FIRST
INVESTORS
GLOBAL
FUND, INC.
SEMI-
ANNUAL
REPORT
JUNE 30, 1996
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FIRST INVESTORS GLOBAL FUND, INC.
95 WALL STREET
NEW YORK, NY 10005
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A MEMEBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIIS077
Portfolio Manager's Letter
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue to
slow or even enter a recession. Instead, the economy accelerated
throughout the first half of the year. After growing at an annualized
rate of only .5% in the fourth quarter of 1995, the economy expanded at
a 2.2% pace during the first quarter of this year and at an estimated
3.5%-4% during the second quarter. Concern that faster growth would lead
to higher inflation contributed to a sharp rise in interest rates with
the yield on long-term U.S. Treasury bonds increasing from 5.95% to
6.87%. Despite higher interest rates the U.S. stock market continued to
rally with the broad stock market averages hitting record highs during
the second quarter.
World equity markets also posted positive returns for the six months
ended June 30, 1996, with the MSCI World index rising 7.3%. The Global
Fund Class A shares outperformed this average by returning 7.6% on a net
asset value basis during the first six months of the year while the
Class B shares returned 7.0%. The U.S. stock market was among the
stronger markets for the first six months. Many of the major non-U.S.
markets saw local market increases reduced by a stronger U.S. dollar.
Uncertainty regarding the future direction of interest rates and
corporate profitability combined with "mixed" signals for underlying
economies added to market volatility. Moving into the second half, we
are anticipating continued mixed results from the international markets
in the short-run. While we believe that U.S. long-term bond yields have
hit an intermediate peak, and flat to lower bond yields should provide
some solace to the markets, the global liquidity situation is likely to
deteriorate modestly as we head into 1997. While U.S. short rates are
likely to remain fairly stable, interest rates in the other major
economies are at or near record lows and we are expecting these to
gradually tick upwards as growth becomes more "sure footed" into 1997.
Given our view of the U.S. economic cycle and the magnitude of U.S.
stock market gains over the past 18 months, we are inclined to
underweight the U.S. component of the Global Fund. Conversely, we have
overweighted the Fund's investments in Japan relative to its
competitors. Japanese profits rebounded strongly in the fiscal year
ended March 1996. Non-financial companies saw an almost 40% increase in
earnings, while bank write-offs caused the financial sector to report
negative net profit numbers. Corporate profits should continue to
recover over the next two years as economic recovery gathers pace and
the impact of unprecedented cost cutting and restructuring bears fruit.
With the view that economic growth is likely to continue to positively
surprise investors, we have added to the Fund's investments in companies
with exposure to increases in Japanese economic activity. The Fund's
investment in Japan was 16% as of June 30, 1996. The remainder of the
Fund was invested 40% in Europe, 27% in the U.S. and Canada, 15% in
Pacific Basin ex-Japan, and 2% in Latin America.
While the recent bull market in U.S. stocks has lasted 69 months,
investors in non-U.S. stocks have not seen such a strong rise in the
last several years, with the MSCI EAFE index generally lagging the U.S.
market indices. Given this recent performance and the underlying
economic positions of major economies worldwide we are optimistic about
investment opportunities going forward in the world's developed markets.
However, it is important to remember that stock markets tend to be
cyclical with periods when stock prices generally rise and periods when
stock prices generally decline. While there is a fair degree of
diversification across markets within the portfolio, which is an aid
during declining markets, diversification can not totally protect from
falling stock prices. In particular, we have avoided many emerging
markets as we generally believe that the return potential does not
outweigh the inherent risks in these markets. Even in the developed
foreign markets in which the Fund predominately invests, there are
currency risks as well as country specific political and economic risks.
Investors should be aware of these risks and recognize that successful
investing generally requires a long-term commitment to the market.
Most of the world's major economies are growing at moderate rates, or
poised to return to stronger growth. Inflation in these countries is
subdued, at rates generally below 3.0%. This economic backdrop, along
with steady monetary policies supports the world's equity markets
looking forward.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
Trond Skramstad
Global Equity Strategy Group
Wellington Management Company
July 8, 1996
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1996
- -----------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--95.5%
United States--24.4%
22,000 American Express Company $981,750 $39
37,500 American International Group, Inc. 3,698,437 146
41,000 American Re Corporation 1,839,875 73
17,000 *AMR Corporation 1,547,000 61
45,000 A T & T Corp. 2,790,000 110
21,000 Boeing Company 1,829,625 72
24,000 Conrail, Inc. 1,593,000 63
40,000 Dow Chemical Company 3,040,000 120
30,000 Exxon Corporation 2,606,250 103
88,000 Federal National Mortgage Association 2,948,000 117
33,200 General Electric Company 2,871,800 114
28,000 Gillette Company 1,746,500 69
26,000 Hewlett-Packard Company 2,590,250 102
21,000 Intel Corporation 1,542,187 61
86,000 International Paper Company 3,171,250 125
69,000 Johnson & Johnson 3,415,500 135
35,000 Kimberly Clark Corporation 2,703,750 107
85,000 MCI Communications 2,178,125 86
66,000 Pepsico, Inc. 2,334,750 92
58,000 Pharmacia & Upjohn, Inc. 2,573,750 102
8,400 United Technologies Corporation 966,000 38
100,000 Unocal Corporation 3,375,000 134
6,080 *Viacom Inc., Class "A" 231,800 9
46,067 *Viacom Inc., Class "B" 1,790,855 71
134,000 Wal-Mart Stores, Inc. 3,400,250 135
32,000 Warner-Lambert Company 1,760,000 70
41,000 York International Corporation 2,121,750 84
- -----------------------------------------------------------------------------------------------------------------------------
61,647,454 2,438
- -----------------------------------------------------------------------------------------------------------------------------
Japan--15.6%
9,000 Aichi Machine Industry Company 63,183 2
46,000 Asahi Organic Chemicals Industry Company Ltd. 361,100 14
45,150 Canon Sales Company Ltd. 1,255,518 50
192,000 Chichibu Onoda Cement Company 1,101,062 44
13,000 Chudenko Corporation 471,728 19
134,000 Chugai Pharmaceutical Company Ltd. 1,307,237 52
1,000 Chukyo Coca-Cola 11,488 --
99,000 Dai Nippon Printing Company Ltd. 1,913,531 76
15,000 Ito-Yokado Company Ltd. 903,981 36
5,000 Japan Associated Finance 583,507 23
66,000 JGC Corporation 866,507 34
34,000 Kyudenko Corporation 455,682 18
15,000 Mabuchi Motor Company Ltd. 954,582 38
72,000 Matsushita Electric Industrial Company Ltd. 1,339,150 53
150,000 Mitsubishi Heavy Industries 1,303,305 52
42,500 Murata Manufacturing Company Ltd. 1,608,064 64
9,000 Nihon Jumbo Company Ltd. 361,045 14
95,000 Nippon Express 926,772 37
70,000 Nippon Sanso Corporation 344,631 14
500 Nippon Television 154,994 6
34,000 Nippondenso Company Ltd. 737,769 29
500,000 *NKK Corporation 1,513,450 60
75,000 Nomura Securities Company Ltd. 1,463,325 57
73,000 Onward Kashiyama 1,191,353 47
97,000 Sakura Bank Ltd. 1,078,941 43
10,000 Sankyo Company Ltd. 258,931 10
23,000 Sanwa Bank Ltd. 425,686 17
30,000 Secom Company Ltd. 1,980,279 78
737 Seven Eleven Japan 46,969 2
50,000 Shimamura Corporation 2,197,270 87
28,000 Sony Corporation 1,840,600 73
190,000 Sumitimo Marine & Fire Insurance Company 1,654,330 65
283,000 Sumitomo Realty & Development 2,237,030 88
76,000 Sumitomo Trust and Banking Company Ltd. 1,039,368 41
74,000 Toda Construction Company Ltd. 721,907 29
32,550 Tokyo Mitsubishi Bank Ltd. 753,790 30
130,000 Toyo Ink Manufacturing Company Ltd. 744,328 29
62,000 Toyota Motor Corporation 1,548,847 61
7,100 World Company 313,307 12
86,000 Yamato Kogyo Co. Ltd. 1,027,150 41
26,000 Yamazaki Baking Co. Ltd. 481,211 19
- -----------------------------------------------------------------------------------------------------------------------------
39,542,908 1,564
- -----------------------------------------------------------------------------------------------------------------------------
United Kingdom--8.2%
199,000 Allied Irish Banks PLC 1,042,024 41
220,000 Associated British Foods PLC 1,322,904 52
110,000 Boots Company PLC 989,615 39
730,000 British Gas PLC 2,041,664 81
590,000 British Steel PLC 1,498,836 59
163,000 British Telecommunictions PLC 876,304 35
370,000 BTR PLC 1,454,507 58
108,700 De La Rue PLC 1,004,942 40
420,000 National Grid Holdings PLC 1,112,664 44
225,000 Northern Foods PLC 653,760 26
251,466 Powergen PLC 1,840,304 73
55,000 Reckitt & Colman PLC 577,698 23
120,000 Royal Bank of Scotland PLC 919,224 36
170,000 Royal Insurance Holdings PLC 1,051,297 42
220,000 Sainsbury PLC 1,295,558 51
190,000 *Sun Life & Provincial Holdings PLC 652,422 26
100,000 United Biscuits (Holdings) PLC 332,510 13
564,000 Vodafone Group PLC (4,000 shares restricted-Note 5) 2,103,212 82
- -----------------------------------------------------------------------------------------------------------------------------
20,769,445 821
- -----------------------------------------------------------------------------------------------------------------------------
France--6.8%
7,400 Accor 1,034,947 41
60,400 Assurance General 1,635,511 65
54,000 Banque Nationale De Paris 1,895,422 75
12,386 Compagnie De Saint Gobain 1,657,693 66
15,000 Compagnie Financiere D'Paribas 885,765 35
3,900 *Dassault Systeme (ADR) 120,900 5
6,456 Groupe Danone 976,910 39
14,000 Groupe Havas SA 1,144,891 45
4,600 Peugeot SA 615,646 24
103,706 Rhone-Poulenc SA Series "A" 2,725,549 107
14,976 Societe Generale Paris 1,646,517 65
15,000 Societe Nationale Elf Aquitaine 1,103,127 44
24,810 Total SA Class "B" 1,839,994 73
- -----------------------------------------------------------------------------------------------------------------------------
17,282,872 684
- -----------------------------------------------------------------------------------------------------------------------------
Netherlands--3.8%
4,100 Akzo-Nobel NV 491,190 19
61,000 Elsevier NV CVA 925,553 37
80,875 ING Groep NV 2,411,595 95
39,000 KLM Royal Dutch Airlines 1,247,466 49
17,000 Polygram NV 1,003,879 40
15,500 Unilever NV CVA 2,242,853 89
77,000 Verenigd Bezit VNU 1,195,387 47
- -----------------------------------------------------------------------------------------------------------------------------
9,517,923 376
- -----------------------------------------------------------------------------------------------------------------------------
Australia--3.7%
283,050 Amcor Ltd. 1,927,004 76
524,329 Australian & New Zealand Banking Group 2,484,271 98
237,449 Boral Ltd. 616,702 24
193,721 Broken Hill Proprietary Ltd. 2,678,871 107
672,890 Goodman Fielder Ltd. 683,118 27
150,000 Pioneer International Ltd. 436,800 17
35,700 Qantas Airways (ADR) (Note 4) 604,101 24
- -----------------------------------------------------------------------------------------------------------------------------
9,430,867 373
- -----------------------------------------------------------------------------------------------------------------------------
Switzerland--3.4%
1,810 Ciba Geigy AG Regd 2,205,305 87
640 Financiere Richemont AS 1,012,431 40
2,750 Nestle SA Regd 3,139,678 125
2,000 Sulzer AG PC 1,198,426 47
5,400 Swiss Bank Corporation 1,065,641 42
- -----------------------------------------------------------------------------------------------------------------------------
8,621,481 341
- -----------------------------------------------------------------------------------------------------------------------------
Hong Kong--3.0%
300,000 Citic Pacific Ltd. 1,213,080 48
355,000 Hutchison Whampoa Ltd. 2,233,482 88
209,000 Sun Hung Kai Properties 2,112,802 84
245,000 Swire Pacific Class "A" 2,096,906 83
26,000 *Tingyi Holding Company 7,137 --
- -----------------------------------------------------------------------------------------------------------------------------
7,663,407 303
- -----------------------------------------------------------------------------------------------------------------------------
Germany--2.8%
2,700 Bayer AG 94,988 4
3,600 *Daimler-Benz AG (with Rights) 1,931,098 76
3,400 Degussa AG 1,153,705 46
20,000 Deutsche Bank AG 947,350 37
3,750 Karstadt AG 1,492,964 59
1,975 Mannesmann AG 682,493 27
50,000 *Metallgesellschaft AG 858,985 34
- -----------------------------------------------------------------------------------------------------------------------------
7,161,583 283
- -----------------------------------------------------------------------------------------------------------------------------
Sweden--2.6%
21,400 Astra AB Series "A" Free 944,951 37
76,100 Avesta Sheffield AB Free 716,786 28
81,000 BT Industries AB 1,245,124 49
15,000 Electrolux AB Free B 753,901 30
43,000 Nordbanken 829,479 33
160,000 Skandinaviska Enskilda Banken Series "A" 1,277,968 51
59,000 Stora Kopparbergs Berglsags Series "A" 778,009 31
- -----------------------------------------------------------------------------------------------------------------------------
6,546,218 259
- -----------------------------------------------------------------------------------------------------------------------------
Singapore--2.5%
188,500 Development Bank of Singapore 2,350,501 93
170,000 Far East-Levingston 939,454 37
283,000 Keppel Corporation 2,365,937 94
170,000 Straits Steamship Land Ltd. 568,480 22
- -----------------------------------------------------------------------------------------------------------------------------
6,224,372 246
- -----------------------------------------------------------------------------------------------------------------------------
Italy--2.3%
130,000 Arnaldo Mondadori Editore SPA 983,723 39
763,400 Banca Commercial Italiana 1,533,747 61
270,000 Fiat SPA 904,419 36
510,000 *Finanziaria Autogrill SPA 584,511 23
850,000 Telecom Italia SPA 1,826,990 72
- -----------------------------------------------------------------------------------------------------------------------------
5,833,390 231
- -----------------------------------------------------------------------------------------------------------------------------
Spain--2.2%
9,500 Acerinox SA Regd 989,190 39
35,900 Empresa Nacional De Electricidad SA (ADR) 2,248,237 89
47,500 Repsol SA (ADR) 1,650,625 65
42,000 Telefonica De Espana 773,098 31
- -----------------------------------------------------------------------------------------------------------------------------
5,661,150 224
- -----------------------------------------------------------------------------------------------------------------------------
Norway--2.1%
17,500 Christiania Bank OG 41,214 2
46,117 Hafslund Nyco Series "A" Free 333,647 13
17,800 Kvaerner AS Series "A" 752,132 30
49,117 *Nycomed AS Class "A" 706,926 28
31,000 Orkla AS Class "A" 1,631,995 65
129,000 Saga Petroleum Series "A" Free 1,896,377 74
- -----------------------------------------------------------------------------------------------------------------------------
5,362,291 212
- -----------------------------------------------------------------------------------------------------------------------------
Canada--1.9%
173,000 Canadian Pacific Ltd. 3,806,000 151
29,000 *Canwest Global Communications 790,250 31
17,200 Nova Corporation 155,548 6
- -----------------------------------------------------------------------------------------------------------------------------
4,751,798 188
- -----------------------------------------------------------------------------------------------------------------------------
Denmark--1.8%
86,500 Tele Danmark A/S Class "B" (ADR) 2,194,937 87
48,500 Unidanmark A/S Class "A" Regd 2,249,158 89
- -----------------------------------------------------------------------------------------------------------------------------
4,444,095 176
- -----------------------------------------------------------------------------------------------------------------------------
Finland--1.6%
495,000 Merita Bank Ltd. 1,033,461 41
160,000 Metsa-Serla OY Class "B" 1,136,480 44
36,000 Nokia Corporation Class "A" (ADR) 1,332,000 53
32,300 Valmet OY 545,760 22
- -----------------------------------------------------------------------------------------------------------------------------
4,047,701 160
- -----------------------------------------------------------------------------------------------------------------------------
Malaysia--1.3%
90,000 *Aokam Perdana BHD 150,759 6
290,000 Land & General Holdings BHD 714,734 28
120,000 Resorts World BHD 687,708 27
606,000 Sime Darby Berhad 1,675,711 67
- -----------------------------------------------------------------------------------------------------------------------------
3,228,912 128
- -----------------------------------------------------------------------------------------------------------------------------
Korea--1.0%
18,360 Daewoo Securities 427,779 17
48,000 Hanil Bank 478,709 18
32,000 Hanwha Chemical Corporation 345,178 14
8,000 Korea Electric Power 325,849 13
15,000 *Pohang Iron & Steel Co. Ltd. (ADR) 365,625 14
10,464 Shinhan Bank 190,917 8
6,000 Shinsegae Department Store 404,599 16
- -----------------------------------------------------------------------------------------------------------------------------
2,538,656 100
- -----------------------------------------------------------------------------------------------------------------------------
Argentina--.9%
21,000 *BAESA (ADR) 278,250 11
34,000 *Banco Frances Del Rio La Plata SA (ADR) 977,500 39
35,000 Telefonica De Argentina SA Class "B" (ADR) 1,036,875 41
- -----------------------------------------------------------------------------------------------------------------------------
2,292,625 91
- -----------------------------------------------------------------------------------------------------------------------------
New Zealand--.7%
162,368 Air New Zealand Class "B" 517,223 21
523,000 Carter Holt Harvey Ltd. 1,193,068 47
- -----------------------------------------------------------------------------------------------------------------------------
1,710,291 68
- -----------------------------------------------------------------------------------------------------------------------------
Chile--.6%
5,000 Compania De Telecomunicaciones De Chile SA (ADR) 490,625 19
31,000 Enersis SA (ADR) 961,000 38
- -----------------------------------------------------------------------------------------------------------------------------
1,451,625 57
- -----------------------------------------------------------------------------------------------------------------------------
Brazil--.5%
50,000 Aracruz Celulose SA (ADR) 475,000 19
60,000 Centrais Electricas Brasileiras (ADR) 830,622 33
- -----------------------------------------------------------------------------------------------------------------------------
1,305,622 52
- -----------------------------------------------------------------------------------------------------------------------------
Thailand--.5%
1,396,909 Bangkok Metropolitan Bank Public Company Ltd. Foreign Regd 989,850 39
25,000 Siam City Cement Co. Ltd. Foreign Regd 314,970 13
- -----------------------------------------------------------------------------------------------------------------------------
1,304,820 52
- -----------------------------------------------------------------------------------------------------------------------------
Indonesia--.5%
378,000 Jaya Real Property Foreign Regd 1,218,067 48
- -----------------------------------------------------------------------------------------------------------------------------
Mexico--.2%
96,803 ALFA SA Class "A" 441,456 17
19,400 Transportacion Maritima Mexicana SA Class "A" (ADR) 123,675 5
- -----------------------------------------------------------------------------------------------------------------------------
565,131 22
- -----------------------------------------------------------------------------------------------------------------------------
India--.2%
50,000 *Arvind Mills (GDR) (Note 4) 198,695 8
125,000 *Indo Gulf Fertilizers and Chemicals Corp. Ltd. (GDR) (Note 4) 176,500 7
10,000 Reliance Industries Ltd. (GDS) (Note 4) 130,000 5
- -----------------------------------------------------------------------------------------------------------------------------
505,195 20
- -----------------------------------------------------------------------------------------------------------------------------
Philippines--.2%
28,000 Philippine National Bank 467,569 18
- -----------------------------------------------------------------------------------------------------------------------------
Luxembourg--.2%
44,600 Quilmes Industrial (ADR) 457,150 18
- -----------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $200,812,780) 241,554,618 9,553
- -----------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.6%
Germany--.4%
10,600 Hornbach Holdings 912,268 36
- -----------------------------------------------------------------------------------------------------------------------------
Brazil--.2%
3,700,000 Petrobras 466,200 19
- -----------------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $1,123,311) 1,378,468 55
- -----------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--4.4%
$11,147M Swiss Bank Capital Markets, Inc., 5.48% 7/1/96 (collateralized by
U.S. Treasury Bonds, 8 7/8% , 2/15/2019, valued at $11,390M) (cost $11,147,000) 11,147,000 441
- -----------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $213,083,091) 100.5% 254,080,086 10,049
Excess of Liabilities Over Other Assets (.5) (1,230,710) (49)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $252,849,376 $10,000
=============================================================================================================================
*Non-income producing
<CAPTION>
At June 30, 1996, sector diversification of the portfolio was as follows:
- ----------------------------------------------------------------------------------
Percentage
Sector Diversification of Net Assets Value
- ----------------------------------------------------------------------------------
<S> <C> <C>
Banks 11.6% $29,443,446
Drugs 6.5 16,326,784
Food/Beverage/Tobacco 6.2 15,566,145
Energy Sources 5.3 13,374,373
Metals & Minerals 5.1 12,921,791
Telephone 4.8 12,166,954
Retail Trade 4.7 11,956,781
Real Estate Companies 4.4 11,181,501
Business Services 4.3 10,951,980
Insurance 4.2 10,531,872
Media 4.1 10,324,544
Paper/Forest Products 3.6 9,192,615
Transportation 3.5 8,815,384
Electric Utilities 2.9 7,318,676
Automotive 2.7 6,950,859
Machinery & Manufacturing 2.7 6,809,177
Travel & Leisure 2.5 6,222,956
Financial Services 2.4 5,976,582
Electrical Equipment 2.4 5,948,132
Chemicals 2.1 5,427,375
Household Products 2.0 5,027,948
Computers & Office Equipment 1.4 3,595,192
Entertainment Products 1.3 3,179,750
Electronics 1.2 3,150,251
Aerospace/Defense 1.1 2,795,625
Pipeline 0.8 2,041,664
Apparel/Textiles 0.5 1,390,048
Communication Equipment 0.5 1,332,000
Medical Products 0.5 1,198,426
Energy Services 0.4 939,454
Housing 0.3 753,901
Software & Services 0.1 120,900
Repurchase Agreement 4.4 11,147,000
- ----------------------------------------------------------------------------------
Total Value of Investments 100.5 254,080,086
Excess of Liabilities Over Other Assets (0.5) (1,230,710)
- ----------------------------------------------------------------------------------
Net Assets 100.00% $252,849,376
==================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1996
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities, at value (identified cost $213,083,091) (Note 1A) $254,080,086
Cash 79
Receivables:
Dividends and interest $1,162,515
Investment securities sold 776,058
Capital shares sold 425,063 2,363,636
------------
Other assets 20,335
------------
Total Assets 256,464,136
Liabilities
Payables:
Investment securities purchased 2,769,413
Capital shares redeemed 423,241
Accrued expenses 212,206
Accrued advisory fee 209,900
------------
Total Liabilities 3,614,760
------------
Net Assets (Note 6):
Class A (35,233,652 shares outstanding) 249,235,706
Class B (516,264 shares outstanding) 3,613,670 $252,849,376
------------ ============
Net Assets Consist of:
Capital paid in $195,093,690
Undistributed net investment income 1,291,257
Accumulated net realized gain on investments and
foreign currency transactions 15,471,578
Net unrealized appreciation of investments and
translation of assets in foreign currencies 40,992,851
------------
Total $252,849,376
============
Net asset value and redemption price per share--Class A $7.07
=====
Maximum offering price per share--Class A ($7.07/.9375)* $7.54
=====
Net asset value and offering price per share--Class B $7.00
=====
* 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.
Six Months Ended June 30, 1996
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Income:
Dividends (net of $274,534 foreign withholding taxes) $3,147,673
Interest 361,221
-----------
Total income 3,508,894
Expenses (Note 3):
Advisory fee $1,218,609
Distribution plan expenses--Class A 361,960
Distribution plan expenses--Class B 12,144
Shareholder servicing costs 356,407
Custodian fees and expenses 146,571
Reports and notices to shareholders 68,174
Professional fees 24,028
Other expenses 29,744
-----------
Total expenses 2,217,637
-----------
Net investment income 1,291,257
-----------
Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions (Note 2):
Net realized gains 18,867,762
Net unrealized depreciation of:
Investments (2,159,671)
Translation of assets in foreign currencies (10,627) (2,170,298)
----------- -----------
Net gain from investments and foreign currency 16,697,464
-----------
Net Increase in Net Assets Resulting from Operations $17,988,721
===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS GLOBAL FUND, INC.
- ---------------------------------------------------------------------------------------------------------------
Six Months Ende Year Ended
June 30, 1996 December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $1,291,257 $1,189,013
Net realized gain on investments and foreign currency transactions 18,867,762 13,092,919
Net unrealized appreciation (depreciation) of investments and
translation of assets in foreign currencies (2,170,298) 21,510,849
------------ ------------
Net increase in net assets resulting from operations 17,988,721 35,792,781
------------ ------------
Distributions to Shareholders from:
Net investment income--Class A -- (1,201,748)
Net investment income--Class B -- (5,314)
Net realized gains--Class A -- (9,215,464)
Net realized gains--Class B -- (52,445)
------------ ------------
Total distributions -- (10,474,971)
------------ ------------
Capital Share Transactions (a)
Class A:
Proceeds from shares sold 21,289,633 20,655,423
Value of distributions reinvested -- 8,448,358
Cost of shares redeemed (18,227,119) (39,890,811)
------------ ------------
3,062,514 (10,787,030)
------------ ------------
Class B:
Proceeds from shares sold 2,248,857 1,286,260
Value of distributions reinvested -- 57,759
Cost of shares redeemed (95,567) (83,283)
------------ ------------
2,153,290 1,260,736
------------ ------------
Net increase (decrease) from capital share transactions 5,215,804 (9,526,294)
------------ ------------
Net increase in net assets 23,204,525 15,791,516
Net Assets
Beginning of period 229,644,851 213,853,335
------------ ------------
End of period (including undistributed net investment income of
$1,291,257 and none, respectively) $252,849,376 $229,644,851
============ ============
(a)Capital Shares Issued and Redeemed
Class A:
Sold 3,161,108 3,322,118
Issued for distributions reinvested -- 1,229,747
Redeemed (2,656,327) (6,436,387)
------------ ------------
Net increase (decrease) in Class A shares outstanding 504,781 (1,884,522)
============ ============
Class B:
Sold 330,202 204,422
Issued for distributions reinvested -- 8,457
Redeemed (13,952) (12,865)
------------ ------------
Net increase in Class B shares outstanding 316,250 200,014
============ ============
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. The objective of the Fund is
primarily to seek long-term capital growth and secondarily to earn a
reasonable level of current income.
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 may also be
priced by a pricing service. The pricing service uses quotations
obtained from investment dealers or brokers for the particular
securities being evaluated, information with respect to market
transactions in comparable securities and other available information in
determining value. 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 June 30, 1996, the Fund had available capital loss
carryovers of $3,396,184, resulting from reorganizations in 1989. The
capital loss carryovers, as limited by the provisions of the 1986 Tax
Reform Act, expire as follows:
Amount of
Capital Loss
Year Carryover Expiring
- ------ ------------------
1996 $2,829,255
1997 566,929
----------
$3,396,184
==========
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 from the sales of foreign
currency and gains and losses between the ex-dividend 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 income tax regulations which may
differ from generally accepted accounting principles. These differences
are primarily due to differing treatments for foreign currency
transactions and capital loss carryforwards.
E. Repurchase Agreements -- Securities pledged as collateral for
repurchase agreements are held by the Fund's custodian until maturity of
the repurchase agreement. The agreements provide that the Fund will
receive, as collateral, securities with a market value which will at all
times be at least equal to 100% of the amount invested by the Fund.
F. 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 six months ended June 30, 1996,
purchases and sales of investment securities, excluding foreign
currencies and repurchase agreements, aggregated $89,977,820 and
$86,649,224, respectively.
At June 30, 1996, the cost of investments for federal income tax
purposes was $213,083,091. Accumulated net unrealized appreciation on
investments was $40,996,995, consisting of $46,355,393 gross unrealized
appreciation and $5,358,398 gross unrealized depreciation.
.
3. Advisory Fee and Other Transactions With Affiliates -- Certain
officers and directors of the Fund are officers and directors of its
investment adviser, First Investors Management Company, Inc. ("FIMCO"),
its underwriter, First Investors Corporation ("FIC"), its transfer
agent, Administrative Data Management Corp. ("ADM") and/or First
Financial Savings Bank, S.L.A. ("FFS"), custodian of the Fund's
Individual Retirement Accounts. Officers and directors of the Fund
received no remuneration from the Fund for serving in such capacities.
Their remuneration (together with certain other expenses of the Fund) is
paid by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO an
annual fee, payable monthly, at the rate of 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 six months
ended June 30, 1996, no reimbursement was required pursuant to these
provisions.
During the six months ended June 30, 1996, FIC, as underwriter, received
$822,777 in commissions after allowing $2,101 to other dealers.
Shareholder servicing costs included $205,962 in transfer agent fees
paid to ADM and $109,352 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.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940
Act, the Fund is authorized to pay FIC a fee equal to .30% of the
average net assets of the Class A shares and 1% of the average net
assets of the Class B shares on on an annualized basis each year,
payable monthly. The fee consists of a distribution fee and a service
fee. The service fee is paid for the ongoing servicing of clients who
are shareholders of the Fund.
4. Rule 144A Securities -- Under Rule 144A, certain restricted
securities are exempt from the registration requirements of the
Securities Act of 1933 and may only be resold to qualified institutional
investors. At June 30, 1996, the Fund held four 144A securities with an
aggregate value of $1,109,296 representing less than 1/2 of 1% of the
Fund's net assets. These securities are valued as set forth in Note 1A.
5. Restricted Securities -- On February 14, 1996, the Fund purchased
4,000 shares of common stock of Vodafone Group PLC at a cost of $14,462.
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 June 30, 1996, the value of the above restricted
stock was $14,916.
6. Capital -- The Fund sells two classes of shares, Class A and Class B,
each with a public offering price that reflects different sales charges
and expense levels. Class A shares are sold with an initial sales charge
of up to 6.25% of the amount invested and together with the Class B
shares are subject to 12b-1 fees as described in Note 3. Class B shares
are sold without an initial sales charge, but are generally subject to a
contingent deferred sales charge which declines in steps from 4% to 0%
during a six-year period. Class B shares automatically convert into
Class A shares after eight years. Realized and unrealized gains or
losses, investment income and expenses (other than 12b-1 fees and
certain other class expenses) are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
Of the 100,000,000 shares originally designated, the Fund has classified
65,000,000 shares as Class A and 35,000,000 shares as Class B.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS GLOBAL FUND, INC.
The following table sets forth the per share operating performance for
a share of capital stock outstanding, total return, ratios to average net
assets and other supplemental data for each period indicated.
- -----------------------------------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------- ------------------
1/1/96 Year Ended December 31 1/1/96 1/12/95++
to --------------------------------------------- to to
6/30/96 1995 1994 1993 1992 1991 6/30/96 12/31/95
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Data
Net Asset Value, Beginning of Period $6.57 $5.84 $6.27 $5.11 $5.41 $4.63 $6.54 $5.76
----- ----- ----- ----- ----- ----- ----- -----
Income from Investment Operations
Net investment income .036 .035 .028 .014 .039 .005 .017 .027
Net realized and unrealized gain (loss)
from investments and foreign currency
transactions .464 1.006 (.265) 1.160 (.298) .775 .443 1.056
----- ----- ----- ----- ----- ----- ----- -----
Total from Investment Operations .500 1.041 (.237) 1.174 (.259) .780 .460 1.083
----- ----- ----- ----- ----- ----- ----- -----
Less Distributions from:
Net investment income -- .036 .028 .014 -- -- -- .028
Net realized gain from investments -- .275 .165 -- -- -- -- .275
Capital surplus -- -- -- -- .041 -- -- --
----- ----- ----- ----- ----- ----- ----- -----
Total Distributions -- .311 .193 .014 .041 -- -- .303
----- ----- ----- ----- ----- ----- ----- -----
Net Asset Value, End of Period $7.07 $6.57 $5.84 $6.27 $5.11 $5.41 $7.00 $6.54
===== ===== ===== ===== ===== ===== ===== =====
Total Return(%)+ 7.61 17.83 (3.78) 22.97 (2.89) 14.56 7.03 18.80
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $249.20 $228.30 $213.90 $209.80 $181.00 $226.30 $3.60 $1.30
Ratio to Average Net Assets:(%)
Expenses 1.81(a) 1.83 1.84 1.87 1.83 1.95 2.52(a) 2.56(a)
Net investment income (loss) 1.07(a) .55 .45 .27 .73 .09 .36(a) (.19)(a)
Portfolio Turnover Rate (%) 38 47 56 41 45 64 38 47
+ Calculated without sales charge
++ Date shares first offered
(a) Annualized
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 June 30, 1996, and the related statement of
operations for the six months then ended, the statement of changes in
net assets for the six months ended June 30, 1996, and the year ended
December 31, 1995 and financial highlights for each of the periods
indicated thereon. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is
to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.
Our procedures included confirmation of securities owned as of June 30,
1996, 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. as of June 30,
1996, and the results of its operations, changes in its net assets and
financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
Directors
- ---------------------------------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- ---------------------------------
Glenn O. Head
President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
It is the Fund's practice to mail only one copy of its annual and semi-
annual reports to any address at which more than one shareholder with
the same last name has indicated that mail is to be delivered.
Additional copies of the reports will be mailed if requested by any
shareholder in writing or by calling 800-423-4026. The Fund will ensure
that separate reports are sent to any shareholder who subsequently
changes his or her mailing address.
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.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
This report is authorized for distribution only to existing
shareholders, and, if given to prospective shareholders, must be
accompanied or preceded by the Fund's prospectus.
