FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
95 WALL STREET
NEW YORK, NY 10005
FIMS-148
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seven vertical segments followed by the words "First Investors."
A MEMBER OF THE
FIRST INVESTORS FINANCIAL NETWORK
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box to the right of a circle containing the words "MAILED FROM ZIP
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printed piece.
Vertically reading from bottom to top in the center of the page the
words "FIRST INVESTORS" appear in the printed piece.
First Investors
New York Insured
Tax Free Fund, Inc.
First Investors
Multi-State Insured
Tax Free Fund
Connecticut Fund
Florida Fund
Georgia Fund
Maryland Fund
Massachusetts Fund
New Jersey Fund
North Carolina Fund
Pennsylvania Fund
Virginia Fund
ANNUAL
REPORT
DECEMBER 31, 1997
Portfolio Manager's Letter
First Investors New York Insured Tax Free Fund, Inc.
First Investors Multi-State Insured Tax Free Fund
Connecticut, Florida, Georgia, Maryland, Massachusetts,
New Jersey, North Carolina, Pennsylvania and Virginia Funds
Dear Investor:
1997 was a very good year for the U.S. economy and financial markets.
The economy grew at an annual pace of 3.8%, with the unemployment
rate falling to its lowest level since the 1970's. Despite faster
economic growth, inflation, as measured by the Consumer Price Index,
rose less than 2%, its smallest increase in over ten years.
Reflecting the strong economy, the Federal budget deficit declined
substantially and had almost been eliminated by year-end. Against
this backdrop, the Federal Reserve held monetary policy steady after
one small increase in the benchmark Federal funds rate in March.
Although both the U.S. bond and stock markets suffered setbacks at
times during the year, the combination of moderate growth and low
inflation ultimately provided a rewarding environment for investors.
Long-term bond yields fell to their lowest level in two years, while
the broad stock market indices recorded their third consecutive year
of substantial gains. While many overseas markets were buffeted by
the economic crisis in Southeast Asia, U.S. markets remained
relatively stable or -- in the case of the bond market -- benefited
from a "flight to safety" as investors sought the security of the
world's largest and most efficient financial markets.
Long-term municipal bond yields ended 1997 near their lowest level
since the mid-1970's. Most of the decline in yields occurred during
the second half of the year as the bond market benefited from low
inflation in the U.S. and instability in Southeast Asia. Low yields
spurred issuance of $220 billion of municipal bonds during 1997, the
third largest volume of supply in the market's history. This supply
kept municipal bond yields higher than they might have been
otherwise. As a result, municipal bonds ended the year somewhat cheap
relative to taxable bonds, laying the groundwork for strong
performance in 1998.
For 1997, the First Investors New York Insured Tax Free Fund and the
nine Multi-State Funds included in this report had the following
returns on a net asset value basis on Class A and Class B shares,
respectively: New York 7.8% and 7.2%, Connecticut 8.8% and 8.0%,
Florida 9.2% and 8.4%, Georgia 10.0% and 9.1%, Maryland 9.6% and
8.8%, Massachusetts 8.3% and 7.4%, New Jersey 8.4% and 7.6%, North
Carolina 9.6% and 8.7%, Pennsylvania 9.1% and 8.2%, and Virginia 9.0%
and 8.2%. According to Lipper Analytical Services, Inc., the total
returns on the Class A shares of seven of the Funds exceeded the
average return of their respective mutual fund peer group as follows:
New York .10%, Connecticut .25%, Georgia .83%, Maryland 1.04%, North
Carolina .70%, Pennsylvania .34% and Virginia .05%. The total returns
on the Class A shares of three of the Funds were below the average
return of their respective mutual fund peer group as follows: Florida
.04%, Massachusetts .37%, and New Jersey .07%.
The generally good performance of these Funds during 1997 is
attributable to two factors. First, a substantial percentage of each
of the Fund's assets was invested in noncallable bonds. Most
municipal bonds are callable which means that issuers can buy -- or
call -- bonds from investors if interest rates fall. This limits the
price appreciation of callable bonds when interest rates fall as they
did in 1997. In contrast, noncallable bonds have unlimited potential
to increase in price. Our holdings of noncallable bonds contributed
significantly to the Funds' total returns. The one exception to the
success of this strategy was the Massachusetts Fund where its
holdings of noncallable bonds failed to compensate for the Fund's
relatively short duration. Second, except for a period in the Spring,
the Funds remained substantially fully invested. This allowed the
Funds to earn the highest amount of income possible and provided the
best opportunity to benefit on a total return basis from falling
interest rates.
Investors who buy bond funds -- whether for income or total return --
should be aware that the value of their investment fluctuates as
interest rates change. For example, a 50 basis point (or .5%)
increase in yield on a twenty-year municipal bond results in roughly
a 6% decrease in that bond's price. In each of the last five years,
twenty-year municipal bond yields have fluctuated by more than 50
basis points. In addition, while the Funds' municipal bonds are
insured as to timely payment of principal and interest, the insurance
does not protect the bonds against changes in market value. Investors
should be aware of these risks and recognize that successful
investing generally requires a long-term commitment to the market.
Following 1997's strong performance, the outlook for U.S. financial
markets continues to be positive, although uncertainties do exist. In
particular, we believe that the economic problems in Southeast Asia
will slow growth in the U.S. However, it is unclear to what extent
growth will be slowed and, consequently, what the ultimate impact
will be on the financial markets. On a positive note, Southeast
Asia's problems should result in lower inflation worldwide.
Uncertainty often leads to volatile markets. During such times,
investors are generally best served by focusing on long-term
objectives and maintaining a disciplined approach to investing.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/S/Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
January 30, 1998
Cumulative Performance Information
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
Comparison of change in value of $10,000 investment in the First
Investors New York Insured Tax Free Fund, Inc. (Class A shares) and
the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
NEW YORK LEHMAN BROTHERS
INSURED MUNICIPAL
TAX FREE FUND BOND INDEX
JAN 1988 9,375 10,000
DEC 1988 10,328 11,016
DEC 1989 11,293 12,203
DEC 1990 11,966 13,093
DEC 1991 13,270 14,683
DEC 1992 14,424 15,978
DEC 1993 15,841 17,939
DEC 1994 15,044 17,012
DEC 1995 17,369 20,004
DEC 1996 17,881 20,854
DEC 1997 19,279 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 7.82% 1.07%
Five Years 5.97% 4.62%
Ten Years 7.48% 6.79%
S.E.C. 30-Day Yield 3.32%
Class B Shares
One Year 7.16% 3.16%*
Since Inception
(1/12/95) 7.64% 6.76%*
S.E.C. 30-Day Yield 2.85%
The graph compares a $10,000 investment in the First Investors New
York Insured Tax Free Fund, Inc. (Class A shares) beginning
1/1/88 with a theoretical investment in the Lehman Brothers
Municipal Bond Index. The Lehman Brothers Municipal Bond Index is
a total return performance benchmark for the long-term investment
grade tax-exempt bond market. Returns and attributes for the Index
are calculated semi-monthly using approximately 21,000 municipal
bonds which are priced by Muller Data Corp. The Index does not
take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. It is not possible
to invest directly in the Lehman Brothers Municipal Bond Index.
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 period ended 12/31/97)
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 and 12/29/89, the
maximum sales charges were 6.9% and 7.25%, respectively). 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 1.03%, 4.61% and 6.78%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been
3.27%. The Class B "S.E.C. Standardized" Average Annual Total
return for One Year and Since Inception would have been 3.12% and
6.75%, respectively, and the S.E.C. 30-Day Yield for December 1997
would have been 2.80%. 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 Municipal Bond Index figures from Lehman Brothers, Inc.
and all other figures from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- CONNECTICUT FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Connecticut Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
CONNECTICUT MUNICIPAL
FUND BOND INDEX
OCT 1990 9,375 10,000
DEC 1990 9,395 10,431
DEC 1991 10,345 11,698
DEC 1992 11,306 12,730
DEC 1993 12,900 14,292
DEC 1994 12,030 13,553
DEC 1995 14,097 15,918
DEC 1996 14,573 16,595
DEC 1997 15,851 18,120
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.77% 1.95%
Five Years 6.99% 5.63%
Since Inception
(10/8/90) 7.52% 6.57%
S.E.C. 30-Day Yield 3.94%
Class B Shares
One Year 7.95% 3.95%*
Since Inception
(1/12/95) 8.56% 7.70%*
S.E.C. 30-Day Yield 3.42%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Connecticut Fund (Class A
shares) beginning 10/8/90 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 1.57%, 5.19%
and 5.92%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.61%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.59% and 7.21%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.07%. 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 Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- FLORIDA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Florida Fund (Class
A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
FLORIDA MUNICIPAL
FUND BOND INDEX
OCT 1990 9,375 10,000
DEC 1990 9,345 10,431
DEC 1991 10,442 11,698
DEC 1992 11,526 12,730
DEC 1993 13,161 14,292
DEC 1994 12,451 13,553
DEC 1995 14,788 15,918
DEC 1996 15,282 16,595
DEC 1997 16,685 18,120
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.18% 2.38%
Five Years 7.68% 6.30%
Since Inception
(10/5/90) 8.28% 7.32%
S.E.C. 30-Day Yield 3.76%
Class B Shares
One Year 8.38% 4.38%*
Since Inception
(1/12/95) 9.27% 8.41%*
S.E.C. 30-Day Yield 3.23%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Florida Fund (Class A shares)
beginning 10/5/90 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for
the long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 2.06%, 5.77%
and 6.63%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.47%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 4.02% and 7.92%, respectively, and the S.E.C. 30-Day
Yield for December 1997 would have been 2.91%. 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 Municipal Bond Index figures
from Lehman Brothers, Inc. and all other figures from First
Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- GEORGIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Georgia Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
GEORGIA MUNICIPAL
FUND BOND INDEX
MAY 1992 9,375 10,000
DEC 1992 9,803 10,753
DEC 1993 11,289 12,073
DEC 1994 10,760 11,449
DEC 1995 12,740 13,447
DEC 1996 13,242 14,018
DEC 1997 14,565 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 10.00% 3.09%
Five Years 8.24%* 6.85%
Since Inception
(5/1/92) 8.07% 6.86%
S.E.C. 30-Day Yield 4.33%
Class B Shares
One Year 9.07% 5.07%*
Since Inception
(1/12/95) 9.48% 8.62%*
S.E.C. 30-Day Yield 3.84%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Georgia Fund (Class A shares)
beginning 5/1/92 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for
the long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 2.05%, 5.59%
and 5.38%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.34%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.99% and 7.24%, respectively, and the S.E.C. 30-Day
Yield for December 1997 would have been 2.79%. 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 Municipal Bond Index figures
from Lehman Brothers, Inc. and all other figures from First
Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- MARYLAND FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Maryland Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
MARYLAND MUNICIPAL
FUND BOND INDEX
OCT 1990 9,375 10,000
DEC 1990 9,555 10,431
DEC 1991 10,374 11,698
DEC 1992 11,346 12,730
DEC 1993 13,005 14,292
DEC 1994 12,277 13,553
DEC 1995 14,426 15,918
DEC 1996 14,905 16,595
DEC 1997 16,335 18,120
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.59% 2.73%
Five Years 7.56% 6.18%
Since Inception
(10/8/90) 7.97% 7.02%
S.E.C. 30-Day Yield 4.29%
Class B Shares
One Year 8.81% 4.81%*
Since Inception
(1/12/95) 8.99% 8.13%*
S.E.C. 30-Day Yield 3.79%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Maryland Fund (Class A shares)
beginning 10/8/90 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for the
long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller Data
Corp. The Index does not take into account fees and expenses or cost
of insurance of the bonds held by an insured tax-exempt bond fund.
It is not possible to invest directly in the Lehman Brothers
Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 1.98%, 5.34%
and 5.94%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.58%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 4.03% and 6.80%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.04%. 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 Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- MASSACHUSETTS FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Massachusetts Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
MASSACHUSETTS MUNICIPAL
FUND BOND INDEX
JAN 1988 9,375 10,000
DEC 1988 10,629 11,016
DEC 1989 11,727 12,203
DEC 1990 12,561 13,093
DEC 1991 13,986 14,683
DEC 1992 15.356 15,978
DEC 1993 17,188 17,939
DEC 1994 16,281 17,012
DEC 1995 19,060 20,004
DEC 1996 19,629 20,854
DEC 1997 21,252 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.27% 1.54%
Five Years 6.71% 5.35%
Ten Years 8.53% 7.83%
S.E.C. 30-Day Yield 3.86%
Class B Shares
One Year 7.41% 3.41%*
Since Inception
(1/12/95) 8.24% 7.37%*
S.E.C. 30-Day Yield 3.33%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Massachusetts Fund (Class A
shares) beginning 1/1/88 with a theoretical investment in the
Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal
Bond Index is a total return performance benchmark for the long-
term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 and 12/29/89,
the maximum sales charges were 6.9% and 7.25%, respectively). 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 1.20%, 5.01% and 7.20%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been
3.52%. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year and Since Inception would have been 3.05% and
7.02%, respectively, and the S.E.C. 30-Day Yield for December 1997
would have been 2.97%. 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 Municipal Bond Index figures from Lehman Brothers, Inc.
and all other figures from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- NEW JERSEY FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- New Jersey Fund (Class
A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
NEW JERSEY MUNICIPAL
FUND BOND INDEX
SEP 1988 9,375 10,000
DEC 1988 9,545 10,370
DEC 1989 10,540 11,488
DEC 1990 11,327 12,326
DEC 1991 12,608 13,823
DEC 1992 13,831 15,041
DEC 1993 15,641 16,888
DEC 1994 14,704 16,015
DEC 1995 17,131 18,810
DEC 1996 17,660 19,609
DEC 1997 19,136 21,411
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.36% 1.56%
Five Years 6.71% 5.35%
Since Inception
(9/13/88) 7.97% 7.23%
S.E.C. 30-Day Yield 3.95%
Class B Shares
One Year 7.56% 3.56%*
Since Inception
(1/12/95) 8.04% 7.17%*
S.E.C. 30-Day Yield 3.42%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- New Jersey Fund (Class A
shares) beginning 9/13/88 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 and 12/29/89,
the maximum sales charges were 6.9% and 7.25%, respectively). 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 1.40%, 5.12% and 6.79%,
respectively, and the S.E.C. 30-Day Yield for December 1997 would
have been 3.81%. The Class B "S.E.C. Standardized" Average Annual
Total Return for One Year and Since Inception would have been 3.40%
and 6.96%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.27%. 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 Municipal Bond Index figures from Lehman Brothers,
Inc. and all other figures from First Investors Management Company,
Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- NORTH CAROLINA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- North Carolina Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
NORTH CAROLINA MUNICIPAL
FUND BOND INDEX
MAY 1992 9,375 10,000
DEC 1992 9,769 10,753
DEC 1993 11,135 12,073
DEC 1994 10,417 11,449
DEC 1995 12,367 13,447
DEC 1996 12,821 14,018
DEC 1997 14,046 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.56% 2.70%
Five Years 7.53% 6.15%
Since Inception
(5/4/92) 7.38% 6.17%
S.E.C. 30-Day Yield 4.28%
Class B Shares
One Year 8.71% 4.71%*
Since Inception
(1/12/95) 9.36% 8.50%*
S.E.C. 30-Day Yield 3.79%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- North Carolina Fund (Class A
shares) beginning 5/4/92 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 1.80%, 5.03%
and 4.95%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.44%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.78% and 7.37%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 2.89%. 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 Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- PENNSYLVANIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Pennsylvania Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
PENNSYLVANIA MUNICIPAL
FUND BOND INDEX
APR 1990 9,375 10,000
DEC 1990 9,830 10,759
DEC 1991 10,861 12,066
DEC 1992 11,885 13,129
DEC 1993 13,583 14,741
DEC 1994 12,726 13,979
DEC 1995 15,054 16,418
DEC 1996 15,564 17,116
DEC 1997 16,987 18,689
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.14% 2.33%
Five Years 7.40% 6.02%
Since Inception
(4/30/90) 8.04% 7.15%
S.E.C. 30-Day Yield 3.97%
Class B Shares
One Year 8.23% 4.23%*
Since Inception
(1/12/95) 9.06% 8.20%*
S.E.C. 30-Day Yield 3.44%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Pennsylvania Fund (Class A
shares) beginning 4/30/90 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 2.07%, 5.66%
and 6.64%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.73%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.97% and 7.85%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.19%. 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 Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- VIRGINIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Virginia Fund (Class
A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
VIRGINIA MUNICIPAL
FUND BOND INDEX
APR 1990 9,375 10,000
DEC 1990 9,729 10,759
DEC 1991 10,830 12,066
DEC 1992 11,923 13,129
DEC 1993 13,466 14,741
DEC 1994 12,663 13,979
DEC 1995 14,870 16,418
DEC 1996 15,385 17,116
DEC 1997 16,774 18,689
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.03% 2.21%
Five Years 6.98% 5.68%
Since Inception
(4/30/90) 7.87% 6.97%
S.E.C. 30-Day Yield 3.80%
Class B Shares
One Year 8.19% 4.19%*
Since Inception
(1/12/95) 8.76% 7.90%*
S.E.C. 30-Day Yield 3.27%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Virginia Fund (Class A shares)
beginning 4/30/90 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for
the long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. 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 period ended
12/31/97) 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 Since Inception would have been 1.83%, 5.25%
and 6.41%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.44%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.79% and 7.45%, respectively, and the S.E.C. 30-Day
Yield for December 1997 would have been 2.89%. 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 Municipal Bond Index figures
from Lehman Brothers, Inc. and all other figures from First
Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.1%
Education--15.6%
$1,000M Monroe County Indl. Dev. Agcy. (Rochester Inst. Tech.)
7 3/4% 5/1/2000* $ 1,100,000 $ 55
New York State Dormitory Authority Revenues:
City University:
1,500M 8.2% 7/1/1998* 1,558,755 78
1,955M 5 3/4% 7/1/2013 - 2nd Gen. - A 2,167,606 109
2,000M 5 3/4% 7/1/2013 - 2nd - A 2,217,500 112
2,000M 5 3/4% 7/1/2013 - A 2,217,500 112
3,000M 6% 7/1/2020 - 2nd Gen. - A 3,423,750 172
1,000M Iona College 7 5/8% 7/1/1998* 1,038,860 52
2,800M Manhattanville College 7 1/2% 7/1/2000* 3,080,000 155
1,000M Pace University 6 1/2% 7/1/2012 1,181,250 60
State University Educational Facilities:
1,880M 7 1/4% 5/15/2000* 2,051,550 103
1,000M 5 7/8% 5/15/2011 1,108,750 56
3,500M 5 1/2% 5/15/2013 3,784,375 190
3,700M 7 3/8% 5/15/2014 4,033,000 203
2,000M 5 1/4% 5/15/2015 2,092,500 105
- -----------------------------------------------------------------------------------------------------------------
31,055,396 1,562
- -----------------------------------------------------------------------------------------------------------------
General Obligation--17.4%
1,250M Monroe County 6% 3/1/2015 1,421,875 71
Nassau County:
3,845M 6 1/2% 11/1/2004* 4,426,556 223
4,355M 5.7% 8/1/2012 4,681,625 235
1,300M 6% 7/1/2013 1,467,375 74
New York City:
1,000M 8% 6/1/1998* 1,032,140 52
3,000M 6.2% 8/1/2008 3,416,250 172
3,440M 6.95% 8/15/2012 3,981,800 200
1,000M 7 1/4% 3/15/2018 1,083,750 54
Niagara Falls Public Improvement:
1,340M 7 1/2% 3/1/2012 1,703,475 86
1,680M 7 1/2% 3/1/2015 2,179,800 110
1,600M 7 1/2% 3/1/2018 2,104,000 106
1,750M North Hempstead 6.4% 4/1/2012 2,038,750 102
Puerto Rico Commonwealth:
1,100M 6 1/4% 7/1/2013 1,288,375 65
3,390M 5.65% 7/1/2015 3,703,575 186
- -----------------------------------------------------------------------------------------------------------------
34,529,346 1,736
- -----------------------------------------------------------------------------------------------------------------
Health Care--11.8%
New York State Medical Care Facilities Agency:
3,690M Beth Israel Hospital 7 1/2% 11/1/2010 4,095,900 206
1,850M Long Term Health Care 7 3/8% 11/1/2011 1,998,000 100
Mental Health Services Facilities:
1,905M 7.7% 2/15/1998* 1,951,139 98
4,190M 7 3/4% 2/15/2000* 4,582,813 231
1,030M 7 3/8% 2/15/2014 1,098,238 55
845M 7.7% 2/15/2018 865,246 44
4,915M 6 1/2% 8/15/2024 5,504,800 277
3,000M St. Luke's Hospital 7.45% 2/15/2000* 3,262,500 164
- -----------------------------------------------------------------------------------------------------------------
23,358,636 1,175
- -----------------------------------------------------------------------------------------------------------------
Housing--6.5%
New York City Housing Development Corp.:
2,250M Insured Multi-Family (Sheridan Manor) 7.45% 10/1/2008 2,354,063 118
6,500M Insured Residential Charter 7 3/8% 4/1/2017 6,628,505 333
3,680M New York State Housing Finance Agency 6.05% 5/1/2011 3,992,800 201
- -----------------------------------------------------------------------------------------------------------------
12,975,368 652
- -----------------------------------------------------------------------------------------------------------------
Transportation--23.4%
Metropolitan Transit Authority of New York:
Commuter Facilities Series:
5,000M 6 1/8% 7/1/2004* 5,568,750 280
1,760M 5 3/4% 7/1/2021 1,883,200 95
Transit Facilities Series:
5,000M 8% 7/1/1998* 5,203,250 262
3,200M 5 1/2% 7/1/2017 3,440,000 173
1,500M 5 3/4% 7/1/2021 1,605,000 81
7,900M New York City Transit Auth. Hwy. & Brdg. Trust Fund Rev.
7 1/2% 1/1/2000* 8,571,500 431
Puerto Rico Commonwealth Highway & Transportation Authority:
3,080M 6 1/4% 7/1/2014 3,607,450 181
5,000M 6% 7/1/2018 5,750,000 289
Triborough Bridge & Tunnel Authority:
3,000M Series "O" 7.7% 1/1/1999* 3,154,020 158
6,900M Series "Y" 6% 1/1/2012 7,762,500 390
- -----------------------------------------------------------------------------------------------------------------
46,545,670 2,340
- -----------------------------------------------------------------------------------------------------------------
Utilities--9.0%
New York City Municipal Water Finance Authority:
4,975M 5 7/8% 6/15/2012 5,547,125 279
2,000M 5 7/8% 6/15/2013 2,230,000 112
2,750M 6% 6/15/2021 3,145,312 158
Suffolk County Water Authority:
2,165M 6% 6/1/2014 2,462,687 124
4,000M 6% 6/1/2017 4,560,000 229
- -----------------------------------------------------------------------------------------------------------------
17,945,124 902
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--14.4%
3,350M Guam Govt. Ltd. Obligation Infrastructure Impt.
Series "A" 5% 11/01/2017 3,341,625 168
1,000M New York State Dorm. Auth. Rev. (Suffolk County Jud. Facs.)
7 3/8% 7/1/2016 1,236,250 62
3,000M New York State Urban Development Corporation Corr. Facs.
7 1/2% 1/1/1999* 3,148,260 158
2,325M Puerto Rico Commonwealth Infrastructure Financing Authority
5% 7/1/2028 2,281,406 115
Puerto Rico Public Buildings Authority:
1,250M 6 1/4% 7/1/2013 1,456,250 73
2,035M 6 1/4% 7/1/2015 2,373,319 120
7,000M 5 1/2% 7/1/2021 7,551,250 380
7,500M 5% 7/1/2027 7,340,625 369
- -----------------------------------------------------------------------------------------------------------------
28,728,985 1,445
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $177,947,232) 98.1% 195,138,525 9,812
Other Assets, Less Liabilities 1.9 3,737,135 188
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $198,875,660 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.9%
Certificates of Participation--1.9%
Connecticut State (Middletown Courthouse Facilities):
$ 130M 6 1/4% 12/15/2009 $ 140,725 $ 74
100M 6 1/4% 12/15/2010 108,250 57
100M 6 1/4% 12/15/2012 108,250 57
- -----------------------------------------------------------------------------------------------------------------
357,225 188
- -----------------------------------------------------------------------------------------------------------------
Education--16.9%
Conn. State Health & Educational Facilities Authority Revenue:
725M Choate Rosemary Hall 6.8% 7/1/2004* 831,938 437
500M Loomis Chafee School Project-Series "B" 6% 7/1/2015 536,875 282
1,000M Trinity College 6 1/8% 7/1/2014 1,085,000 569
750M University of Connecticut 5 1/4% 4/1/2014 766,875 403
- -----------------------------------------------------------------------------------------------------------------
3,220,688 1,691
- -----------------------------------------------------------------------------------------------------------------
General Obligation--31.9%
250M Ansonia 5% 10/15/2015 250,000 131
100M Bethel 6 1/2% 2/15/2011 118,500 62
775M Bridgeport 5 1/2% 9/1/2015 812,781 427
50M Bristol 6 1/2% 6/15/2006 57,937 30
30M Colchester 7.3% 1/15/2007 36,563 19
Connecticut State:
500M 6 1/2% 3/15/2002* - Series "A" 551,250 289
700M 6% 3/15/2012 - Series "E" 792,631 416
130M Coventry 6.7% 12/15/2009 156,975 83
Griswold:
250M 5 3/4% 4/15/2010 263,750 139
100M 6 1/4% 6/15/2010 117,250 62
100M Groton City 6 3/4% 6/1/2007 118,500 62
800M New Britain 6% 3/1/2012 907,000 476
250M New Haven 5% 9/1/2017 246,875 130
130M Newton 6.7% 8/15/2010 155,513 82
30M North Canaan 6.9% 1/15/2006 34,875 18
40M Old Saybrook 6 1/2% 2/15/2009 46,950 25
250M Plainfield 6 3/8% 8/1/2011 272,500 143
290M Regional School District #5, 6.3% 3/1/2009 315,013 165
330M Southington 6.55% 4/1/2012 361,762 190
90M Stafford 6.55% 11/15/2008 106,988 56
50M Stratford 6.6% 3/1/2007 58,250 31
250M Westbrook 6.4% 3/15/2010 293,438 154
- -----------------------------------------------------------------------------------------------------------------
6,075,301 3,190
- -----------------------------------------------------------------------------------------------------------------
Health Care--21.1%
Conn. State Health & Educational Facilities Authority Revenue:
450M Bridgeport Hospital 6 1/2% 7/1/2012 493,875 260
35M Capital Asset - Series "C" 6 7/8% 1/1/2010 38,150 20
500M Lawrence & Memorial Hospital 6 3/8% 7/1/2002* 552,500 290
500M Masonicare 5% 7/1/2013 495,625 260
700M New Britain General Hospital 6 1/8% 7/1/2014 759,500 399
325M Stamford Hospital 6 1/2% 7/1/2006 353,031 185
750M Yale-New Haven Hospital 5.7% 7/1/2025* 782,812 411
500M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4% 7/1/2016 553,125 291
- -----------------------------------------------------------------------------------------------------------------
4,028,618 2,116
- -----------------------------------------------------------------------------------------------------------------
Housing--4.2%
750M Connecticut State Housing Finance Authority 6% 11/15/2010 798,750 419
- -----------------------------------------------------------------------------------------------------------------
Transportation--8.9%
Connecticut State Special Tax Oblig. Transportation Infrastructure:
200M 6 1/4% 10/1/2001* 218,250 115
285M 6% 10/1/2009 309,937 163
500M 6 1/2% 10/1/2011 598,750 314
250M 6 1/8% 9/1/2012 288,125 151
250M 6.1% 10/1/2012 271,562 143
- -----------------------------------------------------------------------------------------------------------------
1,686,624 886
- -----------------------------------------------------------------------------------------------------------------
Utilities--4.3%
South Central Conn. Regl. Water Auth. Water Sys. Rev.:
250M 5 7/8% 8/1/2002* 270,938 143
500M 6 1/8% 8/1/2014 541,250 284
- -----------------------------------------------------------------------------------------------------------------
812,188 427
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--9.7%
545M Connecticut State Dev. Auth. Govtl. Lease Rev. 6 1/2%
6/15/2008 615,850 324
Puerto Rico Public Buildings Authority:
375M 6 1/4% 7/1/2013 436,875 229
575M 6 1/4% 7/1/2015 670,594 352
125M Puerto Rico Commonwealth Infrastructure Fing. Auth. Spl. 5%
7/1/2017 124,687 65
- -----------------------------------------------------------------------------------------------------------------
1,848,006 970
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $17,092,661) 98.9% 18,827,400 9,887
Other Assets, Less Liabilities 1.1 214,637 113
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $19,042,037 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.1%
Education--.7%
$ 150M Volusia County Edl. Facs. (Stetson University Project) 6
3/8% 6/1/2001* $ 163,500 $ 66
- -----------------------------------------------------------------------------------------------------------------
General Obligation--3.8%
300M Miami 6% 12/1/2010 336,375 136
500M North Springs Improvement District 7% 10/1/2009 613,125 249
- -----------------------------------------------------------------------------------------------------------------
949,500 385
- -----------------------------------------------------------------------------------------------------------------
Health Care--9.6%
350M North Broward Hospital District 6 1/2% 1/1/2002* 385,000 156
1,000M Orange County Health Facs. Auth. (Orlando Regl. Hlthcare)
6 1/4% 10/1/2018 1,150,000 466
750M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4%
7/1/2016 829,687 336
- -----------------------------------------------------------------------------------------------------------------
2,364,687 958
- -----------------------------------------------------------------------------------------------------------------
Housing--1.4%
155M Dade County Hsg. Fin. Auth. Single-Family Mtge. 6.95%
12/15/2012 167,013 68
175M Florida Housing Finance Agency-Residential Mtge.
(Series 2) 8% 12/15/2016 180,073 73
- -----------------------------------------------------------------------------------------------------------------
347,086 141
- -----------------------------------------------------------------------------------------------------------------
Transportation--6.7%
500M Dade County Aviation Revenue Series "A" 6% 10/1/2010 550,625 223
300M Florida State Turnpike Authority Turnpike Revenue 6.35%
7/1/2002* 328,500 133
250M Pensacola Airport Revenue 5.6% 10/1/2017 262,500 106
455M Port Palm Beach District Revenue 6 1/4% 9/1/2008 502,775 204
- -----------------------------------------------------------------------------------------------------------------
1,644,400 666
- -----------------------------------------------------------------------------------------------------------------
Utilities--48.8%
750M Charlotte County Utilities Revenue 6 3/4% 10/1/2003* 858,750 348
1,000M Cocoa Water & Sewer Revenue 5 3/4% 10/1/2017 1,068,750 433
Escambia County Utilities Authority Util. Sys. Rev.:
500M 6 1/4% 1/1/2013 581,250 235
1,000M 6 1/4% 1/1/2015 1,166,250 472
690M Jacksonville Beach Utility Revenue 6 3/4% 10/1/2001* 764,175 310
300M Kissimmee Utility Authority Electric System Revenue 6 1/2%
10/1/2001* 330,000 134
1,495M Lakeland Electric & Water Revenue 6% 10/1/2014 1,700,563 689
395M Miramar Utilities Improvement Revenue 6.4% 10/1/2007 446,350 181
1,000M Plant City Utility System Revenue 6% 10/1/2015 1,142,500 463
300M Reedy Creek Improvement District Utilities Revenue 6 1/2%
10/1/2001* 327,375 133
500M Sarasota County Utility System Revenue 6 1/2% 10/1/2004* 572,500 232
Seminole County Water & Sewer Revenue:
500M 6% 10/1/2009 568,750 230
500M 6% 10/1/2019 573,750 233
1,000M St. Johns County Water & Sewer Revenue 5 1/2% 6/1/2011 1,083,750 439
750M West Melbourne Water & Sewer Revenue 6 3/4% 10/1/2014 862,500 350
- -----------------------------------------------------------------------------------------------------------------
12,047,213 4,882
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--27.1%
400M Florida State Div. Bd. Fin. Dept. General Services 6 3/4%
7/1/2001* 441,000 179
500M Fort Meyers Improvement Revenue 5% 12/1/2017 500,625 203
1,000M Indian Trace Community Dev. District 5 3/4% 5/1/2011 1,081,250 438
1,000M Jacksonville Capital Improvement (Gator Bowl Project) 5
7/8% 10/1/2015 1,071,250 434
350M Jacksonville Excise Taxes Revenue 6 1/2% 10/1/2013 390,250 158
600M Orange County Tourist Development Tax Revenue 5.9% 10/1/2010 674,250 273
1,000M Palm Beach County Criminal Justice Facilities Revenue 5 3/8%
6/1/20 111,090,000 442
300M St. Lucie County Sales Tax Revenue 6 1/2% 10/1/2002* 334,125 136
1,000M Tampa Sales Tax Revenue 5 3/4% 10/1/2020 1,101,250 446
- -----------------------------------------------------------------------------------------------------------------
6,684,000 2,709
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $21,613,647) 98.1% 24,200,386 9,807
Other Assets, Less Liabilities 1.9 476,353 193
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,676,739 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.6%
Education--5.4%
Private Colleges & Universities Facilities Authority:
$ 80M Mercer University Project 6.35% 11/1/2006 $ 91,500 $ 273
80M Spelman University Project 6% 6/1/2009 88,000 262
- -----------------------------------------------------------------------------------------------------------------
179,500 535
- -----------------------------------------------------------------------------------------------------------------
General Obligation--25.3%
75M Columbia County School District 6 1/4% 4/1/2013 82,969 248
100M Hall County School District 6.7% 12/1/2014 115,750 345
100M Mitchell County School District 6 1/2% 3/1/2009 113,875 340
125M Paulding County School District 6% 2/1/2013 141,563 422
100M Peach County School District 6.4% 2/1/2019 110,875 331
150M Pike County School District 5.7% 2/1/2016 166,500 496
100M Puerto Rico Commonwealth 6 1/4% 7/1/2012 115,750 345
- -----------------------------------------------------------------------------------------------------------------
847,282 2,527
- -----------------------------------------------------------------------------------------------------------------
Health Care--4.1%
125M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4%
7/1/2016 138,281 412
- -----------------------------------------------------------------------------------------------------------------
Housing--4.8%
150M Georgia State Housing & Finance Authority Revenue 5.7%
12/1/2011 160,500 478
- -----------------------------------------------------------------------------------------------------------------
Transportation--13.8%
300M Metropolitan Atlanta Rapid Transit Authority 6 1/4% 7/1/2011 345,375 1,030
100M Puerto Rico Commonwealth Hwy. & Transn. Auth. 6 1/4%
7/1/2014 117,125 349
- -----------------------------------------------------------------------------------------------------------------
462,500 1,379
- -----------------------------------------------------------------------------------------------------------------
Utilities--32.8%
25M Bartow County Water & Sewer Revenue 6.05% 9/1/2007 27,219 81
95M Brunswick Water & Sewer Revenue 6.1% 10/1/2019 109,131 325
85M Conyers Water & Sewer Revenue 6.45% 7/1/2010 94,881 283
80M Cordele Combined Public Utilities Revenue 6.4% 11/1/2014 89,900 268
250M Fulton County Water & Sewer Revenue 6 3/8% 1/1/2014 294,375 878
Georgia Municipal Gas Authority Revenue:
80M 6.8% 11/1/2009 92,100 275
100M 5.8% 1/1/2015 107,500 320
150M Milledgeville Water & Sewer Revenue 6% 12/1/2021 171,750 512
100M St. Marys Water & Sewer Revenue 6 1/8% 7/1/2018 114,000 340
- -----------------------------------------------------------------------------------------------------------------
1,100,856 3,282
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.4%
80M Appling County Dev. Auth. Poll. Ctl. Rev. 7.1% 1/1/2014 91,400 272
80M Downtown Smyrna Development Authority Revenue 6.7% 2/1/2020 92,500 276
50M East Point Building Authority Revenue 6% 2/1/2011 54,250 162
125M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2013 145,625 434
- -----------------------------------------------------------------------------------------------------------------
383,775 1,144
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $2,933,044) 97.6% 3,272,694 9,757
Other Assets, Less Liabilities 2.4 81,589 243
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,354,283 $10,000
=================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.0%
Certificates of Participation--.3%
$ 30M Baltimore Series "B" 7 1/4% 4/1/2016 $ 32,325 $ 26
- -----------------------------------------------------------------------------------------------------------------
Education--7.7%
Morgan State University Academic & Aux. Facs. Fees Revenue:
90M 7% 7/1/2000* 97,987 79
500M 6.05% 7/1/2015 570,625 457
200M 6.1% 7/1/2020 232,500 186
50M University of Maryland Sys. Aux. Fac. & Tuition Rev. 6.3%
2/1/2001* 54,125 43
- -----------------------------------------------------------------------------------------------------------------
955,237 765
- -----------------------------------------------------------------------------------------------------------------
General Obligation--28.7%
350M Anne Arundel County Water & Sewer 6.3% 8/1/2015 390,688 312
Baltimore, Maryland:
100M 6.3% 10/15/2004 112,250 90
100M 7% 10/15/2009 122,000 98
250M 5 5/8% 10/15/2012 269,375 215
100M 5 5/8% 10/15/2013 107,250 86
55M Carroll County 6 1/4% 11/1/2001* 60,088 48
100M Chesapeake Beach 6 1/2% 5/1/2012 106,875 86
Frederick:
100M 6 1/8% 12/1/2008 109,375 88
200M 6 1/8% 10/1/2014 218,500 175
60M Frederick County 6 5/8% 8/1/2003* 67,950 54
Puerto Rico Commonwealth:
105M 6.6% 7/1/2002* 116,944 94
650M 6 1/4% 7/1/2012 752,375 603
250M 5.65% 7/1/2015 273,125 219
500M Queen Annes County 5.6% 11/15/2015 531,250 425
325M Washington County 5.8% 1/1/2013 349,781 280
- -----------------------------------------------------------------------------------------------------------------
3,587,826 2,873
- -----------------------------------------------------------------------------------------------------------------
Health Care--20.4%
500M Calvert County Maryland Economic Development Authority
5% 12/1/2017 492,500 395
250M Maryland State Indl. Dev. Fing. Auth. (Holy Cross Health System)
5.7% 12/1/2010 272,813 219
Maryland State Health & Higher Education Facilities Authority:
90M Francis Scott Key Medical Center 6 3/4% 7/1/2000* 97,425 78
500M Maryland General Hospital 6 1/8% 7/1/2014 546,250 437
20M Memorial Hospital 7% 7/1/2007 21,275 17
140M Sinai Hospital of Baltimore 7% 7/1/2000* 152,425 122
110M Suburban Hospital 6% 7/1/2002* 117,975 94
65M University of Maryland Medical System 7% 7/1/2001* 72,231 58
325M Puerto Rico Indl. Tourist Edl. Med. and Env. Ctl. Facs. 6 1/4% 7/1/2016 359,531 288
350M Takoma Park Hospital Facilities (Adventist Hosp.) 6 1/2% 9/1/2012 411,250 329
- -----------------------------------------------------------------------------------------------------------------
2,543,675 2,037
- -----------------------------------------------------------------------------------------------------------------
Housing--13.9%
250M Baltimore County Mortgage Revenue (Old Orchard Apts.) 7% 7/1/2016 273,438 219
Maryland State Community Dev. Admin. Dept. Hsg. & Cmnty. Dev.:
45M 7% 6/1/2011 49,106 39
345M 7% 4/1/2014 376,050 301
600M 5 7/8% 7/1/2016 636,000 510
200M 5.6% 3/1/2017 207,500 166
180M Montgomery County Single Family Mortgage Revenue 6 1/2% 7/1/2011 195,300 156
- -----------------------------------------------------------------------------------------------------------------
1,737,394 1,391
- -----------------------------------------------------------------------------------------------------------------
Transportation--7.4%
Maryland State Department of Transportation:
60M 6 3/8% 9/1/2006 64,200 51
500M 6.79% 7/1/2012** 249,375 200
525M Puerto Rico Highway & Transportation Authority 6 1/4% 7/1/2014 614,906 493
- -----------------------------------------------------------------------------------------------------------------
928,481 744
- -----------------------------------------------------------------------------------------------------------------
Utilities--9.5%
250M Baltimore Revenue Water Project 5.8% 7/1/2015 $ 269,062 $ 216
Baltimore Wastewater Utilities Revenue:
165M 6 1/2% 7/1/2000* 174,694 140
215M 6 1/4% 7/1/2002* 236,500 189
200M 6% 7/1/2015 227,250 182
275M Puerto Rico Electric Power Authority 5 1/4% 7/1/2015 282,563 226
- -----------------------------------------------------------------------------------------------------------------
1,190,069 953
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--10.1%
250M Baltimore Convention Center 6.1% 9/1/2013 268,437 215
35M Maryland Industrial Financing Authority 7% 7/1/2010 38,719 31
250M Maryland State Stadium Authority 5 7/8% 12/15/2013 268,750 215
100M Montgomery County Parking Revenue (Bethesda Parking Lot)
6 1/4% 6/1/2009 109,000 87
500M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2015 583,125 467
- -----------------------------------------------------------------------------------------------------------------
1,268,031 1,015
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $11,187,064) 98.0% 12,243,038 9,804
Other Assets, Less Liabilities 2.0 244,466 196
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $12,487,504 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of discount
on date purchased.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--101.1%
Education--12.6%
Massachusetts Health & Education Facilities Authority:
$ 250M Berklee College of Music 5% 10/1/2016 $ 248,750 $ 105
425M Northeastern University 7 1/8% 10/1/2000* 466,437 197
1,000M Massachusetts State Indl. Fin. Agy. (Suffolk University)
5 1/4% 7/1/2017 1,011,250 428
1,000M University of Massachusetts Building Authority Revenue 6 7/8% 5/1/2014 1,258,750 533
- -----------------------------------------------------------------------------------------------------------------
2,985,187 1,263
- -----------------------------------------------------------------------------------------------------------------
General Obligation--20.5%
Boston:
250M 7 3/8% 2/1/2000* 270,938 114
750M 5 7/8% 8/1/2012 800,625 339
Massachusetts General Obligations:
300M 7% 7/1/2009 367,602 156
1,000M 6% 8/1/2010 1,135,530 480
1,100M New Bedford 5 5/8% 10/1/2016 1,155,000 489
150M North Borough 7.2% 11/1/2003 156,536 66
150M Rockport Unlimited Tax School Project Loan 6.9% 12/15/1999* 162,375 69
Wareham:
225M 7.05% 1/15/2001* 250,031 106
500M 7.1% 1/15/2001* 556,250 235
- -----------------------------------------------------------------------------------------------------------------
4,854,887 2,054
- -----------------------------------------------------------------------------------------------------------------
Health Care--30.9%
Massachusetts Health & Educational Facilities Authority:
Capital Asset Program:
225M 7.35% 8/1/2008 241,875 102
400M 7.2% 7/1/2009 428,000 181
500M Carney Hospital 7 3/4% 7/1/2000* 553,125 234
1,000M Hallmark Health System 5% 7/1/2017 978,750 414
750M Massachusetts General Hospital 6 1/4% 7/1/2012 847,500 359
570M Milton Hospital 7% 7/1/2016 620,588 263
1,500M Mt. Auburn Hospital 6 1/4% 8/15/2014 1,657,500 701
1,000M Partners Healthcare System 5 1/4% 7/1/2016 1,006,250 426
400M South Shore Hospital 7 1/2% 7/1/2000* 440,000 186
490M University Hospital 7 1/4% 7/1/2019 534,712 226
- -----------------------------------------------------------------------------------------------------------------
7,308,300 3,092
- -----------------------------------------------------------------------------------------------------------------
Housing--5.2%
Massachusetts Housing Finance Agency:
1,000M 6% 12/1/2012 1,070,000 453
140M 7.7% 12/1/2017 146,825 62
- -----------------------------------------------------------------------------------------------------------------
1,216,825 515
- -----------------------------------------------------------------------------------------------------------------
Transportation--10.3%
Massachusetts Bay Transportation Authority:
690M Series "A" 7.65% 8/1/2000* 763,312 323
1,500M Series "A" 5.8% 3/1/2013 1,665,225 705
- -----------------------------------------------------------------------------------------------------------------
2,428,537 1,028
- -----------------------------------------------------------------------------------------------------------------
Utilities--21.6%
Boston Water & Sewer Commission:
850M 7% 11/1/2001* 950,938 402
100M 7 1/4% 11/1/2006 102,815 44
1,035M 5 3/4% 11/1/2013 1,147,556 486
475M Lynn Water & Sewer Commission 7 1/4% 12/1/2000* 525,469 222
1,250M Massachusetts State Water Resource Authority 5% 3/1/2022 1,215,625 514
1,000M South Essex Sewer District 6 3/4% 6/1/2004* 1,151,250 487
- -----------------------------------------------------------------------------------------------------------------
5,093,653 2,155
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $21,585,655) 23,887,389 10,107
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.8%
200M Puerto Rico Commonwealth Government Development Bank
Adjustable Rate Note 3.35% (cost $200,000)** 200,000 84
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $21,785,655) 101.9% 24,087,389 10,191
Excess of Liabilities Over Other Assets (1.9) (452,044) (191)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $23,635,345 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer. Interest rate shown
is the rate in effect at December 31, 1997.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--100.1%
Certificates of Participation--2.7%
$1,000M Hudson County Correctional Facility 7 1/4% 12/1/2000* $ 1,106,250 $ 181
500M Mantua Township School District 7 1/4% 6/30/2000* 547,500 89
- -----------------------------------------------------------------------------------------------------------------
1,653,750 270
- -----------------------------------------------------------------------------------------------------------------
Education--2.3%
1,300M New Jersey Edl. Facs. Fing. Auth. (Seton Hall Univ.) 6 1/4%
7/1/2010 1,404,000 229
- -----------------------------------------------------------------------------------------------------------------
General Obligation--19.0%
1,750M Atlantic City Board of Education 6.1% 12/1/2015 2,005,938 327
Essex County Improvement Authority:
1,500M County College Project 6.9% 12/1/2004* 1,758,750 287
Orange School District:
1,025M Series "A" 6.95% 7/1/2014 1,192,844 195
1,220M Series "B" 6.95% 7/1/2014 1,418,250 232
1,000M New Jersey State Various Purposes 6% 2/15/2011 1,132,390 185
1,550M Puerto Rico Commonwealth 6 1/4% 7/1/2013 1,815,437 296
Union City:
1,000M 6.7% 9/1/2002* 1,121,250 183
995M 6.4% 11/1/2013 1,161,663 190
- -----------------------------------------------------------------------------------------------------------------
11,606,522 1,895
- -----------------------------------------------------------------------------------------------------------------
Health Care--25.9%
New Jersey Health Care Facilities Financing Authority:
1,000M AHS Hospital Corp. 5% 7/1/2016 988,750 162
1,250M Bayonne Hospital 6 1/4% 7/1/2012 1,379,687 225
400M Community Medical Center 7% 7/1/2009 424,500 69
1,745M General Hospital Center at Passaic 6% 7/1/2014 1,882,419 308
750M Holy Name Hospital 7% 7/1/2000* 816,562 133
1,100M Hunterdon Hospital 7% 7/1/2020 1,183,875 193
1,750M Monmouth Medical Center 6 1/4% 7/1/2016 1,911,875 312
1,500M Ocean County Medical Center 6.9% 7/1/2007 1,666,875 272
3,120M Riverview Medical Center 6 1/4% 7/1/2011 3,638,700 594
825M St. Barnabas Medical Center 7 1/4% 7/1/2018 876,562 143
1,000M St. Peter's Medical Center Series "E" 6 7/8% 7/1/2001* 1,106,250 181
- -----------------------------------------------------------------------------------------------------------------
15,876,055 2,592
- -----------------------------------------------------------------------------------------------------------------
Housing--4.5%
New Jersey State Housing & Mortgage Financing Agency:
380M Series "A" 7 1/2% 4/1/2015 400,425 65
420M Series "E" 7.65% 10/1/2016 445,200 73
1,385M Series "C" 7 3/8% 10/1/2017 1,464,637 239
450M Series "B" 8.1% 10/1/2017 465,431 76
- -----------------------------------------------------------------------------------------------------------------
2,775,693 453
- -----------------------------------------------------------------------------------------------------------------
Transportation--3.4%
900M Delaware River Port Authority 7 3/8% 1/1/2007 947,196 155
1,000M New Jersey State Highway Authority (Garden State Parkway)
6.2% 1/1/2010 1,138,750 186
- -----------------------------------------------------------------------------------------------------------------
2,085,946 341
- -----------------------------------------------------------------------------------------------------------------
Utilities--13.7%
1,000M Bergen County Util. Auth. Water Pollution Ctl. 6 1/2% 6/15/2002* 1,108,750 181
1,000M Evesham Municipal Utilities Authority 7% 7/1/2000* 1,070,000 175
500M Lower Township Municipal Utilities Authority 7% 12/1/2000* 549,375 90
New Jersey Wastewater Treatment Trust:
1,435M 6 1/4% 4/1/2010 1,583,881 259
1,310M 7% 7/1/2011 1,629,312 266
1,140M Passaic Valley Water Commission 6.4% 12/15/2002* 1,269,675 207
1,000M Puerto Rico Commonwealth Aqueduct & Sewer Authority 6 1/4% 7/1/2013 1,171,250 191
- -----------------------------------------------------------------------------------------------------------------
8,382,243 1,369
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--28.6%
2,900M Atlantic County Impt. Auth. Lux. Tax. (Convention Center) 7.4% 7/1/2016 3,712,000 606
350M Cape May County Indl. Pollution Control Fin. Auth. 6.8% 3/1/2021 439,688 72
1,250M Casino Reinvestment Dev. Auth. Pkg. Fee Rev. 5 1/4% 10/1/2013 1,265,625 206
1,500M Essex County Improvement Authority Revenue 5 3/4% 7/1/2027 1,576,875 257
New Jersey Economic Development Authority:
Educational Testing Service:
1,000M 5.9% 5/15/2015 1,078,750 176
2,000M 6 1/8% 5/15/2015 2,197,500 359
2,185M Market Transition Facility 5 7/8% 7/1/2011 2,357,069 385
1,775M N.J. Performing Arts Center 6% 6/15/2012 2,025,719 330
Puerto Rico Public Buildings Authority:
1,250M Series "A" 6 1/4% 7/1/2013 1,456,250 238
1,195M Series "A" 6 1/4% 7/1/2014 1,393,669 228
- -----------------------------------------------------------------------------------------------------------------
17,503,145 2,857
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $55,271,895) 100.1% 61,287,354 10,006
Excess of Liabilities Over Other Assets (.1) (33,866) (6)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $61,253,488 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.4%
Certificates of Participation--7.2%
$100M Charlotte Convention Facilities Project 6 3/4% 12/1/2001* $ 111,125 $ 161
100M Cumberland County Civic Center Project 6.3% 12/1/2008 112,625 164
275M New Hanover County Project 5% 12/1/2017 271,219 394
- -----------------------------------------------------------------------------------------------------------------
494,969 719
- -----------------------------------------------------------------------------------------------------------------
Education--3.9%
250M North Carolina Cent. Univ. Hsg. Rev. 5.6% 11/1/2012 265,937 387
- -----------------------------------------------------------------------------------------------------------------
General Obligation--40.1%
250M Cleveland County 5 1/2% 3/1/2012 264,688 385
200M Cumberland County 5 1/2% 4/1/2012 211,500 307
200M Currituck County 5.4% 4/1/2013 208,500 303
200M Gaston County 5.7% 3/1/2013 212,750 309
220M Laurinburg 5.3% 6/1/2012 228,800 332
200M Mecklenburg County 6.2% 1/1/2002* 216,250 314
200M Morganton 5.7% 6/1/2014 213,750 311
400M Onslow County 5.7% 3/1/2011 432,000 628
225M Puerto Rico Commonwealth 6 1/4% 7/1/2012 260,438 378
280M Rowan County 5.6% 4/1/2014 297,500 432
200M Watauga County 5.9% 6/1/2014 215,250 313
- -----------------------------------------------------------------------------------------------------------------
2,761,426 4,012
- -----------------------------------------------------------------------------------------------------------------
Health Care--5.1%
150M New Hanover County (New Hanover Regional Medical Center)
5 3/4% 10/1/2026* 158,062 230
175M Puerto Rico Indl. Tourist Edl. Med. and Env. Ctl. Facs. 61/4% 7/1/2016 193,594 281
- -----------------------------------------------------------------------------------------------------------------
351,656 511
- -----------------------------------------------------------------------------------------------------------------
Housing--2.0%
125M North Carolina Housing Finance Agency Multi-Family 6.6% 7/1/2017 137,187 199
- -----------------------------------------------------------------------------------------------------------------
Transportation--6.8%
400M Puerto Rico Commonwealth Highway & Transportation Authority
6 1/4% 7/1/2014 468,500 681
- -----------------------------------------------------------------------------------------------------------------
Utilities--24.1%
250M Asheville Water System Revenue 5 5/8% 8/1/2013 266,875 388
250M Buncombe County Solid Waste System 5.6% 3/1/2011 266,875 388
390M Fayetteville Public Works Commission Revenue 5.7% 2/1/2010 420,713 611
250M Kinston Enterprise System Revenue 5.7% 4/1/2012 269,063 391
200M North Carolina Eastern Municipal Power Agency 5.6% 1/1/2010 214,250 311
200M North Carolina Municipal Power Agency (Catawba Electric) 6% 1/1/2010 225,250 327
- -----------------------------------------------------------------------------------------------------------------
1,663,026 2,416
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--8.2%
250M Puerto Rico Commonwealth Infrastructure Fing. Auth. Spl. 5% 7/1/2017 249,375 362
270M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2012 314,212 457
- -----------------------------------------------------------------------------------------------------------------
563,587 819
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $6,217,678) 97.4% 6,706,288 9,744
Other Assets, Less Liabilities 2.6 176,069 256
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $6,882,357 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.0%
Education--6.5%
$1,000M Allegheny County Higher Educ. Bldg. Auth. (Duquesne Univ.)
5% 3/1/2016 $ 995,000 $ 226
675M Northeast. Pa. Hosp. & Ed. Auth. (Luzerne Cnty. Cmnty. College)
6.55% 2/15/2005* 762,750 174
1,000M Philadelphia Hosp. & Higher Edl. Facs. Auth. (Cmnty. College)
6 1/8% 5/1/2014 1,092,500 249
- -----------------------------------------------------------------------------------------------------------------
2,850,250 649
- -----------------------------------------------------------------------------------------------------------------
General Obligation--22.2%
1,470M Erie 5.7% 5/15/2012 1,563,713 356
1,310M General McLane School District 5 3/4% 5/15/2013 1,393,512 317
700M Jeannette School District 6.65% 6/15/2001* 756,875 172
1,000M Philadelphia 6% 11/15/2014 1,081,250 246
1,500M Pittsburgh 5 1/2% 9/1/2014 1,629,375 371
Shaler Area School District:
1,500M 5.6% 11/15/2018** 519,375 118
1,000M 5.65% 11/15/2021** 295,000 67
1,000M Stroudsburg Area School District 5.8% 10/1/2010 1,070,000 243
800M Trinity Area School District 6 5/8% 11/1/2001* 869,000 197
565M Venango County 7% 7/15/2000* 605,256 138
- -----------------------------------------------------------------------------------------------------------------
9,783,356 2,225
- -----------------------------------------------------------------------------------------------------------------
Health Care--22.9%
Allegheny County Hospital Development Authority:
1,000M Allegheny General Hospital Project 6.2% 9/1/2015 1,102,500 251
Health Center - University of Pittsburgh:
1,000M 5.6% 4/1/2013 1,057,500 241
1,000M 5.65% 4/1/2014 1,062,500 241
1,250M South Hills Health System 5.8% 5/1/2016 1,328,125 302
1,500M Berks County Mun. Auth. Hosp. (Reading Hosp. Med. Ctr.) 5.7%
10/1/2014 1,644,375 374
1,100M Blair County Hosp. Auth. Rev. (Altoona Hosp.) 6 3/8%
7/1/2014 1,196,250 272
1,000M Dauphin County Gen. Health System (Pinnacle Health System)
5 1/2% 5/15/2013 1,046,250 238
1,000M Pennsylvania State Higher Edl. Facs. Auth. Health Svcs.
5.7% 11/15/2011 1,088,750 248
500 M St. Mary Hosp. Auth., Langhorne (Franciscan Health) 7% 7/1/2014 527,500 120
- -----------------------------------------------------------------------------------------------------------------
10,053,750 2,287
- -----------------------------------------------------------------------------------------------------------------
Housing--2.4%
Pennsylvania Housing Finance Agency Single-Family Mtge.:
460M 7.15% 4/1/2015 489,900 112
535M 7.3% 10/1/2017 572,450 130
- -----------------------------------------------------------------------------------------------------------------
1,062,350 242
- -----------------------------------------------------------------------------------------------------------------
Utilities--32.5%
Allegheny County Sanitation Authority Sewer Revenue:
1,100M 6 1/2% 12/1/2001* 1,192,125 271
1,000M 6 1/4% 12/1/2014 1,102,500 250
1,000M Easton Area Joint Sewer Authority 5% 12/1/2014 993,750 226
350M Harrisburg Authority Water Revenue 6 1/2% 8/15/2002* 382,813 87
1,000M North Pennsylvania Water Authority 6 7/8% 11/1/2004* 1,158,750 264
1,000M North Wales Water Authority 6 3/4% 11/1/2004* 1,143,750 260
Philadelphia Water & Wastewater:
1,230M 6 1/4% 8/1/2011 1,409,887 321
2,000M 6 1/4% 8/1/2012 2,302,500 524
2,950M Pittsburgh Water & Sewer Authority 6 1/2% 9/1/2013 3,503,125 797
1,000M Washington County Indl. Dev. Auth. (West Penn. Power)
6.05% 4/1/2014 1,081,250 246
- -----------------------------------------------------------------------------------------------------------------
14,270,450 3,246
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--12.5%
1,500M Harrisburg Authority Pooled Bond Program 5 5/8% 4/01/2015 1,571,250 357
1,000M Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. 7%
6/15/2005* 1,167,500 266
1,000M Pennsylvania State Industrial Development Authority 6%
1/1/2012 1,085,000 247
1,000M Philadelphia Authority for Ind. Dev. Lease Rev. 5.4%
2/15/2017 1,030,000 234
500M Somerset County Gen. Auth. Commonwealth Lease Rev. 7%
10/15/2001* 549,375 125
100M Washington County Auth. Lease Rev. 7.45% 6/15/2000* 110,500 25
- -----------------------------------------------------------------------------------------------------------------
5,513,625 1,254
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $39,532,135) 99.0% 43,533,781 9,903
Other Assets, Less Liabilities 1.0 428,426 97
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $43,962,207 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of original issue discount.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.6%
Education--7.8%
$ 575M George Mason University 6 3/8% 8/1/2016 $ 638,250 $ 271
1,100M Norfolk Redev. & Hsg. Auth. (Tidewater Cmnty. College)
5 7/8% 11/1/2015 1,186,625 504
- -----------------------------------------------------------------------------------------------------------------
1,824,875 775
- -----------------------------------------------------------------------------------------------------------------
General Obligation--6.7%
1,000M Chesapeake Public Improvement 5% 5/1/2013 1,018,750 433
500M Virginia State Public School Authority 6 1/2% 8/1/2013 559,375 238
- -----------------------------------------------------------------------------------------------------------------
1,578,125 671
- -----------------------------------------------------------------------------------------------------------------
Health Care--18.5%
1,150M Danville Ind. Dev. Auth. (Danville Reg. Med. Ctr.) 6 3/8%
10/1/2014 1,276,500 543
500M Hanover County Indl. Dev. Auth. (Bon Secours Health Sys. Projs.)
6% 8/15/2010 568,125 241
Roanoke Indl. Dev. Auth. (Roanoke Memorial Hospitals Projects):
295M 6 1/2% 7/1/2000* 312,331 133
255M 7 1/4% 7/1/2000* 278,906 119
1,675M 6 1/8% 7/1/2017 1,917,875 815
- -----------------------------------------------------------------------------------------------------------------
4,353,737 1,851
- -----------------------------------------------------------------------------------------------------------------
Transportation--15.9%
1,000M Puerto Rico Commonwealth Highway & Transportation Authority
6 1/4% 7/1/2014 1,171,250 498
280M Richmond Metro. Auth. Expressway Rev. 7% 10/15/2000* 314,300 134
Washington, D.C. Metropolitan Area Transportation Authority:
1,000M 6% 7/1/2008 1,131,250 481
1,000M 6% 7/1/2010 1,130,000 480
- -----------------------------------------------------------------------------------------------------------------
3,746,800 1,593
- -----------------------------------------------------------------------------------------------------------------
Utilities--24.2%
175M Henry County Public Service Auth. Water & Sewer Rev.
7.2% 11/15/2000* 191,625 81
Leesburg Utility System Revenue:
750M 6.3% 7/1/2002* 825,938 351
650M 5 1/8% 7/1/2017 651,625 277
500M Loudoun County Sanitation Authority Water & Sewer Revenue
6 1/4% 1/1/2010 548,750 233
1,000M Norfolk Water Revenue 5 7/8% 11/1/2015 1,073,750 456
1,000M Prince William County Svce. Auth. Water & Sewer Sys.Rev.
6 1/2% 7/1/2001* 1,092,500 465
560M Roanoke County Water System Revenue 6 1/2% 7/1/2001* 613,200 261
625M Upper Occoquan Sewer Authority Regional Sewer Revenue 6 1/2% 7/1/2001* 684,375 291
- -----------------------------------------------------------------------------------------------------------------
5,681,763 2,415
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--24.5%
1,000M Chesapeake Indl. Dev. Auth. (Chesapeake Court House Proj.)
5 1/4% 6/1/2017 1,012,500 431
700M Frederick County Indl. Dev. Auth. (Govt. Complex Proj.)
6 1/2% 12/1/2014 792,750 337
545M Pamunkey Regional Jail Authority 5 3/4% 7/1/2018 579,744 246
1,000M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2014 1,166,250 496
1,000M Richmond Redev. & Hsg. Auth. (Old Manchester Proj.)
6.8% 3/1/2015 1,130,000 480
1,000M Riverside Regional Jail Authority 5 7/8% 7/1/2014 1,082,500 460
- -----------------------------------------------------------------------------------------------------------------
5,763,744 2,450
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $20,655,669) 22,949,044 9,755
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.4%
$ 100M Roanoke Industrial Development Authority (Carilion Health System)
Adjustable Rate Note 4.80% (cost $100,000)** $ 100,000 $ 42
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $20,755,669) 98.0% 23,049,044 9,797
Other Assets, Less Liabilities 2.0 476,948 203
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $23,525,992 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. Interest rate shown is
the rate in effect at December 31, 1997.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1997
- ------------------------- ------------------ -----------------------------------------------------------------
FIRST INVESTORS FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
NEW YORK INSURED -----------------------------------------------------------------
TAX FREE FUND, INC. CONNECTICUT FLORIDA GEORGIA MARYLAND
- ------------------------- ------------------ -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $177,947,232 $17,092,661 $21,613,647 $2,933,044 $11,187,064
============ =========== =========== ========== ===========
At value (Note 1A) $195,138,525 $18,827,400 $24,200,386 $3,272,694 $12,243,038
Cash 266,846 77,340 140,518 23,676 7,467
Receivables:
Interest 4,178,441 358,024 350,159 66,105 263,106
Shares sold 24,007 77,727 68,015 641 680
------------ ----------- ----------- ---------- -----------
Total Assets 199,607,819 19,340,491 24,759,078 3,363,116 12,514,291
------------ ----------- ----------- ---------- -----------
Liabilities
Payables:
Investment securities purchased -- 247,285 -- -- --
Distributions payable 378,377 12,432 61,359 3,280 20,986
Shares redeemed 205,809 27,000 3,611 5,000 --
Accrued advisory fees 115,510 7,826 10,240 553 3,106
Accrued expenses 32,463 3,911 7,129 -- 2,695
------------ ----------- ----------- ---------- -----------
Total Liabilities 732,159 298,454 82,339 8,833 26,787
------------ ----------- ----------- ---------- -----------
Net Assets $198,875,660 $19,042,037 $24,676,739 $3,354,283 $12,487,504
============ =========== =========== ========== ===========
Net Assets Consist of:
Capital paid in $181,669,158 $17,446,108 $22,087,773 $3,025,504 $11,509,439
Undistributed net
investment income 15,802 1,540 2,227 344 1,108
Accumulated net realized loss
on investments (593) (140,350) -- (11,215) (79,017)
Net unrealized appreciation
in value of investments 17,191,293 1,734,739 2,586,739 339,650 1,055,974
------------ ----------- ----------- ---------- -----------
Total $198,875,660 $19,042,037 $24,676,739 $3,354,283 $12,487,504
============ =========== =========== ========== ===========
Net Assets:
Class A $195,273,314 $16,150,989 $23,839,942 $3,151,576 $10,705,221
Class B $ 3,602,346 $ 2,891,048 $ 836,797 $ 202,707 $ 1,782,283
Shares outstanding (Note 2):
Class A 13,139,889 1,225,916 1,749,872 240,092 797,109
Class B 242,488 219,595 61,413 15,460 132,740
Net asset value and redemption
price per share--Class A $14.86 $13.17 $13.62 $13.13 $13.43
====== ====== ====== ====== ======
Maximum offering price per
share--Class A* $15.85 $14.05 $14.53 $14.01 $14.33
====== ====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $14.86 $13.17 $13.63 $13.11 $13.43
====== ====== ====== ====== ======
<CAPTION>
Statement of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------------
NORTH
MASSACHUSETTS NEW JERSEY CAROLINA PENNSYLVANIA VIRGINIA
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $21,785,655 $55,271,895 $6,217,678 $39,532,135 $20,755,669
=========== =========== ========== =========== ===========
At value (Note 1A) $24,087,389 $61,287,354 $6,706,288 $43,533,781 $23,049,044
Cash 145,680 6,765 19,257 40,342 69,058
Receivables:
Interest 424,192 1,300,043 114,735 604,669 480,555
Shares sold 34,046 8,242 53,850 73,583 5,429
----------- ----------- ---------- ----------- -----------
Total Assets 24,691,307 62,602,404 6,894,130 44,252,375 23,604,086
----------- ----------- ---------- ----------- -----------
Liabilities
Payables:
Investment securities purchased 978,725 988,665 -- --
Distributions payable 43,598 178,158 10,668 230,721 40,275
Shares redeemed 16,500 129,389 -- 32,146 21,156
Accrued advisory fees 9,767 30,611 1,092 18,305 9,738
Accrued expenses 7,372 22,093 13 8,996 6,925
----------- ----------- ---------- ----------- -----------
Total Liabilities 1,055,962 1,348,916 11,773 290,168 78,094
----------- ----------- ---------- ----------- -----------
Net Assets $23,635,345 $61,253,488 $6,882,357 $43,962,207 $23,525,992
=========== =========== ========== =========== ===========
Net Assets Consist of:
Capital paid in $21,333,444 $55,230,803 $6,489,888 $39,958,184 $21,230,426
Undistributed net investment income 167 7,226 308 2,377 2,191
Accumulated net realized loss
on investments -- -- (96,449) -- --
Net unrealized appreciation
in value of investments 2,301,734 6,015,459 488,610 4,001,646 2,293,375
----------- ----------- ---------- ----------- -----------
Total $23,635,345 $61,253,488 $6,882,357 $43,962,207 $23,525,992
=========== =========== ========== =========== ===========
Net Assets:
Class A $22,851,852 $59,242,864 $6,697,250 $42,222,933 $22,136,443
Class B $ 783,493 $ 2,010,624 $ 185,107 $ 1,739,274 $ 1,389,549
Shares outstanding (Note 2):
Class A 1,873,547 4,452,814 528,806 3,179,262 1,673,933
Class B 64,261 151,379 14,622 131,068 105,173
Net asset value and redemption
price per share--Class A $12.20 $13.30 $12.66 $13.28 $13.22
====== ====== ====== ====== ======
Maximum offering price per
share--Class A* $13.01 $14.19 $13.50 $14.17 $14.10
====== ====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $12.19 $13.28 $12.66 $13.27 $13.21
====== ====== ====== ====== ======
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Six Months Ended December 31, 1997
- ------------------------- ------------------ ----------------------------------------------------------------
FIRST INVESTORS FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
NEW YORK INSURED ----------------------------------------------------------------
TAX FREE FUND, INC. CONNECTICUT FLORIDA GEORGIA MARYLAND
- ------------------------- ------------------ ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest income $12,022,802 $ 944,693 $1,327,161 $183,761 $ 640,034
----------- ---------- ---------- -------- ----------
Expenses (Notes 1 and 5):
Advisory fees 1,494,704 127,040 180,696 25,361 87,165
Distribution plan expenses
- --Class A 588,895 30,411 46,863 6,381 20,444
Distribution plan expenses
- --Class B 29,953 17,334 6,614 1,908 13,994
Shareholder servicing costs 164,607 17,467 18,102 4,237 11,715
Professional fees 46,797 9,660 10,657 5,506 8,274
Custodian fees 18,402 3,234 3,957 876 2,614
Reports to shareholders 38,397 2,324 2,390 410 1,172
Bond insurance premiums 28,465 3,032 -- 138 2,442
Other expenses 56,148 5,070 8,510 2,474 2,507
----------- ---------- ---------- -------- ----------
Total expenses 2,466,368 215,572 277,789 47,291 150,327
Less: Expenses waived or assumed (99,647) (62,971) (75,857) (31,376) (78,862)
Custodian fees paid indirectly (13,283) (3,234) (3,957) (866) (2,189)
----------- ---------- ---------- -------- ----------
Expenses--net 2,353,438 149,367 197,975 15,049 69,276
----------- ---------- ---------- -------- ----------
Net investment income 9,669,364 795,326 1,129,186 168,712 570,758
----------- ---------- ---------- -------- ----------
Realized and Unrealized Gain
on Investments (Note 4):
Net realized gain on investments 999,973 50,520 67,791 30,180 42,900
Net unrealized appreciation
of investments 4,334,404 584,046 918,984 119,243 452,934
----------- ---------- ---------- -------- ----------
Net gain on investments 5,334,377 634,566 986,775 149,423 495,834
----------- ---------- ---------- -------- ----------
Net Increase in Net Assets
Resulting from Operations $15,003,741 $1,429,892 $2,115,961 $318,135 $1,066,592
=========== ========== ========== ======== ==========
<CAPTION>
Statement of Operations (Continued)
- -----------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------
NORTH
MASSACHUSETTS NEW JERSEY CAROLINA PENNSYLVANIA VIRGINIA
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest income $1,346,062 $3,490,649 $325,628 $2,485,769 $1,251,923
---------- ---------- -------- ---------- ----------
Expenses (Notes 1 and 5):
Advisory fees 173,659 453,656 46,342 330,424 168,175
Distribution plan expenses
- --Class A 45,042 117,517 12,101 85,681 42,401
Distribution plan expenses
- --Class B 6,339 17,297 1,282 12,159 12,227
Shareholder servicing costs 22,584 43,270 6,607 31,722 22,411
Professional fees 12,057 25,692 6,857 10,773 11,294
Custodian fees 4,019 7,765 1,527 9,185 3,849
Reports to shareholders 3,433 5,968 682 4,394 3,123
Bond insurance premiums 700 2,000 510 1,498 2,561
Other expenses 7,612 19,302 2,532 12,232 7,075
---------- ---------- -------- ---------- ----------
Total expenses 275,445 692,467 78,440 498,068 273,116
Less: Expenses waived or assumed (81,986) (90,731) (51,264) (110,141) (80,537)
Custodian fees paid indirectly (3,152) (6,003) (1,431) (4,297) (3,435)
---------- ---------- -------- ---------- ----------
Expenses--net 190,307 595,733 25,745 383,630 189,144
---------- ---------- -------- ---------- ----------
Net investment income 1,155,755 2,894,916 299,883 2,102,139 1,062,779
---------- ---------- -------- ---------- ----------
Realized and Unrealized Gain
on Investments (Note 4):
Net realized gain on investments 140,093 538,959 14,963 499,152 55,541
Net unrealized appreciation
of investments 551,435 1,458,613 254,334 1,260,229 841,380
---------- ---------- -------- ---------- ----------
Net gain on investments 691,528 1,997,572 269,297 1,759,381 896,921
---------- ---------- -------- ---------- ----------
Net Increase in Net Assets
Resulting from Operations $1,847,283 $4,892,488 $569,180 $3,861,520 $1,959,700
========== ========== ======== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE
FIRST INVESTORS INSURED TAX FREE FUND
NEW YORK INSURED ---------------------------
TAX FREE FUND, INC. CONNECTICUT
-------------------------- ---------------------------
Year Ended December 31 1997 1996 1997 1996
- ------------------------------------------------------- -------------------------- ---------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets From Operations
Net investment income $ 9,669,364 $ 10,253,917 $ 795,326 $ 813,628
Net realized gain (loss) on investments 999,973 1,289,959 50,520 49,894
Net unrealized appreciation (depreciation)
of investments 4,334,404 (5,797,415) 584,046 (341,867)
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 15,003,741 5,746,461 1,429,892 521,655
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income--Class A (9,533,619) (10,188,583) (727,487) (763,323)
Net investment income--Class B (124,703) (81,519) (69,611) (47,896)
Net realized gains--Class A (991,578) (1,270,477) -- --
Net realized gains--Class B (18,325) (14,025) -- --
------------ ------------ ----------- -----------
Total distributions (10,668,225) (11,554,604) (797,098) (811,219)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 8,821,313 14,929,752 3,345,337 1,791,879
Value of distributions reinvested 7,725,167 8,479,739 577,348 591,466
Cost of shares redeemed (29,029,473) (29,403,688) (3,536,484) (3,622,967)
------------ ------------ ----------- -----------
(12,482,993) (5,994,197) 386,201 (1,239,622)
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 1,309,248 1,324,681 1,650,444 870,165
Value of distributions reinvested 85,393 43,157 60,562 44,644
Cost of shares redeemed (109,219) (242,836) (396,030) (259,832)
------------ ------------ ----------- -----------
1,285,422 1,125,002 1,314,976 654,977
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions (11,197,571) (4,869,195) 1,701,177 (584,645)
------------ ------------ ----------- -----------
Net increase (decrease) in net assets (6,862,055) (10,677,338) 2,333,971 (874,209)
Net Assets
Beginning of year 205,737,715 216,415,053 16,708,066 17,582,275
------------ ------------ ----------- -----------
End of year + $198,875,660 $205,737,715 $19,042,037 $16,708,066
============ ============ =========== ===========
+Includes undistributed net investment income of $ 15,802 $ 4,760 $ 1,540 $ 3,312
============ ============ =========== ===========
(a)Shares Issued and Redeemed
Class A:
Sold 605,875 1,025,758 261,160 142,380
Issued for distributions reinvested 528,609 582,469 44,937 46,920
Redeemed (1,993,188) (2,024,730) (276,898) (288,759)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding (858,704) (416,503) 29,199 (99,459)
============ ============ =========== ===========
Class B:
Sold 89,912 90,689 127,371 69,093
Issued for distributions reinvested 5,830 2,968 4,708 3,543
Redeemed (7,506) (16,810) (30,991) (20,572)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 88,236 76,847 101,088 52,064
============ ============ =========== ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
- ----------------------------------------------------- ------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------
FLORIDA GEORGIA
-------------------------- ------------------------
Year Ended December 31 1997 1996 1997 1996
- ----------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,129,186 $ 1,094,996 $ 168,712 $ 172,346
Net realized gain (loss) on investments 67,791 74,824 30,180 (3,567)
Net unrealized appreciation (depreciation)
of investments 918,984 (389,084) 119,243 (35,533)
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 2,115,961 780,736 318,135 133,246
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income--Class A (1,103,241) (1,080,032) (160,266) (168,808)
Net investment income--Class B (25,765) (17,788) (8,102) (5,554)
Net realized gains--Class A (64,428) -- -- --
Net realized gains--Class B (2,262) -- -- --
------------ ------------ ----------- -----------
Total distributions (1,195,696) (1,097,820) (168,368) (174,362)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 3,953,847 4,886,609 311,222 708,947
Value of distributions reinvested 639,331 527,296 121,894 130,926
Cost of shares redeemed (4,945,111) (4,030,124) (691,067) (577,642)
------------ ------------ ----------- -----------
(351,933) 1,383,781 (257,951) 262,231
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 383,014 270,535 46,095 53,815
Value of distributions reinvested 19,073 11,860 8,065 5,551
Cost of shares redeemed (141,095) (29,524) (11,387) (5,516)
------------ ------------ ----------- -----------
260,992 252,871 42,773 53,850
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions (90,941) 1,636,652 (215,178) 316,081
------------ ------------ ----------- -----------
Net increase (decrease) in net assets 829,324 1,319,568 (65,411) 274,965
Net Assets
Beginning of year 23,847,415 22,527,847 3,419,694 3,144,729
------------ ------------ ----------- -----------
End of year + $ 24,676,739 $ 23,847,415 $ 3,354,283 $ 3,419,694
============ ============ =========== ===========
+ Includes undistributed net investment income of $ 2,227 $ 2,047 $ 344 $ --
============ ============ =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 297,950 376,905 24,835 57,305
Issued for distributions 48,100 40,598 9,603 10,551
Redeemed (373,839) (309,903) (54,774) (46,987)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding (27,789) 107,600 (20,336) 20,869
============ ============ =========== ===========
Class B:
Sold 28,887 20,824 3,668 4,383
Issued for distributions reinvested 1,432 913 635 447
Redeemed (10,782) (2,299) (895) (449)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 19,537 19,438 3,408 4,381
============ ============ =========== ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
- ----------------------------------------------------- --------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------------------
MARYLAND MASSACHUSETTS
-------------------------- --------------------------
Year Ended December 31 1997 1996 1997 1996
- ----------------------------------------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 570,758 $ 505,439 $ 1,155,755 $ 1,172,357
Net realized gain (loss) on investments 42,900 (12,765) 140,093 85,294
Net unrealized appreciation (depreciation)
of investments 452,934 (142,574) 551,435 (573,806)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,066,592 350,100 1,847,283 683,845
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income--Class A (511,125) (471,931) (1,133,213) (1,153,025)
Net investment income--Class B (58,525) (37,153) (26,803) (16,672)
Net realized gains--Class A -- -- (137,168) (83,372)
Net realized gains--Class B -- -- (4,721) (1,922)
------------ ------------ ------------ ------------
Total distributions (569,650) (509,084) (1,301,905) (1,254,991)
------------ ------------ ------------ ------------
Share Transactions (a)
Class A:
Proceeds from shares sold 1,369,331 2,371,706 2,739,539 2,511,826
Value of distributions reinvested 315,673 318,426 983,401 944,356
Cost of shares redeemed (1,531,338) (1,084,280) (3,944,233) (3,529,036)
------------ ------------ ------------ ------------
153,666 1,605,852 (221,293) (72,854)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 755,812 605,384 242,414 202,279
Value of distributions reinvested 33,277 27,636 24,880 16,060
Cost of shares redeemed (90,836) (29,524) (18,083) (6,000)
------------ ------------ ------------ ------------
698,253 603,496 249,211 212,339
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 851,919 2,209,348 27,918 139,485
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 1,348,861 2,050,364 573,296 (431,661)
Net Assets
Beginning of year 11,138,643 9,088,279 23,062,049 23,493,710
------------ ------------ ------------ ------------
End of year + $ 12,487,504 $ 11,138,643 $ 23,635,345 $ 23,062,049
============ ============ ============ ============
+ Includes undistributed net investment income of $ 1,108 $ -- $ 167 $ 4,428
============ ============ ============ ============
(a) Shares Issued and Redeemed
Class A:
Sold 105,429 185,393 228,885 211,581
Issued for distributions 24,226 24,934 81,842 79,444
Redeemed (118,217) (85,125) (328,701) (296,546)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares
outstanding 11,438 125,202 (17,974) (5,521)
============ ============ ============ ============
Class B:
Sold 57,852 47,217 20,137 17,031
Issued for distributions reinvested 2,552 2,165 2,069 1,352
Redeemed (6,964) (2,293) (1,506) (510)
------------ ------------ ------------ ------------
Net increase in Class B shares outstanding 53,440 47,089 20,700 17,873
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (Continued)
- -----------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
-------------------------------------------------------
NEW JERSEY NORTH CAROLINA
--------------------------- --------------------------
Year Ended December 31 1997 1996 1997 1996
- ------------------------------------------------------- --------------------------- --------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 2,894,916 $ 2,916,680 $ 299,883 $ 271,024
Net realized gain (loss) on investments 538,959 70,669 14,963 (23,116
Net unrealized appreciation (depreciation)
of investments 1,458,613 (1,196,743) 254,334 (34,400)
----------- ----------- ------------ ------------
Net increase in net assets resulting from operations 4,892,488 1,790,606 569,180 213,508
----------- ----------- ------------ ------------
Distributions to Shareholders
Net investment income--Class A (2,820,992) (2,869,228) (294,736) (266,604)
Net investment income--Class B (70,065) (49,644) (5,281) (4,745)
Net realized gains--Class A (521,354) (68,924) -- --
Net realized gains--Class B (17,683) (1,745) -- --
----------- ----------- ------------ ------------
Total distributions (3,430,094) (2,989,541) (300,017) (271,349)
----------- ----------- ------------ ------------
Share Transactions (a)
Class A:
Proceeds from shares sold 5,185,860 5,754,747 1,277,363 1,421,600
Value of distributions reinvested 2,163,582 1,964,745 189,740 171,717
Cost of shares redeemed (8,349,542) (6,865,273) (855,438) (697,053)
----------- ----------- ------------ ------------
(1,000,100) 854,219 611,665 896,264
----------- ----------- ------------ ------------
Class B:
Proceeds from shares sold 514,175 662,997 125,284 61,061
Value of distributions reinvested 68,543 34,559 3,236 2,715
Cost of shares redeemed (216,809) (37,693) (83,078) (5,871)
----------- ----------- ------------ ------------
365,909 659,863 45,442 57,905
----------- ----------- ------------ ------------
Net increase (decrease) from share transactions (634,191) 1,514,082 657,107 954,169
----------- ----------- ------------ ------------
Net increase (decrease) in net assets 828,203 315,147 926,270 896,328
Net Assets
Beginning of year 60,425,285 60,110,138 5,956,087 5,059,759
----------- ----------- ------------ ------------
End of year+ $61,253,488 $60,425,285 $ 6,882,357 $ 5,956,087
=========== =========== ============ ============
+ Includes undistributed net investment income of $ 7,226 $ 3,367 $ 308 $ 442
=========== =========== ============ ============
(a) Shares Issued and Redeemed
Class A:
Sold 397,509 444,851 103,107 118,028
Issued for distributions reinvested 164,789 152,014 15,450 14,318
Redeemed (638,130) (532,184) (69,558) (58,047)
----------- ----------- ------------ ------------
Net increase (decrease) in Class A shares
outstanding (75,832) 64,681 48,999 74,299
=========== =========== ============ ============
Class B:
Sold 39,138 51,533 10,154 5,163
Issued for distributions reinvested 5,219 2,676 264 227
Redeemed (16,522) (2,937) (6,823) (495)
----------- ----------- ------------ -----------
Net increase in Class B shares outstanding 27,835 51,272 3,595 4,895
=========== =========== ============ ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
- -------------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------------------
PENNSYLVANIA VIRGINIA
---------------------------- --------------------------
Year Ended December 31 1997 1996 1997 1996
- ------------------------------------------------------- ---------------------------- --------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 2,102,139 $ 1,999,437 $ 1,062,779 $ 1,163,876
Net realized gain (loss) on investments 499,152 92,636 55,541 116,236
Net unrealized appreciation (depreciation)
of investments 1,260,229 (641,156) 841,380 (619,607)
----------- ----------- ------------ ------------
Net increase in net assets resulting from operations 3,861,520 1,450,917 1,959,700 660,505
----------- ----------- ------------ ------------
Distributions to Shareholders
Net investment income--Class A (2,053,887) (1,992,199) (1,017,300) (1,113,699)
Net investment income--Class B (48,614) (22,090) (49,137) (46,545)
Net realized gains--Class A (481,910) (90,955) (53,373) (110,130)
Net realized gains--Class B (19,807) (1,681) (3,353) (6,106)
----------- ----------- ------------ ------------
Total distributions (2,604,218) (2,106,925) (1,123,163) (1,276,480)
----------- ----------- ------------ ------------
Share Transactions (a)
Class A:
Proceeds from shares sold 4,830,698 6,171,576 1,989,565 2,536,360
Value of distributions reinvested 1,549,699 1,238,624 717,022 803,597
Cost of shares redeemed (7,614,846) (4,511,225) (2,405,825) (6,898,896)
----------- ----------- ------------ ------------
(1,234,449) 2,898,975 300,762 (3,558,939)
----------- ----------- ------------ ------------
Class B:
Proceeds from shares sold 965,794 553,480 372,554 596,169
Value of distributions reinvested 48,384 18,267 30,964 39,343
Cost of shares redeemed (83,930) (32,601) (227,855) (431,254)
----------- ----------- ------------ ------------
930,248 539,146 175,663 204,258
----------- ----------- ------------ ------------
Net increase (decrease) from share transactions (304,201) 3,438,121 476,425 (3,354,681)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets 953,101 2,782,113 1,312,962 (3,970,656)
Net Assets
Beginning of year 43,009,106 40,226,993 22,213,030 26,183,686
----------- ----------- ------------ ------------
End of year+ $43,962,207 $43,009,106 $ 23,525,992 $ 22,213,030
=========== =========== ============ ============
+ Includes undistributed net investment income of $ 2,377 $ 2,739 $ 2,191 $ 5,849
=========== =========== ============ ============
(a) Shares Issued and Redeemed
Class A:
Sold 373,121 482,260 155,283 199,610
Issued for distributions reinvested 118,522 96,567 55,601 63,260
Redeemed (582,302) (352,480) (187,941) (548,735)
----------- ----------- ------------ ------------
Net increase (decrease) in Class A shares
outstanding (90,659) 226,347 22,943 (285,865)
=========== =========== ============ ============
Class B:
Sold 73,391 42,789 29,002 46,713
Issued for distributions reinvested 3,687 1,424 2,405 3,098
Redeemed (6,492) (2,514) (17,762) (34,525)
----------- ----------- ------------ ------------
Net increase in Class B shares outstanding 70,586 41,699 13,645 15,286
=========== =========== ============ ============
See notes to financial statements
</TABLE>
Notes to Financial Statements
First Investors New York Insured Tax Free Fund, Inc.
First Investors Multi-State Insured Tax Free Fund
Connecticut, Florida, Georgia, Maryland, Massachusetts,
New Jersey, North Carolina, Pennsylvania and Virginia Funds
1. Significant Accounting Policies--First Investors New York Insured
Tax Free Fund, Inc. ("New York Insured") and First Investors Multi-
State Insured Tax Free Fund ("Multi-State Insured")(collectively,
"Funds") are registered under the Investment Company Act of 1940 (the
"1940 Act") as diversified, open-end management investment companies.
New York Insured consists of a single investment series and Multi-
State Insured consists of seventeen separate investment series. This
report relates to New York Insured and the nine Funds of Multi-State
Insured listed above. Multi-State Insured operates as a series fund,
issuing shares of beneficial interest in each Fund and accounts
separately for the assets, liabilities and operations of each Fund.
The investment objective of New York Insured is to provide a high
level of interest income which is exempt from federal income tax, New
York State and New York City personal income taxes.
The investment objective of each Fund of Multi-State Insured is to
achieve a high level of interest income which is exempt from federal
income tax and, to the extent indicated in the prospectus, from state
and local income taxes for residents of that state.
A. Security Valuation--The municipal securities in which the Funds
invest are traded primarily in the over-the-counter markets. Such
securities are valued daily at their fair value on the basis of
valuations provided by a pricing service approved by the Board of
Directors/Trustees. The pricing service considers security type,
rating, market condition and yield data, as well as market quotations
and prices provided by market makers. "When Issued Securities" are
reflected in the assets of the Funds as of the date the securities are
purchased.
The municipal bonds held by the Funds are insured as to payment of
principal and interest by the issuer or under insurance policies
written by independent insurance companies. The Funds may retain any
insured municipal bond which is in default in the payment of principal
or interest until the default has been cured, or the principal and
interest outstanding are paid by an insurer or the issuer of any
letter of credit or other guarantee supporting such municipal bond. In
such case, it is the Funds' policy to value the defaulted bond daily
based upon the value of a comparable bond which is insured and not in
default. In selecting a comparable bond, the Funds will consider
security type, rating, market condition and yield. Each Fund may
invest up to 35% of its assets in portfolio securities not covered by
the insurance feature.
B. Federal Income Taxes--It is the policy of the Funds to continue to
qualify as regulated investment companies, which can distribute tax
exempt dividends, by complying with the provisions available to
certain investment companies, as defined in the Internal Revenue Code.
The Funds make distributions of income and net realized capital gains
(in excess of any available capital loss carryovers) sufficient to
relieve them from all, or substantially all, federal income taxes.
At December 31, 1997, Funds having capital loss carryovers were as
follows:
Year Capital Loss
Carryovers Expire
-------------------------------------------
MULTI-STATE INSURED Total 2002 2003 2004
- --------------------- -------- -------- -------- --------
CONNECTICUT Fund $140,350 $140,350 $ -- $ --
GEORGIA Fund 11,215 -- 7,648 3,567
MARYLAND Fund 79,017 66,252 -- 12,765
NORTH CAROLINA Fund 96,449 53,037 20,296 23,116
C. Distributions to Shareholders--Dividends from net investment income
are declared daily and paid monthly. Distributions from net realized
capital gains 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 and post-October capital losses.
D. Expense Allocation--Direct expenses attributable to a Fund are
charged to and paid from the assets of that Fund. Indirect or general
expenses of Multi-State Insured are allocated among and charged to the
assets of each Fund 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. Security Transactions and Investment Income--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. Interest income is earned from settlement date and recorded
on the accrual basis. Estimated expenses are accrued daily. The Funds'
custodian has provided credits for the New York Insured and the nine
Funds of Multi-State Insured included in this report of $13,283, and
$28,564, respectively, against custodian charges based on the
uninvested cash balances of the Funds.
F. Use of Estimates--The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
2. Capital--Each Fund sells two classes of shares, Class A and Class
B, each with a public offering price that reflects different sales
charges and expense levels. Class A shares are sold with an initial
sales charge of up to 6.25% of the amount invested and together with
the Class B shares are subject to distribution plan fees as described
in Note 5. Class B shares are sold without an initial sales charge,
but are generally subject to a contingent deferred sales charge which
declines in steps from 4% to 0% over a six-year period. Class B shares
automatically convert into Class A shares after eight years. Realized
and unrealized gains or losses, investment income and expenses (other
than distribution plan fees) are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
Of the 1,000,000,000 shares originally authorized, New York Insured
has designated 500,000,000 shares as Class A and 500,000,000 shares as
Class B. Multi-State Insured has established an unlimited number of
shares of beneficial interest for both Class A and Class B shares.
3. Concentration of Credit Risk--The Funds invest in debt instruments
of municipal issuers whose ability to meet their obligations may be
affected by economic developments in a State, industry or region.
4. Security Transactions--For the year ended December 31, 1997,
purchases and sales of municipal securities, other than short-term
municipal notes, were as follows:
Cost Proceeds
of of
Purchases Sales
-------------- ------------
NEW YORK INSURED $ 46,794,858 $ 62,815,019
MULTI-STATE INSURED
- -------------------
CONNECTICUT Fund 4,085,957 2,373,206
FLORIDA Fund 4,479,534 4,962,042
GEORGIA Fund 702,476 923,602
MARYLAND Fund 4,946,013 3,984,406
MASSACHUSETTS Fund 6,850,543 6,318,425
NEW JERSEY Fund 13,021,296 13,892,413
NORTH CAROLINA Fund 2,466,002 1,809,761
PENNSYLVANIA Fund 15,776,584 16,356,165
VIRGINIA Fund 2,564,724 2,169,262
At December 31, 1997, aggregate cost and net unrealized appreciation
of securities for federal income tax purposes were as follows:
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Cost Appreciation Depreciation Appreciation
------------ ------------ ------------ ------------
NEW YORK
INSURED $177,947,825 $17,190,700 $ -- $17,190,700
MULTI-STATE
INSURED
- -----------
CONNECTICUT
Fund 17,092,661 1,734,739 -- 1,734,739
FLORIDA
Fund 21,613,647 2,586,739 -- 2,586,739
GEORGIA
Fund 2,933,044 339,650 -- 339,650
MARYLAND
Fund 11,187,064 1,055,974 -- 1,055,974
MASSACHUSETTS
Fund 21,785,655 2,301,734 -- 2,301,734
NEW JERSEY
Fund 55,271,895 6,015,459 -- 6,015,459
NORTH CAROLINA
Fund 6,217,678 488,610 -- 488,610
PENNSYLVANIA
Fund 39,532,135 4,001,646 -- 4,001,646
VIRGINIA
Fund 20,755,669 2,293,375 -- 2,293,375
5. Advisory Fee and Other Transactions With Affiliates--Certain
officers and directors/trustees of the Funds are officers and
directors of the Funds' investment adviser, First Investors Management
Company, Inc. ("FIMCO"), their underwriter, First Investors
Corporation ("FIC") and/or their transfer agent, Administrative Data
Management Corp. ("ADM"). Officers and directors/trustees of the Funds
received no remuneration from the Funds for serving in such
capacities. Their remuneration (together with certain other expenses
of the Funds) was paid by FIMCO or FIC. Effective January 1, 1998,
independent directors/trustees will be remunerated by the Funds.
The Investment Advisory Agreements provide as compensation to FIMCO an
annual fee, payable monthly, at the rate of .75% on the first $250
million of the average daily net assets of each Fund, declining by
.03% on each $250 million thereafter, down to .66% on average daily
net assets over $750 million. For the year ended December 31, 1997,
advisory fees of New York Insured amounted to $1,494,704, of which
$99,647 was waived. For the same period, advisory fees for the nine
Funds of Multi-State Insured included in this report amounted to
$1,592,518, of which $522,277 was waived; other expenses in the amount
of $141,448 were assumed by FIMCO.
For the year ended December 31, 1997, FIC, as underwriter, received
$226,611 in commissions on sales of shares of New York Insured, after
allowing $27,388 to other dealers, and $613,321 in commissions on
sales of shares of the nine Funds of Multi-State Insured included in
this report, after allowing $184,393 to other dealers. Shareholder
servicing costs of New York Insured and the nine Funds of Multi-State
Insured consisted of $143,803, and $130,734, respectively, in transfer
agent fees and out of pocket expenses accrued to ADM.
Pursuant to Distribution Plans adopted by the Funds under Rule 12b-1
of the 1940 Act, each Fund is authorized to pay FIC a fee up to .30%
of the average net assets of the Class A shares and up to 1% of the
average 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.
This page left blank intentionally.
<TABLE>
<CAPTION>
Financial Highlights
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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS NEW YORK
INSURED TAX FREE FUND, INC.
Class A
1993 $14.72 $.809 $ .608 $ 1.417 $.820 $.137
1994 15.18 .758 (1.510) (.752) .768 --
1995 13.66 .738 1.331 2.069 .740 .059
1996 14.93 .719 (.298) .421 .720 .091
1997 14.54 .709 .395 1.104 .708 .076
Class B
1/12/95* to 12/31/95 13.76 .616 1.232 1.848 .619 .059
1996 14.93 .617 (.306) .311 .620 .091
1997 14.53 .608 .406 1.014 .608 .076
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
CONNECTICUT FUND
Class A
1993 $12.05 $.615 $ 1.053 $1.668 $.625 $.043
1994 13.05 .609 (1.480) (.871) .609 --
1995 11.57 .617 1.333 1.950 .620 --
1996 12.90 .619 (.202) .417 .617 --
1997 12.70 .613 .471 1.084 .614 --
Class B
1/12/95* to 12/31/95 11.67 .512 1.242 1.754 .524 --
1996 12.90 .522 (.204) .318 .518 --
1997 12.70 .516 .470 .986 .516 --
FLORIDA FUND
Class A
1993 $12.21 $.664 $ 1.032 $1.696 $.671 $.095
1994 13.14 .642 (1.346) (.704) .646 --
1995 11.79 .640 1.527 2.167 .647 --
1996 13.31 .623 (.198) .425 .625 --
1997 13.11 .624 .547 1.171 .624 .037
Class B
1/12/95* to 12/31/95 11.87 .529 1.460 1.989 .549 --
1996 13.31 .530 (.204) .326 .526 --
1997 13.11 .531 .552 1.083 .526 .037
<CAPTION>
Financial Highlights (Continued)
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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS NEW YORK
INSURED TAX FREE FUND, INC.
Class A
1993 $.957 $15.18 9.82 $211,967 1.27 5.35
1994 .768 13.66 (5.03) 193,916 1.28 5.30
1995 .799 14.93 15.45 215,259 1.23 5.10
1996 .811 14.54 2.95 203,496 1.23 4.93
1997 .784 14.86 7.82 195,273 1.17 4.86
Class B
1/12/95* to 12/31/95 .678 14.93 13.66 1,156 2.00+ 4.34+
1996 .711 14.53 2.18 2,242 1.93 4.23
1997 .684 14.86 7.16 3,602 1.87 4.16
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
CONNECTICUT FUND
Class A
1993 $.668 $13.05 14.10 $ 17,202 .80 4.83
1994 .609 11.57 (6.75) 14,848 .87 5.01
1995 .620 12.90 17.18 16,725 .85 4.98
1996 .617 12.70 3.37 15,203 .81 4.92
1997 .614 13.17 8.77 16,151 .80 4.78
Class B
1/12/95* to 12/31/95 .524 12.90 15.28 8.57 1.71+ 4.12+
1996 .518 12.70 2.57 1,505 1.61 4.12
1997 .516 13.17 7.95 2,891 1.60 3.98
FLORIDA FUND
Class A
1993 $.766 $13.14 14.19 $ 21,397 .45 5.20
1994 .646 11.79 (5.39) 19,765 .62 5.24
1995 .647 13.31 18.77 22,229 .75 5.05
1996 .625 13.11 3.34 23,299 .83 4.80
1997 .661 13.62 9.18 23,840 .80 4.71
Class B
1/12/95* to 12/31/95 .549 13.31 17.06 299 1.68+ 4.12+
1996 .526 13.11 2.56 549 1.62 4.01
1997 .563 13.63 8.38 837 1.60 3.91
<CAPTION>
Financial Highlights (Continued)
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.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS NEW YORK
INSURED TAX FREE FUND, INC.
Class A
1993 N/A N/A 31
1994 N/A N/A 55
1995 N/A N/A 53
1996 N/A N/A 53
1997 1.22 4.81 24
Class B
1/12/95* to 12/31/95 N/A N/A 53
1996 N/A N/A 53
1997 1.92 4.11 24
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
CONNECTICUT FUND
Class A
1993 1.15 4.48 29
1994 1.22 4.66 63
1995 1.20 4.63 26
1996 1.23 4.50 15
1997 1.17 4.41 14
Class B
1/12/95* to 12/31/95 2.07+ 3.76+ 26
1996 2.02 3.71 15
1997 1.97 3.61 14
FLORIDA FUND
Class A
1993 1.10 4.55 53
1994 1.19 4.67 98
1995 1.15 4.65 68
1996 1.16 4.47 55
1997 1.11 4.40 19
Class B
1/12/95* to 12/31/95 2.09+ 3.70+ 68
1996 1.95 3.68 55
1997 1.91 3.60 19
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
GEORGIA FUND
Class A
1993 $11.42 $.603 $ 1.091 $1.694 $.619 $.005
1994 12.49 .584 (1.165) (.581) .579 --
1995 11.33 .653 1.387 2.040 .650 --
1996 12.72 .639 (.161) .478 .648 --
1997 12.55 .639 .578 1.217 .637 --
Class B
1/12/95* to 12/31/95 11.42 .529 1.303 1.832 .542 --
1996 12.71 .563 (.183) .380 .550 --
1997 12.54 .524 .584 1.108 .538 --
MARYLAND FUND
Class A
1993 $12.11 $.653 $ 1.083 $1.736 $.660 $.036
1994 13.15 .644 (1.373) (.729) .651 --
1995 11.77 .668 1.348 2.016 .666 --
1996 13.12 .650 (.235) .415 .655 --
1997 12.88 .652 .549 1.201 .651 --
Class B
1/12/95* to 12/31/95 11.85 .561 1.279 1.840 .570 --
1996 13.12 .555 (.249) .306 .556 --
1997 12.87 .551 .556 1.107 .547 --
MASSACHUSETTS FUND
Class A
1993 $11.71 $.653 $ .716 $1.369 $.660 $.139
1994 12.28 .627 (1.267) (.640) .630 --
1995 11.01 .612 1.227 1.839 .613 .016
1996 12.22 .603 (.256) .347 .602 .045
1997 11.92 .601 .356 .957 .603 .074
Class B
1/12/95* to 12/31/95 11.09 .508 1.155 1.663 .527 .016
1996 12.21 .514 (.263) .251 .506 .045
1997 11.91 .508 .353 .861 .507 .074
<CAPTION>
Financial Highlights (Continued)
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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
GEORGIA FUND
Class A
1993 $.624 $12.49 15.16 $ 1,469 .13 4.96
1994 .579 11.33 (4.69) 2,065 .20 4.99
1995 .650 12.72 18.40 3,047 .20 5.41
1996 .648 12.55 3.94 3,269 .38 5.17
1997 .637 13.13 10.00 3,152 .40 5.03
Class B
1/12/95* to 12/31/95 .542 12.71 16.34 97 1.00+ 4.61+
1996 .550 12.54 3.13 151 1.19 4.36
1997 .538 13.11 9.07 203 1.20 4.23
MARYLAND FUND
Class A
1993 $.696 $13.15 14.62 $ 6,643 .45 5.16
1994 .651 11.77 (5.59) 6,904 .45 5.27
1995 .666 13.12 17.50 8,666 .48 5.32
1996 .655 12.88 3.33 10,118 .51 5.10
1997 .651 13.43 9.59 10,705 .50 5.01
Class B
1/12/95* to 12/31/95 .570 13.12 15.82 423 1.38+ 4.42+
1996 .556 12.87 2.45 1,021 1.31 4.30
1997 .547 13.43 8.81 1,782 1.30 4.21
MASSACHUSETTS FUND
Class A
1993 $.799 $12.28 11.93 $23,653 .90 5.37
1994 .630 11.01 (5.30) 20,838 .95 5.45
1995 .629 12.22 17.07 23,180 .90 5.22
1996 .647 11.92 2.99 22,543 .86 5.08
1997 .677 12.20 8.27 22,852 .80 5.01
Class B
1/12/95* to 12/31/95 .543 12.21 15.28 314 1.76+ 4.36+
1996 .551 11.91 2.16 519 1.66 4.28
1997 .581 12.19 7.41 783 1.60 4.21
<CAPTION>
Financial Highlights (Continued)
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.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
GEORGIA FUND
Class A
1993 1.84 3.24 50
1994 1.93 3.26 78
1995 1.42 4.20 45
1996 1.44 4.11 37
1997 1.33 4.10 21
Class B
1/12/95* to 12/31/95 2.22+ 3.40+ 45
1996 2.25 3.30 37
1997 2.13 3.30 21
MARYLAND FUND
Class A
1993 1.28 4.33 50
1994 1.34 4.37 44
1995 1.24 4.55 49
1996 1.24 4.37 13
1997 1.18 4.33 35
Class B
1/12/95* to 12/31/95 2.19+ 3.61+ 49
1996 2.05 3.57 13
1997 1.98 3.53 35
MASSACHUSETTS FUND
Class A
1993 1.15 5.12 32
1994 1.20 5.20 64
1995 1.15 4.97 40
1996 1.18 4.76 45
1997 1.15 4.66 28
Class B
1/12/95* to 12/31/95 2.01+ 4.10+ 40
1996 1.98 3.96 45
1997 1.95 3.86 28
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5).
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
NEW JERSEY FUND
Class A
1993 $12.67 $.680 $ .947 $ 1.627 $.684 $.103
1994 13.51 .659 (1.448) (.789) .661 --
1995 12.06 .648 1.291 1.939 .652 .097
1996 13.25 .636 (.245) .391 .636 .015
1997 12.99 .630 .427 1.057 .629 .118
Class B
1/12/95* to 12/31/95 12.14 .526 1.199 1.725 .528 .097
1996 13.24 .533 (.253) .280 .535 .015
1997 12.97 .525 .433 .958 .530 .118
NORTH CAROLINA FUND
Class A
1993 $11.37 $.595 $ .962 $1.557 $.604 $.043
1994 12.28 .594 (1.380) (.786) .594 --
1995 10.90 .608 1.391 1.999 .609 --
1996 12.29 .590 (.159) .431 .591 --
1997 12.13 .597 .530 1.127 .597 --
Class B
1/12/95* to 12/31/95 10.99 .492 1.307 1.799 .499 --
1996 12.29 .496 (.161) .335 .495 --
1997 12.13 .497 .534 1.031 .501 --
PENNSYLVANIA FUND
Class A
1993 $12.26 $.667 $ 1.048 $1.715 $.663 $.152
1994 13.16 .627 (1.447) (.820) .630 --
1995 11.71 .638 1.463 2.101 .635 .036
1996 13.14 .622 (.197) .425 .627 .028
1997 12.91 .624 .523 1.147 .624 .153
Class B
1/12/95* to 12/31/95 11.81 .539 1.376 1.915 .549 .036
1996 13.14 .529 (.201) .328 .530 .028
1997 12.91 .526 .510 1.036 .523 .153
<CAPTION>
Financial Highlights (Continued)
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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
NEW JERSEY FUND
Class A
1993 $.787 $13.51 13.09 $64,558 .96 5.12
1994 .661 12.06 (5.91) 55,379 .99 5.21
1995 .749 13.25 16.41 59,153 .99 5.06
1996 .651 12.99 3.09 58,823 .98 4.92
1997 .747 13.30 8.36 59,243 .96 4.81
Class B
1/12/95* to 12/31/95 .625 13.24 14.45 957 1.81+ 4.24+
1996 .550 12.97 2.22 1,603 1.78 4.12
1997 .648 13.28 7.56 2,011 1.76 4.01
NORTH CAROLINA FUND
Class A
1993 $.647 $12.28 13.98 $3,883 .13 4.99
1994 .594 10.90 (6.45) 3,872 .20 5.22
1995 .609 12.29 18.72 4,984 .20 5.18
1996 .591 12.13 3.68 5,822 .38 4.94
1997 .597 12.66 9.56 6,697 .40 4.87
Class B
1/12/95* to 12/31/95 .499 12.29 16.65 75 1.00+ 4.38+
1996 .495 12.13 2.85 134 1.20 4.12
1997 .501 12.66 8.71 185 1.20 4.07
PENNSYLVANIA FUND
Class A
1993 $.815 $13.16 14.28 $35,514 .79 5.17
1994 .630 11.71 (6.31) 33,542 .88 5.11
1995 .671 13.14 18.29 39,980 .86 5.07
1996 .655 12.91 3.39 42,228 .86 4.86
1997 .777 13.28 9.14 42,223 .85 4.79
Class B
1/12/95* to 12/31/95 .585 13.14 16.49 247 1.72+ 4.20+
1996 .558 12.91 2.61 781 1.66 4.06
1997 .676 13.27 8.23 1,739 1.65 3.99
<CAPTION>
Financial Highlights (Continued)
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.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
NEW JERSEY FUND
Class A
1993 1.11 4.97 44
1994 1.14 5.06 60
1995 1.14 4.91 30
1996 1.13 4.77 35
1997 1.11 4.66 22
Class B
1/12/95* to 12/31/95 1.97+ 4.08+ 30
1996 1.93 3.97 35
1997 1.91 3.86 22
NORTH CAROLINA FUND
Class A
1993 1.28 3.83 32
1994 1.44 3.99 61
1995 1.36 4.03 76
1996 1.31 4.02 43
1997 1.23 4.04 30
Class B
1/12/95* to 12/31/95 2.16+ 3.23+ 76
1996 2.12 3.20 43
1997 2.03 3.24 30
PENNSYLVANIA FUND
Class A
1993 1.10 4.86 37
1994 1.13 4.86 81
1995 1.11 4.82 48
1996 1.11 4.61 42
1997 1.10 4.54 37
Class B
1/12/95* to 12/31/95 1.98+ 3.94+ 48
1996 1.91 3.81 42
1997 1.90 3.74 37
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5).
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
VIRGINIA FUND
Class A
1993 $12.23 $.636 $ .915 $1.551 $.639 $.082
1994 13.06 .611 (1.383) (.772) .608 --
1995 11.68 .625 1.370 1.995 .629 .036
1996 13.01 .626 (.195) .431 .624 .067
1997 12.75 .615 .504 1.119 .617 .032
Class B
1/12/95* to 12/31/95 11.76 .510 1.286 1.796 .520 .036
1996 13.00 .525 (.194) .331 .524 .067
1997 12.74 .513 .505 1.018 .516 .032
<CAPTION>
Financial Highlights (Continued)
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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
VIRGINIA FUND
Class A
1993 $.721 $13.06 12.94 $24,684 .81 4.97
1994 .608 11.68 (5.97) 22,325 .85 5.01
1995 .665 13.01 17.42 25,193 .81 5.01
1996 .691 12.75 3.47 21,047 .79 4.93
1997 .649 13.22 9.03 22,136 .80 4.78
Class B
1/12/95* to 12/31/95 .556 13.00 15.53 991 1.66+ 4.16+
1996 .591 12.74 2.66 1,166 1.59 4.13
1997 .548 13.21 8.19 1,390 1.60 3.98
<CAPTION>
Financial Highlights (Continued)
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.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
VIRGINIA FUND
Class A
1993 1.16 4.62 39
1994 1.20 4.66 55
1995 1.16 4.66 34
1996 1.20 4.52 30
1997 1.16 4.42 10
Class B
1/12/95* to 12/31/95 2.02+ 3.80+ 34
1996 2.00 3.72 30
1997 1.96 3.62 10
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5).
See notes to financial statements
</TABLE>
Independent Auditors' Report
To the Shareholders and Boards of Directors/Trustees of
First Investors New York Insured Tax Free Fund, Inc. and
First Investors Multi-State Insured Tax Free Fund
Connecticut, Florida, Georgia, Maryland, Massachusetts,
New Jersey, North Carolina, Pennsylvania and Virginia Funds
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of First Investors New York
Insured Tax Free Fund, Inc. and the nine Funds of First Investors
Multi-State Insured Tax Free Fund listed above as of December 31,
1997, 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 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 audits 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, 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 New York Insured Tax Free Fund,
Inc. and each of the nine Funds of First Investors Multi-State
Insured Tax Free Fund listed above as of December 31, 1997, and the
results of their operations, changes in their net assets and
financial highlights for the periods indicated thereon, in conformity
with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 30, 1998
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
Directors/Trustees
- --------------------------------------------------------------------
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
Clark D. Wagner
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
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
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.
