<PAGE>
[LOGO] First Investors
TOTAL RETURN
GROWTH & INCOME
BLUE CHIP
UTILITIES INCOME
MID-CAP OPPORTUNITY
SPECIAL SITUATIONS
FOCUSED EQUITY
GLOBAL
EQUITY FUNDS
SEMI-ANNUAL REPORT
MARCH 31, 1999
<PAGE>
MARKET OVERVIEW
FIRST INVESTORS TOTAL RETURN FUND
FIRST INVESTORS GROWTH & INCOME FUND
FIRST INVESTORS BLUE CHIP FUND
FIRST INVESTORS UTILITIES INCOME FUND
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
FIRST INVESTORS SPECIAL SITUATIONS FUND
FIRST INVESTORS FOCUSED EQUITY FUND
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
We are pleased to present the semi-annual report for the First Investors equity
funds for the six month period ended March 31, 1999. During the reporting
period, the equity market bounced back from a severe downturn in the third
quarter of 1998, posting strong gains over the past six months. The equity
market's recent superior performance was largely driven by the robust domestic
economy, subsiding concerns about economic and political uncertainties,
respectable corporate earnings, and continued investor confidence.
The U.S. economy remained strong, creating a positive backdrop for equity
investors. The economy ended 1998 with 6.0% annualized growth in the fourth
quarter, as measured by the Gross Domestic Product (GDP). This rapid pace of
expansion matched the strongest quarter of the 1990s. The momentum continued
into the first quarter of 1999, with growth of 4.5% on an annual basis. Although
the economy continued to expand, inflation remained low. As of March 31, the
rate of inflation for the previous 12 months was less than 2%, as measured by
the Consumer Price Index (CPI). The unemployment rate also continued to be low
by historical standards, reaching 4.2% as of the end of March, its lowest level
since 1970. The positive economic environment pushed personal income levels
higher and increased consumer confidence.
The Federal Reserve's monetary policy over the past six months also enhanced the
climate for equity investors. Through three successive Federal Funds rate cuts
last autumn, the Fed eased the money supply, creating greater liquidity in the
marketplace and restoring stability to world financial markets. At the end of
March, the Fed left interest rates alone and signaled that monetary policy was
likely to remain unchanged for a while.
A number of persistent concerns that had dragged down the market in the late
summer lessened during the reporting period. The impeachment trial of President
1
<PAGE>
MARKET OVERVIEW (continued)
FIRST INVESTORS TOTAL RETURN FUND
FIRST INVESTORS GROWTH & INCOME FUND
FIRST INVESTORS BLUE CHIP FUND
FIRST INVESTORS UTILITIES INCOME FUND
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
FIRST INVESTORS SPECIAL SITUATIONS FUND
FIRST INVESTORS FOCUSED EQUITY FUND
FIRST INVESTORS GLOBAL FUND, INC.
Clinton concluded, a bailout plan for Brazil was formulated, several Asian
economies appeared to stabilize and Long-Term Capital, the giant hedge fund,
finished de-leveraging. The Fed's moves, combined with the steadying influence
of the U.S. economy and diminished anxieties about political and economic
issues, helped lift investors' spirits and powered the equity rally.
Although most major sectors of the equity market participated in the fourth
quarter upswing, the mid-capitalization stocks outperformed large- and
small-capitalization stocks. During the first quarter of 1999, large-cap stocks
posted the best returns, while mid- and small-caps lagged behind. For the
reporting period, sectors such as consumer non-cyclicals and technology stocks,
particularly Internet-related stocks, performed better than the broader market.
Within the utilities sector, telecommunications companies were far and away the
best performing group, as telecom stocks benefited from increased demand related
to the surge in data transmission and Internet traffic. In international equity
markets, performance was mixed. Developed, major markets such as those in Europe
tended to post stronger returns than markets of smaller, developing nations.
As the reporting period came to an end, much media attention was devoted to "Dow
10000" as the Dow Jones Industrial Average broke through the 10,000 point
threshold. While some may say that this is just an arbitrary number with no
greater significance than 9999, a case can be made for the psychological impact
of a five-digit-Dow. Positive investor psychology has been a major force behind
this long bull market, and passing this milestone may be yet another positive
indication for the future.
Going forward, our long-term outlook for the equity market remains optimistic.
However, we are particularly watchful of a number of situations, including
overseas economic and political difficulties and their potential impact on the
U.S. As this is written, U.S. and NATO forces are engaged in military strikes in
Kosovo. While these actions have had a negligible impact on equity markets, a
longer-term conflict could
2
<PAGE>
bring about investor uncertainty. We are also concerned about excessive
valuations and record-high share prices of some stocks. As demonstrated in the
third quarter of last year, the stock market is inherently volatile, and
significant short-term corrections are part of its nature. However, in general,
we are encouraged by the healthy fundamentals of the domestic economy, sustained
corporate earnings, subdued inflation and the favorable interest rate
environment.
Thank you for your continued confidence in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Patricia D. Poitra
Director of Equities
First Investors Management Company, Inc.
April 30, 1999
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS TOTAL RETURN FUND
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--59.7%
AEROSPACE/DEFENSE--.7%
10,500 Raytheon Company $ 615,562 $ 65
- -------------------------------------------------------------------------------------
BASIC MATERIALS--1.3%
15,000 Alcoa, Inc. 617,812 65
6,500 Dow Chemical Company 605,719 64
- -------------------------------------------------------------------------------------
1,223,531 129
- -------------------------------------------------------------------------------------
CAPITAL GOODS--5.7%
16,300 Boeing Company 556,237 58
29,600 Browning-Ferris Industries, Inc. 1,141,450 120
7,000 Deere & Company 270,375 28
15,300 General Electric Company 1,692,562 178
3,900 Honeywell, Inc. 295,669 31
9,900 Illinois Tool Works, Inc. 612,562 64
6,300 United Technologies Corporation 853,256 90
- -------------------------------------------------------------------------------------
5,422,111 569
- -------------------------------------------------------------------------------------
COMMUNICATION SERVICES--3.5%
10,900 AT & T Corporation 869,956 91
9,900 GTE Corporation 598,950 63
12,960 *MCI WorldCom, Inc. 1,147,770 120
15,300 SBC Communications, Inc. 721,012 76
- -------------------------------------------------------------------------------------
3,337,688 350
- -------------------------------------------------------------------------------------
CONSUMER CYCLICALS--4.4%
29,700 Family Dollar Stores, Inc. 683,100 72
14,000 Gannett Company, Inc. 882,000 93
22,850 Gap, Inc. 1,538,091 161
12,000 Wal-Mart Stores, Inc. 1,106,250 116
- -------------------------------------------------------------------------------------
4,209,441 442
- -------------------------------------------------------------------------------------
CONSUMER STAPLES--5.2%
18,200 Coca-Cola Enterprises, Inc. 550,550 58
9,800 Estee Lauder Companies, Inc. - Cl. "A" 926,100 97
8,600 General Mills, Inc. 649,837 68
11,600 Kellogg Company 392,225 41
21,200 McDonald's Corporation 960,625 101
- -------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
23,400 PepsiCo, Inc. $ 916,987 $ 96
5,600 Procter & Gamble Company 548,450 58
- -------------------------------------------------------------------------------------
4,944,774 519
- -------------------------------------------------------------------------------------
ENERGY--2.9%
5,400 Chevron Corporation 477,562 50
14,800 Exxon Corporation 1,044,325 110
6,200 Mobil Corporation 545,600 57
20,200 Sunoco, Inc. 728,463 76
- -------------------------------------------------------------------------------------
2,795,950 293
- -------------------------------------------------------------------------------------
FINANCIAL--16.4%
43,100 Ace, Ltd. 1,344,181 141
7,300 American Express Company 857,750 90
8,000 American International Group, Inc. 965,000 101
19,400 Bank One Corporation 1,068,213 112
13,400 Charter One Financial, Inc. 386,716 41
16,500 Chase Manhattan Corporation 1,341,656 141
24,000 CIT Group, Inc. - Cl. "A" 733,500 77
11,900 Fannie Mae 824,075 86
18,700 Freddie Mac 1,068,238 112
15,700 Hertz Corporation - Cl. "A" 839,950 88
46,800 Hibernia Corporation - Cl. "A" 614,250 64
20,600 Household International, Inc. 939,875 99
11,300 Kimco Realty Corporation 416,688 44
11,200 MBNA Corporation 267,400 28
11,700 Mercantile Bancorporation, Inc. 555,750 58
14,100 PNC Bank Corporation 783,431 82
21,800 SLM Holding Corporation 910,150 95
8,100 Wachovia Corporation 657,619 69
26,700 Washington Mutual Savings Bank 1,091,363 115
- -------------------------------------------------------------------------------------
15,665,805 1,643
- -------------------------------------------------------------------------------------
HEALTHCARE--6.6%
19,300 Abbott Laboratories 903,481 95
10,500 American Home Products Corporation 685,125 72
16,900 AstraZeneca Group PLC (ADR) 795,356 83
9,800 Bristol-Myers Squibb Company 630,263 66
8,100 Johnson & Johnson 758,869 80
- -------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<S> <S> <C> <C>
HEALTHCARE (continued)
6,200 Pfizer, Inc. $ 860,250 $ 90
10,200 Schering-Plough Corporation 564,188 59
15,700 Warner-Lambert Company 1,039,144 109
- -------------------------------------------------------------------------------------
6,236,676 654
- -------------------------------------------------------------------------------------
TECHNOLOGY--10.9%
74,100 *Advanced Fibre Communications, Inc. 710,901 75
12,100 *Applied Materials, Inc. 746,419 78
15,500 Autodesk, Inc. 626,781 66
21,000 Automatic Data Processing, Inc. 868,875 91
12,675 *Cisco Systems, Inc. 1,388,705 146
15,400 *EMC Corporation 1,967,350 206
10,000 *Microsoft Corporation 896,250 94
15,600 Motorola, Inc. 1,142,700 120
10,600 Northern Telecom, Ltd. 658,525 69
3,100 Texas Instruments, Inc. 307,675 32
7,800 *Verio, Inc. 359,775 38
14,000 Xerox Corporation 747,250 78
- -------------------------------------------------------------------------------------
10,421,206 1,093
- -------------------------------------------------------------------------------------
TRANSPORTATION--1.0%
25,000 CNF Transportation, Inc. 945,313 99
- -------------------------------------------------------------------------------------
UTILITIES--1.1%
9,900 Enron Corporation 636,075 67
23,600 PacifiCorp 407,100 43
- -------------------------------------------------------------------------------------
1,043,175 110
- -------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $41,646,530) 56,861,232 5,966
- -------------------------------------------------------------------------------------
CORPORATE BONDS--17.8%
APPAREL/TEXTILES--.5%
$ 500M Westpoint Stevens, Inc., 7.875%, 2008 513,750 54
- -------------------------------------------------------------------------------------
AUTOMOTIVE--.5%
500M Titan International, Inc., 8.75%, 2007 478,750 50
- -------------------------------------------------------------------------------------
BUILDING MATERIALS--1.0%
1,000M Interface, Inc., 7.30%, 2008 953,750 100
- -------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<S> <S> <C> <C>
CHEMICALS--.7%
$ 650M Huntsman Polymers Corp., 11.75%, 2004 $ 700,375 $ 73
- -------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--.5%
500M PrintPack, Inc., 9.875%, 2004 498,750 52
- -------------------------------------------------------------------------------------
ELECTRIC & GAS UTILITIES--.5%
500M Niagara Mohawk Power Corp., 7.625%, 2005 516,167 54
- -------------------------------------------------------------------------------------
ENERGY EXPLORATION/PRODUCTS--1.1%
1,000M Gulf Canada Resources, Ltd., 8.35%, 2006 995,000 104
- -------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--1.0%
1,000M AMC Entertainment, Inc., 9.50%, 2009 961,875 101
- -------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--.7%
600M Universal Corp., 9.25%, 2001 633,232 66
- -------------------------------------------------------------------------------------
GAS TRANSMISSION--1.1%
1,000M Enron Corp., 7.125%, 2007 1,045,575 110
- -------------------------------------------------------------------------------------
INSURANCE--1.1%
1,000M First Colony Corp., 6.625%, 2003 1,025,810 108
- -------------------------------------------------------------------------------------
INVESTMENT/FINANCE COMPANIES--3.7%
1,000M Ford Motor Credit Co., 6.625%, 2003 1,024,760 108
1,000M International Lease Finance Corp., 6.375%, 2002 1,017,556 107
1,500M Telesis Autumn Leaves, Ltd. Variable Rate Demand
Note, 4.95%, 2004** 1,500,000 157
- -------------------------------------------------------------------------------------
3,542,316 372
- -------------------------------------------------------------------------------------
MISCELLANEOUS--1.6%
1,000M Allied Waste North America, Inc., 7.625%, 2006 975,000 102
500M Signature Brands, Inc., 13%, 2002 502,500 53
- -------------------------------------------------------------------------------------
1,477,500 155
- -------------------------------------------------------------------------------------
RETAIL - GENERAL MERCHANDISE--1.1%
1,000M Federated Department Stores, Inc., 7.45%, 2017 1,045,885 110
- -------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS TOTAL RETURN FUND
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<S> <S> <C> <C>
TELECOMMUNICATIONS--1.6%
$ 1,000M MCI WorldCom, Inc., 6.40%, 2005 $ 1,015,711 $ 107
500M TCI Communications, Inc., 6.375%, 2003 511,169 54
- -------------------------------------------------------------------------------------
1,526,880 161
- -------------------------------------------------------------------------------------
TRANSPORTATION--1.1%
1,000M Norfolk Southern Corp., 6.95%, 2002 1,031,361 108
- -------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $17,025,567) 16,946,976 1,778
- -------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--10.2%
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION I PROGRAM--6.4%
6,003M 7%, 2/15/28 6,102,870 640
- -------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II
PROGRAM--3.8%
3,844M 5.50%, 12/20/28-2/20/29 3,631,002 381
- -------------------------------------------------------------------------------------
TOTAL VALUE OF MORTGAGE-BACKED CERTIFICATES (cost 9,733,872 1,021
$9,833,194)
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--4.0%
4,000M United States Treasury Bonds, 5.50%, 2028
(cost $3,954,969) 3,826,252 402
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.8%
6,500M Federal National Mortgage Association, 5.75%,
2008 (cost $6,409,115) 6,473,064 679
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $78,869,375) 98.5% 93,841,396 9,846
OTHER ASSETS, LESS LIABILITIES 1.5 1,467,273 154
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $95,308,669 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
** The interest rate on the variable rate demand note is determined and reset
weekly by the issuer. The interest rate shown is the rate in effect at March
31, 1999.
See notes to financial statements
8
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--91.2%
AEROSPACE/DEFENSE--1.0%
70,000 Raytheon Company $ 4,103,750 $ 98
--------------------------------------------------------------------------------------
BASIC MATERIALS--2.2%
125,000 Alcoa, Inc. 5,148,437 123
42,000 Dow Chemical Company 3,913,875 94
--------------------------------------------------------------------------------------
9,062,312 217
--------------------------------------------------------------------------------------
CAPITAL GOODS--8.3%
105,000 Boeing Company 3,583,125 86
200,000 Browning-Ferris Industries, Inc. 7,712,500 184
44,900 Deere & Company 1,734,262 41
95,000 General Electric Company 10,509,375 251
25,000 Honeywell, Inc. 1,895,312 45
62,000 Illinois Tool Works, Inc. 3,836,250 92
40,000 United Technologies Corporation 5,417,500 130
--------------------------------------------------------------------------------------
34,688,324 829
--------------------------------------------------------------------------------------
COMMUNICATION SERVICES--5.5%
80,000 AT & T Corporation 6,385,001 153
62,000 GTE Corporation 3,751,000 90
95,000 *MCI WorldCom, Inc. 8,413,437 201
95,000 SBC Communications, Inc. 4,476,875 107
--------------------------------------------------------------------------------------
23,026,313 551
--------------------------------------------------------------------------------------
CONSUMER CYCLICALS--7.3%
100,000 *CheckFree Holdings Corporation 4,256,250 102
190,000 Family Dollar Stores, Inc. 4,370,000 105
87,000 Gannett Company, Inc. 5,481,000 131
143,000 Gap, Inc. 9,625,687 230
75,000 Wal-Mart Stores, Inc. 6,914,062 165
--------------------------------------------------------------------------------------
30,646,999 733
--------------------------------------------------------------------------------------
CONSUMER STAPLES--7.7%
74,000 Chiquita Brands International, Inc. 753,875 18
122,700 Coca-Cola Enterprises, Inc. 3,711,675 89
61,000 Estee Lauder Companies, Inc. - Cl. "A" 5,764,500 138
53,000 General Mills, Inc. 4,004,812 96
73,200 Kellogg Company 2,475,075 59
--------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS GROWTH & INCOME FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
132,000 McDonald's Corporation $ 5,981,250 $ 143
150,000 PepsiCo, Inc. 5,878,125 141
36,000 Procter & Gamble Company 3,525,750 84
--------------------------------------------------------------------------------------
32,095,062 768
--------------------------------------------------------------------------------------
ENERGY--4.2%
35,000 Chevron Corporation 3,095,312 74
92,000 Exxon Corporation 6,491,750 155
40,000 Mobil Corporation 3,520,000 84
126,000 Sunoco, Inc. 4,543,875 109
--------------------------------------------------------------------------------------
17,650,937 422
--------------------------------------------------------------------------------------
FINANCIAL--25.1%
275,000 Ace, Ltd. 8,576,563 205
45,000 American Express Company 5,287,500 126
50,500 American International Group, Inc. 6,091,563 146
125,000 Bank One Corporation 6,882,813 165
86,000 Charter One Financial, Inc. 2,481,908 59
105,200 Chase Manhattan Corporation 8,554,075 205
151,000 CIT Group, Inc. - Cl. "A" 4,614,938 110
65,000 Citigroup, Inc. 4,151,875 99
80,000 Fannie Mae 5,540,000 133
120,000 Freddie Mac 6,855,000 164
100,000 Hertz Corporation - Cl. "A" 5,350,000 128
300,000 Hibernia Corporation - Cl. "A" 3,937,500 94
132,000 Household International, Inc. 6,022,500 144
70,000 Kimco Realty Corporation 2,581,250 62
100,000 MBNA Corporation 2,387,500 57
75,000 Mercantile Bancorporation, Inc. 3,562,500 85
87,500 PNC Bank Corporation 4,861,719 116
140,000 SLM Holding Corporation 5,845,000 140
50,000 Wachovia Corporation 4,059,375 97
175,000 Washington Mutual Savings Bank 7,153,125 171
--------------------------------------------------------------------------------------
104,796,704 2,506
--------------------------------------------------------------------------------------
HEALTHCARE--9.4%
120,000 Abbott Laboratories 5,617,500 134
65,200 American Home Products Corporation 4,254,300 102
105,714 AstraZeneca Group PLC (ADR) 4,975,165 119
--------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE (continued)
63,000 Bristol-Myers Squibb Company $ 4,051,688 $ 97
50,000 Johnson & Johnson 4,684,375 112
40,000 Pfizer, Inc. 5,550,000 133
65,000 Schering-Plough Corporation 3,595,313 86
100,000 Warner-Lambert Company 6,618,750 158
--------------------------------------------------------------------------------------
39,347,091 941
--------------------------------------------------------------------------------------
TECHNOLOGY--17.5%
475,000 *Advanced Fibre Communications, Inc. 4,557,055 109
78,600 *Applied Materials, Inc. 4,848,638 116
100,000 Autodesk, Inc. 4,043,750 97
130,000 Automatic Data Processing, Inc. 5,378,750 129
85,500 *Cisco Systems, Inc. 9,367,594 224
104,000 *EMC Corporation 13,286,000 318
64,000 *Microsoft Corporation 5,736,000 137
114,000 Motorola, Inc. 8,350,500 200
68,000 Northern Telecom, Ltd. 4,224,500 101
20,000 Texas Instruments, Inc. 1,985,000 47
150,000 *Verio, Inc. 6,918,750 166
86,000 Xerox Corporation 4,590,250 110
--------------------------------------------------------------------------------------
73,286,787 1,754
--------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
160,000 CNF Transportation, Inc. 6,050,000 145
--------------------------------------------------------------------------------------
UTILITIES--1.6%
61,200 Enron Corporation 3,932,100 94
150,000 PacifiCorp 2,587,500 62
--------------------------------------------------------------------------------------
6,519,600 156
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $259,470,725) 381,273,879 9,120
--------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--2.4%
CONSUMER CYCLICALS--1.0%
70,000 Merrill Lynch Structured Yield Product
(exchangeable into Cox Communications, Inc.
Common Stock), 6% 4,313,750 103
--------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS GROWTH & INCOME FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL--.7%
100,000 Lincoln National Corp., 7.75%, 8/16/01 $ 2,650,000 $ 63
--------------------------------------------------------------------------------------
TECHNOLOGY--.7%
30,000 Microsoft Corp., 2.196%, 12/15/99 2,955,000 71
--------------------------------------------------------------------------------------
TOTAL VALUE OF CONVERTIBLE PREFERRED STOCKS (cost $6,603,787) 9,918,750 237
--------------------------------------------------------------------------------------
CONVERTIBLE BONDS--2.2%
CONSUMER CYCLICALS--1.6%
$ 1,600M Home Depot, Inc., 3.25%, 2001 4,444,000 106
2,500M Sportsline USA, 5%, 2006 (Note 6) 2,303,125 55
--------------------------------------------------------------------------------------
6,747,125 161
--------------------------------------------------------------------------------------
HEALTHCARE--.6%
3,000M Healthsouth Corp., 3.25%, 2003 2,456,250 59
--------------------------------------------------------------------------------------
TOTAL VALUE OF CONVERTIBLE BONDS (cost $7,086,250) 9,203,375 220
--------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.6%
2,784M Alabama Power Co., 4.85%, 4/16/99 2,778,367 66
2,200M Baystates Gas Co., 4.85%, 4/20/99 2,194,363 53
6,500M BellSouth Telecommunications, Inc., 4.83%, 5/7/99 6,468,601 155
2,000M GTE Corp., 4.83%, 4/8/99 1,998,118 48
6,000M Prudential Funding Corp., 4.83%, 4/15/99 5,988,710 143
--------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $19,428,159) 19,428,159 465
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $292,588,921) 100.4% 419,824,163 10,042
EXCESS OF LIABILITIES OVER OTHER ASSETS (.4) (1,759,475) (42)
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $418,064,688 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
12
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS BLUE CHIP FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--98.6%
AUTOMOTIVE--1.2%
105,500 Ford Motor Company $ 5,987,125 $ 115
--------------------------------------------------------------------------------------
BASIC MATERIALS--2.4%
165,300 Alcoa, Inc. 6,808,294 131
56,400 Ecolab, Inc. 2,002,200 38
70,400 PPG Industries, Inc. 3,608,000 69
--------------------------------------------------------------------------------------
12,418,494 238
--------------------------------------------------------------------------------------
CAPITAL GOODS--7.5%
31,600 Deere & Company 1,220,550 23
152,400 General Electric Company 16,859,250 324
134,600 Ingersoll-Rand Company 6,679,525 128
55,700 Pitney-Bowes, Inc. 3,550,875 68
147,100 Tyco International, Ltd. 10,554,425 203
--------------------------------------------------------------------------------------
38,864,625 746
--------------------------------------------------------------------------------------
COMMUNICATION SERVICES--10.4%
166,100 AT & T Corporation 13,256,857 254
149,000 *AT&T Corp. - Liberty Media Group - Cl. "A" 7,841,125 151
93,900 Bell Atlantic Corporation 4,853,456 93
76,900 GTE Corporation 4,652,450 89
172,600 *MCI WorldCom, Inc. 15,285,887 293
113,468 *Qwest Communications International, Inc. 8,180,339 157
--------------------------------------------------------------------------------------
54,070,114 1,037
--------------------------------------------------------------------------------------
CONSUMER CYCLICALS--10.4%
124,000 *CheckFree Holdings Corporation 5,277,750 101
114,600 *Costco Companies, Inc. 10,493,062 201
105,700 Danaher Corporation 5,522,825 106
78,900 Home Depot, Inc. 4,911,525 94
141,000 Masco Corporation 3,983,250 76
120,000 McGraw-Hill Companies, Inc. 6,540,000 126
35,200 *Office Depot, Inc. 1,295,800 25
83,300 Tribune Company 5,450,944 105
116,000 Wal-Mart Stores, Inc. 10,693,750 205
--------------------------------------------------------------------------------------
54,168,906 1,039
--------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS BLUE CHIP FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES--12.2%
84,700 Anheuser-Busch Companies, Inc. $ 6,453,081 $ 124
71,500 Bestfoods 3,360,500 65
171,400 Coca-Cola Enterprises, Inc. 5,184,850 100
91,900 General Mills, Inc. 6,944,194 133
102,600 Kellogg Company 3,469,162 67
263,700 PepsiCo, Inc. 10,333,744 198
65,900 Procter & Gamble Company 6,454,081 124
152,400 *Safeway, Inc. 7,820,025 150
149,000 Time Warner, Inc. 10,588,312 203
46,400 Unilever, N.V. 3,082,700 59
--------------------------------------------------------------------------------------
63,690,649 1,223
--------------------------------------------------------------------------------------
ENERGY--3.6%
33,300 Chevron Corporation 2,944,969 57
132,900 Exxon Corporation 9,377,756 180
13,000 Mobil Corporation 1,144,000 22
141,200 Sunoco, Inc. 5,092,025 98
--------------------------------------------------------------------------------------
18,558,750 357
--------------------------------------------------------------------------------------
FINANCIAL--17.9%
23,500 American Express Company 2,761,250 53
82,050 American International Group, Inc. 9,897,281 190
193,800 Bank One Corporation 10,671,113 205
76,079 BankAmerica Corporation 5,373,079 103
69,800 Charter One Financial, Inc. 2,014,386 39
137,500 Chase Manhattan Corporation 11,180,469 215
115,000 Citigroup, Inc. 7,345,625 141
67,100 Fannie Mae 4,646,675 89
83,100 Freddie Mac 4,747,088 91
134,000 Hartford Financial Services Group 7,612,875 146
45,900 Jefferson-Pilot Corporation 3,109,725 60
163,000 MBNA Corporation 3,891,625 75
35,900 Merrill Lynch & Company, Inc. 3,174,906 61
17,000 Morgan Stanley, Dean Witter, Discover and Company 1,698,938 33
190,300 PNC Bank Corporation 10,573,544 203
112,600 SLM Holding Corporation 4,701,050 90
--------------------------------------------------------------------------------------
93,399,629 1,794
--------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE--13.3%
65,500 Abbott Laboratories $ 3,066,219 $ 59
253,600 American Home Products Corporation 16,547,400 318
107,200 Bristol-Myers Squibb Company 6,894,300 132
63,600 Johnson & Johnson 5,958,525 114
130,200 Merck & Company, Inc. 10,440,413 200
76,200 Pfizer, Inc. 10,572,750 203
137,500 Schering-Plough Corporation 7,605,469 146
125,600 Warner-Lambert Company 8,313,150 160
--------------------------------------------------------------------------------------
69,398,226 1,332
--------------------------------------------------------------------------------------
TECHNOLOGY--16.8%
92,400 *Applied Materials, Inc. 5,699,925 109
81,150 *Cisco Systems, Inc. 8,890,997 171
492,400 Ericsson (L.M.) Telephone Co. - Cl. "B" (ADR) 11,725,275 225
140,800 Hewlett-Packard Company 9,548,000 183
102,000 Intel Corporation 12,150,750 233
140,700 *LSI Logic Corporation 4,388,081 84
57,200 Lucent Technologies, Inc. 6,163,300 118
104,400 *Microsoft Corporation 9,356,850 180
140,800 Motorola, Inc. 10,313,600 198
211,500 *Symantec Corporation 3,582,281 69
110,200 Xerox Corporation 5,881,925 113
--------------------------------------------------------------------------------------
87,700,984 1,683
--------------------------------------------------------------------------------------
TRANSPORTATION--.9%
148,500 Burlington Northern Santa Fe Corporation 4,881,938 94
--------------------------------------------------------------------------------------
UTILITIES--2.0%
130,400 Enron Corporation 8,378,200 161
116,300 PacifiCorp 2,006,175 39
--------------------------------------------------------------------------------------
10,384,375 200
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $358,690,655) 513,523,815 9,858
- --------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS BLUE CHIP FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--2.3%
$ 3,200M BellSouth Telecommunications, Inc., 4.83%, 5/7/99 $ 3,184,542 $ 61
2,000M GTE Corp., 4.83%, 4/8/99 1,998,118 38
5,000M Hubbell, Inc., 4.85%, 4/29/99 4,981,131 96
2,000M Prudential Funding Corp., 4.83%, 4/15/99 1,996,237 38
--------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $12,160,028) 12,160,028 233
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $370,850,683) 100.9% 525,683,843 10,091
EXCESS OF LIABILITIES OVER OTHER ASSETS (.9) (4,758,842) (91)
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $520,925,001 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
16
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS UTILITIES INCOME FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--94.3%
CAPITAL GOODS--1.2%
16,400 General Electric Company $ 1,814,250 $ 118
--------------------------------------------------------------------------------------
COMMUNICATION SERVICES--33.6%
24,300 AT & T Corporation 1,939,444 126
79,800 Bell Atlantic Corporation 4,124,662 269
74,400 BellSouth Corporation 2,980,650 194
70,800 Century Telephone Enterprises, Inc. 4,973,700 324
54,400 Frontier Corporation 2,822,000 184
17,900 GTE Corporation 1,082,950 71
88,100 *ICG Communications, Inc. 1,773,012 116
108,600 *Intermedia Communications, Inc. 2,891,475 188
69,604 *MCI WorldCom, Inc. 6,164,304 402
45,000 *MetroNet Communications Corporation - Cl. "B" 2,475,000 161
55,115 *Qwest Communications International, Inc. 3,973,450 259
87,800 SBC Communications, Inc. 4,137,575 270
26,900 Sprint Corporation 2,639,562 172
15,200 Telecom Italia SpA (ADR) 1,586,500 103
17,300 Telecomunicacoes Brasileiras SA - Telebras (ADR) 1,394,812 91
44,200 Telephone and Data Systems, Inc. 2,497,300 163
17,000 Telmex (ADR) 1,113,500 73
53,100 US West, Inc. 2,923,819 191
--------------------------------------------------------------------------------------
51,493,715 3,357
--------------------------------------------------------------------------------------
CONSUMER STAPLES--1.5%
36,800 *MediaOne Group, Inc. 2,336,800 152
--------------------------------------------------------------------------------------
ENERGY--4.4%
19,300 Elf Aquitaine SA (ADR) 1,299,131 85
28,300 Murphy Oil Corporation 1,174,450 77
54,900 NUI Corporation 1,183,781 77
83,500 *Ocean Energy, Inc. 526,050 34
66,300 Valero Energy Corporation 1,649,212 107
32,400 YPF Sociedad Anonima (ADR) 1,022,625 67
--------------------------------------------------------------------------------------
6,855,249 447
--------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS UTILITIES INCOME FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
NATURAL GAS--2.1%
17,600 National Fuel Gas Company $ 690,800 $ 45
42,600 Peoples Energy Corporation 1,376,512 90
48,500 Washington Gas Light Company 1,097,312 72
--------------------------------------------------------------------------------------
3,164,624 207
--------------------------------------------------------------------------------------
UTILITIES--51.5%
31,400 American Water Works Company, Inc. 912,563 59
36,500 BCE, Inc. 1,617,406 105
59,900 BEC Energy 2,201,325 143
64,000 Coastal Corporation 2,112,000 138
37,500 Columbia Energy Group 1,959,375 128
46,900 Consolidated Edison, Inc. 2,125,156 138
9,100 CTG Resources, Inc. 219,538 14
102,700 DQE, Inc. 3,941,113 257
36,900 DTE Energy Company 1,418,344 92
40,800 Duke Energy Corporation 2,228,700 145
139,500 Dynegy, Inc. 1,961,719 128
47,700 El Paso Energy Corporation 1,559,194 102
48,000 Endesa SA (ADR) 1,194,000 78
33,300 Enersis SA (ADR) 892,856 58
46,000 Enron Corporation 2,955,500 193
51,800 FirstEnergy Corporation 1,447,163 94
61,500 FPL Group, Inc. 3,274,875 213
42,800 GPU, Inc. 1,596,975 104
107,200 Illinova Corporation 2,271,300 148
62,200 MDU Resources Group, Inc. 1,422,825 93
42,200 MidAmerican Energy Holdings Company 1,181,600 77
23,300 Montana Power Company 1,714,006 112
66,300 New Century Energies, Inc. 2,258,344 147
29,900 New Jersey Resources Corporation 1,063,319 69
141,300 Niagara Mohawk Holdings, Inc. 1,898,719 124
19,500 NICOR, Inc. 700,781 46
68,900 NIPSCO Industries, Inc. 1,860,300 121
44,600 Northern States Power Company 1,034,163 67
127,400 OGE Energy Corporation 2,874,463 187
66,000 PacifiCorp 1,138,500 74
65,000 Pinnacle West Capital Corporation 2,364,375 154
61,600 Potomac Electric Power Company 1,428,350 93
112,800 Public Service Company of New Mexico 1,917,600 125
--------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
73,300 Reliant Energy, Inc. $ 1,910,381 $ 125
117,833 Sempra Energy 2,260,921 147
41,500 Sierra Pacific Resources 1,460,281 95
66,500 Texas Utilities Company 2,772,219 181
79,700 Unicom Corporation 2,914,031 190
99,800 UtiliCorp United, Inc. 2,270,450 148
81,700 Western Resources, Inc. 2,180,369 142
114,100 Williams Companies, Inc. 4,506,950 294
--------------------------------------------------------------------------------------
79,022,049 5,148
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $114,809,688) 144,686,687 9,429
--------------------------------------------------------------------------------------
PREFERRED STOCKS--.3%
FINANCIAL
10,000 Pacific Telesis Financing I, 7.56% 251,875 16
10,000 Pacific Telesis Financing II, 8.50% 258,750 17
--------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $500,000) 510,625 33
--------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--1.2%
UTILITIES
109,200 Avista Corporation, $1.24, 11/1/2001
(cost $2,071,459) 1,870,050 122
--------------------------------------------------------------------------------------
CORPORATE BONDS--3.2%
COMMUNICATION SERVICES--1.0%
$ 500M AT & T Corp., 7.50%, 2006 543,337 35
500M BellSouth Telecommunications, Inc., 6.375%, 2004 512,730 34
500M United Telephone Co. of Florida, 6.25%, 2003 505,728 33
--------------------------------------------------------------------------------------
1,561,795 102
--------------------------------------------------------------------------------------
UTILITIES--2.2%
500M Baltimore Gas and Electric Co., 7.52%, 2000 510,350 33
500M Consolidated Edison, Inc., 6.625%, 2002 513,587 34
500M Duke Energy Corp., 5.875%, 2003 501,489 33
500M Idaho Power Co., 6.40%, 2003 509,488 33
700M Pennsylvania Power & Light Co., 6.875%, 2003 724,105 47
500M Union Electric Co., 6.75%, 2008 524,577 34
--------------------------------------------------------------------------------------
3,283,596 214
--------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $4,771,944) 4,845,391 316
--------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS UTILITIES INCOME FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--1.0%
$ 1,500M Walt Disney Co., 4.82%, 4/6/99 (cost $1,498,994) $ 1,498,994 $ 98
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $123,652,085) 100.0% 153,411,747 9,998
OTHER ASSETS, LESS LIABILITIES .0 27,157 2
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $153,438,904 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
20
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--99.0%
BASIC MATERIALS--1.5%
38,000 Louisiana-Pacific Corporation $ 707,750 $ 146
- -------------------------------------------------------------------------------------
CAPITAL GOODS--3.6%
16,500 Crane Company 399,094 82
13,800 CTS Corporation 682,237 141
35,000 Reynolds and Reynolds Company - Cl. "A" 665,000 137
- -------------------------------------------------------------------------------------
1,746,331 360
- -------------------------------------------------------------------------------------
COMMUNICATION SERVICES--9.5%
12,450 *AT&T Corp. - Liberty Media Group - Cl. "A" 655,181 135
9,000 Century Telephone Enterprises, Inc. 632,250 130
22,500 Cincinnati Bell, Inc. 504,844 104
17,800 *Commonwealth Telephone Enterprises, Inc. 655,262 135
40,000 *ICG Communications, Inc. 805,000 166
9,400 *MCI WorldCom, Inc. 832,487 172
15,000 *Western Wireless Corporation - Cl. "A" 543,750 112
- -------------------------------------------------------------------------------------
4,628,774 954
- -------------------------------------------------------------------------------------
CONSUMER CYCLICALS--9.2%
2,000 *Amazon.com, Inc. 344,375 71
14,000 *Bed Bath & Beyond, Inc. 511,000 105
17,400 *Best Buy Co., Inc. 904,800 187
15,700 Maytag Corporation 947,887 195
17,500 *Royal Group Technologies, Ltd. 432,031 89
20,200 *Saks, Inc. 525,200 108
32,400 Warnaco Group, Inc. - Cl. "A" 799,875 165
- -------------------------------------------------------------------------------------
4,465,168 920
- -------------------------------------------------------------------------------------
CONSUMER SERVICES--.9%
41,500 *GST Telecommunications, Inc. 453,906 94
- -------------------------------------------------------------------------------------
CONSUMER STAPLES--16.5%
12,900 *Beringer Wine Estates Holdings, Inc. - Cl. "B" 469,237 97
35,000 *Cinar Films, Inc. - Cl. "B" 805,000 166
28,500 CKE Restaurants, Inc. 562,875 116
9,000 Comcast Corporation - Spec. Cl. "A" 566,437 117
29,300 Earthgrains Company 650,094 134
25,000 McCormick & Company, Inc. 725,000 149
- -------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
16,600 Newell Rubbermaid, Inc. $ 788,500 $ 163
32,100 *Packaged Ice, Inc. 200,625 41
26,100 *Suiza Foods Corporation 879,244 181
10,000 Time Warner, Inc. 710,625 147
28,400 *Whole Foods Market, Inc. 976,250 201
34,100 *Zomax Optical Media, Inc. 686,263 142
- -------------------------------------------------------------------------------------
8,020,150 1,654
- -------------------------------------------------------------------------------------
ENERGY--2.8%
22,400 Apache Corporation 583,800 120
34,400 *Newfield Exploration Company 778,300 160
- -------------------------------------------------------------------------------------
1,362,100 280
- -------------------------------------------------------------------------------------
FINANCIAL--10.8%
24,000 Charter One Financial, Inc. 692,626 143
26,800 Dime Bancorp, Inc. 621,425 128
46,600 *Golden State Bancorp, Inc. 1,036,850 214
22,700 Protective Life Corporation 859,763 177
30,000 *Scottish Annuity & Life Holdings, Ltd. 292,500 60
15,600 SLM Holding Corporation 651,300 134
6,600 Wachovia Corporation 535,838 110
17,300 Westamerica Bancorporation 547,113 113
- -------------------------------------------------------------------------------------
5,237,415 1,079
- -------------------------------------------------------------------------------------
HEALTHCARE--13.0%
74,700 *American Oncology Resources, Inc. 672,300 139
12,601 *Genzyme Corporation 635,563 131
15,500 *HCR Manor Care, Inc. 353,594 73
22,900 *Health Management Associates, Inc. - Cl. "A" 279,094 58
44,600 *Healthsouth Corporation 462,725 95
32,700 Jones Pharma, Inc. 1,136,325 234
15,600 Teva Pharmaceutical Industries, Ltd. (ADR) 740,025 153
19,000 *Trigon Healthcare, Inc. 650,750 134
21,500 *Universal Health Services, Inc. 929,875 192
60,000 *Warner Chilcott Laboratories (ADR) 420,000 87
- -------------------------------------------------------------------------------------
6,280,251 1,296
- -------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY--25.9%
9,000 *America Online, Inc. $ 1,314,000 $ 271
11,500 Autodesk, Inc. 465,031 96
7,000 *Cisco Systems, Inc. 766,938 158
11,000 *Comverse Technology, Inc. 935,000 193
17,400 CyberShop International, Inc. 252,300 52
8,700 *EMC Corporation 1,111,425 229
24,700 *Flextronics International, Ltd. 1,259,738 260
10,400 *Galileo Technology, Ltd. 304,200 63
5,000 *Go2Net, Inc. 663,125 137
34,300 *IMRglobal Corporation 608,825 126
3,000 Intel Corporation 357,375 74
8,500 *KLA Tencor Corporation 412,781 85
16,600 *Mercury Interactive Corporation 591,375 122
2,000 *MiningCo.com, Inc. 179,000 37
15,000 *Orckit Communications, Ltd. 312,188 64
20,000 *PRI Automation, Inc. 420,000 87
38,100 *Symantec Corporation 645,319 133
20,000 *Verio, Inc. 922,500 190
20,000 *Visio Corporation 562,500 116
11,600 *Xilinx, Inc. 470,525 97
- -------------------------------------------------------------------------------------
12,554,145 2,590
- -------------------------------------------------------------------------------------
UTILITIES--5.3%
22,100 American Water Works Company, Inc. 642,281 132
19,500 BEC Energy 716,625 148
33,500 PacifiCorp 577,875 119
23,900 Western Resources, Inc. 637,831 132
- -------------------------------------------------------------------------------------
2,574,612 531
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $40,008,442) 99.0% 48,030,602 9,904
OTHER ASSETS, LESS LIABILITIES 1.0 464,239 96
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $48,494,841 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
23
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS SPECIAL SITUATIONS FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--96.6%
BASIC MATERIALS--1.9%
161,000 *ChiRex, Inc. $ 3,944,500 $ 196
--------------------------------------------------------------------------------------
COMMUNICATION SERVICES--7.3%
116,500 *Allegiance Telecom, Inc. 2,912,500 145
38,900 *AT&T Corp. - Liberty Media Group - Cl. "A" 2,047,113 102
69,900 *Commonwealth Telephone Enterprises, Inc. 2,573,194 128
193,200 *ICG Communications, Inc. 3,888,150 193
190,300 *US LEC Corporation - Cl. "A" 3,258,887 162
--------------------------------------------------------------------------------------
14,679,844 730
--------------------------------------------------------------------------------------
CONSUMER CYCLICALS--11.5%
68,800 *Fossil, Inc. 2,051,100 102
160,800 Fred's, Inc. 1,768,800 88
120,000 *Hibbett Sporting Goods, Inc. 2,505,000 125
448,900 Interface, Inc. 4,320,662 215
105,900 Kellwood Company 2,336,419 116
63,600 *NCO Group, Inc. 2,353,200 117
88,900 Ogden Corporation 2,139,156 106
59,200 *Saks, Inc. 1,539,200 77
90,200 *Travis Boats & Motors, Inc. 1,623,600 81
264,000 Wolverine World Wide, Inc. 2,508,000 125
--------------------------------------------------------------------------------------
23,145,137 1,152
--------------------------------------------------------------------------------------
CONSUMER STAPLES--17.2%
63,900 *Beringer Wine Estates Holdings, Inc. - Cl. "B" 2,324,362 116
208,700 *Cinar Films, Inc. - Cl. "B" 4,800,100 239
126,900 *Citadel Communications Corporation 4,219,425 210
130,100 CKE Restaurants, Inc. 2,569,475 128
132,800 Earthgrains Company 2,946,500 147
310,200 *Four Media Company 1,861,200 93
64,600 *Jones Intercable, Inc. - Cl. "A" 2,547,662 127
248,800 *Packaged Ice, Inc. 1,555,000 77
99,100 *Pre-Paid Legal Services, Inc. 2,427,950 121
119,000 *Suiza Foods Corporation 4,008,812 199
155,100 *Whole Foods Market, Inc. 5,331,562 265
--------------------------------------------------------------------------------------
34,592,048 1,722
--------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY--1.4%
123,900 *Newfield Exploration Company $ 2,803,237 $ 139
--------------------------------------------------------------------------------------
ENERGY SOURCES--.4%
30,200 *Barrett Resources Corporation 756,888 38
--------------------------------------------------------------------------------------
FINANCIAL--8.6%
83,439 Charter One Financial, Inc. 2,407,999 120
108,400 Chittenden Corporation 2,886,150 143
92,000 Dime Bancorp, Inc. 2,133,250 106
141,900 HCC Insurance Holdings, Inc. 2,731,575 136
194,700 Hooper Holmes, Inc. 3,042,188 151
142,000 Sterling Bancshares, Inc. 1,473,250 73
81,100 Westamerica Bancorporation 2,564,788 128
--------------------------------------------------------------------------------------
17,239,200 857
--------------------------------------------------------------------------------------
HEALTHCARE--21.2%
124,900 *Alternative Living Services, Inc. 2,498,000 124
421,600 *American Oncology Resources, Inc. 3,794,400 189
219,500 *Dura Pharmaceuticals, Inc. 3,100,438 154
186,000 *IMPATH, Inc. 4,557,000 227
108,200 *Incyte Pharmaceuticals, Inc. 2,170,763 108
147,900 Jones Pharma, Inc. 5,139,525 256
326,700 *Kensey Nash Corporation 2,572,763 128
123,800 *Molecular Devices Corporation 3,342,600 166
111,000 *Pediatrix Medical Group, Inc. 3,121,875 155
243,900 *Province Healthcare Company 4,512,150 224
170,800 *Sangstat Medical Corporation 2,113,650 105
58,600 Teva Pharmaceutical Industries, Ltd. (ADR) 2,779,838 138
88,900 *Trigon Healthcare, Inc. 3,044,825 151
--------------------------------------------------------------------------------------
42,747,827 2,125
--------------------------------------------------------------------------------------
TECHNOLOGY--27.1%
45,500 *Comverse Technology, Inc. 3,867,500 192
288,100 *Condor Technology Solutions, Inc. 2,736,950 136
97,000 *DII Group, Inc. 2,837,250 141
21,000 *EMC Corporation 2,682,750 133
59,400 *Etec Systems, Inc. 1,748,588 87
94,900 *Flextronics International, Ltd. 4,839,900 241
44,000 *Galileo Technology, Ltd. 1,287,000 64
292,100 *IMRglobal Corporation 5,184,775 258
--------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS SPECIAL SITUATIONS FUND
March 31, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
81,600 *Mercury Interactive Corporation $ 2,907,000 $ 145
26,800 *New Era of Networks, Inc. 1,815,700 90
159,800 *NICE-Systems, Ltd. 4,714,100 234
252,900 *Orckit Communications, Ltd. 5,263,481 262
138,800 *Peapod, Inc. 1,518,125 75
261,100 *Saville Systems Ireland PLC (ADR) 3,198,475 159
355,900 *Software AG Systems, Inc. 2,980,663 148
80,300 *Symantec Corporation 1,360,081 68
54,000 *Synopsys, Inc. 2,902,500 144
18,800 *Verio, Inc. 867,150 43
61,800 *Visio Corporation 1,738,125 86
--------------------------------------------------------------------------------------
54,450,113 2,706
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $185,153,019) 194,358,794 9,665
--------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.7%
$ 1,000M Prudential Funding Corp., 4.83%, 4/15/99 998,118 50
6,400M Walt Disney Co., 4.82%, 4/6/99 6,395,710 318
--------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $7,393,828) 7,393,828 368
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $192,546,847) 100.3% 201,752,622 10,033
EXCESS OF LIABILITIES OVER OTHER ASSETS (.3) (658,161) (33)
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $201,094,461 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
26
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS FOCUSED EQUITY FUND
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--86.4%
BASIC MATERIALS--1.9%
7,200 Monsanto Company $ 330,750 $ 195
- -------------------------------------------------------------------------------------
CAPITAL GOODS--10.7%
25,300 Tyco International, Ltd. 1,815,275 1,068
- -------------------------------------------------------------------------------------
COMMUNICATION SERVICES--22.3%
4,400 AT & T Corporation 351,175 207
19,800 *AT&T Corp. - Liberty Media Group - Cl. "A" 1,041,975 613
10,900 *L-3 Communications Holdings, Inc. 504,125 297
21,400 *MCI WorldCom, Inc. 1,895,238 1,115
- -------------------------------------------------------------------------------------
3,792,513 2,232
- -------------------------------------------------------------------------------------
CONSUMER STAPLES--31.8%
4,600 Comcast Corporation - Spec. Cl. "A" 289,513 170
12,800 McKesson HBOC, Inc. 844,800 497
8,900 *MediaOne Group, Inc. 565,150 332
34,500 Nielsen Media Research, Inc. 851,719 501
25,000 Seagram Company, Ltd. 1,250,000 735
22,700 Time Warner, Inc. 1,613,119 949
- -------------------------------------------------------------------------------------
5,414,301 3,184
- -------------------------------------------------------------------------------------
FINANCIAL--12.0%
2,700 American Express Company 317,250 187
4,700 American International Group, Inc. 566,937 333
4,800 Finova Group, Inc. 249,000 146
3,300 Freddie Mac 188,512 111
1,500 M & T Bank Corporation 718,500 423
- -------------------------------------------------------------------------------------
2,040,199 1,200
- -------------------------------------------------------------------------------------
TECHNOLOGY--7.7%
4,600 Computer Associates International, Inc. 163,588 96
1,500 Intel Corporation 178,687 105
8,900 *Microsoft Corporation 797,662 469
3,200 *Vitesse Semiconductor Corporation 162,000 95
- -------------------------------------------------------------------------------------
1,301,937 765
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $14,560,421) 86.4% 14,694,975 8,644
OTHER ASSETS, LESS LIABILITIES 13.6 2,305,773 1,356
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $17,000,748 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
27
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--94.7%
UNITED STATES--34.2%
50,500 Abbott Laboratories $ 2,364,031 $ 72
29,400 Alcoa, Inc. 1,210,913 37
23,800 AlliedSignal, Inc. 1,170,663 36
14,750 American General Corporation 1,039,875 32
34,642 American International Group, Inc. 4,178,691 127
17,950 AT & T Corporation 1,432,634 44
26,400 Baxter International, Inc. 1,742,400 53
31,100 Chevron Corporation 2,750,406 84
44,250 *Cisco Systems, Inc. 4,848,141 148
55,575 Citigroup, Inc. 3,549,853 108
38,000 Columbia/HCA Healthcare Corporation 719,625 22
49,150 CVS Corporation 2,334,625 71
25,400 Du Pont (E.I.) de Nemours & Company 1,474,788 45
43,300 Exxon Corporation 3,055,356 93
28,200 First Data Corporation 1,205,550 37
37,700 Gannett Company, Inc. 2,375,100 72
18,900 General Electric Company 2,090,813 64
39,500 Gillette Company 2,347,781 72
19,825 Hartford Financial Services Group 1,126,308 34
42,650 Hewlett-Packard Company 2,892,203 88
67,800 Home Depot, Inc. 4,220,550 129
22,440 Intel Corporation 2,673,165 82
15,700 International Business Machines Corporation 2,782,825 85
41,000 Johnson & Johnson 3,841,188 117
23,725 Kimberly-Clark Corporation 1,137,317 35
27,600 Marsh & McLennan Companies, Inc. 2,047,575 62
73,200 McDonald's Corporation 3,316,875 101
45,712 *MCI WorldCom, Inc. 4,048,369 123
60,600 *Microsoft Corporation 5,431,275 166
113,800 *Mirage Resorts, Inc. 2,418,250 74
15,400 Pfizer, Inc. 2,136,750 65
50,000 Pharmacia & Upjohn, Inc. 3,118,750 95
27,600 Philip Morris Companies, Inc. 971,175 30
21,000 Praxair, Inc. 757,313 23
30,180 Procter & Gamble Company 2,955,754 90
60,800 SBC Communications, Inc. 2,865,200 87
28,600 Schlumberger, Ltd. 1,721,363 52
42,700 Servicemaster Company 867,344 26
94,825 Southwest Airlines Company 2,868,456 87
--------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED STATES (continued)
57,500 State Street Corporation $ 4,725,781 $ 144
14,900 Texas Instruments, Inc. 1,478,825 45
16,525 Tyco International, Ltd. 1,185,669 36
44,400 U.S. Bancorp 1,512,375 46
52,000 Wal-Mart Stores, Inc. 4,793,750 146
55,100 Walt Disney Company 1,714,988 52
39,500 Warner-Lambert Company 2,614,406 80
--------------------------------------------------------------------------------------
112,115,044 3,417
--------------------------------------------------------------------------------------
UNITED KINGDOM--12.0%
130,100 Bank of Scotland 1,728,468 53
46,400 Barclays PLC 1,334,032 41
239,741 BP Amoco PLC 4,086,867 125
171,100 British Airways PLC 1,186,308 36
116,445 British Telecommunications PLC 1,900,449 58
274,700 BTR Siebe PLC 1,211,722 37
88,700 Cadbury Schweppes PLC 1,287,264 39
220,208 Diageo PLC 2,474,153 75
38,600 Dixons Group PLC 818,156 25
130,500 Granada Group PLC 2,643,860 81
24,800 HSBC Holdings PLC 777,640 24
32,900 HSBC Holdings PLC (75P) 1,061,147 32
37,000 Imperial Chemical Industries PLC 330,601 10
87,600 National Westminster Bank PLC 2,019,373 62
143,000 Nycomed Amersham PLC 1,246,562 38
34,900 Pearson PLC 794,944 24
69,300 Reckitt & Colman PLC 750,095 23
231,400 Scottish Power PLC 2,017,165 61
352,516 Smithkline Beecham PLC 5,084,610 155
144,000 Standard Chartered PLC 2,035,180 62
251,907 Vodafone Group PLC 4,680,581 143
--------------------------------------------------------------------------------------
39,469,177 1,204
--------------------------------------------------------------------------------------
FRANCE--8.8%
8,310 Alcatel Alsthom 955,462 29
23,090 Axa-Uap 3,061,154 93
21,180 Banque Nationale de Paris 1,842,994 56
7,990 Casino Guichard Perrachon 709,058 22
14,000 Compagnie de Saint Gobain 2,221,817 68
--------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
FRANCE (continued)
49,600 Michelin (CGDE) - Cl. "B" $ 2,224,926 $ 68
28,820 Paribas 3,217,195 98
6,900 Societe Generale 1,325,965 40
19,020 Societe Nationale Elf Aquitane SA 2,583,176 79
11,800 *STMicroelectronics NV-NY Shs. 1,146,075 35
14,080 Suez Lyonnaise des Eaux 2,605,412 79
24,777 Total SA - Cl. "B" 3,052,089 93
16,430 Vivendi SA 4,042,451 123
--------------------------------------------------------------------------------------
28,987,774 883
--------------------------------------------------------------------------------------
JAPAN--6.0%
36,000 Bridgestone Corporation 918,011 28
91,000 Eisai Company, Ltd. 1,901,756 58
37,000 Fuji Photo Film 1,399,645 43
12,900 Mabuchi Motor Company, Ltd. 960,719 29
27,200 Matsumotokiyoshi Company, Ltd. 1,198,885 37
16,000 Matsushita Communication Industrial Co., Ltd. 1,082,158 33
59,000 NEC Corporation 709,913 22
10,400 Nichiei Co., Ltd. 931,723 28
35 NTT Mobile Communication Network, Inc. 1,728,869 53
116,000 Olympus Optical Company, Ltd. 1,527,991 47
9,000 Rohm Company, Ltd. 1,075,319 33
24,200 Sony Corporation 2,237,524 68
30,000 Takeda Chemical Industries 1,162,712 35
15,900 Takefuji Corporation 1,221,734 37
158,000 Toshiba Corporation 1,079,304 33
20,000 Yamanouchi Pharmaceutical Co., Ltd. 633,285 19
--------------------------------------------------------------------------------------
19,769,548 603
--------------------------------------------------------------------------------------
GERMANY--4.5%
9,300 Allianz AG 2,831,359 86
53,350 Bayer AG 1,998,604 61
18,570 *DaimlerChrysler AG 1,615,883 49
40,230 Hoechst AG 1,743,807 53
30,630 Mannesmann AG 3,911,962 119
38,480 Siemens AG 2,571,512 78
--------------------------------------------------------------------------------------
14,673,127 446
--------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS--4.4%
30,300 Gucci Group NV - NY Reg. Shs. $ 2,439,150 $ 74
52,969 ING Groep NV 2,919,311 89
75,900 Koninklijke Ahold NV 2,908,928 89
34,500 Koninklijke Philips Electronics NV 2,810,226 86
20,200 Royal Dutch Pertroleum Company 1,074,040 33
30,300 Unilever NV - CVA 2,105,010 64
--------------------------------------------------------------------------------------
14,256,665 435
--------------------------------------------------------------------------------------
AUSTRALIA--4.0%
222,671 AMP, Ltd. 2,428,451 74
289,263 Australian & New Zealand Banking Group, Ltd. 2,091,567 64
86,090 Coles Myer, Ltd. 465,208 14
174,129 News Corporation, Ltd. 1,283,482 39
17,500 News Corporation, Ltd. (ADR) 516,250 16
2,077,356 Pasminco, Ltd. 1,744,761 53
91,740 Rio Tinto, Ltd. 1,276,687 39
309,014 Telstra Corporation, Ltd. I/R 1,610,900 49
545,145 WMC, Ltd. 1,728,181 53
--------------------------------------------------------------------------------------
13,145,487 401
--------------------------------------------------------------------------------------
ITALY--3.5%
365,800 *ENI SpA 2,330,014 71
634,922 Telecom Italia SpA 6,744,944 206
437,900 Unicredito Italiano SpA 2,363,784 72
--------------------------------------------------------------------------------------
11,438,742 349
--------------------------------------------------------------------------------------
SPAIN--3.0%
76,500 Banco Santander SA 1,569,199 48
67,600 Endesa SA 1,706,295 52
69,600 Endesa SA (ADR) 1,731,300 53
54,588 Telefonica SA 2,315,486 71
18,697 Telefonica SA (ADR) 2,388,542 73
--------------------------------------------------------------------------------------
9,710,822 297
--------------------------------------------------------------------------------------
CANADA--2.9%
65,800 Canadian Imperial Bank 1,687,626 51
39,000 Canadian National Railway Company 2,169,375 66
52,900 *Newbridge Networks Corporation 1,640,012 50
--------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
CANADA (continued)
41,500 Seagram Company, Ltd. $ 2,087,619 $ 64
40,300 Seagram Company, Ltd. - NY Reg. Shs. 2,015,000 61
--------------------------------------------------------------------------------------
9,599,632 292
--------------------------------------------------------------------------------------
SWITZERLAND--2.8%
3,620 Credit Suisse Group - Reg. Shs. 675,035 21
1,050 Holderbank Financiere Glarus AG 1,174,076 36
676 Nestle AG 1,228,136 37
793 Novartis AG 1,291,217 39
580 Novartis AG - Reg. Shares 940,869 29
110 Roche Holdings AG - Genussschein 1,341,463 41
6,690 *Swisscom AG 2,612,540 80
--------------------------------------------------------------------------------------
9,263,336 283
--------------------------------------------------------------------------------------
SWEDEN--2.4%
7,400 Hennes & Mauritz AB - Cl. "B" 557,947 17
384,980 Nordbanken Holding AB 2,200,421 67
66,280 Pharmacia & Upjohn (Swedish Dep. Shs.) 4,167,185 127
32,040 Telefonaktiebolaget LM Ericsson - Cl. "B" 779,278 24
--------------------------------------------------------------------------------------
7,704,831 235
--------------------------------------------------------------------------------------
FINLAND--1.2%
25,400 Nokia OYJ - Cl. "A" 4,088,596 125
--------------------------------------------------------------------------------------
IRELAND--1.0%
190,150 Allied Irish Banks PLC 3,278,324 100
--------------------------------------------------------------------------------------
HONG KONG--1.0%
302,000 Cheung Kong Holdings, Ltd. 2,299,215 70
100,000 First Pacific Company, Ltd. 60,003 2
312,000 New World Development Company, Ltd. 613,967 19
39,000 Sun Hung Kai Properties 291,886 9
--------------------------------------------------------------------------------------
3,265,071 100
--------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
BRAZIL--.8%
41,500 *Embratel Participacoes SA (ADR) $ 692,531 $ 21
12,700 Telecomunicacoes Brasileiras SA - Telebras (ADR) 1,023,938 31
47,100 Telesp Participacoes S.A. (ADR) 971,438 30
--------------------------------------------------------------------------------------
2,687,907 82
--------------------------------------------------------------------------------------
DENMARK--.5%
23,820 Unidanmark A/S - Cl. "A" 1,626,175 50
--------------------------------------------------------------------------------------
NEW ZEALAND--.4%
35,000 Telecom Corporation of New Zealand, Ltd. (ADR) 1,365,000 42
--------------------------------------------------------------------------------------
MEXICO--.4%
28,600 *Grupo Televisa SA (GDR) 897,325 27
23,400 Panamerican Beverages, Inc. (ADR) - Cl. "A" 410,963 13
--------------------------------------------------------------------------------------
1,308,288 40
--------------------------------------------------------------------------------------
CHINA--.3%
592,800 *China Telecom, Ltd. 986,776 30
--------------------------------------------------------------------------------------
ARGENTINA--.3%
30,800 YPF Sociedad Anonima (ADR) 972,125 30
--------------------------------------------------------------------------------------
SINGAPORE--.3%
139,000 Overseas Chinese Banking Corporation 940,874 29
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $230,350,272) 310,653,321 9,473
--------------------------------------------------------------------------------------
PREFERRED STOCKS--.4%
BRAZIL
1,445,900 Banco Itau SA 733,497 22
3,453,600 Petroleo Brasileiro SA 479,275 15
23,000 *Vale Do Rio Doce - Cl. "B" -- --
--------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $1,101,369) 1,212,772 37
- --------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS--.0%
THAILAND
5,800 *Siam Commercial Bank (exp. 12/31/02) (cost $0) $ -- $ --
--------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--4.5%
$14,795M SBC Warburg Dillon Read, Inc., 4.88%, 4/1/99,
(collateralized by U.S. Treasury Bonds, due
2/15/27, valued at $15,124,423)
(cost $14,795,000) 14,795,000 451
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $246,246,641) 99.6% 326,661,093 9,961
OTHER ASSETS, LESS LIABILITIES .4 1,286,242 39
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $327,947,335 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
34
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS GLOBAL FUND, INC.
March 31, 1999
Sector diversification of the portfolio was as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PERCENTAGE
SECTOR OF NET ASSETS VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Banks.................................. 12.9% $ 42,296,505
Drugs.................................. 9.7 31,976,602
Telephone.............................. 9.1 29,971,971
Retail................................. 6.2 20,446,257
Energy Sources......................... 6.2 20,383,348
Media.................................. 5.8 18,890,277
Insurance.............................. 5.2 17,204,273
Communication Equipment................ 4.1 13,393,647
Travel & Leisure....................... 3.8 12,433,749
Food/Beverage/Tobacco.................. 3.2 10,474,310
Electronics............................ 3.0 9,893,523
Metals & Minerals...................... 2.8 9,356,435
Household Products..................... 2.8 9,295,957
Medical Products....................... 2.1 6,880,984
Electrical Equipment................... 2.1 6,834,766
Computers & Office Equipment........... 2.1 6,754,332
Pipeline............................... 2.0 6,647,863
Software Services...................... 2.0 6,636,825
Electric Utilities..................... 1.7 5,454,760
Business Services...................... 1.5 4,787,669
Automotive............................. 1.4 4,758,820
Entertainment Products................. 1.1 3,637,169
Chemicals.............................. .8 2,562,702
Transportation......................... .7 2,169,375
Financial Services..................... .7 2,153,457
Energy Services........................ .5 1,721,363
Health Services........................ .5 1,586,969
Machinery & Manufacturing.............. .4 1,185,669
Aerospace/Defense...................... .4 1,170,663
Real Estate Companies.................. .3 905,853
Repurchase Agreement................... 4.5 14,795,000
- --------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS 99.6 326,661,093
OTHER ASSETS, LESS LIABILITIES .4 1,286,242
- --------------------------------------------------------------------
NET ASSETS 100.0% $327,947,335
- --------------------------------------------------------------------
- --------------------------------------------------------------------
</TABLE>
See notes to financial statements
35
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS
March 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
GROWTH &
TOTAL RETURN INCOME
- -------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $ 78,869,375 $292,588,921
------------ ------------
------------ ------------
At value (Note 1A)................... $ 93,841,396 $419,824,163
Cash (overdraft)....................... 458,080 584,502
Receivables:
Investment securities sold........... 524,825 2,294,482
Dividends and interest............... 505,182 482,486
Shares sold.......................... 260,537 2,146,552
Forward currency contracts (Note
4)................................. -- --
From investment adviser.............. -- --
Other assets........................... -- --
------------ ------------
Total Assets........................... 95,590,020 425,332,185
------------ ------------
LIABILITIES
Payables:
Investment securities purchased...... -- 6,188,805
Shares redeemed...................... 188,280 736,871
Accrued advisory fee................... 58,821 251,416
Accrued expenses....................... 34,250 90,405
------------ ------------
Total Liabilities...................... 281,351 7,267,497
------------ ------------
NET ASSETS............................. $ 95,308,669 $418,064,688
------------ ------------
------------ ------------
NET ASSETS CONSIST OF:
Capital paid in........................ $ 77,893,203 $270,384,048
Accumulated net investment income
(deficit)............................ 513,596 33,473
Accumulated net realized gain (loss) on
investments and foreign currency
transactions......................... 1,929,849 20,411,925
Net unrealized appreciation of
investments and foreign currency
transactions......................... 14,972,021 127,235,242
------------ ------------
Total.................................. $ 95,308,669 $418,064,688
------------ ------------
------------ ------------
NET ASSETS:
Class A.............................. $ 88,506,575 $352,179,293
Class B.............................. $ 6,802,094 $ 65,885,395
SHARES OUTSTANDING (Note 5):
Class A.............................. 5,993,036 22,872,351
Class B.............................. 465,988 4,344,874
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE - CLASS A................. $ 14.77 $ 15.40
------ ------
------ ------
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A
(Net asset value/.9375)*............. $ 15.75 $ 16.43
------ ------
------ ------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE -
CLASS B (Note 5)..................... $ 14.60 $ 15.16
------ ------
------ ------
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
36
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
UTILITIES MID-CAP SPECIAL FOCUSED
BLUE CHIP INCOME OPPORTUNITY SITUATIONS EQUITY GLOBAL
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $370,850,683 $123,652,085 $40,008,442 $192,546,847 $14,560,421 $246,246,641
------------ ------------ ----------- ---------- ----------- ------------
------------ ------------ ----------- ---------- ----------- ------------
At value (Note 1A)................... $525,683,843 $153,411,747 $48,030,602 $201,752,622 $14,694,975 $326,661,093
Cash (overdraft)....................... 452,564 1,992,896 408,821 839,200 2,109,966 (108,742)
Receivables:
Investment securities sold........... 2,893,043 383,849 1,696,541 682,029 280,594 12,833,941
Dividends and interest............... 570,524 465,582 27,656 47,138 1,684 858,467
Shares sold.......................... 1,029,074 205,235 116,159 273,079 2,528,342 234,655
Forward currency contracts (Note
4)................................. -- -- -- -- -- 7,745
From investment adviser.............. -- -- -- -- 29,452 --
Other assets........................... -- -- -- -- -- 20,335
------------ ------------ ----------- ---------- ----------- ------------
Total Assets........................... 530,629,048 156,459,309 50,279,779 203,594,068 19,645,013 340,507,494
------------ ------------ ----------- ---------- ----------- ------------
LIABILITIES
Payables:
Investment securities purchased...... 8,167,924 2,724,220 1,522,982 945,242 2,611,430 11,334,235
Shares redeemed...................... 1,085,443 150,296 210,407 1,349,151 8,500 782,823
Accrued advisory fee................... 324,968 96,110 29,284 126,520 2,511 268,334
Accrued expenses....................... 125,712 49,779 22,265 78,694 21,824 174,767
------------ ------------ ----------- ---------- ----------- ------------
Total Liabilities...................... 9,704,047 3,020,405 1,784,938 2,499,607 2,644,265 12,560,159
------------ ------------ ----------- ---------- ----------- ------------
NET ASSETS............................. $520,925,001 $153,438,904 $48,494,841 $201,094,461 $17,000,748 $327,947,335
------------ ------------ ----------- ---------- ----------- ------------
------------ ------------ ----------- ---------- ----------- ------------
NET ASSETS CONSIST OF:
Capital paid in........................ $339,804,527 $119,415,972 $38,145,049 $173,503,057 $16,882,645 $235,477,063
Accumulated net investment income
(deficit)............................ (159,411) 649,635 (144,438) (958,354) (1,673) (885,573)
Accumulated net realized gain (loss) on
investments and foreign currency
transactions......................... 26,446,725 3,613,635 2,472,070 19,343,983 (14,778) 12,940,652
Net unrealized appreciation of
investments and foreign currency
transactions......................... 154,833,160 29,759,662 8,022,160 9,205,775 134,554 80,415,193
------------ ------------ ----------- ---------- ----------- ------------
Total.................................. $520,925,001 $153,438,904 $48,494,841 $201,094,461 $17,000,748 $327,947,335
------------ ------------ ----------- ---------- ----------- ------------
------------ ------------ ----------- ---------- ----------- ------------
NET ASSETS:
Class A.............................. $457,880,534 $135,677,153 $42,399,735 $182,227,887 $14,275,573 $312,102,314
Class B.............................. $ 63,044,467 $ 17,761,751 $ 6,095,106 $18,866,574 $ 2,725,175 $ 15,845,021
SHARES OUTSTANDING (Note 5):
Class A.............................. 17,111,146 17,570,165 2,148,178 8,631,710 1,415,182 40,115,379
Class B.............................. 2,395,344 2,330,761 317,772 922,098 270,188 2,088,908
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE - CLASS A................. $ 26.76 $ 7.72 $ 19.74 $ 21.11 $ 10.09 $ 7.78
------ ----- ----------- ---------- ----------- -----
------ ----- ----------- ---------- ----------- -----
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A
(Net asset value/.9375)*............. $ 28.54 $ 8.23 $ 21.06 $ 22.52 $ 10.76 $ 8.30
------ ----- ----------- ---------- ----------- -----
------ ----- ----------- ---------- ----------- -----
NET ASSET VALUE AND OFFERING PRICE PER
SHARE -
CLASS B (Note 5)..................... $ 26.32 $ 7.62 $ 19.18 $ 20.46 $ 10.09 $ 7.59
------ ----- ----------- ---------- ----------- -----
------ ----- ----------- ---------- ----------- -----
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
37
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS
Six Months Ended March 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
TOTAL GROWTH &
RETURN INCOME
- ------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends............................ $ 336,102 $ 2,352,577
Interest............................. 1,190,161 659,694
----------- ------------
Total income........................... 1,526,263 3,012,271
----------- ------------
Expenses (Notes 1 and 3):
Advisory fee......................... 433,449 1,355,681
Shareholder servicing costs.......... 121,279 470,712
Distribution plan expenses - Class
A.................................. 121,732 463,641
Distribution plan expenses - Class
B.................................. 27,678 274,918
Reports and notices to
shareholders....................... 10,643 23,342
Professional fees.................... 13,844 57,821
Custodian fees and expenses.......... 13,310 14,418
Other expenses....................... 7,008 39,753
----------- ------------
Total expenses......................... 748,943 2,700,286
Less: Expenses waived or assumed....... (108,362) --
Custodian fees paid indirectly.... (7,123) --
----------- ------------
Net expenses........................... 633,458 2,700,286
----------- ------------
Net investment income (loss)........... 892,805 311,985
----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS (Note 2):
Net realized gain (loss) on investments
and foreign currency transactions.... 1,935,350 20,413,898
Net unrealized appreciation of
investments and foreign currency
transactions......................... 8,096,265 58,083,448
----------- ------------
Net gain from investments and foreign
currency transactions................ 10,031,615 78,497,346
----------- ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $10,924,420 $ 78,809,331
----------- ------------
----------- ------------
</TABLE>
* From March 22, 1999 (commencement of operations) to March 31, 1999.
+ Net of $77,431 foreign taxes withheld.
See notes to financial statements
38
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
FOCUSED
UTILITIES MID-CAP SPECIAL EQUITY
BLUE CHIP INCOME OPPORTUNITY SITUATIONS * GLOBAL
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends............................ $2,814,167 $ 2,052,344 $ 130,398 $ 349,512 $ 1,684 $ 1,698,910+
Interest............................. 624,293 288,750 65,250 332,616 2,847 365,938
--------- ----------- ----------- ---------- ------- --------------------
Total income........................... 3,438,460 2,341,094 195,648 682,128 4,531 2,064,848
--------- ----------- ----------- ---------- ------- --------------------
Expenses (Notes 1 and 3):
Advisory fee......................... 2,065,347 551,833 214,572 1,007,174 2,511 1,536,802
Shareholder servicing costs.......... 580,815 194,554 76,908 425,346 21,643 490,236
Distribution plan expenses - Class
A.................................. 641,612 196,189 56,473 277,501 856 442,489
Distribution plan expenses - Class
B.................................. 283,176 81,815 26,330 92,567 493 70,706
Reports and notices to
shareholders....................... 47,297 12,839 3,602 32,061 -- 38,279
Professional fees.................... 50,393 17,120 10,929 23,172 -- 38,352
Custodian fees and expenses.......... 20,372 19,012 13,726 23,685 -- 159,617
Other expenses....................... 46,535 18,046 1,939 10,543 -- 28,232
--------- ----------- ----------- ---------- ------- --------------------
Total expenses......................... 3,735,547 1,091,408 404,479 1,892,049 25,503 2,804,713
Less: Expenses waived or assumed....... (250,000) -- (53,643) (244,001) (19,299) --
Custodian fees paid indirectly.... (4,865) (13,775) (10,750) (7,566) -- --
--------- ----------- ----------- ---------- ------- --------------------
Net expenses........................... 3,480,682 1,077,633 340,086 1,640,482 6,204 2,804,713
--------- ----------- ----------- ---------- ------- --------------------
Net investment income (loss)........... (42,222) 1,263,461 (144,438) (958,354) (1,673) (739,865)
--------- ----------- ----------- ---------- ------- --------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS (Note 2):
Net realized gain (loss) on investments
and foreign currency transactions.... 26,500,363 4,214,731 6,323,216 24,403,573 (14,778) 12,987,504
Net unrealized appreciation of
investments and foreign currency
transactions......................... 69,703,506 4,785,663 6,379,233 8,612,434 134,554 53,438,629
--------- ----------- ----------- ---------- ------- --------------------
Net gain from investments and foreign
currency transactions................ 96,203,869 9,000,394 12,702,449 33,016,007 119,776 66,426,133
--------- ----------- ----------- ---------- ------- --------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $96,161,647 $10,263,855 $12,558,011 $32,057,653 $118,103 $ 65,686,268
--------- ----------- ----------- ---------- ------- --------------------
--------- ----------- ----------- ---------- ------- --------------------
</TABLE>
* From March 22, 1999 (commencement of operations) to March 31, 1999.
+ Net of $77,431 foreign taxes withheld.
See notes to financial statements
39
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------
10/1/98 1/1/98 1/1/97
TO TO TO
3/31/99 9/30/98 12/31/97
- --------------------------------------- ----------- ----------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ 892,805 $ 1,191,123 $ 1,214,000
Net realized gain on investments..... 1,935,350 6,468,239 5,053,532
Net unrealized appreciation
(depreciation) of investments...... 8,096,265 (4,386,811) 3,974,842
----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 10,924,420 3,272,551 10,242,374
----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... (918,919) (642,040) (1,227,991)
Net investment income - Class B...... (45,612) (18,789) (26,544)
Net realized gains - Class A......... (6,072,779) -- (4,841,852)
Net realized gains - Class B......... (367,813) -- (184,600)
----------- ----------- -----------
Total distributions................ (7,405,123) (660,829) (6,280,987)
----------- ----------- -----------
SHARE TRANSACTIONS*
Class A:
Proceeds from shares sold............ 11,088,468 10,008,749 9,720,765
Reinvestment of distributions........ 6,944,559 636,265 6,023,569
Cost of shares redeemed.............. (5,453,460) (7,257,300) (9,501,874)
----------- ----------- -----------
12,579,567 3,387,714 6,242,460
----------- ----------- -----------
Class B:
Proceeds from shares sold............ 2,384,598 1,905,526 1,430,563
Reinvestment of distributions........ 410,293 18,442 207,161
Cost of shares redeemed.............. (345,060) (397,593) (169,088)
----------- ----------- -----------
2,449,831 1,526,375 1,468,636
----------- ----------- -----------
Net increase from share
transactions....................... 15,029,398 4,914,089 7,711,096
----------- ----------- -----------
Net increase in net assets......... 18,548,695 7,525,811 11,672,483
NET ASSETS
Beginning of period.................. 76,759,974 69,234,163 57,561,680
----------- ----------- -----------
End of period+....................... $95,308,669 $76,759,974 $69,234,163
----------- ----------- -----------
----------- ----------- -----------
+Includes accumulated net investment
income
(deficit) of.......................... $ 513,596 $ 585,322 $ 55,028
----------- ----------- -----------
----------- ----------- -----------
*SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 773,463 692,647 683,584
Issued for distributions
reinvested......................... 509,257 42,650 437,106
Redeemed............................. (380,681) (500,175) (680,904)
----------- ----------- -----------
Net increase in Class A shares
outstanding........................ 902,039 235,122 439,786
----------- ----------- -----------
----------- ----------- -----------
Class B:
Sold................................. 168,859 132,731 100,991
Issued for distributions
reinvested......................... 30,423 1,245 15,167
Redeemed............................. (24,379) (27,765) (12,388)
----------- ----------- -----------
Net increase in Class B shares
outstanding........................ 174,903 106,211 103,770
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See notes to financial statements
40
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME BLUE CHIP
---------------------------------------- ----------------------------------------
10/1/98 11/1/97 11/1/96 10/1/98 1/1/98 1/1/97
TO TO TO TO TO TO
3/31/99 9/30/98 10/31/97 3/31/99 9/30/98 12/31/97
- --------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ 311,985 $ 975,590 $ 815,670 $ (42,222) $ 518,636 $ 1,132,054
Net realized gain on investments..... 20,413,898 60,194 5,328,547 26,500,363 12,979,954 26,645,071
Net unrealized appreciation
(depreciation) of investments...... 58,083,448 15,489,708 31,106,647 69,703,506 (22,977,214) 44,536,413
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations........................ 78,809,331 16,525,492 37,250,864 96,161,647 (9,478,624) 72,313,538
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... (770,661) (474,191) (817,347) (317,918) (476,685) (1,008,850)
Net investment income - Class B...... (7,808) -- (14,650) -- -- --
Net realized gains - Class A......... (42,283) (4,666,252) (2,000,523) (12,371,853) -- (23,224,732)
Net realized gains - Class B......... (7,315) (666,704) (234,403) (1,609,894) -- (2,472,186)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions................ (828,067) (5,807,147) (3,066,923) (14,299,665) (476,685) (26,705,768)
------------ ------------ ------------ ------------ ------------ ------------
SHARE TRANSACTIONS*
Class A:
Proceeds from shares sold............ 50,099,679 78,231,913 69,592,366 35,592,192 63,584,545 83,933,830
Reinvestment of distributions........ 798,440 5,089,594 2,780,887 12,531,573 469,526 23,979,379
Cost of shares redeemed.............. (22,687,013) (29,473,440) (20,987,333) (31,154,246) (38,294,869) (39,561,111)
------------ ------------ ------------ ------------ ------------ ------------
28,211,106 53,848,067 51,385,920 16,969,519 25,759,202 68,352,098
------------ ------------ ------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold............ 14,027,458 18,528,954 12,978,761 8,642,850 16,422,338 17,001,914
Reinvestment of distributions........ 15,078 662,444 246,352 1,601,695 -- 2,448,261
Cost of shares redeemed.............. (2,788,454) (3,893,425) (2,077,855) (3,061,550) (5,068,439) (2,520,555)
------------ ------------ ------------ ------------ ------------ ------------
11,254,082 15,297,973 11,147,258 7,182,995 11,353,899 16,929,620
------------ ------------ ------------ ------------ ------------ ------------
Net increase from share
transactions....................... 39,465,188 69,146,040 62,533,178 24,152,514 37,113,101 85,281,718
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets......... 117,446,452 79,864,385 96,717,119 106,014,496 27,157,792 130,889,488
NET ASSETS
Beginning of period.................. 300,618,236 220,753,851 124,036,732 414,910,505 387,752,713 256,863,225
------------ ------------ ------------ ------------ ------------ ------------
End of period+....................... $418,064,688 $300,618,236 $220,753,851 $520,925,001 $414,910,505 $387,752,713
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
+Includes accumulated net investment
income
(deficit) of......................... $ 33,473 $ 499,957 $ -- $ (159,411) $ 200,729 $ 158,778
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
*SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 3,485,784 6,064,102 6,493,708 1,405,564 2,600,224 3,767,172
Issued for distributions
reinvested......................... 58,916 419,923 283,146 536,723 18,220 1,051,211
Redeemed............................. (1,596,798) (2,288,057) (1,962,857) (1,234,958) (1,570,204) (1,783,673)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in Class A shares
outstanding........................ 1,947,902 4,195,968 4,813,997 707,329 1,048,240 3,034,710
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Class B:
Sold................................. 999,313 1,449,761 1,213,405 348,614 674,423 764,680
Issued for distributions
reinvested......................... 1,096 55,714 25,769 69,604 -- 108,187
Redeemed............................. (201,381) (305,374) (195,408) (124,342) (209,618) (114,584)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in Class B shares
outstanding........................ 799,028 1,200,101 1,043,766 293,876 464,805 758,283
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
See notes to financial statements
41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
FIRST INVESTORS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
UTILITIES INCOME
----------------------------------------
10/1/98 11/1/97 11/1/96
TO TO TO
3/31/99 9/30/98 10/31/97
- --------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ 1,263,461 $ 2,407,392 $ 3,269,947
Net realized gain (loss) on
investments........................ 4,214,731 6,230,833 7,342,477
Net unrealized appreciation
(depreciation) of investments...... 4,785,663 9,091,432 2,774,850
------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations....................... 10,263,855 17,729,657 13,387,274
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... (1,167,267) (2,069,737) (2,954,931)
Net investment income - Class B...... (93,720) (153,775) (187,678)
Net realized gains - Class A......... (6,073,957) (5,411,740) --
Net realized gains - Class B......... (729,449) (505,229) --
------------ ------------ ------------
Total distributions................ (8,064,393) (8,140,481) (3,142,609)
------------ ------------ ------------
SHARE TRANSACTIONS*
Class A:
Proceeds from shares sold............ 13,144,688 18,892,681 13,294,852
Reinvestment of distributions........ 7,058,652 7,290,097 2,837,444
Cost of shares redeemed.............. (9,091,130) (14,230,724) (27,788,751)
------------ ------------ ------------
11,112,210 11,952,054 (11,656,455)
------------ ------------ ------------
Class B:
Proceeds from shares sold............ 3,512,278 4,565,543 2,798,462
Reinvestment of distributions........ 818,304 654,659 182,590
Cost of shares redeemed.............. (1,023,977) (1,112,670) (2,096,554)
------------ ------------ ------------
3,306,605 4,107,532 884,498
------------ ------------ ------------
Net increase (decrease) from share
transactions....................... 14,418,815 16,059,586 (10,771,957)
------------ ------------ ------------
Net increase (decrease) in net
assets........................... 16,618,277 25,648,762 (527,292)
NET ASSETS
Beginning of period.................. 136,820,627 111,171,865 111,699,157
------------ ------------ ------------
End of period+....................... $153,438,904 $136,820,627 $111,171,865
------------ ------------ ------------
------------ ------------ ------------
+Includes accumulated net investment
income
(deficit) of......................... $ 649,635 $ 647,161 $ 463,281
------------ ------------ ------------
------------ ------------ ------------
*SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 1,718,582 2,495,558 1,993,525
Issued for distributions
reinvested......................... 950,378 998,117 423,434
Redeemed............................. (1,190,134) (1,889,537) (4,158,047)
------------ ------------ ------------
Net increase (decrease) in Class A
shares outstanding................. 1,478,826 1,604,138 (1,741,088)
------------ ------------ ------------
------------ ------------ ------------
Class B:
Sold................................. 466,924 605,451 422,620
Issued for distributions
reinvested......................... 111,584 90,925 27,429
Redeemed............................. (135,691) (149,886) (315,946)
------------ ------------ ------------
Net increase in Class B shares
outstanding........................ 442,817 546,490 134,103
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See notes to financial statements
42
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY SPECIAL SITUATIONS
------------------------------------- ----------------------------------------
10/1/98 11/1/97 11/1/96 10/1/98 1/1/98 1/1/97
TO TO TO TO TO TO
3/31/99 9/30/98 10/31/97 3/31/99 9/30/98 12/31/97
- --------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ (144,438) $ (105,026) $ (58,391) $ (958,354) $ (612,879) $ (937,036)
Net realized gain (loss) on
investments........................ 6,323,216 (3,844,115) 1,997,140 24,403,573 (5,056,550) 17,709,890
Net unrealized appreciation
(depreciation) of investments...... 6,379,233 (2,909,788) 3,087,322 8,612,434 (37,274,025) 10,188,540
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations........................ 12,558,011 (6,858,929) 5,026,071 32,057,653 (42,943,454) 26,961,394
----------- ----------- ----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... -- -- (36,607) -- -- --
Net investment income - Class B...... -- -- -- -- -- --
Net realized gains - Class A......... -- (1,720,339) (673,761) -- -- (15,341,882)
Net realized gains - Class B......... -- (204,066) (52,869) -- -- (1,322,522)
----------- ----------- ----------- ------------ ------------ ------------
Total distributions................ -- (1,924,405) (763,237) -- -- (16,664,404)
----------- ----------- ----------- ------------ ------------ ------------
SHARE TRANSACTIONS*
Class A:
Proceeds from shares sold............ 4,602,121 14,851,341 10,263,593 17,071,298 31,611,943 41,394,544
Reinvestment of distributions........ -- 1,703,247 696,970 -- -- 14,688,933
Cost of shares redeemed.............. (3,672,499) (4,664,684) (3,053,623) (24,019,968) (26,829,523) (30,181,586)
----------- ----------- ----------- ------------ ------------ ------------
929,622 11,889,904 7,906,940 (6,948,670) 4,782,420 25,901,891
----------- ----------- ----------- ------------ ------------ ------------
Class B:
Proceeds from shares sold............ 770,942 2,511,193 1,556,469 3,197,599 5,096,254 6,513,410
Reinvestment of distributions........ -- 203,911 52,868 -- -- 1,315,908
Cost of shares redeemed.............. (329,963) (497,826) (183,075) (2,398,601) (2,440,295) (1,904,821)
----------- ----------- ----------- ------------ ------------ ------------
440,979 2,217,278 1,426,262 798,998 2,655,959 5,924,497
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) from share
transactions....................... 1,370,601 14,107,182 9,333,202 (6,149,672) 7,438,379 31,826,388
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) in net
assets............................ 13,928,612 5,323,848 13,596,036 25,907,981 (35,505,075) 42,123,378
NET ASSETS
Beginning of period.................. 34,566,229 29,242,381 15,646,345 175,186,480 210,691,555 168,568,177
----------- ----------- ----------- ------------ ------------ ------------
End of period+....................... $48,494,841 $34,566,229 $29,242,381 $201,094,461 $175,186,480 $210,691,555
----------- ----------- ----------- ------------ ------------ ------------
----------- ----------- ----------- ------------ ------------ ------------
+Includes accumulated net investment
income
(deficit) of......................... $ (144,438) $ -- $ -- $ (958,354) $ -- $ --
----------- ----------- ----------- ------------ ------------ ------------
----------- ----------- ----------- ------------ ------------ ------------
*SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 262,801 845,064 610,878 829,640 1,427,349 1,821,611
Issued for distributions
reinvested......................... -- 97,719 45,613 -- -- 662,260
Redeemed............................. (208,037) (265,776) (187,193) (1,163,405) (1,215,191) (1,367,038)
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) in Class A
shares outstanding................. 54,764 677,007 469,298 (333,765) 212,158 1,116,833
----------- ----------- ----------- ------------ ------------ ------------
----------- ----------- ----------- ------------ ------------ ------------
Class B:
Sold................................. 44,684 147,503 92,935 159,157 234,967 287,155
Issued for distributions
reinvested......................... -- 11,931 3,501 -- -- 60,669
Redeemed............................. (19,303) (29,310) (11,554) (119,140) (113,798) (87,818)
----------- ----------- ----------- ------------ ------------ ------------
Net increase in Class B shares
outstanding........................ 25,381 130,124 84,882 40,017 121,169 260,006
----------- ----------- ----------- ------------ ------------ ------------
----------- ----------- ----------- ------------ ------------ ------------
</TABLE>
See notes to financial statements
43
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
FIRST INVESTORS
<TABLE>
<CAPTION>
- -------------------------------------------------------
FOCUSED EQUITY
--------------
3/22/99
**
TO
3/31/99
- --------------------------------------- --------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ (1,673)
Net realized gain (loss) on
investments and foreign currency
transactions....................... (14,778)
Net unrealized appreciation
(depreciation) of investments and
foreign currency transactions...... 134,554
--------------
Net increase (decrease) in net
assets resulting from
operations....................... 118,103
--------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... --
Net investment income - Class B...... --
Net realized gains - Class A......... --
Net realized gains - Class B......... --
--------------
Total distributions................ --
--------------
SHARE TRANSACTIONS*
Class A:
Proceeds from shares sold............ 14,182,993
Reinvestment of distributions........ --
Cost of shares redeemed.............. (8,500)
--------------
14,174,493
--------------
Class B:
Proceeds from shares sold............ 2,708,152
Reinvestment of distributions........ --
Cost of shares redeemed.............. --
--------------
2,708,152
--------------
Net increase (decrease) from share
transactions....................... 16,882,645
--------------
Net increase (decrease) in net
assets........................... 17,000,748
NET ASSETS
Beginning of period.................. --
--------------
End of period+....................... $ 17,000,748
--------------
--------------
+Includes accumulated deficit in net
investment income of................. $ (1,673)
--------------
--------------
*SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 1,416,020
Issued for distributions
reinvested......................... --
Redeemed............................. (838)
--------------
Net increase (decrease) in Class A
shares outstanding................. 1,415,182
--------------
--------------
Class B:
Sold................................. 270,188
Issued for distributions
reinvested......................... --
Redeemed............................. --
--------------
Net increase in Class B shares
outstanding........................ 270,188
--------------
--------------
</TABLE>
** Commencement of operations
See notes to financial statements
44
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
GLOBAL
----------------------------------------
10/1/98 1/1/98 1/1/97
TO TO TO
3/31/99 9/30/98 12/31/97
- --------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ (739,865) $ 209,920 $ 1,128,454
Net realized gain (loss) on
investments and foreign currency
transactions....................... 12,987,504 8,576,598 21,938,853
Net unrealized appreciation
(depreciation) of investments and
foreign currency transactions...... 53,438,629 (11,823,004) (1,723,731)
------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations........................ 65,686,268 (3,036,486) 21,343,576
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... (122,828) -- (1,053,231)
Net investment income - Class B...... -- -- --
Net realized gains - Class A......... (3,199,287) -- (26,486,799)
Net realized gains - Class B......... (150,049) -- (1,019,942)
------------ ------------ ------------
Total distributions................ (3,472,164) -- (28,559,972)
------------ ------------ ------------
SHARE TRANSACTIONS*
Class A:
Proceeds from shares sold............ 13,042,694 25,307,313 35,195,348
Reinvestment of distributions........ 3,187,812 -- 27,005,495
Cost of shares redeemed.............. (24,893,358) (38,607,860) (41,510,319)
------------ ------------ ------------
(8,662,852) (13,300,547) 20,690,524
------------ ------------ ------------
Class B:
Proceeds from shares sold............ 2,331,463 3,446,279 5,760,337
Reinvestment of distributions........ 149,378 -- 1,014,030
Cost of shares redeemed.............. (1,288,310) (1,621,778) (964,600)
------------ ------------ ------------
1,192,531 1,824,501 5,809,767
------------ ------------ ------------
Net increase (decrease) from share
transactions....................... (7,470,321) (11,476,046) 26,500,291
------------ ------------ ------------
Net increase (decrease) in net
assets............................ 54,743,783 (14,512,532) 19,283,895
NET ASSETS
Beginning of period.................. 273,203,552 287,716,084 268,432,189
------------ ------------ ------------
End of period+....................... $327,947,335 $273,203,552 $287,716,084
------------ ------------ ------------
------------ ------------ ------------
+Includes accumulated deficit in net
investment income of................. $ (885,573) $ (22,880) $ (92,005)
------------ ------------ ------------
------------ ------------ ------------
*SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 1,806,445 3,513,532 4,989,223
Issued for distributions
reinvested......................... 462,757 -- 4,213,026
Redeemed............................. (3,450,586) (5,437,027) (5,897,153)
------------ ------------ ------------
Net increase (decrease) in Class A
shares outstanding................. (1,181,384) (1,923,495) 3,305,096
------------ ------------ ------------
------------ ------------ ------------
Class B:
Sold................................. 332,217 492,513 820,925
Issued for distributions
reinvested......................... 22,262 -- 160,702
Redeemed............................. (185,911) (236,454) (138,029)
------------ ------------ ------------
Net increase in Class B shares
outstanding........................ 168,568 256,059 843,598
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
** Commencement of operations
See notes to financial statements
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES--First Investors Total Return Fund, First
Investors Blue Chip Fund and First Investors Special Situations Fund, each a
series of First Investors Series Fund ("Series Fund"), a Massachusetts business
trust; First Investors Growth & Income Fund, First Investors Utilities Income
Fund, First Investors Mid-Cap Opportunity Fund and First Investors Focused
Equity Fund, each a series of First Investors Series Fund II, Inc. ("Series Fund
II"), a Maryland corporation; and First Investors Global Fund, Inc. ("Global
Fund"), a Maryland corporation, are registered under the Investment Company Act
of 1940 (the "1940 Act") as diversified, open-end management investment
companies, with the exception of First Investors Focused Equity Fund, which is
registered as a non-diversified investment company. Each fund accounts
separately for the assets, liabilities, and operations of the fund. Series Fund
offers two additional series which are not included in this report. The
objective of each Fund is as follows:
TOTAL RETURN FUND seeks high, long-term total investment return consistent with
moderate investment risk.
GROWTH & INCOME FUND seeks long-term growth of capital and current income.
BLUE CHIP FUND seeks high total investment return consistent with the
preservation of capital.
UTILITIES INCOME FUND primarily seeks high current income and secondarily long-
term capital appreciation.
MID-CAP OPPORTUNITY FUND seeks long-term capital growth.
SPECIAL SITUATIONS FUND seeks long-term growth of capital.
FOCUSED EQUITY FUND seeks capital appreciation.
GLOBAL FUND primarily seeks long-term capital growth and secondarily a
reasonable level of current income.
On March 19, 1998, the Boards of Directors/Trustees of Series Fund, Series Fund
II and Global Fund approved a change in the fiscal year-ends of each of the
above listed Funds to September 30 (with the exception of First Investors
Focused Equity Fund, which commenced operations on March 22, 1999). Previously,
the fiscal year-ends were December 31 for the Total Return Fund, Blue Chip Fund,
Special Situations Fund and Global Fund, and October 31 for the Growth & Income
Fund, Utilities Income Fund and Mid-Cap Opportunity Fund.
46
<PAGE>
A. Security Valuation--Except as provided below, 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, and lacking any
sales, the security is valued at the mean between the closing bid and asked
prices. Securities traded in the over-the-counter ("OTC") market (including
securities listed on exchanges whose primary market is believed to be OTC) are
valued at the mean between the last bid and asked prices based upon quotes
furnished by a market maker for such securities. Securities may also be priced
by a pricing service. The pricing service uses quotations obtained from
investment dealers or brokers, information with respect to market transactions
in comparable securities and other available information in determining value.
Short-term debt securities that mature in 60 days or less are valued at
amortized cost. 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 particular Fund's officers in a
manner specifically authorized by the Boards of Directors/Trustees. For
valuation purposes, where applicable, 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 each Fund to continue to
comply with the special provisions of the Internal Revenue Code applicable to
investment companies and to make sufficient distributions of income and capital
gains (in excess of any available capital loss carryovers) to relieve it from
all, or substantially all, such taxes.
C. Distributions to Shareholders--Dividends from net investment income, if any,
of Total Return Fund, Growth & Income Fund, Blue Chip Fund and Utilities Income
Fund are declared and paid quarterly. Dividends from net investment income, if
any, of Mid-Cap Opportunity Fund, Special Situations Fund, Focused Equity Fund
and Global Fund are declared and paid annually. Distributions from net realized
capital gains, if any, are normally declared and paid annually. Income dividends
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for capital loss
carryforwards, deferral of wash sales, post-October capital losses, net
operating losses and foreign currency transactions.
D. Expense Allocation--Expenses directly charged or attributable to a Fund are
paid from the assets of that Fund. General expenses of Series Fund and Series
Fund II are allocated among and charged to the assets of each Fund in the Series
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
on a fair and equitable basis, which may be based on the relative assets of each
Fund or the nature of the services performed and relative applicability to each
Fund.
E. Repurchase Agreements--Securities pledged as collateral for repurchase
agreements entered into by the Global Fund are held by the Fund's custodian
until maturity of the repurchase agreements. The agreements provide that Global
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 Global Fund.
F. Use of Estimates--The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
G. Foreign Currency Translations--The accounting records of Global Fund 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.
Global 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.
H. 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. For the six months ended March 31,
1999, the Bank of New York, custodian for the Series Fund and Series Fund II,
has provided total credits in the amount of $44,079 against custodian charges
based on the uninvested cash balances of these Funds.
48
<PAGE>
2. PURCHASES AND SALES OF SECURITIES--For the six months ended March 31, 1999,
purchases and sales of securities and long-term U.S. Government obligations
(excluding U.S. Treasury bills, repurchase agreements, short-term securities and
foreign currencies) were as follows:
<TABLE>
<CAPTION>
Long-Term U.S.
Securities Government Obligations
-------------------------- ------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases from Sales Purchases from Sales
- --------------------------------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Total Return........................... $ 39,690,443 $ 41,661,594 $24,691,241 $14,106,402
Growth & Income........................ 204,304,507 142,259,728 -- --
Blue Chip.............................. 285,493,145 227,753,582 -- --
Utilities Income....................... 66,066,064 47,035,580 -- --
Mid-Cap Opportunity.................... 45,693,673 38,025,087 -- --
Special Situations..................... 183,387,448 171,591,722 -- --
Focused Equity......................... 14,917,894 342,695 -- --
Global................................. 135,183,010 146,267,515 -- --
</TABLE>
At March 31, 1999, aggregate cost and net unrealized appreciation of securities
for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross
Aggregate Unrealized Unrealized Net Unrealized
Fund Cost Appreciation Depreciation Appreciation
- --------------------------------------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Total Return........................... $ 78,870,441 $ 15,818,969 $ 848,014 $ 14,970,955
Growth & Income........................ 292,588,921 130,873,007 3,637,765 127,235,242
Blue Chip.............................. 370,850,683 158,911,700 4,078,540 154,833,160
Utilities Income....................... 123,679,468 33,739,311 4,007,032 29,732,279
Mid-Cap Opportunity.................... 40,008,442 10,570,925 2,548,765 8,022,160
Special Situations..................... 192,546,847 33,554,160 24,348,385 9,205,775
Focused Equity......................... 14,560,421 250,584 116,030 134,554
Global................................. 246,262,999 83,977,302 3,579,208 80,398,094
</TABLE>
3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
directors/trustees of the Funds 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 Funds' Individual Retirement Accounts. Directors/trustees of
the Funds who are not "interested persons" of the Funds as defined in the 1940
Act
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
are remunerated by the Funds. For the six months ended March 31, 1999, total
directors/trustees fees accrued by the Funds amounted to $31,500.
The Investment Advisory Agreements provide as compensation to FIMCO, an annual
fee, payable monthly, at the following rates:
TOTAL RETURN, BLUE CHIP, MID-CAP OPPORTUNITY AND SPECIAL SITUATIONS FUNDS--1% on
the first $200 million of each Fund's average daily net assets, .75% on the next
$300 million, declining by .03% on each $250 million thereafter, down to .66% on
average daily net assets over $1 billion. FIMCO has waived 25% of the 1% annual
fee on the first $200 million of each Fund's average daily net assets for the
six months ended March 31, 1999.
GROWTH & INCOME, UTILITIES INCOME AND FOCUSED EQUITY FUNDS--.75% on the first
$300 million of each Fund's average daily net assets, .72% on the next $200
million, .69% on the next $250 million and .66% on average daily net assets over
$750 million.
FIMCO, pursuant to an expense limitation agreement, has agreed to reimburse the
Focused Equity Fund for organizational expenses and expenses incurred during the
fiscal year ending September 30, 1999, to the extent necessary to limit the
Focused Equity Fund's total expenses on an annual basis to 1.75% of the average
daily net assets on the Class A shares and 2.45% of the average daily net assets
on the Class B shares. FIMCO and the Focused Equity Fund have agreed that any
expenses of the Focused Equity Fund reimbursed by FIMCO pursuant to this
agreement shall be repaid to FIMCO by the Focused Equity Fund in the first,
second, or third (or all) fiscal years following the year ending September 30,
1999, if the total expenses of the Focused Equity Fund for such year or years do
not exceed 1.75% of the average daily net assets on Class A shares and 2.45% of
the average daily net assets on Class B shares or any lower expense limitations
to which FIMCO may otherwise agree. At March 31, 1999 the total organizational
expenses and expenses incurred in excess of the above stated limitations was
$77,193. This amount is subject to recapture by FIMCO from the Focused Equity
Fund based on the parameters discussed above.
GLOBAL FUND--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.
For the six months ended March 31, 1999, total advisory fees accrued to FIMCO by
the Funds were $7,167,369 of which $656,006 was waived. In addition, FIMCO
assumed $19,299 of Focused Equity Fund's expenses.
50
<PAGE>
For the six months ended March 31, 1999, FIC, as underwriter, received
$5,911,295 in commissions from the sale of shares of the Funds, after allowing
$33,757 to other dealers. Shareholder servicing costs included $1,563,154 in
transfer agent fees accrued to ADM and $518,840 in IRA custodian fees accrued to
FFS.
Pursuant to distribution plans adopted under Rule 12b-1 of the 1940 Act, each
Fund is authorized to pay FIC a fee up to .30% of the average daily net assets
of the Class A shares and 1% of the average daily net assets of the Class B
shares on an annualized basis each fiscal year, payable monthly. The fee
consists of a distribution fee and a service fee. The service fee is paid for
the ongoing servicing of clients who are shareholders of that Fund. For the six
months ended March 31, 1999, total distribution plan fees accrued to FIC by the
Funds amounted to $3,058,176.
Wellington Management Company, LLP ("Wellington") serves as investment
subadviser to Global Fund. Arnhold and S. Bleichroeder, Inc. serves as
investment subadviser to Focused Equity Fund. The subadvisers are paid by FIMCO
and not by the Funds.
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 Global 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 counter-parties to the contracts are unable to meet the terms
of their contracts or if the value of the foreign currency changes unfavorably.
Global Fund had the following forward currency contracts outstanding at March
31, 1999:
<TABLE>
<CAPTION>
Contracts to Buy Foreign Unrealized
Currency In Exchange for Settlement Date Gain (Loss)
- ---------------------------- --------------- --------------- -----------
<C> <S> <C> <C> <C>
3,033,852 Japanese Yen U.S. $25,236 4/1/99 U.S. $382
1,385,011 Canadian Dollars 915,595 4/1/99 (67)
14,840,181 Japanese Yen 123,668 4/2/99 1,639
21,136,733 Japanese Yen 178,512 4/5/99 (38)
283,689 Canadian Dollars 187,998 4/5/99 (472)
1,646,760 Euro 1,769,871 4/6/99 7,970
614,537 Swiss Francs 412,654 4/6/99 2,546
177,656 Swiss Francs 120,253 4/7/99 (223)
--------------- -----------
$3,733,787 $11,737
--------------- -----------
</TABLE>
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
<TABLE>
<CAPTION>
Contracts to Sell Foreign Unrealized
Currency In Exchange for Settlement Date Gain (Loss)
- ------------------------------ --------------- --------------- -----------
<C> <S> <C> <C> <C>
78,265 Euro U.S. $85,434 4/1/99 U.S. $939
234,514 Danish Krone 33,964 4/1/99 (100)
416,957 Euro 438,068 4/1/99 (12,079)
358,772 British Pounds 582,391 4/1/99 3,222
33,568,295 Japanese Yen 279,817 4/1/99 (3,627)
923,731 Euro 998,448 4/7/99 1,188
1,013,067 British Pounds 1,635,921 4/7/99 517
336,423 Hong Kong Dollars 43,412 4/7/99 1
187,118 British Pounds 301,695 4/8/99 (371)
58,722 British Pounds 94,598 4/9/99 (198)
952,244 Euro 1,034,559 4/30/99 6,516
--------------- -----------
$5,528,307 $(3,992)
--------------- -----------
Unrealized Gain on Forward Currency Contracts $7,745
-----------
-----------
</TABLE>
5. CAPITAL--Each Fund sells two classes of shares, Class A and Class B, each
with a public offering price that reflects different sales charges and expense
levels. Class A shares are sold with an initial sales charge of up to 6.25% of
the amount invested and together with the Class B shares are subject to
distribution plan fees as described in Note 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 and certain other class expenses) are allocated daily to
each class of shares based upon the relative proportion of net assets of each
class. The Series Fund has established an unlimited number of shares of
beneficial interest for both Class A and Class B shares. Of the 100,000,000
shares originally designated to each Fund, Series Fund II has classified
50,000,000 shares as Class A and 50,000,000 shares as Class B for each Fund. Of
the 100,000,000 Global Fund shares originally authorized, the Fund has
designated 65,000,000 shares as Class A and 35,000,000 shares as Class B.
6. RULE 144A SECURITIES--Under Rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and may
only be sold to qualified institutional investors. At March 31, 1999, Growth &
Income Fund held one 144A security with a value of $2,303,125. The security
represents .55% of the Fund's net assets and is valued as set forth in Note 1A.
52
<PAGE>
This page intentionally left blank.
53
<PAGE>
FINANCIAL HIGHLIGHTS
FIRST INVESTORS
The following table sets forth the per share operating performance data for a
share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
NET REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE NET UNREALIZED ----------------------
--------- INVESTMENT GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INCOME ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN FUND
CLASS A
1993........... $ 12.49 $ .26 $ .63 $ .89 $ .26 $ 1.24 $ 1.50
1994........... 11.88 .21 (.62) (.41) .19 .39 .58
1995........... 10.89 .39 2.50 2.89 .37 .44 .81
1996........... 12.97 .39 .97 1.36 .41 1.12 1.53
1997........... 12.80 .26 2.04 2.30 .28 1.08 1.36
1998(a)........ 13.74 .23 .43 .66 .13 -- .13
1999(f)........ 14.27 .14 1.71 1.85 .17 1.18 1.35
CLASS B
1995(b)........ 10.90 .25 2.54 2.79 .33 .44 .77
1996........... 12.92 .32 .94 1.26 .34 1.12 1.46
1997........... 12.72 .21 1.97 2.18 .19 1.08 1.27
1998(a)........ 13.63 .17 .41 .58 .08 -- .08
1999(f)........ 14.13 .11 1.67 1.78 .13 1.18 1.31
- ----------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
CLASS A
10/4/93* to
10/31/93..... $ 6.56 $ .01 $ -- $ .01 $ .01 $ -- $ .01
1994(d)........ 6.56 .13 .11 .24 .11 -- .11
1995(d)........ 6.69 .16 1.13 1.29 .17 -- .17
1996(d)........ 7.81 .10 1.60 1.70 .12 -- .12
1997(d)........ 9.39 .06 2.36 2.42 .06 .16 .22
1998(c)........ 11.59 .05 .97 1.02 .03 .27 .30
1999(f)........ 12.31 .02 3.11 3.13 .04 -- .04
CLASS B
1995(e)........ 6.43 .08 1.38 1.46 .11 -- .11
1996(d)........ 7.78 .07 1.55 1.62 .07 -- .07
1997(d)........ 9.33 -- 2.32 2.32 .01 .16 .17
1998(c)........ 11.48 (.01) .94 .93 -- .27 .27
1999(f)........ 12.14 (.02) 3.04 3.02 -- -- --
- ----------------------------------------------------------------------------------------------------------
</TABLE>
54 See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
----------------------------------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET
RATIO TO AVERAGE ASSETS BEFORE EXPENSES
NET ASSETS++ WAIVED OR ASSUMED
NET ASSET NET ASSETS ------------------------ ---------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ** (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) MILLIONS) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN FUND
CLASS A
1993........... $ 11.88 7.18 $ 58 1.45 2.00 1.83 1.62 131
1994........... 10.89 (3.45) 51 1.63 1.91 1.88 1.66 124
1995........... 12.97 26.71 55 1.58 3.08 1.83 2.83 135
1996........... 12.80 10.62 57 1.53 2.93 1.78 2.68 146
1997........... 13.74 18.08 67 1.49 1.94 1.74 1.69 149
1998(a)........ 14.27 4.76 73 1.40+ 2.17+ 1.65+ 1.92+ 111
1999(f)........ 14.77 13.84 89 1.43+ 2.11+ 1.68+ 1.86+ 67
CLASS B
1995(b)........ 12.92 25.74 .3 2.41+ 2.24+ 2.67+ 1.98+ 135
1996........... 12.72 9.86 1 2.32 2.14 2.49 1.97 146
1997........... 13.63 17.24 3 2.19 1.24 2.44 .99 149
1998(a)........ 14.13 4.25 4 2.10+ 1.47+ 2.35+ 1.22+ 111
1999(f)........ 14.60 13.42 7 2.13+ 1.41+ 2.38+ 1.16+ 67
- ----------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
CLASS A
10/4/93* to
10/31/93..... $ 6.56 .99+ $ 3 -- 1.02+ 1.37+ (.35)+ 0
1994(d)........ 6.69 3.67 34 .67 2.26 1.83 1.11 6
1995(d)........ 7.81 19.51 63 .98 2.34 1.59 1.74 19
1996(d)........ 9.39 21.82 112 1.31 1.20 1.49 1.02 25
1997(d)........ 11.59 26.20 194 1.39 .55 1.43 .51 28
1998(c)........ 12.31 8.84 258 1.39+ .47+ N/A N/A 36
1999(f)........ 15.40 25.46 352 1.38+ .28+ N/A N/A 42
CLASS B
1995(e)........ 7.78 22.73 4 1.90+ 2.23+ 2.61+ 1.52+ 19
1996(d)........ 9.33 20.92 12 2.03 .48 2.19 .31 25
1997(d)........ 11.48 25.23 27 2.09 (.15) 2.13 (.19) 28
1998(c)........ 12.14 8.19 43 2.09+ (.23)+ N/A N/A 36
1999(f)........ 15.16 24.91 66 2.08+ (.42)+ N/A N/A 42
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
FIRST INVESTORS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
NET REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE NET UNREALIZED ----------------------
--------- INVESTMENT GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INCOME ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
CLASS A
1993........... $ 15.29 $ .10 $ 1.08 $ 1.18 $ .10 $ .79 $ .89
1994........... 15.58 .11 (.58) (.47) .09 1.56 1.65
1995........... 13.46 .19 4.37 4.56 .20 .60 .80
1996........... 17.22 .14 3.39 3.53 .17 1.11 1.28
1997........... 19.47 .09 4.98 5.07 .08 1.62 1.70
1998(a)........ 22.84 .04 (.39) (.35) .03 -- .03
1999(f)........ 22.46 .01 5.06 5.07 .02 .75 .77
CLASS B
1995(b)........ 13.51 .10 4.31 4.41 .16 .60 .76
1996........... 17.16 .06 3.32 3.38 .06 1.11 1.17
1997........... 19.37 (.03) 4.91 4.88 -- 1.62 1.62
1998(a)........ 22.63 (.06) (.42) (.48) -- -- --
1999(f)........ 22.15 (.06) 4.98 4.92 -- .75 .75
- ----------------------------------------------------------------------------------------------------------
UTILITIES INCOME FUND
CLASS A
2/22/93* to
10/31/93..... $ 5.59 $ .12 $ .32 $ .44 $ .11 $ -- $ .11
1994(d)........ 5.92 .24 (.84) (.60) .23 .01 .24
1995(d)........ 5.08 .23 .83 1.06 .24 -- .24
1996(d)........ 5.90 .21 .52 .73 .22 -- .22
1997(d)........ 6.41 .20 .61 .81 .19 -- .19
1998(c)........ 7.03 .14 .96 1.10 .14 .37 .51
1999(f)........ 7.62 .07 .47 .54 .07 .37 .44
CLASS B
1995(e)........ 4.95 .14 .93 1.07 .16 -- .16
1996(d)........ 5.86 .18 .49 .67 .18 -- .18
1997(d)........ 6.35 .15 .61 .76 .15 -- .15
1998(c)........ 6.96 .10 .94 1.04 .10 .37 .47
1999(f)........ 7.53 .05 .46 .51 .05 .37 .42
- ----------------------------------------------------------------------------------------------------------
</TABLE>
56 See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
----------------------------------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET
RATIO TO AVERAGE ASSETS BEFORE EXPENSES
NET ASSETS++ WAIVED OR ASSUMED
NET ASSET NET ASSETS ------------------------ ---------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ** (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) MILLIONS) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
CLASS A
1993........... $ 15.58 7.77 $ 118 1.48 .66 1.73 .41 39
1994........... 13.46 (3.02) 124 1.54 .80 1.79 .55 82
1995........... 17.22 34.01 170 1.49 1.23 1.74 .98 25
1996........... 19.47 20.55 240 1.44 .78 1.67 .55 45
1997........... 22.84 26.05 351 1.39 .40 1.64 .15 63
1998(a)........ 22.46 (1.55) 368 1.37+ .23+ 1.47+ .13+ 71
1999(f)........ 26.76 23.09 458 1.36+ .06+ 1.46+ (.04)+ 50
CLASS B
1995(b)........ 17.16 32.76 5 2.20+ .52+ 2.46+ .26+ 25
1996........... 19.37 19.71 17 2.22 -- 2.37 (.16) 45
1997........... 22.63 25.19 37 2.09 (.30) 2.34 (.55) 63
1998(a)........ 22.15 (2.12) 47 2.07+ (.47)+ 2.17+ (.57)+ 71
1999(f)........ 26.32 22.72 63 2.06+ (.64)+ 2.16+ (.74)+ 50
- ----------------------------------------------------------------------------------------------------------------------
UTILITIES INCOME FUND
CLASS A
2/22/93* to
10/31/93..... $ 5.92 11.28+ $ 58 .35+ 3.84+ 1.80+ 2.39+ 17
1994(d)........ 5.08 (10.15) 63 .80 4.59 1.59 3.80 58
1995(d)........ 5.90 21.35 84 1.04 4.37 1.57 3.84 16
1996(d)........ 6.41 12.45 104 1.20 3.49 1.49 3.19 38
1997(d)........ 7.03 12.86 102 1.40 2.98 1.48 2.90 60
1998(c)........ 7.62 16.05 123 1.43+ 2.10+ N/A N/A 83
1999(f)........ 7.72 7.40 136 1.40+ 1.80+ N/A N/A 33
CLASS B
1995(e)........ 5.86 21.99 3 1.82+ 4.93+ 2.53+ 4.21+ 16
1996(d)........ 6.35 11.61 8 1.91 2.77 2.28 2.40 38
1997(d)........ 6.96 12.08 9 2.10 2.28 2.18 2.20 60
1998(c)........ 7.53 15.38 14 2.13+ 1.40+ N/A N/A 83
1999(f)........ 7.62 7.01 18 2.10+ 1.10+ N/A N/A 33
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
57
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
FIRST INVESTORS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
NET REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE NET UNREALIZED ----------------------
--------- INVESTMENT GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INCOME ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MID-CAP OPPORTUNITY FUND***
CLASS A
11/1/92* to
10/31/93..... $ 11.70 $ .12 $ .38 $ .50 $ .05 $ -- $ .05
1994(d)........ 12.15 .08 (.33) (.25) .12 -- .12
1995(d)........ 11.78 .08 2.80 2.88 .08 -- .08
1996(d)........ 14.58 .04 1.57 1.61 .06 .84 .90
1997(d)........ 15.29 (.03) 4.02 3.99 .04 .68 .72
1998(c)........ 18.56 (.03) (2.82) (2.85) -- 1.18 1.18
1999(f)........ 14.53 (.05) 5.26 5.21 -- -- --
CLASS B
1995(e)........ 12.03 (.01) 2.49 2.48 -- -- --
1996(d)........ 14.51 .01 1.47 1.48 .05 .84 .89
1997(d)........ 15.10 (.08) 3.89 3.81 -- .68 .68
1998(c)........ 18.23 (.12) (2.76) (2.88) -- 1.18 1.18
1999(f)........ 14.17 (.11) 5.12 5.01 -- -- --
- ----------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
CLASS A
1993........... $ 15.62 $ (.08) $ 3.29 $ 3.21 $ -- $ .83 $ .83
1994........... 18.00 (.04) (.62) (.66) -- .91 .91
1995........... 16.43 (.01) 3.94 3.93 -- .73 .73
1996........... 19.63 (.01) 2.28 2.27 -- 1.17 1.17
1997........... 20.73 (.09) 3.44 3.35 -- 1.90 1.90
1998(a)........ 22.18 (.05) (4.30) (4.35) -- -- --
1999(f)........ 17.83 (.09) 3.37 3.28 -- -- --
CLASS B
1995(b)........ 16.40 (.01) 3.85 3.84 -- .73 .73
1996........... 19.51 (.14) 2.25 2.11 -- 1.17 1.17
1997........... 20.45 (.15) 3.29 3.14 -- 1.90 1.90
1998(a)........ 21.69 (.13) (4.22) (4.35) -- -- --
1999(f)........ 17.34 (.15) 3.27 3.12 -- -- --
- ----------------------------------------------------------------------------------------------------------
</TABLE>
58 See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
----------------------------------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET
RATIO TO AVERAGE ASSETS BEFORE EXPENSES
NET ASSETS++ WAIVED OR ASSUMED
NET ASSET NET ASSETS ------------------------ ---------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ** (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) MILLIONS) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MID-CAP OPPORTUNITY FUND***
CLASS A
11/1/92* to
10/31/93..... $ 12.15 4.23 $ 16 .81 .96 2.03 (.26) 52
1994(d)........ 11.78 (2.05) 8 .90 .45 2.32 (.97) 29
1995(d)........ 14.58 24.59 9 1.34 .48 2.36 (.55) 106
1996(d)........ 15.29 11.64 14 1.57 .36 2.15 (.21) 118
1997(d)........ 18.56 27.09 26 1.50 (.21) 1.94 (.65) 90
1998(c)........ 14.53 (16.42) 30 1.50+ (.25)+ 1.89+ (.64)+ 102
1999(f)........ 19.74 35.86 42 1.50+ (.59)+ 1.75+ (.84)+ 94
CLASS B
1995(e)........ 14.51 20.62 .3 2.29+ (.03)+ 3.79+ (1.53)+ 106
1996(d)........ 15.10 10.80 1 2.30 (.37) 3.03 (1.10) 118
1997(d)........ 18.23 26.17 3 2.20 (.91) 2.64 (1.35) 90
1998(c)........ 14.17 (16.91) 4 2.20+ (.95)+ 2.59+ (1.34)+ 102
1999(f)........ 19.18 35.36 6 2.20+ (1.29)+ 2.45+ (1.54)+ 94
- ----------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
CLASS A
1993........... $ 18.00 20.52 $ 59 1.55 (.63) 1.89 (.96) 71
1994........... 16.43 (3.66) 90 1.65 (.26) 1.90 (.51) 53
1995........... 19.63 23.92 125 1.60 (.08) 1.85 (.33) 80
1996........... 20.73 11.56 158 1.59 (.13) 1.84 (.38) 99
1997........... 22.18 16.15 194 1.53 (.45) 1.78 (.70) 84
1998(a)........ 17.83 (19.61) 160 1.53+ (.32)+ 1.75+ (.54)+ 70
1999(f)........ 21.11 18.40 182 1.56+ (.88)+ 1.79+ (1.11)+ 90
CLASS B
1995(b)........ 19.51 23.42 5 2.33+ (.81)+ 2.59+ (1.07)+ 80
1996........... 20.45 10.81 10 2.38 (.92) 2.55 (1.09) 99
1997........... 21.69 15.34 17 2.23 (1.15) 2.48 (1.40) 84
1998(a)........ 17.34 (20.06) 15 2.23+ (1.02)+ 2.45+ (1.24)+ 70
1999(f)........ 20.46 17.99 19 2.26+ (1.58)+ 2.49+ (1.81)+ 90
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
59
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
FIRST INVESTORS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
NET REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE NET UNREALIZED ----------------------
--------- INVESTMENT GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INCOME ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOCUSED EQUITY FUND
CLASS A
1999(g)........ $ 10.00 $ -- $ .09 $ .09 $ -- $ -- $ --
CLASS B
1999(g)........ 10.00 -- .09 .09 -- -- --
- ----------------------------------------------------------------------------------------------------------
GLOBAL FUND
CLASS A
1993........... $ 5.11 $ .01 $ 1.16 $ 1.17 $ .01 $ -- $ .01
1994........... 6.27 .03 (.27) (.24) .03 .16 .19
1995........... 5.84 .03 1.01 1.04 .04 .27 .31
1996........... 6.57 .04 .91 .95 .04 .89 .93
1997........... 6.59 .03 .50 .53 .03 .68 .71
1998(a)........ 6.41 .01 (.09) (.08) -- -- --
1999(f)........ 6.33 (.02) 1.55 1.53 -- .08 .08
CLASS B
1995(b)........ 5.76 .03 1.05 1.08 .03 .27 .30
1996........... 6.54 (.01) .88 .87 .02 .88 .90
1997........... 6.51 (.01) .49 .48 -- .68 .68
1998(a)........ 6.31 (.03) (.09) (.12) -- -- --
1999(f)........ 6.19 (.03) 1.51 1.48 -- .08 .08
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized
++ Net of expenses waived or assumed by the investment adviser (Note 3)
* Commencement of operations of Class A shares
** Calculated without sales charges
***Prior to February 15, 1996, known as Made In The U.S.A. Fund, and prior to
December 31, 1997, known as U.S.A. Mid-Cap Opportunity Fund.
(a) For the period January 1, 1998 to September 30, 1998.
(b) For the period January 12, 1995 (date Class B shares first offered) to
December 31, 1995
(c) For the period November 1, 1997 to September 30, 1998.
(d) For the fiscal year ended October 31.
(e) For the period January 12, 1995 (date Class B shares first offered) to
October 31, 1995
(f) For the period October 1, 1998 to March 31, 1999
(g) For the period March 22, 1999 (commencement of operations) to March 31, 1999
60 See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
----------------------------------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET
RATIO TO AVERAGE ASSETS BEFORE EXPENSES
NET ASSETS++ WAIVED OR ASSUMED
NET ASSET NET ASSETS ------------------------ ---------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ** (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) MILLIONS) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOCUSED EQUITY FUND
CLASS A
1999(g)........ $ 10.09 .90 $ 14 1.75+ (.40)+ 7.51+ (6.16)+ 2
CLASS B
1999(g)........ 10.09 .90 3 2.45+ (1.10)+ 8.21+ (6.86)+ 2
- ----------------------------------------------------------------------------------------------------------------------
GLOBAL FUND
CLASS A
1993........... $ 6.27 22.97 $ 210 1.87 .27 N/A N/A 41
1994........... 5.84 (3.78) 214 1.84 .45 N/A N/A 56
1995........... 6.57 17.83 228 1.83 .55 N/A N/A 47
1996........... 6.59 14.43 263 1.83 .50 N/A N/A 73
1997........... 6.41 7.98 277 1.82 .41 N/A N/A 70
1998(a)........ 6.33 (1.25) 261 1.82+ .12+ N/A N/A 82
1999(f)........ 7.78 24.35 312 1.78+ (.45)+ N/A N/A 46
CLASS B
1995(b)........ 6.54 18.80 1 2.56+ (.19)+ N/A N/A 47
1996........... 6.51 13.33 5 2.54 (.21) N/A N/A 73
1997........... 6.31 7.36 10 2.52 (.29) N/A N/A 70
1998(a)........ 6.19 (1.90) 12 2.52+ (.58)+ N/A N/A 82
1999(f)........ 7.59 24.04 16 2.48+ (1.15)+ N/A N/A 46
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized
++ Net of expenses waived or assumed by the investment adviser (Note 3)
* Commencement of operations of Class A shares
** Calculated without sales charges
***Prior to February 15, 1996, known as Made In The U.S.A. Fund, and prior to
December 31, 1997, known as U.S.A. Mid-Cap Opportunity Fund.
(a) For the period January 1, 1998 to September 30, 1998.
(b) For the period January 12, 1995 (date Class B shares first offered) to
December 31, 1995
(c) For the period November 1, 1997 to September 30, 1998.
(d) For the fiscal year ended October 31.
(e) For the period January 12, 1995 (date Class B shares first offered) to
October 31, 1995
(f) For the period October 1, 1998 to March 31, 1999
(g) For the period March 22, 1999 (commencement of operations) to March 31, 1999
61
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Boards of Trustees/Directors of
First Investors Series Fund
First Investors Series Fund II, Inc.
First Investors Global Fund, Inc.
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of the First Investors Blue Chip Fund, Special
Situations Fund and Total Return Fund (each a series of First Investors Series
Fund), the First Investors Focused Equity Fund, Growth & Income Fund, Mid-Cap
Opportunity Fund and Utilities Income Fund (each a series of First Investors
Series Fund II, Inc.), and First Investors Global Fund, Inc. as of March 31,
1999, the related statement of operations for the six months ended March 31,
1999, the statement of changes in net assets and the financial highlights for
each of the periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1999, by correspondence with the custodians and brokers. Where brokers have
not replied to our confirmation requests, we have carried out other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
First Investors Blue Chip Fund, Special Situations Fund, Total Return Fund,
Focused Equity Fund, Growth & Income Fund, Mid-Cap Opportunity Fund, Utilities
Income Fund and Global Fund at March 31, 1999, and the results of their
operations, changes in their net assets and financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
April 30, 1999
62
<PAGE>
FIRST INVESTORS EQUITY FUNDS
DIRECTORS
- -------------------------------
JAMES J. COY (Emeritus)
GLENN O. HEAD
KATHRYN S. HEAD
LARRY R. LAVOIE
REX R. REED
HERBERT RUBINSTEIN
NANCY S. SCHAENEN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- -------------------------------
GLENN O. HEAD
President
NANCY W. JONES
Vice President
PATRICIA D. POITRA
Vice President
CLARK D. WAGNER
Vice President
CONCETTA DURSO
Vice President and Secretary
JOSEPH I. BENEDEK
Treasurer
CAROL LERNER BROWN
Assistant Secretary
GREGORY R. KINGSTON
Assistant Treasurer
MARK S. SPENCER
Assistant Treasurer
63
<PAGE>
FIRST INVESTORS EQUITY FUNDS
SHAREHOLDER INFORMATION
- ----------------------------------
INVESTMENT ADVISER
FIRST INVESTORS MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
SUBADVISER (Focused Equity Fund only)
ARNHOLD AND S. BLEICHROEDER, INC.
1345 Avenue of the Americas
New York, NY 10105
SUBADVISER (Global Fund only)
WELLINGTON MANAGEMENT COMPANY, LLP
75 State Street
Boston, MA 02109
UNDERWRITER
FIRST INVESTORS CORPORATION
95 Wall Street
New York, NY 10005
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
CUSTODIAN (Global Fund only)
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 Funds' practice to mail only one copy of the annual and semi-annual
reports to any address at which more than one shareholder with the same last
name has indicated that mail is to be delivered. Additional copies of the
reports will be mailed if requested by any shareholder in writing or by calling
800-423-4026. The Funds will ensure that separate reports are sent to any
shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders, and,
if given to prospective shareholders, must be accompanied or preceded by the
Funds' prospectus.
64
<PAGE>
[LOGO] First Investors
95 WALL STREET
NEW YORK, NEW YORK 10005
FIEQSAR
