12.51 .507 (.095) .412 .513 .059
1997 12.35 .507 .424 .931 .510 .071
1998 12.70 .495 .061 .556 .489 .067
- ----------------------------------------------------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
1994 $12.29 $.529 $(1.339) $ (.810) $.610 $ --
1995 10.87 .626 1.289 1.915 .625 --
1996 12.16 .589 (.161) .428 .588 --
1997 12.00 .582 .582 1.164 .584 --
1998 12.58 .582 .191 .773 .583 --
Class B
- -------
1/12/95* to 12/31/95 10.97 .541 1.182 1.723 .543 --
1996 12.15 .495 (.161) .334 .494 --
1997 11.99 .485 .573 1.058 .488 --
1998 12.56 .480 .204 .684 .484 --
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORTH CAROLINA FUND
- -------------------
Class A
- -------
1994 $.594 $10.90 (6.45) $ 3,872 .20 5.22
1995 .609 12.29 18.72 4,984 .20 5.18
1996 .591 12.13 3.68 5,822 .38 4.94
1997 .597 12.66 9.56 6,697 .40 4.87
1998 .592 12.90 6.72 8,297 .40 4.68
Class B
- -------
1/12/95* to 12/31/95 .499 12.29 16.65 75 1.00+ 4.38+
1996 .495 12.13 2.85 134 1.20 4.12
1997 .501 12.66 8.71 185 1.20 4.07
1998 .484 12.90 5.83 246 1.20 3.88
- ----------------------------------------------------------------------------------------------------------------
OHIO FUND
- ---------
Class A
- -------
1994 $.620 $11.30 (5.91) $18,169 .85 5.18
1995 .711 12.51 17.34 19,398 .87 5.07
1996 .668 12.35 4.23 20,123 .86 4.95
1997 .677 12.71 8.64 19,308 .80 4.88
1998 .664 12.70 5.26 19,767 .80 4.83
Class B
- -------
1/12/95* to 12/31/95 .605 12.51 15.30 282 1.76+ 4.33+
1996 .572 12.35 3.43 279 1.66 4.15
1997 .581 12.70 7.73 335 1.60 4.08
1998 .556 12.70 4.46 403 1.60 4.03
- ----------------------------------------------------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
1994 $.610 $10.87 (6.65) $ 4,696 .20 5.36
1995 .625 12.16 17.99 6,840 .20 5.36
1996 .588 12.00 3.68 9,917 .46 4.97
1997 .584 12.58 9.97 11,800 .50 4.78
1998 .583 12.77 6.29 13,038 .50 4.62
Class B
- -------
1/12/95* to 12/31/95 .543 12.15 16.00 342 1.00+ 4.72+
1996 .494 11.99 2.87 568 1.26 4.17
1997 .488 12.56 9.03 752 1.30 3.98
1998 .484 12.76 5.55 1,040 1.30 3.82
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
NORTH CAROLINA FUND
- -------------------
Class A
- -------
1994 1.44 3.99 61
1995 1.36 4.03 76
1996 1.31 4.02 43
1997 1.23 4.04 30
1998 1.13 3.95 54
Class B
- -------
1/12/95* to 12/31/95 2.16+ 3.23+ 76
1996 2.12 3.20 43
1997 2.03 3.24 30
1998 1.93 3.15 54
- ----------------------------------------------------------------------
OHIO FUND
- ---------
Class A
- -------
1994 1.20 4.83 57
1995 1.22 4.72 70
1996 1.19 4.62 33
1997 1.18 4.50 25
1998 1.19 4.44 34
Class B
- -------
1/12/95* to 12/31/95 2.13+ 3.95+ 70
1996 1.99 3.82 33
1997 1.98 3.70 25
1998 1.99 3.64 34
- ----------------------------------------------------------------------
OREGON FUND
- -----------
Class A
- -------
1994 1.39 4.17 135
1995 1.23 4.33 36
1996 1.26 4.16 21
1997 1.20 4.11 32
1998 1.20 3.92 27
Class B
- -------
1/12/95* to 12/31/95 2.03+ 3.65+ 36
1996 2.07 3.36 21
1997 2.00 3.31 32
1998 2.00 3.12 27
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PENNSYLVANIA FUND
- -----------------
Class A
- -------
1994 $13.16 $.627 $(1.447) $ (.820) $.630 $ --
1995 11.71 .638 1.463 2.101 .635 .036
1996 13.14 .622 (.197) .425 .627 .028
1997 12.91 .624 .523 1.147 .624 .153
1998 13.28 .642 .038 .680 .605 .095
Class B
- -------
1/12/95* to 12/31/95 11.81 .539 1.376 1.915 .549 .036
1996 13.14 .529 (.201) .328 .530 .028
1997 12.91 .526 .510 1.036 .523 .153
1998 13.27 .533 .039 .572 .497 .095
- ----------------------------------------------------------------------------------------------------------------
VIRGINIA FUND
- -------------
Class A
- -------
1994 $13.06 $.611 $(1.383) $ (.772) $.608 $ --
1995 11.68 .625 1.370 1.995 .629 .036
1996 13.01 .626 (.195) .431 .624 .067
1997 12.75 .615 .504 1.119 .617 .032
1998 13.22 .612 .123 .735 .603 .092
Class B
- -------
1/12/95* to 12/31/95 11.76 .510 1.286 1.796 .520 .036
1996 13.00 .525 (.194) .331 .524 .067
1997 12.74 .513 .505 1.018 .516 .032
1998 13.21 .505 .112 .617 .495 .092
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PENNSYLVANIA FUND
- -----------------
Class A
- -------
1994 $.630 $11.71 (6.31) $33,542 .88 5.11
1995 .671 13.14 18.29 39,980 .86 5.07
1996 .655 12.91 3.39 42,228 .86 4.86
1997 .777 13.28 9.14 42,223 .85 4.79
1998 .700 13.26 5.23 40,774 .86 4.81
Class B
- -------
1/12/95* to 12/31/95 .585 13.14 16.49 247 1.72+ 4.20+
1996 .558 12.91 2.61 781 1.66 4.06
1997 .676 13.27 8.23 1,739 1.65 3.99
1998 .592 13.25 4.39 2,048 1.66 4.01
- ----------------------------------------------------------------------------------------------------------------
VIRGINIA FUND
- -------------
Class A
- -------
1994 $.608 $11.68 (5.97) $22,325 .85 5.01
1995 .665 13.01 17.42 25,193 .81 5.01
1996 .691 12.75 3.47 21,047 .79 4.93
1997 .649 13.22 9.03 22,136 .80 4.78
1998 .695 13.26 5.69 23,423 .80 4.62
Class B
- -------
1/12/95* to 12/31/95 .556 13.00 15.53 991 1.66+ 4.16+
1996 .591 12.74 2.66 1,166 1.59 4.13
1997 .548 13.21 8.19 1,390 1.60 3.98
1998 .587 13.24 4.76 1,484 1.60 3.82
- ----------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
- ----------------------------------------------------------------------
PENNSYLVANIA FUND
- -----------------
Class A
- -------
1994 1.13 4.86 81
1995 1.11 4.82 48
1996 1.11 4.61 42
1997 1.10 4.54 37
1998 1.10 4.57 26
Class B
- -------
1/12/95* to 12/31/95 1.98+ 3.94+ 48
1996 1.91 3.81 42
1997 1.90 3.74 37
1998 1.90 3.77 26
- ----------------------------------------------------------------------
VIRGINIA FUND
- -------------
Class A
- -------
1994 1.20 4.66 55
1995 1.16 4.66 34
1996 1.20 4.52 30
1997 1.16 4.42 10
1998 1.14 4.28 26
Class B
- -------
1/12/95* to 12/31/95 2.02+ 3.80+ 34
1996 2.00 3.72 30
1997 1.96 3.62 10
1998 1.94 3.48 26
- ----------------------------------------------------------------------
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5)
See notes to financial statements
</TABLE>
Independent Auditors' Report
To the Shareholders and Boards of Directors/Trustees of
First Investors Series Fund
First Investors Insured Tax Exempt Fund, Inc.
First Investors New York Insured Tax Free Fund, Inc.
and First Investors Multi-State Insured Tax Free Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of First Investors Insured
Intermediate Tax Exempt Fund (a series of First Investors Series Fund),
First Investors Insured Tax Exempt Fund, Inc., First Investors New York
Insured Tax Free Fund, Inc. and the seventeen Funds comprising First
Investors Multi-State Insured Tax Free Fund, as of December 31, 1998, 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 the financial highlights for each of the periods indicated thereon.
These financial statements and financial highlights are the responsibility
of the Funds' management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the
custodian and brokers. Where brokers have not replied to our confirmation
requests, we have carried out other appropriate auditing procedures. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of First Investors Insured Intermediate Tax Exempt Fund, First Investors
Insured Tax Exempt Fund, Inc., First Investors New York Insured Tax Free
Fund, Inc. and the seventeen Funds comprising First Investors Multi-State
Insured Tax Free Fund, at December 31, 1998, and the results of their
operations for the year then ended, changes in their net assets for each of
the two years in the period then ended and their financial highlights for
the periods presented, in conformity with generally accepted accounting
principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 29, 1999
FIRST INVESTORS
Directors/Trustees
- -----------------------
James J. Coy (Emeritus)
Glenn O. Head
Kathryn S. Head
Larry R. Lavoie
Rex R. Reed
Herbert Rubinstein
Nancy S. Schaenen
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- -----------------------
Glenn O. Head
President
Clark D. Wagner
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
FIRST INVESTORS
Shareholder Information
- -----------------------
Investment Adviser
First Investors Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Eight Penn Center Plaza
Philadelphia, PA 19103
It is the Funds' practice to mail only one copy of their annual and semi-
annual reports to any address at which more than one shareholder with the
same last name has indicated that mail is to be delivered. Additional copies
of the reports will be mailed if requested by any shareholder in writing or
by calling 800-423-4026. The Funds will ensure that separate reports are sent
to any shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders,
and, if given to prospective shareholders, must be accompanied or preceded by
the Funds' prospectus.
