<PAGE>
CHIEF INVESTMENT OFFICER'S MARKET OVERVIEW LETTER
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
We are pleased to present the semi-annual report for First Investors Global
Fund, Inc. for the six months ended June 30, 1998. Although both the bond and
stock markets suffered setbacks at times during the first six months of the
year, the combination of moderate growth, low inflation, and respectable
corporate earnings reports helped provide a positive environment for investors
in most types of funds.
The U.S. economy remained strong for the first half of 1998, with sustained,
moderate growth and low levels of inflation and unemployment. Inflation remained
low, as the Consumer Price Index rose just 1.7% for the twelve months ended June
30. The unemployment rate continued to be low, at 4.5% as of June 30, 1998.
Consumer confidence remained high, encouraged by the robust domestic economy and
rising income levels.
In general, our long-term outlook for the financial markets continues to be
positive. The economy appears to be growing moderately, inflation remains
subdued and the Federal Reserve appears unlikely to tolerate unsustainably fast
economic growth. In regard to the stock market, we are encouraged by the
underlying fundamentals of the U.S. economy. However, we are cautioned by a
number of situations, including the struggles in Asia. We are concerned about
the effect this region's difficulties may have on U.S. growth and corporate
earnings. We are also concerned about the relative lack of pricing power and the
prospects that the lofty level of gains posted year-to-date can continue into
the second half of 1998.
With regard to the bond market, interest rates continue to remain in a tight
range; we believe the Federal Reserve is likely to maintain current interest
rates. Continued weak Asian markets, low inflation in the U.S. and the Federal
budget surplus should support an environment of low interest rates and high bond
prices. However, the continued strength of the U.S. economy could result in
higher interest rates and inflation, notwithstanding Asia. In this event, bond
fund values would decline.
Thank you for your continued confidence in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Clark D. Wagner
Chief Investment Officer
First Investors Management Company, Inc.
July 31, 1998
1
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1998
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--93.2%
UNITED STATES--33.0%
53,600 Abbott Laboratories $ 2,190,900 $ 67
47,750 American Express Company 5,443,500 166
24,495 American International Group, Inc. 3,576,270 109
63,250 *Analog Devices, Inc. 1,553,578 48
59,500 *Cisco Systems, Inc. 5,477,719 167
9,950 Citicorp 1,485,038 45
33,450 Coca-Cola Company 2,859,975 87
52,250 CVS Corporation 2,034,484 62
26,450 Duke Energy Corporation 1,567,163 48
46,000 Exxon Corporation 3,280,375 100
48,500 Fannie Mae 2,946,375 90
30,000 First Data Corporation 999,375 31
40,000 Gannett Company, Inc. 2,842,500 87
56,400 General Electric Company 5,132,400 157
42,000 Gillette Company 2,380,875 73
30,000 Hertz Corporation - Class "A" 1,329,375 41
45,250 Hewlett-Packard Company 2,709,344 83
36,000 Home Depot, Inc. 2,990,250 91
23,840 Intel Corporation 1,767,140 54
43,500 Johnson & Johnson 3,208,125 98
25,225 Kimberly-Clark Corporation 1,157,197 35
29,166 Lucent Technologies, Inc. 2,426,247 74
53,900 McDonald's Corporation 3,719,100 114
39,000 MCI Communications Corporation 2,266,875 69
32,200 *Microsoft Corporation 3,489,675 107
34,400 *Mirage Resorts, Inc. 733,150 22
38,000 Nabisco Holdings Corporation - Class "A" 1,370,375 42
36,500 *PeopleSoft, Inc. 1,715,500 52
16,400 Pfizer, Inc. 1,782,475 55
69,000 Pharmacia & Upjohn, Inc. 3,182,625 97
32,080 Procter & Gamble Company 2,921,285 89
64,600 SBC Communications, Inc. 2,584,000 79
30,400 Schlumberger, Ltd. 2,076,700 64
- -----------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED STATES (continued)
67,150 Southwest Airlines Company $ 1,989,319 $ 61
61,100 State Street Corporation 4,246,450 130
34,200 Travelers Group, Inc. 2,073,375 63
47,200 US Bancorp 2,029,600 62
85,000 Wal-Mart Stores, Inc. 5,163,750 158
19,500 Walt Disney Company 2,048,719 63
75,000 Warner-Lambert Company 5,203,125 159
- -----------------------------------------------------------------------------------------
107,954,303 3,299
- -----------------------------------------------------------------------------------------
UNITED KINGDOM--11.4%
100,000 B.A.T Industries PLC 1,001,100 31
146,532 Bass PLC 2,745,599 84
114,105 BOC Group PLC 1,557,339 48
184,121 British Petroleum PLC 2,684,963 82
239,525 BTR PLC 679,389 21
152,100 Compass Group PLC 1,748,526 53
59,769 Cookson Group PLC 205,432 6
194,608 Diageo PLC 2,305,385 70
110,500 Great Universal Stores PLC 1,456,512 45
113,700 HSBC Holdings PLC 2,754,564 84
88,100 Marks & Spencer PLC 801,851 25
148,514 PowerGen PLC 2,056,696 63
120,800 Reckitt & Colman PLC 2,305,782 71
184,218 Royal & Sun Alliance Insurance Group PLC 1,879,539 57
119,900 Royal Bank of Scotland Group PLC 2,080,553 64
27,500 Seibe PLC 549,227 17
260,792 Smithkline Beecham PLC 3,182,966 97
102,500 Standard Chartered PLC 1,164,646 36
254,500 WPP Group PLC 1,667,739 51
99,600 Zeneca Group PLC 4,274,214 131
- -----------------------------------------------------------------------------------------
37,102,022 1,136
- -----------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1998
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
FRANCE--9.2%
14,410 Alcatel Alsthom $ 2,933,944 $ 90
21,876 Assurances Generales de France 1,237,799 38
22,870 Axa-Uap 2,572,200 79
49,810 Banque Nationale de Paris 4,069,801 124
9,036 Compagnie de Saint Gobain 1,675,373 51
27,800 Michelin (C.D.G.E.) - Class "B" 1,604,722 49
25,662 Rhone-Poulenc SA - Series "A" 1,447,352 44
19,297 Societe Generale Paris 4,011,943 123
25,110 Societe Nationale Elf Aquitaine SA 3,530,167 108
21,147 Total SA - Class "B" 2,749,165 84
20,060 Vivendi 4,283,382 131
- -----------------------------------------------------------------------------------------
30,115,848 921
- -----------------------------------------------------------------------------------------
GERMANY--7.8%
5,510 Adidas-Salomon AG 952,402 29
115,460 Bayer AG 5,955,184 182
50,280 Dresdner Bank AG 2,710,328 83
36,910 Hoechst AG 1,842,396 56
6,070 Karstadt AG 2,932,376 90
9,110 MAN AG 3,542,990 108
35,650 Mannesmann AG 3,616,283 111
670 SAP AG 406,447 12
21,830 Siemens AG 1,327,915 41
33,070 Veba AG 2,253,479 69
- -----------------------------------------------------------------------------------------
25,539,800 781
- -----------------------------------------------------------------------------------------
NETHERLANDS--5.4%
66,969 ING Groep NV 4,385,097 134
25,200 Koninklijke KPN NV 969,982 30
49,000 Philips Electronics NV 4,119,018 126
20,900 PolyGram NV 1,066,460 33
52,400 Royal Dutch Petroleum Company - NY Shares 2,872,175 88
- -----------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS (continued)
25,200 *TNT Post Group NV $ 644,177 $ 20
46,500 Unilever NV-CVA 3,689,417 113
- -----------------------------------------------------------------------------------------
17,746,326 544
- -----------------------------------------------------------------------------------------
JAPAN--5.3%
50,000 Dai Nippon Printing Company, Ltd. 797,995 24
227,000 Daiwa Securities Company, Ltd. 976,463 30
54,000 Eisai Company, Ltd. 735,377 22
37,000 Fuji Machine Manufacturing Company 981,085 30
37,000 Fuji Photo Film 1,287,674 39
92,000 JUSCO Company, Ltd. 1,687,068 52
20,000 Mabuchi Motor Company, Ltd. 1,268,148 39
27,200 Matsumotokiyoshi Company, Ltd. 956,412 29
72,000 Matsushita Electric Industrial Company, Ltd. 1,156,896 35
212 Nippon Telegraph & Telephone Corporation 1,756,674 54
7,000 Rohm Company, Ltd. 718,737 22
77,000 Sanwa Bank, Ltd. 688,519 21
24,200 Sony Corporation 2,083,724 64
1,000 Square Company, Ltd. 26,660 1
154,000 Takashimaya Company, Ltd. 1,160,667 35
150,000 Toshiba Corporation 612,810 19
17,000 Uni-Charm Corporation 629,605 19
- -----------------------------------------------------------------------------------------
17,524,514 535
- -----------------------------------------------------------------------------------------
SWITZERLAND--3.1%
370 Compagnie Financiere Richemont AG 484,206 15
8,410 Credit Suisse Group 1,871,277 57
2,390 Holderbank Financiere Glarus AG 3,041,050 93
1,626 Nestle AG Regd 3,479,665 106
793 Novartis AG 1,320,611 40
- -----------------------------------------------------------------------------------------
10,196,809 311
- -----------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1998
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
AUSTRALIA--2.8%
222,671 *AMP, Ltd. $ 2,606,072 $ 80
239,000 Australian & New Zealand Banking Group, Ltd. 1,648,718 50
311,090 CSR, Ltd. 897,681 27
309 Goodman Fielder, Ltd. 450 --
381,114 News Corporation, Ltd. 3,110,496 95
245,145 WMC, Ltd. 737,764 23
- -----------------------------------------------------------------------------------------
9,001,181 275
- -----------------------------------------------------------------------------------------
SPAIN--2.3%
17,700 Banco Popular Espanol SA 1,512,286 46
60,600 Banco Santander SA 1,553,669 48
45,300 Endesa SA 992,759 30
47,800 Endesa SA (ADR) 1,033,675 32
16,672 Telefonica SA (ADR) 2,318,450 71
- -----------------------------------------------------------------------------------------
7,410,839 227
- -----------------------------------------------------------------------------------------
SWEDEN--2.2%
25,500 ForeningsSparbanken AB - Class "A" 767,402 23
446,140 *Nordbanken Holding AB 3,272,615 100
37,040 Pharmacia & Upjohn, Inc. 1,704,547 52
46,600 Volvo AB 1,387,781 42
- -----------------------------------------------------------------------------------------
7,132,345 217
- -----------------------------------------------------------------------------------------
CANADA--1.9%
41,800 Canadian Imperial Bank of Commerce 1,355,887 41
39,000 Canadian National Railway Company 2,071,875 63
98,500 Canadian Pacific, Ltd. 2,794,937 85
- -----------------------------------------------------------------------------------------
6,222,699 189
- -----------------------------------------------------------------------------------------
FINLAND--1.5%
165,190 Metsa-Serla OY - Class "B" 1,595,752 49
42,300 Nokia Corporation - Class "A" (ADR) 3,069,394 94
5,000 Nokia OYJ - Class "A" 367,721 11
- -----------------------------------------------------------------------------------------
5,032,867 154
- -----------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
ITALY--1.5%
647,222 Telecom Italia SpA $ 4,764,331 $ 146
- -----------------------------------------------------------------------------------------
DENMARK--1.4%
14,220 Novo - Nordisk A/S 1,960,234 60
30,310 Unidanmark A/S - Class "A" Regd 2,723,793 83
- -----------------------------------------------------------------------------------------
4,684,027 143
- -----------------------------------------------------------------------------------------
IRELAND--1.2%
168,850 Allied Irish Banks PLC 2,441,149 75
466,589 Jefferson Smurfit Group PLC 1,405,179 43
- -----------------------------------------------------------------------------------------
3,846,328 118
- -----------------------------------------------------------------------------------------
MEXICO--1.0%
396,500 *Banacci--Class "B" 750,971 23
246,600 Coca-Cola Femsa SA - Series "L" 431,377 13
53,900 *Grupo Televisa SA 1,014,894 31
215,000 Kimberly Clark de Mexico - Class "A" 746,480 23
8,300 Telmex (ADR) 398,919 12
- -----------------------------------------------------------------------------------------
3,342,641 102
- -----------------------------------------------------------------------------------------
NEW ZEALAND--.4%
72,800 Telecom Corporation of New Zealand - I/R 155,690 5
100,329 Telecom Corporation of New Zealand, Ltd. 413,506 13
27,450 Telecom Corporation of New Zealand, Ltd. (ADR) 898,987 27
- -----------------------------------------------------------------------------------------
1,468,183 45
- -----------------------------------------------------------------------------------------
HONG KONG--.4%
257,000 Cheung Kong Holdings, Ltd. 1,263,669 39
- -----------------------------------------------------------------------------------------
SINGAPORE--.3%
510,000 Overseas Union Bank, Ltd. Foreign Redg 1,116,900 34
- -----------------------------------------------------------------------------------------
ARGENTINA--.3%
31,000 Telefonica de Argentina SA - Class "B" (ADR) 1,005,562 31
- -----------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1998
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
NORWAY--.3%
55,300 Saga Petroleum ASA - Series "A" $ 850,376 $ 26
- -----------------------------------------------------------------------------------------
CHILE--.1%
19,000 Cia de Telecomunicaciones de Chile SA (ADR) 385,937 12
- -----------------------------------------------------------------------------------------
SOUTH KOREA--.1%
24,100 Pohang Iron & Steel Company, Ltd. 289,200 9
- -----------------------------------------------------------------------------------------
INDIA--.1%
15,600 Ranbaxy Laboratories, Ltd. (GDR) 249,600 8
- -----------------------------------------------------------------------------------------
TAIWAN--.1%
13,400 *Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) 226,125 7
- -----------------------------------------------------------------------------------------
PHILIPPINES--.1%
694,800 Ayala Land, Inc. 199,894 6
- -----------------------------------------------------------------------------------------
THAILAND--.0%
72,500 Thai Farmers Bank Public Company, Ltd. Foreign
Regd 63,844 2
- -----------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $222,653,977) 304,736,170 9,317
- -----------------------------------------------------------------------------------------
PREFERRED STOCKS--2.8%
BRAZIL--1.5%
1,966,000 Banco Itau SA 1,113,346 34
28,517,293 Companhia Energetic de Minas Gerais (CEMIG) 881,184 27
1,074,800 Comparhia Cervejaria Brahma 664,861 20
4,190,000 Petroleo Brasileiro SA - Petrobras 778,502 24
12,107,600 Telecomunicacoes Brasileiras SA 1,334,258 41
3,260,800 *Telesp Celular SA - Class "B" 273,255 9
23,000 *Vale Do Rio Doce - Class "B" -- --
- -----------------------------------------------------------------------------------------
5,045,406 155
- -----------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
SHARES, INVESTED
WARRANTS OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
GERMANY--1.3%
19,410 Henkel KGaA $ 1,930,208 $ 59
17,530 Hornbach Holdings AG 1,607,291 49
910 SAP AG 618,586 19
- -----------------------------------------------------------------------------------------
4,156,085 127
- -----------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $8,929,933) 9,201,491 282
- -----------------------------------------------------------------------------------------
WARRANTS--.0%
FRANCE--.0%
956 *AGF (Allianz) BCVG AGF (expiring 6/15/00) 5,558 --
- -----------------------------------------------------------------------------------------
THAILAND--.0%
5,800 *Siam Commercial Bank (expiring 12/31/02) -- --
- -----------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $0) 5,558 --
- -----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--4.7%
$15,305M Paribas Corp., 6%, 7/1/98 (collateralized by U.S.
Treasury Securities, due 6/30/99 & 2/15/15,
valued at $15,633,133)
(cost $15,305,000) 15,305,000 468
- -----------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $246,888,910) 100.7% 329,248,219 10,067
EXCESS OF LIABILITIES OVER OTHER ASSETS (.7) (2,182,776) (67)
- -----------------------------------------------------------------------------------------
NET ASSETS 100.0% $327,065,443 $ 10,000
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1998
Sector diversification of the portfolio was as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PERCENTAGE
SECTOR OF NET ASSETS VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Banks.................................. 13.9% $ 45,433,299
Drugs.................................. 11.0 36,048,831
Retail................................. 6.4 20,790,661
Telephone.............................. 5.9 19,253,171
Food/Beverage/Tobacco.................. 5.8 19,032,410
Energy Sources......................... 5.1 16,745,723
Insurance.............................. 4.8 15,729,838
Communication Equipment................ 4.4 14,275,025
Media.................................. 3.9 12,822,058
Household Products..................... 3.7 12,071,432
Electronics............................ 2.9 9,541,494
Financial Services..................... 2.9 9,366,338
Machinery & Manufacturing.............. 2.7 8,819,747
Electric Utilities..................... 2.7 8,784,956
Electrical Equipment................... 2.5 8,277,690
Travel & Leisure....................... 2.5 8,190,095
Software Services...................... 2.2 7,256,243
Business Services...................... 2.1 6,740,974
Metals & Minerals...................... 1.7 5,743,387
Transportation......................... 1.5 4,866,812
Entertainment Products................. 1.3 4,323,800
Pipeline............................... 1.3 4,283,382
Computers & Office Equipment........... 1.1 3,527,586
Paper/Forest Products.................. .9 3,000,931
Automotive............................. .9 2,992,503
Medical Products....................... .7 2,190,900
Energy Services........................ .6 2,076,700
Chemicals.............................. .5 1,557,339
Real Estate Companies.................. .1 199,894
Repurchase Agreement................... 4.7 15,305,000
- --------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS 100.7 329,248,219
EXCESS OF LIABILITIES OVER OTHER ASSETS (.7) (2,182,776)
- --------------------------------------------------------------------
NET ASSETS 100.0% $327,065,443
- --------------------------------------------------------------------
- --------------------------------------------------------------------
</TABLE>
See notes to financial statements
10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS GLOBAL FUND, INC.
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at value
(identified cost $246,888,910) (Note
1A).................................. $329,248,219
Cash................................... 10,273
Receivables:
Investment securities sold........... 2,396,222
Dividends and interest............... 1,174,890
Capital shares sold.................. 359,804
Forward currency contracts (Note
4)................................. 5,729
Other assets........................... 20,335
------------
Total Assets........................... 333,215,472
LIABILITIES
Payables:
Investment securities purchased...... $ 5,196,389
Capital shares redeemed.............. 475,789
Accrued advisory fee................... 266,611
Accrued expenses....................... 211,240
------------
Total Liabilities...................... 6,150,029
------------
NET ASSETS (Note 5):
Class A (41,820,059 shares
outstanding)....................... 313,982,063
Class B (1,778,378 shares
outstanding)....................... 13,083,380 $327,065,443
------------
------------
------------
NET ASSETS CONSIST OF:
Capital paid in........................ $245,675,576
Undistributed net investment income.... 702,331
Accumulated net realized loss on
investments and foreign currency
transactions......................... (1,664,005)
Net unrealized appreciation of
investments and foreign currency
transactions......................... 82,351,541
------------
Total.................................. $327,065,443
------------
------------
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE - CLASS A.................. $ 7.51
-----
-----
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A ($7.51/.9375)*....... $ 8.01
-----
-----
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - CLASS B (Note 5)............. $ 7.36
-----
-----
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
11
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS GLOBAL FUND, INC.
Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends (net of $123,007 foreign
withholding taxes)................. $ 3,252,329
Interest............................. 410,844
------------
Total income........................... 3,663,173
Expenses (Notes 1 and 3):
Advisory fee......................... $ 1,535,995
Shareholder servicing costs.......... 482,349
Distribution plan expenses - Class
A.................................. 449,596
Distribution plan expenses - Class
B.................................. 58,935
Custodian fees and expenses.......... 235,155
Reports and notices to
shareholders....................... 48,512
Professional fees.................... 26,516
Other expenses....................... 31,779
------------
Total expenses......................... 2,868,837
------------
Net investment income.................. 794,336
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS (Note 2):
Net realized gain (loss) from:
Investments.......................... 3,766,829
Foreign currency transactions........ (15,925) 3,750,904
------------
Net unrealized appreciation of:
Investments.......................... 43,548,374
Foreign currency transactions........ 3,599 43,551,973
------------ ------------
Net gain from investments and foreign
currencies........................... 47,302,877
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $ 48,097,213
------------
------------
</TABLE>
See notes to financial statements
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS GLOBAL FUND, INC.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1998 1997
- --------------------------------------- ------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income................ $ 794,336 $ 1,128,454
Net realized gain on investments and
foreign currency transactions...... 3,750,904 21,938,853
Net unrealized appreciation
(depreciation) of investments and
foreign currency transactions...... 43,551,973 (1,723,731)
------------ ------------
Net increase in net assets
resulting from operations........ 48,097,213 21,343,576
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... -- (1,053,231)
Net realized gains - Class A......... -- (26,486,799)
Net realized gains - Class B......... -- (1,019,942)
------------ ------------
Total distributions................ -- (28,559,972)
------------ ------------
CAPITAL SHARE TRANSACTIONS(a)
Class A:
Proceeds from shares sold............ 14,473,057 35,195,348
Reinvestment of distributions........ -- 27,005,495
Cost of shares redeemed.............. (24,054,347) (41,510,319)
------------ ------------
(9,581,290) 20,690,524
------------ ------------
Class B:
Proceeds from shares sold............ 1,980,149 5,760,337
Reinvestment of distributions........ -- 1,014,030
Cost of shares redeemed.............. (1,146,713) (964,600)
------------ ------------
833,436 5,809,767
------------ ------------
Net increase (decrease) from capital
share transactions................. (8,747,854) 26,500,291
------------ ------------
Net increase in net assets......... 39,349,359 19,283,895
NET ASSETS
Beginning of period.................. 287,716,084 268,432,189
------------ ------------
End of period (including accumulated
net investment income (deficit) of
$702,331 and ($92,005),
respectively)...................... $327,065,443 $287,716,084
------------ ------------
------------ ------------
(a)CAPITAL SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 2,030,493 4,989,223
Issued for distributions
reinvested......................... -- 4,213,026
Redeemed............................. (3,430,692) (5,897,153)
------------ ------------
Net increase (decrease) in Class A
capital shares outstanding......... (1,400,199) 3,305,096
------------ ------------
------------ ------------
Class B:
Sold................................. 281,094 820,925
Issued for distributions
reinvested......................... -- 160,702
Redeemed............................. (166,997) (138,029)
------------ ------------
Net increase in Class B capital
shares outstanding................. 114,097 843,598
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements
13
<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 or market 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 gains and losses 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, if any, 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
agreements. 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.
14
<PAGE>
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 six months ended June 30, 1998, purchases
and sales of investment securities, excluding foreign currencies and repurchase
agreements, aggregated $120,797,427 and $125,796,899, respectively.
At June 30, 1998, the cost of investments for federal income tax purposes was
$246,888,910. Accumulated net unrealized appreciation on investments was
$82,359,309, consisting of $89,849,195 gross unrealized appreciation and
$7,489,886 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. Directors of the Fund
who are not "interested persons" of the Fund as defined in the 1940 Act are
remunerated by the Fund. For the six months ended June 30, 1998, total directors
fees accrued by the Fund amounted to $6,000.
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 six months ended June 30, 1998, FIC, as underwriter, received
$544,367 in commissions after allowing $2,212 to other dealers. Shareholder
servicing costs included $290,684 in transfer agent fees paid to ADM and
$109,984 in IRA custodian fees paid to FFS.
Wellington Management Company, LLP serves as investment subadviser to the Fund.
The subadviser is paid by FIMCO and not by the Fund.
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act, the
Fund is authorized to pay FIC a fee equal to .30% of the average daily net
assets of the Class A shares and 1% of the average daily net assets of the Class
B shares on an annualized basis each year, payable monthly. The fee consists of
a distribution fee and a service fee. The service fee is paid for the ongoing
servicing of clients who are shareholders of the Fund.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS GLOBAL FUND, INC.
4. FORWARD CURRENCY CONTRACTS--A forward currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future date.
When the Fund purchases or sells foreign securities it customarily enters into a
forward currency contract to minimize foreign exchange risk between the trade
date and the settlement date of such transactions. The Fund could be exposed to
risk if counterparties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably. The
following forward currency contracts were outstanding at June 30, 1998:
<TABLE>
<CAPTION>
Unrealized
Contracts to Buy Foreign Currency In Exchange for Settlement Date Gain (Loss)
- ------------------------------------ ---------------- --------------- ----------------
<C> <S> <C> <C> <C>
1,809,520 Deutsche Marks U.S.$ 998,466 7/1/98 U.S.$ 4,019
379,111 Swiss Francs 248,321 7/1/98 1,619
301,073 British Pounds 503,545 7/2/98 (1,204)
407,822 Dutch Guilders 200,207 7/2/98 273
353,275 Swiss Francs 231,564 7/2/98 1,342
219,203 British Pounds 365,438 7/7/98 302
12,852,167 French Francs 2,122,689 7/31/98 3,034
---------------- ----------------
U.S.$ 4,670,230 U.S.$ 9,385
---------------- ----------------
<CAPTION>
Contracts to Sell Foreign Currency
- ------------------------------------
<C> <S> <C> <C> <C>
215,000 British Pounds U.S.$ 358,642 7/1/98 U.S.$ (86)
741,349 Japanese Yen 5,194 7/1/98 (147)
468,657 Mexican Pesos 51,957 7/1/98 (197)
381,551 Japanese Yen 2,698 7/2/98 (51)
1,115,726 Mexican Pesos 124,315 7/2/98 152
173,885 British Pounds 288,877 7/3/98 (1,250)
597,081 British Pounds 994,200 7/6/98 (2,030)
302,033 French Francs 49,908 7/31/98 (47)
---------------- ----------------
U.S.$ 1,875,791 U.S.$ (3,656)
---------------- ----------------
Unrealized Gain on Forward Currency Contracts U.S.$ 5,729
----------------
----------------
</TABLE>
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.
16
<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 period indicated.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------------- -----------------------------------------------
1/1/98 Year Ended December 31 1/1/98 Year Ended December 31
to ----------------------------------------- to ------------------------------
6/30/98 1997 1996 1995 1994 1993 6/30/98 1997 1996 1995*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value,
Beginning of
Period............ $ 6.41 $ 6.59 $ 6.57 $ 5.84 $ 6.27 $ 5.11 $ 6.31 $ 6.51 $ 6.54 $ 5.76
--------- ------ ------ ------ ------- ------ ---------- ------- ------- ----------
Income from
Investment
Operations
Net investment
income (loss)... .019 .029 .036 .035 .028 .014 (.005) (.007) (.007) .027
Net realized and
unrealized gain
(loss) from
investments and
foreign currency
transactions.... 1.081 .497 .912 1.006 (.265) 1.160 1.055 .486 .879 1.056
--------- ------ ------ ------ ------- ------ ---------- ------- ------- ----------
Total from
Investment
Operations...... 1.100 .526 .948 1.041 (.237) 1.174 1.050 .479 .872 1.083
--------- ------ ------ ------ ------- ------ ---------- ------- ------- ----------
Less Distributions:
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 Period......... $ 7.51 $ 6.41 $ 6.59 $ 6.57 $ 5.84 $ 6.27 $ 7.36 $ 6.31 $ 6.51 $ 6.54
--------- ------ ------ ------ ------- ------ ---------- ------- ------- ----------
--------- ------ ------ ------ ------- ------ ---------- ------- ------- ----------
TOTAL RETURN (%)+... 17.16 7.98 14.43 17.83 (3.78) 22.97 16.64 7.36 13.33 18.80
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of
Period (in
millions)......... $314 $277 $263 $228 $214 $210 $13 $10 $5 $1
Ratio to Average Net
Assets: (%)
Expenses.......... 1.82(a) 1.82 1.83 1.83 1.84 1.87 2.52(a) 2.52 2.54 2.56(a)
Net investment
income (loss)... .54(a) .41 .50 .55 .45 .27 (.16)(a) (.29) (.21) (.19)(a)
Portfolio Turnover
Rate (%).......... 41 70 73 47 56 41 41 70 73 47
</TABLE>
* From January 12, 1995 (date Class B shares first offered) to December 31, 1995
+ Calculated without sales charge
(a) Annualized
See notes to financial statements
17
<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 June
30, 1998, 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, 1998,
and the year ended December 31, 1997, 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, 1998, 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 June 30, 1998, 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
July 31, 1998
18
<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, LLP
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.
19
<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.
SEMI-
ANNUAL
REPORT
JUNE 30, 1998
