Portfolio Manager's Letter
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
Dear Investor:
The principal factors that affected the Fund's performance in 1994 were
strong economic growth and fears of inflation. The U.S. economic recovery
hit full stride with gross domestic product growth of approximately 4%. The
unemployment rate fell from 6.4% to 5.4% as the economy created 3.5 million
new jobs. Feeling secure about job prospects, consumers were willing to
borrow and spend. U.S. vehicle sales reached their highest level since
1988. Despite strong growth, inflation remained below 3% as low labor
costs, improved productivity and international competition kept prices from
accelerating.
Nonetheless, concerned that strong economic growth would eventually lead to
inflation, the Federal Reserve in February engineered the first of six-short
term interest rate increases which in total raised rates 250 basis points
(2.50%). As is typical at this point in the economic cycle, long-term
interest rates also rose with the benchmark 30 year U.S. Treasury bond yield
increasing approximately 155 basis points (1.55%) during the year. With
higher interest rates creating concern that the economy might slow, broad
stock market indices were unable to advance and ended the year unchanged to
slightly lower despite strong earnings reported by many companies.
Steadily rising interest rates throughout the year negatively affected U.S.
Treasury STRIPS which represent the majority of the invested assets in your
U.S. Government Plus Series Fund. Treasury STRIPS, which are zero coupon
bonds, respond more than other bonds to interest rate movements because they
don't pay interest each year. When rates rise, the price of zeros fall
sharply because holders receive no income that can be reinvested at newer,
more attractive levels. But when rates fall, the locked-in returns on zeros
start looking better than prevailing market rates.
In the equity market, indices representing larger- capitalization companies
outperformed their small-cap counterparts. The Dow Jones Industrial Average
and the S&P 500 appreciated 4.96% and 1.28%, respectively. The Nasdaq
Industrial was off 6.46% and the Russell 2000 declined 3.18%. For the year,
First Investors U.S. Government Plus Fund - 1st Series, 2nd Series and 3rd
Series declined 10.90%, 6.89% and 5.78%, respectively. This compares to a
decline of 7.64% for the Lehman Brothers Long Term Treasury Index and a
decline of 1.76% for the Lehman Brothers Intermediate Treasury Index.
Motorola, the largest equity position in each series, showed very strong
relative performance. Interpool and Transportacion Maritima, both
transportation issues, turned in lackluster returns.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1995
Cumulative Performance Information
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
1st SERIES
Comparison of change in value of $10,000 investment in the First Investors
U.S. Government Plus Fund 1st Series, the Lehman Brothers Intermediate
Treasury Index and the Lehman Brothers Long Term Treasury 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.
Government Plus
1st Series Intermediate Index Long Term Index
Nov-85 $9,200 $10,000 $10,000
Dec-85 9,238 10,318 11,008
Dec-86 13,471 11,665 13,660
Dec-87 11,681 12,084 13,295
Dec-88 13,167 12,842 14,518
Dec-89 15,911 14,471 17,265
Dec-90 16,078 15,839 18,354
Dec-91 19,710 18,073 21,751
Dec-92 20,971 19,326 23,484
Dec-93 25,049 20,915 27,535
Dec-94 22,319 20,547 25,432
Average Annual Total Return*
N.A.V. Only S.E.C. Standarized
One Year (10.90%) (18.00%)
Five Years 7.00% 5.23%
Since Inception 10.21% 9.21%
The graph compares a $10,000 investment made in the First Investors U.S.
Government Plus 1st Series on 11/21/85 (inception date) with similar
investments in the Lehman Brothers Intermediate Treasury Index and the
Lehman Brothers Long Term Treasury 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
Series and all dividends and distributions were reinvested.
The Lehman Brothers Intermediate Treasury Index is made up of all public
obligations of the U.S. Treasury with maturities of less than 10 years. The
Index does not take into account fees and expenses. It is not possible to
invest in the Lehman Brothers Intermediate Treasury Index.
The Lehman Brothers Long Term Treasury Index is made up of all public
obligations of the U.S. Treasury with maturities of 10 years or greater. The
Index does not take into account fees and expenses. It is not possible to
invest in the Lehman Brothers Long Term Treasury Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 8.00%. Some or all
of the expenses of the Series were waived or assumed. If such expenses had
been paid by the Series, the S.E.C. Standardized Average Annual Total Return
for One Year, Five Years and Since Inception would have been (18.14%), 5.19%
and 9.19%, respectively. 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 Intermediate
and Long Term Treasury Index figures from Lehman Brothers Inc. and all other
figures from First Investors Management Company, Inc.
Cumulative Performance Information
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
2nd SERIES
Comparison of change in value of $10,000 investment in the First Investors
U.S. Government Plus Fund 2nd Series, the Lehman Brothers Intermediate
Treasury Index and the Lehman Brothers Long Term Treasury 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.
Government Plus
2nd Series Intermediate Index Long Term Index
Mar-86 $9,200 $10,000 $10,000
Dec-86 9,662 10,973 11,210
Dec-87 8,949 11,368 10,910
Dec-88 9,746 12,080 11,911
Dec-89 11,535 13,613 14,168
Dec-90 11,999 14,899 15,062
Dec-91 14,303 17,001 17,850
Dec-92 15,311 18,180 19,272
Dec-93 17,229 19,675 22,597
Dec-94 16,042 19,329 20,870
Average Annual Total Return*
N.A.V. Only S.E.C. Standarized
One Year (6.89%) (14.35%)
Five Years 6.82% 5.05%
Since Inception 6.50% 5.50%
The graph compares a $10,000 investment made in the First Investors U.S.
Government Plus Fund 2nd Series on 3/6/86 (inception date) with similar
investments in the Lehman Brothers Intermediate Treasury Index and the
Lehman Brothers Long Term Treasury 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
Series and all dividends and distributions were reinvested.
The Lehman Brothers Intermediate Treasury Index is made up of all public
obligations of the U.S. Treasury with maturities of less than 10 years. The
Index does not take into account fees and expenses. It is not possible to
invest in the Lehman Brothers Intermediate Treasury Index.
The Lehman Brothers Long Term Treasury Index is made up of all public
obligations of the U.S. Treasury with maturities of 10 years or greater. The
Index does not take into account fees and expenses. It is not possible to
invest in the Lehman Brothers Long Term Treasury Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 8.00%. 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 Intermediate and Long Term Treasury Index
figures from Lehman Brothers Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
3rd SERIES
Comparison of change in value of $10,000 investment in the First Investors
U.S. Government Plus Fund 3rd Series, the Lehman Brothers Intermediate
Treasury Index and the Lehman Brothers Long Term Treasury 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.
Government Plus
3rd Series Intermediate Index Long Term Index
May-86 $9,200 $10,000 $10,000
Dec-86 9,375 10,752 11,016
Dec-87 8,549 11,139 10,721
Dec-88 9,285 11,837 11,707
Dec-89 10,796 13,339 13,922
Dec-90 11,104 14,600 14,801
Dec-91 13,234 16,659 17,540
Dec-92 14,067 17,814 18,938
Dec-93 16,150 19,279 22,205
Dec-94 15,217 18,940 20,509
Average Annual Total Return*
N.A.V. Only S.E.C. Standarized
One Year (5.78%) (13.33%)
Five Years 7.10% 5.34%
Since Inception 6.03% 5.00%
The graph compares a $10,000 investment made in the First Investors U.S.
Government Plus Fund 3rd Series on 5/29/86 (inception date) with a similar
investment in the Lehman Brothers Intermediate Treasury Index and the Lehman
Brothers Long Term Treasury 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
Series and all dividends and distributions were reinvested.
The Lehman Brothers Intermediate Treasury Index is made up of all public
obligations of the U.S. Treasury with maturities of of less than 10 years.
The Index does not take into account fees and expenses. It is not possible
to invest in the Lehman Brothers Intermediate Treasury Index.
The Lehman Brothers Long Term Treasury Index is made up of all public
obligations of the U.S. Treasury with maturities of 10 years or greater.
The Index does not take into account fees and expenses. It is not possible
to invest in the Lehman Brothers Long Term Treasury Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V. Only"
returns are calculated without sales charges. The "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 8.00%. 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 Intermediate and Long Term Treasury Index
figures from Lehman Brothers Inc. and all other figures from First Investors
Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
December 31, 1994
- -----------------------------------------------------------------------------------------------------------------------------
Principal 1st SERIES 2nd SERIES 3rd SERIES
Amount or ------------------- ------------------- -------------------
Shares Security Value % Value % Value %
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
U.S. GOVERNMENT SECURITIES
$2,825M Treasury STRIPS, due 11/15/2004 $ 1,311,648
3,350M Treasury STRIPS, due 11/15/1999 $ 2,322,890
1,250M Treasury STRIPS, due 11/15/1998 $ 928,625
---------------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Securities
(cost $1,073,097, $2,283,256 and $ 928,744,
respectively) 1,311,648 98.6 2,322,890 98.4 928,625 90.0
---------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS
Commercial Service
100 *Insurance Auto Auctions, Inc. 3,056
200 *Insurance Auto Auctions, Inc. 6,112
200 *Insurance Auto Auctions, Inc. 6,112
400 *Interpool, Inc. 5,950
---------------------------------------------------------------------------------------------------------------------------
3,056 .2 6,112 .3 12,062 1.2
---------------------------------------------------------------------------------------------------------------------------
Computers/Software/Business Equipment
300 *Lotus Development Corp. 12,300 1.2
---------------------------------------------------------------------------------------------------------------------------
Electronics/Semiconductors
160 Motorola, Inc. 9,260
400 Motorola, Inc. 23,150
400 Motorola, Inc. 23,150
---------------------------------------------------------------------------------------------------------------------------
9,260 .7 23,150 1.0 23,150 2.2
---------------------------------------------------------------------------------------------------------------------------
Financial
200 Commerce Bank of Virginia 7,275 .7
---------------------------------------------------------------------------------------------------------------------------
Foods
300 Dreyers Grand Ice Cream, Inc. 7,425 .7
---------------------------------------------------------------------------------------------------------------------------
Healthcare/Miscellaneous
200 Fisher Scientific International 4,950
100 *Shaman Pharmaceuticals, Inc. 400
---------------------------------------------------------------------------------------------------------------------------
5,350 .5
---------------------------------------------------------------------------------------------------------------------------
Retail Trade
300 Talbots, Inc. 9,375
300 Talbots, Inc. 9,375
---------------------------------------------------------------------------------------------------------------------------
9,375 .4 9,375 .9
---------------------------------------------------------------------------------------------------------------------------
Technology
300 *Integrated Device Technology, Inc. 8,850 .9
---------------------------------------------------------------------------------------------------------------------------
Transportation
700 Transportacion Maritima Mexicana S.A. (ADR) 5,338 .5
---------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks
(cost $5,373, $21,428 and $70,326 respectively) 12,316 .9 38,637 1.7 91,125 8.8
---------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $1,078,470,
$2,304,684 and $999,070, respectively) 1,323,964 99.5 2,361,527 100.1 1,019,750 98.8
Other Assets, Less Liabilities 6,163 .5 ( 1,743) ( .1) 12,517 1.2
---------------------------------------------------------------------------------------------------------------------------
Net Assets $ 1,330,127 100.0 $ 2,359,784 100.0 $ 1,032,267 100.0
===========================================================================================================================
*Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
December 31, 1994
- ------------------------------------------------------------------------------------------------------------------
1st Series 2nd Series 3rd Series
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost............................................. $ 1,078,470 $ 2,304,684 $ 999,070
============ ============ ============
At value (Note 1A)............................................. $ 1,323,964 $ 2,361,527 $ 1,019,750
Cash............................................................. 12,603 7,376 18,773
Dividends receivable............................................. 16 40 62
Other assets..................................................... 867 932 876
------------- ------------- -------------
Total Assets..................................................... 1,337,450 2,369,875 1,039,461
------------- ------------- -------------
Liabilities
Cash portion of dividend payable January 15, 1995................ 2,227 3,251 1,971
Accrued expenses................................................. 3,992 4,877 4,364
Accrued advisory fees............................................ 1,104 1,963 859
------------- ------------- -------------
Total Liabilities................................................ 7,323 10,091 7,194
------------- ------------- -------------
Net Assets....................................................... $ 1,330,127 $ 2,359,784 $ 1,032,267
============ ============ ============
Net Assets Consist of:
Capital paid in.................................................. $ 1,084,633 $ 2,533,944 $ 1,068,626
Accumulated net realized loss on investments..................... --- ( 231,003) ( 57,039)
Net unrealized appreciation in value of investments.............. 245,494 56,843 20,680
------------- ------------- -------------
Total............................................................ $ 1,330,127 $ 2,359,784 $ 1,032,267
============ ============ ============
Shares of beneficial interest outstanding (Note 3)............... 135,351 223,569 94,191
======== ======== ========
Net Asset Value and Redemption Price Per Share
(Net assets divided by shares of beneficial interest outstanding) $9.83 $10.56 $10.96
===== ===== =====
Maximum Offering Price Per Share
( Net Asset Value / .92 )*....................................... $10.68 $11.48 $11.91
===== ===== =====
*On purchases of $10,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
Year Ended December 31, 1994
- ----------------------------------------------------------------------------------------------------------------
1st Series 2nd Series 3rd Series
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income
Income:
Interest.................................................... $ 106,574 $ 182,373 $ 72,249
Dividends................................................... 152 308 549
------------- ------------- -------------
Total income.................................................. 106,726 182,681 72,798
------------- ------------- -------------
Expenses:
Advisory fees (Note 4)...................................... 14,550 25,158 11,190
Professional fees........................................... 5,616 8,410 4,299
Shareholder servicing costs (Note 4)........................ 3,264 8,089 2,111
Reports and notices to shareholders......................... 779 1,535 628
Other expenses.............................................. 1,679 1,705 1,195
------------- ------------- -------------
Total expenses................................................ 25,888 44,897 19,423
Less: Expenses assumed (Note 4)............................. 2,594 --- ---
------------- ------------- -------------
Expenses-net.................................................. 23,294 44,897 19,423
------------- ------------- -------------
Net investment income......................................... 83,432 137,784 53,375
------------- ------------- -------------
Realized and Unrealized Gain (Loss) on Investments (Note 2):
Net realized gain on investments.............................. 58,651 24,904 43,841
Net unrealized depreciation of investments.................... ( 323,053) ( 349,642) ( 165,381)
------------- ------------- -------------
Net loss on investments....................................... ( 264,402) ( 324,738) ( 121,540)
------------- ------------- -------------
Net Decrease in Net Assets Resulting from Operations.......... $ ( 180,970)$ ( 186,954)$ ( 68,165)
============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
--------------------------------------------------------------------------------------------------------------------------
1st Series 2nd Series 3rd Series
---------------------- ---------------------- ----------------------
Year Ended December 31 1994 1993 1994 1993 1994 1993
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income...................... $ 83,432 $ 85,700 $ 137,784 $ 139,802 $ 53,375 $ 53,378
Net realized gain on investments........... 58,651 67,216 24,904 65,970 43,841 44,528
Net unrealized appreciation
(depreciation) of investments............ ( 323,053) 149,786 ( 349,642) 130,600 ( 165,381) 72,480
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations................ ( 180,970) 302,702 ( 186,954) 336,372 ( 68,165) 170,386
--------- --------- --------- --------- --------- ---------
Distributions to Shareholders from:
Net investment income...................... ( 83,432) ( 85,700) ( 137,784) ( 139,802) ( 53,375) ( 53,378)
Net realized gain from security
transactions............................. ( 58,651) ( 67,216) --- --- --- ---
Capital surplus............................ ( 102) ( 62) ( 1,283) ( 30) ( 1,156) ( 15)
--------- --------- --------- --------- --------- ---------
Total Distributions........................ ( 142,185) ( 152,978) ( 139,067) ( 139,832) ( 54,531) ( 53,393)
--------- --------- --------- --------- --------- ---------
Trust Share Transactions(a)
Issued..................................... 498 5,029 19,734 --- 3,715 ---
Issued on reinvestments.................... 139,960 150,407 133,817 136,336 52,560 52,820
Redeemed................................... ( 218,951) ( 172,384) ( 224,200) ( 360,020) ( 159,485) ( 97,077)
--------- --------- --------- --------- --------- ---------
Net decrease from trust share transactions. ( 78,493) ( 16,948) ( 70,649) ( 223,684) ( 103,210) ( 44,257)
--------- --------- --------- --------- --------- ---------
Total increase (decrease) in net assets.... ( 401,648) 132,776 ( 396,670) ( 27,144) ( 225,906) 72,736
Net Assets
Beginning of year.......................... 1,731,775 1,598,999 2,756,454 2,783,598 1,258,173 1,185,437
--------- --------- --------- --------- --------- ---------
End of year................................ $ 1,330,127 $ 1,731,775 $ 2,359,784 $ 2,756,454 $ 1,032,267 $ 1,258,173
========= ========= ========= ========= ========= =========
(a)Trust Shares Issued and Redeemed
Issued..................................... 41 369 1,527 --- 315 ---
Issued on reinvestments.................... 14,238 12,179 12,861 11,314 4,795 4,302
Redeemed................................... ( 19,122) ( 13,398) ( 19,600) ( 29,279) ( 13,369) ( 7,954)
--------- --------- --------- --------- --------- ---------
Net decrease in Trust Shares............... ( 4,843) ( 850) ( 5,212) ( 17,965) ( 8,259) ( 3,652)
========= ========= ========= ========= ========= =========
See notes to financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
1. Significant Accounting Policies - The Fund is organized as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940 (the "1940 Act") as a diversified, open-end management
investment company. The Fund operates as a series fund, issuing shares of
beneficial interest of the 1st, 2nd and 3rd Series and accounts separately
for the assets, liabilities and operations of each Series.
A. Security Valuation - A security listed or traded on an exchange or the
NASDAQ National Market System is valued at its last sale price on the
exchange or the system where the security is primarily traded. Securities
which have no sales on a particular day and securities traded in the
over-the-counter market are valued at the mean between the last bid and
asked prices. The Treasury STRIPS in which each Series invests are traded
primarily in the over-the-counter market. Such securities are valued at the
mean between the last bid and asked prices on that day as furnished by any
dealer who makes 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 methods approved by the trustees
of the Fund.
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 each Series
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 each Series from all, or substantially all, federal
income taxes. At December 31, 1994, the following Series had capital loss
carryovers expiring as follows:
Year of Expiration 2nd SERIES 3rd SERIES
------------------ ---------- ----------
1996 $ 102,432 $ ---
1997 98,768 ---
1998 29,803 41,135
2001 --- 15,904
---------- ----------
$ 231,003 $ 57,039
========== ==========
C. Distributions to Shareholders - Distributions to shareholders are
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 and
post October losses.
D. Expense Allocation - Direct expenses attributable to a Series are charged
to and paid from the assets of that Series. Indirect or general expenses of
the Fund are allocated among and charged to the assets of each Series on a
fair and equitable basis, which may be based on the relative assets of each
Series or the nature of the services performed and relative applicability to
each Series.
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
common stocks and the amortized cost basis for Treasury STRIPS for both
financial statement and federal income tax purposes. Dividend income is
recorded on the ex-dividend date. Interest income (consisting of amortized
discount) is accrued monthly and estimated expenses are accrued daily.
2. Security Transactions - Purchases and sales of securities and long-term
U.S. Government Obligations, excluding short-term notes, were as follows:
<TABLE>
<CAPTION>
Year Ended December 31, 1994 1st SERIES 2nd SERIES 3rd SERIES
- ---------------------------- ----------- ----------- -----------
Securities
- ----------
<S> <C> <C> <C>
Purchases............................... $ 3,574 $ 15,484 $ 36,141
=========== =========== ===========
Proceeds of sales....................... $ 7,397 $ 30,592 $ 58,023
=========== =========== ===========
Long-Term U.S. Government Obligations
- -------------------------------------
Purchases............................... $ 106,573 $ 182,234 $ 72,248
=========== =========== ===========
Proceeds of sales....................... $ 231,174 $ 243,814 $ 152,056
=========== =========== ===========
</TABLE>
At December 31, 1994, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
1st SERIES 2nd SERIES 3rd SERIES
----------- ----------- -----------
<S> <C> <C> <C>
Aggregate cost of investments........... $ 1,078,470 $ 2,304,684 $ 999,070
=========== =========== ===========
Unrealized appreciation................. $ 246,013 $ 57,606 $ 25,715
Unrealized depreciation................. 519 763 5,035
----------- ----------- -----------
Net unrealized appreciation............. $ 245,494 $ 56,843 $ 20,680
=========== =========== ===========
</TABLE>
3. Trust Shares - The Declaration of Trust permits the Fund to issue an
unlimited number of shares of beneficial interest, of one or more Series.
4. Advisory Fee and Other Transactions With Affiliates - Certain officers
and trustees 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 trustees 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% of the first $200 million of
each Series' 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. Expenses of the 1st Series in the amount
of $ 2,594 were assumed by FIMCO.
Pursuant to certain state regulations, FIMCO has agreed to reimburse a
Series if and to the extent that such Series' 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 Series 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 such Series . For the year ended
December 31, 1994, no reimbursement was required pursuant to these
provisions.
For the year ended December 31, 1994, FIC, as underwriter, received $ 159 in
commissions. Shareholder servicing costs included $ 8,356 in fees paid to
ADM and $ 4,700 in custodian fees paid to FFS.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
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 Net
Asset Value Net Realized Asset Value
----------- Net and Unrealized Total from Net Net -----------
Beginning Investment Gain (Loss) Investment Investment Realized Capital Total End
of Period Income on Investments Operations Income Gain Surplus Distributions of Period
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1st SERIES
- ----------
11/21/85** to
12/31/85 $ 11.04 $ .045 $ --- $ .045 $ .045 $ --- $ --- $ .045 $ 11.04
1986 11.04 1.213 3.846 5.059 .019 --- --- .019 16.08
1987 16.08 1.061 (2.931) (1.870) 2.260 2.040 --- 4.300 9.91
1988 9.91 .796 .464 1.260 .810 .190 --- 1.000 10.17
1989 10.17 .722 1.398 2.120 .703 .093 .044 .840 11.45
1990 11.45 .707 (.587) .120 .707 .409 .024 1.140 10.43
1991 10.43 .686 1.670 2.356 .686 .270 --- .956 11.83
1992 11.83 .715 .042 .757 .715 .532 --- 1.247 11.34
1993 11.34 .670 1.535 2.205 .670 .525 --- 1.195 12.35
1994 12.35 .690 (2.035) (1.345) .690 .484 .001 1.175 9.83
2nd SERIES
- ----------
3/6/86** to
12/31/86 11.04 .567 (.015) .552 .052 --- --- .052 11.54
1987 11.54 .954 (1.754) (.800) 1.480 .050 --- 1.530 9.21
1988 9.21 .762 .058 .820 .770 --- --- .770 9.26
1989 9.26 .737 .963 1.700 .718 --- .032 .750 10.21
1990 10.21 .706 (.296) .410 .706 --- .004 .710 9.91
1991 9.91 .663 1.240 1.903 .663 --- --- .663 11.15
1992 11.15 .656 .130 .786 .656 --- --- .656 11.28
1993 11.28 .643 .770 1.413 .643 --- --- .643 12.05
1994 12.05 .660 (1.484) (.824) .660 --- .006 .666 10.56
3rd SERIES
- ----------
5/29/86** to
12/31/86 11.04 .183 .026 .209 .029 --- --- .029 11.22
1987 11.22 .680 (1.650) (.970) .840 .240 --- 1.080 9.17
1988 9.17 .605 .185 .790 .610 --- .070 .680 9.28
1989 9.28 .622 .888 1.510 .611 --- .019 .630 10.16
1990 10.16 .598 (.308) .290 .598 --- .012 .610 9.84
1991 9.84 .676 1.211 1.887 .676 --- .001 .677 11.05
1992 11.05 .576 .120 .696 .576 --- --- .576 11.17
1993 11.17 .544 1.110 1.654 .544 --- --- .544 12.28
1994 12.28 .610 (1.307) (.697) .610 --- .013 .623 10.96
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------
Ratio to Average Net Assets
----------------------------
Net Assets Net Portfolio
Total End of Investment Turnover
Return+ Period Expenses Income Rate
(%) (in thousands) (%) (%) (%)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1st SERIES
- ----------
11/21/85** to
12/31/85 3.63 $ 1,821 --- 3.73*(a) 0
1986 45.82 2,457 .58(a) 7.51(a) 21
1987 (13.28) 1,710 1.74 7.16 3
1988 12.71 1,701 1.69 7.21 9
1989 20.85 1,833 1.61 6.08 9
1990 1.05 1,591 1.90 6.16 14
1991 22.59 1,758 1.86 5.95 8
1992 6.40 1,599 1.75 5.62 8
1993 19.44 1,732 1.59(b) 4.94(b) 7
1994 (10.90) 1,330 1.60(b) 5.73(b) 8
2nd SERIES
- ----------
3/6/86** to
12/31/86 6.09 5,392 .69* 6.85*(a) 0
1987 (7.38) 3,874 1.76 7.33 2
1988 8.90 3,561 1.65 7.10 9
1989 18.36 3,492 1.66 6.53 11
1990 4.02 2,943 1.88 6.46 12
1991 19.20 2,946 1.91 5.87 8
1992 7.05 2,784 1.77 5.46 7
1993 12.53 2,756 1.70 4.93 7
1994 (6.89) 2,360 1.78 5.48 8
3rd SERIES
- ----------
5/29/86** to
12/31/86 3.19 2,783 .54* 3.38*(a) 0
1987 (8.81) 2,121 1.61 5.92 23
1988 8.62 2,038 1.54 5.76 22
1989 16.27 2,067 1.60 5.82 25
1990 2.85 1,777 1.74 5.53 20
1991 19.18 1,355 1.83 5.17 11
1992 6.30 1,185 1.88 4.61 8
1993 14.81 1,258 1.68 4.27 11
1994 (5.78) 1,032 1.74 4.77 10
*Annualized
**Commencement of operations
+Calculated without sales charge
(a)Computed net of advisory fees and transfer agent fees which
were waived from commencement of operations
through September 1986 and June 1986, respectively.
(b)For the years 1993 and 1994, the investment adviser assumed expenses
of the 1st Series of $2,744 and $ 2,594 respectively.
The ratio of expenses and net investment income to average net assets
before the assumption of these expenses
were as follows:
1993 1994
----------- -----------
Expenses 1.75% 1.78%
Net Investment Income 4.79% 5.56%
See notes to financial statements
</TABLE>
Independent Auditor's Report
To the Shareholders and Trustees of
First Investors U.S. Government Plus Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of the 1st, 2nd and 3rd Series of
First Investors U.S. Government Plus Fund as of December 31, 1994, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended and
the financial highlights for the periods indicated thereon. 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, 1994, by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the 1st, 2nd and 3rd Series of First Investors U.S. Government Plus Fund as
of December 31, 1994, and the results of their operations, changes in their
net assets and financial highlights for each of the respective periods
presented, in conformity with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1995
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
Trustees Shareholder Information
- -------------------------------- ------------------------------
James J. Coy Investment Adviser
First Investors
Roger L. Grayson Management Company, Inc.
95 Wall Street
Glenn O. Head New York, NY 10005
Kathryn S. Head Underwriter
First Investors Corporation
F. William Ortman, Jr. 95 Wall Street
New York, NY 10005
Rex R. Reed
Custodian
Herbert Rubinstein The Bank of New York
48 Wall Street
John T. Sullivan New York, NY 10286
Robert F. Wentworth Transfer Agent
Administrative Data
Management Corp.
10 Woodbridge Center Drive
Officers Woodbridge, NJ 07095-1198
- --------------------------------
Glenn O. Head Legal Counsel
President Kirkpatrick & Lockhart
1800 M Street, N.W.
Concetta Durso Washington, DC 20036
Vice President and Secretary
Auditors
Patricia D. Poitra Tait, Weller & Baker
Vice President Two Penn Center Plaza
Philadelphia, PA 19102
Joseph I. Benedek
Treasurer For more complete information about
First Investors U.S. Government Plus
Carol Lerner Brown Fund, including charges and expenses,
Assistant Secretary you may obtain a prospectus from your
registered representative or by
calling 1-800-423-4026. Read it
carefully before you invest or send
money.
FIRST INVESTORS
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
ANNUAL REPORT
DECEMBER 31, 1994
First Investors
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
