Portfolio Manager's Letter
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
We are pleased to present the annual report for the First Investors
Global Fund, Inc. As of December 31, 1994, the Fund's net asset value
per share was $5.84. The Fund ended the fiscal year with 92% invested
in equities and the remainder in cash and cash equivalents.
The year 1994 was a difficult one in the global equity markets. Global
investors were preoccupied with rising interest rates and their
negative impact on valuations, crossborder capital flows and longer
term corporate profitability. Although the U.S. equity market finished
the year slightly positive, the twelve month return of 1.3% for the S&P
500 Index belies the turbulence of most market sectors. In the major
non-U.S. equity markets, Japan was the clear winner in 1994, with an
annual gain of 9% in local terms and 22% in dollar terms. The improving
economy in Japan and the strength of foreign currencies against the
dollar accounted for the Morgan Stanley Capital Index Europe Asia Far
East return of 8.1% in dollar terms. The major European bourses were
mixed for the year, but overall performance as measured by the MSCI
Europe Index was up 2.7%, also in U.S. dollars. The adverse
consequences of rising U.S. interest rates were felt around the world.
Rising rates had a particularly negative impact on countries with
currencies tied closely to the U.S. dollar and emerging markets
dependent on global capital flows. Mexico fell in both camps. Indeed,
in the case of Mexico, the government's decision to "widen" the
fluctuation bands between the Mexican peso and the U.S. dollar led to
an abrupt and precipitous decline in that market, as well as in other
parts of Latin America. Rising rates also had a negative impact on the
smaller Asian markets as evidenced by a -14% return for the MSCI Pac
Basin ex-Japan Index.
The First Investors Global Fund declined 3.8% for the fiscal year ended
December 31, 1994. The Fund's performance was hurt by its
underweighting in Japan (20.5% of equities), relative to the MSCI World
Index (28.1% of equities). The performance was also held back by its
initial overweighting in emerging market countries which declined 22%
during the first quarter of 1994. During the second quarter, the Fund
began to reduce its exposure to emerging countries, where markets are
sensitive to cashflows from foreign investors and U.S. monetary policy,
and became biased towards larger more well established equity markets
such as the United States, Japan, the United Kingdom, France and
Germany. The decision to trim the Fund's exposure to emerging/high
growth economies had a positive impact on performance for the remainder
of the year. For example, at year-end, the portfolio's exposure to Hong
Kong, which declined 28.9% during 1994, was 2.5% of equities, down from
9.7% at the beginning of the year. Also, as of year-end, the Global
Fund owned only one Mexican ADR and one Mexican stock, 2% of equities,
trimmed down from 4.1% earlier in the year.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Trond Skramstad
Trond Skramstad
Director of International Investing
Global Equity Strategy Group
Wellington Management Company
January 31, 1995
Cumulative Performance Information
FIRST INVESTORS GLOBAL FUND, INC.
Comparison of change in value of $10,000 investment in the First
Investors Global Fund, Inc. (Class A shares) and the Morgan Stanley
World 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.
<TABLE>
<CAPTION>
Global Fund Morgan Stanley World Index
<S> <C> <C>
Jan-85 $ 9,375 $10,000
Dec-85 10,403 14,178
Dec-86 15,136 20,247
Dec-87 19,464 23,642
Dec-88 22,598 29,303
Dec-89 31,106 34,345
Dec-90 27,304 28,676
Dec-91 31,279 34,115
Dec-92 30,377 32,530
Dec-93 37,356 40,056
Dec-94 35,944 42,299
</TABLE>
<TABLE>
<CAPTION>
Class A shares Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
<S> <C> <C>
One Year (3.78%) (9.82%)
Five Years 2.93% 1.65%
Ten Years 14.40% 13.65%
</TABLE>
The graph compares a $10,000 investment made in the First Investors
Global Fund, Inc. on 1/1/85 with a similar investment in the Morgan
Stanley World 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. Investors
investing in periodic payment plans bear additional expenses
The Morgan Stanley World Index is designed to measure the performance
of stock markets in the United States, Europe, Canada, Australia, New
Zealand and the Far East. The Index consists of approximately 1,500
companies listed on stock exchanges in twenty-two countries. The
combined market capitalization of companies in the Index represents
approximately 60% of the aggregate market value of the covered stock
exchanges. The Index does not take into account fees and expenses. It
is not possible to invest in the Morgan Stanley World Index.
*Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "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) and are higher than they would have been
had the sales charge not been reduced. 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. Morgan Stanley World Index figures from Morgan Stanley & Co.
Incorporated and all other figures from First Investors Management
Company, Inc. Class A shares were the only shares offered by the Fund
during the period reported.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1994
- - -----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--91.7%
Japan--18.9%
310,000 Chichibu Onoda Cement Co. $ 1,764,830 $ 82
300 East Japan Railway Co. 1,497,444 70
98,000 Fujisawa Pharmacy Co. 1,060,830 50
150,000 Hitachi Co., Ltd. 1,486,905 70
20,000 Ito Yokado Co., Ltd. 1,068,456 50
150,000 Kajima Corp. 1,283,940 60
50,000 Kokusai Electric Co., Ltd. 962,210 45
15,000 Kyocera Corp. 1,111,055 52
6,000 Kyoritsu Air Tech., Inc. 146,737 7
15,000 Mabuchi Motor 1,127,592 53
300,000 Minebea Co., Ltd. 2,525,790 118
100,000 Mitsui Petrochemical Industries 882,020 41
22,500 Murata Mfg. Co., Ltd. 868,246 41
10,000 Nihon Jumbo Co., Ltd. 410,945 19
200 Nippon Telegraph & Telephone Corp. 1,766,062 82
500,000 *NKK Corp. 1,383,150 65
50,000 Nomura Securities Ltd. 1,037,385 48
30,000 Orix Corp. 1,106,544 52
10,000 Riso Kagaku Corp. 865,991 40
100,000 Sankyo Co., Ltd. 2,485,710 116
15,500 Sanyo Shinpan Finance Co., Ltd. 1,492,983 70
30,000 Secom Co., Ltd. 1,864,287 87
29,700 Seven Eleven Japan 2,384,453 112
40,000 Shimamura Corp. 2,004,608 94
3,000 Shohkoh Fund & Co. 619,424 29
7,000 Showa Corporation 68,056 3
37,000 Sony Corp. 2,095,317 98
253,000 Sumitomo Realty & Development 1,496,116 70
99,000 Sumitomo Trust and Banking 1,389,188 65
18,000 TDK Corp. 871,403 41
75,000 Tokio Marine & Fire Insurance Co., Ltd. 917,108 43
4,000 Tsutsumi Jewelry Co., Ltd. 364,839 17
- - -----------------------------------------------------------------------------------------------------------------------
40,409,624 1,890
- - -----------------------------------------------------------------------------------------------------------------------
United States--18.0%
25,000 American International Group, Inc. 2,450,000 114
57,000 *American Re Corporation 1,838,250 86
34,000 *AMR Corp. 1,810,500 85
45,000 A T & T Corp. 2,261,250 106
16,000 Capital Cities ABC Inc. 1,364,000 64
16,000 Chrysler Corp. 784,000 37
40,000 Dow Chemical Co. 2,690,000 126
30,000 Exxon Corp. 1,822,500 85
22,000 Federal National Mortgage Association 1,603,250 75
33,200 General Electric Co. 1,693,200 79
20,000 Gillette Co. 1,495,000 70
13,000 Hewlett-Packard Co. 1,298,375 61
22,000 International Paper Co. 1,658,250 77
26,000 J.C. Penney Co. 1,160,250 54
34,500 Johnson & Johnson 1,888,875 88
35,000 Kimberly Clark Corp. 1,767,500 83
85,000 MCI Communications 1,561,875 73
10,000 Minnesota Mining & Manufacturing Co. 533,750 25
50,000 Pepsico, Inc. 1,812,500 85
100,000 Unocal Corp. 2,725,000 127
6,080 *Viacom Inc. Class "A" 253,080 12
46,067 *Viacom Inc. Class "B" 1,871,472 88
55,000 York International Corp. 2,028,125 95
- - -----------------------------------------------------------------------------------------------------------------------
38,371,002 1,795
- - -----------------------------------------------------------------------------------------------------------------------
United Kingdom--8.8%
100,000 Abbey National PLC 673,510 31
300,000 Bass PLC 2,414,790 113
1,506,000 BET PLC 2,391,377 112
273,000 British Telecommunications PLC 1,612,311 75
229,500 Cadbury Schweppes PLC 1,547,496 72
434,000 General Electric PLC 1,867,198 87
120,000 Kwik Save Group PLC 1,032,564 48
303,800 Redland PLC 2,186,357 102
172,000 Smith (W.H.) & Son Group "A" PLC 1,288,951 60
572,000 Tomkins PLC 1,968,767 92
140,000 Zeneca Group PLC 1,925,266 90
- - -----------------------------------------------------------------------------------------------------------------------
18,908,587 882
- - -----------------------------------------------------------------------------------------------------------------------
France--5.8%
17,296 Compagnie De Saint Gobain 1,989,913 93
10,187 Euro Rscg Worldwide S.A. 1,049,855 49
6,000 Groupe Danone 842,080 39
42,000 *Renault SA 1,389,037 65
25,716 Societe Generale Paris 2,703,250 126
34,300 *Technip SA 1,567,565 73
33,000 Total SA 1,918,118 90
15,000 *Ugine SA (Note 4) 1,054,005 49
- - -----------------------------------------------------------------------------------------------------------------------
12,513,823 584
- - -----------------------------------------------------------------------------------------------------------------------
Australia--4.3%
101,050 Amcor Ltd. 730,501 34
223,912 Broken Hill Proprietary Ltd. 3,400,619 159
434,000 Coles Myer Ltd. 1,474,428 69
283,455 National Australia Bank Ltd. 2,273,366 106
494,603 Pacific Dunlop Ltd. 1,315,891 62
- - -----------------------------------------------------------------------------------------------------------------------
9,194,805 430
- - -----------------------------------------------------------------------------------------------------------------------
Germany--3.9%
7,750 Bayer AG 1,814,981 85
6,000 Deutsche Bank AG 2,787,068 130
5,875 Mannesmann AG 1,599,499 75
1,000 Schering AG 654,832 31
600 Siemens AG 249,675 12
3,500 Veba AG 1,212,117 57
- - -----------------------------------------------------------------------------------------------------------------------
8,318,172 390
- - -----------------------------------------------------------------------------------------------------------------------
Netherlands--3.8%
198,000 Elsevier NV CVA 2,065,199 97
34,000 International Nederlanden CVA 1,606,622 75
20,000 Royal Dutch Petroleum (ORD) 2,178,278 102
20,000 Unilever NV CVA 2,350,004 110
- - -----------------------------------------------------------------------------------------------------------------------
8,200,103 384
- - -----------------------------------------------------------------------------------------------------------------------
Switzerland--2.7%
4,500 Ciba-Geigy AG 2,685,569 126
3,200 Nestle AG 3,049,224 143
- - -----------------------------------------------------------------------------------------------------------------------
5,734,793 269
- - -----------------------------------------------------------------------------------------------------------------------
Malaysia--2.4%
166,666 Arab Malaysian Finance 430,765 20
616,800 Sime Darby Berhad 1,413,027 66
225,000 Telekom Malaysia 1,524,353 71
442,000 Tenaga Nasional Bhd 1,748,243 82
- - -----------------------------------------------------------------------------------------------------------------------
5,116,388 239
- - -----------------------------------------------------------------------------------------------------------------------
Singapore--2.4%
212,500 Development Bank of Singapore 2,186,243 102
333,000 Keppel Corp. 2,832,132 133
- - -----------------------------------------------------------------------------------------------------------------------
5,018,375 235
- - -----------------------------------------------------------------------------------------------------------------------
Sweden--2.3%
60,000 AGA AB Series "B" Free 552,858 26
88,000 Astra AB Series "A" Free 2,272,776 106
134,000 Pharmacia AB Series "A" Free 2,144,978 100
- - -----------------------------------------------------------------------------------------------------------------------
4,970,612 232
- - -----------------------------------------------------------------------------------------------------------------------
New Zealand--2.3%
1,050,000 Carter Holt Harvey Ltd. 2,150,820 101
525,000 Lion Nathan Ltd. 1,001,490 47
152,000 Telecom Corp. New Zealand Ltd. (Note 4) 496,234 23
25,000 Telecom Corp. New Zealand Ltd. (ADR) 1,284,375 60
- - -----------------------------------------------------------------------------------------------------------------------
4,932,919 231
- - -----------------------------------------------------------------------------------------------------------------------
Hong Kong --2.3%
201,000 China Light & Power 857,285 40
130,378 HSBC Holdings PLC 1,407,065 66
425,000 Swire Pacific Class "A" 2,647,623 124
- - -----------------------------------------------------------------------------------------------------------------------
4,911,973 230
- - -----------------------------------------------------------------------------------------------------------------------
Spain--2.2%
40,000 Empresa Nacional De Electricidad S.A. (ADR) 1,620,000 76
60,000 Repsol S.A. (ADR) 1,635,000 76
53,000 Tabacalera S.A. 1,413,277 66
- - -----------------------------------------------------------------------------------------------------------------------
4,668,277 218
- - -----------------------------------------------------------------------------------------------------------------------
Canada--1.8%
154,000 Canadian Pacific Ltd. (40,000 shares restricted--Note 5) 2,310,000 108
33,000 Imperial Oil Ltd. 1,088,093 51
30,000 Westcoast Energy Inc. 475,873 22
- - -----------------------------------------------------------------------------------------------------------------------
3,873,966 181
- - -----------------------------------------------------------------------------------------------------------------------
Mexico--1.8%
137,000 Kimberly Clark Mexican "A" 1,621,740 76
54,000 Telefonos De Mexico S.A. (ADR) "L" 2,214,000 103
- - -----------------------------------------------------------------------------------------------------------------------
3,835,740 179
- - -----------------------------------------------------------------------------------------------------------------------
Denmark--1.8%
65,500 *Tele Danmark A/S (ADS) "B" 1,670,250 78
55,000 *Unidanmark A/S "A" Regd (30,000 shares 144A securities--Note 4) 2,114,855 99
- - -----------------------------------------------------------------------------------------------------------------------
3,785,105 177
- - -----------------------------------------------------------------------------------------------------------------------
Norway--1.6%
50,000 Hafslund Nyco Series "A" Free 1,068,150 50
219,000 Saga Petroleum Series "A" Free 2,379,720 111
- - -----------------------------------------------------------------------------------------------------------------------
3,447,870 161
- - -----------------------------------------------------------------------------------------------------------------------
Italy--1.2%
172,000 Istituto Mobiliare Italiano S.P.A. 1,057,060 49
580,000 Telecom Italia S.P.A. 1,508,754 71
- - -----------------------------------------------------------------------------------------------------------------------
2,565,814 120
- - -----------------------------------------------------------------------------------------------------------------------
Argentina--1.0%
29,612 Banco De Galicia Y Buenos Aires S.A. Class "B" (ADR) 510,807 24
14,000 Telefonica Argentina S.A. Class "B" (ADR) 742,000 35
41,000 YPS Sociedad Anonima S.A. Class "D" (ADR) 876,375 41
- - -----------------------------------------------------------------------------------------------------------------------
2,129,182 100
- - -----------------------------------------------------------------------------------------------------------------------
Chile--.9%
25,000 Compania De Telefonos De Chile S.A. (ADR) 1,968,750 92
- - -----------------------------------------------------------------------------------------------------------------------
Portugal--.6%
98,600 *Banco Commercial Portuguese 1,288,238 60
- - -----------------------------------------------------------------------------------------------------------------------
Austria--.5%
7,500 EVN 974,327 46
- - -----------------------------------------------------------------------------------------------------------------------
India--.4%
125,000 *Indo Gulf Fertilizers and Chemicals Corp., Ltd. (GDR) (Note 4) 373,563 18
30,000 *ITC Ltd. (GDR) (Note 4) 363,417 17
10,000 *Reliance Industries Ltd. (GDR) (Note 4) 219,963 10
- - -----------------------------------------------------------------------------------------------------------------------
956,943 45
- - -----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $174,252,572) 196,095,388 9,170
- - -----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.4%
Germany
1,500 Krones AG (cost $1,039,617) 841,926 39
- - -----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--5.3%
$11,277 M Paine Webber Inc., 5.85%., 1/3/95
(Collateralized by U.S. Treasury Notes 4 1/8%, 6/30/95) (cost $11,277,000) 11,277,000 527
- - -----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $186,569,189) 97.4% 208,214,314 9,736
Other Assets, Less Liabilities 2.6 5,639,021 264
- - -----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $213,853,335 $10,000
=======================================================================================================================
*Non-income producing
See notes to financial statements
</TABLE>
Portfolio of Investments
FIRST INVESTORS GLOBAL FUND, INC.
At December 31, 1994, sector diversification of the portfolio was as
follows:
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------
Percentage
Sector Diversification of Net Assets Value
- - ----------------------------------------------------------------------------
<S> <C> <C>
Financial Services 13.90% $ 29,711,565
Telecommunications 8.7 18,610,214
Energy 8.3 17,668,065
Drugs 7.9 16,933,817
Food/Beverage/Tobacco 5.2 11,030,997
Electrical Equipment 4.7 10,033,476
Industrial Services 4.4 9,332,823
Retail Trade 3.8 8,092,195
Household Products 3.4 7,234,244
Electronics/Instruments/Components 2.7 5,772,562
Transportation 2.6 5,617,944
Conglomerates 2.6 5,479,754
Chemicals 2.5 5,377,662
Insurance 2.4 5,205,358
Building Materials 2.2 4,764,944
Media/Cable Television 2.1 4,479,054
Machinery/Diversified 1.9 4,233,708
Miscellaneous 1.6 3,610,043
Utilities 1.6 3,368,243
Real Estate/Construction 1.4 3,048,770
Manufacturing/Diversified 1.4 2,915,390
Automotive 1.0 2,173,037
Entertainment 1.0 2,124,552
Natural Gas .9 1,918,118
Paper/Forest Products .8 1,658,250
Housing .7 1,496,116
Gaming/Lodging .7 1,413,277
Retail/General Merchandise .6 1,288,951
Metals/Miscellaneous .5 1,054,005
Electric & Gas Utilities .4 857,285
Retail/Specialty .2 364,839
Consumer Durables .0 68,056
Repurchase Agreement 5.3 11,277,000
- - ----------------------------------------------------------------------------
Total Investments 97.4 208,214,314
Other Assets, Less Liabilities 2.6 5,639,021
- - ----------------------------------------------------------------------------
Net Assets 100.0% $213,853,335
============================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1994
- - -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities, at value (identified cost $186,569,189) (Note 1A) $208,214,314
Cash 4,794,357
Receivables:
Investment securities sold $1,721,691
Dividends and interest 741,289
Capital stock sold 469,060 2,932,040
----------
Other assets 20,335
------------
Total Assets 215,961,046
Liabilities
Payables:
Investment securities purchased 740,179
Capital stock redeemed 721,503
Dividend payable January 15, 1995 214,787
Accrued expenses 255,063
Accrued advisory fee 176,179
----------
Total Liabilities 2,107,711
------------
Net Assets $213,853,335
============
Net Assets Consist of:
Capital paid in $199,409,805
Accumulated net realized loss from investments and
foreign currency transactions (7,208,770)
Net unrealized appreciation on investments and
translation of assets in foreign currencies 21,652,300
------------
Total $213,853,335
============
Net Asset Value and Redemption Price Per Share--Class A (Note 7)
($213,853,335 divided by 36,613,393 shares outstanding),
65,000,000 shares authorized, $1.00 par value $5.84
=====
Maximum Offering Price Per Share--Class A ($5.84/.9375)* $6.23
=====
*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 GLOBAL FUND, INC.
Year Ended December 31, 1994
- - -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Income:
Dividends (net of $325,441 foreign withholding taxes) $ 4,477,522
Interest 409,780
------------
Total income 4,887,302
Expenses:
Advisory fee (Note 3) $ 2,138,787
Shareholder servicing costs (Note 3) 723,600
Distribution plan expenses (Note 6) 641,634
Custodian fees and expenses 157,741
Reports and notices to shareholders 155,554
Other expenses 116,167
------------
Total expenses 3,933,483
------------
Net investment income 953,819
------------
Realized and Unrealized Gain (Loss) from Investments and
Foreign Currency Transactions (Note 2):
Net realized gain from:
Investments 23,911,030
Foreign currency transactions 43,179 23,954,209
------------
Net unrealized appreciation (depreciation) on:
Investments (33,049,838)
Translation of assets in foreign currencies 7,175 (33,042,663)
------------ ------------
Net loss from investments and foreign currency (9,088,454)
------------
Net Decrease in Net Assets Resulting from Operations $ (8,134,635)
============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS GLOBAL FUND, INC.
- - ------------------------------------------------------------------------------------------------------------
Year Ended December 31 1994 1993
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 953,819 $ 494,606
Net realized gain from investments and foreign currency transactions 23,954,209 5,166,719
Net unrealized appreciation (depreciation) on investments
and translation of assets in foreign currencies (33,042,663) 32,941,734
------------ ------------
Net increase (decrease) in net assets resulting from operations (8,134,635) 38,603,059
------------ ------------
Distributions to Shareholders from:
Net investment income (993,371) (467,724)
Net realized gain on investments (5,853,794) --
------------ ------------
Total distributions (6,847,165) (467,724)
------------ ------------
Capital Share Transactions--Class A(a)
Issued 39,554,771 26,095,094
Issued on reinvestments 6,632,379 367,113
Redeemed (27,116,895) (35,845,632)
------------ ------------
Net increase (decrease) from capital share transactions 19,070,255 (9,383,425)
------------ ------------
Total increase in net assets 4,088,455 28,751,910
Net Assets
Beginning of year 209,764,880 181,012,970
------------ ------------
End of year $213,853,335 $209,764,880
============ ============
(a) Capital shares issued and redeemed--Class A (Note 7)
Issued 6,428,101 4,633,059
Issued on reinvestments 1,135,681 58,551
Redeemed (4,412,645) (6,674,210)
------------ ------------
Net increase (decrease) in shares 3,151,137 (1,982,600)
============ ============
See notes to financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS GLOBAL FUND, INC.
1. Significant Accounting Policies--The Fund is registered under the
Investment Company Act of 1940 (the "1940 Act") as a diversified, open-
end management investment company.
A. Security Valuation--A security listed or traded on any stock
exchange or the NASDAQ National Market System is valued at its last
sale price on that exchange or system prior to the time when assets are
valued. If no sale is reported at that time, the mean between the
current bid and asked prices is used. Securities for which over-the-
counter market quotations are readily available are valued at the mean
between the last current bid and asked prices. Securities for which
market quotations are not readily available and other assets are valued
on a consistent basis at fair value as determined in good faith by or
under the supervision of the Fund's officers in a manner specifically
authorized by the Board of Directors. For valuation purposes,
quotations of foreign securities in foreign currency are translated to
U.S. dollar equivalents using the foreign exchange quotation in effect.
B. Federal Income Taxes--No provision has been made for federal income
taxes on net income or capital gains, since it is the policy of the
Fund to continue to comply with the special provisions of the Internal
Revenue Code applicable to investment companies and to make sufficient
distributions of income and capital gains (in excess of any available
capital loss carryovers) to relieve it from all, or substantially all,
such taxes. At December 31, 1994, the Fund had available capital loss
carryovers of $7,201,020, resulting from reorganizations in 1989 with
other First Investors funds. The capital loss carryovers, as limited by
the provisions of the 1986 Tax Reform Act, expire as follows:
<TABLE>
<CAPTION>
Amount of
Capital Loss
Year Carryover Expiring
- - ---- ------------------
<S> <C>
1995 $1,136,862
1996 1,659,182
1997 4,404,976
----------
$7,201,020
==========
</TABLE>
C. Foreign Currency Translations--The books and records are maintained
in U.S. dollars. For valuation purposes, quotations of foreign
securities in foreign currency are translated to U.S. dollar
equivalents using the daily rate of exchange. Purchases and sales of
investment securities, dividend income and certain expenses are
translated to U.S. dollars at the rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on
investments which is due to changes in foreign exchange rates from that
which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains
and losses from investments.
Net realized and unrealized gain (loss) from foreign currency
transactions includes gains and losses arising from the sales of
foreign currency and gains and losses between the ex and payment dates
on dividends and foreign withholding taxes.
D. Distributions to Shareholders--Distributions to shareholders from
net investment income and net realized gains are declared and paid
annually.
The timing and characterization of income and capital gain
distributions are determined in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments for foreign
currency transactions, capital loss carryforwards, deferral of wash
sales and post October losses.
E. Other--Security transactions are accounted for on the date the
securities are purchased or sold. Cost is determined, and gains and
losses are based, on the identified cost basis for both financial
statement and federal income tax purposes. Dividend income is recorded
on the ex-dividend date, except that certain dividends from foreign
securities are recorded on the ex-dividend date or as soon thereafter
as the Fund is informed of the dividend. Interest income and estimated
expenses are accrued daily.
2. Securities Transactions--For the year ended December 31, 1994,
purchases and sales of investment securities, excluding foreign
currencies, United States Treasury Bills and repurchase agreements,
aggregated $115,200,193 and $114,014,750, respectively.
At December 31, 1994, the cost of investments for federal income tax
purposes was $186,576,939. Accumulated net unrealized appreciation on
investments was $21,637,375, consisting of $28,380,312 gross unrealized
appreciation and $6,742,937 gross unrealized depreciation.
3. Advisory Fee and Other Transactions With Affiliates (Also see Note
6)--Certain officers and directors of the Fund are officers and
directors of its investment adviser, First Investors Management
Company, Inc. ("FIMCO"), its underwriter, First Investors Corporation
("FIC"), its transfer agent, Administrative Data Management Corp.
("ADM") and/or First Financial Savings Bank, S.L.A. ("FFS"), custodian
of the Fund's Individual Retirement Accounts. Officers and directors of
the Fund received no remuneration from the Fund for serving in such
capacities. Their remuneration (together with certain other expenses of
the Fund) is paid by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO an
annual fee, payable monthly, at the rate of 1% on the first $250
million of the Fund's average daily net assets, declining by .03% on
each $250 million thereafter, down to .91% on average daily net assets
over $750 million.
Pursuant to certain state regulations, FIMCO has agreed to reimburse
the Fund if and to the extent that the Fund's aggregate operating
expenses, including the advisory fee but generally excluding interest,
taxes, brokerage commissions and extraordinary expenses, exceed any
limitation on expenses applicable to the Fund in those states (unless
waivers of such limitations have been obtained). The amount of any such
reimbursement is limited to the yearly advisory fee. For the year ended
December 31, 1994, no reimbursement was required pursuant to these
provisions.
During the year ended December 31, 1994, FIC, as underwriter, received
$1,529,863 in commissions after allowing $3,438 to other dealers.
Shareholder servicing costs included $437,580 in transfer agent fees
paid to ADM and $217,315 in custodian fees paid to FFS.
Wellington Management Company serves as the investment subadviser to
the Fund. The subadviser is paid by FIMCO and not by the Fund.
4. Rule 144A Securities--Under Rule 144A, certain restricted securities
are exempt from the registration requirements of the Securities Act of
1933 and may only be resold to qualified institutional investors. At
December 31, 1994, the Fund held six 144A securities with an aggregate
value of $3,660,739, representing 1.7% of the Fund's net assets. These
securities are valued as set forth in Note 1A.
5. Restricted Securities--On February 14, 1994, the Fund purchased
40,000 shares of common stock of Canadian Pacific Ltd. at a cost of
$672,580. This security, which was acquired through a private
placement, may not be sold or transferred without prior registration
under the Securities Act of 1933 or pursuant to an exemption therefrom.
If and when the Fund sells this security, additional costs for
registration may be required. The security is valued based upon the
price of the unrestricted shares of common stock. At December 31, 1994,
the value of the above restricted stock was $600,000.
6. Distribution Plan--Pursuant to a Distribution Plan adopted under
Rule 12b-1 of the 1940 Act, the Fund is authorized to pay FIC a fee
equal to .30% of the Fund's average net assets on an annualized basis
each fiscal year, payable monthly. The fee consists of a distribution
fee and a service fee. The service fee is paid for the ongoing
servicing of clients who are shareholders of the Fund.
7. Capital Stock--By action of the Board of Directors, the Fund amended
its Articles of Incorporation on October 21, 1994 so that of the
100,000,000 shares originally authorized, 65,000,000 shares were
allocated as Class A capital stock and 35,000,000 shares were allocated
as Class B capital stock. As of December 31, 1994, only Class A shares
have been issued.
Financial Highlights
FIRST INVESTORS GLOBAL FUND, INC.
The following table sets forth the per share operating performance data
for a share of Class A capital stock outstanding, total return, ratios
to average net assets and other supplemental data for each year
indicated.*
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
Year Ended December 31
--------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
- - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data
- - --------------
Net Asset Value, Beginning of Year $6.27 $5.11 $5.41 $4.63 $5.38 $4.47 $3.85 $3.31 $2.53 $2.50
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Income from Investment Operations
Net investment income (loss) .028 .014 .039 .005 (.023) (.019) .003 (.021) .006 .012
Net realized and unrealized gain
(loss) from investments and
foreign currency transactions (.265) 1.160 (.298) .775 (.634) 1.689 .617 .969 1.068 .276
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from Investment
Operations (.237) 1.174 (.259) .780 (.657) 1.670 .620 .948 1.074 .288
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less Distributions from:
Net investment income .028 .014 -- -- -- -- -- .008 .006 .032
Net realized gain from
investments .165 -- -- -- -- .390 -- .400 .288 .226
Capital surplus -- -- .041 -- .093 .370 -- -- -- --
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Distributions .193 .014 .041 -- .093 .760 -- .408 .294 .258
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net Asset Value, End of Year $5.84 $6.27 $5.11 $5.41 $4.63 $5.38 $4.47 $3.85 $3.31 $2.53
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total Return(%)+ (3.78) 22.97 (2.89) 14.56 (12.22) 37.65 16.10 28.60 45.49 11.11
- - ---------------
Ratios/Supplemental Data
- - ------------------------
Net Assets, End of Year
(in thousands) $213,853 $209,765 $181,013 $226,345 $218,998 $182,378 $88,918 $92,921 $28,454 $30,366
Ratio to Average Net Assets:(%)
Expenses 1.84 1.87 1.83 1.95 1.88 1.75 1.74 1.73 1.75 1.70
Net investment income (loss) .45 .27 .73 .09 (.43) (.38) .07 (.45) .03 .52
Portfolio Turnover Rate(%) 56 41 45 64 116 155 115 137 94 61
*Adjusted to reflect five-for-one stock split on March 4, 1987
+Calculated without sales charge
See notes to financial statements
</TABLE>
Independent Auditor's Report
To the Shareholders and Board of Directors of
First Investors Global Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
First Investors Global Fund, Inc., including the portfolio of
investments, as of December 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended and financial
highlights for each of the ten years in the period then ended. These
financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of
December 31, 1994, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of First Investors Global Fund, Inc. at December 31,
1994, and the results of its operations, changes in its net assets and
financial highlights for each of the respective periods presented, in
conformity with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1995
FIRST INVESTORS GLOBAL FUND, INC.
Directors
- - ---------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
F. William Ortman, Jr.
Rex R. Reed
Herbert Rubinstein
John T. Sullivan
Robert F. Wentworth
Officers
- - --------
Glenn O. Head
President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
FIRST INVESTORS GLOBAL FUND, INC.
Shareholder Information
- - -----------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Subadviser
Wellington Management Company
75 State Street
Boston, MA 02109
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data
Management Corp.
10 Woodbridge Center Drive
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart
1800 M Street, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
For more complete information about First Investors Global Fund, Inc.,
including charges and expenses, you may obtain a prospectus from your
registered representative or by calling 1-800-423-4026. Read it
carefully before you invest or send money.
FIRST INVESTORS GLOBAL FUND, INC.
95 WALL STREET
NEW YORK, NY 10005
First Investors LOGO
LOGO is described as follows: The arabic numeral one separated into seven
vertical segments followed by the words "First Investors".
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIIS077
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 1796" in a box
to the right of a circle containing the words "MAILED FROM
ZIP CODE 17604" appears to the right of the above language in the
printed piece.
Vertically reading from bottom to top in center of the page the words
"FIRST INVESTORS" appear in the printed piece.
FIRST
INVESTORS
GLOBAL
FUND, INC.
ANNUAL
REPORT
December 31, 1994
