Portfolio Manager's Letter
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
The principal factor that affected the Funds' performance in 1994 was the
Federal Reserve's decision in February to begin raising short-term interest
rates. The U.S. economic recovery hit full stride during 1994 with gross
domestic product growth of approximately 4%. The unemployment rate fell
from 6.4% to 5.4% as the economy created 3.5 million new jobs. Feeling
secure about job prospects, consumers were willing to borrow and spend.
U.S. vehicle sales reached their highest level since 1988. Despite strong
growth, inflation remained below 3% as low labor costs, improved
productivity and international competition kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually lead to
inflation, the Federal Reserve in February engineered the first of six
short-term interest rate increases which in total raised rates 250 basis
points (2.50%). As is typical at this point in the economic cycle,
long-term interest rates also rose with the benchmark 30 year U.S. Treasury
bond yield increasing approximately 155 basis points (1.55%) during the
year. With higher interest rates creating concern that the economy might
slow, broad stock market indices were unable to advance and ended the year
unchanged to slightly lower despite strong earnings reported by many
companies.
Increasing short-term interest rates provided something to cheer about in
1994 for money market funds. After several years of experiencing low
yields due to low interest rates, money market funds emerged as one of the
best performing investment vehicles of the year.
In the Cash Management Fund, conservative investment philosophies, the
hallmark of your Fund, enabled it to avoid some of the turmoil that more
aggressive funds encountered. The Fund continued to focus on quality,
short-term investments that have been the backbone of the money market
industry while also employing, for a small portion of the portfolio, high
quality structured products that allow funds to benefit from higher rates.
We believe that an average weighted maturity is the measure that most
accurately reflects a money market fund's interest rate risk. As a result
of our conservative approach, your Fund had a "shorter-than-average"
average weighted maturity when interest rates started to rise. This helped
your Fund, as investments in the Fund matured more quickly and were
reinvested at higher rates sooner than in other funds. For 1994, First
Investors Cash Management Fund, Inc. returned 3.69%.
The Tax-Exempt Money Market Fund also benefitted from increased interest
rates. The increases in municipal money market rates were tempered,
however, by increasing assets in tax free money market funds as well as a
decline in the supply of available issues. Many municipalities continued
to struggle with the same situations that they have experienced over the
last few years: budget shortfalls, opposition to higher property taxes and
increased statutory responsibilities from State and Federal mandates.
The Tax-Exempt Money Market Fund has a conservative approach to investing.
Your Fund's investments are in high-grade, short-term municipal securities,
many of which have additional credit supports behind them. The Tax-Exempt
Money Market Fund returned 2.24% in 1994. The income from the Fund was
100% free from Federal income taxes and partially free from certain state
taxes.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
/s/ Michael J. O'Keefe
Michael J. O'Keefe
Assistant Portfolio Manager
January 31, 1995
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
December 31, 1994
- - -----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Annualized $10,000 of
Amount Security Yield* Value Net Assets
- - -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES--85.9%
$ 5,000M Appalachian Power Inc., 1/3/95 6.03% $ 4,998,325 $ 389
5,000M AT&T Corp., 1/23/95 5.56 4,983,011 388
4,000M CPC International Inc., 2/1/95 5.48 3,981,124 310
3,000M Ford Motor Credit Co., 1/31/95 6.12 2,984,700 232
2,000M Ford Motor Credit Co., 2/3/95 6.05 1,988,908 155
3,225M GTE Florida Inc., 1/5/95 5.95 3,222,868 251
4,000M GTE Hawaiian Telephone Inc., 1/27/95 6.07 3,982,465 310
3,000M Heinz (H.J.) Co., 2/2/95 5.90 2,984,267 232
2,000M Laclede Gas Co., 1/19/95 5.76 1,994,240 155
5,000M Lubrizol Corp., 1/11/95 6.00 4,991,667 388
5,000M McGraw-Hill Inc., 2/7/95 5.93 4,969,526 387
5,000M METLIFE Funding, Inc., 1/20/95 5.53 4,985,407 388
5,000M National Rural Utilities Coop. Fin. Corp., 1/27/95 5.98 4,978,406 387
3,500M Nestle Capital Corp., 1/9/95 5.85 3,495,450 272
3,000M Pitney Bowes Credit Inc., 1/13/95 5.40 2,994,600 233
2,800M Proctor & Gamble Co., 1/12/95 5.95 2,794,909 218
5,000M Raytheon Credit Corp., 1/20/95 5.95 4,984,299 388
5,000M Rockwell International Corp., 1/9/95 5.97 4,993,367 389
6,000M Smithkline Beecham Finance, 1/17/95 5.90 5,984,267 466
4,450M Southern California Gas Co., 2/6/95 5.77 4,424,323 344
6,000M Stanley Works, 1/20/95 5.48 5,982,646 466
5,000M Tampa Electric Co., 1/30/95 5.96 4,975,994 387
5,000M Temple-Inland Inc., 1/6/95 6.00 4,995,833 389
5,000M Texaco Inc., 1/11/95 6.00 4,991,667 388
4,825M Wisconsin Gas Co., 2/21/95 5.82 4,785,218 372
1,500M Wisconsin Power & Light Co., 1/19/95 5.92 1,495,560 116
2,500M Wisconsin Power & Light Co., 1/25/95 5.76 2,490,400 194
- - -----------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $110,433,447) 110,433,447 8,594
- - -----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--5.9%
$ 2,600M Federal Farm Credit Bank, 3/13/95 6.12% $ 2,568,618 $ 200
5,000M Federal National Mortgage Assn., 2/15/95 6.04 4,962,250 386
- - -----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agencies (cost $7,530,868) 7,530,868 586
- - -----------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--7.1%
5,000M Comerica Bank, 11/8/95 5.82 5,040,536 392
250M Federal Home Loan Bank, 4/2/95 6.31 253,947 20
2,000M Federal Home Loan Bank, 4/27/95 5.30 2,017,059 157
1,850M Pepsico Inc., 4/13/95 5.85 1,872,140 146
- - -----------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $9,183,682) 9,183,682 715
- - -----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $127,147,997)+ 98.9% 127,147,997 9,895
Other Assets, Less Liabilities 1.1 1,347,139 105
- - -----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $128,495,136 $10,000
===========================================================================================================
The interest rates shown for the Corporate and U.S. Government Agency Notes
are the effective rates at the time of purchase by the Fund. The interest
rates on floating rate securities are adjusted periodically; the rates
shown are the rates that were in effect at December 31, 1994.
+Aggregate cost for federal income tax purposes is the same.
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
December 31, 1994
- - -----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- - -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL NOTES AND VARIABLE RATE SECURITIES--100.7%
Alabama--3.8%
$1,000M Birmingham General Obligation Bond, VR, 5.5%
(LOC; First Alabama Bank) $ 1,003,516 $ 380
- - -----------------------------------------------------------------------------------------------------------
California--6.7%
700M Los Angeles County, TRAN, 4.5%, 6/30/95 768,671 291
1,000M San Diego County, TRAN, VR, 5.75% 1,003,584 380
- - -----------------------------------------------------------------------------------------------------------
1,772,255 671
- - -----------------------------------------------------------------------------------------------------------
Colorado--5.6%
700M Arapahoe County Highway Revenue Bond, 3.8%, 2/28/95 708,964 268
475M Clear Creek Cnty., Finl. Pool Prog. Rev. Wts., VR, 5%
(Financing Pool Program) (LOC; National Westminster Bank) 476,417 180
300M Colorado Health Fac. Auth., 4%, 5/1/95
(Sisters of Charity-Sunny Acres) 302,022 114
- - -----------------------------------------------------------------------------------------------------------
1,487,403 562
- - -----------------------------------------------------------------------------------------------------------
Connecticut--3.0%
300M Connecticut State Special Assessment, VR, 5.45% 303,216 115
500M Connecticut State Unlimited Tax G.O., 4.9%, 5/15/95 503,117 190
- - -----------------------------------------------------------------------------------------------------------
806,333 305
- - -----------------------------------------------------------------------------------------------------------
District of Columbia--3.8%
1,000M District of Columbia University Rev. Bond, VR, 5.55%
(Georgetown University) (SPA; Sanwa Bank) 1,003,721 380
- - -----------------------------------------------------------------------------------------------------------
Florida--4.1%
535M Pinellas County Health Facs. Rev. Bond, VR, 4.95%
(Bayfront Medical Center Project)
(SPA; Barnett Bank South Florida) 536,542 203
540M Volusia County Health Fac. Rev. Bond, VR, 5.5%
(SPA; Morgan Guaranty) 542,002 205
- - -----------------------------------------------------------------------------------------------------------
1,078,544 408
- - -----------------------------------------------------------------------------------------------------------
Georgia--7.6%
900M Clayton County, Multi-Family Hsg. Auth. Rev. Bond, VR, 5.5%
(Ten Oaks Apartments) 902,635 342
600M Cobb County, Multi-Family Hsg. Auth. Rev. Bond, VR, 5.65%
(LOC; Mellon Bank) 602,239 228
500M Columbus Downtown Dev. Auth. Rev. Bond, VR, 5.55%
(One Arsenal Place Project) (LOC; National Westminster Bank) 501,774 190
- - -----------------------------------------------------------------------------------------------------------
2,006,648 760
- - -----------------------------------------------------------------------------------------------------------
Illinois--3.8%
1,000M Chicago General Obligation Bond, VR, 5.4% 1,003,552 380
- - -----------------------------------------------------------------------------------------------------------
Iowa--3.4%
900M Des Moines Comm. Dev. Rev. Bond, VR, 5.5%
(Capital Center III Project) (LOC; Union Bank of Switzerland) 903,147 342
- - -----------------------------------------------------------------------------------------------------------
Kentucky--1.9%
500M Clarke County, Poll. Control Rev., 3.75%, 4/17/95 503,915 191
- - -----------------------------------------------------------------------------------------------------------
Louisiana--2.7%
700M De Soto Parish Poll. Control Rev., VR, 5.4%
(Central Louisiana Electric) (LOC; Swiss Bank Corporation) 702,012 266
- - -----------------------------------------------------------------------------------------------------------
Maine--4.8%
250M Maine Health & Educational Facilities, VR, 5.25% 250,874 95
1,000M Maine State Tax Anticipation Notes, 4.5%, 6/30/95 1,024,090 388
- - -----------------------------------------------------------------------------------------------------------
1,274,964 483
- - -----------------------------------------------------------------------------------------------------------
Mississippi--3.8%
1,000M Claiborne County, National Rural Utility Revenue, 3.85%, 3/10/95 1,003,270 380
- - -----------------------------------------------------------------------------------------------------------
Missouri--3.8%
1,000M Independence Missouri Water Utility Revenue, 3.8%, 3/10/95 1,005,622 380
- - -----------------------------------------------------------------------------------------------------------
New Jersey--3.1%
800M New Jersey State Turnpike Authority Rev. Bonds, VR, 4.65%
(LOC; Societe Generale) 812,003 307
- - -----------------------------------------------------------------------------------------------------------
New York--3.8%
1,000M City of New York, TRAN, 4.25%, 2/15/95 1,016,588 385
- - -----------------------------------------------------------------------------------------------------------
Ohio--1.9%
500M City of Centerville, Health Care Rev., VR, 5.5%
(Bethany Luthern Village Care Facility) (LOC; PNC Bank) 503,258 189
- - -----------------------------------------------------------------------------------------------------------
Pennsylvania--6.9%
500M City of Philadelphia, 4.75%, 6/15/95 513,423 194
500M Pennsylvania State University Project Notes G.O., 5.5%, 12/21/95 502,597 190
200M Sayre County, Health Care Fac. Rev. Bond, VR, 5.25%
(LOC; First National Bank of Chicago) 200,697 76
600M Sayre County, Health Care Fac. Rev. Bond, VR, 5.25%, 602,092 228
- - -----------------------------------------------------------------------------------------------------------
1,818,809 688
- - -----------------------------------------------------------------------------------------------------------
Rhode Island--3.1%
800M State of Rhode Island, TRAN, 4.25%, 6/30/95 818,562 310
- - -----------------------------------------------------------------------------------------------------------
South Carolina--3.8%
1,000M Charleston County, Hosp. Facs. Rev., VR, 5.5%
(LOC; Bankers Trust) 1,003,560 380
- - -----------------------------------------------------------------------------------------------------------
Texas--8.6%
300M Harris County, Ind. Dev. Corp. Poll Control Rev., VR, 4.75% 300,991 114
300M San Antonio Ltd. Tax G.O., 8.875%, 8/1/95 319,001 121
1,000M State of Texas General Obligation Bond, 7.5%, 10/1/95 1,038,477 393
600M Texas Health Facs. Rev. Bond, VR, 5.5%
(Cook-Fort Worth Childrens Hsp.) (LOC; Societe Generale) 602,201 228
- - -----------------------------------------------------------------------------------------------------------
2,260,670 856
- - -----------------------------------------------------------------------------------------------------------
Virgina--5.7%
700M Louisa County, Ind. Dev. Auth., 3.6%, 1/18/95 703,314 266
800M Lynchburgh Hosp. Fac. Rev. Bond, VR, 5.25% 802,789 304
- - -----------------------------------------------------------------------------------------------------------
1,506,103 570
- - -----------------------------------------------------------------------------------------------------------
Wisconsin--3.9%
1,000M State of Wisconsin General Obligation, 6.4%, 5/1/95 1,019,672 385
- - -----------------------------------------------------------------------------------------------------------
Wyoming--1.1%
300M Lincoln County, Poll. Control Rev. Bond, VR, 4.75% 300,991 114
- - -----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $26,615,118)+ 100.7% 26,615,118 10,072
Excess of Liabilities Over Other Assets (.7) (191,479) (72)
- - -----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $26,423,639 $10,000
===========================================================================================================
The interest rates shown for municipal notes are the effective rates at the
time of purchase by the Fund. The interest rates on variable rate
securities are adjusted periodically; the rates shown are the rates that
were in effect at December 31, 1994. The variable rate securities are
subject to optional tenders (which are exercised through put options) or
mandatory redemptions. The put options are exercisable on a daily, weekly,
monthly or semi-annual basis at a price equal to the principal amount plus
accrued interest.
+Aggregate cost for federal income tax purposes is the same.
Summary of Abbreviations:
LOC Letter of Credit
SPA Security Purchase Agreement
TRAN Tax and Revenue Anticipation Notes
VR Variable Rate Notes
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1994
- - ---------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- - ---------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities (Note 1A):
At amortized cost $127,147,997 $26,615,118
=========== ==========
At value $127,147,997 $26,615,118
Cash (overdraft) 800,730 (147,744)
Receivable for capital stock sold 900,000 --
Other assets 24,200 4,885
----------- ----------
Total Assets 128,872,927 26,472,259
----------- ----------
Liabilities
Payables:
Capital stock redeemed 233,231 1,396
Dividend disbursing agent 18,882 21,660
Accrued expenses 95,795 19,346
Accrued advisory fee 29,883 6,218
----------- ----------
Total Liabilities 377,791 48,620
----------- ----------
Net Assets $128,495,136 $26,423,639
=========== ==========
Shares Outstanding--Class A ($.01 par value, 2,500,000,000 and
500,000,000 shares authorized, respectively)(Note 2) 128,495,136 26,423,639
=========== ==========
Net Asset Value, Offering Price and Redemption Price Per
Share--Class A (Net assets divided by shares outstanding) $1.00 $1.00
========== ==========
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Operations
Year Ended December 31, 1994
- - ---------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- - ---------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Interest income $5,343,200 $737,282
---------- ----------
Expenses:
Advisory fee (Note 3) 615,914 125,495
Shareholder servicing costs (Note 3) 609,754 85,738
Reports and notices to shareholders 78,358 8,395
Professional fees 37,571 19,020
Custodian fees 48,669 8,442
Other expenses 32,415 8,718
---------- ----------
Total expenses 1,422,681 255,808
Less: Portion of expenses waived (Note 3) 559,958 80,027
---------- ----------
Net expenses 862,723 175,781
---------- ----------
Net investment income 4,480,477 561,501
Net realized loss on investments (2,388) --
---------- ----------
Net Increase in Net Assets Resulting from Operations $4,478,089 $561,501
========== ==========
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- - ------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
----------------------------- ----------------------------
Year Ended December 31 1994 1993 1994 1993
- - ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 4,480,477 $ 3,415,208 $ 561,501 $ 426,142
Net realized loss on investments (2,388) (633) -- (81)
----------- ----------- ---------- ----------
Net increase
in net assets resulting
from operations and declared as
distributions to shareholders
(Note 1C) $ 4,478,089 $ 3,414,575 $ 561,501 $ 426,061
=========== =========== ========== ==========
Capital Share Transactions
(Note 2)
Net proceeds from sale
of shares $281,311,936 $262,715,648 $37,386,855 $36,279,157
Net asset value of shares
issued to shareholders
in reinvestment of
distributions 3,812,783 3,310,339 544,099 410,740
----------- ----------- ---------- ----------
285,124,719 266,025,987 37,930,954 36,689,897
Cost of shares redeemed (283,807,863) (289,742,518) (35,364,302) (38,232,319)
----------- ----------- ---------- ----------
Total increase (decrease)
in net assets 1,316,856 (23,716,531) 2,566,652 (1,542,422)
Net Assets
Beginning of year 127,178,280 150,894,811 23,856,987 25,399,409
----------- ----------- ---------- ----------
End of year $128,495,136 $127,178,280 $26,423,639 $23,856,987
=========== =========== ========== ==========
</TABLE>
Notes to Financial Statements
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
1. Significant Accounting Policies- -The Funds are registered under the
Investment Company Act of 1940 (the "1940 Act") as diversified, open- end
management investment companies.
A. Security Valuation--The Funds value all of their portfolio securities
using the amortized cost method, which excludes unrealized gains or losses
from the computation of portfolio value. This is accomplished by valuing a
security at cost plus amortized discount or accrued interest. While this
method of valuation tends to produce stable valuation of securities held to
their maturity, the actual market value of the security, if sold prior to
maturity, may vary from the security's value to the Funds while in the
Funds' portfolios.
B. Federal Income Taxes--It is the policy of the Funds to continue to
comply with the special provisions of the Internal Revenue Code applicable
to investment companies and to make sufficient distributions of income and
capital gains to relieve the Funds from all, or substantially all, federal
income taxes.
C. Distributions--The Funds declare distributions daily and pay
distributions monthly. Distributions are declared from the total of net
investment income and net realized gains or losses on investments.
Distributions paid by First Investors Tax-Exempt Money Market Fund, Inc.
from net investment income are considered exempt-interest dividends and as
such should not be subject to federal income taxes.
D. 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 amortized cost basis for both financial statement and
federal income tax purposes. Interest income and estimated expenses are
accrued daily.
2. Capital Stock--By action of the Funds' Boards of Directors, the Funds
amended their Articles of Incorporation on October 21, 1994. Of the
5,000,000,000 shares originally authorized, the Cash Management Fund
allocated 2,500,000,000 shares as Class A and 2,500,000,000 shares as Class
B capital stock. For the Tax-Exempt Money Market Fund, of the 1,000,000,000
shares originally authorized, 500,000,000 shares were allocated as Class A
and 500,000,000 shares were allocated as Class B capital stock. As of
December 31, 1994, only Class A shares have been issued.
At December 31, 1994, paid-in capital amounted to $128,495,136 for First
Investors Cash Management Fund, Inc. and $26,423,639 for First Investors
Tax-Exempt Money Market Fund, Inc. The numbers of shares transacted during
the period are the same as the amounts included in the Statement of Changes
in Net Assets since shares are recorded at $1.00 per share.
3. Advisory Fee and Other Transactions With Affiliates (Also see Note
4)--Certain officers and directors of the Funds are officers and directors
of the investment adviser, First Investors Management Company, Inc.
("FIMCO"), the underwriter, First Investors Corporation ("FIC"), the
transfer agent, Administrative Data Management Corp. ("ADM") and/or First
Financial Savings Bank, S.L.A. ("FFS"), custodian of First Investors Cash
Management Fund, Inc.'s Individual Retirement Accounts. Officers and
directors of the Funds received no remuneration from the Funds for serving
in such capacities. Their remuneration (together with certain other
expenses of the Funds) is paid by FIMCO or FIC.
The Investment Advisory Agreements provide as compensation to FIMCO an
annual fee, payable monthly, at the rate of 1/2 of 1% of each Fund's
average daily net assets. For the year ended December 31, 1994, the
investment adviser voluntarily reduced this fee by $374,848 for First
Investors Cash Management Fund, Inc. and by $50,532 for First Investors
Tax-Exempt Money Market Fund, Inc.
Pursuant to certain state regulations, FIMCO has agreed to reimburse each
Fund if and to the extent that the Fund's aggregate operating expenses,
including the advisory fee but generally excluding interest, taxes,
brokerage commissions and extraordinary expenses, exceed any limitation on
expenses applicable to the Fund in those states (unless waivers of such
limitations have been obtained). The amount of any such reimbursement is
limited to the yearly advisory fee. For the year ended December 31, 1994,
no reimbursement was required pursuant to these provisions.
For the year ended December 31, 1994, shareholder servicing costs of First
Investors Cash Management Fund, Inc. included transfer agent fees and out
of pocket expenses accrued to ADM of $398,175 (net of $185,110 waived) and
$26,469 in custodian fees paid to FFS. First Investors Tax-Exempt Money
Market Fund, Inc.'s shareholder servicing costs included transfer agent
fees and out of pocket expenses accrued to ADM in the amount of $56,243
(net of $29,495 waived).
4. Distribution Plan--First Investors Tax-Exempt Money Market Fund, Inc.
has adopted a Distribution Plan under Rule 12b-1 of the 1940 Act, under
which fees may be paid to Administrators for distribution and
administrative services. Payments under the Plan are made by the adviser
and not by the Fund..
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
The following table sets forth the per share operating performance data for
a Class A share of capital stock outstanding, total return, ratios to
average net assets and other supplemental data for each year indicated.
- - ----------------------------------------------------------------------------------------------------------
Per Share Data Ratios/Supplemental Data
- - -------------------------------------- ------------------------------------------------------------------
Ratio to Average
Net Assets
Ratio to Prior to Waiver
Average Net Assets+ of Fees (Note 3)
Net Asset -------------------- ------------------
Value Dividends Net Assets, Net Net
(unchanged Net from Net Total End of Investment Investment
during each Investment Investment Return Year Expenses Income Expenses Income
year Income Income (%) (thousands) (%) (%) (%) (%)
- - ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
- - ------------------------------------------
1985 $1.00 $.073 $.073 7.54 $332,772 .95 7.30 N/A N/A
1986 1.00 .058 .058 5.92 251,041 1.07 5.81 N/A N/A
1987 1.00 .058 .058 6.01 218,099 .98 5.84 1.02 5.80
1988 1.00 .068 .068 7.03 222,715 .85 6.83 .95 6.73
1989 1.00 .085 .085 8.80 335,678 .84 8.44 .96 8.32
1990 1.00 .074 .074 7.71 372,081 .86 7.45 .96 7.35
1991 1.00 .052 .052 5.35 217,150 .94 5.33 1.13 5.14
1992 1.00 .030 .030 3.03 150,895 .87 3.02 1.16 2.72
1993 1.00 .025 .025 2.57 127,178 .70 2.54 1.15 2.09
1994 1.00 .036 .036 3.69 128,495 .70 3.72 1.15 3.26
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
- - --------------------------------------------------
1985 $1.00 $.047 $.047 4.78 $35,562 .67 4.67 .75 4.60
1986 1.00 .041 .041 4.15 47,838 .77 4.02 N/A N/A
1987 1.00 .039 .039 4.01 40,106 .76 3.92 N/A N/A
1988 1.00 .046 .046 4.68 39,467 .75 4.59 N/A N/A
1989 1.00 .055 .055 5.67 36,736 .81 5.52 N/A N/A
1990 1.00 .052 .052 5.31 40,745 .80 5.19 N/A N/A
1991 1.00 .038 .038 3.87 31,157 .94 3.83 1.02 3.74
1992 1.00 .023 .023 2.36 25,399 .95 2.33 1.05 2.23
1993 1.00 .018 .018 1.85 23,857 .70 1.83 .92 1.61
1994 1.00 .022 .022 2.24 26,424 .70 2.24 1.02 1.92
- - ----------------------------------------------------------------------------------------------------------
+Net of fees waived by the investment adviser and the transfer agent.
</TABLE>
See notes to financial staements
Independent Auditor's Report
To the Shareholders and Board of Directors of
First Investors Cash Management Fund, Inc. and
First Investors Tax-Exempt Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
First Investors Cash Management Fund, Inc. and First Investors Tax- Exempt
Money Market Fund, Inc. including the portfolios of investments, as of
December 31, 1994, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two
years in the period then ended and financial highlights for each of the ten
years in the period then ended. 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 December 31,
1994, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of First Investors Cash Management Fund, Inc. and First Investors
Tax-Exempt Money Market Fund, Inc. at December 31, 1994, and the results of
their operations, changes in their net assets and financial highlights for
each of the respective periods presented, in conformity with generally
accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1995
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Directors
- - ---------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
F. William Ortman, Jr.
Rex R. Reed
Herbert Rubinstein
John T. Sullivan
Robert F. Wentworth
Officers
- - --------
Glenn O. Head
President
Nancy W. Jones
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Shareholder Information
- - -----------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data
Management Corp.
10 Woodbridge Center Drive
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart
1800 M Street, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
For more complete information about First Investors Cash Management Fund,
Inc. and/or First Investors Tax-Exempt Money Market Fund, Inc., including
fees and expenses, you may obtain a prospectus from your registered
representative or by calling 1-800-423-4026. Read it carefully before you
invest or send money.
First Investors LOGO
LOGO is described as follows: The arabic numeral one separated into seven
vertical segments followed by the words "First Investors".
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIMM403
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" in a box
to the right of a circle containing the words "MAILED FROM
ZIP CODE 11201" appears to the right of the above language in the
printed piece.
Vertically reading from bottom to top in center of the page the words
"FIRST INVESTORS" appear in the printed piece.
FIRST
INVESTORS
CASH
MANAGEMENT
FUND, INC.
FIRST
INVESTORS
TAX-EXEMPT
MONEY MARKET
FUND, INC.
ANNUAL
REPORT
DECEMBER 31, 1994
