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EQUITY FUNDS
TOTAL RETURN
GROWTH & INCOME
BLUE CHIP
UTILITIES INCOME
MID-CAP OPPORTUNITY
SPECIAL SITUATIONS
FOCUSED EQUITY
GLOBAL
ANNUAL REPORT
September 30, 2000
Equity 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 this Equity Market Overview of the annual
reports for the First Investors equity funds for the fiscal year ended
September 30, 2000.
The performances of all of the equity funds were largely driven by the
overall economy. In its tenth year of the current expansion, the U.S.
economy remained remarkably robust. Often referred to as the "New
Economy," it has been notable for strong growth with low inflation. As
measured by the gross domestic product, economic growth was a strong
5.3% during the past twelve months. In fact, fourth quarter 1999's
annualized growth rate of 8.3% was the highest rate since 1984. With the
economy running at full tilt, the unemployment rate fell to a 30-year
low of 3.9% in September -- a level that many economists would term
"full employment." Despite the extremely tight labor market, wage gains
remained relatively moderate.
Even with the rapid growth and low unemployment, inflation remained
mild. The consumer price index (CPI), a key gauge of inflation, rose
3.5% during the past twelve months. The primary factor driving the rate
upward was the increase in oil prices, which hit their highest level in
ten years in September. When the volatile food and energy components are
excluded, the CPI rose only 2.6%, just .59% faster than one year ago.
The keys to this ongoing benign inflation performance have been the
increase in global competition and the enhanced productivity of U.S.
companies, due in large part to technology investment. As the reporting
period came to a close, the economy began to show signs of slowing to a
more moderate growth rate.
In response to the prevailing economic conditions, the Federal Reserve
Board ("Fed") continued to raise interest rates. Concerned that the pace
of economic growth and the tight labor market would create inflation,
the Fed raised the benchmark federal funds rate four times over the past
year, for a total of 125 basis points (1.25%). At their meeting on
October 3rd, the Fed indicated satisfaction with the moderating economy,
but remained concerned about the tight labor market and watchful of the
inflationary impact of higher oil prices.
The past twelve months have been as challenging a period as the stock
market has faced in several years. Given the extraordinary returns of
the late 1990s, some investors may be taken aback by the volatility and
returns of the past year. Keep in mind however, that from 1926 through
1999, the Standard & Poor's 500 Composite Index (S&P 500) averaged an
Equity 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.
annual return of 11.3%. Therefore, the S&P 500's return of more than 13%
for the past twelve months, while lower than recent times, is still in
excess of historical norms. Among the capitalization sectors, mid-cap
stocks had the best performance, with a return of more than 43% as
measured by the S&P 400. Small-cap stocks also posted solid gains, over
23% as measured by the Russell 2000. Mutual fund returns varied,
depending on capitalization focus and management style, such as growth
or value.
The stock market began the reporting period on a tear, posting a solid
14.6% gain in the fourth quarter of 1999 as measured by the S&P 500.
Driven by the ongoing Internet phenomenon, the equity rally was led by
stocks in the technology, communications and media sectors. The Nasdaq
Composite Index was up an astonishing 48% for the quarter. The first
quarter of 2000 saw an increase in volatility. Investors continued to
chase after technology stocks, and the Nasdaq again enjoyed strong
returns, posting a 12.4% gain for the quarter. The broader stock market
peaked on March 24th, as the S&P 500 reached 1527.
It's been a high speed roller coaster ride since then, marked by
unprecedented volatility. Macro-economic concerns, such as inflation and
rising interest rates, weighed heavily on the market. The turmoil was
largely sparked by the downfall of many once high-flying technology
stocks. Amid the re-evaluation, investors gravitated toward safety,
moving into pharmaceutical, utilities, consumer and food stocks. The
market gyrated though July, then seemed to shake off its troubles as the
S&P 500 climbed back to a near-peak of 1521 on September 1st. Again, a
number of macro-economic factors, such as the rising price of oil and
inflationary pressure, conspired to pull the market down once more.
Going forward, our long-term outlook for the equity market remains
cautiously optimistic. As noted earlier, the fundamentals of the
American economy remain very solid. However, we expect volatility to
continue as a way of life in the stock market. As was clearly
demonstrated in the past twelve months, the stock market is inherently
volatile, and significant short-term corrections are part of its nature.
With the continued health of the domestic economy, subdued inflation and
a beneficial Fed policy, we may see movement toward stabilization in the
equity markets in the months ahead.
Because it is impossible to predict the future direction of the markets,
even over the short term, there are certain basic investment principles
that we encourage our shareholders to follow to reduce exposure to
risk.* First, we encourage shareholders to take a long-term view, and to
avoid trying to time the market. Attempting to time the market is
extremely difficult, even for professional investors. Second, we
encourage our shareholders to diversify their portfolios among stock
funds, bond funds and money market funds. Third, we encourage our
shareholders to follow a regular investment plan, investing a specific
amount of money at defined intervals. This strategy is known as "dollar
cost averaging." It may help you to avoid getting caught up in the
excitement of a rising market and will reduce the risk of buying at high
points.
Of course, no financial plan or program, no matter how well-designed, is
guaranteed to be successful. In addition, nothing eliminates the risk
associated with overall market trends. However, utilizing these various
strategies may help to minimize the risk by reducing the extent to which
an investor may be affected by a decline in any one security or segment
of the market. If you use dollar cost averaging, you should consider
your ability to continue purchases through periods of declining prices.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ PATRICIA D. POITRA
Patricia D. Poitra
Director of Equities
First Investors Management Company, Inc.
October 31, 2000
* There are a variety of risks associated with investing in all stock
mutual funds including market risk (the risk that the entire stock
market will decline because of an event such as a deterioration in
the economy or a rise in interest rates), as well as special risks
associated with investing in certain types of stock mutual funds,
such as small-cap funds and global and international funds. You
should consult your prospectus for a precise explanation of the risks
associated with your fund.
Portfolio Managers' Letter
FIRST INVESTORS TOTAL RETURN FUND
Dear Investor:
We are pleased to present the annual report for the First Investors
Total Return Fund for the fiscal year ended September 30, 2000. During
the period, the Fund's return on a net asset value basis was 18.7% for
Class A shares and 17.8% for Class B shares, compared to a return of
11.3% for the Lipper Balanced Portfolio Fund group. During the period,
the Fund declared dividends from net investment income of 27.0 cents per
share on Class A shares and 17.3 cents per share on Class B shares. The
Fund also declared a capital gains distribution of 40.2 cents per share
on Class A and Class B shares.
During the reporting period, both the stock and bond markets generally
provided solid returns. The performance of the U.S. stock market, as
measured by the S&P 500, returned over 13% during the period. The U.S.
bond market rebounded from its difficulties in 1999, and posted a
healthy 6.99% return, as measured by the Lehman Aggregate Bond Market
Index.
With varied performance among asset classes, asset allocation was the
key factor that determined the Fund's performance. At the beginning of
the reporting period, the Fund maintained an asset allocation of 65%
stocks, 33% bonds and 2% cash. The slight overweight in equities aided
performance, as stocks rallied sharply in the fourth quarter of 1999. On
January 13, 2000, the Fund took a more defensive position, reallocating
assets to 62% stocks, 28% bonds and 10% cash. On August 10th, in
response to the continued favorable Treasury market, the Fund decreased
its cash position and redeployed those assets into Treasury securities,
making the Fund's allocation 62% stocks, 33% bonds and 5% cash. The Fund
maintained this allocation through the end of the reporting period.
Throughout the review period, the Fund's stock holdings were concentrated
primarily in large capitalization stocks. Bond holdings began the period
divided primarily among investment grade and high yield corporate debt and
mortgage-backed bonds. The Fund's slight overweight equity position and
superior stock selection significantly contributed to performance. The
Fund's lack of significant Treasury holdings early in the reporting period
hurt performance, as the Fund missed out on a powerful Treasury rally. High
yield bond holdings also were a drag on performance as they generally
underperformed.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ PATRICIA D. POITRA
Patricia D. Poitra
Director of Equities
and Co-Portfolio Manager
/S/ CLARK D. WAGNER
Clark D. Wagner
Chief Investment Officer
and Co-Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS TOTAL RETURN FUND
Comparison of change in value of $10,000 investment in the First
Investors Total Return Fund (Class A shares), Lehman Brothers
Government/Corporate Bond Index and the Standard & Poor's 500 Index.
As of September 30, 2000
TOTAL LEHMAN
RETURN GOV/CORP S&P 500
FUND INDEX INDEX
JAN 91 $ 9,375 $10,000 $10,000
DEC 91 11,398 11,613 13,047
DEC 92 11,283 12,492 14,041
DEC 93 12,093 13,874 15,453
DEC 94 11,666 13,387 15,657
DEC 95 14,795 15,962 21,541
DEC 96 16,366 16,425 26,487
DEC 97 19,324 18,028 35,324
SEP 98 20,245 19,710 37,454
SEP 99 22,573 19,391 47,867
SEP 00 26,787 20,698 54,226
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 18.67% 11.22%
Five Years 13.69% 12.22%
Ten Years 11.55% 10.83%
Class B Shares
One Year 17.79% 13.79%
Five Years 12.89% 12.64%
Since Inception
(1/12/95) 14.80% 14.71%
The graph compares a $10,000 investment in the First Investors
Total Return Fund (Class A shares) beginning 1/1/91 with theoretical
investments in the Lehman Brothers Government/Corporate Bond Index and
the Standard & Poor's 500 Index. The Lehman Brothers
Government/Corporate Bond Index combines the Lehman Brothers Government
Bond Index with the Lehman Brothers Corporate Bond Index. The Government
Bond Index is made up of the Treasury Bond Index (all public obligations
of the U.S. Treasury) and the Agency Bond Index (all publicly issued
debt of U.S. Government agencies and quasi-federal corporations, and
corporate debt guaranteed by the U.S. Government). The Corporate Bond
Index includes all publicly issued, fixed-rate, nonconvertible
investment grade dollar-denominated, S.E.C.-registered corporate debt.
The Standard & Poor's 500 Index is an unmanaged capitalization-weighted
index of 500 stocks designed to measure performance of the broad
domestic economy through changes in the aggregate market value of such
stocks, which represent all major industries. It is not possible to
invest directly in these Indices. In addition, the Indices do not take
into account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93, the maximum sales charge was 6.9%).
The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years
and Ten Years would have been 10.97%, 11.95% and 10.40%,
respectively. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Since Inception would have been
13.54%, 12.37% and 14.43%, respectively. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Lehman Brothers Government/Corporate Bond Index figures from
Lehman Brothers, Inc., Standard & Poor's 500 Index figures from
Standard & Poor's and all other figures from First Investors
Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--59.7%
Basic Materials--1.9%
14,400 Air Products & Chemicals, Inc. $ 518,400 $ 38
25,000 Dow Chemical Company 623,438 46
72,900 Lyondell Chemical Company 861,130 63
14,600 Praxair, Inc. 545,675 40
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2,548,643 187
----------------------------------------------------------------------------------------------------
Capital Goods--8.2%
4,000 * Celestica, Inc. 277,000 20
2,200 Corning, Inc. 653,400 48
10,900 Danaher Corporation 542,275 40
6,700 GATX Corporation 280,563 21
14,600 General Dynamics Corporation 917,063 67
45,900 General Electric Company 2,647,855 194
19,300 Illinois Tool Works, Inc. 1,078,387 79
21,900 Millipore Corporation 1,060,780 78
18,200 Minnesota Mining & Manufacturing Company 1,658,475 122
10,200 Tyco International, Ltd. 529,125 39
22,000 United Technologies Corporation 1,523,500 112
----------------------------------------------------------------------------------------------------
11,168,423 820
----------------------------------------------------------------------------------------------------
Communication Services--1.7%
12,400 * McLeodUSA, Inc. - Class "A" 177,475 13
14,600 * NEXTLINK Communications, Inc. - Class "A" 513,738 38
8,800 SBC Communications, Inc. 440,000 32
3,700 * United States Cellular Corporation 259,000 19
30,000 * WorldCom, Inc. 911,250 67
----------------------------------------------------------------------------------------------------
2,301,463 169
----------------------------------------------------------------------------------------------------
Consumer Cyclicals--2.8%
12,700 * BJ's Wholesale Club, Inc. 433,388 32
7,300 * Costco Wholesale Corporation 255,044 19
13,500 * Dollar Tree Stores, Inc. 547,594 40
24,600 Family Dollar Stores, Inc. 473,550 35
7,300 * FreeMarkets, Inc. 417,013 30
11,000 New York Times Company, Inc. - Class "A" 432,438 32
24,800 Wal-Mart Stores, Inc. 1,193,500 87
----------------------------------------------------------------------------------------------------
3,752,527 275
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples--5.0%
46,800 * AT&T Corporation - Liberty Media
Group - Class "A" $ 842,400 $ 62
7,300 Avon Products, Inc. 298,388 22
6,100 * Clear Channel Communications, Inc. 344,650 25
22,000 Clorox Company 870,375 64
23,400 * Comcast Corporation - Special Class "A" 957,937 70
19,600 Estee Lauder Companies, Inc. - Class "A" 717,850 53
15,000 Kimberly-Clark Corporation 837,187 62
7,000 Procter & Gamble Company 469,000 34
14,600 SUPERVALU, Inc. 219,913 16
7,300 * Viacom, Inc. - Class "B" 427,050 31
19,600 Walt Disney Company 749,700 55
3,900 * Williams-Sonoma, Inc. 135,525 10
----------------------------------------------------------------------------------------------------
6,869,975 504
----------------------------------------------------------------------------------------------------
Energy--4.5%
7,000 Chevron Corporation 596,750 44
7,200 Devon Energy Corporation 433,080 32
14,400 EOG Resources, Inc. 559,800 41
25,937 Exxon Mobil Corporation 2,311,635 170
21,900 * Nabors Industries, Inc. 1,147,560 84
18,400 Royal Dutch Petroleum Company - NY Shares (ADR) 1,102,850 81
----------------------------------------------------------------------------------------------------
6,151,675 452
----------------------------------------------------------------------------------------------------
Financial--9.3%
25,600 ACE, Ltd. 1,004,800 74
54,800 Allstate Corporation 1,904,300 140
18,000 American International Group, Inc. 1,722,375 126
22,000 Aon Corporation 863,500 63
40 * Berkshire Hathaway, Inc. - Class "B" 82,800 6
28,600 Capital One Financial Corporation 2,003,787 147
12,600 Charles Schwab Corporation 447,300 33
14,600 Chubb Corporation 1,155,225 85
32,400 Citigroup, Inc. 1,751,625 129
21,900 First Union Corporation 704,906 52
2,800 Goldman Sachs Group, Inc. 319,025 23
16,800 MBNA Corporation 646,800 47
----------------------------------------------------------------------------------------------------
12,606,443 925
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Health Care--7.7%
26,600 Abbott Laboratories $ 1,265,163 $ 93
21,300 Baxter International, Inc. 1,700,005 125
17,000 Cardinal Health, Inc. 1,499,187 110
29,200 * Foundation Health Systems, Inc. - Class "A" 485,450 36
99,800 * HEALTHSOUTH Corporation 810,875 59
11,900 Johnson & Johnson 1,117,856 82
22,600 Medtronic, Inc. 1,170,963 86
18,800 * Niku Corporation 458,250 33
1,500 PE Corporation - PE Biosystems Group 174,750 13
10,000 Pfizer, Inc. 449,375 33
27,800 Schering-Plough Corporation 1,292,700 95
----------------------------------------------------------------------------------------------------
10,424,574 765
----------------------------------------------------------------------------------------------------
Technology--17.2%
17,200 * Applied Materials, Inc. 1,020,175 75
21,000 Automatic Data Processing, Inc. 1,404,375 103
11,100 AVX Corporation 289,294 21
19,700 * Cadence Design Systems, Inc. 506,044 37
13,200 * CIENA Corporation 1,621,125 119
26,500 * Cisco Systems, Inc. 1,464,125 107
22,000 * CNET Networks, Inc. 535,907 39
21,100 * EMC Corporation 2,091,537 154
29,200 * Entrust Technologies, Inc. 806,650 59
8,200 * Exodus Communications, Inc. 404,875 30
29,200 * Gartner Group, Inc. - Class "A" 339,450 25
14,600 * InfoSpace, Inc. 441,650 32
14,600 * Internap Network Services Corporation 471,763 35
8,700 * International Rectifier Corporation 439,894 32
36,600 * Jabil Circuit, Inc. 2,077,050 152
7,900 * KEMET Corporation 218,238 16
9,400 * KLA-Tencor Corporation 387,163 28
4,200 Linear Technology Corporation 271,950 20
3,000 * Maxim Integrated Products, Inc. 241,313 18
11,700 * Microsoft Corporation 704,925 52
51,000 Motorola, Inc. 1,440,750 106
31,000 Nokia Corporation (ADR) - Class "A" 1,234,187 91
9,000 Nortel Networks Corporation 536,063 39
12,000 * Oracle Corporation 945,000 69
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Technology (continued)
7,300 * PeopleSoft, Inc. $ 203,944 $ 15
4,400 * PMC-Sierra, Inc. 947,100 70
29,200 * RealNetworks, Inc. 1,160,700 85
2,800 * RF Micro Devices, Inc. 87,850 6
14,600 Texas Instruments, Inc. 688,937 51
14,000 * WebTrends Corporation 523,250 38
----------------------------------------------------------------------------------------------------
23,505,284 1,724
----------------------------------------------------------------------------------------------------
Utilities--1.4%
2,200 * Calpine Corporation 229,625 17
19,800 Enron Corporation 1,734,975 127
----------------------------------------------------------------------------------------------------
1,964,600 144
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $61,128,964) 81,293,607 5,965
----------------------------------------------------------------------------------------------------
CORPORATE BONDS--16.0%
Automotive--1.8%
$1,000 M DaimlerChrysler NA Holdings Corp., 7.75%, 2005 1,024,085 75
500 M Lear Corp., 7.96%, 2005 476,707 35
1,000 M Navistar International Corp., 8%, 2008 930,000 68
----------------------------------------------------------------------------------------------------
2,430,792 178
----------------------------------------------------------------------------------------------------
Chemicals--.5%
650 M Huntsman Polymers Corp., 11.75%, 2004 659,750 48
----------------------------------------------------------------------------------------------------
Containers/Packaging--.4%
500 M Printpack, Inc., 9.875%, 2004 495,000 36
----------------------------------------------------------------------------------------------------
Electric Utilities--.4%
500 M PP&L Capital Funding, Inc., 8.375%, 2007 504,160 37
----------------------------------------------------------------------------------------------------
Energy Exploration/Products--.4%
600 M Veritas DGC, Inc., 9.75%, 2003 610,500 45
----------------------------------------------------------------------------------------------------
Entertainment/Leisure--1.9%
1,000 M Carmike Cinemas, Inc., 9.375%, 2009 + 290,000 21
500 M MGM Grand, Inc., 9.75%, 2007 520,000 38
750 M Park Place Entertainment Corp., 9.375%, 2007 765,000 56
1,000 M Walt Disney Co., 7.30%, 2005 1,016,160 75
----------------------------------------------------------------------------------------------------
2,591,160 190
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Financial Services--1.1%
$1,000 M Bank of America Corp., 7.80%, 2010 $ 1,030,922 $ 76
500 M BB&T Corp., 6.375%, 2005 479,964 35
----------------------------------------------------------------------------------------------------
1,510,886 111
----------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--.4%
600 M Universal Corp., 9.25%, 2001 603,739 44
----------------------------------------------------------------------------------------------------
Gas Transmission--.7%
1,000 M Enron Corp., 7.125%, 2007 996,135 73
----------------------------------------------------------------------------------------------------
Healthcare--.7%
1,000 M Tenet Healthcare Corp., 8.625%, 2007 995,000 73
----------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--.5%
1,000 M Rhythms NetConnections, Inc., 12.75%, 2009 655,000 48
----------------------------------------------------------------------------------------------------
Investment/Finance Companies--1.1%
1,500 M Telesis Autumn Leaves, Ltd., Variable Rate
Demand Note, 6.67%, 2004++ 1,500,000 110
----------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--1.0%
750 M Adelphia Communications Corp., 7.875%, 2009 630,938 46
700 M Rogers Communications, Inc., 8.875%, 2007 704,375 52
----------------------------------------------------------------------------------------------------
1,335,313 98
----------------------------------------------------------------------------------------------------
Miscellaneous--.7%
1,000 M Allied Waste, Inc. N.A., 7.625%, 2006 895,000 66
----------------------------------------------------------------------------------------------------
Retail - General Merchandise--1.1%
1,000 M Federated Department Stores, Inc., 7.45%, 2017 877,972 64
600 M Target Corp., 7.50%, 2010 601,180 44
----------------------------------------------------------------------------------------------------
1,479,152 108
----------------------------------------------------------------------------------------------------
Telecommunications--2.2%
1,000 M Global Crossing Holding, Ltd., 9.125%, 2006 992,500 73
700 M McLeodUSA, Inc. , 8.125%, 2009 607,250 45
375 M TCI Communications, Inc., 8.75%, 2015 400,605 29
1,000 M WorldCom, Inc., 8%, 2006 1,036,412 76
----------------------------------------------------------------------------------------------------
3,036,767 223
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS TOTAL RETURN FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation--1.1%
$500 M Eletson Holdings, Inc., 9.25%, 2003 $ 480,000 $ 35
1,000 M Norfolk Southern Corp., 7.35%, 2007 987,262 72
----------------------------------------------------------------------------------------------------
1,467,262 107
----------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $22,762,688) 21,765,616 1,595
----------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--13.1%
Federal National Mortgage Association I Program--5.4%
7,278 M 8%, 4/1/2030 7,380,336 541
----------------------------------------------------------------------------------------------------
Government National Mortgage Association I Program--5.4%
4,902 M 7%, 2/15/2028 4,834,549 355
2,442 M 7.50%, 12/1/2029 2,451,897 180
----------------------------------------------------------------------------------------------------
7,286,446 535
----------------------------------------------------------------------------------------------------
Government National Mortgage Association II Program--2.3%
3,518 M 5.50%, 12/20/2028-2/20/2029 3,187,446 234
----------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $18,124,375) 17,854,228 1,310
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--5.3%
7,000 M U.S. Treasury Notes, 6.50%, 2010 (cost $7,274,531) 7,290,941 535
----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--5.1%
7,000 M Dow Chemical Co., 6.55%, 10/4/00 (cost $6,994,903) 6,994,903 513
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $116,285,461) 99.2% 135,199,295 9,918
Other Assets, Less Liabilities 0.8 1,114,246 82
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $136,313,541 $10,000
====================================================================================================
* Non-income producing
+ In default as to principal and/or interest.
++ The interest rate on the variable demand note is determined and
reset weekly by the issuer. The interest rate shown is the rate in
effect at September 30, 2000.
</TABLE>
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS GROWTH & INCOME FUND
Dear Investor:
We are pleased to present the annual report for the First Investors
Growth & Income Fund for the fiscal year ended September 30, 2000.
During the period, the Fund's return on a net asset value basis was
21.3% for Class A shares and 20.5% for Class B shares, compared to a
return of 21.6% for the Lipper Multi-Cap Core Fund group. During the
period, the Fund declared dividends from net investment income of .9
cents per share on Class A shares. The Fund also declared a capital
gains distribution of $1.549 per share on Class A and Class B shares.
As emphasized in the past, equity investing is a volatile endeavor and
even companies with a long track record of solid dividend payments and
profits can become victims to the vagaries of the market. The overall
stock market during the period was volatile due to concerns about
inflation, higher interest rates, restrictive monetary policy, weakening
demand in foreign markets, and the possible slowdown in technology
spending.
However, while the stock market was focusing on the possible downside,
the growth in the economy remained strong. Consumer confidence was high,
with real wages improving and little inflation evident in the economic
statistics. With the run-up in stock prices at the end of calendar 1999
and into the first quarter of 2000, the equity markets' valuations, as
measured by their price-to-earnings ratios, were priced for perfection.
As the year wound on, we began to see evidence of an economic slowdown
and the effect that it had on stock prices. Most of the decline in
prices appears to be related to a valuation correction rather than a
shift in the underlying fundamentals of corporate earnings or in the
strength of the American economy.
There were a number of stocks that contributed positively to the Growth
& Income Fund's performance. Early in the year, our position in Advanced
Fiber Communications, a manufacturer of telecommunications equipment
that had performed well, was liquidated at a solid profit. In the
outsourcing area, Celestica, an electronic manufacturing services firm,
posted solid performance, as companies continued to find ways to
outsource costs and overhead. United Technologies and General Dynamics,
two diversified manufacturers serving the aerospace industry, benefited
from an increase in demand for commercial jets. As investors became
defensive later in the year, the stocks in major pharmaceutical
companies like Schering Plough performed well. For the first time in ten
years, investors saw the rates in the insurance industry firming, which
propelled the stocks in companies like Allstate, Ace Limited and Chubb
to above-market returns.
Portfolio Manager's Letter (continued)
FIRST INVESTORS GROWTH & INCOME FUND
The Fund held several stocks that had a negative effect on performance.
Two stocks that suffered from the announcement of accounting
irregularities were Navigant Consulting and the Finova Group. Upon the
announcement of the accounting irregularities, both stocks were sold.
However, with the instantaneous flow of information that exists today,
they could only be sold at a loss. Management of Covad Communications, a
provider of high speed digital communication lines, lowered earning
guidance and its stock suffered a substantial erosion in share price.
Lucent Technologies, a former telecommunications bellwether, suffered
from an untimely product introduction in the optical-electronic market.
The stock of the Dow Chemical Company suffered as investor concerns were
focused on the impact of rising oil prices and raw material costs in the
petrochemical sector. Finally, Microsoft continued to suffer from the
ongoing anti-trust issues and from increasing competition from companies
like Oracle and Sun Microsystems.
Going forward, the equity markets will probably remain very volatile.
With a general slowdown in the economy, expected returns in the stock
market should drop to more long-term average levels. If this scenario
becomes the case, stocks that have a solid dividend record will be
attractive investments for both the income and appreciation potential.
The Fund will continue to seek to invest in companies that have
histories of paying dividends, but also may invest in non-dividend-
paying stocks when such stocks offer attractive growth potential.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ DENNIS T. FITZPATRICK
Dennis T. Fitzpatrick
Vice President
and Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS GROWTH & INCOME FUND
Comparison of change in value of $10,000 investment in the First
Investors Growth & Income Fund (Class A shares) and the Standard &
Poor's 500 Index.
As of September 30, 2000
GROWTH &
INCOME S&P 500
FUND INDEX
OCT 93 $ 9,375 $10,000
OCT 94 9,723 10,541
OCT 95 11,620 13,329
OCT 96 14,155 16,540
OCT 97 17,864 21,852
SEP 98 19,443 24,652
SEP 99 24,060 31,506
SEP 00 29,188 35,691
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 21.31% 13.76%
Five Years 19.65% 18.11%
Since Inception
(10/4/93) 17.64% 16.55%
Class B shares
One Year 20.49% 16.49%
Five Years 18.80% 18.60%
Since Inception
(1/12/95) 21.01% 20.93%
The graph compares a $10,000 investment in the First Investors
Growth & Income Fund (Class A shares) beginning 10/4/93 (inception date)
with a theoretical investment in the Standard & Poor's 500 Index. The
Standard & Poor's 500 Index is an unmanaged capitalization-weighted
index of 500 stocks designed to measure performance of the broad
domestic economy through changes in the aggregate market value of such
stocks, which represent all major industries. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25%. The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year). Some
or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for Five Years and Since Inception would
have been 17.91% and 16.15%, respectively. The Class B "S.E.C.
Standardized" Average Annual Total Return for Five Years and Since
Inception would have been 18.40% and 20.58%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Standard & Poor's 500 Index figures from Standard &
Poor's and all other figures from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS GROWTH & INCOME FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--92.1%
Basic Materials--2.9%
100,200 Air Products & Chemicals, Inc. $ 3,607,200 $ 60
167,000 Dow Chemical Company 4,164,562 69
500,100 Lyondell Chemical Company 5,907,431 98
100,000 Praxair, Inc. 3,737,500 62
----------------------------------------------------------------------------------------------------
17,416,693 289
----------------------------------------------------------------------------------------------------
Capital Goods--12.3%
30,000 * Celestica, Inc. 2,077,500 35
15,000 Corning, Inc. 4,455,000 74
75,000 Danaher Corporation 3,731,250 62
45,900 GATX Corporation 1,922,062 32
100,000 General Dynamics Corporation 6,281,250 104
288,000 General Electric Company 16,614,000 276
132,000 Illinois Tool Works, Inc. 7,375,500 123
150,000 Millipore Corporation 7,265,625 121
120,000 Minnesota Mining & Manufacturing Company 10,935,000 182
70,000 Tyco International, Ltd. 3,631,250 60
137,300 United Technologies Corporation 9,508,025 158
----------------------------------------------------------------------------------------------------
73,796,462 1,227
----------------------------------------------------------------------------------------------------
Communication Services--2.6%
84,600 * McLeodUSA, Inc. - Class "A" 1,210,838 20
100,000 * NEXTLINK Communications, Inc. - Class "A" 3,518,750 58
60,000 SBC Communications, Inc. 3,000,000 50
25,000 * United States Cellular Corporation 1,750,000 29
207,000 * WorldCom, Inc. 6,287,625 105
----------------------------------------------------------------------------------------------------
15,767,213 262
----------------------------------------------------------------------------------------------------
Consumer Cyclicals--4.4%
87,300 * BJ's Wholesale Club, Inc. 2,979,113 50
50,000 * Costco Wholesale Corporation 1,746,875 29
93,600 * Dollar Tree Stores, Inc. 3,796,650 63
150,000 Family Dollar Stores, Inc. 2,887,500 48
50,000 * FreeMarkets, Inc. 2,856,250 47
75,000 New York Times Company, Inc. 2,948,438 49
50,000 Pulte Corporation 1,650,000 27
154,500 Wal-Mart Stores, Inc. 7,435,313 124
----------------------------------------------------------------------------------------------------
26,300,139 437
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples--7.7%
292,000 * AT&T Corporation - Liberty Media
Group - Class "A" $ 5,256,000 $ 87
50,000 Avon Products, Inc. 2,043,750 34
41,900 * Clear Channel Communications, Inc. 2,367,350 39
150,000 Clorox Company 5,934,375 99
160,000 * Comcast Corporation - Special Class "A" 6,550,000 109
122,000 Estee Lauder Companies, Inc. - Class "A" 4,468,250 74
105,000 Kimberly-Clark Corporation 5,860,313 97
60,000 Procter & Gamble Company 4,020,000 67
100,000 SUPERVALU, Inc. 1,506,250 25
45,000 * Viacom, Inc. - Class "B" 2,632,500 44
124,000 Walt Disney Company 4,743,000 79
27,100 * Williams-Sonoma, Inc. 941,725 16
----------------------------------------------------------------------------------------------------
46,323,513 770
----------------------------------------------------------------------------------------------------
Energy--6.8%
55,000 Chevron Corporation 4,688,750 78
49,300 Devon Energy Corporation 2,965,395 49
99,000 EOG Resources, Inc. 3,848,625 64
165,726 ExxonMobil Corporation 14,770,330 245
150,000 * Nabors Industries, Inc. 7,860,000 131
115,000 Royal Dutch Petroleum Company - NY
Shares (ADR) 6,892,813 115
----------------------------------------------------------------------------------------------------
41,025,913 682
----------------------------------------------------------------------------------------------------
Financial--16.3%
174,400 ACE, Ltd. 6,845,200 114
375,000 Allstate Corporation 13,031,250 217
121,125 American International Group, Inc. 11,590,148 193
150,000 Aon Corporation 5,887,500 98
970 * Berkshire Hathaway, Inc. - Class "B" 2,007,900 33
196,400 Capital One Financial Corporation 13,760,275 229
87,700 Charles Schwab Corporation 3,113,350 52
105,000 Chubb Corporation 8,308,125 138
205,067 Citigroup, Inc. 11,086,417 184
45,000 Developers Diversified Realty Corporation 579,375 10
180,000 Equity Office Properties Trust 5,591,250 93
101,000 First Industrial Realty Trust, Inc. 3,105,750 51
150,000 First Union Corporation 4,828,125 80
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS GROWTH & INCOME FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Financial (continued)
19,800 Goldman Sachs Group, Inc. $ 2,255,962 $ 37
170,000 Host Marriott Corporation 1,912,500 32
115,100 MBNA Corporation 4,431,350 74
----------------------------------------------------------------------------------------------------
98,334,477 1,635
----------------------------------------------------------------------------------------------------
Health Care--11.0%
170,000 Abbott Laboratories 8,085,625 134
146,000 Baxter International, Inc. 11,652,625 194
115,000 Cardinal Health, Inc. 10,141,562 169
200,000 * Foundation Health Systems, Inc. - Class "A" 3,325,000 55
682,400 * Healthsouth Corporation 5,544,500 92
75,000 Johnson & Johnson 7,045,312 117
143,400 Medtronic, Inc. 7,429,913 124
13,000 PE Corporation - PE Biosystems Group 1,514,500 25
69,000 Pfizer, Inc. 3,100,688 52
175,000 Schering-Plough Corporation 8,137,500 135
----------------------------------------------------------------------------------------------------
65,977,225 1,097
----------------------------------------------------------------------------------------------------
Technology--26.0%
117,200 * Applied Materials, Inc. 6,951,425 116
130,000 Automatic Data Processing, Inc. 8,693,750 145
76,100 AVX Corporation 1,983,356 33
134,600 * Cadence Design Systems, Inc. 3,457,537 58
70,000 * CIENA Corporation 8,596,875 143
145,300 * Cisco Systems, Inc. 8,027,825 133
150,000 * CNET Networks, Inc. 3,653,910 61
133,400 * EMC Corporation 13,223,275 220
200,000 * Entrust Technologies, Inc. 5,525,000 92
56,000 * Exodus Communications, Inc. 2,765,000 46
200,000 * Gartner Group, Inc. 2,325,000 39
100,000 * InfoSpace, Inc. 3,025,000 50
100,000 * Internap Network Services Corporation 3,231,250 54
60,000 * International Rectifier Corporation 3,033,750 50
250,000 * Jabil Circuit, Inc. 14,187,500 236
51,500 * KEMET Corporation 1,422,687 24
65,000 * KLA-Tencor Corporation 2,677,187 45
29,500 Linear Technology Corporation 1,910,125 32
20,400 * Maxim Integrated Products, Inc. 1,640,925 27
80,300 * Microsoft Corporation 4,838,075 80
300,000 Motorola, Inc. 8,475,000 141
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Technology (continued)
124,500 * Niku Corporation $ 3,034,688 $ 50
212,700 Nokia Corporation (ADR) - Class "A" 8,468,119 141
62,000 Nortel Networks Corporation 3,692,875 61
80,000 * Oracle Corporation 6,300,000 105
50,000 * PeopleSoft, Inc. 1,396,875 23
30,800 * PMC-Sierra, Inc. 6,629,700 110
200,000 * RealNetworks, Inc. 7,950,000 132
21,800 * RF Micro Devices, Inc. 683,975 11
100,000 Texas Instruments, Inc. 4,718,750 78
100,000 * WebTrends Corporation 3,737,500 62
----------------------------------------------------------------------------------------------------
156,256,934 2,598
----------------------------------------------------------------------------------------------------
Utilities--2.1%
17,000 * Calpine Corporation 1,774,375 30
122,400 Enron Corporation 10,725,300 178
----------------------------------------------------------------------------------------------------
12,499,675 208
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $412,505,474) 553,698,244 9,205
----------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--.4%
Financial
100,000 Lincoln National Corp., 7.75%, 8/16/2001
(cost $2,508,424) 2,375,000 40
----------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--1.1%
Capital Goods--.0%
$ 250 M Alkermes, Inc., 3.75%, 2007 + 192,812 3
----------------------------------------------------------------------------------------------------
Communication Services--.4%
5,000 M Ibasis, Inc., 5.75%, 2005 2,493,750 41
----------------------------------------------------------------------------------------------------
Consumer Cyclicals--.3%
2,500 M SportsLine.com, Inc., 5%, 2006 + 1,500,000 25
----------------------------------------------------------------------------------------------------
Health Care--.4%
3,000 M Healthsouth Corp., 3.25%, 2003 2,512,500 42
----------------------------------------------------------------------------------------------------
Total Value of Convertible Bonds (cost $10,737,278) 6,699,062 111
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS GROWTH & INCOME FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM CORPORATE NOTES--5.7%
$14,000 M Florida Power Corp., 6.52%, 10/4/00 $ 13,989,849 $ 233
6,300 M Hewlett-Packard Co., 6.49%, 10/18/00 6,279,545 104
1,700 M Northern Illinois Gas Corp., 6.50%, 10/5/00 1,698,464 28
3,500 M Pitney Bowes Credit Corp., 6.50%, 10/23/00 3,485,463 58
9,100 M Prudential Funding Corp., 6.47%, 10/12/00 9,080,367 151
----------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $34,533,688) 34,533,688 574
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $460,284,864) 99.3% 597,305,994 9,930
Other Assets, Less Liabilities 0.7 4,216,213 70
----------------------------------------------------------------------------------------------------
Net Assets 100.00% $601,522,207 $ 10,000
====================================================================================================
* Non-income producing
+ See Note 6
</TABLE>
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS BLUE CHIP FUND
Dear Investor:
We are pleased to present the annual report for the First Investors Blue
Chip Fund for the fiscal year ended September 30, 2000. During the
period, the Fund's return on a net asset value basis was 21.5% for Class
A shares and 20.6% for Class B shares, compared to a return of 17.8% for
the Lipper Large-Cap Core Fund group. During the period, the Fund
declared a capital gains distribution of $1.649 per share on Class A and
Class B shares.
The Blue Chip Fund has attempted to maintain a sector neutral weighting
relative to the sector weightings of the S&P 500 Index as a
main tenet of its investment strategy. While the Fund does have the
flexibility to deviate from that strategy, more often than not its
sector weightings are in line with those of the S&P 500 Index. While
this investment strategy does create a broadly diversified fund, it also
makes the Fund's performance more susceptible to macro-economic events
and the price movements of the overall equity market. Over the past
year, the Fund has encountered a number of market moving events on both
the positive and negative side.
The primary factors driving equity markets are earnings and growth,
which are dependent upon solid economic conditions. A major contributor
to solid economic conditions is an accommodative monetary policy or
interest rate levels that the market does not view as prohibiting
further growth. In the past, however, excessive growth has led to
inflation, which can also undermine real economic growth and corporate
profits. To combat the fear of inflation, the Federal Reserve began
raising interest rates during the year, which had a detrimental effect
on the equity markets by creating concerns about future profits, which
in turn put pressure on the valuations of stocks, as measured by their
price-to-earnings ratios.
The pressure on valuations was led by a reversal in sentiment regarding
the growth outlook for many companies in the technology sector after a
number of "dot-com" companies encountered financial difficulties.
Rumblings of an overall tech slowdown were supported by negative pre-
announcements from a number of bellwether technology companies. The
equity markets were also dealing with tight labor markets and rising
real wages, pointing to further interest rate hikes from the Federal
Reserve. On the international front, the steady decline in the euro, a
sign of a slowing European economy, and Japan's inability to jump start
its economy, were points of concern.
However, there were a number of bright spots that have been and are
continually overlooked. Labor productivity, driven by investments in
information technology, continued to advance at a robust pace.
Globalization, a key long-term investing theme, continues to play out,
generating competitive pressures that will only be alleviated by further
investments in productivity-enhancing equipment (for example,
technology). Globalization will also open markets to many of the
companies that the Fund holds. The long-term confidence in blue chip
stocks and the general equity markets remain positive as well.
A number of the stocks in the Blue Chip Fund contributed to its
performance and many of these stocks were in the technology sector. The
stock of Ciena Corporation benefited from the continuing build-out of
the fiber optic network. Oracle Corporation, a leading supplier of
information management systems and business-to-business software, turned
Portfolio Manager's Letter (continued)
FIRST INVESTORS BLUE CHIP FUND
in another strong performance. The Fund's investments in the energy
sectors were strong across the board, benefiting from higher oil and
natural gas prices. Pepsico and Anheuser Busch, two major beverage
companies within the consumer staples sector, benefited from a well
planned re-structuring and an improving pricing environment,
respectively. The stock of Cardinal Health, a drug distribution company,
benefited from demographically-driven demand trends and solid
productivity gains. In the financial services area, the stocks of
diversified companies with strong balance sheets like American
International Group, Morgan Stanley Dean Witter and Citigroup, performed
well. In the manufacturing outsourcing area, the stock of Jabil Circuit,
Inc. outperformed.
There were a number of stocks that detracted from the Fund's
performance. Microsoft's stock was hurt by competitive factors in the
software industry and the ongoing anti-trust issues. Rising fuel prices
hurt the performance of CSX and Burlington Northern in the
transportation sector. Poor end-market demand hurt the performance of
stocks of Ingersoll Rand and Deere & Company. The general overall
economic slowdown hurt the consumer demand for clothing, hindering the
stock performance of Abercrombie & Fitch. Circuit City, a retailer in
the consumer electronics industry, was hurt by an overall drop in demand
and a poorly timed store remodeling program. The weakness in the
overseas economy hurt the performance of McDonalds. Lucent Technologies
faced some company-specific issues as it failed to properly time major
product introductions and transitions. The stocks of communication
service companies such as Worldcom, Verizon, and Northpoint
Communications performed poorly as competitive pressures drove prices
down.
Going forward, we expect to continue to face volatile equity markets.
While valuations on many stocks will compress, we would expect the
leading companies with real and visible earnings streams to maintain
high or even expand valuations as investors look for quality. While we
remain optimistic that technology is still a growth area, we expect the
market will have to re-calibrate valuations to more accurately reflect
realistic expectations as opposed to perfect conditions. Both fiscal and
monetary policy in the United States and abroad will play major roles in
the direction of the stock market.
The Blue Chip Fund will continue to invest in companies that have
leading market shares in their respective industries, strong balance
sheets and solid growth potential.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ DENNIS T. FITZPATRICK
Dennis T. Fitzpatrick
Vice President
and Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS BLUE CHIP FUND
Comparison of change in value of $10,000 investment in the First
Investors Blue Chip Fund (Class A shares) and the Standard & Poor's 500
Index.
As of September 30, 2000
BLUE CHIP S&P 500
FUND INDEX
JAN 91 $ 9,375 $10,000
DEC 91 11,953 13,047
DEC 92 12,737 14,041
DEC 93 13,727 15,453
DEC 94 13,312 15,657
DEC 95 17,840 21,541
DEC 96 21,507 26,487
DEC 97 27,109 35,324
SEP 98 26,689 37,454
SEP 99 33,331 47,867
SEP 00 40,493 54,226
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 21.49% 13.90%
Five Years 19.11% 17.58%
Ten Years 16.51% 15.76%
Class B Shares
One Year 20.60% 16.60%
Five Years 18.26% 18.06%
Since Inception
(1/12/95) 20.57% 20.50%
The graph compares a $10,000 investment in the First Investors Blue
Chip Fund (Class A shares) beginning 1/1/91 with a theoretical
investment in the Standard & Poor's 500 Index. The Standard & Poor's 500
Index is an unmanaged capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of such stocks, which represent
all major industries. It is not possible to invest directly in this
Index. In addition, the Index does not take into account fees and
expenses. For purposes of the graph and the accompanying table, unless
otherwise indicated, it has been assumed that the maximum sales charge
was deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares performance
may be greater than or less than that shown in the line graph above for
Class A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93, the maximum sales charge was 6.9%). The Class B
"S.E.C. Standardized" returns are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). Some or all of the
expenses of the Fund were waived or assumed. If such expenses had been
paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 13.83%,
17.42% and 15.46%, respectively. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Since Inception
would have been 16.53%, 17.90% and 20.32%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Standard & Poor's 500 Index figures from Standard &
Poor's and all other figures from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS BLUE CHIP FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--90.3%
Basic Materials--1.2%
149,800 Air Products & Chemicals, Inc. $ 5,392,800 $ 74
85,800 Praxair, Inc. 3,206,775 45
----------------------------------------------------------------------------------------------------
8,599,575 119
----------------------------------------------------------------------------------------------------
Capital Goods--6.2%
487,200 General Electric Company 28,105,350 390
231,300 Tyco International, Ltd. 11,998,688 167
70,500 United Technologies Corporation 4,882,125 68
----------------------------------------------------------------------------------------------------
44,986,163 625
----------------------------------------------------------------------------------------------------
Communication Services--4.6%
284,500 ALLTEL Corporation 14,847,344 207
203,700 * McLeodUSA, Inc. - Class "A" 2,915,456 40
106,600 * Qwest Communications International, Inc. 5,123,463 71
139,700 Verizon Communications 6,766,719 94
111,400 * WorldCom, Inc. 3,383,775 47
----------------------------------------------------------------------------------------------------
33,036,757 459
----------------------------------------------------------------------------------------------------
Consumer Cyclicals--4.2%
24,900 * Best Buy Co., Inc. 1,584,262 22
142,000 * Costco Wholesale Corporation 4,961,125 69
82,500 * Dollar Tree Stores, Inc. 3,346,406 46
89,100 Home Depot, Inc. 4,727,869 66
106,500 McGraw-Hill Companies, Inc. 6,769,406 94
183,900 Wal-Mart Stores, Inc. 8,850,188 123
----------------------------------------------------------------------------------------------------
30,239,256 420
----------------------------------------------------------------------------------------------------
Consumer Staples--12.0%
284,600 Anheuser-Busch Companies, Inc. 12,042,137 167
711,400 * AT&T Corporation - Liberty Media
Group - Class "A" 12,805,200 178
71,000 Avon Products, Inc. 2,902,125 40
99,900 * Clear Channel Communications, Inc. 5,644,350 78
120,800 * Comcast Corporation - Special Class "A" 4,945,250 69
106,500 Kimberly-Clark Corporation 5,944,031 83
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples (continued)
217,300 PepsiCo, Inc. $ 9,995,800 $ 139
71,100 Procter & Gamble Company 4,763,700 66
142,000 * Safeway, Inc. 6,629,625 92
132,700 Time Warner, Inc. 10,383,775 144
51,000 Unilever NV - NY Shares (ADR) 2,460,750 34
70,800 * Viacom, Inc. - Class "B" 4,141,800 58
96,000 Walt Disney Company 3,672,000 51
----------------------------------------------------------------------------------------------------
86,330,543 1,199
----------------------------------------------------------------------------------------------------
Energy--4.9%
34,884 Anadarko Petroleum Corporation 2,318,391 31
56,900 Apache Corporation 3,364,212 47
33,600 Chevron Corporation 2,864,400 40
113,800 Conoco, Inc. - Class "B" 3,065,487 43
59,400 Devon Energy Corporation 3,572,910 50
133,800 EOG Resources, Inc. 5,201,475 72
166,170 Exxon Mobil Corporation 14,809,901 206
----------------------------------------------------------------------------------------------------
35,196,776 489
----------------------------------------------------------------------------------------------------
Financial--16.2%
214,800 American International Group, Inc. 20,553,675 284
1,200 * Berkshire Hathaway, Inc. - Class "B" 2,484,000 35
244,100 Capital One Financial Corporation 17,102,256 238
106,600 Charles Schwab Corporation 3,784,300 53
128,200 Cigna Corporation 13,384,080 186
389,466 Citigroup, Inc. 21,055,506 292
24,900 Equity Office Properties Trust 773,456 11
121,000 Fannie Mae 8,651,500 120
23,800 Goldman Sachs Group, Inc. 2,711,713 38
71,200 Household International, Inc. 4,031,700 56
183,000 MBNA Corporation 7,045,500 98
231,400 Mellon Financial Corporation 10,731,175 149
49,800 Morgan Stanley Dean Witter & Company 4,553,588 63
----------------------------------------------------------------------------------------------------
116,862,449 1,623
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS BLUE CHIP FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Health Care--8.3%
87,400 Abbott Laboratories $ 4,156,962 $ 58
148,800 * Amgen, Inc. 10,390,421 144
83,300 IVAX Corporation 3,831,800 53
96,700 Johnson & Johnson 9,083,756 126
174,100 Medtronic, Inc. 9,020,556 125
124,500 Merck & Company, Inc. 9,267,469 129
22,000 PE Corporation - PE Biosystems Group 2,563,000 36
249,200 Pfizer, Inc. 11,198,425 156
----------------------------------------------------------------------------------------------------
59,512,389 827
----------------------------------------------------------------------------------------------------
Technology--29.1%
71,100 * Amkor Technology, Inc. 1,857,488 25
127,900 * Analog Devices, Inc. 10,559,744 147
143,600 Applied Materials, Inc. 8,517,275 118
92,400 AVX Corporation 2,408,175 33
162,400 * Cadence Design Systems, Inc. 4,171,650 58
175,300 * Cisco Systems, Inc. 9,685,325 135
42,700 * Clarent Corporation 1,681,313 23
177,800 * CNET Networks, Inc. 4,331,101 60
151,600 * EMC Corporation 15,027,350 209
213,600 * Entrust Technologies, Inc. 5,900,700 82
66,600 * Exodus Communications, Inc. 3,288,375 46
71,200 * Gateway, Inc. 3,328,600 46
213,000 * InfoSpace, Inc. 6,443,250 89
226,200 Intel Corporation 9,415,575 131
77,800 International Business Machines Corporation 8,752,500 122
35,500 * International Rectifier Corporation 1,794,969 25
300,500 * Jabil Circuit, Inc. 17,053,375 236
61,700 * KEMET Corporation 1,704,462 24
78,600 * KLA-Tencor Corporation 3,237,337 45
35,600 Linear Technology Corporation 2,305,100 32
24,600 * Maxim Integrated Products, Inc. 1,978,763 27
96,600 * Microsoft Corporation 5,820,150 81
427,000 Motorola, Inc. 12,062,750 168
71,000 * Network Appliance, Inc. 9,043,625 126
216,100 Nokia Corporation (ADR) - Class "A" 8,603,481 120
96,700 Nortel Networks Corporation 5,759,694 80
118,600 * Oracle Corporation 9,339,750 130
141,600 * PeopleSoft, Inc. 3,955,950 55
34,900 * PMC-Sierra, Inc. 7,512,225 104
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Technology (continued)
26,100 * RF Micro Devices, Inc. $ 818,888 $ 11
74,600 * Sun Microsystems, Inc. 8,709,550 121
124,900 * Sungard Data Systems, Inc. 5,347,281 74
37,000 * TranSwitch Corporation 2,358,750 33
74,700 * Xilinx, Inc. 6,396,188 89
----------------------------------------------------------------------------------------------------
209,170,709 2,905
----------------------------------------------------------------------------------------------------
Transportation--.4%
142,100 CSX Corporation 3,099,556 43
----------------------------------------------------------------------------------------------------
Utilities--3.2%
263,000 Enron Corporation 23,045,375 320
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $453,834,426) 650,079,548 9,029
----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--10.8%
$ 8,200 M Florida Power & Light Co., 6.52%, 10/4/00 8,194,054 114
2,800 M Ford Motor Credit Co., 6%, 10/2/00 2,799,067 39
15,000 M Ford Motor Credit Co., 6.52%, 10/10/00 14,972,814 208
1,000 M General Electric Capital Corp., 6.45%, 10/4/00 999,282 14
14,650 M Hewlett-Packard Co., 6.48%, 10/4/00 14,639,431 203
14,500 M Kansas City Power & Light Co., 6.51%, 10/24/00 14,437,024 201
12,750 M Pitney Bowes Credit Co., 6.48%, 10/10/00 12,727,004 177
9,000 M Verizon Network Funding, 6.50%, 10/23/00 8,962,605 124
----------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $77,731,281) 77,731,281 1,080
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $531,565,707) 101.1% 727,810,829 10,109
Excess of Liabilities Over Other Assets (1.1) (7,863,533) (109)
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $719,947,296 $10,000
====================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS UTILITIES INCOME FUND
Dear Investor:
We are pleased to present the annual report for the First Investors
Utilities Income Fund for the fiscal year ended September 30, 2000.
During the period, the Fund's return on a net asset value basis was
17.6% for Class A shares and 16.8% for Class B shares, compared to a
return of 22.7% for the Lipper Utility Fund group. During the period,
the Fund declared dividends from net investment income of 12.7 cents per
share on Class A shares and 7.1 cents per share on Class B shares. The
Fund also declared a capital gains distribution of 59.9 cents per share
on Class A and Class B shares.
The primary factors driving the Fund's performance were the economy and
rising interest rates, as well as sector allocation and stock selection.
During the reporting period, the Utilities Income Fund was heavily
influenced by a major shift in sentiment among the electric, gas and
telephone sectors. During the first half of the period, the
telecommunications sector significantly outperformed the electric and
natural gas sectors. Investors focused on the strong demand for services
related to wireless communications and Internet-driven network traffic.
However, in March, after the Federal Reserve boosted the fed funds rate
by 25 basis points (.25%) for the second consecutive month, shares of
electric and gas utilities began a rally that turned conventional wisdom
on its ear. Historically, utility stocks were considered vulnerable in a
rising interest rate environment. However, the unexpected strength in
electric and gas stocks was supported by the media attention given to
power shortages in certain regions of the U.S., as well as by rising
natural gas prices.
Telecommunications was the sector most disrupted by rate hikes. This had
a negative impact on the performance of the Utilities Income Fund. The
telecom sector was also beset by negative news events such as the U.S.
Department of Justice's rejection of Worldcom's proposed acquisition of
Sprint, and the labor strike at Verizon. Concerns over intensified
industry competition put a lid on stock performance as well. On the
positive side, interest rate hikes have reduced the number of
competitors in the industry, because the capital markets have not been
willing to provide funding for new entrants.
Despite the change in perception, the telecommunications industry
continues to benefit from the proliferation of the Internet and wireless
communications. As new applications such as wireless Internet access and
video over the Internet are further developed, it should become evident
that telecommunications providers will be prime beneficiaries.
Going forward, the Utilities Income Fund will continue to carefully
pursue the stocks of promising utilities companies.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ MATTHEW S. WRIGHT
Matthew S. Wright
Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS UTILITIES INCOME FUND
Comparison of change in value of $10,000 investment in the First
Investors Utilities Income Fund (Class A shares), the Standard &
Poor's 500 Index and the Standard & Poor's Utilities Index.
As of September 30, 2000
UTILITIES S&P
INCOME S&P 500 UTILITIES
FUND INDEX INDEX
FEB 93 $ 9,375 $10,000 $10,000
OCT 93 10,112 10,955 10,774
OCT 94 9,085 11,379 8,949
OCT 95 11,025 14,388 11,618
OCT 96 12,397 17,854 12,797
OCT 97 13,992 23,588 14,066
SEP 98 16,237 26,611 18,145
SEP 99 18,183 34,009 17,923
SEP 00 21,380 49,173 20,303
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 17.58% 10.27%
Five Years 14.59% 13.11%
Since Inception
(2/22/93) 11.44% 10.50%
Class B Shares
One Year 16.77% 12.77%
Five Years 13.77% 13.53%
Since Inception
(1/12/95) 15.55% 15.46%
The graph compares a $10,000 investment in the First Investors Utilities
Income Fund (Class A shares) beginning 2/22/93 (inception date) with
theoretical investments in the Standard & Poor's 500 Index and the
Standard & Poor's Utilities Index. The Standard & Poor's 500 Index is an
unmanaged capitalization-weighted index of 500 stocks designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of such stocks, which represent all major
industries. The Standard & Poor's Utilities Index is a capitalization-
weighted index of 39 stocks designed to measure the performance of the
utility sector of the Standard & Poor's 500 Index. It is not possible to
invest directly in these Indices. In addition, the Indices do not take
into account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25%. The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year). Some
or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return for Five Years and Since Inception would
have been 12.90% and 10.17%, respectively. The Class B "S.E.C.
Standardized" Average Annual Total Return for Five Years and Since
Inception would have been 13.32% and 15.17%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Standard & Poor's 500 Index and Standard & Poor's
Utilities Index figures from Standard & Poor's and all other figures
from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS UTILITIES INCOME FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--94.6%
Communication Services--39.1%
69,500 ALLTEL Corporation $ 3,627,031 $ 165
85,200 * AT&T Canada, Inc. - Class "B" 2,598,600 118
77,550 AT&T Corporation 2,278,031 104
97,600 BellSouth Corporation 3,928,400 179
167,353 * Broadwing, Inc. 4,277,961 195
47,100 Cable & Wireless PLC (ADR) 2,004,694 91
149,200 CenturyTel, Inc. 4,065,700 185
107,100 * FLAG Telecom Holdings, Ltd. 1,178,100 54
165,700 * Global Crossing, Ltd. 5,136,700 234
159,400 * Global TeleSystems, Inc. 727,262 33
123,880 Koninklijke KPN NV (ADR) 2,678,911 122
31,100 * Level 3 Communications, Inc. 2,398,588 109
304,400 * McLeodUSA, Inc. - Class "A" 4,356,725 198
99,040 * Metromedia Fiber Network, Inc. 2,407,910 110
124,040 * NEXTLINK Communications, Inc. - Class "A" 4,364,658 199
120,800 * Primus Telecommunications Group, Inc. 1,147,600 52
169,456 * Qwest Communications International, Inc. 8,144,479 371
143,900 SBC Communications, Inc. 7,195,000 328
119,700 Sprint Corporation 3,508,706 160
34,600 Telephone & Data Systems, Inc. 3,830,220 174
1,450 * Telesp Celular Participacoes SA (ADR) (Rights) -- --
141,928 Verizon Communications 6,874,638 313
140,068 * Viatel, Inc. 1,435,697 65
55,500 Vodafone Group PLC 2,053,500 94
18,100 * Western Wireless Corporation - Class "A" 644,812 29
167,256 * WorldCom, Inc. 5,080,401 231
----------------------------------------------------------------------------------------------------
85,944,324 3,913
----------------------------------------------------------------------------------------------------
Energy--2.9%
25,300 Chevron Corporation 2,156,825 98
42,000 Nabors Industries, Inc. 2,200,800 100
25,300 * Smith International, Inc. 2,063,531 94
----------------------------------------------------------------------------------------------------
6,421,156 292
----------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--1.4%
48,400 Health Care Property Investors, Inc. 1,433,850 65
74,200 Healthcare Realty Trust, Inc. 1,567,475 71
----------------------------------------------------------------------------------------------------
3,001,325 136
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS UTILITIES INCOME FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities--51.2%
72,400 Allete $ 1,601,850 $ 73
44,400 American States Water Company 1,343,100 61
185,620 Avista Corporation 4,176,450 190
79,200 * Azurix Corporation 282,150 13
76,000 Cascade Natural Gas Corporation 1,330,000 61
61,500 Coastal Corporation 4,558,688 208
147,900 Conectiv, Inc. - Class "A" 2,643,712 120
89,100 CP&L Energy, Inc. 3,714,356 169
84,500 DQE, Inc. 3,390,563 154
58,000 Duke Energy Corporation 4,973,500 226
135,298 Dynegy, Inc. - Class "A" 7,711,986 351
89,600 Enron Corporation 7,851,200 358
137,100 Kansas City Power & Light Company 3,658,856 167
117,100 MDU Resources Group, Inc. 3,483,725 159
55,200 Midcoast Energy Resources, Inc. 1,135,050 52
103,000 Montana Power Company 3,437,625 157
39,200 National Fuel Gas Company 2,197,650 100
40,900 New Jersey Resources Corporation 1,661,562 76
207,100 * Niagara Mohawk Holdings, Inc. 3,261,825 149
47,200 NICOR, Inc. 1,708,050 78
90,600 Northeast Utilities 1,964,887 89
50,723 NSTAR 2,041,601 93
153,400 OGE Energy Corporation 3,269,338 149
63,800 ONEOK, Inc. 2,536,050 115
48,000 Peoples Energy Corporation 1,602,000 73
146,800 Potomac Electric Power Company 3,697,525 168
105,200 Questar Corporation 2,925,875 133
84,245 SCANA Corporation 2,601,064 118
75,044 ScottishPower PLC (ADR) 2,256,010 103
83,200 Sempra Energy 1,731,600 79
174,560 Sierra Pacific Resources 3,142,080 143
61,000 Southwest Gas Corporation 1,277,187 58
181,700 UtiliCorp United, Inc. 4,701,488 214
138,000 Western Resources, Inc. 2,984,250 136
128,600 Williams Companies, Inc. 5,433,350 247
105,000 * Wisconsin Energy Corporation 2,093,438 95
148,955 * Xcel Energy, Inc. 4,096,263 187
----------------------------------------------------------------------------------------------------
112,475,904 5,122
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $169,851,124) 207,842,709 9,463
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PREFERRED STOCKS--.5%
Communication Services--.3%
11,500 Broadwing, Inc., 6.75% $ 536,188 $ 25
----------------------------------------------------------------------------------------------------
Financial--.2%
10,000 Pacific Telesis Financing I, 7.56% 234,375 11
10,000 Pacific Telesis Financing II, 8.50% 248,750 11
----------------------------------------------------------------------------------------------------
483,125 22
----------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $1,041,190) 1,019,313 47
----------------------------------------------------------------------------------------------------
CORPORATE BONDS--3.3%
Communication Services--2.4%
$ 500 M AT&T Corp., 7.50%, 2006 508,160 23
500 M BellSouth Telecommunications, Inc., 6.375%, 2004 493,348 22
2,000 M Intermedia Communications, Inc., 9.50%, 2009 1,960,000 89
2,000 M McLeodUSA, Inc., 8.125%, 2009 1,735,000 79
500 M United Telephone Company of Florida, 6.25%, 2003 491,340 22
----------------------------------------------------------------------------------------------------
5,187,848 235
----------------------------------------------------------------------------------------------------
Utilities--.9%
500 M Consolidated Edison, Inc., 6.625%, 2002 498,050 23
500 M Idaho Power Co., 6.40%, 2003 494,065 23
500 M NorthWestern Corp., 7.10%, 2005 501,872 23
500 M Union Electric Co., 6.75%, 2008 483,483 22
----------------------------------------------------------------------------------------------------
1,977,470 91
----------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $7,298,466) 7,165,318 326
----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.0%
1,000 M Dow Chemical Co., 6.55%, 10/4/00 999,272 46
1,200 M Ford Motor Credit Co., 6.53%, 10/5/00 1,198,911 55
----------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $2,198,183) 2,198,183 101
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $180,388,963) 99.4% 218,225,523 9,937
Other Assets, Less Liabilities 0.6 1,373,006 63
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $219,598,529 $ 10,000
====================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
Dear Investor:
We are pleased to present the annual report for the First Investors Mid-
Cap Opportunity Fund for the fiscal year ended September 30, 2000.
During the period, the Fund's return on a net asset value basis was
41.4% for Class A shares and 40.5% for Class B shares, compared to a
return of 51.0% for the Lipper Mid-Cap Core Fund group. During the period,
the Fund declared a capital gains distribution of $2.279 per share on
Class A and Class B shares.
The primary factors driving the Fund's performance were the economy and
rising interest rates, as well as sector allocation, stock selection and
the generally solid performance of medium capitalization ("mid-cap")
stocks.
Despite a 14% decline that occurred over a two-week period in early
April, mid-cap stocks progressed steadily throughout the reporting
period. This upward trend masked active sector rotation. Technology,
telecommunications and biotech stocks led the rally through the fourth
quarter of 1999 and the first quarter of 2000, but as those sectors
corrected, utilities and select financials began a sustained rally.
Energy was also strong, after overcoming a mid-summer correction. As the
reporting period came to a close, technology and telecom stocks
continued their suffering, due to questions about whether companies
would continue to invest heavily in their technology and
telecommunications infrastructures going forward.
The technology sector was the strongest contributor to the Fund's
performance. Contract manufacturers Flextronics International Ltd.,
Sanmina Corp., and Jabil Circuit, Inc. were beneficiaries of original
equipment manufacturer outsourcing. Semiconductor companies focused on
data communications and telecom equipment saw strong share price
appreciation. Integrated Device Technologies, Inc. and PMC Sierra, Inc.
are two semiconductor companies that contributed to the Fund's
performance.
The health care sector also contributed positively to the Fund's
performance. The sector's gains were driven by anticipation of the
passage of the Balanced Budget Relief Act which was working its way
through Congress. This legislation, if enacted, will restore billions of
dollars in Medicare payments to health care providers over a period of
years. The Fund's holdings in the health care sector were strong across
the board. Specialty pharmaceuticals (i.e., generic drug) companies,
such as Teva Pharmaceutical Industries and Alpharma, Inc. performed
well, as did hospitals, such as Health Management Associates and Tenet
Health Care Corp. The medical products company Molecular Devices Corp.,
special services company Albany Molecular Research, Inc., and the
managed care company Foundation Systems, Inc., all contributed to the
Fund's performance during the reporting period.
Select financial stocks rallied in the face of rising interest rates.
For example, XL Capital Ltd. and Ace Limited are insurance companies
whose share prices benefited from anticipated premium increases.
Several securities that the Fund held received tender offers. These
included: Southdown, Inc., Voicestream Wireless Corp., Santa Fe Snyder,
Preview Travel, MMC Networks, and Intervu Corp. These events contributed
positively to the Fund's performance.
Several of the Fund's holdings hurt performance. Cinar Corporation's
stock declined when it announced a delay in reporting 1999 financial
results, as their audit committee discovered unauthorized investments.
Some sector allocation decisions also negatively impacted the Fund's
performance. An underweight position in the utilities sector was
detrimental to the Fund when the sector rallied as partial deregulation
led to soaring prices and tight supplies in regions of the U.S. Although
we reduced our exposure to consumer cyclicals in anticipation of slowing
demand due to rising interest rates and gasoline and oil prices, the
Fund's performance was hindered by its positions in Circuit City Stores,
Inc., Nordstrom, Inc., Costco Wholesale Corp. and Ames.
Going forward, we expect continued volatility in the stock market. A
narrowing of price-to-earnings ratios is likely to continue, but leading
companies that have real and visible earnings growth will be rewarded. We
remain optimistic that technology is still a growth area, but share prices
of companies in this sector will be re-evaluated. Both fiscal and monetary
policy remain the major questions moving forward. The overall domestic
economy and Fed policy, as well as foreign economies and their central bank
policies, will play a major role in the direction of the stock market. The
Mid-Cap Opportunity Fund will continue to seek out the stocks of medium-
sized companies that show the most promise.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ PATRICIA D. POITRA
Patricia D. Poitra
Director of Equities
and Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
Comparison of change in value of $10,000 investment in the First
Investors Mid-Cap Opportunity Fund (Class A shares) and the Standard &
Poor's 400 Midcap Index.
As of September 30, 2000
MID-CAP S&P 400
OPPORTUNITY MIDCAP
FUND INDEX
AUG 92 $ 9,375 $10,000
OCT 92 9,441 10,462
OCT 93 9,840 12,460
OCT 94 9,639 12,756
OCT 95 12,009 15,464
OCT 96 13,407 18,148
OCT 97 17,039 24,074
SEP 98 14,242 23,577
SEP 99 20,603 29,586
SEP 00 29,135 42,372
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 41.41% 32.58%
Five Years 18.97% 17.45%
Since Inception
(8/24/92) 15.02% 14.10%
Class B Shares
One Year 40.46% 36.46%
Five Years 18.14% 17.93%
Since Inception
(1/12/95) 19.93% 19.86%
The graph compares a $10,000 investment in the First Investors Mid-Cap
Opportunity Fund (Class A shares) beginning 8/24/92 (inception date)
with a theoretical investment in the Standard & Poor's 400 Midcap Index.
The Standard & Poor's 400 Midcap Index is an unmanaged capitalization-
weighted index of 400 stocks designed to measure performance of the mid-
range sector of the U.S. stock market where the median market
capitalization is approximately $700 million. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25%. The Class B "S.E.C. Standardized" returns are
adjusted for the applicable deferred sales charge (maximum of 4% in
the first year). Some or all of the expenses of the Fund were waived
or assumed. If such expenses had been paid by the Fund, the Class A
"S.E.C. Standardized" Average Annual Total Return for One Year, Five
Years and Since Inception would have been 32.33%, 16.90% and
13.54%,respectively. The Class B "S.E.C. Standardized" Average Annual
Total Return for One Year, Five Years and Since Inception would have
been 36.21%, 17.38% and 19.30%, respectively. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Standard & Poor's 400 Midcap Index figures from Standard &
Poor's and all other figures from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--88.6%
Basic Materials--1.4%
14,800 Southdown, Inc. $ 1,054,500 $ 73
25,000 Vulcan Materials Company 1,004,687 70
----------------------------------------------------------------------------------------------------
2,059,187 143
----------------------------------------------------------------------------------------------------
Capital Goods--2.3%
44,100 Danaher Corporation 2,193,975 152
32,500 Symbol Technologies, Inc. 1,167,969 81
----------------------------------------------------------------------------------------------------
3,361,944 233
----------------------------------------------------------------------------------------------------
Communication Services--2.4%
20,000 * Research in Motion, Ltd. 1,971,250 137
13,000 Telephone & Data Systems, Inc. 1,439,100 100
----------------------------------------------------------------------------------------------------
3,410,350 237
----------------------------------------------------------------------------------------------------
Consumer Cyclicals--6.3%
88,000 * 24/7 Media, Inc. 888,254 62
61,400 * Bed Bath & Beyond, Inc. 1,497,583 104
22,500 Circuit City Stores - Circuit City Group 517,500 36
50,000 * Costco Wholesale Corporation 1,746,875 121
30,600 * Dollar Tree Stores, Inc. 1,241,213 86
35,700 Fred's, Inc. - Class "A" 801,019 56
105,900 * THQ, Inc. 2,462,175 171
----------------------------------------------------------------------------------------------------
9,154,619 636
----------------------------------------------------------------------------------------------------
Consumer Staples--6.1%
49,800 * AT&T Corporation - Liberty Media
Group - Class "A" 896,400 62
56,500 Clorox Company 2,235,280 155
56,500 * Hispanic Broadcasting Corporation 1,574,937 109
23,900 * Suiza Foods Corporation 1,211,430 84
76,800 * Ticketmaster Online-CitySearch, Inc. - Class "B" 1,300,800 90
30,000 * Whole Foods Market, Inc. 1,610,625 112
----------------------------------------------------------------------------------------------------
8,829,472 612
----------------------------------------------------------------------------------------------------
Energy--5.3%
18,000 * Cooper Cameron Corporation 1,326,375 92
53,632 Devon Energy Corporation 3,225,965 224
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Energy (continued)
8,000 * Smith International, Inc. $ 652,500 $45
26,100 Transocean Sedco Forex, Inc. 1,530,113 106
21,000 * Weatherford International, Inc. 903,000 63
----------------------------------------------------------------------------------------------------
7,637,953 530
----------------------------------------------------------------------------------------------------
Financial--10.9%
54,700 ACE, Ltd. 2,146,975 149
26,900 Capital One Financial Corporation 1,884,680 131
60,000 Charter One Financial, Inc. 1,462,500 101
18,100 Chubb Corporation 1,432,163 99
51,400 Golden State Bancorp, Inc. 1,214,325 84
39,200 Mellon Financial Corporation 1,817,900 126
30,000 Nationwide Financial Services, Inc. 1,121,250 78
45,000 Protective Life Corporation 1,344,375 93
21,100 St. Paul Companies, Inc. 1,040,493 72
30,000 Torchmark Corporation 834,375 58
19,500 XL Capital, Ltd. - Class "A" 1,433,250 99
----------------------------------------------------------------------------------------------------
15,732,286 1,090
----------------------------------------------------------------------------------------------------
Health Care--20.5%
24,000 * Albany Molecular Research, Inc. 1,348,500 94
24,400 Alpharma, Inc. 1,491,450 103
42,500 * AmeriSource Health Corporation - Class "A" 1,997,500 139
50,000 * Arena Pharmaceuticals, Inc. 2,150,000 149
30,000 Cardinal Health, Inc. 2,645,625 183
19,400 * Celgene Corporation 1,154,300 80
30,000 * Elan Corporation PLC 1,642,500 114
100,000 * Foundation Health Systems, Inc. - Class "A" 1,662,500 115
20,600 * Genzyme Corporation - General Division 1,404,663 97
53,000 * Health Management Associates, Inc. - Class "A" 1,103,063 77
229,200 * HEALTHSOUTH Corporation 1,862,250 129
33,700 * Invitrogen Corporation 2,396,913 166
15,000 * Molecular Devices Corporation 1,473,750 102
30,000 * Pharmaceutical Product Development, Inc. 796,875 55
55,000 * Tenet Healthcare Corporation 2,000,625 139
34,200 Teva Pharmaceutical Industries, Ltd. (ADR) 2,503,013 174
28,600 * Watson Pharmaceuticals, Inc. 1,855,425 129
----------------------------------------------------------------------------------------------------
29,488,952 2,045
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Real Estate Investment Trusts--.5%
30,000 Public Storage, Inc. $ 718,125 $ 50
----------------------------------------------------------------------------------------------------
Technology--28.0%
15,000 * Altera Corporation 716,250 50
37,100 * ANTEC Corporation 1,094,450 76
61,100 * CNET Networks, Inc. 1,488,359 103
10,000 * Comverse Technology, Inc. 1,080,000 75
39,900 * Cypress Semiconductor Corporation 1,658,344 115
78,500 * Data Return Corporation 1,589,625 110
21,000 * EMC Corporation 2,081,625 144
73,500 * Entrust Technologies, Inc. 2,030,438 141
18,000 * Exodus Communications, Inc. 888,750 62
23,200 * Flextronics International, Ltd. 1,905,300 132
3,400 * GlobeSpan, Inc. 414,800 29
70,300 * InfoSpace, Inc. 2,126,575 147
17,900 * Integrated Device Technology, Inc. 1,619,950 112
31,600 * Internap Network Services Corporation 1,021,075 71
36,000 * Intuit, Inc. 2,052,000 142
7,100 * JNI Corporation 631,900 44
32,600 * LSI Logic Corporation 953,550 66
20,000 * MMC Networks, Inc. 2,530,000 175
37,300 * National Semiconductor Corporation 1,501,325 104
17,000 * Novellus Systems, Inc. 791,563 55
13,100 * Palm, Inc. 693,480 48
100,000 * PeopleSoft, Inc. 2,793,750 194
4,000 * PMC-Sierra, Inc. 861,000 60
21,800 * RealNetworks, Inc. 866,550 60
110,000 * Robotic Vision System, Inc. 656,568 46
56,300 * TeleTech Holdings, Inc. 1,393,425 97
84,500 * Thermo Electron Corporation 2,197,000 152
10,000 * VerticalNet, Inc. 351,250 24
21,200 * Vyyo, Inc. 636,000 44
45,000 * WebTrends Corporation 1,681,875 117
----------------------------------------------------------------------------------------------------
40,306,777 2,795
----------------------------------------------------------------------------------------------------
Utilities--4.9%
72,800 AGL Resources, Inc. 1,460,550 101
10,000 * APW, Ltd. 487,500 34
24,500 DQE, Inc. 983,063 68
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (continued)
52,500 Montana Power Company $ 1,752,188 $ 121
31,000 NSTAR 1,247,750 87
45,000 Potomac Electric Power Company 1,133,438 79
----------------------------------------------------------------------------------------------------
7,064,489 490
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $98,717,243) 127,764,154 8,861
----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--12.5%
$10,900 M Florida Power & Light Co., 6.52%, 10/4/00 10,892,096 755
3,000 M Ford Motor Credit Co., 6%, 10/2/00 2,999,000 208
1,500 M Illinois Tool Works, Inc., 6.48%, 10/3/00 1,499,187 104
2,700 M Prudential Funding Corp., 6.47%, 10/12/00 2,694,175 187
----------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $18,084,458) 18,084,458 1,254
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $116,801,701) 101.1% 145,848,612 10,115
Excess of Liabilities Over Other Assets (1.1) (1,662,055) (115)
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $144,186,557 $10,000
====================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
Portfolio Managers' Letter
FIRST INVESTORS SPECIAL SITUATIONS FUND
Dear Investor:
We are pleased to present the annual report for the First Investors
Special Situations Fund for the fiscal year ended September 30, 2000.
During the period, the Fund's return on a net asset value basis was
43.1% for Class A shares and 41.9% for Class B shares, compared to a
return of 56.6% for the Small-Cap Growth Fund group. During the
period, the Fund declared a capital gains distribution of $1.206 per
share on Class A and Class B shares.
The primary factors driving the Fund's performance were the economy and
rising interest rates, as well as sector allocation, stock selection and
the generally strong performance of the small capitalization sector.
Like the broader stock market, the small-cap sector started the
reporting period with a powerful rally, steadily moving upward through
March, before tumbling back to earth. The downfall was triggered by the
sharp decline of technology stocks, as investors had second thoughts
about many companies' chances for real earnings and sustainable growth.
The sector recovered somewhat, settled into a trading range and
ultimately ended the reporting period with respectable gains.
Amid this volatility, the Special Situations Fund posted solid absolute
returns. While the Fund's performance was boosted by a number of
sectors, health care was unquestionably the performance leader for the
reporting period. Standout stocks that contributed to the Fund's
performance include Province Healthcare Co., which operates hospitals in
non-urban markets in the United States. The Fund's positions in Impath,
Inc., a company that provides cancer diagnostic and prognostic
information and Molecular Devices Corp., which manufactures systems that
help speed the drug development process, also benefited performance.
Despite some ups and downs, several technology holdings also contributed
to the Fund's returns. Top performers included Flextronics International
Ltd., a contract manufacturer, and Alpha Industries, Inc., a maker of
cellular handsets. Several communication equipment companies performed
well, such as Nice Systems Ltd., a manufacturer of computer telephony
integration products for voice, fax, and data, and JDS Uniphase Corp., a
company involved in the fiber optic communications and broadband
markets. Asyst Technologies, Inc., whose products are used in the
production of semiconductors, and PRI Automation, Inc., which
manufactures systems and software that improve semiconductor factory
automation, are examples of holdings in the semiconductor equipment
segment that aided performance.
Energy was the third sector that helped the Fund's performance. In
particular, our position in Santa Fe International, an international
offshore and land contract driller, added to the Fund's returns.
Portfolio Managers' Letter (continued)
FIRST INVESTORS SPECIAL SITUATIONS FUND
Several areas hurt the Fund's performance. The consumer cyclicals sector
was disappointing, especially the performance of Ames Department Stores
and Tuesday Morning Corp., a closeout retailer. Cinar Corporation's
stock price fell as the company announced a delay in reporting 1999
financial results, as their audit committee discovered unauthorized
investments.
In the financial sector, good stock selection was not sufficient to
offset the Fund's underexposure as this sector rallied in anticipation
of the Federal Reserve's recent policy to leave interest rates
unchanged.
Going forward, we expect continued volatility in the stock market. A
narrowing of price-to-earnings ratios is likely to continue, but leading
companies that have real and visible earnings growth will be rewarded.
We remain optimistic that technology is still a growth area, but share
prices of companies in this sector will be re-evaluated. Both fiscal and
monetary policy remain the major questions moving forward. The overall
domestic economy and Fed policy, as well as foreign economies and their
central bank policies, will play major roles in the direction of the
stock market. The Special Situations Fund will continue to seek out the
stocks of small companies that show exceptional promise.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ DAVID A. HANOVER
David A. Hanover
Co-Portfolio Manager
/S/ PATRICIA D. POITRA
Patricia D. Poitra
Director of Equities
and Co-Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS SPECIAL SITUATIONS FUND
Comparison of change in value of $10,000 investment in the First
Investors Special Situations Fund (Class A shares) and the Russell 2000
Index.
As of September 30, 2000
SPECIAL SITUATIONS RUSSELL 2000
FUND INDEX
JAN 91 $ 9,375 $10,000
DEC 91 14,105 14,368
DEC 92 16,539 16,718
DEC 93 19,933 19,561
DEC 94 19,203 18,938
DEC 95 23,798 23,901
DEC 96 26,549 27,857
DEC 97 30,835 34,052
SEP 98 24,788 28,585
SEP 99 32,531 34,058
SEP 00 46,541 42,100
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 43.07% 34.12%
Five Years 13.98% 12.52%
Ten Years 17.83% 17.07%
Class B Shares
One Year 41.94% 37.94%
Five Years 13.17% 12.93%
Since Inception
(1/12/95) 15.99% 15.90%
The graph compares a $10,000 investment in the First Investors Special
Situations Fund (Class A shares) beginning 1/1/91 with a theoretical
investment in the Russell 2000 Index. The Russell 2000 Index consists of
the smallest 2,000 companies in the Russell 3000 Index (which represents
approximately 98% of the investable U.S. equity market). The Russell
2000 Index is an unmanaged index widely accepted as a proxy of small
capitalization stocks. It is not possible to invest directly in this
Index. In addition, the Index does not take into account fees and
expenses. For purposes of the graph and the accompanying table, unless
otherwise indicated, it has been assumed that the maximum sales charge
was deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares performance
may be greater than or less than that shown in the line graph above for
Class A shares based on differences in the sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93, the maximum sales charge was 6.9%). The Class B
"S.E.C. Standardized" returns are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). Some or all of the
expenses of the Fund were waived or assumed. If such expenses had been
paid by the Fund, the Class A "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 33.87%,
12.20% and 16.60%, respectively. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year, Five Years and Since Inception
would have been 37.69%, 12.61% and 15.68%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Russell 2000 Index figures from Frank Russell and
Company and all other figures from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS SPECIAL SITUATIONS FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--84.9%
Basic Materials--1.0%
102,100 Cabot Corporation $ 3,235,294 $ 104
----------------------------------------------------------------------------------------------------
Capital Goods--6.5%
158,800 Actuant Corporation 625,275 20
40,300 * American Superconductor Corporation 1,980,999 64
174,700 * APW, Ltd. 8,516,625 275
99,000 * Benchmark Electronics, Inc. 5,148,000 166
57,400 Precision Castparts Corporation 2,202,725 71
59,900 * Waste Connections, Inc. 1,534,937 50
----------------------------------------------------------------------------------------------------
20,008,561 646
----------------------------------------------------------------------------------------------------
Communication Services--.7%
55,750 * Allegiance Telecom, Inc. 2,076,687 67
----------------------------------------------------------------------------------------------------
Consumer Cyclicals--10.1%
18,900 * Administaff, Inc. 1,430,730 46
93,200 * Children's Place Retail Stores, Inc. 2,399,900 78
63,000 * Concurrent Computer Corporation 1,197,000 39
157,500 * Electronics Boutique Holdings Corporation 3,386,250 109
78,900 Fred's, Inc. - Class "A" 1,770,319 57
160,900 * Hibbett Sporting Goods, Inc. 4,263,850 138
155,000 * ITT Educational Services, Inc. 4,204,375 136
63,000 * Oakley, Inc. 1,106,437 36
122,300 * Reebok International, Ltd. 2,300,769 74
391,500 * THQ, Inc. 9,102,375 294
----------------------------------------------------------------------------------------------------
31,162,005 1,007
----------------------------------------------------------------------------------------------------
Consumer Staples--4.9%
37,800 * Career Education Corporation 1,682,100 54
85,700 * Hain Celestial Group, Inc. 3,010,213 97
112,900 * Suiza Foods Corporation 5,722,619 185
91,400 * Whole Foods Market, Inc. 4,907,037 158
----------------------------------------------------------------------------------------------------
15,321,969 494
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Energy--4.4%
88,200 * Patterson Energy, Inc. $ 3,031,875 $ 98
147,100 Santa Fe International Corporation 6,628,694 214
91,400 * Swift Energy Company 3,798,813 123
----------------------------------------------------------------------------------------------------
13,459,382 435
----------------------------------------------------------------------------------------------------
Financial--3.8%
42,700 Chittenden Corporation 1,096,855 35
279,500 HCC Insurance Holdings, Inc. 5,677,344 184
149,000 Westamerica Bancorporation 4,982,188 161
----------------------------------------------------------------------------------------------------
11,756,387 380
----------------------------------------------------------------------------------------------------
Health Care--23.8%
128,500 * Arena Pharmaceuticals, Inc. 5,525,500 178
152,700 Bindley Western Industries, Inc. 4,886,400 158
55,800 * Celgene Corporation 3,320,100 107
44,100 * Cell Therapeutics, Inc. 2,940,919 95
81,900 * Foundation Health Systems, Inc. - Class "A" 1,361,587 44
151,200 * Impath, Inc. 9,544,500 309
262,700 * Kensey Nash Corporation 3,415,100 110
24,900 * Laboratory Corporation of America Holdings 2,981,775 96
99,100 * Medicis Pharmaceutical Corporation - Class "A" 6,094,650 197
66,700 * Molecular Devices Corporation 6,553,275 212
51,700 * Pharmaceutical Product Development, Inc. 1,373,280 44
23,900 * Protein Design Labs, Inc. 2,879,950 93
188,250 * Province Healthcare Company 7,518,234 243
84,900 Teva Pharmaceutical Industries, Ltd. (ADR) 6,213,619 201
60,200 * Trigon Healthcare, Inc. - Class "A" 3,164,263 102
69,700 * Universal Health Services, Inc. - Class "B" 5,968,063 193
----------------------------------------------------------------------------------------------------
73,741,215 2,382
----------------------------------------------------------------------------------------------------
Technology--29.7%
30,050 * Anaren Microwave, Inc. 4,075,530 132
51,700 * Aspen Technology, Inc. 2,332,963 75
25,200 * BEA Systems, Inc. 1,962,450 63
127,300 * Bell Microproducts, Inc. 3,978,125 128
92,000 * Bottomline Technologies, Inc. 3,432,750 111
84,100 * Computer Network Technology Corporation 2,890,938 93
40,600 * Elantec Semiconductor, Inc. 4,044,775 131
78,100 * EXE Technologies, Inc. 1,171,500 38
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS SPECIAL SITUATIONS FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Technology (continued)
37,900 * F.Y.I., Inc. $ 1,416,513 $ 46
67,400 * Flextronics International, Ltd. 5,535,225 179
124,800 * Galileo Technology, Ltd. 3,962,400 128
84,400 * Intuit, Inc. 4,810,800 155
83,200 * JNI Corporation 7,404,800 240
89,000 * M-Systems Flash Disk Pioneers, Ltd. 3,398,688 110
71,000 * Merix Corporation 4,601,687 149
57,400 * Microsemi Corporation 2,188,375 71
26,500 * MMC Networks, Inc. 3,352,250 108
80,000 * N I C E Systems, Ltd. (ADR) 5,760,000 186
51,000 * Netegrity, Inc. 3,570,000 115
124,800 * Oak Technology, Inc. 3,416,400 110
43,500 * PC Connection, Inc. 2,479,500 80
72,500 * Pericom Semiconductor Corporation 2,682,500 87
12,600 * Pixelworks, Inc. 600,863 19
37,800 * PurchasePro.com, Inc. 3,321,675 107
49,200 * SIPEX Corporation 2,069,475 67
37,200 * Symyx Technologies, Inc. 1,613,550 52
180,500 * TeleTech Holdings, Inc. 4,467,375 144
31,500 * Zebra Technologies Corporation - Class "A" 1,513,969 49
----------------------------------------------------------------------------------------------------
92,055,076 2,973
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $180,733,025) 262,816,576 8,488
----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--11.9%
$ 9,300 M AT&T Corp., 6.48%, 10/5/00 9,291,607 300
8,000 M Hewlett-Packard Co., 6.48%, 10/4/00 7,994,229 258
8,000 M Southern California Edison Co., 6.48%, 10/5/00 7,992,762 258
11,700 M Verizon Network Funding, 6.50%, 10/23/00 11,651,386 377
----------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $36,929,984) 36,929,984 1,193
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $217,663,009) 96.8% 299,746,560 9,681
Other Assets, Less Liabilities 3.2 9,874,885 319
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $309,621,445 $10,000
====================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS FOCUSED EQUITY FUND
Dear Investor:
We are pleased to present the annual report for the First Investors
Focused Equity Fund for the fiscal year ended September 30, 2000. During
the period, the Fund's return on a net asset value basis was -4.6% for
Class A shares and -5.4% for Class B shares, compared to a return of
13.3% for the Standard & Poor's 500 Index ("S&P 500").
The disappointing result this year relative to the S&P 500 is largely a
product of poor stock performance among our media holdings. The volatility
in the market has allowed us to adjust the portfolio to correct one of the
large investments we had coming into this year, as well as position the
portfolio for a more subdued world economy next year. We have eliminated
our investments in some of these, and in other cases reduced the size of
the investments. Liberty Media Corp. was a big disappointment. The
diversified holding company suffered from a combination of poor performance
of some of its well-established holdings, a reduction in the market
valuation of its media properties and some ill-timed forays into new
investments. We also reduced the size of our investment in Clear Channel
Communications, at least until concerns over advertising slowdowns begin to
abate next year. We have continued to add to our investment in Viacom,
Inc., which we initiated through the purchase of CBS, Inc. prior to the
merger with Viacom. Viacom is extremely well positioned to gain market
share in some of the more attractive sectors of media. The company should
generate over $3 billion of free cash flow next year, enabling management
to continue to buy back its stock.
The portfolio remained focused on multinational companies that are
leaders in their businesses. These companies are well-managed, strong
franchises that are growing internally and using their free cash flow to
make accretive acquisitions. These include American International Group,
American Express, Tyco International and General Electric Corp. In an
economy that is showing signs of slowing, and where interest rates
should remain benign, we believed that the earnings strength of these
companies would stand out and be recognized in the market. All four
companies reported strong third quarter earnings, AIG announced its
intention to make opportunistic acquisitions, and General Electric
announced its agreement to purchase Honeywell, Inc. The gradual
stabilization in commercial lines pricing should help AIG accelerate
growth, and its SunAmerica subsidiary should continue to be a positive
contributor to earnings growth. Also, the failure in Japan of Chiyoda
Mutual Life opens the door for AIG in Japan. The company has been
mentioned as a possible buyer of what is left of Chiyoda, but at the
very least, AIG stands to gain market share in Asia.
Portfolio Manager's Letter (continued)
FIRST INVESTORS FOCUSED EQUITY FUND
After the rumors of a merger between United Technologies and Honeywell,
GE acted quickly to preempt the deal with a proposal of its own. The
deal comes with all the concerns of typical large mergers: the question
of integration, the issues of the real growth potential of Honeywell's
businesses and the antitrust issues. These are all valid issues, and
GE's stock traded below $50 for a short time. We used this as an
opportunity to add to our investment, as we believe GE will be
successful at integrating the business. The question of real growth
potential is of greater concern to us, but we believe that we will not
have an answer to this until at least 2002. Despite the stock's current
weakness, the natural synergies created through this merger have the
potential to produce significant growth for GE over the longer term.
Tyco International offered 10% of its undersea cable business to the
public in a successful public offering. For all the criticism the
company has endured with regard to acquisitions, this offering
represents somewhat of a vindication. TyCom Global was purchased from
AT&T in 1997 for $850 million. This offering values the business at over
$17 billion and expectations for growth are high. Tyco retained 90%
ownership, and along with its leading electronics and health care
businesses, Tyco is well positioned to continue to grow. Valuation
remains very reasonable and should help provide upside as the company
continues to execute, even in a slowing economy.
Market volatility remains very high with many issues concerning
investors. The U.S. Presidential election, the volatile technology
sector, a large number of disappointing earnings releases this quarter,
the weak euro and tension in the Middle East have combined to make
investors very nervous. We will focus on companies that are well
positioned in their industries, well managed and, for the most part,
self-financing. Also, with the sales we have made, we are well
positioned to take advantage of any real values that may present
themselves in the months ahead.
Thank you for placing your trust in First Investors.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ COLIN G. MORRIS
Colin G. Morris
Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS FOCUSED EQUITY FUND
Comparison of change in value of $10,000 investment in the First
Investors Focused Equity Fund (Class A shares) and the Standard & Poor's
500 Index.
As of September 30, 2000
FOCUSED EQUITY S&P 500
FUND INDEX
MAR 99 $ 9,375 $10,000
SEP 99 10,197 9,956
SEP 00 9,728 11,279
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year (4.60%) (10.59%)
Since Inception
(3/22/99) 2.47% (1.79%)
Class B Shares
One Year (5.35%) (9.14%)
Since Inception
(3/22/99) 1.69% (.26%)
The graph compares a $10,000 investment in the First Investors
Focused Equity Fund (Class A shares) beginning 3/22/99 (inception date)
with a theoretical investment in the Standard & Poor's 500 Index. The
Standard & Poor's 500 Index is an unmanaged capitalization-weighted
index of 500 stocks designed to measure performance of the broad
domestic economy through changes in the aggregate market value of such
stocks, which represent all major industries. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25%. The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year). Some
or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C. Standardized"
Average Annual Total Return Since Inception would have been (1.86%). The
Class B "S.E.C. Standardized" Average Annual Total Return Since
Inception would have been (.34%). Results represent past performance and
do not indicate future results. Investment return and principal value of
an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Standard &
Poor's 500 Index figures from Standard & Poor's and all other figures
from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS FOCUSED EQUITY FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--89.9%
Basic Materials--.4%
10,000 * TyCom, Ltd. $ 383,750 $ 41
----------------------------------------------------------------------------------------------------
Capital Goods--14.3%
91,700 General Electric Company 5,289,944 570
154,100 Tyco International, Ltd. 7,993,938 862
----------------------------------------------------------------------------------------------------
13,283,882 1,432
----------------------------------------------------------------------------------------------------
Communication Services--2.2%
43,700 * Nextel Communications, Inc. 2,042,975 220
----------------------------------------------------------------------------------------------------
Consumer Staples--22.9%
361,100 * AT&T Corporation - Liberty Media
Group - Class "A" 6,499,800 701
51,600 * Clear Channel Communications, Inc. 2,915,400 314
98,100 Comcast Corporation - Special Class "A" 4,015,969 433
33,000 * General Motors Corporation - Class "H" 1,226,940 132
43,300 * Infinity Broadcasting Corporation 1,428,900 154
88,529 * Viacom, Inc. - Class "B" 5,178,917 558
----------------------------------------------------------------------------------------------------
21,265,926 2,292
----------------------------------------------------------------------------------------------------
Financial--19.3%
100,500 American Express Company 6,105,375 658
64,800 American International Group, Inc. 6,200,550 669
55,900 * Associates First Capital Corporation 2,124,200 229
33,733 Citigroup, Inc. 1,823,690 197
3,300 M & T Bank Corporation 1,683,000 181
----------------------------------------------------------------------------------------------------
17,936,815 1,934
----------------------------------------------------------------------------------------------------
Health Care--9.1%
81,500 Baxter International, Inc. 6,504,719 701
43,100 Pfizer, Inc. 1,936,806 209
----------------------------------------------------------------------------------------------------
8,441,525 910
----------------------------------------------------------------------------------------------------
Technology--21.7%
79,400 * America Online, Inc. 4,267,750 460
108,000 * Cisco Systems, Inc. 5,967,000 644
11,800 Intel Corporation 491,175 53
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS FOCUSED EQUITY FUND
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Technology (continued)
28,100 * L-3 Communications Holdings, Inc. $ 1,587,650 $ 171
21,300 Nortel Networks Corporation 1,268,681 137
15,000 * PMC-Sierra, Inc. 3,228,750 348
10,600 * SDL, Inc. 3,264,800 352
----------------------------------------------------------------------------------------------------
20,075,806 2,165
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $75,889,034) 83,430,679 8,994
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--8.7%
$ 250 M U.S. Treasury Bills, 6.04%, 11/2/00 248,613 26
3,250 M U.S. Treasury Bills, 6.05%, 11/16/00 3,224,156 348
450 M U.S. Treasury Bills, 6.14%, 11/30/00 445,604 48
4,200 M U.S. Treasury Bills, 6%, 12/28/00 4,138,898 446
----------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $8,055,838) 8,057,271 868
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $83,944,872) 98.6% 91,487,950 9,862
Other Assets, Less Liabilities 1.4 1,277,682 138
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $92,765,632 $10,000
====================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS GLOBAL FUND, INC.
Dear Investor:
We are pleased to present the annual report for First Investors Global
Fund, Inc. for the twelve months ended September 30, 2000. First Investors
Global Fund returned 11.7% for Class A shares and 11.0% for Class B shares.
The Morgan Stanley (MSCI) All Country World Free Index returned 8.0% while
the MSCI World Index (which is composed of only developed markets) returned
8.5%. During the period, the Fund declared a capital gains distribution of
88.9 cents per share on Class A and Class B shares.
The Fund outperformed the MSCI All Country World Free Index, due primarily
to strong stock selection relative to the benchmark. As a result of our
view that global economic growth is slowing, we positioned the Fund
somewhat defensively at the margin. We were overweight in the health care,
finance, and energy sectors, and underweight in the more cyclical
industrial and commercial, consumer discretionary sectors and technology,
media and telecom ("TMT") sectors. The underweighting in the TMT sectors
was mildly beneficial to the Fund during the second and third quarters of
this year, when these sectors experienced weakness. However, not having a
higher weighting in TMT sector stocks proved to be a negative factor during
the fourth quarter of 1999 and first quarter of 2000, and hurt the Fund's
performance during the reporting period.
Throughout the year, the geographic allocation of the Fund has been
relatively stable. As of September 30, 2000, the Fund was concentrated in
North America (40% of Fund), Europe (41%), and Japan (11%). The North
American holdings are focused in the U.S. (39% of Fund), with the remainder
allocated to Canada. Our European exposure has been consistently
diversified across nine or ten countries, with the U.K. representing the
largest share at approximately 12.5% of the Fund.
In the U.S., corporate earnings will be pressured by slowing growth,
stubbornly high energy prices, and a weak euro. With some further
weakness likely in technology, the deteriorating economic and earnings
outlooks, and political uncertainty mounting ahead of November's
Congressional and Presidential elections, we have increased our exposure
to relatively stable and predictable growth sectors such as health care,
financials, consumer goods, and utilities. Technology, media, and
telecommunications remain problematic, with many cross currents. We have
reduced our overall exposure to these sectors, but we remain alert for
opportunities if and when they arise.
We maintained our overweight position in continental Europe, although we
did reduce the Fund's weighting slightly during the reporting period.
Europe faces a period of slower GDP growth as consumer spending is
negatively affected by surging import prices caused by the high cost of
energy and weak currencies. Despite the challenging consumer
environment, the first half of 2001 should be markedly stronger. Recent
tax cuts and an increase in exports due to record lows in the euro,
making European goods and services cheaper to the rest of the world,
should take hold and finally help to boost medium-term European GDP
growth above U.S. levels. Inflation will rise further toward the end of
this year but should subside next year. Corporate profits will benefit
over the next six months, in spite of slightly higher interest rates and
inflation.
We added to our U.K. holdings over the course of the year and now have
an overweight position. The U.K. market has underperformed dramatically
over the last couple of years, and relative valuations have become more
attractive. While the U.K. looks relatively robust, our additions in the
U.K. have been more stock and sector driven than market driven, as we
have found attractive stocks in the consumer and finance sectors.
Our weighting in Japan has increased modestly in recent months, bringing
the exposure roughly in line with that of the benchmark. Many of the
cyclical and structural concerns remain, but the picture has improved at
the margin, which, in the context of substantial underperformance,
provides an opportunity. Japan's cyclical upturn is unfolding somewhat
better than we had thought, delivering modest 2% GDP growth this year.
Technology investment and exports remain the economy's main engines.
Data are finally showing a faint rise in consumption, led by
communications related services. Profits continue their rebound,
although expensive oil and the weak euro will dampen profit growth
somewhat. The challenge in Japan is finding good companies in which to
invest. While corporate restructuring is spreading and will benefit the
Japanese economy in the long run, the ability to find companies that
will produce profits in the short run is more difficult.
Exposure to developed and emerging Asia continues to be minimal as
higher oil prices and a slowdown in the U.S. economy will have a
negative impact on the more export oriented and resource poor Asian
countries such as Korea, Taiwan, and Singapore. China and Hong Kong will
remain more insulated as domestic economic growth in China accelerates.
Elsewhere in emerging markets, we are quite cautious as the emerging
economies typically underperform in a slowing economic environment.
High energy prices, the weak euro, and general uncertainty about the
global economic cycle should continue to weigh on financial market
performance into next year. Prospects remain high for a global soft
landing, with technology continuing as the central driver of global
growth. Despite the oil price squeeze, companies in the major equity
markets should still see earnings growth this year and next.
In closing, we believe the Fund is well positioned to capitalize on the
opportunities present in this environment. As always, it is important to
remember that stock markets tend to be cyclical, with periods when stock
prices generally rise and periods when stock prices generally decline.
There are also currency risks as well as country specific political and
economic risks to investing internationally. While there is a fair
degree of diversification across markets and companies with this Fund,
diversification cannot totally protect from falling stock prices.
Investors should be aware of these risks and recognize that successful
investing generally requires a long-term commitment to the markets.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ TROND SKRAMSTAD
Trond Skramstad
Portfolio Manager
October 31, 2000
Cumulative Performance Information
FIRST INVESTORS GLOBAL FUND, INC.
Comparison of change in value of $10,000 investment in the First Investors
Global Fund, Inc. (Class A shares) and the Morgan Stanley Capital
International ("MSCI") All Country World Free Index.
As of September 30, 2000
MORGAN STANLEY
FIRST INVESTORS ALL COUNTRY
GLOBAL WORLD FREE
FUND INDEX
JAN 91 $ 9,375 $10,000
DEC 91 10,951 11,991
DEC 92 10,427 11,484
DEC 93 12,823 14,341
DEC 94 12,338 15,062
DEC 95 14,537 17,993
DEC 96 16,635 20,361
DEC 97 17,963 23,415
SEP 98 17,739 23,575
SEP 99 22,971 30,860
SEP 00 25,665 33,334
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 11.73% 4.75%
Five Years 13.14% 11.68%
Ten Years 11.26% 10.53%
Class B Shares
One Year 10.99% 6.99%
Five Years 12.27% 12.02%
Since Inception
(1/12/95) 13.12% 13.02%
The graph compares a $10,000 investment in the First Investors Global
Fund, Inc. (Class A shares) beginning 1/1/91 with a theoretical
investment in the MSCI All Country World Free Index. The MSCI All
Country World Free Index represents both the developed and the emerging
markets. The Index includes 47 markets of which emerging markets
represent approximately 4.75%. It is not possible to invest directly in
this Index. In addition, the Index does not take into account fees and
expenses. For purposes of the graph and the accompanying table, unless
otherwise indicated, it has been assumed that the maximum sales charge
was deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares performance
may be greater than or less than that shown in the line graph above for
Class A shares based on differences in sales loads and fees paid by
shareholders investing in the different classes.
* Average Annual Total Return figures (for the year ended 9/30/00)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93, the maximum sales charge was 6.9%). The Class B
"S.E.C. Standardized" returns are adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
MSCI All Country World Free Index figures from Morgan Stanley & Co.,
Inc. and all other figures from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--96.1%
United States--37.2%
78,500 Abbott Laboratories $ 3,733,656 $ 99
58,800 Alcoa, Inc. 1,488,375 40
44,600 * America Online, Inc. 2,397,250 64
41,000 American Home Products Corporation 2,319,063 62
54,753 American International Group, Inc. 5,239,178 139
61,200 * AT&T Corporation - Liberty Media
Group - Class "A" 1,101,600 29
36,425 AT&T Wireless Group 1,069,984 28
25,900 Caterpillar, Inc. 874,125 23
31,100 Chevron Corporation 2,651,275 70
118,400 * Cisco Systems, Inc. 6,541,600 174
111,149 Citigroup, Inc. 6,008,993 160
10,200 Corning, Inc. 3,029,400 81
49,150 CVS Corporation 2,276,259 61
51,400 * Dell Computer Corporation 1,583,763 42
42,951 Du Pont (E.I.) de Nemours & Company 1,779,782 47
60,300 Exxon Mobil Corporation 5,374,237 143
37,700 Gannett Company, Inc. 1,998,100 53
88,800 General Electric Company 5,122,650 136
24,300 * General Motors Corporation - Class "H" 903,474 24
31,400 Gillette Company 969,475 26
15,200 * Guidant Corporation 1,074,450 29
36,650 Hewlett-Packard Company 3,555,050 95
52,800 Home Depot, Inc. 2,801,700 74
36,600 Honeywell International, Inc. 1,303,875 35
89,760 Intel Corporation 3,736,260 99
31,400 International Business Machines Corporation 3,532,500 94
14,300 * JDS Uniphase Corporation 1,354,031 36
41,000 Johnson & Johnson 3,851,438 102
23,725 Kimberly-Clark Corporation 1,324,152 35
28,400 Lucent Technologies, Inc. 867,975 23
27,600 Marsh & McLennan Companies, Inc. 3,663,900 97
73,200 McDonald's Corporation 2,209,725 59
37,000 Merrill Lynch & Company, Inc. 2,442,000 65
15,000 * Micron Technology, Inc. 690,000 18
60,600 * Microsoft Corporation 3,651,150 97
23,800 * Oracle Corporation 1,874,250 50
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States (continued)
55,000 PepsiCo, Inc. $ 2,530,000 $ 67
108,625 Pfizer, Inc. 4,881,335 130
59,500 Pharmacia Corporation 3,581,156 95
21,000 Praxair, Inc. 784,875 21
30,180 Procter & Gamble Company 2,022,060 54
60,800 SBC Communications, Inc. 3,040,000 81
28,600 Schlumberger, Ltd. 2,354,138 63
142,237 Southwest Airlines Company 3,449,247 92
27,800 * Sprint Corporation 974,738 26
47,500 State Street Corporation 6,175,000 164
59,600 Texas Instruments, Inc. 2,812,375 75
5,536 Transocean Sedco Forex, Inc. 324,548 9
10,790 * Verisign, Inc. 2,185,649 58
10,700 * Veritas Software Corporation 1,519,400 40
41,230 * Viacom, Inc. - Class "B" 2,411,955 64
54,400 Wal-Mart Stores, Inc. 2,618,000 70
18,800 Weyerhaeuser Company 759,050 20
105,568 * WorldCom, Inc. 3,206,628 85
----------------------------------------------------------------------------------------------------
140,024,849 3,723
----------------------------------------------------------------------------------------------------
United Kingdom--12.5%
103,700 3i Group PLC 2,580,383 69
117,600 AstraZeneca PLC 6,162,010 164
117,800 Barclays PLC 3,260,412 87
271,100 Billiton PLC 968,986 26
494,782 BP Amoco PLC 4,403,842 117
420,400 British Airways PLC 1,776,112 47
236,465 Cable & Wireless PLC 3,373,770 90
71,539 * Colt Telecom Group PLC 2,051,946 55
69,724 Lloyds TSB Group PLC 650,479 17
143,800 Marconi PLC 1,966,627 52
167,186 Prudential Corporation PLC 2,281,512 61
160,335 Psion PLC 1,754,209 47
270,500 Rentokil Initial PLC 606,900 16
84,200 Royal Bank of Scotland Group PLC 1,777,713 47
175,900 Safeway PLC 746,396 20
526,009 Smith & Nephew PLC 2,294,228 61
88,600 SmithKline Beecham PLC 1,213,670 32
34,300 SmithKline Beecham PLC (ADR) 2,353,838 63
98,716 Standard Chartered PLC 1,437,623 38
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United Kingdom (continued)
219,900 Tesco PLC $ 807,928 $ 21
1,037,412 Vodafone AirTouch PLC 3,872,879 103
103,100 Williams PLC 503,030 13
----------------------------------------------------------------------------------------------------
46,844,493 1,246
----------------------------------------------------------------------------------------------------
Japan--10.7%
155,000 Asahi Bank, Ltd. 638,303 17
42,000 Canon, Inc. 1,861,743 49
79,000 Dai Nippon Printing Company, Ltd. 1,173,376 31
10,000 Fuji Soft ABC, Inc. 685,730 18
66,000 Fujisawa Pharmaceutical Company, Inc. 2,430,872 65
29,000 Hoya Corporation 2,273,089 60
3,300 Ito En, Ltd. 262,632 7
7,400 Konami Company, Ltd. 610,846 16
9,800 Kyocera Corporation 1,496,391 40
26,300 Matsumotokiyoshi Company, Ltd. 2,226,957 59
11,000 Matsushita Communication Industrial Company, Ltd. 1,487,229 40
81,000 Matsushita Electric Industrial Company, Ltd. 2,121,321 56
42,000 NEC Corporation 954,192 25
2 Net One Systems Company, Ltd. 56,820 2
193,000 Nikko Securities Company, Ltd. 1,714,603 46
123 Nippon Telegraph & Telephone Corporation 1,206,552 32
50 NTT Dacomo 1,434,388 38
68,000 Omron Corporation 1,790,302 48
15,000 Pioneer Corporation 610,772 16
26,800 Promise Company, Ltd. 2,070,887 55
81,000 Ricoh Company, Ltd. 1,472,932 39
3,200 Rohm Company, Ltd. 876,846 23
27,900 Softbank Corporation 2,607,718 69
28,200 Sony Corporation 2,860,189 76
116,000 Tokai Bank, Ltd. 589,339 16
132,000 Toshiba Corporation 1,063,964 28
26,300 Uni-Charm Corporation 1,404,322 37
34,000 Yamanouchi Pharmaceutical Company, Ltd. 1,636,128 43
25,000 Yamato Transport Company, Ltd. 552,934 15
----------------------------------------------------------------------------------------------------
40,171,377 1,066
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
France--8.0%
28,210 Air Liquide SA $ 3,308,589 $ 88
81,100 Aventis SA 6,083,514 162
11,190 AXA-Uap 1,461,526 39
26,980 BNP Paribas 2,378,604 63
4,209 Canal Plus 630,341 17
21,800 Carrefour SA 1,610,262 43
9,500 France Telecom SA 1,017,787 27
16,000 L'Oreal SA 1,241,854 33
11,300 Pechiney SA 451,743 12
12,600 Pinault-Printemps-Redoute SA 2,218,340 59
20,000 Societe Television Francaise 1 1,147,250 30
10,848 * Thomson Multimedia 545,682 15
44,544 Total Fina SA - Class "B" 6,517,611 173
21,900 Vivendi SA 1,627,312 43
----------------------------------------------------------------------------------------------------
30,240,415 804
----------------------------------------------------------------------------------------------------
Netherlands--4.5%
85,200 Aegon NV 3,214,330 85
67,500 Fortis (NL) NV 2,067,036 55
25,500 Heineken NV 1,417,736 38
35,969 ING Groep NV 2,395,935 64
13,425 Koninklijke Philips Electronics NV 577,806 15
27,100 * KPNQwest NV 771,283 21
83,700 Royal Dutch Petroleum Company 5,059,031 134
14,800 Royal Dutch Petroleum Company - NY Shares (ADR) 887,075 24
14,300 VNU NV 719,325 19
----------------------------------------------------------------------------------------------------
17,109,557 455
----------------------------------------------------------------------------------------------------
Spain--3.9%
55,200 Banco Popular Espanol SA 1,692,812 45
314,400 Banco Santander Central Hispano SA 3,451,578 92
113,200 Endesa SA 2,127,849 57
105,900 Endesa SA (ADR) 1,985,625 53
74,717 * Promotora de Informaciones SA 1,688,006 45
54,300 Repsol-YPF SA 999,127 27
44,654 * Telefonica SA (ADR) 2,654,121 71
----------------------------------------------------------------------------------------------------
14,599,118 390
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Germany--3.6%
74,700 BASF AG $ 2,640,206 $ 70
92,000 Bayerische Motoren Werke (BMW) AG 3,142,053 84
16,200 Deutsche Bank AG 1,343,871 36
77,800 Deutsche Telekom AG 2,670,816 71
64,900 RWE AG 2,279,515 61
10,053 Siemens AG 1,293,061 34
----------------------------------------------------------------------------------------------------
13,369,522 356
----------------------------------------------------------------------------------------------------
Switzerland--3.3%
13,970 Credit Suisse Group 2,610,686 69
3,396 Nestle AG 7,073,363 188
1,760 Novartis AG - Reg. Shs. 2,698,449 72
----------------------------------------------------------------------------------------------------
12,382,498 329
----------------------------------------------------------------------------------------------------
Italy--2.6%
63,100 Alleanza Assicurazioni 835,286 22
50,400 Banca Fideuram SpA 835,297 22
265,600 ENI SpA 1,406,352 37
170,883 Mediaset SpA 2,545,576 68
337,800 Telecom Italia Mobile SpA 2,730,674 73
133,222 Telecom Italia SpA 1,415,524 38
----------------------------------------------------------------------------------------------------
9,768,708 260
----------------------------------------------------------------------------------------------------
Sweden--1.7%
46,370 ForeningsSparbanken AB 659,472 18
374,250 Skandinaviska Enskilda Banken - Class "A" 4,526,121 120
70,140 Telefonaktiebolaget L.M. Ericsson - Class "B" 1,066,699 28
----------------------------------------------------------------------------------------------------
6,252,292 166
----------------------------------------------------------------------------------------------------
Canada--1.5%
77,200 Alcan Aluminum, Ltd. 2,234,521 59
53,500 Nortel Networks Corporation 3,185,827 85
----------------------------------------------------------------------------------------------------
5,420,348 144
----------------------------------------------------------------------------------------------------
Australia--1.3%
89,400 News Corporation, Ltd. (ADR) 5,011,988 132
----------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2000
----------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hong Kong--1.2%
284,000 Cheung Kong Holdings, Ltd. $ 3,433,031 $ 91
121,000 Sun Hung Kai Properties, Ltd. 1,140,646 30
----------------------------------------------------------------------------------------------------
4,573,677 121
----------------------------------------------------------------------------------------------------
Bermuda--.9%
25,200 * Global Crossing, Ltd. 781,200 21
49,850 Tyco International, Ltd. 2,585,969 69
----------------------------------------------------------------------------------------------------
3,367,169 90
----------------------------------------------------------------------------------------------------
Israel--.7%
36,000 * Gilat Satellite Networks, Ltd. 2,767,500 74
----------------------------------------------------------------------------------------------------
China--.7%
82,800 * China Mobile, Ltd. 549,565 15
94,500 * China Unicom, Ltd. (ADR) 2,061,281 55
----------------------------------------------------------------------------------------------------
2,610,846 70
----------------------------------------------------------------------------------------------------
Finland--.6%
35,600 Nokia OYJ - Class "A" 1,442,668 38
29,000 Upm-Kymmene Corporation 741,415 20
----------------------------------------------------------------------------------------------------
2,184,083 58
----------------------------------------------------------------------------------------------------
South Korea--.5%
10,950 Samsung Electronics 1,983,500 53
----------------------------------------------------------------------------------------------------
Ireland--.3%
117,386 Allied Irish Banks PLC 1,280,411 33
----------------------------------------------------------------------------------------------------
Singapore--.2%
156,454 Overseas Union Bank, Ltd. 728,195 18
----------------------------------------------------------------------------------------------------
India--.1%
33,300 ICICI, Ltd. (ADR) 366,300 10
----------------------------------------------------------------------------------------------------
Luxembourg--.1%
3,300 RTL Group 357,624 10
----------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $287,087,337) 361,414,470 9,608
----------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PREFERRED STOCKS--.0%
Brazil
23,000 * Vale Do Rio Doce - Class "B" (cost $0) $ -- $ --
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--3.5%
$13,174 M Lehman Brothers, Inc., 6.53%, 10/02/00,
(collateralized by U.S. Treasury Strips,
due 5/15/12, valued at $13,626,548)
(cost $13,174,000) 13,174,000 350
----------------------------------------------------------------------------------------------------
Total Value of Investments (cost $300,261,337) 99.6% 374,588,470 9,958
Other Assets, Less Liabilities 0.4 1,582,641 42
----------------------------------------------------------------------------------------------------
Net Assets 100.0% $376,171,111 $ 10,000
====================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS GLOBAL FUND, INC.
September 30, 2000
Sector diversification of the portfolio was as follows:
--------------------------------------------------------------------------------------------
Percentage
Sector of Net Assets Value
--------------------------------------------------------------------------------------------
<S> <C> <C>
Banks 10.5% $ 39,575,911
Drugs 9.9 37,211,472
Media 8.1 30,544,748
Telephone 7.5 28,051,567
Energy Sources 7.3 27,298,550
Communications Equipment 6.3 23,709,557
Insurance 5.6 21,158,703
Retail 4.1 15,305,843
Software & Services 3.8 14,203,222
Electronics 3.5 13,127,370
Computers & Office Equipment 3.3 12,339,571
Food/Beverage/Tobacco 3.0 11,283,731
Financial Services 2.6 9,643,170
Medical Products 2.5 9,375,423
Chemicals 2.3 8,513,452
Electrical Equipment 2.2 8,206,013
Entertainment Products 2.0 7,610,895
Travel & Leisure 2.0 7,435,084
Household Products 1.8 6,961,862
Electric Utilities 1.7 6,392,989
Metals & Minerals 1.4 5,143,624
Business Services 1.2 4,542,961
Machinery & Manufacturing 0.9 3,460,094
Automotive 0.8 3,142,053
Energy Services 0.7 2,678,685
Paper & Forest Products 0.4 1,500,465
Aerospace & Defense 0.3 1,303,875
Real Estate Companies 0.3 1,140,646
Transportation 0.1 552,934
Repurchase Agreement 3.5 13,174,000
--------------------------------------------------------------------------------------------
Total Value of Investments 99.6 374,588,470
Other Assets, Less Liabilities 0.4 1,582,641
--------------------------------------------------------------------------------------------
Net Assets 100.0% $376,171,111
============================================================================================
</TABLE>
See notes to financial statements
This page intentionally left blank.
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS
September 30, 2000
-----------------------------------------------------------------------------------------------
TOTAL GROWTH & UTILITIES
RETURN INCOME BLUE CHIP INCOME
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $116,285,461 $460,284,864 $531,565,707 $180,388,963
============ ============ ============ ============
At value (Note 1A) $135,199,295 $597,305,994 $727,810,829 $218,225,523
Cash (overdraft) (124,267) 498,570 343,412 768,344
Receivables:
Dividends and interest 707,558 671,189 239,267 413,251
Shares sold 442,673 1,250,424 1,710,147 697,146
Investment securities sold 1,284,470 5,770,242 8,781,533 1,173,134
Forward currency contracts
(Note 4) -- -- -- --
Other assets -- -- -- --
------------ ------------ ------------ ------------
Total Assets 137,509,729 605,496,419 738,885,188 221,277,398
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities
purchased 995,088 2,837,104 17,843,099 1,164,412
Shares redeemed 77,884 640,635 532,074 336,354
Accrued advisory fees 81,403 353,493 433,802 133,106
Accrued expenses 41,813 142,980 128,917 44,997
------------ ------------ ------------ ------------
Total Liabilities 1,196,188 3,974,212 18,937,892 1,678,869
------------ ------------ ------------ ------------
Net Assets $136,313,541 $601,522,207 $719,947,296 $219,598,529
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $107,284,720 $411,000,420 $446,581,483 $166,751,733
Undistributed net investment
income 1,101,964 -- -- 1,021,206
Accumulated net
realized gain (loss)
on investments and foreign
currency transactions 9,013,023 53,500,657 77,120,691 13,989,030
Net unrealized appreciation
in value
of investments and foreign
currency transactions 18,913,834 137,021,130 196,245,122 37,836,560
------------ ------------ ------------ ------------
Total $136,313,541 $601,522,207 $719,947,296 $219,598,529
============ ============ ============ ============
Net Assets:
Class A $120,188,359 $494,026,515 $615,346,256 $187,470,821
Class B $ 16,125,182 $107,495,692 $104,601,040 $ 32,127,708
Shares outstanding (Note 5):
Class A 7,387,198 29,749,673 19,794,814 21,795,190
Class B 1,004,509 6,648,217 3,462,189 3,791,674
Net asset value
and redemption price
per share - Class A $16.27 $16.61 $31.09 $8.60
============ ============ ============ ============
Maximum offering
price per share - Class A
(Net asset value/.9375)* $17.35 $17.72 $33.16 $9.17
============ ============ ============ ============
Net asset value
and offering price per share -
Class B (Note 5) $16.05 $16.17 $30.21 $8.47
============ ============ ============ ============
* On purchases of $25,000 or more, the sales charge is reduced.
<CAPTION>
-----------------------------------------------------------------------------------------------
MID-CAP SPECIAL FOCUSED
OPPORTUNITY SITUATIONS EQUITY GLOBAL
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $116,801,701 $217,663,009 $ 83,944,872 $300,261,337
============ ============ ============ ============
At value (Note 1A) $145,848,612 $299,746,560 $ 91,487,950 $374,588,470
Cash (overdraft) 2,269,121 510,512 183,294 50,311
Receivables:
Dividends and interest 31,190 37,327 14,465 543,073
Shares sold 764,318 364,088 134,539 274,357
Investment securities sold 1,586,975 14,916,255 2,336,826 5,124,934
Forward currency contracts
(Note 4) -- -- -- 26,520
Other assets -- -- -- 20,335
------------ ------------ ------------ ------------
Total Assets 150,500,216 315,574,742 94,157,074 380,628,000
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities
purchased 6,036,031 5,325,302 1,120,284 3,690,320
Shares redeemed 137,850 365,911 165,221 320,299
Accrued advisory fees 84,603 179,109 57,842 302,926
Accrued expenses 55,175 82,975 48,095 143,344
------------ ------------ ------------ ------------
Total Liabilities 6,313,659 5,953,297 1,391,442 4,456,889
------------ ------------ ------------ ------------
Net Assets $144,186,557 $309,621,445 $ 92,765,632 $376,171,111
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $107,845,212 $180,671,391 $ 95,345,938 $267,762,853
Undistributed net investment
income -- -- -- --
Accumulated net
realized gain (loss)
on investments and foreign
currency transactions 7,294,434 46,866,503 (10,123,384) 34,085,268
Net unrealized appreciation
in value
of investments and foreign
currency transactions 29,046,911 82,083,551 7,543,078 74,322,990
------------ ------------ ------------ ------------
Total $144,186,557 $309,621,445 $ 92,765,632 $376,171,111
============ ============ ============ ============
Net Assets:
Class A $120,434,978 $275,786,205 $ 75,101,573 $350,468,878
Class B $ 23,751,579 $ 33,835,240 $ 17,664,059 $ 25,702,233
Shares outstanding (Note 5):
Class A 4,516,774 8,667,358 7,238,470 43,197,654
Class B 929,868 1,110,884 1,720,899 3,295,256
Net asset value
and redemption price
per share - Class A $26.66 $31.82 $10.38 $8.11
============ ============ ============ ============
Maximum offering
price per share - Class A
(Net asset value/.9375)* $28.44 $33.94 $11.07 $8.65
============ ============ ============ ============
Net asset value
and offering price per share -
Class B (Note 5) $25.54 $30.46 $10.26 $7.80
============ ============ ============ ============
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS
Year Ended September 30, 2000
-----------------------------------------------------------------------------------------------
TOTAL GROWTH & UTILITIES
RETURN INCOME BLUE CHIP INCOME
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Dividends $ 644,558 $ 5,051,727 $ 4,111,967 $ 4,739,956
Interest 3,478,472 2,451,856 2,358,180 1,042,592
------------ ------------ ------------ ------------
Total Income 4,123,030 7,503,583 6,470,147 5,782,548
------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 1,232,554 4,119,353 5,489,768 1,512,689
Distribution plan expenses -
Class A 330,119 1,390,062 1,738,487 523,264
Distribution plan expenses -
Class B 131,137 983,961 923,894 271,207
Shareholder servicing costs 269,123 1,141,206 1,241,507 414,463
Professional fees 15,077 59,287 66,981 23,953
Custodian fees and expenses 22,399 70,277 68,509 24,220
Reports and notices to
shareholders 18,388 85,055 94,636 28,775
Other expenses 26,289 73,957 85,002 21,025
------------ ------------ ------------ ------------
Total expenses 2,045,086 7,923,158 9,708,784 2,819,596
Expenses (waived or
assumed) repaid
to advisor (Note 3) (308,139) -- (498,634) --
Custodian fees paid
indirectly (22,399) (34,265) (16,260) (24,220)
------------ ------------ ------------ ------------
Net expenses 1,714,548 7,888,893 9,193,890 2,795,376
------------ ------------ ------------ ------------
Net investment income (loss) 2,408,482 (385,310) (2,723,743) 2,987,172
------------ ------------ ------------ ------------
Realized and Unrealized Gain
(Loss) on Investments
and Foreign Currency
Transactions (Note 2):
Net realized gain
(loss) on investments
and foreign currency
transactions 9,484,865 58,782,844 79,889,248 14,594,336
Net unrealized appreciation
of investments
and foreign currency
transactions 7,620,689 39,432,427 39,036,359 11,421,000
------------ ------------ ------------ ------------
Net gain (loss) on investments
and foreign
currency transactions 17,105,554 98,215,271 118,925,607 26,015,336
------------ ------------ ------------ ------------
Net Increase (decrease)
in Net Assets
Resulting from Operations $19,514,036 $97,829,961 $116,201,864 $29,002,508
============ ============ ============ ============
+ Net of $505,784 foreign taxes withheld.
<CAPTION>
-----------------------------------------------------------------------------------------------
MID-CAP SPECIAL FOCUSED
OPPORTUNITY SITUATIONS EQUITY GLOBAL
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Dividends $ 278,253 $ 474,442 $ 225,162 $ 4,597,282+
Interest 643,865 1,467,849 585,093 790,543
------------ ------------ ------------ ------------
Total Income 922,118 1,942,291 810,255 5,387,825
------------ ------------ ------------ ------------
Expenses (Notes 1 and 3):
Advisory fees 1,017,016 2,480,251 700,304 3,806,620
Distribution plan expenses -
Class A 258,342 710,978 225,891 1,083,509
Distribution plan expenses -
Class B 153,477 269,542 180,253 234,421
Shareholder servicing costs 323,445 783,139 368,736 895,808
Professional fees 13,564 28,895 23,289 53,924
Custodian fees and expenses 21,055 42,456 15,099 337,203
Reports and notices to
shareholders 27,677 61,198 24,902 67,413
Other expenses 16,990 39,311 15,724 64,733
------------ ------------ ------------ ------------
Total expenses 1,831,566 4,415,770 1,554,198 6,543,631
Less: Expenses (waived or
assumed) repaid
to advisor (Note 3) (254,259) (498,619) 98,991 --
Custodian fees paid
indirectly (20,761) (23,727) (8,446) --
------------ ------------ ------------ ------------
Net expenses 1,556,546 3,893,424 1,644,743 6,543,631
------------ ------------ ------------ ------------
Net investment income (loss) (634,428) (1,951,133) (834,488) (1,155,806)
------------ ------------ ------------ ------------
Realized and Unrealized Gain
(Loss) on Investments
and Foreign Currency
Transactions (Note 2):
Net realized gain
(loss) on investments
and foreign currency
transactions 9,859,101 48,854,825 (9,857,538) 37,837,781
Net unrealized appreciation
of investments
and foreign currency
transactions 19,748,419 42,169,390 5,063,573 2,079,860
------------ ------------ ------------ ------------
Net gain (loss) on investments
and foreign
currency transactions 29,607,520 91,024,215 (4,793,965) 39,917,641
------------ ------------ ------------ ------------
Net Increase (decrease)
in Net Assets
Resulting from Operations $28,973,092 $89,073,082 $(5,628,453) $38,761,835
============ ============ ============ ============
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS
-----------------------------------------------------------------------------------------------
TOTAL RETURN GROWTH & INCOME
---------------------------- ----------------------------
Year Ended September 30 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets From Operations
Net investment income (loss) $ 2,408,482 $ 1,899,010 $ (385,310) $ 740,343
Net realized gain on
investments 9,484,865 2,423,160 58,782,844 42,168,688
Net unrealized appreciation
of investments 7,620,689 4,417,389 39,432,427 28,436,909
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 19,514,036 8,739,559 97,829,961 71,345,940
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -
Class A (1,850,597) (1,713,302) (224,009) (992,115)
Net investment income -
Class B (137,790) (89,161) -- (40,249)
Net realized gains - Class A (2,610,266) (6,072,779) (38,908,483) (42,283)
Net realized gains - Class B (279,235) (367,813) (8,142,287) (7,315)
------------ ------------ ------------ ------------
Total distributions (4,877,888) (8,243,055) (47,274,779) (1,081,962)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 23,930,183 22,168,315 92,133,391 102,341,947
Value of shares issued for
acquisition** -- -- -- --
Reinvestment of distributions 4,426,167 7,731,158 38,682,692 1,048,356
Cost of shares redeemed (13,427,213) (11,023,441) (57,061,761) (43,412,409)
------------ ------------ ------------ ------------
14,929,137 18,876,032 73,754,322 59,977,894
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 6,102,438 5,749,808 26,306,562 30,709,718
Reinvestment of distributions 415,143 453,589 8,111,584 15,077
Cost of shares redeemed (1,326,603) (778,629) (12,213,882) (6,576,464)
------------ ------------ ------------ ------------
5,190,978 5,424,768 22,204,264 24,148,331
------------ ------------ ------------ ------------
Net increase from share
transactions 20,120,115 24,300,800 95,958,586 84,126,225
------------ ------------ ------------ ------------
Net increase in net assets 34,756,263 24,797,304 146,513,768 154,390,203
Net Assets
Beginning of year 101,557,278 76,759,974 455,008,439 300,618,236
------------ ------------ ------------ ------------
End of year+ $136,313,541 $101,557,278 $601,522,207 $455,008,439
============ ============ ============ ============
+Includes undistributed net
investment income of $ 1,101,964 $ 681,869 $ -- $ 211,186
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 1,520,668 1,525,660 5,667,944 6,803,906
Issued for acquisition** -- -- -- --
Issued for distributions
reinvested 298,094 562,168 2,696,717 74,965
Redeemed (852,226) (758,163) (3,504,822) (2,913,486)
------------ ------------ ------------ ------------
Net increase in Class A
shares outstanding 966,536 1,329,665 4,859,839 3,965,385
============ ============ ============ ============
Class B:
Sold 391,494 399,606 1,661,244 2,074,035
Issued for distributions
reinvested 28,466 33,363 577,337 1,096
Redeemed (85,276) (54,229) (764,732) (446,609)
------------ ------------ ------------ ------------
Net increase in Class B
shares outstanding 334,684 378,740 1,473,849 1,628,522
============ ============ ============ ============
** See Note 7.
<CAPTION>
-----------------------------------------------------------------------------------------------
BLUE CHIP UTILITIES INCOME
---------------------------- ----------------------------
Year Ended September 30 2000 1999** 2000 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets From Operations
Net investment income (loss) $ (2,723,743) $ (365,687) $ 2,987,172 $ 2,526,575
Net realized gain on
investments 79,889,248 33,613,424 14,594,336 12,567,447
Net unrealized appreciation
of investments 39,036,359 69,988,521 11,421,000 1,441,561
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 116,201,864 103,236,258 29,002,508 16,535,583
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income - -- (317,918) (2,518,375) (2,228,985)
Class A
Net investment income -
Class B -- -- (217,772) (175,820)
Net realized gains - Class A (28,734,713) (12,371,853) (10,974,670) (6,073,957)
Net realized gains - Class B (4,387,011) (1,609,894) (1,596,987) (729,449)
------------ ------------ ------------ ------------
Total distributions (33,121,724) (14,299,665) (15,307,804) (9,208,211)
------------ ------------ ------------ ------------
Share Transactions*
Class A:
Proceeds from shares sold 105,680,659 72,173,097 38,238,312 26,292,960
Value of shares issued for
acquisition** 5,461,057 -- -- --
Reinvestment of distributions 28,306,844 12,531,573 13,177,398 8,079,229
Cost of shares redeemed (68,401,598) (60,742,794) (20,994,959) (18,524,492)
------------ ------------ ------------ ------------
71,046,962 23,961,876 30,420,751 15,847,697
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 30,352,212 18,332,130 10,823,942 7,033,105
Reinvestment of distributions 4,357,087 1,601,695 1,802,846 899,497
Cost of shares redeemed (10,048,055) (6,583,849) (2,839,316) (2,232,696)
------------ ------------ ------------ ------------
24,661,244 13,349,976 9,787,472 5,699,906
------------ ------------ ------------ ------------
Net increase from share
transactions 95,708,206 37,311,852 40,208,223 21,547,603
------------ ------------ ------------ ------------
Net increase in net assets 178,788,346 126,248,445 53,902,927 28,874,975
Net Assets
Beginning of year 541,158,950 414,910,505 165,695,602 136,820,627
------------ ------------ ------------ ------------
End of year+ $719,947,296 $541,158,950 $219,598,529 $165,695,602
============ ============ ============ ============
+Includes undistributed net
investment income of $ -- $ -- $ 1,021,206 $ 770,181
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 3,441,083 2,714,307 4,451,032 3,318,123
Issued for acquisition** 175,328 -- -- --
Issued for distributions
reinvested 1,046,077 536,723 1,653,404 1,076,259
Redeemed (2,229,628) (2,292,893) (2,454,782) (2,340,185)
------------ ------------ ------------ ------------
Net increase in Class A
shares outstanding 2,432,860 958,137 3,649,654 2,054,197
============ ============ ============ ============
Class B:
Sold 1,011,970 701,312 1,271,775 899,686
Issued for distributions
reinvested 164,605 69,604 230,286 121,706
Redeemed (334,235) (252,535) (334,952) (284,771)
------------ ------------ ------------ ------------
Net increase in Class B
shares outstanding 842,340 518,381 1,167,109 736,621
============ ============ ============ ============
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS
-----------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY SPECIAL SITUATIONS
---------------------------- ----------------------------
Year Ended September 30 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets From Operations
Net investment loss $ (634,428) $ (385,659) $ (1,951,133) $ (2,108,706)
Net realized gain (loss)
on investments and
foreign currency transactions 9,859,101 8,318,436 48,854,825 15,641,687
Net unrealized appreciation
of investments
and foreign currency
transactions 19,748,419 7,655,565 42,169,390 39,320,820
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations 28,973,092 15,588,342 89,073,082 52,853,801
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -
Class A -- -- -- --
Net investment income -
Class B -- -- -- --
Net realized gains - Class A (5,540,009) -- (9,565,666) --
Net realized gains - Class B (857,520) -- (1,053,619) --
------------ ------------ ------------ ------------
Total distributions (6,397,529) -- (10,619,285) --
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 54,175,588 12,420,250 40,481,697 25,887,175
Reinvestment of distributions 5,447,314 -- 9,200,880 --
Cost of shares redeemed (8,135,974) (6,972,115) (30,578,125) (48,042,333)
------------ ------------ ------------ ------------
51,486,928 5,448,135 19,104,452 (22,155,158)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 13,466,046 2,257,965 8,402,061 4,785,997
Reinvestment of distributions 857,486 -- 1,051,189 --
Cost of shares redeemed (1,218,418) (841,719) (3,018,874) (5,042,300)
------------ ------------ ------------ ------------
13,105,114 1,416,246 6,434,376 (256,303)
------------ ------------ ------------ ------------
Net increase (decrease) from
share transactions 64,592,042 6,864,381 25,538,828 (22,411,461)
------------ ------------ ------------ ------------
Net increase in net assets 87,167,605 22,452,723 103,992,625 30,442,340
Net Assets
Beginning of year 57,018,952 34,566,229 205,628,820 175,186,480
------------ ------------ ------------ ------------
End of year+ $144,186,557 $57,018,952 $309,621,445 $205,628,820
============ ============ ============ ============
+Includes undistributed net
investment income of $ -- $ -- $ -- $ --
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 2,219,012 630,256 1,409,813 1,222,125
Issued for distributions
reinvested 274,701 -- 397,446 --
Redeemed (336,390) (364,219) (1,084,025) (2,243,476)
------------ ------------ ------------ ------------
Net increase (decrease)
in Class A shares
outstanding 2,157,323 266,037 723,234 (1,021,351)
============ ============ ============ ============
Class B:
Sold 572,283 116,697 304,498 231,857
Issued for distributions
reinvested 44,848 -- 47,139 --
Redeemed (52,235) (44,116) (111,884) (242,807)
------------ ------------ ------------ ------------
Net increase (decrease)
in Class B shares
outstanding 564,896 72,581 239,753 (10,950)
============ ============ ============ ============
** From March 22, 1999 (commencement of operations) to September 30, 1999.
<CAPTION>
-----------------------------------------------------------------------------------------------
FOCUSED EQUITY GLOBAL
---------------------------- ----------------------------
Year Ended September 30 2000 1999** 2000 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets From Operations
Net investment loss $ (834,488) $ (293,194) $ (1,155,806) $ (215,898)
Net realized gain (loss)
on investments and
foreign currency transactions (9,857,538) 6,594 37,837,781 34,466,572
Net unrealized appreciation
of investments
and foreign currency
transactions 5,063,573 2,479,505 2,079,860 45,266,566
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations (5,628,453) 2,192,905 38,761,835 79,517,240
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income -
Class A -- -- -- (122,828)
Net investment income -
Class B -- -- -- --
Net realized gains - Class A -- -- (34,617,824) (3,199,287)
Net realized gains - Class B -- -- (2,037,163) (150,049)
------------ ------------ ------------ ------------
Total distributions -- -- (36,654,987) (3,472,164)
------------ ------------ ------------ ------------
Share Transactions *
Class A:
Proceeds from shares sold 30,990,117 58,525,759 40,079,950 23,895,185
Reinvestment of distributions -- -- 33,970,568 3,187,812
Cost of shares redeemed (10,595,975) (1,223,549) (42,495,117) (44,619,545)
------------ ------------ ------------ ------------
20,394,142 57,302,210 31,555,401 (17,536,548)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 8,226,155 14,313,156 8,417,257 4,851,361
Reinvestment of distributions -- -- 2,024,307 149,378
Cost of shares redeemed (3,539,700) (494,783) (2,239,228) (2,406,293)
------------ ------------ ------------ ------------
4,686,455 13,818,373 8,202,336 2,594,446
------------ ------------ ------------ ------------
Net increase (decrease) from
share transactions 25,080,597 71,120,583 39,757,737 (14,942,102)
------------ ------------ ------------ ------------
Net increase in net assets 19,452,144 73,313,488 41,864,585 61,102,974
Net Assets
Beginning of year 73,313,488 -- 334,306,526 273,203,552
------------ ------------ ------------ ------------
End of year+ $ 92,765,632 $ 73,313,488 $376,171,111 $334,306,526
============ ============ ============ ============
+Includes undistributed net
investment income of $ -- $ -- $ -- $ --
============ ============ ============ ============
*Shares Issued and Redeemed
Class A:
Sold 2,746,919 5,551,442 4,732,039 3,141,881
Issued for distributions
reinvested -- -- 4,481,605 462,757
Redeemed (947,341) (112,550) (5,040,204) (5,877,187)
------------ ------------ ------------ ------------
Net increase (decrease)
in Class A shares
outstanding 1,799,578 5,438,892 4,173,440 (2,272,549)
============ ============ ============ ============
Class B:
Sold 733,241 1,349,781 1,028,013 649,918
Issued for distributions
reinvested -- -- 276,167 22,262
Redeemed (316,332) (45,791) (274,771) (326,673)
------------ ------------ ------------ ------------
Net increase (decrease)
in Class B shares
outstanding 416,909 1,303,990 1,029,409 345,507
============ ============ ============ ============
</TABLE>
See notes to financial statements
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 series of an 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 to
earn a reasonable level of current income.
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 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 agreement. 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
Notes to Financial Statements (continued)
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 to 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 year ended September 30, 2000, the Bank of New
York, custodian for the Series Fund and Series Fund II, has provided
total credits in the amount of $150,078 against custodian charges based
on the uninvested cash balances of these Funds.
2. Purchases and Sales of Securities--For the year ended September 30,
2000, 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 $125,042,175 $120,471,758 $18,608,679 $11,490,779
Growth & Income 780,632,362 748,998,817 -- --
Blue Chip 801,937,240 785,733,322 -- --
Utilities Income 119,567,993 88,305,586 -- --
Mid-Cap Opportunity 210,726,175 162,938,865 -- --
Special Situations 382,105,563 401,496,016 -- --
Focused Equity 168,241,494 146,255,787 -- --
Global 374,337,816 374,846,218 -- --
</TABLE>
At September 30, 2000, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Fund Cost Appreciation Depreciation Appreciation
-------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Total Return $116,386,126 $ 22,577,007 $ 3,763,838 $ 18,813,169
Growth & Income 461,089,379 153,190,794 16,974,179 136,216,615
Blue Chip 531,664,158 210,261,252 14,114,581 196,146,671
Utilities Income 180,397,523 51,495,359 13,667,359 37,828,000
Mid-Cap Opportunity 116,801,701 33,362,802 4,315,891 29,046,911
Special Situations 218,746,458 85,751,632 4,751,530 81,000,102
Focused Equity 84,761,192 10,182,023 3,455,265 6,726,758
Global 301,153,871 93,865,522 20,430,923 73,434,599
</TABLE>
3. Advisory Fee 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 Investors Federal
Savings Bank ("FIFSB"), 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 are remunerated by the Funds. For
the year ended September 30, 2000, total directors/trustees fees accrued by
the Funds amounted to $84,826.
Notes to Financial Statements (continued)
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 year ended
September 30, 2000.
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, reimbursed the
Focused Equity Fund for organizational expenses and expenses incurred
during the fiscal year ended September 30, 1999, to the extent necessary
to limit the Focused Equity Fund's total expenses 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 ended 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% on the average
daily net assets of Class B shares or any lower expense limitations to
which FIMCO may otherwise agree. At September 30, 1999, the total
organizational expenses and expenses incurred in excess of the above
stated limitations was $98,991. This amount has been recaptured by FIMCO
from the Focused Equity Fund during the year ended September 30, 2000,
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 year ended September 30, 2000, total advisory fees accrued to
FIMCO by the Funds were $20,358,555 of which $1,559,651 was waived.
For the year ended September 30, 2000, FIC, as underwriter, received
$16,553,968 in commissions from the sale of shares of the Funds, after
allowing $42,632 to other dealers. Shareholder servicing costs included
$3,344,497 in transfer agent fees accrued to ADM and $1,303,908 in IRA
custodian fees accrued to FIFSB.
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 year ended September 30, 2000, total
distribution plan fees accrued to FIC by the funds amounted to
$9,408,544.
Wellington Management Company, LLP ("Wellington") serves as investment
subadviser to Global Fund. Arnhold and S. Bleichroeder, Inc. serves as
investment subadviser to Focused Equity Fund. The subadvisers are paid
by FIMCO and not by the Funds.
4. Forward Currency Contracts--A forward currency contract is an
obligation to purchase or sell a specific currency for an agreed-upon
price at a future date. When Global Fund purchases or sells foreign
securities it customarily enters into a forward currency contract to
minimize foreign exchange risk between the trade date and the settlement
date of such transactions. The Fund could be exposed to risk if counter
parties to the contracts are unable to meet the terms of their contracts
or if the value of the foreign currency changes unfavorably. Global Fund
had the following forward currency contracts outstanding at September
30, 2000:
<TABLE>
<CAPTION>
Contracts to Buy Unrealized
Foreign Currency In Exchange for Settlement Date Gain (Loss)
------------------------------ --------------- --------------- -------------
<S> <C> <C> <C> <C>
455,999 British Pounds U.S.$ 662,403 10/2/00 U.S. $11,792
749,342 British Pounds 1,095,876 10/4/00 12,027
193,174 British Pounds 282,624 10/5/00 2,985
------------ -------------
$2,040,903 $26,804
============ =============
</TABLE>
<TABLE>
<CAPTION>
Contracts to Sell Unrealized
Foreign Currency In Exchange for Settlement Date Gain (Loss)
------------------------------ --------------- --------------- -------------
<S> <C> <C> <C> <C>
2,975,142 Euro U.S. $2,627,437 10/2/00 U.S. $ 1,873
10,037,894 Japanese Yen 93,551 10/2/00 659
332,967 Euro 293,760 10/3/00 (83)
12,853,659 Japanese Yen 119,364 10/3/00 414
3,574,534 Swedish Krona 367,925 10/3/00 (3,147)
------------ -------------
$3,502,037 ($284)
============ -------------
Unrealized Gain on Forward Currency Contracts $26,520
=============
</TABLE>
Notes to Financial Statements (continued)
5. Capital--Each Fund sells two classes of shares, Class A and 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
September 30, 2000, Growth & Income Fund held two 144A securities with
an aggregate value of $1,692,812 representing .3% of the Fund's net
assets. These securities are valued as set forth in Note 1A.
7. Reorganization--On March 14, 2000, the First Investors Blue Chip Fund
("Blue Chip Fund") acquired all of the net assets of the Executive
Investors Blue Chip Fund ("Executive Blue Chip Fund") in connection with
a tax-free reorganization that was approved by the Executive Blue Chip
shareholders. The Blue Chip Fund issued 175,328 Class A shares to the
Executive Blue Chip Fund in connection with the reorganization. In
return, it received net assets of $5,461,057 from the Executive Blue
Chip Fund (which included $2,090,588 in unrealized appreciation). The
Blue Chip Fund's shares were issued at their current net asset values as
of the date of reorganization. The aggregate net assets of the Blue Chip
Fund Class A shares and Executive Blue Chip Fund immediately before the
acquisition were $593,084,824 consisting of Blue Chip Fund $587,623,767
and Executive Blue Chip Fund $5,461,057, respectively.
This page intentionally left blank.
<TABLE>
<CAPTION>
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.
-----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
-----------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net
Net Asset Net Realized and
Value, Investment Unrealized Total from Net Net
Beginning Income Gain (Loss) 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
-------
1995(h) $10.89 $ .39 $2.50 $2.89 $ .37 $ .44 $ .81
1996(h) 12.97 .39 .97 1.36 .41 1.12 1.53
1997(h) 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 .29 1.26 1.55 .30 1.18 1.48
2000(f) 14.34 .31 2.29 2.60 .27 .40 .67
Class B
-------
1995(b) 10.90 .25 2.54 2.79 .33 .44 .77
1996(h) 12.92 .32 .94 1.26 .34 1.12 1.46
1997(h) 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 .21 1.22 1.43 .21 1.18 1.39
2000(f) 14.17 .21 2.24 2.45 .17 .40 .57
-----------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
--------------------
Class A
-------
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 .04 2.88 2.92 .05 -- .05
2000(f) 15.18 .01 2.98 2.99 .01 1.55 1.56
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 (.04) 2.80 2.76 -- -- --
2000(f) 14.90 (.08) 2.90 2.82 -- 1.55 1.55
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------- -------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Net
Net Asset Investment Investment Portfolio
Value, Total Net Assets Income Income Turnover
End of Return* End of Period Expenses (Loss) Expenses (Loss) Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN FUND
-----------------
Class A
-------
1995(h) $12.97 26.71 $ 55 1.58 3.08 1.83 2.83 135
1996(h) 12.80 10.62 57 1.53 2.93 1.78 2.68 146
1997(h) 13.74 18.08 67 1.49 1.94 1.74 1.69 149
1998(a) 14.27 4.76 73 1.42+ 2.15+ 1.65+ 1.92+ 111
1999(f) 14.34 11.50 92 1.40 2.08 1.63 1.85 127
2000(f) 16.27 18.67 120 1.33 2.00 1.58 1.75 118
Class B
-------
1995(b) 12.92 25.74 .3 2.41+ 2.24+ 2.67+ 1.98+ 135
1996(h) 12.72 9.86 1 2.32 2.14 2.49 1.97 146
1997(h) 13.63 17.24 3 2.19 1.24 2.44 .99 149
1998(a) 14.13 4.25 4 2.12+ 1.45+ 2.35+ 1.22+ 111
1999(f) 14.17 10.72 9 2.10 1.38 2.33 1.15 127
2000(f) 16.05 17.79 16 2.03 1.30 2.28 1.05 118
-----------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND
--------------------
Class A
-------
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) 15.18 23.75 378 1.36 .29 N/A N/A 112
2000(f) 16.61 21.31 494 1.28 .05 N/A N/A 142
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) 14.90 22.77 77 2.06 (.41) N/A N/A 112
2000(f) 16.17 20.49 107 1.98 (.65) N/A N/A 142
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS
-----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
-----------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net
Net Asset Net Realized and
Value, Investment Unrealized Total from Net Net
Beginning Income Gain (Loss) 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
-------
1995(h) $13.46 $ .19 $4.37 $4.56 $ .20 $ .60 $ .80
1996(h) 17.22 .14 3.39 3.53 .17 1.11 1.28
1997(h) 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 -- 5.46 5.46 .02 .75 .77
2000(f) 27.15 (.09) 5.68 5.59 -- 1.65 1.65
Class B
-------
1995(b) 13.51 .10 4.31 4.41 .16 .60 .76
1996(h) 17.16 .06 3.32 3.38 .06 1.11 1.17
1997(h) 19.37 (.03) 4.91 4.88 -- 1.62 1.62
1998(a) 22.63 (.06) (.42) (.48) -- -- --
1999(f) 22.15 (.14) 5.35 5.21 -- .75 .75
2000(f) 26.61 (.25) 5.50 5.25 -- 1.65 1.65
-----------------------------------------------------------------------------------------------------------------------------
UTILITIES INCOME FUND
---------------------
Class A
-------
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 .13 .74 .87 .13 .37 .50
2000(f) 7.99 .13 1.21 1.34 .13 .60 .73
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 .08 .72 .80 .08 .37 .45
2000(f) 7.88 .08 1.18 1.26 .07 .60 .67
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------- -------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Net
Net Asset Investment Investment Portfolio
Value, Total Net Assets Income Income Turnover
End of Return* End of Period Expenses (Loss) Expenses (Loss) Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
--------------
Class A
-------
1995(h) $17.22 34.01 $170 1.49 1.23 1.74 .98 25
1996(h) 19.47 20.55 240 1.44 .78 1.67 .55 45
1997(h) 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) 27.15 24.88 471 1.32 .01 1.41 (.08) 97
2000(f) 31.09 21.49 615 1.27 (.31) 1.34 (.38) 125
Class B
-------
1995(b) 17.16 32.76 5 2.20+ .52+ 2.46+ .26+ 25
1996(h) 19.37 19.71 17 2.22 -- 2.37 (.16) 45
1997(h) 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) 26.61 24.07 70 2.02 (.69) 2.11 (.78) 97
2000(f) 30.21 20.60 105 1.97 (1.01) 2.04 (1.08) 125
-----------------------------------------------------------------------------------------------------------------------------
UTILITIES INCOME FUND
---------------------
Class A
-------
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) 7.99 11.99 145 1.37 1.69 N/A N/A 65
2000(f) 8.60 17.58 187 1.31 1.57 N/A N/A 46
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) 7.88 11.13 21 2.07 .99 N/A N/A 65
2000(f) 8.47 16.77 32 2.01 .87 N/A N/A 46
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS
-----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
-----------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net
Net Asset Net Realized and
Value, Investment Unrealized Total from Net Net
Beginning Income Gain (Loss) 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
-------
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 (.13) 6.62 6.49 -- -- --
2000(f) 21.02 (.10) 8.02 7.92 -- 2.28 2.28
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 (.23) 6.41 6.18 -- -- --
2000(f) 20.35 (.20) 7.67 7.47 -- 2.28 2.28
-----------------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
-----------------------
Class A
-------
1995(h) $16.43 $(.01) $3.94 $3.93 $ -- $ .73 $ .73
1996(h) 19.63 (.01) 2.28 2.27 -- 1.17 1.17
1997(h) 20.73 (.09) 3.44 3.35 -- 1.90 1.90
1998(a) 22.18 (.05) (4.30) (4.35) -- -- --
1999(f) 17.83 (.22) 5.79 5.57 -- -- --
2000(f) 23.40 (.18) 9.81 9.63 -- 1.21 1.21
Class B
-------
1995(b) 16.40 (.01) 3.85 3.84 -- .73 .73
1996(h) 19.51 (.14) 2.25 2.11 -- 1.17 1.17
1997(h) 20.45 (.15) 3.29 3.14 -- 1.90 1.90
1998(a) 21.69 (.13) (4.22) (4.35) -- -- --
1999(f) 17.34 (.36) 5.64 5.28 -- -- --
2000(f) 22.62 (.33) 9.38 9.05 -- 1.21 1.21
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------- -------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Net
Net Asset Investment Investment Portfolio
Value, Total Net Assets Income Income Turnover
End of Return* End of Period Expenses (Loss) Expenses (Loss) Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MID-CAP OPPORTUNITY FUND
------------------------
Class A
-------
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) 21.02 44.67 50 1.50 (.69) 1.77 (.96) 171
2000(f) 26.66 41.41 120 1.42 (.52) 1.67 (.77) 180
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) 20.35 43.61 7 2.20 (1.39) 2.47 (1.66) 171
2000(f) 25.54 40.46 24 2.12 (1.22) 2.37 (1.47) 180
-----------------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS FUND
-----------------------
Class A
-------
1995(h) $19.63 23.92 $125 1.60 (.08) 1.85 (.33) 80
1996(h) 20.73 11.56 158 1.59 (.13) 1.84 (.38) 99
1997(h) 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) 23.40 31.24 186 1.53 (.97) 1.76 (1.20) 132
2000(f) 31.82 43.07 276 1.41 (.68) 1.60 (.87) 161
Class B
-------
1995(b) 19.51 23.42 5 2.33+ (.81)+ 2.59+ (1.07)+ 80
1996(h) 20.45 10.81 10 2.38 (.92) 2.55 (1.09) 99
1997(h) 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) 22.62 30.45 20 2.23 (1.67) 2.46 (1.90) 132
2000(f) 30.46 41.94 34 2.11 (1.38) 2.30 (1.57) 161
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS
-----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
-----------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net
Net Asset Net Realized and
Value, Investment Unrealized Total from Net Net
Beginning Income Gain (Loss) 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 $(.04) $ .92 $ .88 $ -- $ -- $ --
2000(f) 10.88 (.08) (.42) (.50) -- -- --
Class B
-------
1999(g) 10.00 (.06) .90 .84 -- -- --
2000(f) 10.84 (.15) (.43) (.58) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
GLOBAL FUND
-----------
Class A
-------
1995(h) $5.84 $ .03 $1.01 $1.04 $ .04 $ .27 $ .31
1996(h) 6.57 .04 .91 .95 .04 .89 .93
1997(h) 6.59 .03 .50 .53 .03 .68 .71
1998(a) 6.41 .01 (.09) (.08) -- -- --
1999(f) 6.33 -- 1.86 1.86 -- .08 .08
2000(f) 8.11 (.02) .91 .89 -- .89 .89
Class B
-------
1995(b) 5.76 .03 1.05 1.08 .03 .27 .30
1996(h) 6.54 (.01) .88 .87 .02 .88 .90
1997(h) 6.51 (.01) .49 .48 -- .68 .68
1998(a) 6.31 (.03) (.09) (.12) -- -- --
1999(f) 6.19 (.04) 1.81 1.77 -- .08 .08
2000(f) 7.88 (.07) .88 .81 -- .89 .89
-----------------------------------------------------------------------------------------------------------------------------
+ Annualized
++ Net of expenses waived or assumed by the investment adviser (Note 3).
* Calculated without sales charges.
(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 fiscal year ended September 30.
(g) For the period March 22, 1999 (commencement of operations) to September 30, 1999.
(h) For the calendar year ended December 31.
See notes to financial statements
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------- -------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets++ Waived or Assumed
-------------------- -----------------------
Net Net
Net Asset Investment Investment Portfolio
Value, Total Net Assets Income Income Turnover
End of Return* End of Period Expenses (Loss) Expenses (Loss) Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOCUSED EQUITY FUND
-------------------
Class A
-------
1999(g) $10.88 8.80 $ 59 1.75+ (.93)+ 1.90+ (1.08)+ 57
2000(f) 10.38 (4.60) 75 1.62 (.76) 1.52 (.66) 178
Class B
-------
1999(g) 10.84 8.40 14 2.45+ (1.63)+ 2.60+ (1.78)+ 57
2000(f) 10.26 (5.35) 18 2.32 (1.46) 2.22 (1.36) 178
-----------------------------------------------------------------------------------------------------------------------------
GLOBAL FUND
-----------
Class A
-------
1995(h) $6.57 17.83 $228 1.83 .55 N/A N/A 47
1996(h) 6.59 14.43 263 1.83 .50 N/A N/A 73
1997(h) 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) 8.11 29.63 316 1.72 (.03) N/A N/A 92
2000(f) 8.11 11.73 350 1.65 (.26) N/A N/A 102
Class B
-------
1995(b) 6.54 18.80 1 2.56+ (.19)+ N/A N/A 47
1996(h) 6.51 13.33 5 2.54 (.21) N/A N/A 73
1997(h) 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) 7.88 28.78 18 2.42 (.73) N/A N/A 92
2000(f) 7.80 10.99 26 2.35 (.96) N/A N/A 102
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Independent Auditors' Report
To the Shareholders and Boards of Directors/Trustees 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 Blue Chip Fund, Special
Situations Fund and Total Return Fund (each a series of First Investors
Series Fund), the 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 September 30, 2000, the related statement of operations for the
year then ended, and 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 September 30, 2000, by
correspondence with the custodian and brokers. Where brokers have not
replied to our confirmation requests, we have carried out other
appropriate 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 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 September
30, 2000, and the results of their operations for the year then ended,
changes in their net assets and their financial highlights for the
periods presented, in conformity with generally accepted accounting
principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
October 31, 2000
FIRST INVESTORS EQUITY FUNDS
Directors/Trustees
------------------
James J. Coy (Emeritus)
Robert M. Grohol
Glenn O. Head
Kathryn S. Head
Larry R. Lavoie
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
--------
Glenn O. Head
President
Dennis T. Fitzpatrick
Vice 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
Mark S. Spencer
Assistant Treasurer
Carol Lerner Brown
Assistant Secretary
NOTES
NOTES
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 their 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.
