[FIRST INVESTORS LOGO]
NEW YORK INSURED TAX FREE FUND
MULTI-STATE INSURED TAX FREE FUND
CONNECTICUT FUND
FLORIDA FUND
MASSACHUSETTS FUND
NEW JERSEY FUND
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
THE DATE OF THIS PROSPECTUS IS APRIL 30, 1999
<PAGE>
CONTENTS
INTRODUCTION
FUND DESCRIPTIONS
FUND MANAGEMENT
BUYING AND SELLING SHARES
How and when do the Funds price their shares?
How do I buy shares?
Which class of shares is best for me?
How do I sell shares?
Can I exchange my shares for the shares of other First Investors Funds?
ACCOUNT POLICIES
What about dividends and capital gain distributions?
What about taxes?
How do I obtain a complete explanation of all account privileges
and policies?
FINANCIAL HIGHLIGHTS
New York Insured Tax Free Fund
Multi-State Insured Tax Free Fund
Connecticut Fund
Florida Fund
Massachusetts Fund
New Jersey Fund
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INTRODUCTION
This prospectus describes the New York Insured Tax Free Fund and four of the
seventeen single state insured tax-exempt funds within the Multi-State Insured
Tax Free Fund which invest primarily in tax-exempt municipal bonds. There is an
"Overview" which provides a brief explanation of each Fund's objectives, its
primary strategies and primary risks, how it has performed, and its fees and
expenses. To help you decide if one of these Funds may be right for you, we have
included in the Overview a section offering examples of who should consider
buying a single state Fund. There is also a "Fund in Detail" section with more
information on the strategies and risks of the Funds.
None of the Funds in this prospectus pursues a strategy of allocating its assets
among stocks, bonds, and money market instruments. For most investors, a
complete program should include each of these asset classes. Stocks have
historically outperformed other categories of investments over long periods of
time and are therefore considered an important part of a diversified investment
portfolio. There have been extended periods, however, during which bonds and
money market instruments have outperformed stocks. By allocating your assets
among different types of funds, you can reduce the overall risk of your
portfolio and benefit when bonds and money market instruments outperform stocks.
Of course, even a diversified investment program can result in a loss.
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FUND DESCRIPTIONS
OVERVIEW OF THE SINGLE STATE INSURED TAX FREE FUNDS
OBJECTIVES: The New York Insured Tax Free Fund ("New York Fund") and each
fund of the Multi-State Insured Tax Free Fund (collectively with
the New York Fund, the "Single State Insured Tax Free Funds" or
"Funds") seek a high level of interest income that is exempt from
federal income tax and is not a tax preference item for purposes
of the Alternative Minimum Tax ("AMT"). Each Fund also seeks
income that is exempt from any applicable state income tax for
individual residents of a particular state.
PRIMARY
INVESTMENT
STRATEGIES: Each Fund invests in municipal bonds and municipal securities
that pay interest that is exempt from federal income tax,
including the AMT, as well as any applicable income tax for
residents of a particular state. Each Fund concentrates its
investments in municipal bonds issued by a single state. For
example, the New York Fund invests primarily in New York
municipal securities, the Connecticut Fund invests primarily in
Connecticut municipal securities, and so on. Each Fund also
invests in municipal securities that are issued by U.S.
commonwealths, possessions or territories as long as they do not
produce income that is subject to state income tax. The Florida
Fund invests only in municipal bonds that are not subject to the
Florida intangible personal property tax. The Funds generally
invest in municipal bonds which are insured as to timely payment
of interest and principal by independent insurance companies that
are rated in the top rating category by a nationally recognized
rating organization, such as Moody's Investors Service, Inc.
("Moody's"). The Funds generally invest in long-term bonds with
maturities of fifteen years or more. The New York Fund invests in
variable rate and floating rate municipal notes, including
"inverse floaters."
PRIMARY
RISKS: The most significant risk of investing in the Funds is interest
rate risk. As with other bonds, the market values of municipal
bonds fluctuate with changes in interest rates. When interest
rates rise, they tend to decline in price, and when interest
rates fall, they tend to increase in price. In general, bonds
with longer maturities pay higher interest rates but are more
volatile than shorter term bonds. When interest rates decline,
the interest income received by the Fund may also decline.
Inverse floaters tend to fluctuate significantly more than other
bonds in response to interest rate changes. Since each Fund
invests primarily in the municipal securities of a particular
state, its performance is affected by local, state and regional
factors. This is called concentration risk. An investment in any
of the Funds is also subject to credit risk. This is the risk
that the issuer of the bonds may not be able to pay interest or
principal when due. The market prices of bonds are affected by
the credit quality of their issuers. While the Funds primarily
invest in municipal bonds that are insured against credit risk,
the insurance does not eliminate this risk because the insurer
may not be financially able to pay claims. In addition, not all
of the securities held by the Funds are insured. Moreover, the
insurance does not apply in any way to the market prices of
securities owned by the Funds, or their share prices, both of
which will fluctuate. Accordingly, the value of your investment
in the Funds will go up and down, which means that you could lose
money.
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AN INVESTMENT IN A FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED
OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENT AGENCY.
Who should consider buying a Single State Insured Tax Free Fund?
A Single State Insured Tax Free Fund may be used by individuals
as a core holding for an investment portfolio or as a base on
which to build a portfolio. It may be appropriate for you if you:
o Are seeking a relatively conservative investment which
provides a high degree of credit quality,
o Are seeking income that is exempt from federal income tax,
including the federal AMT, and from state income tax for
residents of a particular state,
o Are seeking a relatively high level of tax-exempt income and
are willing to assume a moderate degree of market
volatility, and
o Have a long-term investment horizon and are able to ride out
market cycles.
The Single State Insured Tax Free Funds are generally not
appropriate for retirement accounts or investors in low tax
brackets, or corporate or similar business accounts. Different
tax rules apply to corporations and other entities.
How have the Single State Insured Tax Free Funds performed?
The following bar charts and tables show you how each Fund's performance has
varied from year to year and in comparison with a broad-based index. This
information gives you some indication of the risks of investing in the Funds.
Each Fund has two classes of shares, Class A shares and Class B shares. The bar
charts show changes in the performance of each Fund's Class A shares from year
to year over the life of the Fund. The performances of Class B shares differ
from the performances of Class A shares shown in the bar charts only to the
extent that they do not have the same expenses. The bar charts do not reflect
sales charges that you may pay upon purchase or redemption of Fund shares. If
they were included, the returns would be less than those shown.
The tables show how the average annual total returns for Class A shares and
Class B shares of each Single State Insured Tax Free Fund compare to those of
the Lehman Brothers Municipal Bond Index ("Lehman Index"). The tables assume
that the maximum sales charge or CDSC was paid. The Lehman Index is a total
return performance benchmark for the long-term investment grade tax-exempt bond
market. The Lehman Index does not take into account fees and expenses that an
investor would incur in holding the securities in the Lehman Index. If it did
so, the returns would be lower than those shown.
5
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NEW YORK FUND
[BAR CHART SHOWING CLASS A PERFORMANCE OMITTED]
During the periods shown, the highest quarterly return was 6.70% (for the
quarter ended March 31, 1995), and the lowest quarterly return was -5.68% (for
the quarter ended March 31, 1994). THE FUND'S PAST PERFORMANCE DOES NOT
NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
<TABLE>
<CAPTION>
Inception
Class B Shares
1 Year* 5 Years* 10 Years* (1/12/95)
<S> <C> <C> <C> <C>
NEW YORK FUND
Class A Shares (1.01)% 3.80% 6.33% N/A
Class B Shares 0.84 N/A N/A 6.30%
Lehman Index 6.48 6.21 8.21 9.26**
<FN>
* The annual returns are based upon calendar years.
** The average annual total return shown is for the period 1/1/95 to 12/31/98.
</FN>
</TABLE>
6
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CONNECTICUT FUND
[BAR CHART SHOWING CLASS A PERFORMANCE OMITTED]
During the periods shown, the highest quarterly return was 7.41% (for the
quarter ended March 31, 1995), and the lowest quarterly return was -6.33% (for
the quarter ended March 31, 1994). THE FUND'S PAST PERFORMANCE DOES NOT
NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
<TABLE>
<CAPTION>
Inception
Inception Class B Shares
1 Year* 5 Years* Class A Shares (1/12/95)
<S> <C> <C> <C> <C>
CONNECTICUT FUND
Class A Shares+ (0.50)% 4.11% 6.52% N/A
Class B Shares 1.22 N/A N/A 7.10%
Lehman Index 6.48 6.21 8.32++ 9.26**
<FN>
+ Class A shares commenced operations on 10/8/90.
++ The average annual total return shown is for the period 9/30/90 to 12/31/98.
* The annual returns are based upon calendar years.
** The average annual total return shown is for the period 1/1/95 to 12/31/98.
</FN>
</TABLE>
7
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FLORIDA FUND
[BAR CHART SHOWING CLASS A PERFORMANCE OMITTED]
During the periods shown, the highest quarterly return was 7.39% (for the
quarter ended March 31, 1995), and the lowest quarterly return was -5.76% (for
the quarter ended March 31, 1994). THE FUND'S PAST PERFORMANCE DOES NOT
NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
<TABLE>
<CAPTION>
Inception
Inception Class B Shares
1 Year* 5 Years* Class A Shares (1/12/95)
<S> <C> <C> <C> <C>
FLORIDA FUND
Class A Shares+ (0.55)% 4.74% 7.17% N/A
Class B Shares 1.19 N/A N/A 7.62%
Lehman Index 6.48 6.21 8.32++ 9.26**
<FN>
+ Class A shares commenced operations on 10/5/90.
++ The average annual total return shown is for the period 9/30/90 to 12/31/98.
* The annual returns are based upon calendar years.
** The average annual total return shown is for the period 1/1/95 to 12/31/98.
</FN>
</TABLE>
8
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MASSACHUSETTS FUND
[BAR CHART SHOWING CLASS A PERFORMANCE OMITTED]
During the periods shown, the highest quarterly return was 7.34% (for the
quarter ended June 30, 1989), and the lowest quarterly return was -4.80% (for
the quarter ended March 31, 1994). THE FUND'S PAST PERFORMANCE DOES NOT
NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
<TABLE>
<CAPTION>
Inception
Class B Shares
1 Year* 5 Years* 10 Years* (1/12/95)
<S> <C> <C> <C> <C>
MASSACHUSETTS FUND
Class A Shares (1.23)% 4.07% 7.04% N/A
Class B Shares 0.60 N/A N/A 6.69%
Lehman Index 6.48 6.21 8.21 9.26**
<FN>
* The annual returns are based upon calendar years.
** The average annual total return shown is for the period 1/1/95 to 12/31/98.
</FN>
</TABLE>
9
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NEW JERSEY FUND
[BAR CHART SHOWING CLASS A PERFORMANCE OMITTED]
During the periods shown, the highest quarterly return was 8.11% (for the
quarter ended June 30, 1989), and the lowest quarterly return was -5.36% (for
the quarter ended March 31, 1994). THE FUND'S PAST PERFORMANCE DOES NOT
NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
<TABLE>
<CAPTION>
Inception
Class B Shares
1 Year* 5 Years* 10 Years* (1/12/95)
<S> <C> <C> <C> <C>
NEW JERSEY FUND
Class A Shares (0.80)% 3.96% 7.12% N/A
Class B Shares 1.00 N/A N/A 6.00%
Lehman Index 6.48 6.21 8.21 9.26**
<FN>
* The annual returns are based upon calendar years.
** The average annual total return shown is for the period 1/1/95 to 12/31/98.
</FN>
</TABLE>
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What are the fees and expenses of the Single State Insured Tax Free
Funds?
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Funds.
Class A Class B
Shares Shares
------- -------
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases
(as a percentage of offering price).......... 6.25% None
Maximum deferred sales charge (load)
(as a percentage of the lower of purchase
price or redemption price)................... None* 4%**
*A contingent deferred sales charge of 1.00% will be assessed on certain
redemptions of Class A shares that are purchased without a sales charge.
**4% in the first year; declining to 0% after the sixth year. Class B shares
convert to Class A shares after eight years.
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
<TABLE>
<CAPTION>
FEE WAIVERS
DISTRIBUTION TOTAL AND/OR
AND SERVICE ANNUAL FUND EXPENSE
MANAGEMENT (12B-1) OTHER OPERATING ASSUMPTIONS NET
FEES (1) FEES (2) EXPENSES(3) EXPENSES(4) (1), (3) EXPENSES(4)
---------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NEW YORK FUND
Class A Shares 0.75% 0.30% 0.17% 1.22% 0.12% 1.10%
Class B Shares 0.75 1.00 0.17 1.92 0.12 1.80
CONNECTICUT FUND
Class A Shares 0.75% 0.20% 0.23% 1.18% 0.38% 0.80%
Class B Shares 0.75 1.00 0.23 1.98 0.38 1.60
FLORIDA FUND
Class A Shares 0.75% 0.20% 0.18% 1.13% 0.33% 0.80%
Class B Shares 0.75 1.00 0.18 1.93 0.33 1.60
MASSACHUSETTS FUND
Class A Shares 0.75% 0.20% 0.21% 1.16% 0.36% 0.80%
Class B Shares 0.75 1.00 0.21 1.96 0.36 1.60
NEW JERSEY FUND
Class A Shares 0.75% 0.20% 0.17% 1.12% 0.15% 0.97%
Class B Shares 0.75 1.00 0.17 1.92 0.15 1.77
<FN>
(1) For the fiscal year ended December 31, 1998, the Adviser waived Management Fees as follows: in
excess of 0.65% for New York Fund; in excess of 0.50% for Connecticut Fund; in excess of 0.50% for
Florida Fund; in excess of 0.50% for Massachusetts Fund; and in excess of 0.60% for New Jersey
Fund. The Adviser has contractually agreed to waive Management Fees for a period of twelve months
commencing on May 1, 1999 as follows: in excess of 0.63% for New York Insured; in excess of 0.50%
11
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for Connecticut Fund; in excess of 0.50% for Florida Fund; in excess of 0.50% for Massachusetts
Fund; and in excess of 0.60% for New Jersey Fund.
(2) Because each Fund pays Rule 12b-1 fees, long-term shareholders could pay more than the economic
equivalent of the maximum front-end sales charge permitted by the National Association of
Securities Dealers, Inc.
(3) The Adviser has contractually agreed with the Multi-State Insured Tax Free Fund to assume the
Other Expenses of certain of the Funds for a period of twelve months commencing on May 1, 1999 as
follows: in excess of 0.10% for Connecticut Fund; in excess of 0.10% for Florida Fund; and in
excess of 0.10% for Massachusetts Fund.
(4) Each Fund has an expense offset arrangement that may reduce the Fund's custodian fee based on the
amount of cash maintained by the Fund with its custodian. Any such fee reductions are not
reflected under Total Annual Fund Operating Expenses or Net Expenses.
</FN>
</TABLE>
EXAMPLE
This example helps you to compare the costs of investing in a Fund with the cost
of investing in other mutual funds. The example assumes that (1) you invest
$10,000 in a Fund for the time periods indicated; (2) your investment has a 5%
return each year; and (3) a Fund's operating expenses remain the same, except
for year one which is net of fees waived and/or expenses assumed. Although your
actual costs may be higher or lower, under these assumptions your costs would
be:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
If you redeem your shares:
<S> <C> <C> <C> <C>
NEW YORK FUND
Class A shares $730 $977 $1,243 $2,000
Class B shares 583 891 1,226 2,052*
CONNECTICUT FUND
Class A shares $702 $941 $1,199 $1,936
Class B shares 563 885 1,232 2,068*
FLORIDA FUND
Class A shares $702 $931 $1,178 $1,886
Class B shares 563 874 1,211 2,019*
MASSACHUSETTS FUND
Class A shares $702 $937 $1,191 $1,916
Class B shares 563 880 1,224 2,048*
NEW JERSEY FUND
Class A shares $718 $945 $1,190 $1,890
Class B shares 580 889 1,223 2,023*
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If you do not redeem your shares:
NEW YORK FUND
Class A shares $730 $977 $1,243 $2,000
Class B shares 183 591 1,026 2,052*
CONNECTICUT FUND
Class A shares $702 $941 $1,199 $1,936
Class B shares 163 585 1,032 2,068*
FLORIDA FUND
Class A shares $702 $931 $1,178 $1,886
Class B shares 163 574 1,011 2,019*
MASSACHUSETTS FUND
Class A shares $702 $937 $1,191 $1,916
Class B shares 163 580 1,024 2,048*
NEW JERSEY FUND
Class A shares $718 $945 $1,190 $1,890
Class B shares 180 589 1,023 2,023*
<FN>
*Assumes conversion to Class A shares eight years after purchase.
</FN>
</TABLE>
THE SINGLE STATE INSURED TAX FREE FUNDS IN DETAIL
What are the Single State Insured Tax Free Funds' objectives, principal
investment strategies, and risks?
OBJECTIVES: Each of the Single State Insured Tax Free Funds seeks a high level
of interest income that is exempt from both federal and state income tax for
individual residents of a particular state. Each Fund also seeks income that is
not a tax preference item for purposes of the AMT.
PRINCIPAL INVESTMENT STRATEGIES: Each Fund invests at least 80% of its total
assets in municipal bonds and other types of municipal securities ("Municipal
Securities") that pay interest that is exempt from federal income tax, including
the AMT. Municipal Securities include private activity bonds, industrial
development bonds, certificates of participation, municipal notes, municipal
commercial paper, variable rate demand notes, and floating rate demand notes.
Municipal Securities are issued by state and local governments, their agencies
and authorities, the District of Columbia and any commonwealths, territories or
possessions of the United States (including Guam, Puerto Rico and the U.S.
Virgin Islands) or their respective agencies, instrumentalities and authorities.
Each Fund concentrates its assets in municipal bonds and securities of a
particular state in order to produce income that is exempt from any applicable
state income tax for residents of the state. At least 65% of each Fund's assets
will be invested in municipal bonds and securities of a single state. For
example, the New York Fund will invest at least 65% of its assets in New York
bonds, the Connecticut Fund will invest at least 65% of its assets in
Connecticut bonds, and so on. Each Fund may also invest in municipal securities
that are issued by U.S. commonwealths, possessions, or territories such as
Puerto Rico if the interest produced is exempt from state income taxes for
residents of the particular state. In certain cases, the interest paid by a Fund
may also be exempt from local taxes. For example, for resident shareholders of
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New York, any interest paid by the New York Fund would also be exempt from New
York City tax. There is no state income tax in Florida. However, the Florida
Fund is managed so that investments in the Florida Fund will not be subject to
the Florida intangible personal property tax.
All municipal bonds in which the Funds invest are insured as to the timely
payment of interest and principal by independent insurance companies which are
rated in the top rating category by a nationally recognized rating organization,
such as Moody's, Standard & Poor's Ratings Group and Fitch IBCA. The Funds may
purchase bonds and other municipal securities which have already been insured by
the issuer, underwriter, or some other party or it may purchase uninsured bonds
and insure them under a policy purchased by the Funds. While every municipal
bond purchased by the Funds must be insured, the Funds are allowed to invest up
to 35% of their assets in securities that are not insured. (In other words, at
least 65% of each Fund's assets must be insured.) In general, the non-insured
securities held by the Funds are limited to municipal commercial paper and other
short-term investments. In any event, as described below, the insurance does not
guarantee the market values of the bonds held by the Funds or the Funds' share
price.
The Funds follow the strategy of investing in long term municipal bonds, which
are generally more volatile in price but offer more yield than short or
intermediate term bonds. The Funds generally purchase bonds with maturities of
fifteen years or more. The Funds adjust the duration of their portfolios based
upon their outlook on interest rates. Duration is a measurement of a bond's
sensitivity to changes in interest rates that takes into consideration not only
the maturity of the bond but also the time value of money that will be received
from the bond over its life. The Funds will generally adjust the duration of
their portfolios by buying or selling municipal securities, including zero
coupon bonds. For example, if the Funds believe that interest rates are likely
to rise, they will generally attempt to reduce their durations by purchasing
municipal securities with shorter maturities or selling municipal securities
with longer maturities.
New York Fund invests in variable rate and floating rate municipal notes,
including "inverse floaters." These securities pay interest which adjusts at
specific intervals or when a benchmark rate changes. Inverse floaters are
floating rate securities whose rates of interest move inversely to a floating
rate benchmark. The rates on inverse floaters typically fall as short-term
market interest rates rise and rise as short-term rates fall. The Fund benefits
from its investments in inverse floaters by receiving a higher rate of interest
than it does on other comparable bonds. However, inverse floaters tend to
fluctuate more than other bonds in response to interest rate changes and
therefore cause the Fund's share price to be subject to greater volatility. The
Fund will not invest more than 10% of its assets in inverse floaters.
In selecting investments, the Funds consider maturity, coupon and yield,
relative value of an issue, the credit quality of the issuer, the cost of
insurance and the outlook for interest rates and the economy. While the Funds do
not intend to buy any instruments whose interest income is subject to Federal
income tax or is a tax preference item, up to 20% of each Fund's net assets may
be invested in securities, the interest on which is subject to Federal income
tax, including the AMT. The Funds will usually sell investments when there are
changes in the interest rate environment that are adverse to the investments or
they fall short of the portfolio manager's expectations. The Funds will not
necessarily sell investments if their ratings are reduced or there is a default
by the issuer. Information on the Funds' recent strategies and holdings can be
found in the most recent annual report (see back cover).
PRINCIPAL RISKS: Any investment carries with it some level of risk. In general,
the greater the potential reward of an investment, the greater the risk. Here
are the principal risks of owning the Single State Insured Tax Free Funds:
INTEREST RATE RISK: The market value of municipal securities is affected by
changes in interest rates. When interest rates rise, the market values of
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<PAGE>
municipal securities decline; when interest rates decline, the market values of
municipal securities increase. The price volatility of municipal securities also
depends on their maturities and durations. Generally, the longer the maturity
and duration of a municipal security, the greater its sensitivity to interest
rates. To compensate investors for this higher risk, municipal securities with
longer maturities and durations generally offer higher yields than municipal
securities with shorter maturities and durations.
Interest rate risk also includes the risk that the yields received by the Funds
on some of their investments will decline as interest rates decline. The Funds
buy investments with fixed maturities as well as investments that give the
issuer the option to "call" or redeem these investments before their maturity
dates. If investments mature or are "called" during a time of declining interest
rates, the Funds will have to reinvest the proceeds in investments offering
lower yields. The Funds also invest in floating rate and variable rate demand
notes. When interest rates decline, the rates paid on these securities may
decline.
CONCENTRATION RISK: Since each Fund invests primarily in the municipal
securities of a particular state, each Fund is more vulnerable than more
geographically diversified funds to events in a particular state that could
impair investor confidence in municipal securities issued within the state. Such
events could include, but are not limited to, economic or demographic factors
that may cause a decrease in tax or other revenues for a state or its
municipalities, state legislative changes (especially those changes regarding
taxes), state constitutional limits on tax increases, judicial decisions
declaring particular municipal securities to be unconstitutional or void, budget
deficits and financial difficulties such as the 1994 bankruptcy of Orange
County.
CREDIT RISK: This is the risk that an issuer of bonds will be unable to pay
interest or principal when due. Although all of the municipal bonds purchased by
the Funds are insured as to scheduled payments of interest and principal, the
insurance does not eliminate credit risk because the insurer may not be
financially able to pay interest and principal on the bonds and up to 35% of
each Fund's assets may be invested in securities that are not insured. It is
also important to note that, although insurance may increase the credit safety
of an investment, it decreases yield as insurance must be paid for directly or
indirectly. It is also important to emphasize that the insurance does not
protect against fluctuations in the market value of the municipal bonds owned by
the Funds, or the share price of the Funds.
MARKET RISK: The Funds are subject to market risk. Bond prices in general may
decline over short or even extended periods primarily due to changes in interest
rates and the credit conditions of the issuers. This is another way of
describing interest rate risk and credit risk. However, market prices also
fluctuate with the forces of supply and demand. Municipal bonds may decline in
value even if the overall market is doing well. Accordingly, the value of your
investment in the Funds will go up and down, which means that you could lose
money.
DERIVATIVE SECURITIES RISK: Because the New York Fund invests in inverse
floaters which are a form of derivative securities, it is subject to a greater
degree of interest rate risk than funds which do not invest in these securities.
Inverse floaters tend to fluctuate significantly more than other bonds as the
result of interest rate changes.
YEAR 2000 RISKS: The values of securities owned by the Funds may be negatively
affected by Year 2000 problems. Many computer systems are not designed to
process correctly date-related information after January 1, 2000. The issuers of
securities held by the Funds may incur substantial costs in ensuring that
computer systems on which they rely are Year 2000 ready and may face business
and legal problems if these systems are not ready. If computer systems used by
exchanges, broker-dealers, and other market participants are not Year 2000
ready, valuing and trading securities could be difficult. These problems could
have a negative effect on the Funds' investments and returns.
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<PAGE>
FUND MANAGEMENT
First Investors Management Company, Inc. ("FIMCO" or "Adviser") is the
investment adviser to each Fund. Its address is 95 Wall Street, New York, NY
10005. It currently is investment adviser to 51 mutual funds or series of funds
with total net assets of approximately $5 billion. FIMCO supervises all aspects
of the Funds' operations and determines the Funds' portfolio transactions. For
the fiscal year ended December 31, 1998, FIMCO received advisory fees as
follows: 0.65% of average daily net assets, net of waiver, for New York Fund;
0.50% of average daily net assets, net of waiver, for Connecticut Fund; 0.50% of
average daily net assets, net of waiver, for Florida Fund; 0.50% of average
daily net assets, net of waiver, for Massachusetts Fund; and 0.60% of average
daily net assets, net of waiver, for New Jersey Fund.
Clark D. Wagner serves as Portfolio Manager of the Funds. Mr. Wagner also serves
as Portfolio Manager of certain other First Investors Funds. Mr. Wagner has been
Chief Investment Officer of FIMCO since 1992.
In addition to the investment risks of the Year 2000 which are disclosed above,
the ability of FIMCO and its affiliates to price the Funds' shares, process
purchase and redemption orders, and render other services could be adversely
affected if the computers or other systems on which they rely are not properly
programmed to operate after January 1, 2000. Additionally, because the services
provided by FIMCO and its affiliates depend on the interaction of their computer
systems with the computer systems of brokers, information services and other
parties, any failure on the part of such third party computer systems to deal
with the Year 2000 may have a negative effect on the services provided to the
Funds. FIMCO and its affiliates are taking steps that they believe are
reasonably designed to address the Year 2000 problem for computer and other
systems used by them and are obtaining assurances that comparable steps are
being taken by the Funds' other service providers. However, there can be no
assurance that these steps will be sufficient to avoid any adverse impact on the
Funds. Nor can the Funds estimate the extent of any impact.
BUYING AND SELLING SHARES
How and when do the Funds price their shares?
The share price (which is called "net asset value" or "NAV" per share) for each
Fund is calculated once each day as of 4 p.m., Eastern Time ("ET"), on each day
the New York Stock Exchange ("NYSE") is open for regular trading. In the event
that the NYSE closes early, the share price will be determined as of the time of
the closing.
To calculate the NAV, each Fund's assets are valued and totaled, liabilities are
subtracted, and the balance, called net assets, is divided by the number of
shares outstanding. The prices or NAVs of Class A shares and Class B shares will
generally differ because they have different expenses.
In valuing its assets, each Fund uses the market value of securities for which
market quotations or last sale prices are readily available. If there are no
readily available quotations or last sale prices for an investment or the
available quotations are considered to be unreliable, the securities will be
valued at their fair value as determined in good faith pursuant to procedures
adopted by the Board of Directors of the Funds.
How do I buy shares?
You may buy shares of each Fund through a First Investors registered
representative or through a registered representative of an authorized
broker-dealer ("Representative"). Your Representative will help you complete and
submit an application. Your initial investment must be at least $1,000. However,
16
<PAGE>
we offer automatic investment plans that allow you to open a Fund account with
as little as $50. You also may open certain retirement plan accounts with as
little as $500 even without an automatic investment plan. Subsequent investments
may be made in any amount.
If we receive your application or order in our Woodbridge, NJ offices in correct
form, as described in the Shareholder Manual, prior to the close of regular
trading on the NYSE, your transaction will be priced at that day's NAV. If you
place your order with your Representative prior to the close of regular trading
on the NYSE, your transaction will also be priced at that day's NAV provided
that your Representative transmits the order to our Woodbridge, NJ office by 5
p.m., ET. Orders placed after the close of regular trading on the NYSE will be
priced at the next business day's NAV. The procedures for processing
transactions are explained in more detail in our Shareholder Manual which is
available upon request.
You can arrange to make systematic investments electronically from your bank
account or through payroll deduction. All the various ways you can buy shares
are explained in the Shareholder Manual. For further information on the
procedures for buying shares, please contact your Representative or call
Shareholder Services at 1-800-423-4026.
Each Fund reserves the right to refuse any order to buy shares if the Fund
determines that doing so would be in the best interests of the Fund and its
shareholders.
Which class of shares is best for me?
Each Fund has two classes of shares, Class A and Class B. While each class
invests in the same portfolio of securities, the classes have separate sales
charge and expense structures. Because of the different expense structures, each
class of shares generally will have different NAVs and dividends.
The principal advantages of Class A shares are the lower overall expenses, the
availability of quantity discounts on volume purchases and certain account
privileges that are available only on Class A shares. The principal advantage of
Class B shares is that all of your money is put to work from the outset.
Class A shares of a Fund are sold at the public offering price which includes a
front-end sales load. The sales charge declines with the size of your purchase,
as illustrated below.
Class A Shares
Your investment Sales Charge as a percentage of
-------------------------------
offering price net amount invested
Less than $25,000 6.25% 6.67%
$25,000-$49,999 5.75 6.10
$50,000-$99,999 5.50 5.82
$100,000-$249,999 4.50 4.71
$250,000-$499,999 3.50 3.63
$500,000-$999,999 2.50 2.56
$1,000,000 or more 0* 0*
*If you invest $1,000,000 or more in Class A shares, you will not pay a
front-end sales charge. However, if you make such an investment and then sell
your shares within 24 months of purchase, you will pay a contingent deferred
sales charge ("CDSC") of 1.00%.
17
<PAGE>
Class B shares are sold at net asset value, without any initial sales charge.
However, you may pay a CDSC when you sell your shares. The CDSC declines the
longer you hold your shares, as illustrated below. Class B shares convert to
Class A shares after eight years.
<TABLE>
<CAPTION>
Class B Shares
Year of Redemption CDSC as a Percentage of Purchase
------------------ Price or NAV at Redemption
--------------------
<S> <C>
Within the 1st or 2nd year.................... 4%
Within the 3rd or 4th year.................... 3
In the 5th year............................... 2
In the 6th year............................... 1
Within the 7th year and 8th year.............. 0
</TABLE>
There is no CDSC on Class B shares which are acquired through reinvestment of
dividends or distributions. The CDSC is imposed on the lower of the original
purchase price or the net asset value of the shares being sold. For purposes of
determining the CDSC, all purchases made during a calendar month are counted as
having been made on the first day of that month at the average cost of all
purchases made during that month.
To keep your CDSC as low as possible, each time you place a request to sell
shares, we will first sell any shares in your account that carry no CDSC. If
there is an insufficient number of these shares to meet your request in full, we
will then sell those shares that have the lowest CDSC.
Sales charges and CDSCs may be reduced or waived under certain circumstances and
for certain groups. Consult your Representative or call us directly at
1-800-423-4026 for details.
Each Fund has adopted a plan pursuant to Rule 12b-1 that allows the Fund to pay
distribution fees for the sale and distribution of its shares. Each class of
shares pays Rule 12b-1 fees for the marketing of fund shares and for services
provided to shareholders. The plans provide for payments at annual rates (based
on average daily net assets) of up to .30% on Class A shares and 1.00% on Class
B shares. No more than .25% of these payments may be for service fees. These
fees are paid monthly in arrears. Because these fees are paid out of a Fund's
assets on an on-going basis, over time these fees will increase the cost of your
investment and may cost you more than paying other types of sales charges.
FOR ACTUAL PAST EXPENSES OF CLASS A AND CLASS B SHARES OF A FUND, SEE THE
APPROPRIATE SECTION IN THIS PROSPECTUS ENTITLED "WHAT ARE THE FEES AND EXPENSES
OF THE FUND?"
Because of the lower overall expenses on Class A shares, we recommend Class A
shares for purchases in excess of $250,000. If you are investing in excess of
$1,000,000, we will only sell Class A shares to you. For purchases below
$250,000, the class that is best for you generally depends upon the amount you
invest, your time horizon, and your preference for paying the sales charge
initially or later. If you fail to tell us what Class of shares you want, we
will purchase Class A shares for you.
18
<PAGE>
How do I sell shares?
You may redeem your Fund shares on any day a Fund is open for business by:
o Contacting your Representative who will place a redemption order for
you;
o Sending a written redemption request to Administrative Data Management
Corp., ("ADM") at 581 Main Street, Woodbridge, NJ 07095-1198;
o Telephoning the Special Services Department of ADM at 1-800-342-6221
(if you have elected to have telephone privileges); or
o Instructing us to make an electronic transfer to a predesignated bank
account (if you have completed an application authorizing such
transfers).
Your redemption request will be processed at the price next computed after we
receive the request in good order, as described in the Shareholder Manual. For
all requests, have your account number available.
Payment of redemption proceeds generally will be made within 7 days. If you are
redeeming shares which you recently purchased by check, payment may be delayed
to verify that your check has cleared. This may take up to 15 days from the date
of your purchase. You may not redeem shares by telephone or Electronic Fund
Transfer unless you have owned the shares for at least 15 days.
If your account falls below the minimum account balance for any reason other
than market fluctuation, each Fund reserves the right to redeem your account
without your consent or to impose a low balance account fee of $15 annually on
60 days prior notice. Each Fund may also redeem your account or impose a low
balance account fee if you have established your account under a systematic
investment program and discontinue the program before you meet the minimum
account balance. You may avoid redemption or imposition of a fee by purchasing
additional Fund shares during this 60-day period to bring your account balance
to the required minimum. If you own Class B shares, you will not be charged a
CDSC on a low balance redemption.
Each Fund reserves the right to make in-kind redemptions. This means that it
could respond to a redemption request by distributing shares of the Fund's
underlying investments rather than distributing cash.
Can I exchange my shares for the shares of other First Investors Funds?
You may exchange shares of a Fund for shares of other First Investors Funds
without paying any additional sales charge. You can only exchange within the
same class of shares (i.e., Class A to Class A). Consult your Representative or
call ADM at 1-800-423-4026 for details.
Each Fund reserves the right to reject any exchange request that appears to be
part of a market timing strategy based upon the holding period of the initial
investment, the amount of the investment being exchanged, the Funds involved,
and the background of the shareholder or dealer involved. Each Fund is designed
for long-term investment purposes. It is not intended to provide a vehicle for
short-term market timing.
19
<PAGE>
ACCOUNT POLICIES
What about dividends and capital gain distributions?
To the extent that it has net investment income, a Fund will declare on a daily
basis and pay, on a monthly basis, dividends from net investment income. Any net
realized capital gains will be declared and distributed on an annual basis,
usually after the end of a Fund's fiscal year. A Fund may make an additional
distribution in any year if necessary to avoid a Federal excise tax on certain
undistributed income and capital gain.
Dividends and other distributions paid on both classes of a Fund's shares are
calculated at the same time and in the same manner. Dividends on Class B shares
of a Fund are expected to be lower than those for its Class A shares because of
the higher distribution fees borne by the Class B shares. Dividends on each
class also might be affected differently by the allocation of other
class-specific expenses. In order to be eligible to receive a dividend or other
distribution, you must own Fund shares as of the close of business on the record
date of the distribution.
You may choose to reinvest all dividends and other distributions at NAV in
additional shares of the same class of a Fund or certain other First Investors
Funds, or receive all dividends and other distributions in cash. If you do not
select an option when you open your account, all dividends and other
distributions will be reinvested in additional shares of a Fund. If you do not
cash a distribution check and do not notify ADM to issue a new check within 12
months, the distribution may be reinvested in a Fund. If any correspondence sent
by a Fund is returned as "undeliverable," dividends and other distributions
automatically will be reinvested in a Fund. No interest will be paid to you
while a distribution remains uninvested.
A dividend or other distribution paid on a class of shares will only be paid in
additional shares of the distributing class if the total amount of the
distribution is under $5 or a Fund has received notice of your death (until
written alternate payment instructions and other necessary documents are
provided by your legal representative).
What about taxes?
For individual shareholders, any income dividends paid by a Fund should
generally be exempt from federal income taxes, including the AMT. Dividends, if
any, paid by the Single State Insured Tax Free Funds should also be exempt from
state income taxes, if any, for individual resident shareholders of a particular
Fund's state and in certain cases, exempt from local taxes. For Florida
residents, investments in the Florida Fund should be exempt from the Florida
intangible personal property tax. Long-term capital gain distributions by a Fund
are taxed to you as long-term capital gains, regardless of how long you owned
your Fund shares. Short-term capital gains by a Fund are taxed to you as
ordinary income. You are taxed in the same manner whether you receive your
capital gain distributions in cash or reinvest them in additional Fund shares.
Your sale or exchange of Fund shares may be considered a taxable event for you.
Depending on the purchase price and the sale price of the shares you sell or
exchange, you may have a gain or a loss on the transaction. You are responsible
for any tax liabilities generated by your transactions.
How do I obtain a complete explanation of all account privileges and policies?
The Funds offer a full range of special privileges, including special investment
programs for group retirement plans, systematic investment programs, automatic
payroll investment programs, telephone privileges, check writing privileges, and
expedited redemptions by wire order or Automated Clearing House transfer. The
full range of privileges, and related policies, are described in a special
Shareholder Manual, which you may obtain on request. For more information on the
full range of services available, please contact us directly at 1-800-423-4026.
20
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand the
financial performance of each Fund for the past five years. Certain information
reflects financial results for a single Fund share. The total returns in the
tables represent the rates that an investor would have earned (or lost) on an
investment in each Fund (assuming reinvestment of all dividends and
distributions). The information has been audited by Tait, Weller & Baker, whose
report, along with the Funds' financial statements, are included in the SAI,
which is available upon request.
<TABLE>
- -----------------------------------------------------------------------------------------------------
PER SHARE DATA
------------------------------------------------------------------------
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS FROM
---------------------------------------- -----------------------
ASSET NET REALIZED NET
VALUE NET AND UNREALIZED TOTAL FROM INVEST- NET TOTAL
----- INVESTMENT GAIN (LOSS) ON INVESTMENT MENT REALIZED DISTRI-
BEGINNING OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN BUTIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NEW YORK FUND
CLASS A
1/1/94 - 12/31/94......... $15.18 $.758 $(1.510) $(.752) $.768 $-- $.768
1/1/95 - 12/31/95......... 13.66 .738 1.331 2.069 .740 .059 .799
1/1/96 - 12/31/96......... 14.93 .719 (.298) .421 .720 .091 .811
1/1/97 - 12/31/97......... 14.54 .709 .395 1.104 .708 .076 .784
1/1/98 - 12/31/98......... 14.86 .674 .137 .811 .676 .145 .821
CLASS B
1/12/95* - 12/31/95....... 13.76 .616 1.232 1.848 .619 .059 .678
1/1/96 - 12/31/96......... 14.93 .617 (.306) .311 .620 .091 .711
1/1/97 - 12/31/97......... 14.53 .608 .406 1.014 .608 .076 .684
1/1/98 - 12/31/98......... 14.86 .569 .134 .703 .568 .145 .713
<FN>
* Date Class B shares were first offered.
** Calculated without sales charge.
+ Annualized.
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent.
</FN>
</TABLE>
21
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RATIO TO AVERAGE NET ASSETS
RATIO TO AVERAGE BEFORE EXPENSES WAIVED OR
NET ASSETS ++ ASSUMED
----------------------- ---------------------------------------
NET ASSET NET NET PORTFOLIO
VALUE TOTAL RETURN NET ASSETS INVESTMENT INVESTMENT TURNOVER
---------- ** (%) END OF PERIOD EXPENSES INCOME EXPENSES INCOME RATE
END OF PERIOD (IN THOUSANDS) (%) (%) (%) (%) (%)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$13.66 (5.03) $193,916 1.28 5.30 N/A N/A 55
14.93 15.45 215,259 1.23 5.10 N/A N/A 53
14.54 2.95 203,496 1.23 4.93 N/A N/A 53
14.86 7.82 195,273 1.17 4.86 1.22 4.81 24
14.85 5.59 187,544 1.12 4.54 1.22 4.44 44
14.93 13.66 1,156 2.00+ 4.34+ N/A N/A 53
14.53 2.18 2,242 1.93 4.23 N/A N/A 53
14.86 7.16 3,602 1.87 4.16 1.92 4.11 24
14.85 4.84 5,271 1.82 3.84 1.92 3.74 44
</TABLE>
22
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------------
PER SHARE DATA
------------------------------------------------------------------------
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS FROM
--------------------------------- -----------------------
ASSET NET REALIZED NET
VALUE NET AND UNREALIZED TOTAL FROM INVEST- NET TOTAL
----- INVESTMENT GAIN (LOSS) ON INVESTMENT MENT REALIZED DISTRI-
BEGINNING OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN BUTIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CONNECTICUT FUND
CLASS A
1/1/94 - 12/31/94......... $13.05 $.609 $(1.480) $(.871) $.609 $-- $.609
1/1/95 - 12/31/95......... 11.57 .617 1.333 1.950 .620 -- .620
1/1/96 - 12/31/96......... 12.90 .619 (.202) .417 .617 -- .617
1/1/97 - 12/31/97......... 12.70 .613 .471 1.084 .614 -- .614
1/1/98 - 12/31/98......... 13.17 .607 .186 .793 .603 -- .603
CLASS B
1/12/95* - 12/31/95....... 11.67 .512 1.242 1.754 .524 -- .524
1/1/96 -12/31/96.......... 12.90 .522 (.204) .318 .518 -- .518
1/1/97 - 12/31/97......... 12.70 .516 .470 .986 .516 -- .516
1/1/98 - 12/31/98......... 13.17 .500 .176 .676 .496 -- .496
FLORIDA FUND
CLASS A
1/1/94 - 12/31/94......... $13.14 $.642 $(1.346) $(.704) $.646 $-- $.646
1/1/95 - 12/31/95......... 11.79 .640 1.527 2.167 .647 -- .647
1/1/96 - 12/31/96......... 13.31 .623 (.198) .425 .625 -- .625
1/1/97 - 12/31/97......... 13.11 .624 .547 1.171 .624 .037 .661
1/1/98 - 12/31/98......... 13.62 .616 .195 .811 .613 .068 .681
CLASS B
1/12/95* - 12/31/95....... 11.87 .529 1.460 1.989 .549 -- .549
1/1/96 -12/31/96.......... 13.31 .530 (.204) .326 .526 -- .526
1/1/97 - 12/31/97......... 13.11 .531 .552 1.083 .526 .037 .563
1/1/98 -12/31/98.......... 13.63 .507 .186 .693 .505 .068 .573
<FN>
* Date Class B shares were first offered.
** Calculated without sales charge.
+ Annualized.
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent.
</FN>
</TABLE>
23
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RATIO TO AVERAGE NET ASSETS
RATIO TO AVERAGE BEFORE EXPENSES WAIVED OR
NET ASSETS ++ ASSUMED
---------------- ---------------------------
NET ASSET NET NET PORTFOLIO
VALUE TOTAL RETURN NET ASSETS INVESTMENT INVESTMENT TURNOVER
----- ** (%) END OF PERIOD EXPENSES INCOME EXPENSES INCOME RATE
END OF PERIOD (IN THOUSANDS) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
$11.57 (6.75) $14,848 .87 5.01 1.22 4.66 63
12.90 17.18 16,725 .85 4.98 1.20 4.63 26
12.70 3.37 15,203 .81 4.92 1.23 4.50 15
13.17 8.77 16,151 .80 4.78 1.17 4.41 14
13.36 6.15 17,434 .80 4.58 1.16 4.22 25
12.90 15.28 857 1.71+ 4.12+ 2.07+ 3.76+ 26
12.70 2.57 1,505 1.61 4.12 2.02 3.71 15
13.17 7.95 2,891 1.60 3.98 1.97 3.61 14
13.35 5.22 3,484 1.60 3.78 1.96 3.42 25
$11.79 (5.39) $19,765 .62 5.24 1.19 4.67 98
13.31 18.77 22,229 .75 5.05 1.15 4.65 68
13.11 3.34 23,299 .83 4.80 1.16 4.47 55
13.62 9.18 23,840 .80 4.71 1.11 4.40 19
13.75 6.09 25,873 .80 4.50 1.10 4.20 44
13.31 17.06 299 1.68+ 4.12+ 2.09+ 3.70+ 68
13.11 2.56 549 1.62 4.01 1.95 3.68 55
13.63 8.38 837 1.60 3.91 1.91 3.60 19
13.75 5.19 858 1.60 3.70 1.90 3.40 44
</TABLE>
24
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------------
PER SHARE DATA
------------------------------------------------------------------------
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS FROM
---------------------------------------- -----------------------
ASSET NET REALIZED NET
VALUE NET AND UNREALIZED TOTAL FROM INVEST- NET TOTAL
----- INVESTMENT GAIN (LOSS) ON INVESTMENT MENT REALIZED DISTRI-
BEGINNING OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN BUTIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MASSACHUSETTS FUND
CLASS A
1/1/94 - 12/31/94......... $12.28 $.627 $(1.267) $(.640) $.630 $-- $.630
1/1/95 - 12/31/95......... 11.01 .612 1.227 1.839 .613 .016 .629
1/1/96 - 12/31/96......... 12.22 .603 (.256) .347 .602 .045 .647
1/1/97 - 12/31/97......... 11.92 .601 .356 .957 .603 .074 .677
1/1/98 - 12/31/98......... 12.20 .586 .049 .635 .578 .237 .815
CLASS B
1/12/95* - 12/31/95....... 11.09 .508 1.155 1.663 .527 .016 .543
1/1/96 -12/31/96.......... 12.21 .514 (.263) .251 .506 .045 .551
1/1/97 - 12/31/97......... 11.91 .508 .353 .861 .507 .074 .581
1/1/98 -12/31/98.......... 12.19 .488 .061 .549 .482 .237 .719
NEW JERSEY FUND
CLASS A
1/1/94 - 12/31/94......... $13.51 $.659 $(1.448) $(.789) $.661 $-- $.661
1/1/95 - 12/31/95......... 12.06 .648 1.291 1.939 .652 .097 .749
1/1/96 - 12/31/96......... 13.25 .636 (.245) .391 .636 .015 .651
1/1/97 - 12/31/97......... 12.99 .630 .427 1.057 .629 .118 .747
1/1/98 - 12/31/98......... 13.30 .606 .153 .759 .607 .142 .749
CLASS B
1/12/95* - 12/31/95....... 12.14 .526 1.199 1.725 .528 .097 .625
1/1/96 -12/31/96.......... 13.24 .533 (.253) .280 .535 .015 .550
1/1/97 - 12/31/97......... 12.97 .525 .433 .958 .530 .118 .648
1/1/98 -12/31/98.......... 13.28 .498 .153 .651 .499 .142 .641
<FN>
* Date Class B shares were first offered.
** Calculated without sales charge.
+ Annualized.
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent.
</FN>
</TABLE>
25
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RATIO TO AVERAGE NET ASSETS
RATIO TO AVERAGE BEFORE EXPENSES WAIVED OR
NET ASSETS ++ ASSUMED
---------------- ---------------------------
NET ASSET NET NET PORTFOLIO
VALUE TOTAL RETURN NET ASSETS INVESTMENT INVESTMENT TURNOVER
----- ** (%) END OF PERIOD EXPENSES INCOME EXPENSES INCOME RATE
END OF PERIOD (IN THOUSANDS) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
$11.01 (5.30) $20,838 .95 5.45 1.20 5.20 64
12.22 17.07 23,180 .90 5.22 1.15 4.97 40
11.92 2.99 22,543 .86 5.08 1.18 4.76 45
12.20 8.27 22,852 .80 5.01 1.15 4.66 28
12.02 5.33 22,421 .80 4.82 1.15 4.47 49
12.21 15.28 314 1.76+ 4.36+ 2.01+ 4.10+ 40
11.91 2.16 519 1.66 4.28 1.98 3.96 45
12.19 7.41 783 1.60 4.21 1.95 3.86 28
12.02 4.60 1,426 1.60 4.02 1.95 3.67 49
$12.06 (5.91) $55,379 .99 5.21 1.14 5.06 60
13.25 16.41 59,153 .99 5.06 1.14 4.91 30
12.99 3.09 58,823 .98 4.92 1.13 4.77 35
13.30 8.36 59,243 .96 4.81 1.11 4.66 22
13.31 5.84 60,585 .97 4.53 1.11 4.39 27
13.24 14.45 957 1.81+ 4.24+ 1.97+ 4.08+ 30
12.97 2.22 1,603 1.78 4.12 1.93 3.97 35
13.28 7.56 2,011 1.76 4.01 1.91 3.86 22
13.29 5.00 2,562 1.77 3.73 1.91 3.59 27
</TABLE>
26
<PAGE>
[FIRST INVESTORS LOGO]
NEW YORK INSURED TAX FREE FUND
MULTI-STATE INSURED TAX FREE FUND
CONNECTICUT FUND
FLORIDA FUND
MASSACHUSETTS FUND
NEW JERSEY FUND
For investors who want more information about the Funds, the following documents
are available free upon request:
ANNUAL/SEMI-ANNUAL REPORTS: Additional information about each Fund's investments
is available in the Funds' annual and semi-annual reports to shareholders. In
the Funds' annual report, you will find a discussion of the market conditions
and investment strategies that significantly affected each Fund's performance
during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI): The SAI provides more detailed
information about the Funds and is incorporated by reference into this
prospectus.
SHAREHOLDER MANUAL: The Shareholder Manual provides more detailed information
about the purchase, redemption and sale of the Funds' shares.
You can get free copies of reports, the SAI and the Shareholder Manual, request
other information and discuss your questions about the Funds by contacting the
Funds at:
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Telephone: 1-800-423-4026
You can review and copy information about the Funds (including the Funds'
reports, Shareholder Manual and SAI) at the Public Reference Room of the
Securities and Exchange Commission ("SEC") in Washington, D.C. You can also send
your request for copies and a duplicating fee to the Public Reference Room of
the SEC, Washington, D.C. 20549-6009. You can obtain information on the
operation of the Public Reference Room by calling 1-800-SEC-0330. Text-only
versions of Fund documents can be viewed online or downloaded from the SEC's
Internet website at http://www.sec.gov.
(Investment Company Act File No.: First
Investors New York Insured Tax Free Fund,
Inc. 811-3843; First Investors Multi-State
Insured Tax Free Fund 811-4623)
