FIRST INVESTORS
First Investors
U.S. Government Plus
Fund
Annual Report
December 31, 1995
Logo First Investors
A Member of the
First Investors
Financial Network
F16146
Portfolio Manager's Letter
FIRST INVESTORS U.S. GOVERNMENT PLUS FUND
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.
For 1995, First Investors U.S. Government Plus
Fund - 1st Series, 2nd Series and 3rd Series
returned 28.3%, 15.3% and 14.1%, respectively,
on a net asset value basis. The large decline in
long-term interest rates during 1995 provided
investors with substantial capital appreciation. The
Fund declared dividends from net investment
income of 66.7, 64.6 and 56.8 cents per share to
the 1st Series, 2nd Series and 3rd Series,
respectively, and a capital gain distribution of 36.4
cents per share to the 1st Series.
U.S. Treasury STRIPS, also known as zero coupon
bonds, represent the majority of the invested assets
in the U.S. Government Plus Fund. The
performance of these instruments is leveraged to
interest rate moves as they do not make periodic
interest payments -- eliminating reinvestment risk.
When rates decline, the prices of zeros rise sharply
because holders receive no income that needs to be
reinvested at newer, less attractive levels.
In 1995, surging corporate profits and declining
interest rates drove the equity markets to new
highs. Two sectors fueled the robust stock market
performance: technology and financial. While
technology stocks turned choppy in July and
continued to be volatile throughout the year,
financial issues remained strong, thanks in part to
dramatically falling interest rates. Your Fund's
performance was negatively affected by fourth
quarter reports of weak U.S. cellular handset sales
which put pressure on Motorola's stock. Southern
National Corp., a multi-bank holding company
headquartered in North Carolina positively effected
performance.
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,
/s/Patricia D. Poitra
Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1996
[GRAPHIC LINE CHART]
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.
As of December 31, 1995
Vertical bar reads:
$100,000
$10,000
$1,000
Horizonal bar reads:
Jan-86 Dec-86 Dec-87 Dec-88 Dec-89 Dec-90 Dec-91
Dec-92 Dec-93 Dec-94 Dec-95
Legend reads:
- -----1st Series ------Intermediate Index ------Long Term Index
Material in box reads:
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 28.3% 18.1%
Five Years 12.2% 10.4%
Ten Years 12.0% 11.1%
Plot Points
GOVT PLUS 1 INTERMED LONG TERM
Jan-86 $9,200 $10,000 $10,000
Dec-86 13416 11305 12410
Dec-87 11634 11711 12078
Dec-88 13113 12446 13189
Dec-89 15847 14025 15684
Dec-90 16013 15350 16674
Dec-91 19630 17515 19760
Dec-92 20886 18730 21334
Dec-93 24947 20270 25015
Dec-94 22228 19913 23104
Dec-95 28517 22783 30194
The graph compares a $10,000 investment made in the First Investors U.S.
Government Plus Fund 1st Series on 1/1/86 with theoretical investments
in the Lehman Brothers Intermediate Treasury Index and the Lehman
Brothers Long Term Treasury 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 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 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.
*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 "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
8.00%. Some 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 Ten Years would have
been 17.7%, 10.3% and 11.0%, 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 original cost.
Lehman Brothers Intermediate Treasury Index and Lehman Brothers Long
Term Index figures from Lehman Brothers Inc. and all other figures from
First Investors Management Company, Inc.
[GRAPHIC LINE CHART]
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.
As of December 31, 1995
Vertical bar reads:
$100,000
$10,000
$1,000
Horizonal bar reads:
Mar-86 Dec-86 Dec-87 Dec-88 Dec-89 Dec-90 Dec-91
Dec-92 Dec-93 Dec-94 Dec-95
Legend reads:
- -----2st Series ------Intermediate Index ------Long Term Index
Material in box reads:
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 15.3% 6.1%
Five Years 9.0% 7.2%
Ten Years 7.4% 6.5%
Plot Points
GOVT PLUS 2 INTERMED LONG TERM
Mar-86 $9,200 $10,000 $10,000
Dec-86 9662 10973 11210
Dec-87 8949 11368 10910
Dec-88 9746 12080 11911
Dec-89 11535 13613 14168
Dec-90 11999 14899 15062
Dec-91 14303 17001 17850
Dec-92 15311 18180 19272
Dec-93 17229 19675 22597
Dec-94 16042 19329 20870
Dec-95 18497 22114 27214
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
theoretical investments in the Lehman Brothers Intermediate Treasury
Index and the Lehman Brothers Long Term Treasury 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 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 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.
*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 "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 Treasury
Index and Lehman Brothers Long Term Treasury Index figures from Lehman
Brothers Inc. and all other figures from First Investors Management
Company, Inc.
[GRAPHIC LINE CHART]
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.
As of December 31, 1995
Vertical bar reads:
$100,000
$10,000
$1,000
Horizonal bar reads:
Mar-86 Dec-86 Dec-87 Dec-88 Dec-89 Dec-90 Dec-91
Dec-92 Dec-93 Dec-94 Dec-95
Legend reads:
- -----3rd Series ------Intermediate Index ------Long Term Index
Material in box reads:
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 14.1% 5.0%
Five Years 9.4% 7.5%
Ten Years 6.8% 5.9%
Plot Points
GOVT PLUS 3 INTERMED LONG TERM
May-86 $9,200 $10,000 $10,000
Dec-86 9375 10752 11016
Dec-87 8549 11139 10721
Dec-88 9285 11837 11707
Dec-89 10796 13339 13922
Dec-90 11104 14600 14801
Dec-91 13234 16659 17540
Dec-92 14067 17814 18938
Dec-93 16150 19279 22205
Dec-94 15217 18940 20509
Dec-95 17366 21669 26744
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
theoretical investments in the Lehman Brothers Intermediate Treasury
Index and the Lehman Brothers Long Term Treasury 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 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 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.
*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 "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 Treasury
Index and Lehman Brothers 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, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
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
$2,475M Treasury STRIPS, due 11/15/2004 $ 1,507,523
3,000M Treasury STRIPS, due 11/15/1999 $ 2,449,500
1,200M Treasury STRIPS, due 11/15/1998 $ 1,033,920
- ----------------------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Securities
(cost $1,036,928, $2,213,073 and $962,602,
respectively) 1,507,523 98.9 2,449,500 99.0 1,033,920 91.5
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS
Consumer Non-Durables
300 Dreyers Grand Ice Cream, Inc. 9,975 .9
- ----------------------------------------------------------------------------------------------------------------------------------
Financial
378 Southern National Corporation 9,923 .9
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Miscellaneous
200 Fisher Scientific International 6,675
100 VidaMed, Inc. 950
100 VidaMed, Inc. 950
200 VidaMed, Inc. 1,900
- ----------------------------------------------------------------------------------------------------------------------------------
950 .1 950 .0 8,575 .7
- ----------------------------------------------------------------------------------------------------------------------------------
Technology
160 Motorola, Inc. 9,120
400 Motorola, Inc. 22,800
400 Motorola, Inc. 22,800
- ----------------------------------------------------------------------------------------------------------------------------------
9,120 .5 22,800 .9 22,800 2.0
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation
400 *Interpool, Inc. 7,150
700 Transportacion Maritima Mexicana S.A. (ADR) 5,863
- ----------------------------------------------------------------------------------------------------------------------------------
13,013 1.2
- ----------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks
(cost $2,675, $6,821 and $41,870 respectively) 10,070 .6 23,750 .9 64,285 5.7
- ----------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $1,039,603,
$2,219,895 and $1,004,472, respectively) 1,517,593 99.5 2,473,250 99.9 1,098,205 97.2
Other Assets, Less Liabilities 6,900 .5 2,120 .1 31,451 2.8
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 1,524,493 100.0 $ 2,475,370 100.0 $ 1,129,656 100.0
- ----------------------------------------------------------------------------------------------------------------------------------
*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, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
1st Series 2nd Series 3rd Series
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $ 1,039,603 $ 2,219,894 $ 1,004,472
--------------- --------------- ---------------
At value (Note 1A) $ 1,517,593 $ 2,473,250 $ 1,098,205
Cash 13,284 12,801 45,955
Other assets 883 972 1,010
---------------- ---------------- ----------------
Total Assets 1,531,760 2,487,023 1,145,170
---------------- ---------------- ----------------
Liabilities
Payable for capital stock redeemed -- -- 8,303
Cash portion of dividend payable January 15, 1996 1,441 3,297 1,815
Accrued advisory fees 1,258 2,053 946
Accrued expenses 4,568 6,303 4,450
---------------- ---------------- ----------------
Total Liabilities 7,267 11,653 15,514
---------------- ---------------- ----------------
Net Assets $ 1,524,493 $ 2,475,370 $ 1,129,656
================ =============== ================
Net Assets Consist of:
Capital paid in $ 1,046,503 $ 2,437,085 $ 1,076,568
Accumulated net realized gain on investments -- ( 215,071) ( 40,645)
Net unrealized appreciation in value of investments 477,990 253,356 93,733
---------------- ---------------- ----------------
Total $ 1,524,493 $ 2,475,370 $ 1,129,656
================ ================ ================
Shares of beneficial interest outstanding (Note 3) 131,683 214,771 94,632
======= ======= =======
Net Asset Value and Redemption Price Per Share
(Net assets divided by shares of beneficial interest outstanding) $11.58 $11.53 $11.94
====== ====== ======
Maximum Offering Price Per Share
(Net Asset Value /.92)* $12.59 $12.53 $12.98
====== ====== ======
*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, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
1st Series 2nd Series 3rd Series
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income
Income:
Interest $ 103,605 $ 178,622 $ 71,526
Dividends 64 196 716
---------------- --------------- ---------------
Total income 103,669 178,818 72,242
---------------- --------------- ---------------
Expenses (Notes 1 and 4):
Advisory fees 14,409 24,641 11,075
Professional fees 6,186 8,071 5,170
Shareholder servicing costs 2,915 7,330 1,682
Reports and notices to shareholders 1,739 4,122 1,302
Custodian fees 522 938 523
Other expenses 1,245 2,556 1,147
---------------- --------------- ---------------
Total expenses 27,016 47,658 20,899
Less: Expenses assumed by investment adviser ( 3,588) -- --
Custodian fees paid indirectly ( 388) ( 723) ( 523)
---------------- --------------- ---------------
Expenses-net 23,040 46,935 20,376
---------------- --------------- ---------------
Net investment income 80,629 131,883 51,866
---------------- --------------- ---------------
Realized and Unrealized Gain (Loss) on Investments (Note 2):
Net realized gain on investments 44,088 15,932 16,394
Net unrealized appreciation of investments 232,496 196,513 73,053
---------------- --------------- ---------------
Net gain on investments 276,584 212,445 89,447
---------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 357,213 $ 344,328 $ 141,313
=============== =============== ===============
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 1995 1994 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 80,629 $ 83,432 $ 131,883 $ 137,784 $ 51,866 $ 53,375
Net realized gain on investments 44,088 58,651 15,932 24,904 16,394 43,841
Net unrealized appreciation
(depreciation) of investments 232,496 ( 323,053) 196,513 ( 349,642) 73,053 ( 165,381)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 357,213 ( 180,970) 344,328 ( 186,954) 141,313 ( 68,165)
------------- ----------- ----------- ----------- ----------- -----------
Distributions to Shareholders from:
Net investment income ( 80,629) ( 83,432) ( 131,883) ( 137,784) ( 51,866) ( 53,375)
Net realized gain from security transactions ( 44,088) ( 58,651) -- -- -- --
Capital surplus ( 64) ( 102) -- ( 1,283) -- ( 1,156)
------------- ----------- ----------- ----------- ----------- -----------
Total distributions ( 124,781) ( 142,185) ( 131,883) ( 139,067) ( 51,866) ( 54,531)
------------- ----------- ----------- ----------- ----------- -----------
Trust Share Transactions(a)
Proceeds from shares sold 20,233 498 3,236 19,734 3,575 3,715
Value of distributions reinvested 123,340 139,960 128,586 133,817 50,051 52,560
Cost of shares redeemed ( 181,639) ( 218,951) ( 228,681) ( 224,200) ( 45,684) ( 159,485)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
trust share transactions ( 38,066) ( 78,493) ( 96,859) ( 70,649) 7,942 ( 103,210)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets 194,366 ( 401,648) 115,586 ( 396,670) 97,389 ( 225,906)
Net Assets
Beginning of year 1,330,127 1,731,775 2,359,784 2,756,454 1,032,267 1,258,173
------------- ----------- ----------- ----------- ----------- -----------
End of year $ 1,524,493 $ 1,330,127 $ 2,475,370 $ 2,359,784 $ 1,129,656 $ 1,032,267
=========== =========== =========== =========== =========== ===========
(a)Trust Shares Issued and Redeemed
Issued 1,712 41 300 1,527 292 315
Issued on distributions reinvested 10,654 14,238 10,618 12,861 4,014 4,795
Redeemed ( 16,034) ( 19,122) ( 19,716) ( 19,600) ( 3,865) ( 13,369)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
trust shares outstanding ( 3,668) ( 4,843) ( 8,798) ( 5,212) 441 ( 8,259)
============ ========== ========== ========== ===== ==========
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. The Funds' objective is first to generate income, and, to a
lesser extent, achieve long-term capital appreciation.
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, 1995, the
following Series had capital loss carryovers expiring as follows:
Year of Expiration 2nd SERIES 3rd SERIES
------------------ ---------- ----------
1996 $ 86,500 $ --
1997 98,768 --
1998 29,803 24,741
2001 -- 15,904
---------- ----------
$ 215,071 $ 40,645
========== ==========
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) and estimated expenses are accrued daily. The
Fund's Custodian has provided credits in the amount of $1,634 against
custodian charges based on the uninvested cash balances of the Fund.
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, 1995 1st SERIES 2nd SERIES 3rd SERIES
- ----------------------------- ---------- ---------- ----------
Securities
- ----------
<S> <C> <C> <C>
Purchases $ 876 $ 876 $ 16,553
=========== =========== ===========
Proceeds of sales $ 941 $ 13,809 $ 60,593
=========== =========== ===========
Long-Term U.S. Government Obligations
- --------------------------------------
Purchases $ 103,505 $ 178,514 $ 71,525
=========== =========== ===========
Proceeds of sales $ 186,395 $ 266,303 $ 38,477
=========== =========== ===========
</TABLE>
At December 31, 1995, 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 $ 1,039,603 $ 2,219,894 $ 1,004,472
=========== =========== ===========
Unrealized appreciation $ 477,990 $ 253,356 $ 94,563
Unrealized depreciation -- -- 830
----------- ----------- -----------
Net unrealized appreciation $ 477,990 $ 253,356 $ 93,733
=========== =========== ===========
</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 $3,588 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, 1995, no reimbursement was required
pursuant to these provisions.
For the year ended December 31, 1995, shareholder servicing costs
included $7,358 in fees paid to ADM and $4,341 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.
- ----------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
- ----------------------------------------------------------------------------------------------------------------------------------
Income From Investment Operations Less Distributions From
Net ------------------------------------------ -----------------------------------
Asset Value Net Realized
------------ Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Capital Total
of Period Income Investments Operations Income Gains Surplus Distributions
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1st SERIES
----------
1986 $ 11.04 $ 1.213 $ 3.846 $ 5.059 $ .019 $ -- $ -- $ .019
1987 16.08 1.061 (2.931) (1.870) 2.260 2.040 -- 4.300
1988 9.91 .796 .464 1.260 .810 .190 -- 1.000
1989 10.17 .722 1.398 2.120 .703 .093 .044 .840
1990 11.45 .707 (.587) .120 .707 .409 .024 1.140
1991 10.43 .686 1.670 2.356 .686 .270 -- .956
1992 11.83 .715 .042 .757 .715 .532 -- 1.247
1993 11.34 .670 1.535 2.205 .670 .525 -- 1.195
1994 12.35 .690 (2.035) (1.345) .690 .484 .001 1.175
1995 9.83 .667 2.114 2.781 .667 .364 -- 1.031
2nd SERIES
----------
3/6/86** to
12/31/86 11.04 .567 (.015) .552 .052 -- -- .052
1987 11.54 .954 (1.754) (.800) 1.480 .050 -- 1.530
1988 9.21 .762 .058 .820 .770 -- -- .770
1989 9.26 .737 .963 1.700 .718 -- .032 .750
1990 10.21 .706 (.296) .410 .706 -- .004 .710
1991 9.91 .663 1.240 1.903 .663 -- -- .663
1992 11.15 .656 .130 .786 .656 -- -- .656
1993 11.28 .643 .770 1.413 .643 -- -- .643
1994 12.05 .660 (1.484) (.824) .660 -- .006 .666
1995 10.56 .646 .970 1.616 .646 -- -- .646
3rd SERIES
----------
5/29/86** to
12/31/86 11.04 .183 .026 .209 .029 -- -- .029
1987 11.22 .680 (1.650) (.970) .840 .240 -- 1.080
1988 9.17 .605 .185 .790 .610 -- .070 .680
1989 9.28 .622 .888 1.510 .611 -- .019 .630
1990 10.16 .598 (.308) .290 .598 -- .012 .610
1991 9.84 .676 1.211 1.887 .676 -- .001 .677
1992 11.05 .576 .120 .696 .576 -- -- .576
1993 11.17 .544 1.110 1.654 .544 -- -- .544
1994 12.28 .610 (1.307) (.697) .610 -- .013 .623
1995 10.96 .568 .980 1.548 .568 -- -- .568
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
---------------------------------------------------------------------------------------------------
Ratio to Average Net Assets
Net -------------------------------
Asset Value Net Portfolio
------------ Total Net Assets Investment Turnover
End Return+ End of Period Expenses Income Rate
of Period (%) (in thousands) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1st SERIES
-----------
1986 $ 16.08 45.82 $ 2,457 .58(a) 7.51(a) 21
1987 9.91 (13.28) 1,710 1.74 7.16 3
1988 10.17 12.71 1,701 1.69 7.21 9
1989 11.45 20.85 1,833 1.61 6.08 9
1990 10.43 1.05 1,591 1.90 6.16 14
1991 11.83 22.59 1,758 1.86 5.95 8
1992 11.34 6.40 1,599 1.75 5.62 8
1993 12.35 19.44 1,732 1.59(b) 4.94(b) 7
1994 9.83 (10.90) 1,330 1.60(b) 5.73(b) 8
1995 11.58 28.29 1,524 1.63(b) 5.57(b) 7
2nd SERIES
----------
3/6/86** to
12/31/86 11.54 6.09 5,392 .69* 6.85*(a) 0
1987 9.21 (7.38) 3,874 1.76 7.33 2
1988 9.26 8.90 3,561 1.65 7.10 9
1989 10.21 18.36 3,492 1.66 6.53 11
1990 9.91 4.02 2,943 1.88 6.46 12
1991 11.15 19.20 2,946 1.91 5.87 8
1992 11.28 7.05 2,784 1.77 5.46 7
1993 12.05 12.53 2,756 1.70 4.93 7
1994 10.56 (6.89) 2,360 1.78 5.48 8
1995 11.53 15.30 2,475 1.93 5.32 7
3rd SERIES
-----------
5/29/86** to
12/31/86 11.22 3.19 2,783 .54* 3.38*(a) 0
1987 9.17 (8.81) 2,121 1.61 5.92 23
1988 9.28 8.62 2,038 1.54 5.76 22
1989 10.16 16.27 2,067 1.60 5.82 25
1990 9.84 2.85 1,777 1.74 5.53 20
1991 11.05 19.18 1,355 1.83 5.17 11
1992 11.17 6.30 1,185 1.88 4.61 8
1993 12.28 14.81 1,258 1.68 4.27 11
1994 10.96 (5.78) 1,032 1.74 4.77 10
1995 11.94 14.12 1.130 1.89 4.64 8
*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, 1994 and 1995, the Investment adviser assumed
expenses of the 1st Series of $2,744, $2,594 and $3,588 respectively.
The ratios of expenses and net investment income to average net
assets before the assumption of these expenses were as follows:
1993 1994 1995
------ ------ -----
Expenses 1.75% 1.78% 1.87%
Net Investment Income 4.79% 5.56% 5.32%
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, 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 ten years in
the period then ended. 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. 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, 1995, and the results of
their operations, changes in their net assets and the financial
highlights for each of the respective years indicated thereon, in
conformity with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1996
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
Rex R. Reed 95 Wall Street
New York, NY 10005
Herbert Rubinstein
Custodian
James M. Srygley The Bank of New York
48 Wall Street
John T. Sullivan New York, NY 10286
Robert F. Wentworth Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Officers
- -------------------------------- Legal Counsel
Glenn O. Head Kirkpatrick & Lockhart LLP
President 1800 Massachusetts Avenue
Washington, DC 20036
Concetta Durso
Vice President and Secretary Auditors
Tait, Weller & Baker
Patricia D. Poitra Two Penn Center Plaza
Vice President Philadelphia, PA 19102
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
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 or by 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.
