<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
World stock markets were mixed in 1997. Some regions of the world were strong,
while economic difficulties caused Japanese and other Asian markets to
underperform significantly. The United States, Europe and Latin America all
showed strong equity returns in 1997 as profit growth continued to positively
surprise investors and falling inflation kept interest rates under control.
During the latter part of 1997, the Southeast Asian currency crisis spread with
a global impact, resulting in a general flight to safety. The hardest hit
markets during the year were the emerging markets of Asia, including South
Korea, Malaysia, Indonesia, Thailand and the Philippines. Japan also experienced
a significant market decline. In Europe and the U.S., large capitalization
growth stocks were prized, while any stock with significant exposure to Asia
declined sharply.
Within this context, for the year ended December 31, 1997, First Investors
Global Fund returned 8.0% on a net asset value basis for Class A shares and 7.4%
for Class B shares compared to a return of 13.0% for the Lipper Mutual Fund
Global Average. For 1997, the Fund declared a capital gain distribution of 67.9
cents per share on both classes and a dividend from net investment income of 2.7
cents per Class A share. Despite a cautious view on Southeast Asia and the
resulting small weight in the Global Fund, security selection in Southeast Asia
negatively impacted performance relative to the Lipper competitive group. An
overweight position relative to the competition in Japan, particularly early in
the year, also hurt relative returns. In contrast, benefiting Fund returns were
investments in Europe and North America.
As of December 31, 1997, almost 44% of the Fund was invested in Europe. We view
the economic and stock market dynamics in Europe as among the most positive in
the world at this time. On a company by company basis, we find European
managements increasingly focused on the bottom line. Global competition and the
move to monetary union is accelerating this process, which in turn is increasing
merger and acquisition activity, thus supporting equity prices. While European
profits may be impacted somewhat by the Asian turmoil, the European economy has
less exposure to Southeast Asia than do most other major regions of the world.
Therefore, we believe that company profits in Europe should increase
significantly in 1998 as economic growth continues to improve and currencies
remain highly competitive. Meanwhile, tight fiscal policies and still relatively
high unemployment keep inflation and interest rates in check. Low inflation,
continued solid profits growth, monetary union and a new sense of shareholder
value will support the European stock markets in our view. The Fund is
participating in these positive stock market dynamics through investments in
some of the world's major drug companies, such as BAYER, RHONE-POULENC and ROCHE
HOLDINGS; financial services companies such as UNIDANMARK, ING GROEP and
NORDBANKEN; as well as consumer staple companies like NESTLE and BASS PLC.
Approximately a third of the Fund was invested in North America with a 31%
weight in the U.S. and the remainder in Canada. Given the global market turmoil,
we believe U.S. and Canadian equities will perform relatively well. Thus, we
anticipate decreasing the Fund's commitment to this region only very gradually
as hard evidence can be obtained that positive events are unfolding elsewhere.
Our major concern for the U.S. is the deteriorating profits outlook from a very
strong U.S. dollar, weak Asian demand and decelerating domestic growth. In the
near-term, however, we believe this will be offset by the positive fundamentals
of falling U.S. bond yields and low inflation. Investments in the U.S. have
focused on large capitalization stocks with reliable earnings derived from
strong management and well established products. AMERICAN EXPRESS, GENERAL
ELECTRIC, WAL-MART and HEWLETT-PACKARD are core holdings in the U.S.
1
<PAGE>
PORTFOLIO MANAGER'S LETTER (continued)
FIRST INVESTORS GLOBAL FUND, INC.
Investments in the Japanese stock market accounted for only 7% of the Fund's
assets. This low level of investment is reflective of our cautious view of the
economic health of Japan over the near-term. We do not yet see a catalyst for a
broad based rally in Japan. For that to happen, the government must put in place
meaningful measures to stimulate private consumption growth through a permanent
income tax cut. We also need to see an environment where further changes in both
the regulatory framework and company management attitudes allow for the
efficient use of capital through an unwinding of cross share holdings and a real
possibility of increased merger and acquisition activity. December's
announcement of plans to help recapitalize their financial system was a step
(albeit small) in the right direction. The Fund's strategy in Japan going
forward is two-fold: First, to add defensive stocks by adding particularly
well-positioned exporters such as ROHM, the electrical components maker and
SONY, the consumer electronics giant; and also domestic defensives such as NTT,
the giant telecommunications company and UNICHARM, a producer of baby-diapers
and other consumer products. Second, in recognition of the long-term opportunity
from some well-positioned domestic companies, the Fund intends to maintain a
reduced commitment to companies sensitive to the domestic economy. While better
growth will take some time to materialize, these securities are available at
extremely attractive valuations and have significant upside from here.
Investments in the remaining developed markets of Asia (Australia, New Zealand,
Hong Kong and Singapore) represented 5% of the Fund's assets.
We became increasingly conservative in our emerging markets stance during 1997
as there remain many real problems to be solved, bankruptcies and defaults to
come, difficulties in policy implementation and uncertain politics. At year-end,
emerging markets accounted for only 4% of the Fund, with less than one percent
in emerging Asian markets and the remainder in Latin America. Although there is
some further spill-over risk from Asian woes into Latin America, we see stronger
economic growth there, and few excesses, with quite reasonable valuations.
Looking forward, 1998 is likely to be a year with significant regional
divergences--as witnessed both in economic growth as well as in the strength of
each country's stock market. In this environment, we believe the Fund is
well-positioned to benefit from the positive European dynamics we see unfolding.
We have also increased the defensive posture of the Fund's investment in the
rest of the world. As always, 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. There are also currency risks as well as
country specific political and economic risks to investing internationally.
While there is a fair degree of diversification across markets and companies in
the Fund, diversification cannot totally protect from falling stock prices.
Investors should be aware of these risks and recognize that successful investing
generally requires a long-term commitment to the markets.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Trond Skramstad
Trond Skramstad
Portfolio Manager
January 30, 1998
2
<PAGE>
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.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL FUND MORGAN STANLEY WORLD INDEX
<S> <C> <C>
Jan-88 9,375 10,000
Dec-88 10,876 12,394
Dec-89 14,971 14,527
Dec-90 13,141 12,129
Dec-91 15,355 14,430
Dec-92 14,620 13,759
Dec-93 17,979 16,943
Dec-94 17,299 17,891
Dec-95 20,383 21,702
Dec-96 23,324 24,741
Dec-97 25,185 28,452
Average Annual Total Returns*
S.E.C.
Class A shares N.A.V. Only Standardized
One Year 7.98% 1.22%
Five Years 11.49% 10.06%
Ten Years 10.40% 9.68%
Class B shares
One Year 7.36% 3.36%
Since Inception
(1/12/95) 13.22% 12.42%
</TABLE>
THE GRAPH COMPARES A $10,000 INVESTMENT IN THE FIRST INVESTORS GLOBAL FUND, INC.
(CLASS A SHARES) BEGINNING 1/1/88 WITH A THEORETICAL INVESTMENT IN THE MORGAN
STANLEY WORLD INDEX. 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 60% OF THE
AGGREGATE MARKET VALUE OF THE COVERED STOCK EXCHANGES. IT IS NOT POSSIBLE TO
INVEST DIRECTLY IN THIS INDEX. IN ADDITION, THE INDEX DOES NOT TAKE INTO ACCOUNT
FEES AND EXPENSES. 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 12/31/97) 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" RETURNS ARE 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. MORGAN
STANLEY WORLD INDEX FIGURES FROM MORGAN STANLEY & COMPANY, INC. AND ALL OTHER
FIGURES FROM FIRST INVESTORS MANAGEMENT COMPANY, INC.
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--91.9%
UNITED STATES--30.8%
26,800 Abbott Laboratories $ 1,757,075 $ 61
63,000 American Express Company 5,622,750 195
24,495 American International Group, Inc. 2,663,831 93
80,000 *Analog Devices, Inc. 2,215,000 77
42,000 Boeing Company 2,055,375 71
67,500 *Cisco Systems, Inc. 3,763,125 131
19,850 Citicorp 2,509,784 87
14,500 Coca-Cola Company 966,062 34
26,125 CVS Corporation 1,673,633 58
37,480 Du Pont (E.I.) de Nemours & Company 2,251,142 78
26,450 Duke Energy Corporation 1,464,669 51
46,000 Exxon Corporation 2,814,625 98
33,500 Fannie Mae 1,911,594 66
30,000 First Data Corporation 877,500 31
40,000 Gannett Company, Inc. 2,472,500 86
56,400 General Electric Company 4,138,350 144
21,000 Gillette Company 2,109,187 73
30,000 Hertz Corporation - Class "A" 1,207,500 42
52,000 Hewlett-Packard Company 3,250,000 113
36,000 Home Depot, Inc. 2,119,500 74
23,840 Intel Corporation 1,674,760 58
43,500 Johnson & Johnson 2,865,563 100
25,225 Kimberly-Clark Corporation 1,243,908 43
14,583 Lucent Technologies, Inc. 1,164,817 41
53,900 McDonald's Corporation 2,573,725 89
12,400 *Microsoft Corporation 1,602,700 56
34,400 *Mirage Resorts, Inc. 782,600 27
36,500 *PeopleSoft, Inc. 1,423,500 49
16,400 Pfizer, Inc. 1,222,825 43
69,000 Pharmacia & Upjohn, Inc. 2,527,125 88
27,280 Procter & Gamble Company 2,177,285 76
32,300 SBC Communications, Inc. 2,365,975 82
30,400 Schlumberger, Ltd. 2,447,200 85
- ------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED STATES (continued)
44,850 Southwest Airlines Company $ 1,104,431 $ 38
53,000 State Street Corporation 3,083,938 107
51,300 Travelers Group, Inc. 2,763,788 96
35,000 Unocal Corporation 1,358,438 47
85,000 Wal-Mart Stores, Inc. 3,352,188 117
19,500 Walt Disney Company 1,931,719 67
25,000 Warner-Lambert Company 3,100,000 108
- ------------------------------------------------------------------------------------------
88,609,687 3,080
- ------------------------------------------------------------------------------------------
UNITED KINGDOM--11.8%
173,500 Associated British Foods PLC 1,487,329 52
117,800 Bank of Scotland 1,067,987 37
97,700 Bass PLC 1,504,668 52
370,400 *Billiton PLC 950,743 33
168,405 BOC Group PLC 2,788,938 97
148,300 British Petroleum PLC 1,952,103 68
399,000 BTR PLC 1,207,972 42
115,800 Burmah Castrol PLC 2,013,970 70
234,000 Carlton Communications PLC 1,801,894 63
581,069 Cookson Group PLC 1,869,125 65
140,000 Diageo PLC 1,286,530 45
74,500 HSBC Holdings PLC 1,841,186 64
187,000 Johnson Matthey PLC 1,676,904 58
188,345 PowerGen PLC 2,463,722 86
170,000 Rank Group PLC 975,511 34
120,800 Reckitt & Colman PLC 1,898,191 66
184,218 Royal & Sun Alliance Insurance Group PLC 1,848,978 64
131,000 Royal Bank of Scotland Group PLC 1,666,176 58
102,200 Zeneca Group PLC 3,593,567 125
- ------------------------------------------------------------------------------------------
33,895,494 1,179
- ------------------------------------------------------------------------------------------
JAPAN--7.3%
114,000 Aisin Seiki Company, Ltd. 1,183,651 41
93,000 Bank Tokyo - Mitsubishi, Ltd. 1,287,483 45
- ------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
JAPAN (continued)
76,000 Daiwa Securities Company, Ltd. $ 263,028 $ 9
72,000 Eisai Company, Ltd. 1,101,974 38
32,000 Exedy Corporation 243,405 8
37,000 Fuji Machine Manufacturing Company 896,392 31
38,000 Fujisawa Pharmacy Company, Ltd. 333,176 12
18,000 Fukuda Denshi, Ltd. 184,124 6
83,000 Hitachi Company, Ltd. 593,666 21
178,000 JGC Corporation 376,470 13
20,000 Mabuchi Motor Company, Ltd. 1,019,834 35
32,000 Maruichi Steel Tube, Ltd. 391,318 14
27,200 Matsumotokiyoshi Company, Ltd. 1,045,984 36
88,000 Matsushita Electric Industrial Company, Ltd. 1,292,711 45
434,000 *Mazda Motor Corporation 1,034,743 36
17,100 Meiwa Estate Company, Ltd. 128,754 4
30,000 Murata Manufacturing Company, Ltd. 756,798 26
46,000 Namco, Ltd. 1,340,859 47
22,000 Nomura Securities Company, Ltd. 294,413 10
209,000 Okumura Corporation 498,298 17
8,900 Otsuka Kagu, Ltd. 321,716 11
226,000 Sakura Bank, Ltd. 648,326 23
40,000 Sanwa Bank, Ltd. 406,084 14
1,100 Sawako Corporation 7,276 --
33,600 Shimachu 529,758 18
9,000 Sony Corporation 802,946 28
48,500 Sony Music Entertainment, Inc. 1,790,474 62
20,000 Square Company, Ltd. 556,832 19
258,000 Sumitomo Rubber Industries, Inc. 1,093,327 38
83,000 Toyo Ink Manufacturing Company, Ltd. 146,819 5
83,000 Yamato Kogyo Company, Ltd. 501,104 17
- ------------------------------------------------------------------------------------------
21,071,743 729
- ------------------------------------------------------------------------------------------
FRANCE--6.5%
44,500 Assurances Generales de France 2,358,936 82
31,170 Banque Nationale de Paris 1,657,496 58
- ------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
FRANCE (continued)
9,036 Compagnie de Saint Gobain $ 1,284,234 $ 45
13,010 Credit Commercial de France 892,079 31
29,908 Groupe Havas SA 2,152,667 75
10,050 Peugeot SA 1,267,972 44
73,122 Rhone-Poulenc SA - Series "A" 3,276,948 114
12,047 Societe Generale Paris 1,642,082 57
19,950 Societe Nationale Elf Aquitaine SA 2,321,362 81
16,367 Total SA - Class "B" 1,782,019 62
- ------------------------------------------------------------------------------------------
18,635,795 649
- ------------------------------------------------------------------------------------------
GERMANY--5.2%
98,800 Bayer AG 3,667,812 128
26,000 Degussa AG 1,286,953 45
47,220 Deutsche Lufthansa AG 887,651 31
6,070 Karstadt AG 2,099,805 73
9,110 MAN AG 2,632,109 92
4,285 Mannesmann AG 2,166,280 75
122,300 *Metallgesellschaft AG 2,237,796 78
- ------------------------------------------------------------------------------------------
14,978,406 522
- ------------------------------------------------------------------------------------------
CANADA--3.5%
44,500 Alcan Aluminium, Ltd. 1,225,210 43
68,300 Canadian Imperial Bank of Commerce 2,123,904 74
55,700 Canadian National Railway Company 2,631,825 91
98,500 Canadian Pacific, Ltd. 2,684,125 93
71,900 Canwest Global Communications Corporation - Class
"A" 1,294,200 45
- ------------------------------------------------------------------------------------------
9,959,264 346
- ------------------------------------------------------------------------------------------
SWITZERLAND--3.4%
240 *Ciba Specialty Chemicals Holding, Inc. 28,631 1
2,390 Holderbank Financiere Glarus AG 1,953,226 68
2,216 Nestle AG Regd 3,325,783 116
460 Roche Holdings AG - Genusscheine 4,574,608 159
- ------------------------------------------------------------------------------------------
9,882,248 344
- ------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS--3.0%
12,040 Akzo-Nobel NV $ 2,076,324 $ 72
94,769 ING Groep NV 3,992,286 139
40,000 PolyGram NV 1,913,944 67
9,500 Unilever NV-CVA 585,775 20
- ------------------------------------------------------------------------------------------
8,568,329 298
- ------------------------------------------------------------------------------------------
SWEDEN--2.7%
36,070 ForeningsSparbanken AB - Class "A" 820,560 29
743,400 *Nordbanken Holding AB 4,206,826 146
77,000 Pharmacia & Upjohn, Inc. 2,833,746 99
- ------------------------------------------------------------------------------------------
7,861,132 274
- ------------------------------------------------------------------------------------------
ITALY--2.4%
70,300 Arnaldo Mondadori Editore SpA 552,699 19
88,600 Istituto Bancario San Paolo Di Torino 846,910 29
846,222 Telecom Italia SpA 5,408,543 188
- ------------------------------------------------------------------------------------------
6,808,152 236
- ------------------------------------------------------------------------------------------
AUSTRALIA--1.9%
208,050 Amcor, Ltd. 915,004 32
160,000 Australian & New Zealand Banking Group, Ltd. 1,057,086 37
184,338 Boral, Ltd. 466,006 16
140,156 Broken Hill Proprietary, Ltd. 1,301,320 45
545,545 Goodman Fielder, Ltd. 867,307 30
97,904 ICI Australia, Ltd. 685,749 24
54,000 News Corporation, Ltd. 298,010 10
- ------------------------------------------------------------------------------------------
5,590,482 194
- ------------------------------------------------------------------------------------------
FINLAND--1.9%
70,100 Kesko 1,109,655 39
160,000 Metsa-Serla OY - Class "B" 1,248,736 43
31,300 Nokia Corporation - Class "A" (ADR) 2,191,000 76
61,800 Rauma OY 964,649 34
- ------------------------------------------------------------------------------------------
5,514,040 192
- ------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
DENMARK--1.8%
69,300 Unidanmark A/S - Class "A" Regd $ 5,090,813 $ 177
- ------------------------------------------------------------------------------------------
SPAIN--1.4%
27,600 Banco Popular Espanol SA 1,928,544 67
30,600 Endesa SA 543,073 19
47,800 Endesa SA (ADR) 869,362 30
7,800 Telefonica de Espana (ADR) 710,287 25
- ------------------------------------------------------------------------------------------
4,051,266 141
- ------------------------------------------------------------------------------------------
HONG KONG--1.4%
235,000 Hutchison Whampoa, Ltd. 1,473,990 51
83,000 Hysan Development Company, Ltd. 165,494 6
238,000 New World Development Company, Ltd. 823,194 29
146,400 Sun Hung Kai Properties, Ltd. 1,020,291 35
3,630,000 Tingyi Holding Company 472,989 16
- ------------------------------------------------------------------------------------------
3,955,958 137
- ------------------------------------------------------------------------------------------
IRELAND--1.2%
85,046 Allied Irish Banks PLC 812,606 28
990,289 Jefferson Smurfit Group PLC 2,753,697 96
- ------------------------------------------------------------------------------------------
3,566,303 124
- ------------------------------------------------------------------------------------------
SINGAPORE--.9%
285,750 Keppel Corporation, Ltd. 820,817 29
270,000 Keppel Fels, Ltd. 753,138 26
182,000 Keppel Land, Ltd. 250,596 9
210,000 Overseas Union Bank, Ltd. Foreign Redg 803,880 28
- ------------------------------------------------------------------------------------------
2,628,431 92
- ------------------------------------------------------------------------------------------
BRAZIL--.9%
30,000 Centrais Electricas Brasileiras SA - Electrobras
(ADR) 745,953 26
17,435,000 Telecomunicacoes Brasileiras SA - Telebras 1,772,965 62
- ------------------------------------------------------------------------------------------
2,518,918 88
- ------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NEW ZEALAND--.7%
500,224 Brierley Investments, Ltd. $ 357,260 $ 12
390,000 Carter Holt Harvey, Ltd. 602,355 21
27,450 Telecom Corporation of New Zealand, Ltd. (ADR) 1,063,687 37
- ------------------------------------------------------------------------------------------
2,023,302 70
- ------------------------------------------------------------------------------------------
NORWAY--.7%
109,000 Saga Petroleum ASA - Series "A" 1,877,732 65
- ------------------------------------------------------------------------------------------
MEXICO--.6%
41,400 *Grupo Televisa SA 805,731 28
215,000 Kimberly Clark de Mexico - Class "A" 1,018,734 35
- ------------------------------------------------------------------------------------------
1,824,465 63
- ------------------------------------------------------------------------------------------
ARGENTINA--.6%
123,700 Banco de Galicia Buenos Aires SA - Class "B" 791,816 28
24,900 Telefonica de Argentina SA - Class "B" (ADR) 927,525 32
- ------------------------------------------------------------------------------------------
1,719,341 60
- ------------------------------------------------------------------------------------------
AUSTRIA--.5%
10,000 OMV AG 1,383,306 48
- ------------------------------------------------------------------------------------------
CHILE--.2%
28,800 Embotelladora Andina SA - Series "B" (ADR) 559,800 19
- ------------------------------------------------------------------------------------------
PHILIPPINES--.2%
64,800 Metropolitan Bank & Trust Company 442,565 15
- ------------------------------------------------------------------------------------------
CHINA--.1%
33,100 *China Southern Airlines Company, Ltd. - Class
"H" (ADR) 436,506 15
- ------------------------------------------------------------------------------------------
INDIA--.1%
15,600 Ranbaxy Laboratories, Ltd. (GDR) 399,750 14
- ------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MALAYSIA--.1%
197,000 Renong BHD $ 91,093 $ 3
100,500 Sime Darby Berhad 96,560 3
- ------------------------------------------------------------------------------------------
187,653 6
- ------------------------------------------------------------------------------------------
THAILAND--.1%
402,547 Land & House Public Company, Ltd. Foreign Regd 80,228 3
23,943 Siam City Cement Public Company, Ltd. Foreign
Regd 24,862 1
5,800 Siam Commercial Bank Public Company, Ltd. Foreign
Regd 6,625 --
30,500 Thai Farmers Bank Public Company, Ltd. Foreign
Regd 55,425 2
- ------------------------------------------------------------------------------------------
167,140 6
- ------------------------------------------------------------------------------------------
INDONESIA--.0%
816,000 PT Kalbe Farma 144,758 5
- ------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $225,293,465) 264,352,779 9,188
- ------------------------------------------------------------------------------------------
PREFERRED STOCKS--2.5%
BRAZIL--1.1%
27,300 Aracruz Celulose SA - Class "B" (ADR) 392,437 13
15,229,000 Companhia Energetic de Minas Gerais (CEMIG) 660,939 23
462,900 *Companhia Riograndense de Telecomunicacoes -
Class "A" 570,321 20
4,190,000 Petroleo Brasileiro SA - Petrobras 979,622 34
2,257,000 Telecomunicacoes de Sao Paulo SA 600,588 21
23,000 *Vale Do Rio Doce - Class "B" -- --
- ------------------------------------------------------------------------------------------
3,203,907 111
- ------------------------------------------------------------------------------------------
DENMARK--1.0%
60,800 *ProSieben Media AG 2,789,698 97
- ------------------------------------------------------------------------------------------
GERMANY--.4%
17,530 Hornbach Holdings AG 1,208,935 42
- ------------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $7,450,920) 7,202,540 250
- ------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENT--6.3%
$18,300M Lehman Brothers, Inc., 6.57%, 1/2/98,
(collateralized by U.S. Treasury Strip, due
8/15/07, valued at $19,173,897)
(cost $18,300,000) $ 18,300,000 $ 636
- ------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $251,044,385) 100.7% 289,855,319 10,074
EXCESS OF LIABILITIES OVER OTHER ASSETS (.7) (2,139,235) (74)
- ------------------------------------------------------------------------------------------
NET ASSETS 100.0% $287,716,084 $10,000
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
12
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
Sector diversification of the portfolio was as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PERCENTAGE
SECTOR OF NET ASSETS VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Banks.................................. 12.4% $ 35,690,181
Drugs.................................. 10.1 29,104,776
Media.................................. 5.8 16,613,650
Energy Sources......................... 5.2 15,099,871
Insurance.............................. 4.7 13,627,819
Retail Trade........................... 4.6 13,139,458
Telephone.............................. 4.5 12,819,303
Food/Beverage/Tobacco.................. 3.9 11,377,959
Machinery & Manufacturing.............. 3.5 10,105,198
Metals & Minerals...................... 3.3 9,383,609
Chemicals.............................. 3.1 8,970,125
Financial Services..................... 2.9 8,449,045
Household Products..................... 2.9 8,447,305
Travel & Leisure....................... 2.8 8,101,283
Communication Equipment................ 2.5 7,118,942
Electric Utilities..................... 2.3 6,747,718
Electronics............................ 2.3 6,532,935
Transportation......................... 2.1 6,136,767
Paper/Forest Products.................. 2.1 5,912,229
Electrical Equipment................... 1.8 5,158,184
Computers & Office Equipment........... 1.8 5,119,125
Automotive............................. 1.7 4,823,098
Software Services...................... 1.5 4,460,532
Business Services...................... 1.1 3,245,613
Energy Services........................ 1.1 3,200,338
Entertainment Products................. .9 2,593,420
Real Estate Companies.................. .9 2,468,557
Aerospace/Defense...................... .7 2,055,375
Medical Products....................... .7 1,941,199
Pipeline............................... .5 1,383,306
Healthcare............................. .4 1,222,825
Housing................................ .2 505,574
Repurchase Agreement................... 6.4 18,300,000
- --------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS 100.7 289,855,319
EXCESS OF LIABILITIES OVER OTHER ASSETS (.7) (2,139,235)
- --------------------------------------------------------------------
NET ASSETS 100.0% $287,716,084
- --------------------------------------------------------------------
- --------------------------------------------------------------------
</TABLE>
See notes to financial statements
13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS GLOBAL FUND, INC.
December 31, 1997
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at value (identified cost
$251,044,385) (Note 1A)................................... $289,855,319
Cash........................................................ 118,713
Receivables:
Investment securities sold................................ 1,594,905
Dividends and interest.................................... 568,693
Capital shares sold....................................... 286,080
Other assets................................................ 20,335
------------
Total Assets................................................ 292,444,045
LIABILITIES
Payables:
Investment securities purchased........................... $ 3,143,437
Dividend payable.......................................... 540,447
Capital shares redeemed................................... 538,262
Forward currency contracts (Note 4)....................... 17,209
Accrued advisory fee........................................ 250,481
Accrued expenses............................................ 238,125
------------
Total Liabilities........................................... 4,727,961
------------
NET ASSETS (Note 5):
Class A (43,220,258 shares outstanding)................... 277,218,811
Class B (1,664,281 shares outstanding).................... 10,497,273 $287,716,084
------------
------------
------------
NET ASSETS CONSIST OF:
Capital paid in............................................. $254,423,430
Accumulated net investment deficit.......................... (92,005)
Accumulated net realized loss on investments and foreign
currency transactions..................................... (5,414,909)
Net unrealized appreciation of investments and foreign
currency transactions..................................... 38,799,568
------------
Total....................................................... $287,716,084
------------
------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE - CLASS A.... $6.41
------
------
MAXIMUM OFFERING PRICE PER SHARE - CLASS A ($6.41/.9375)*... $6.84
------
------
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B (Note
5)........................................................ $6.31
------
------
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
14
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS GLOBAL FUND, INC.
Year Ended December 31, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends (net of $204,776 foreign withholding taxes)..... $ 5,981,344
Interest.................................................. 453,087
-----------
Total income................................................ 6,434,431
Expenses (Notes 1 and 3):
Advisory fee.............................................. $ 2,883,822
Shareholder servicing costs............................... 950,417
Distribution plan expenses - Class A...................... 840,610
Distribution plan expenses - Class B...................... 81,788
Custodian fees and expenses............................... 365,174
Professional fees......................................... 53,813
Reports and notices to shareholders....................... 51,115
Other expenses............................................ 79,238
-----------
Total expenses.............................................. 5,305,977
-----------
Net investment income....................................... 1,128,454
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS (Note 2):
Net realized gain (loss) from:
Investments............................................... 22,086,733
Foreign currency transactions............................. (147,880) 21,938,853
-----------
Net unrealized depreciation of:
Investments............................................... (1,712,389)
Foreign currency transactions............................. (11,342) (1,723,731)
-----------
-----------
Net gain from investments and foreign currencies............ 20,215,122
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $21,343,576
-----------
-----------
</TABLE>
See notes to financial statements
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS GLOBAL FUND, INC.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31 1997 1996
- ------------------------------------------------------------ ------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income..................................... $ 1,128,454 $ 1,218,304
Net realized gain on investments and foreign currency
transactions............................................ 21,938,853 35,356,971
Net unrealized depreciation of investments and foreign
currency transactions................................... (1,723,731) (2,639,850)
------------ ------------
Net increase in net assets resulting from operations.... 21,343,576 33,935,425
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A........................... (1,053,231) (1,513,003)
Net investment income - Class B........................... -- (12,327)
Net realized gains - Class A.............................. (26,486,799) (31,032,925)
Net realized gains - Class B.............................. (1,019,942) (636,439)
------------ ------------
Total distributions..................................... (28,559,972) (33,194,694)
------------ ------------
CAPITAL SHARE TRANSACTIONS (a)
Class A:
Proceeds from shares sold................................. 35,195,348 36,352,940
Value of distributions reinvested......................... 27,005,495 31,943,902
Cost of shares redeemed................................... (41,510,319) (34,487,088)
------------ ------------
20,690,524 33,809,754
------------ ------------
Class B:
Proceeds from shares sold................................. 5,760,337 4,040,306
Value of distributions reinvested......................... 1,014,030 645,589
Cost of shares redeemed................................... (964,600) (449,042)
------------ ------------
5,809,767 4,236,853
------------ ------------
Net increase from capital share transactions.............. 26,500,291 38,046,607
------------ ------------
Net increase in net assets.............................. 19,283,895 38,787,338
NET ASSETS
Beginning of year......................................... 268,432,189 229,644,851
------------ ------------
End of year (including accumulated net investment deficit
of $92,005 and $15,418, respectively)................... $287,716,084 $268,432,189
------------ ------------
------------ ------------
(a)CAPITAL SHARES ISSUED AND REDEEMED
Class A:
Sold...................................................... 4,989,223 5,281,102
Issued for distributions reinvested....................... 4,213,026 4,847,330
Redeemed.................................................. (5,897,153) (4,942,141)
------------ ------------
Net increase in Class A capital shares outstanding........ 3,305,096 5,186,291
------------ ------------
------------ ------------
Class B:
Sold...................................................... 820,925 585,922
Issued for distributions reinvested....................... 160,702 99,169
Redeemed.................................................. (138,029) (64,422)
------------ ------------
Net increase in Class B capital shares outstanding........ 843,598 620,669
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements
16
<PAGE>
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 an exchange or the Nasdaq
Stock Market is valued at its last sale price on the exchange where the security
is principally traded 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 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 the 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 to relieve it from all, or substantially all, such taxes.
C. Foreign Currency Translations--The books and records are maintained in U.S.
dollars. Portfolio securities and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars at the date of valuation.
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) on foreign currency transactions
includes gains and losses from the sales of foreign currency and gains and
losses on accrued foreign dividends and related withholding taxes.
D. Distributions to Shareholders--Distributions to shareholders from net
investment income and net realized gains are generally 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
post-October capital losses.
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.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS GLOBAL FUND, INC.
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 expenses during the reporting period. Actual results could differ
from those estimates.
G. Other--Security transactions are accounted for on the date the securities are
purchased or sold. Cost is determined, and gains and losses are based, on the
identified cost basis for both financial statement and federal income tax
purposes. Dividend income is recorded on the ex-dividend date. Interest income
and estimated expenses are accrued daily.
2. SECURITIES TRANSACTIONS--For the year ended December 31, 1997, purchases and
sales of investment securities, excluding foreign currencies and repurchase
agreements, aggregated $192,000,629 and $204,539,938, respectively.
At December 31, 1997, the cost of investments for federal income tax purposes
was $251,044,385. Accumulated net unrealized appreciation on investments was
$38,810,934 consisting of $57,650,910 gross unrealized appreciation and
$18,839,976 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) was paid by FIMCO or FIC. Effective January 1, 1998,
independent directors will be remunerated by the Fund.
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.
During the year ended December 31, 1997, FIC, as underwriter, received
$1,410,014 in commissions after allowing $5,856 to other dealers. Shareholder
servicing costs included $631,029 in transfer agent fees paid to ADM and
$224,900 in IRA custodian fees paid to FFS.
Wellington Management Company serves as investment subadviser to the Fund. The
subadviser is paid by FIMCO and not by the Fund.
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, the
Fund is authorized to pay FIC a fee equal to .30% of the average net assets of
the Class A shares and 1% of the average net assets of the Class B shares on an
annualized basis each year, payable monthly. The fee consists of a distribution
fee and a service fee. The service fee is paid for the ongoing servicing of
clients who are shareholders of the Fund.
18
<PAGE>
4. FORWARD CURRENCY CONTRACTS--A forward currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future date.
When the Fund purchases or sells foreign securities it customarily enters into a
forward currency contract to minimize foreign exchange risk between the trade
date and the settlement date of such transactions. The Fund could be exposed to
risk if counterparties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably. The
following forward currency contracts were outstanding at December 31, 1997:
<TABLE>
<CAPTION>
Unrealized
Contracts to Buy Foreign Currency In Exchange for Settlement Date Gain (Loss)
- ------------------------------------ ---------------- --------------- ----------------
<C> <S> <C> <C> <C>
635,507 Australian Dollar U.S.$ 413,944 1/2/98 U.S.$ (3,071)
524,261 Deutsche Mark 291,573 1/2/98 (4,053)
42,914,244 Spanish Peseta 281,560 1/2/98 (4,363)
137,591 Australian Dollar 89,650 1/5/98 (954)
8,709,208 Japanese Yen 66,983 1/5/98 45
1,172,228 Netherlands Guilder 578,243 1/6/98 (3,076)
516,568 Deutsche Mark 287,294 1/6/98 (1,517)
2,053,130 Japanese Yen 15,791 1/6/98 (66)
744,919 Japanese Yen 5,728 1/7/98 --
1,730,847 French Franc 287,713 1/30/98 (1,963)
---------------- ----------------
U.S.$ 2,318,479 U.S.$ (19,018)
---------------- ----------------
<CAPTION>
Contracts to Sell Foreign Currency
- ------------------------------------
<C> <S> <C> <C> <C>
146,615 Malaysian Ringit U.S.$ 37,667 1/2/98 U.S.$ 494
60,786 Hong Kong Dollar 7,845 1/2/98 (2)
674,520 Hong Kong Dollar 87,054 1/5/98 (8)
139,931 Singapore Dollar 83,048 1/5/98 743
153,675 Malaysian Ringit 39,481 1/5/98 (37)
130,178 Singapore Dollar 77,260 1/6/98 296
114,688 New Zealand Dollar 66,594 1/6/98 109
87,564 Australian Dollar 57,054 1/6/98 257
153,992 Malaysian Ringit 39,563 1/6/98 (57)
178,841 Singapore Dollar 106,141 1/7/98 (10)
150,412 Australian Dollar 98,004 1/7/98 80
309,353 Malaysian Ringit 79,477 1/7/98 48
109,715 New Zealand Dollar 63,707 1/7/98 126
110,877 New Zealand Dollar 64,381 1/8/98 (206)
9,077 British Pound 14,935 1/8/98 (24)
---------------- ----------------
U.S.$ 922,211 U.S.$ 1,809
---------------- ----------------
Unrealized Loss on Forward Currency Contracts U.S.$ (17,209)
----------------
----------------
</TABLE>
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS GLOBAL FUND, INC.
5. 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
distribution plan fees as described in Note 3. Class B shares are sold without
an initial sales charge, but are generally subject to a contingent deferred
sales charge which declines in steps from 4% to 0% over a six-year period. Class
B shares automatically convert into Class A shares after eight years. Realized
and unrealized gains or losses, investment income and expenses (other than
distribution plan fees) 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 authorized, the Fund has designated 65,000,000 shares as Class A and
35,000,000 shares as Class B.
20
<PAGE>
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 year indicated.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------- ----------------------
Year Ended December 31 1997 1996 1995 1994 1993 1997 1996 1995*
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value, Beginning of Year..... $ 6.59 $ 6.57 $ 5.84 $ 6.27 $ 5.11 $ 6.51 $ 6.54 $ 5.76
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations
Net investment income (loss)......... .029 .036 .035 .028 .014 (.007) (.007) .027
Net realized and unrealized gain
(loss) from investments and foreign
currency
transactions....................... .497 .912 1.006 (.265) 1.160 .486 .879 1.056
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations... .526 .948 1.041 (.237) 1.174 .479 .872 1.083
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions from:
Net investment income................ .027 .043 .036 .028 .014 -- .017 .028
Net realized gain from investments... .679 .885 .275 .165 -- .679 .885 .275
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions................ .706 .928 .311 .193 .014 .679 .902 .303
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Year........... $ 6.41 $ 6.59 $ 6.57 $ 5.84 $ 6.27 $ 6.31 $ 6.51 $ 6.54
------ ------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------ ------
TOTAL RETURN (%)+...................... 7.98 14.43 17.83 (3.78) 22.97 7.36 13.33 18.80
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Year (in
millions)............................ $277 $263 $228 $214 $210 $10 $5 $1
Ratio to Average Net Assets: (%)
Expenses............................. 1.82 1.83 1.83 1.84 1.87 2.52 2.54 2.56(a)
Net investment income (loss)......... .41 .50 .55 .45 .27 (.29) (.21) (.19)(a)
Portfolio Turnover Rate (%)............ 70 73 47 56 41 70 73 47
Average Commission Rate
(per share of security)++............ $.0035 $.0094 -- -- -- $.0035 $.0094 --
</TABLE>
* From January 12, 1995 (date Class B shares first offered) to December 31,
1995.
(a) Annualized
+ Calculated without sales charge.
++ Average commission rate as required by amended disclosure requirements
effective in 1996.
See notes to financial statements
21
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of
Directors of First Investors Global Fund, Inc.
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments of First Investors Global Fund, Inc., as of
December 31, 1997, 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 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
December 31, 1997, 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, 1997, 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
January 30, 1998
22
<PAGE>
FIRST INVESTORS GLOBAL FUND, INC.
DIRECTORS
- -------------------------------------------
JAMES J. COY (Emeritus)
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
REX R. REED
HERBERT RUBINSTEIN
NANCY S. SCHAENEN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- -------------------------------------------
GLENN O. HEAD
President
CONCETTA DURSO
Vice President and Secretary
JOSEPH I. BENEDEK
Treasurer
CAROL LERNER BROWN
Assistant Secretary
GREGORY R. KINGSTON
Assistant Treasurer
MARK S. SPENCER
Assistant Treasurer
SHAREHOLDER INFORMATION
- -------------------------------------------
INVESTMENT ADVISER
FIRST INVESTORS
MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
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
Eight Penn Center Plaza
Philadelphia, PA 19103
It is the Fund's practice to mail only one copy of its annual and semi-annual
reports to any address at which more than one shareholder with the same last
name has indicated that mail is to be delivered. Additional copies of the
reports will be mailed if requested by any shareholder in writing or by calling
800-423-4026. The Fund will ensure that separate reports are sent to any
shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders, and,
if given to prospective shareholders, must be accompanied or preceded by the
Fund's prospectus.
23
<PAGE>
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
FIIS-077
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" appear in a box to the
right of a circle containing the words "MAILED FROM ZIP CODE 11201" which
appears to the right of the above language in the printed piece.
Vertically reading from bottom to top in the center of the page the words "FIRST
INVESTORS" appear in the printed piece.
FIRST
INVESTORS
GLOBAL
FUND, INC.
ANNUAL
REPORT
DECEMBER 31, 1997
