Portfolio Manager's Letter
FIRST INVESTORS GOVERNMENT FUND, INC.
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
During 1995 First Investors Government Fund returned 15.0% on a net
asset value basis on Class A shares and 13.9% on Class B shares (first
offered for sale on January 12, 1995). The large decline in long-term
interest rates during 1995 provided investors with substantial capital
appreciation in addition to dividends from net investment income of 72
cents per Class A share and 64.1 cents per Class B share.
At the beginning of 1995, the Fund was positioned for an increase in
interest rates. Instead, slowing economic growth and declining inflation
expectations caused yields to decline. The Fund's high coupon mortgage-
backed bonds underperformed Treasury bonds as homeowners refinanced --
or prepaid -- outstanding mortgages. As the bond market's rally
continued, the Fund shifted assets from relatively high coupon GNMA
mortgage-backed bonds to lower coupon GNMA mortgage-backed bonds as well
as Treasury securities. By mid-year, the Fund's mortgage-backed
investments had been reduced from 83% of assets to 65% while Treasury
bond holdings had increased from 17% to 35%. In addition, the Fund
shifted its Treasury holdings from short-term bills to notes with an
average maturity of approximately nine years. This strategy decreased
the Fund's exposure to prepayment risk and increased its average
maturity which enabled it to more fully participate in the bond
market's rally during the second half of the year.
As 1995 ended, the bond market appeared to be entering a period of
consolidation. After underperforming Treasuries throughout the year,
current coupon mortgage-backed bonds appeared attractive, offering as
much as 125 basis points (1.25%) more yield than comparable Treasury
notes. Thus, the Fund began to reallocate assets from the Treasury
sector back to mortgage-backed bonds. At year-end, the Government Fund
held 82% of its assets in GNMA mortgage-backed bonds, 17% in 10 year
Treasury notes, and 1% in cash or cash equivalents.
Looking forward, the outlook for the bond market over the next six
months appears positive. Economic growth is slowing from already
moderate levels, inflationary pressures are not apparent, and Congress
and the President may yet agree to balance the Federal budget. Against
this backdrop, the Federal Reserve is likely to continue to lower short-
term interest rates which should prolong the bond market's rally.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
Clark D. Wagner
Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS GOVERNMENT FUND, INC.
Comparison of change in value of $10,000 investment in the First
Investors Government Fund, Inc. (Class A shares) and the Salomon
Brothers Mortgage Index and the Salomon Brothers Government Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this
chart]
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.
FIRST INVESTORS SALOMON SALOMON
GOVERNMENT MORTGAGE GOVERNMENT
JAN 1986 $ 9,375 $10,000 $10,000
DEC 1986 10,458 11,344 11,574
DEC 1987 10,404 11,805 11,799
DEC 1988 11,247 12,843 12,632
DEC 1989 12,622 14,790 14,448
DEC 1990 13,793 16,401 15,693
DEC 1991 15,911 18,968 18,093
DEC 1992 16,907 20,366 19,396
DEC 1993 17,581 21,800 21,467
DEC 1994 17,014 21,488 20,744
DEC 1995 19,563 25,091 24,560
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
Class A shares
One Year 15.0% 7.8%
Five Years 7.2% 5.9%
Ten Years 7.6% 6.9%
S.E.C. 30-Day Yield 5.8%
Class B shares
Since Inception 13.9% 9.4%
S.E.C. 30-Day Yield 5.5%
The graph compares a $10,000 investment made in the First
Investors Government Fund, Inc. (Class A shares) on 1/1/86 with
theoretical investments in the Salomon Brothers Mortgage Index and the
Salomon Brothers Government Index. It is not possible to invest directly
in these Indices. In addition, the Indices do not take into account fees
and expenses. For purposes of the graph and the accompanying table,
unless otherwise indicated, it has been assumed that the maximum sales
charge was deducted from the initial $10,000 investment in the Fund and
all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown above based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
The Salomon Brothers Mortgage Index is a market capitalization-
weighted index that consists of all agency pass-throughs and FHA and
GNMA project loans. The Salomon Brothers Government Index is a market
capitalization-weighted index that consists of the traditional agencies
such as FNMA and FHLMC, and the newer agency issuers, such as the
Financing Corp. and the Government Trust Certificate bonds. The Indices
maintain high standards of pricing reliability. Every issue is trader-
priced, and the Indices follow consistent and realistic availability
limits, including only those securities with sufficient amounts
outstanding.
*Average Annual Total Return figures (for the period ended 12/31/95)
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). Some of the expenses of the Fund were waived
or assumed. If such expenses had been paid by the Fund, the Class A
shares "S.E.C. Standardized" Average Annual Total Return for One Year,
Five Years and Ten Years would have been 7.6%, 5.6% and 6.7%,
respectively and the S.E.C. 30-Day Yield for December 1995 would have
been 5.6%. The returns for Class B shares (first offered for sale on
1/12/95) are for the period 1/12/95 through 12/31/95. The Class B
"S.E.C. Standardized" return is adjusted for the applicable deferred
sales charge (maximum of 4% in the first year). Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Salomon Brothers Mortgage Index and Salomon Brothers Government Index
figures from Salomon Brothers and all other figures from First Investors
Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS GOVERNMENT FUND, INC.
December 31, 1995
- ---------------------------------------------------------------------------
Principal
Amount Security Value
- ---------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--81.7%
Government National Mortgage Association I
<S> <C> <C>
$47,334 M 7%, 10/15/2022-9/15/2025 $ 47,888,908
53,298 M 7 1/2%, 9/15/2021-10/15/2025 54,830,729
16,459 M 8%, 6/15/2022-9/15/2023 17,150,542
10,643 M 8 1/2%, 4/15/2016-6/15/2017 11,261,371
43,944 M 9%, 1/15/2016-3/15/2021 47,008,135
- ---------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost$174,086,542) 178,139,685
- ---------------------------------------------------------------------------
UNITED STATES TREASURY BONDS--17.4%
15,300 M 10 3/4%, 8/15/2005 21,030,328
11,000 M 12%, 8/15/2013 16,955,469
- ---------------------------------------------------------------------------
Total Value of United States Treasury Bonds (cost $36,677,922) 37,985,797
- ---------------------------------------------------------------------------
Short-Term Corporate Notes--.1%
100 M Appalachian Power Co., 6%, 1/2/1996 (cost $99,983) 99,983
- ---------------------------------------------------------------------------
Total Value of Investments (cost $210,864,447) 99.2% 216,225,465
Other Assets, Less Liabilities .8 1,762,412
- ---------------------------------------------------------------------------
Net Assets 100.0% $217,987,877
===========================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS GOVERNMENT FUND, INC.
December 31, 1995
- -----------------------------------------------------------------------------------------------------------------
Assets
<S> <C> <C>
Investments in securities, at value (identified cost $210,864,447) (Note 1A) $216,225,465
Cash 780,312
Receivables:
Interest $ 2,241,989
Capital shares sold 88,219 2,330,208
-------------
Other assets 27,482
------------
Total Assets 219,363,467
Liabilities
Payables:
Investment securities purchased 717,445
Dividend payable January 20, 1996 208,252
Capital shares redeemed 178,649
Accrued expenses 135,811
Accrued advisory fee 135,433
-------------
Total Liabilities 1,375,590
------------
Net Assets (Note 4):
Class A (19,188,491 shares outstanding) 217,089,451
Class B (79,446 shares outstanding) 898,426 $217,987,877
------------- ------------
Net Assets Consist of:
Capital paid in $234,220,283
Accumulated net realized loss on investment transactions (21,593,424)
Net unrealized appreciation in value of investments 5,361,018
------------
Total $217,987,877
------------
------------
Net asset value and redemption price per share--Class A $11.31
------------
------------
Maximum offering price per share--Class A ($11.31/.9375)* $12.06
------------
------------
Net asset value and offering price per share--Class B $11.31
==============
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS GOVERNMENT FUND, INC.
Year Ended December 31, 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Interest income $17,273,314
Expenses (Notes 1 and 3):
Advisory fee $ 2,144,097
Distribution plan expenses--Class A 656,340
Distribution plan expenses--Class B 4,338
Shareholder servicing costs 506,683
Custodian fees 26,711
Reports and notices to shareholders 69,249
Professional fees 42,369
Other expenses 79,367
-------------
Total expenses 3,529,154
Less: Portion of advisory fee waived (500,000)
Custodian fees paid indirectly (3,274)
-------------
Net expenses 3,025,880
------------
Net investment income 14,247,434
Realized and Unrealized Gain on Investments (Note 2):
Net realized gain on investments 3,588,431
Net unrealized appreciation of investments 12,889,600
-------------
Net gain on investments 16,478,031
------------
Net Increase in Net Assets Resulting from Operations $30,725,465
============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS GOVERNMENT FUND, INC.
- -----------------------------------------------------------------------------------------------------------------
Year Ended December 31 1995 1994
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 14,247,434 $ 15,514,626
Net realized gain (loss) on investments 3,588,431 (20,964,402)
Net unrealized appreciation (depreciation) of investments 12,889,600 (3,213,275)
-------------- --------------
Net increase (decrease) in net assets resulting from operations 30,725,465 (8,663,051)
-------------- --------------
Dividends to Shareholders from:
Net investment income--Class A (14,373,435) (15,227,729)
Net investment income--Class B (25,685) --
-------------- --------------
Total dividends (14,399,120) (15,227,729)
-------------- --------------
Capital Share Transactions (a)
Class A:
Proceeds from shares sold 11,009,028 13,055,386
Value of dividends reinvested 11,800,037 12,577,537
Cost of shares redeeme (41,080,675) (70,979,348)
-------------- --------------
(18,271,610) (45,346,425)
-------------- --------------
Class B:
Proceeds from shares sold 893,299 --
Value of dividends reinvested 23,146 --
Cost of shares redeemed (44,249) --
-------------- --------------
872,196 --
-------------- --------------
Net decrease from capital share transactions (17,399,414) (45,346,425)
-------------- --------------
Net decrease in net assets (1,073,069) (69,237,205)
Net Assets
Beginning of year 219,060,946 288,298,151
-------------- --------------
End of year (including undistributed net investment income
of $0 and $318,248, respectively) $ $217,987,877 $ 219,060,946
-------------- --------------
Class A:
Sold 1,008,037 1,192,645
Issued for dividends reinvested 1,073,060 1,159,051
Redeemed (3,752,419) (6,453,882)
-------------- --------------
Net decrease in Class A shares outstanding (1,671,322) (4,102,186)
============== ==============
Class B:
Sold 81,380 --
Issued for dividends reinvested 2,080 --
Redeemed (4,014) --
-------------- --------------
Net increase in Class B shares outstanding 79,446 --
============== ==============
See notes to financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS GOVERNMENT FUND, INC.
1. Significant Accounting Policies--The Fund is registered under the
Investment Company Act of 1940 (the "1940 Act") as a diversified, open-
end management investment company. The Fund's objective is to achieve a
significant level of current income which is consistent with security
and liquidity of principal.
A. Security Valuation--U.S. Government obligations are traded primarily
in the over-the-counter markets. Such securities are valued at the mean
between the last bid and asked prices as furnished by dealers who make a
market in such securities. Securities for which market quotations are
not readily available are valued on a consistent basis at fair value as
determined in good faith by or under the direction of the Fund's
officers in a manner specifically authorized by the Board of Directors.
B. Federal Income Taxes--No provision has been made for federal income
taxes on net income or capital gains since it is the policy of the Fund
to continue to comply with the special provisions of the Internal
Revenue Code applicable to investment companies, and to make sufficient
distributions of income and capital gains (in excess of any available
capital loss carryovers) to relieve it from all, or substantially all,
federal income taxes. At December 31, 1995, the Fund had a capital loss
carryover of $21,519,052 expiring in the year 2002.
C. Distributions to Shareholders--Dividends to shareholders from net
investment income are declared daily and paid monthly. 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 mortgage-backed securities, capital loss carryforwards and post
October losses.
D. Other--Security transactions are accounted for on the date the
securities are purchased or sold. Cost is determined, and gains and
losses are based, on the identified cost basis for both financial
statement and federal income tax purposes. Interest income and estimated
expenses are accrued daily. The Fund's Custodian has provided credits in
the amount of $3,274 against custodian charges based on the uninvested
cash balances of the Fund.
2. Securities Transactions--For the year ended December 31, 1995,
purchases and sales (including pay-downs) of securities other than
short-term U.S. Government obligations and corporate notes, aggregated
$357,178,669 and $338,678,690, respectively.
At December 31, 1995, the cost of investments for federal income tax
purposes was $210,864,447. Accumulated net unrealized appreciation on
investments was $5,361,018 consisting of $5,536,570 gross unrealized
appreciation and $175,552 gross unrealized depreciation.
3. Advisory Fee and Other Transactions With Affiliates--Certain officers
and directors of the Fund are officers and directors of its investment
adviser, First Investors Management Company, Inc.("FIMCO"), its
underwriter, First Investors Corporation ("FIC"), its transfer agent,
Administrative Data Management Corp. ("ADM") and/or First Financial
Savings Bank, S.L.A. ("FFS"), custodian of the Fund's Individual
Retirement Accounts. Officers and directors of the Fund received no
remuneration from the Fund for serving in such capacities. Their
remuneration (together with certain other expenses of the Fund) is paid
by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO an
annual fee, payable monthly, at the rate of 1% on the first $200 million
of the Fund's average daily net assets, .75% on the next $300 million,
declining by .03% on each $250 million thereafter, down to .66% on
average daily net assets over $1 billion. Since July 1987, FIMCO has
voluntarily waived .25% of the fee on the first $200 million of the
Fund's average daily net assets. For the year ended December 31, 1995,
this reduction amounted to $500,000.
Pursuant to certain state regulations, FIMCO has agreed to reimburse the
Fund if and to the extent that the Fund's aggregate operating expenses,
including the advisory fee but generally excluding interest, taxes,
brokerage commissions and extraordinary expenses, exceed any limitation
on expenses applicable to the Fund in those states (unless waivers of
such limitations have been obtained). The amount of any such
reimbursement is limited to the yearly advisory fee. For the year ended
December 31, 1995, no reimbursement was required pursuant to these
provisions.
For the year ended December 31, 1995, FIC, as underwriter, received
$400,138 in commissions after allowing $10,179 to other dealers.
Shareholder servicing costs included $285,432 in transfer agent fees
paid to ADM, and $136,873 in custodian fees paid to FFS.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940
Act, the Fund is authorized to pay FIC a fee equal to .30% of the
average net assets of the Class A shares and 1% of the average net
assets of the Class B shares on an annualized basis each 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 the Fund.
4. Capital--The 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 12b-1 fees as described in Note 3. Class B shares
are sold without an initial sales charge, but are generally subject to a
contingent deferred sales charge which declines in steps from 4% to 0%
over a six-year period. Class B shares automatically convert into Class
A shares after eight years. Realized and unrealized gains or losses,
investment income and expenses (other than 12b-1 fees and certain other
class expenses) are allocated daily to each class of shares based upon
the relative proportion of net assets of each class. Of the
1,000,000,000 shares originally authorized, the Fund has designated
500,000,000 shares as Class A and 500,000,000 shares as Class B.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS GOVERNMENT FUND, INC.
The following table sets forth the per share operating performance for a
share of capital stock outstanding, total return, ratios to average net
assets and other supplemental data for each year indicated.
------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-----------------------------------------------------------------------------
Year Ended December 31 1/12/95*
-----------------------------------------------------------------------------
to
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 12/31/95
------------------------------------------------------------------------------------------------------------------------------
Per Share Data
--------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year $10.50 $11.55 $11.83 $11.92 $11.08 $11.01 $10.75 $10.79 $12.12 $12.14 $10.52
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations
Net investment income .71 .69 .72 .76 .84 .90 .98 .96 .87 1.05 .63
Net realized and unrealized gain
(loss) on investments .82 (1.06) (.26) (.09) .83 .07 .26 (.04) (1.02) .31 .80
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Investment
Operations 1.53 (.37) .46 .67 1.67 .97 1.24 .92 (.15) 1.36 1.43
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less Distributions from:
Net investment income .72 .68 .74 .76 .79 .90 .98 .96 .87 1.04 .64
Net realized gains -- -- -- -- .04 -- -- -- .31 .34 --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions .72 .68 .74 .76 .83 .90 .98 .96 1.18 1.38 .64
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Year $11.31 $10.50 $11.55 $11.83 $11.92 $11.08 $11.01 $10.75 $10.79 $12.12 $11.31
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return(%)+ 14.98 (3.22) 3.99 5.90 15.74 9.20 12.02 8.71 (1.13) 11.86 13.94
Ratios/Supplemental Data
------------------------
Net Assets, End of Year (in millions) $217 $219 $288 $306 $316 $299 $237 $254 $357 $247 $1
Ratio to Average Net Assets:(%)++
Expenses 1.38 1.40 1.32 1.33 1.34 1.28 1.01 .99 1.24 1.22 2.13(a)
Net investment income 6.50 6.31 6.14 6.45 7.43 8.24 8.91 8.69 7.79 8.46 5.67(a)
Ratio to Average Net Assets Before
Expenses Waived (Note 3):(%)
Expenses 1.61 1.60 1.48 1.49 1.50 1.49 1.22 1.16 1.38 1.24 2.37(a)
Net investment income 6.27 6.11 5.98 6.29 7.27 8.03 8.70 8.52 7.65 8.44 5.43(a)
Portfolio Turnover Rate(%) 163 260 584 330 117 94 117 156 74 287 163
* Date shares first offered
+ Calculated without sales charges
++ Net after fees waived (Note 3)
(a)Annualized
See notes to financial statements
</TABLE>
Independent Auditor's Report
To the Shareholders and Board of Directors of
First Investors Government Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
First Investors Government Fund, Inc., including the portfolio of
investments, as of December 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended and financial
highlights for each of the years presented. These financial statements
and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, 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 Government Fund, Inc. at December
31, 1995, and the results of its operations, changes in its net assets
and financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1996
FIRST INVESTORS GOVERNMENT FUND, INC.
Directors
- ---------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- --------
Glenn O. Head
President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Shareholder Information
- -----------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart, LLP
1800 M Street, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
It is the Fund's practice to mail only one copy of its annual and semi-
annual reports to any address at which more than one shareholder with
the same last name has indicated that mail is to be delivered.
Additional copies of the reports will be mailed if requested by any
shareholder in writing by or calling 800-423-4026. The Fund will ensure
that separate reports are sent to any shareholder who subsequently
changes his or her mailing address.
This report is authorized for distribution only to existing
shareholders, and, if given to prospective shareholders, must be
accompanied or preceded by the Fund's prospectus.
The following appears on the bottom lefthand side
FIRST INVESTORS GOVERNMENT FUND, INC.
95 WALL STREET
NEW YORK, NY 10005
FIRST INVESTORS LOGO, which is described as follows: the arabic numeral
one separated into seven vertical segments followed by the word "First
Investors."
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIGV085
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" in a box to
the right of a circle containing the words "MAILED FROM ZIP CODE 11201"
appears to the right of the above language in the printed piece.
Vertically reading from bottom to top in center of the page the words
"FIRST INVESTORS" appear in the printed piece.
FIRST
INVESTORS
GOVERNMENT
FUND, INC.
ANNUAL
REPORT
December 31, 1995
