FIRST
INVESTORS
CASH
MANAGEMENT
FUND, INC.
FIRST
INVESTORS
TAX-EXEMPT
MONEY MARKET
FUND, INC.
SEMI-
ANNUAL
REPORT
JUNE 30, 1997
Vertically reading from bottom to top in the center of the page the words
"FIRST INVESTORS" appear.
The following appears in a box to the left of the above language:
First Investors Logo (as described above)
NEED SERVICE?
If you have questions about your account...or would like information
regarding other products or services...please contact your representative
or call our Shareholder Services Department at...
(800) 423-4026
The following appears in a box within the above box:
Our business is...putting investors first
The following appears on the bottom lefthand side:
FIMM-103
Portfolio Manager's Letter
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Dear Investor:
We are pleased to present the semi-annual report for First Investors
Cash Management Fund, Inc. and First Investors Tax-Exempt Money Market
Fund, Inc. for the six months ended June 30, 1997. During this period,
the Cash Management Fund Class A shares returned 2.4% and the Class B
shares returned 2.0% or 4.9% and 4.1%, respectively, on an annualized
basis, while maintaining a $1.00 net asset value throughout the period.
For the same period, the Tax-Exempt Money Market Fund Class A shares
returned 1.5% and the Class B shares returned 1.1% or 3.0% and 2.2%,
respectively, on an annualized basis, 100% of which was free from
federal income taxes, while also maintaining a stable $1.00 net asset
value.
The first half of 1997 ended with an ideal economy: sustained, moderate
growth with little inflation. Early in the year it appeared that the
economy might have been growing too fast as gross domestic product
expanded at a 4.9% annual rate during the first quarter. Concerned by
the economy's strength, the Federal Reserve raised short-term interest
rates in March for the first time in over 2 years as an "insurance
policy" in case faster growth led to higher inflation. The Federal
Reserve's action subsequently appeared to be unnecessary as the economy
slowed down significantly in the second quarter and consumer inflation
in fact decelerated to an annual rate of less than 2.5%.
Although both the bond and stock markets suffered setbacks at times
during the first six months of the year, the combination of moderate
growth and low inflation ultimately provided a positive environment for
investors. The markets were also buoyed by an agreement between the
President and Congress to eliminate the Federal budget deficit over the
next five years. Lastly, the markets benefited from substantial demand
for both stocks and bonds throughout the first half of 1997.
While the stock market was rising to new heights during the first half
of 1997, investors continued to express interest in money market funds
as assets in taxable and tax free money market funds rose by 8% and 4%,
respectively. Though the Funds' returns for the first six months pale in
comparison to returns provided by most equity funds, the relatively
stable asset value nature of a money market fund remains a key
attraction to investors. In addition, diversification of assets is key
to a wise investment plan.
Money market funds continue to be among the most conservative investment
vehicles available, offering stability of principal, free check writing
privileges, easy access to account information, and a return that is
generally better than that available on most bank savings or checking
accounts. The First Investors money market funds are particularly
conservative, investing only in "first tier" securities that are
considered to present minimal risk to investors. In addition, the Funds'
weighted average maturities have been shorter than those of their peer
group average. Even though the Funds are conservatively managed, there
can be no assurance that the Funds will be able to maintain a stable net
asset value of $1.00 per share. Money market mutual funds are not
insured by the Federal Deposit Insurance Corporation and are not
guaranteed by a bank or other entity.
The outlook for the financial markets continues to be positive. The
economy is growing moderately, inflation is subdued and the Federal
Reserve is unlikely to tolerate unsustainably fast economic growth.
Demand for financial assets is likely to remain strong both here and
overseas. While the sizable recent returns in some markets are not
likely to continue, the factors which might cause a sustained downturn
are not readily apparent.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/MICHAEL J. O'KEEFE
Michael J. O'Keefe
Vice President
and Portfolio Manager
July 28, 1997
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
June 30, 1997
- --------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CORPORATE NOTES--99.1%
$1,772M Abbott Laboratories, 7/9/97 5.50% $1,769,834 $136
6,200M Air Products and Chemicals, Inc., 8/22/97 5.53 6,150,476 474
5,000M Ameritech Capital Funding Corp., 10/24/97 5.66 4,909,676 378
2,480M Anheuser Busch Companies, Inc., 7/1/97 6.15 2,480,000 191
3,000M Avnet, Inc., 7/11/97 5.60 2,995,334 231
3,350M Avnet, Inc., 8/4/97 5.60 3,332,282 257
6,000M CPC International, Inc., 7/7/97 5.60 5,994,400 462
4,000M Dow Chemical Co., 7/11/97 5.50 3,993,889 308
3,000M DuPont (E.I.) de Nemours & Co., 7/7/97 5.65 2,997,175 231
3,000M DuPont (E.I.) de Nemours & Co., 7/22/97 5.51 2,990,358 230
5,000M Engelhard Corp., 7/14/97 5.65 4,989,799 384
2,500M General Electric Capital Corp., 9/3/97 5.58 2,475,201 191
4,000M General Electric Capital Corp., 9/30/97 5.55 3,943,883 304
1,900M General Mills, Inc., 10/3/97 5.73 1,899,862 146
750M Golden Peanut Co., 9/8/97 5.57 741,993 57
3,026M Hartford Steam Boiler Insp. & Ins. Co., 7/16/97 5.58 3,018,964 233
2,500M IBM Corp., 8/22/97 5.56 2,479,922 191
1,000M Laclede Gas Co., 7/3/97 5.75 999,681 77
4,000M McGraw-Hill, Inc., 8/21/97 5.55 3,968,550 306
5,500M MetLife Funding, Inc., 8/8/97 5.55 5,467,779 421
5,000M MidAmerica Energy Holdings Co., 8/26/97 5.57 4,956,678 382
4,300M Nalco Chemical Co., 7/18/97 5.64 4,288,548 330
2,000M National Rural Utilities Coop. Fin. Corp., 8/25/97 5.55 1,983,042 153
4,000M National Rural Utilities Coop. Fin. Corp., 9/25/97 5.54 3,947,062 304
5,500M New York Times Co., 7/1/97 6.25 5,500,000 424
4,000M NYNEX Corp., 7/21/97 5.55 3,987,667 307
3,000M Paccar Financial Corp., 8/25/97 5.57 2,974,470 229
6,000M Prudential Funding Corp., 8/20/97 5.56 5,953,666 459
1,250M RTZ America, Inc., 9/4/97 5.60 1,237,361 95
3,400M Sherwin Williams Co., 8/21/97 5.57 3,373,171 260
6,000M Southern California Edison Co., 7/25/97 5.52 5,977,920 461
6,000M The Stanley Works, 8/6/97 5.61 5,966,340 460
5,000M Union Electric Co., 7/30/97 5.55 4,977,645 383
4,000M Winn-Dixie Stores, Inc., 7/15/97 5.65 3,991,211 307
2,000M Winn-Dixie Stores, Inc., 10/7/97 5.55 1,969,783 152
- --------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $128,683,622) 128,683,622 9,914
- --------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--1.0%
1,000M Federal Home Loan Mortgage Corp., 5/18/98 5.84 994,925 77
250M Federal National Mortgage Association, 7/10/97 5.89 250,176 19
- --------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agencies
(cost $1,245,101) 1,245,101 96
- --------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $129,928,723)+ 100.1% 129,928,723 10,010
Excess of Liabilities Over Other Assets (.1) (126,624) (10)
- --------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $129,802,099 $10,000
==============================================================================================================
* The interest rates shown are the effective rates at the time of purchase by the Fund.
+ Aggregate cost for federal income tax purposes is the same.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
June 30, 1997
- ------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL NOTES AND VARIABLE RATE SECURITIES--106.6%
Alabama--4.3%
$ 900M City of Birmingham Wts., Series A, VR, 4.15%
(LOC; Regions Bank) $ 900,000 $ 429
- ------------------------------------------------------------------------------------------------------------------
California--2.4%
500M L.A. County Tax & Rev. Antic. Notes, 3.85%, 6/30/98 503,120 240
- ------------------------------------------------------------------------------------------------------------------
Colorado--.1%
20M Clear Creek County Rev. Antic. Wts., VR, 4.2%
(LOC; National Westminster Bank) 20,000 10
- ------------------------------------------------------------------------------------------------------------------
District of Columbia--4.8%
1,000M District of Columbia, University Rev. Bonds, VR, 4.2%
(American University)(LOC; National Westminister Bank) 1,000,000 477
- ------------------------------------------------------------------------------------------------------------------
Florida--2.4%
500M Jacksonville Health Facs. Auth. Rev. Bonds, VR, 4.25%
(LOC; NationsBank) 500,000 239
- ------------------------------------------------------------------------------------------------------------------
Georgia--4.8%
1,000M Burke County Dev. Auth. Poll. Control Rev. Bonds, VR, 5.45%
(Georgia Power Co.) 1,000,000 477
- ------------------------------------------------------------------------------------------------------------------
Illinois--4.8%
1,000M Illinois Ed. Facs. Auth. Rev. Bonds, VR, 4.15%
(LOC; Northern Trust) 1,000,000 477
- ------------------------------------------------------------------------------------------------------------------
Louisiana--8.1%
700M De Soto Parish Poll. Control Rev. Bonds, VR, 4.15%
(Central LA Electric)(LOC; Swiss Bank) 700,000 334
1,000M Jefferson Parish Hosp. Svc. Rev. Bonds, VR, 4.15%
(FGIC Insured)(SPA; FGIC Securities) 1,000,000 477
- ------------------------------------------------------------------------------------------------------------------
1,700,000 811
- ------------------------------------------------------------------------------------------------------------------
Maine--2.4%
500M Maine Health & Higher Ed. Fac. Auth. Rev. Bonds, VR, 4.2%
(AMBAC Insured)(SPA; First National Bank, Chicago) 500,000 239
- ------------------------------------------------------------------------------------------------------------------
Maryland--6.0%
1,000M Baltimore County, Poll. Control Rev. Bonds, CP, 3.5%, 7/2/97
(Baltimore Gas & Electric Co.) 1,000,000 477
250M State of Maryland Dept. of Trans. Rev. Bonds, 4.0%, 7/1/97 250,000 119
- ------------------------------------------------------------------------------------------------------------------
1,250,000 596
- ------------------------------------------------------------------------------------------------------------------
Massachusetts--.9%
200M Massachusetts State Health Facs. Auth. Rev. Bonds, VR, 3.9%
(MBIA Insured)(SPA; Credit Suisse) 200,000 95
- ------------------------------------------------------------------------------------------------------------------
Michigan--7.2%
500M Detroit Michigan City School Dist. School Aid Notes, 3.9%, 5/1/98 502,420 240
1,000M State of Michigan General Obligation Notes, 3.45%, 9/30/97 1,002,542 478
- ------------------------------------------------------------------------------------------------------------------
1,504,962 718
- ------------------------------------------------------------------------------------------------------------------
Missouri--4.8%
1,010M Missouri State Env. Imp. & Energy Res. Auth. Poll. Control Rev. Bonds,
VR, 4.2%, (National Rural Utilities Coop. Fin. Corp.) 1,010,000 482
- ------------------------------------------------------------------------------------------------------------------
New Jersey--1.2%
250M City of Bayonne Bond Antic. Notes, 3.63%, 9/12/97 250,134 119
- ------------------------------------------------------------------------------------------------------------------
New York--1.9%
400M New York City General Obligation Bonds, VR, 5.5%
(LOC; Morgan Guaranty Trust Co.) 400,000 191
- ------------------------------------------------------------------------------------------------------------------
North Carolina--4.1%
850M State of North Carolina General Obligation Bonds, 3.49%, 8/1/97 850,000 406
- ------------------------------------------------------------------------------------------------------------------
Ohio--5.2%
1,100M Scioto County, Hosp. Facs. Rev. Bonds, VR, 4.15%
(AMBAC Insured)(SPA; First National Bank, Chicago) 1,100,000 525
- ------------------------------------------------------------------------------------------------------------------
Oregon--2.4%
500M Klamath Falls, Elec. Rev. Bonds, 4.0%, 5/1/98
(Escrowed to put in U.S. Treasury Securities) 502,009 239
- ------------------------------------------------------------------------------------------------------------------
Pennsylvania--4.8%
1,000M York County General Auth. Pooled Fin. Rev. Bonds, VR, 4.15%
(LOC; First Union National Bank) 1,000,000 477
- ------------------------------------------------------------------------------------------------------------------
Puerto Rico--3.3%
200M Commonwealth of Puerto Rico Tax & Rev. Antic. Notes, 3.43%, 7/30/97 200,089 95
500M Government Development Bank of Puerto Rico, CP, 3.8%, 8/11/97 500,000 239
- ------------------------------------------------------------------------------------------------------------------
700,089 334
- ------------------------------------------------------------------------------------------------------------------
South Carolina--6.7%
1,000M Charleston County, Hosp. Facs. Rev. Bonds, VR, 4.35%
(Brown Schools)(LOC; Bankers Trust) 1,000,000 477
400M South Carolina Ed. Facs. Rev. Bonds, VR, 4.2%
(Presbyterian Coll. Proj.)(LOC; Wachovia Bank) 400,000 191
- ------------------------------------------------------------------------------------------------------------------
1,400,000 668
- ------------------------------------------------------------------------------------------------------------------
Texas--7.6%
500M Capital Industrial Dev. Corp., Ind. Dev. Rev. Bonds, VR, 4.2%
(LOC; Wachovia Bank) 500,000 239
1,000M State of Texas Tax & Rev. Antic. Notes, 3.7%, 8/29/97 1,001,361 478
100M Texas State General Obligation Bonds, 3.5%, 12/1/97 100,298 47
- ------------------------------------------------------------------------------------------------------------------
1,601,659 764
- ------------------------------------------------------------------------------------------------------------------
Virginia--2.4%
500M Lynchburg Indl. Dev. Auth. Hosp. Fac. Rev. Bonds, VR, 4.2%
(AMBAC Insured)(SPA; Mellon Bank) 500,000 239
- ------------------------------------------------------------------------------------------------------------------
Washington--12.2%
800M Port of Kalama, Washington Pub. Corp. Rev. Bonds, VR, 4.05%
(Conagra Inc. Proj.)(LOC; Morgan Guaranty Trust Co.) 800,000 382
250M Washington State General Obligation Bonds, 3.64%, 8/1/97 250,055 119
600M Washington St. Hsg. Fin. Comm. Hsg. Rev. Bonds, VR, 4.35%
(LOC; U.S. Bank Washington) 600,000 286
900M Washington St. Hsg. Fin. Comm. Hsg. Rev. Bonds, VR, 5.6%
(LOC; Keybank) 900,000 429
- ------------------------------------------------------------------------------------------------------------------
2,550,055 1,216
- ------------------------------------------------------------------------------------------------------------------
West Virginia--.9%
200M West Virginia Hosp. Fin. Auth. Hosp. Rev. Bonds, VR, 4.2%
(St. Joseph's Hosp.)(LOC; Bank One) 200,000 95
- ------------------------------------------------------------------------------------------------------------------
Wisconsin--.9%
200M Wisconsin State Operating Notes, 3.85%, 6/15/98 201,198 96
- ------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $22,343,226)+ 106.6% 22,343,226 10,659
Excess of Liabilities Over Other Assets (6.6) (1,381,542) (659)
- ------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $20,961,684 $10,000
==================================================================================================================
The interest rate shown for municipal notes and bonds are the effective rates at the time of
purchase by the Fund. Interest rates on variable rate securities are adjusted periodically;
the rates shown are the rates that were in effect at June 30, 1997. 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:
CP Municipal Commercial Paper
LOC Letter of Credit
SPA Security Purchase Agreement
VR Variable Rate Notes
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
June 30, 1997
- -----------------------------------------------------------------------------------------------
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 $129,928,723 $22,343,226
============= =============
At value $129,928,723 $22,343,226
Cash (overdraft) 554,170 (213,583)
Interest receivable 48,642 157,474
Other assets 24,200 4,891
------------- -------------
Total Assets 130,555,735 22,292,008
------------- -------------
Liabilities
Payables:
Investment securities purchased -- 1,206,738
Dividend disbursing agent 520,367 75,825
Capital shares redeemed 99,524 27,261
Accrued expenses 79,962 11,626
Accrued advisory fee 53,783 8,874
------------- -------------
Total Liabilities 753,636 1,330,324
------------- -------------
Net Assets $129,802,099 $20,961,684
============= =============
Capital shares outstanding (Note 2):
Class A 129,523,641 20,881,146
Class B 278,458 80,538
Net asset value, offering price and redemption price per share--
Class A and Class B (Note 2)
(Net assets divided by shares outstanding) $1.00 $1.00
======= =======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Six Months Ended June 30, 1997
- -----------------------------------------------------------------------------------------------
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Interest income $3,661,096 $406,347
----------- -----------
Expenses (Notes 1 and 3):
Advisory fee 331,455 56,052
Shareholder servicing costs 375,966 41,335
Custodian fees 37,427 7,895
Reports and notices to shareholders 19,376 2,391
Professional fees 16,839 12,340
Other expenses 24,162 5,820
----------- -----------
Total expenses 805,225 125,833
Less: Expenses waived or assumed (321,947) (46,803)
Custodian fees paid indirectly -- (220)
----------- -----------
Net expenses 483,278 78,810
----------- -----------
Net investment income 3,177,818 327,537
Net realized loss on investments (107) --
----------- -----------
Net Increase in Net Assets Resulting from Operations $3,177,711 $327,537
=========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
First Investors First Investors
Cash Management Tax-Exempt Money
Fund, Inc. Market Fund, Inc.
----------------------------------- ---------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1997 December 31, 1996 June 30, 1997 December 31, 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $3,177,818 $5,984,942 $327,537 $690,980
Net realized gain (loss) on investment (107) 4,327 -- --
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations and declared as
distributions to shareholders
(Note 1C) $3,177,711 $5,989,269 $327,537 $690,980
============ ============ ============ ============
Capital Share Transactions (Note 2)
Class A:
Proceeds from shares sold $114,922,737 $266,249,897 $16,793,085 $29,038,289
Value of distributions reinvested 2,590,126 5,804,016 265,828 681,810
Cost of shares redeemed (121,789,974) (266,887,931) (19,065,380) (31,877,037)
------------- ------------- ------------- -------------
(4,277,111) 5,165,982 (2,006,467) (2,156,938)
------------- ------------- ------------- -------------
Class B:
Proceeds from shares sold 373,722 545,531 -- 99,668
Value of distributions reinvested 3,273 2,349 718 952
Cost of shares redeemed (205,481) (496,463) (11) (20,799)
------------- ------------- ------------- -------------
171,514 51,417 707 79,821
------------- ------------- ------------- -------------
Total increase (decrease) in net assets (4,105,597) 5,217,399 (2,005,760) (2,077,117)
Net Assets
Beginning of period 133,907,696 128,690,297 22,967,444 25,044,561
------------- ------------- ------------- -------------
End of period $129,802,099 $133,907,696 $20,961,684 $22,967,444
============ ============ ============ ============
See notes to financial statements
</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. The objective of each Fund is as
follows:
Cash Management Fund seeks to earn a high rate of current income
consistent with the preservation of capital and maintenance of
liquidity.
Tax-Exempt Money Market Fund seeks to earn a high rate of current income
exempt from federal income tax and is not an item of tax preference for
purposes of the federal alternative minimum tax, consistent with the
preservation of capital and maintenance of liquidity.
A. Security Valuation--The Funds value 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 amortization of discount or accretion of premium.
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 the Tax-Exempt Money Market Fund from net
investment income are considered exempt-interest dividends and as such
should not be subject to federal income taxes.
D. Use of Estimates--The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the recorded
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.
E. 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. The custodian of Tax-Exempt Money Market
Fund has provided credits in the amount of $220 against custodian
charges based on the uninvested cash balances of the Fund.
2. Capital Stock--At June 30, 1997, paid-in capital amounted to
$129,802,099 for the Cash Management Fund and $20,961,684 for the
Tax-Exempt Money Market Fund. 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.
Each Fund offers two classes of shares, Class A and B. Both classes are
sold without an initial sales charge. However, Class B shares, which may
only be acquired through an exchange of Class B shares from another
First Investors eligible fund or through the reinvestment of dividends
on Class B shares, are generally subject to a contingent deferred sales
charge at the rate of 4% in the first year and declining to 0% after the
sixth year, which is payable to FIC as underwriter of the Funds.
3. Advisory Fee and Other Transactions With Affiliates--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 the Cash Management Fund'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 .50% of each Fund's average
daily net assets. For the six months ended June 30, 1997, the investment
adviser assumed expenses of the Cash Management Fund and the Tax-Exempt
Money Market Fund of $232,365 and $35,977, respectively.
For the six months ended June 30, 1997, shareholder servicing costs of
the Cash Management Fund included transfer agent fees accrued to ADM of
$291,018 (of which $89,303 was waived) and $10,770 in IRA custodian fees
paid to FFS. The Tax-Exempt Money Market Fund's shareholder servicing
costs included transfer agent fees accrued to ADM in the amount of
$32,104 (of which $10,726 was waived).
For the six months ended June 30, 1997, FIC received contingent deferred
sales charges from the redemption of Class B shares of the Cash
Management Fund amounting to $6,580. In addition, Class B shares are
subject to 12b-1 fees which are payable monthly to FIC at the annual
rate of 1% of the Class B shares' average net assets. For the six months
ended June 30, 1997, FIC received a total of $1,138 in 12b-1 fees from
the two Funds, after waiving $379 (or .25% of the fee). Such amounts are
included in other expenses on the Statement of Operations.
<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 share of capital stock
outstanding, total return, ratios to average net assets and other supplemental data for each period indicated.
- --------------------------------------------------------------------------------
Per Share Data
----------------------------------------
Net Asset
Value Dividends
(unchanged Net from Net Total
during each Investment Investment Return
period) Income Income (%)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
- ------------------------------------------
CLASS A
- -------
1992 $1.00 $.030 $.030 3.03
1993 1.00 .025 .025 2.57
1994 1.00 .036 .036 3.69
1995 1.00 .053 .053 5.42
1996 1.00 .048 .048 4.89
1/1/97-6/30/97 1.00 .024 .024 2.42
CLASS B
- -------
1995* 1.00 .044 .044 4.46
1996 1.00 .040 .040 4.11
1/1/97-6/30/97 1.00 .020 .020 2.04
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
- --------------------------------------------------
CLASS A
- -------
1992 $1.00 $.023 $.023 2.36
1993 1.00 .018 .018 1.85
1994 1.00 .022 .022 2.24
1995 1.00 .032 .032 3.24
1996 1.00 .028 .028 2.85
1/1/97-6/30/97 1.00 .015 .015 1.48
CLASS B
- -------
1995* 1.00 .024 .024 2.40
1996 1.00 .020 .020 2.04
1/1/97-6/30/97 1.00 .011 .011 1.10
<CAPTION>
Financial Highlights (continued)
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 share of capital stock
outstanding, total return, ratios to average net assets and other supplemental data for each period indicated.
- ----------------------------------------------------------------------------------------------
Ratios / Supplemental Data
----------------------------------------------------------------------
Ratio to Average
Net Assets
Ratio to Prior to Waiver
Average Net Assets+ of Fees (Note 3)
--------------------------- -----------------------
Net Assets, Net Net
End of Investment Investment
Period Expenses Income Expenses Income
(thousands) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
- ------------------------------------------
CLASS A
- -------
1992 $150,895 .87 3.02 1.16 2.72
1993 127,178 .70 2.54 1.15 2.09
1994 128,495 .70 3.72 1.15 3.26
1995 128,635 .70 5.29 1.18 4.81
1996 133,801 .70 4.78 1.19 4.29
1/1/97-6/30/97 129,524 .73(a) 4.80(a) 1.22(a) 4.31(a)
CLASS B
- -------
1995* 56 1.45(a) 4.54(a) 1.93(a) 4.06(a)
1996 107 1.45 4.04 1.94 3.54
1/1/97-6/30/97 278 1.48(a) 4.05(a) 1.97(a) 3.56(a)
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
- --------------------------------------------------
CLASS A
- -------
1992 $25,399 .95 2.33 1.05 2.23
1993 23,857 .70 1.83 .92 1.61
1994 26,424 .70 2.24 1.02 1.92
1995 25,045 .71 3.18 1.06 2.84
1996 22,888 .71 2.81 1.08 2.44
1/1/97-6/30/97 20,881 .70(a) 2.92(a) 1.12(a) 2.50(a)
CLASS B
- -------
1995* .01 1.46(a) 2.43(a) 1.81(a) 2.09(a)
1996 80 1.46 2.06 1.83 1.69
1/1/97-6/30/97 81 1.45(a) 2.17(a) 1.87(a) 1.75(a)
+ Net of fees waived or assumed
* For the period January 12, 1995 (date Class B shares were first offered) to December 31, 1995
(a) Annualized
See notes to financial statements
</TABLE>
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 June 30, 1997, and the related statement of operations for the six
months then ended, the statement of changes in net assets for the six
months ended June 30, 1997 and the year ended December 31, 1996 and
financial highlights for each of the periods presented. 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 June 30, 1997, by correspondence
with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of First Investors Cash Management Fund, Inc. and
First Investors Tax-Exempt Money Market Fund, Inc. at June 30, 1997, 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
July 31, 1997
FIRST INVESTORS CASH MANAGEMENT FUND, INC.
FIRST INVESTORS TAX-EXEMPT MONEY MARKET FUND, INC.
Directors
- --------------------------------------------------
James J. Coy (Emeritus)
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
Nancy S. Schaenen
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- --------------------------------------------------
Glenn O. Head
President
Michael J. O'Keefe
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
Each Fund is a money market fund and seeks to maintain a stable net
asset value of $1.00 per share. However, there can be no assurance that
either Fund will be able to do so or to achieve its investment
objective. An investment in either Fund is neither insured nor
guaranteed by the U.S. Government.
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.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
It is each Fund's practice to mail only one copy of its annual and semi-
annual reports to any address at which more than one shareholder with
the same last name has indicated that mail is to be delivered.
Additional copies of the reports will be mailed if requested by any
shareholder in writing or by calling 800-423-4026. Each Fund will ensure
that separate reports are sent to any shareholder who subsequently
changes his or her mailing address.
This report is authorized for distribution only to existing
shareholders, and, if given to prospective shareholders, must be
accompanied or preceded by the Fund's prospectus.
