FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
95 WALL STREET
NEW YORK, NY 10005
FIMS-148
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seven vertical segments followed by the words "First Investors."
A MEMBER OF THE
FIRST INVESTORS FINANCIAL NETWORK
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box to the right of a circle containing the words "MAILED FROM ZIP
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printed piece.
Vertically reading from bottom to top in the center of the page the
words "FIRST INVESTORS" appear in the printed piece.
First Investors
New York Insured
Tax Free Fund, Inc.
First Investors
Multi-State Insured
Tax Free Fund
Connecticut Fund
Florida Fund
Georgia Fund
Maryland Fund
Massachusetts Fund
New Jersey Fund
North Carolina Fund
Pennsylvania Fund
Virginia Fund
ANNUAL
REPORT
DECEMBER 31, 1997
Portfolio Manager's Letter
First Investors New York Insured Tax Free Fund, Inc.
First Investors Multi-State Insured Tax Free Fund
Connecticut, Florida, Georgia, Maryland, Massachusetts,
New Jersey, North Carolina, Pennsylvania and Virginia Funds
Dear Investor:
1997 was a very good year for the U.S. economy and financial markets.
The economy grew at an annual pace of 3.8%, with the unemployment
rate falling to its lowest level since the 1970's. Despite faster
economic growth, inflation, as measured by the Consumer Price Index,
rose less than 2%, its smallest increase in over ten years.
Reflecting the strong economy, the Federal budget deficit declined
substantially and had almost been eliminated by year-end. Against
this backdrop, the Federal Reserve held monetary policy steady after
one small increase in the benchmark Federal funds rate in March.
Although both the U.S. bond and stock markets suffered setbacks at
times during the year, the combination of moderate growth and low
inflation ultimately provided a rewarding environment for investors.
Long-term bond yields fell to their lowest level in two years, while
the broad stock market indices recorded their third consecutive year
of substantial gains. While many overseas markets were buffeted by
the economic crisis in Southeast Asia, U.S. markets remained
relatively stable or -- in the case of the bond market -- benefited
from a "flight to safety" as investors sought the security of the
world's largest and most efficient financial markets.
Long-term municipal bond yields ended 1997 near their lowest level
since the mid-1970's. Most of the decline in yields occurred during
the second half of the year as the bond market benefited from low
inflation in the U.S. and instability in Southeast Asia. Low yields
spurred issuance of $220 billion of municipal bonds during 1997, the
third largest volume of supply in the market's history. This supply
kept municipal bond yields higher than they might have been
otherwise. As a result, municipal bonds ended the year somewhat cheap
relative to taxable bonds, laying the groundwork for strong
performance in 1998.
For 1997, the First Investors New York Insured Tax Free Fund and the
nine Multi-State Funds included in this report had the following
returns on a net asset value basis on Class A and Class B shares,
respectively: New York 7.8% and 7.2%, Connecticut 8.8% and 8.0%,
Florida 9.2% and 8.4%, Georgia 10.0% and 9.1%, Maryland 9.6% and
8.8%, Massachusetts 8.3% and 7.4%, New Jersey 8.4% and 7.6%, North
Carolina 9.6% and 8.7%, Pennsylvania 9.1% and 8.2%, and Virginia 9.0%
and 8.2%. According to Lipper Analytical Services, Inc., the total
returns on the Class A shares of seven of the Funds exceeded the
average return of their respective mutual fund peer group as follows:
New York .10%, Connecticut .25%, Georgia .83%, Maryland 1.04%, North
Carolina .70%, Pennsylvania .34% and Virginia .05%. The total returns
on the Class A shares of three of the Funds were below the average
return of their respective mutual fund peer group as follows: Florida
.04%, Massachusetts .37%, and New Jersey .07%.
The generally good performance of these Funds during 1997 is
attributable to two factors. First, a substantial percentage of each
of the Fund's assets was invested in noncallable bonds. Most
municipal bonds are callable which means that issuers can buy -- or
call -- bonds from investors if interest rates fall. This limits the
price appreciation of callable bonds when interest rates fall as they
did in 1997. In contrast, noncallable bonds have unlimited potential
to increase in price. Our holdings of noncallable bonds contributed
significantly to the Funds' total returns. The one exception to the
success of this strategy was the Massachusetts Fund where its
holdings of noncallable bonds failed to compensate for the Fund's
relatively short duration. Second, except for a period in the Spring,
the Funds remained substantially fully invested. This allowed the
Funds to earn the highest amount of income possible and provided the
best opportunity to benefit on a total return basis from falling
interest rates.
Investors who buy bond funds -- whether for income or total return --
should be aware that the value of their investment fluctuates as
interest rates change. For example, a 50 basis point (or .5%)
increase in yield on a twenty-year municipal bond results in roughly
a 6% decrease in that bond's price. In each of the last five years,
twenty-year municipal bond yields have fluctuated by more than 50
basis points. In addition, while the Funds' municipal bonds are
insured as to timely payment of principal and interest, the insurance
does not protect the bonds against changes in market value. Investors
should be aware of these risks and recognize that successful
investing generally requires a long-term commitment to the market.
Following 1997's strong performance, the outlook for U.S. financial
markets continues to be positive, although uncertainties do exist. In
particular, we believe that the economic problems in Southeast Asia
will slow growth in the U.S. However, it is unclear to what extent
growth will be slowed and, consequently, what the ultimate impact
will be on the financial markets. On a positive note, Southeast
Asia's problems should result in lower inflation worldwide.
Uncertainty often leads to volatile markets. During such times,
investors are generally best served by focusing on long-term
objectives and maintaining a disciplined approach to investing.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/S/Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
January 30, 1998
Cumulative Performance Information
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
Comparison of change in value of $10,000 investment in the First
Investors New York Insured Tax Free Fund, Inc. (Class A shares) and
the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
NEW YORK LEHMAN BROTHERS
INSURED MUNICIPAL
TAX FREE FUND BOND INDEX
JAN 1988 9,375 10,000
DEC 1988 10,328 11,016
DEC 1989 11,293 12,203
DEC 1990 11,966 13,093
DEC 1991 13,270 14,683
DEC 1992 14,424 15,978
DEC 1993 15,841 17,939
DEC 1994 15,044 17,012
DEC 1995 17,369 20,004
DEC 1996 17,881 20,854
DEC 1997 19,279 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 7.82% 1.07%
Five Years 5.97% 4.62%
Ten Years 7.48% 6.79%
S.E.C. 30-Day Yield 3.32%
Class B Shares
One Year 7.16% 3.16%*
Since Inception
(1/12/95) 7.64% 6.76%*
S.E.C. 30-Day Yield 2.85%
The graph compares a $10,000 investment in the First Investors New
York Insured Tax Free Fund, Inc. (Class A shares) beginning
1/1/88 with a theoretical investment in the Lehman Brothers
Municipal Bond Index. The Lehman Brothers Municipal Bond Index is
a total return performance benchmark for the long-term investment
grade tax-exempt bond market. Returns and attributes for the Index
are calculated semi-monthly using approximately 21,000 municipal
bonds which are priced by Muller Data Corp. The Index does not
take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. It is not possible
to invest directly in the Lehman Brothers Municipal Bond Index.
For purposes of the graph and the accompanying table, unless
otherwise indicated, it has been assumed that the maximum sales
charge was deducted from the initial $10,000 investment in the
Fund and all dividends and distributions were reinvested. Class B
shares performance may be greater than or less than that shown in
the line graph above for Class A shares based on differences in
sales loads and fees paid by shareholders investing in the
different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions.
"N.A.V. Only" returns are calculated without sales charges. The
Class A "S.E.C. Standardized" returns shown are based on the
maximum sales charge of 6.25% (prior to 7/1/93 and 12/29/89, the
maximum sales charges were 6.9% and 7.25%, respectively). The Class
B "S.E.C. Standardized" returns are adjusted for the applicable
deferred sales charge (maximum of 4% in the first year). Some or
all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years
and Ten Years would have been 1.03%, 4.61% and 6.78%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been
3.27%. The Class B "S.E.C. Standardized" Average Annual Total
return for One Year and Since Inception would have been 3.12% and
6.75%, respectively, and the S.E.C. 30-Day Yield for December 1997
would have been 2.80%. Results represent past performance and do
not indicate future results. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Lehman
Brothers Municipal Bond Index figures from Lehman Brothers, Inc.
and all other figures from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- CONNECTICUT FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Connecticut Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
CONNECTICUT MUNICIPAL
FUND BOND INDEX
OCT 1990 9,375 10,000
DEC 1990 9,395 10,431
DEC 1991 10,345 11,698
DEC 1992 11,306 12,730
DEC 1993 12,900 14,292
DEC 1994 12,030 13,553
DEC 1995 14,097 15,918
DEC 1996 14,573 16,595
DEC 1997 15,851 18,120
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.77% 1.95%
Five Years 6.99% 5.63%
Since Inception
(10/8/90) 7.52% 6.57%
S.E.C. 30-Day Yield 3.94%
Class B Shares
One Year 7.95% 3.95%*
Since Inception
(1/12/95) 8.56% 7.70%*
S.E.C. 30-Day Yield 3.42%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Connecticut Fund (Class A
shares) beginning 10/8/90 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares
based on differences in sales loads and fees paid by shareholders
investing in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of 4%
in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 1.57%, 5.19%
and 5.92%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.61%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.59% and 7.21%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.07%. Results represent past
performance and do not indicate future results. Investment return
and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the
original cost. Lehman Brothers Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- FLORIDA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Florida Fund (Class
A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
FLORIDA MUNICIPAL
FUND BOND INDEX
OCT 1990 9,375 10,000
DEC 1990 9,345 10,431
DEC 1991 10,442 11,698
DEC 1992 11,526 12,730
DEC 1993 13,161 14,292
DEC 1994 12,451 13,553
DEC 1995 14,788 15,918
DEC 1996 15,282 16,595
DEC 1997 16,685 18,120
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.18% 2.38%
Five Years 7.68% 6.30%
Since Inception
(10/5/90) 8.28% 7.32%
S.E.C. 30-Day Yield 3.76%
Class B Shares
One Year 8.38% 4.38%*
Since Inception
(1/12/95) 9.27% 8.41%*
S.E.C. 30-Day Yield 3.23%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Florida Fund (Class A shares)
beginning 10/5/90 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for
the long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less
than that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of
4% in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 2.06%, 5.77%
and 6.63%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.47%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 4.02% and 7.92%, respectively, and the S.E.C. 30-Day
Yield for December 1997 would have been 2.91%. Results represent
past performance and do not indicate future results. Investment
return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than
the original cost. Lehman Brothers Municipal Bond Index figures
from Lehman Brothers, Inc. and all other figures from First
Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- GEORGIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Georgia Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
GEORGIA MUNICIPAL
FUND BOND INDEX
MAY 1992 9,375 10,000
DEC 1992 9,803 10,753
DEC 1993 11,289 12,073
DEC 1994 10,760 11,449
DEC 1995 12,740 13,447
DEC 1996 13,242 14,018
DEC 1997 14,565 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 10.00% 3.09%
Five Years 8.24%* 6.85%
Since Inception
(5/1/92) 8.07% 6.86%
S.E.C. 30-Day Yield 4.33%
Class B Shares
One Year 9.07% 5.07%*
Since Inception
(1/12/95) 9.48% 8.62%*
S.E.C. 30-Day Yield 3.84%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Georgia Fund (Class A shares)
beginning 5/1/92 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for
the long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less
than that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of
4% in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 2.05%, 5.59%
and 5.38%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.34%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.99% and 7.24%, respectively, and the S.E.C. 30-Day
Yield for December 1997 would have been 2.79%. Results represent
past performance and do not indicate future results. Investment
return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than
the original cost. Lehman Brothers Municipal Bond Index figures
from Lehman Brothers, Inc. and all other figures from First
Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- MARYLAND FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Maryland Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
MARYLAND MUNICIPAL
FUND BOND INDEX
OCT 1990 9,375 10,000
DEC 1990 9,555 10,431
DEC 1991 10,374 11,698
DEC 1992 11,346 12,730
DEC 1993 13,005 14,292
DEC 1994 12,277 13,553
DEC 1995 14,426 15,918
DEC 1996 14,905 16,595
DEC 1997 16,335 18,120
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.59% 2.73%
Five Years 7.56% 6.18%
Since Inception
(10/8/90) 7.97% 7.02%
S.E.C. 30-Day Yield 4.29%
Class B Shares
One Year 8.81% 4.81%*
Since Inception
(1/12/95) 8.99% 8.13%*
S.E.C. 30-Day Yield 3.79%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Maryland Fund (Class A shares)
beginning 10/8/90 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for the
long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller Data
Corp. The Index does not take into account fees and expenses or cost
of insurance of the bonds held by an insured tax-exempt bond fund.
It is not possible to invest directly in the Lehman Brothers
Municipal Bond Index. For purposes of the graph and the accompanying
table, unless otherwise indicated, it has been assumed that the
maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less
than that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of 4%
in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 1.98%, 5.34%
and 5.94%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.58%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 4.03% and 6.80%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.04%. Results represent past
performance and do not indicate future results. Investment return
and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the
original cost. Lehman Brothers Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- MASSACHUSETTS FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Massachusetts Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
MASSACHUSETTS MUNICIPAL
FUND BOND INDEX
JAN 1988 9,375 10,000
DEC 1988 10,629 11,016
DEC 1989 11,727 12,203
DEC 1990 12,561 13,093
DEC 1991 13,986 14,683
DEC 1992 15.356 15,978
DEC 1993 17,188 17,939
DEC 1994 16,281 17,012
DEC 1995 19,060 20,004
DEC 1996 19,629 20,854
DEC 1997 21,252 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.27% 1.54%
Five Years 6.71% 5.35%
Ten Years 8.53% 7.83%
S.E.C. 30-Day Yield 3.86%
Class B Shares
One Year 7.41% 3.41%*
Since Inception
(1/12/95) 8.24% 7.37%*
S.E.C. 30-Day Yield 3.33%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Massachusetts Fund (Class A
shares) beginning 1/1/88 with a theoretical investment in the
Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal
Bond Index is a total return performance benchmark for the long-
term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less
than that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 and 12/29/89,
the maximum sales charges were 6.9% and 7.25%, respectively). The
Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years
and Ten Years would have been 1.20%, 5.01% and 7.20%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been
3.52%. The Class B "S.E.C. Standardized" Average Annual Total
Return for One Year and Since Inception would have been 3.05% and
7.02%, respectively, and the S.E.C. 30-Day Yield for December 1997
would have been 2.97%. Results represent past performance and do
not indicate future results. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Lehman
Brothers Municipal Bond Index figures from Lehman Brothers, Inc.
and all other figures from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- NEW JERSEY FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- New Jersey Fund (Class
A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
NEW JERSEY MUNICIPAL
FUND BOND INDEX
SEP 1988 9,375 10,000
DEC 1988 9,545 10,370
DEC 1989 10,540 11,488
DEC 1990 11,327 12,326
DEC 1991 12,608 13,823
DEC 1992 13,831 15,041
DEC 1993 15,641 16,888
DEC 1994 14,704 16,015
DEC 1995 17,131 18,810
DEC 1996 17,660 19,609
DEC 1997 19,136 21,411
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.36% 1.56%
Five Years 6.71% 5.35%
Since Inception
(9/13/88) 7.97% 7.23%
S.E.C. 30-Day Yield 3.95%
Class B Shares
One Year 7.56% 3.56%*
Since Inception
(1/12/95) 8.04% 7.17%*
S.E.C. 30-Day Yield 3.42%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- New Jersey Fund (Class A
shares) beginning 9/13/88 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares
based on differences in sales loads and fees paid by shareholders
investing in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 and 12/29/89,
the maximum sales charges were 6.9% and 7.25%, respectively). The
Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years
and Since Inception would have been 1.40%, 5.12% and 6.79%,
respectively, and the S.E.C. 30-Day Yield for December 1997 would
have been 3.81%. The Class B "S.E.C. Standardized" Average Annual
Total Return for One Year and Since Inception would have been 3.40%
and 6.96%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.27%. Results represent past performance and
do not indicate future results. Investment return and principal
value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
Lehman Brothers Municipal Bond Index figures from Lehman Brothers,
Inc. and all other figures from First Investors Management Company,
Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- NORTH CAROLINA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- North Carolina Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
NORTH CAROLINA MUNICIPAL
FUND BOND INDEX
MAY 1992 9,375 10,000
DEC 1992 9,769 10,753
DEC 1993 11,135 12,073
DEC 1994 10,417 11,449
DEC 1995 12,367 13,447
DEC 1996 12,821 14,018
DEC 1997 14,046 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.56% 2.70%
Five Years 7.53% 6.15%
Since Inception
(5/4/92) 7.38% 6.17%
S.E.C. 30-Day Yield 4.28%
Class B Shares
One Year 8.71% 4.71%*
Since Inception
(1/12/95) 9.36% 8.50%*
S.E.C. 30-Day Yield 3.79%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- North Carolina Fund (Class A
shares) beginning 5/4/92 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares
based on differences in sales loads and fees paid by shareholders
investing in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of 4%
in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 1.80%, 5.03%
and 4.95%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.44%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.78% and 7.37%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 2.89%. Results represent past
performance and do not indicate future results. Investment return
and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the
original cost. Lehman Brothers Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- PENNSYLVANIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Pennsylvania Fund
(Class A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
PENNSYLVANIA MUNICIPAL
FUND BOND INDEX
APR 1990 9,375 10,000
DEC 1990 9,830 10,759
DEC 1991 10,861 12,066
DEC 1992 11,885 13,129
DEC 1993 13,583 14,741
DEC 1994 12,726 13,979
DEC 1995 15,054 16,418
DEC 1996 15,564 17,116
DEC 1997 16,987 18,689
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.14% 2.33%
Five Years 7.40% 6.02%
Since Inception
(4/30/90) 8.04% 7.15%
S.E.C. 30-Day Yield 3.97%
Class B Shares
One Year 8.23% 4.23%*
Since Inception
(1/12/95) 9.06% 8.20%*
S.E.C. 30-Day Yield 3.44%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Pennsylvania Fund (Class A
shares) beginning 4/30/90 (inception date) with a theoretical
investment in the Lehman Brothers Municipal Bond Index. The Lehman
Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax-exempt bond market.
Returns and attributes for the Index are calculated semi-monthly
using approximately 21,000 municipal bonds which are priced by
Muller Data Corp. The Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-
exempt bond fund. It is not possible to invest directly in the
Lehman Brothers Municipal Bond Index. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares
based on differences in sales loads and fees paid by shareholders
investing in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of 4%
in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 2.07%, 5.66%
and 6.64%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.73%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.97% and 7.85%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.19%. Results represent past
performance and do not indicate future results. Investment return
and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the
original cost. Lehman Brothers Municipal Bond Index figures from
Lehman Brothers, Inc. and all other figures from First Investors
Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund -- VIRGINIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Virginia Fund (Class
A shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
LEHMAN BROTHERS
VIRGINIA MUNICIPAL
FUND BOND INDEX
APR 1990 9,375 10,000
DEC 1990 9,729 10,759
DEC 1991 10,830 12,066
DEC 1992 11,923 13,129
DEC 1993 13,466 14,741
DEC 1994 12,663 13,979
DEC 1995 14,870 16,418
DEC 1996 15,385 17,116
DEC 1997 16,774 18,689
(INSET BOX IN CHART READS:)
Average Annual Total Return*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.03% 2.21%
Five Years 6.98% 5.68%
Since Inception
(4/30/90) 7.87% 6.97%
S.E.C. 30-Day Yield 3.80%
Class B Shares
One Year 8.19% 4.19%*
Since Inception
(1/12/95) 8.76% 7.90%*
S.E.C. 30-Day Yield 3.27%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Virginia Fund (Class A shares)
beginning 4/30/90 (inception date) with a theoretical investment in
the Lehman Brothers Municipal Bond Index. The Lehman Brothers
Municipal Bond Index is a total return performance benchmark for
the long-term investment grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller
Data Corp. The Index does not take into account fees and expenses
or cost of insurance of the bonds held by an insured tax-exempt
bond fund. It is not possible to invest directly in the Lehman
Brothers Municipal Bond Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less
than that shown in the line graph above for Class A shares based on
differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended
12/31/97) include the reinvestment of all dividends and
distributions. "N.A.V. Only" returns are calculated without sales
charges. The Class A "S.E.C. Standardized" returns shown are based
on the maximum sales charge of 6.25% (prior to 7/1/93 the maximum
sales charge was 6.9%). The Class B "S.E.C. Standardized" returns
are adjusted for the applicable deferred sales charge (maximum of
4% in the first year). Some or all of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the
Class A "S.E.C. Standardized" Average Annual Total Return for One
Year, Five Years and Since Inception would have been 1.83%, 5.25%
and 6.41%, respectively, and the S.E.C. 30-Day Yield for December
1997 would have been 3.44%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.79% and 7.45%, respectively, and the S.E.C. 30-Day
Yield for December 1997 would have been 2.89%. Results represent
past performance and do not indicate future results. Investment
return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than
the original cost. Lehman Brothers Municipal Bond Index figures
from Lehman Brothers, Inc. and all other figures from First
Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.1%
Education--15.6%
$1,000M Monroe County Indl. Dev. Agcy. (Rochester Inst. Tech.)
7 3/4% 5/1/2000* $ 1,100,000 $ 55
New York State Dormitory Authority Revenues:
City University:
1,500M 8.2% 7/1/1998* 1,558,755 78
1,955M 5 3/4% 7/1/2013 - 2nd Gen. - A 2,167,606 109
2,000M 5 3/4% 7/1/2013 - 2nd - A 2,217,500 112
2,000M 5 3/4% 7/1/2013 - A 2,217,500 112
3,000M 6% 7/1/2020 - 2nd Gen. - A 3,423,750 172
1,000M Iona College 7 5/8% 7/1/1998* 1,038,860 52
2,800M Manhattanville College 7 1/2% 7/1/2000* 3,080,000 155
1,000M Pace University 6 1/2% 7/1/2012 1,181,250 60
State University Educational Facilities:
1,880M 7 1/4% 5/15/2000* 2,051,550 103
1,000M 5 7/8% 5/15/2011 1,108,750 56
3,500M 5 1/2% 5/15/2013 3,784,375 190
3,700M 7 3/8% 5/15/2014 4,033,000 203
2,000M 5 1/4% 5/15/2015 2,092,500 105
- -----------------------------------------------------------------------------------------------------------------
31,055,396 1,562
- -----------------------------------------------------------------------------------------------------------------
General Obligation--17.4%
1,250M Monroe County 6% 3/1/2015 1,421,875 71
Nassau County:
3,845M 6 1/2% 11/1/2004* 4,426,556 223
4,355M 5.7% 8/1/2012 4,681,625 235
1,300M 6% 7/1/2013 1,467,375 74
New York City:
1,000M 8% 6/1/1998* 1,032,140 52
3,000M 6.2% 8/1/2008 3,416,250 172
3,440M 6.95% 8/15/2012 3,981,800 200
1,000M 7 1/4% 3/15/2018 1,083,750 54
Niagara Falls Public Improvement:
1,340M 7 1/2% 3/1/2012 1,703,475 86
1,680M 7 1/2% 3/1/2015 2,179,800 110
1,600M 7 1/2% 3/1/2018 2,104,000 106
1,750M North Hempstead 6.4% 4/1/2012 2,038,750 102
Puerto Rico Commonwealth:
1,100M 6 1/4% 7/1/2013 1,288,375 65
3,390M 5.65% 7/1/2015 3,703,575 186
- -----------------------------------------------------------------------------------------------------------------
34,529,346 1,736
- -----------------------------------------------------------------------------------------------------------------
Health Care--11.8%
New York State Medical Care Facilities Agency:
3,690M Beth Israel Hospital 7 1/2% 11/1/2010 4,095,900 206
1,850M Long Term Health Care 7 3/8% 11/1/2011 1,998,000 100
Mental Health Services Facilities:
1,905M 7.7% 2/15/1998* 1,951,139 98
4,190M 7 3/4% 2/15/2000* 4,582,813 231
1,030M 7 3/8% 2/15/2014 1,098,238 55
845M 7.7% 2/15/2018 865,246 44
4,915M 6 1/2% 8/15/2024 5,504,800 277
3,000M St. Luke's Hospital 7.45% 2/15/2000* 3,262,500 164
- -----------------------------------------------------------------------------------------------------------------
23,358,636 1,175
- -----------------------------------------------------------------------------------------------------------------
Housing--6.5%
New York City Housing Development Corp.:
2,250M Insured Multi-Family (Sheridan Manor) 7.45% 10/1/2008 2,354,063 118
6,500M Insured Residential Charter 7 3/8% 4/1/2017 6,628,505 333
3,680M New York State Housing Finance Agency 6.05% 5/1/2011 3,992,800 201
- -----------------------------------------------------------------------------------------------------------------
12,975,368 652
- -----------------------------------------------------------------------------------------------------------------
Transportation--23.4%
Metropolitan Transit Authority of New York:
Commuter Facilities Series:
5,000M 6 1/8% 7/1/2004* 5,568,750 280
1,760M 5 3/4% 7/1/2021 1,883,200 95
Transit Facilities Series:
5,000M 8% 7/1/1998* 5,203,250 262
3,200M 5 1/2% 7/1/2017 3,440,000 173
1,500M 5 3/4% 7/1/2021 1,605,000 81
7,900M New York City Transit Auth. Hwy. & Brdg. Trust Fund Rev.
7 1/2% 1/1/2000* 8,571,500 431
Puerto Rico Commonwealth Highway & Transportation Authority:
3,080M 6 1/4% 7/1/2014 3,607,450 181
5,000M 6% 7/1/2018 5,750,000 289
Triborough Bridge & Tunnel Authority:
3,000M Series "O" 7.7% 1/1/1999* 3,154,020 158
6,900M Series "Y" 6% 1/1/2012 7,762,500 390
- -----------------------------------------------------------------------------------------------------------------
46,545,670 2,340
- -----------------------------------------------------------------------------------------------------------------
Utilities--9.0%
New York City Municipal Water Finance Authority:
4,975M 5 7/8% 6/15/2012 5,547,125 279
2,000M 5 7/8% 6/15/2013 2,230,000 112
2,750M 6% 6/15/2021 3,145,312 158
Suffolk County Water Authority:
2,165M 6% 6/1/2014 2,462,687 124
4,000M 6% 6/1/2017 4,560,000 229
- -----------------------------------------------------------------------------------------------------------------
17,945,124 902
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--14.4%
3,350M Guam Govt. Ltd. Obligation Infrastructure Impt.
Series "A" 5% 11/01/2017 3,341,625 168
1,000M New York State Dorm. Auth. Rev. (Suffolk County Jud. Facs.)
7 3/8% 7/1/2016 1,236,250 62
3,000M New York State Urban Development Corporation Corr. Facs.
7 1/2% 1/1/1999* 3,148,260 158
2,325M Puerto Rico Commonwealth Infrastructure Financing Authority
5% 7/1/2028 2,281,406 115
Puerto Rico Public Buildings Authority:
1,250M 6 1/4% 7/1/2013 1,456,250 73
2,035M 6 1/4% 7/1/2015 2,373,319 120
7,000M 5 1/2% 7/1/2021 7,551,250 380
7,500M 5% 7/1/2027 7,340,625 369
- -----------------------------------------------------------------------------------------------------------------
28,728,985 1,445
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $177,947,232) 98.1% 195,138,525 9,812
Other Assets, Less Liabilities 1.9 3,737,135 188
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $198,875,660 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CONNECTICUT FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.9%
Certificates of Participation--1.9%
Connecticut State (Middletown Courthouse Facilities):
$ 130M 6 1/4% 12/15/2009 $ 140,725 $ 74
100M 6 1/4% 12/15/2010 108,250 57
100M 6 1/4% 12/15/2012 108,250 57
- -----------------------------------------------------------------------------------------------------------------
357,225 188
- -----------------------------------------------------------------------------------------------------------------
Education--16.9%
Conn. State Health & Educational Facilities Authority Revenue:
725M Choate Rosemary Hall 6.8% 7/1/2004* 831,938 437
500M Loomis Chafee School Project-Series "B" 6% 7/1/2015 536,875 282
1,000M Trinity College 6 1/8% 7/1/2014 1,085,000 569
750M University of Connecticut 5 1/4% 4/1/2014 766,875 403
- -----------------------------------------------------------------------------------------------------------------
3,220,688 1,691
- -----------------------------------------------------------------------------------------------------------------
General Obligation--31.9%
250M Ansonia 5% 10/15/2015 250,000 131
100M Bethel 6 1/2% 2/15/2011 118,500 62
775M Bridgeport 5 1/2% 9/1/2015 812,781 427
50M Bristol 6 1/2% 6/15/2006 57,937 30
30M Colchester 7.3% 1/15/2007 36,563 19
Connecticut State:
500M 6 1/2% 3/15/2002* - Series "A" 551,250 289
700M 6% 3/15/2012 - Series "E" 792,631 416
130M Coventry 6.7% 12/15/2009 156,975 83
Griswold:
250M 5 3/4% 4/15/2010 263,750 139
100M 6 1/4% 6/15/2010 117,250 62
100M Groton City 6 3/4% 6/1/2007 118,500 62
800M New Britain 6% 3/1/2012 907,000 476
250M New Haven 5% 9/1/2017 246,875 130
130M Newton 6.7% 8/15/2010 155,513 82
30M North Canaan 6.9% 1/15/2006 34,875 18
40M Old Saybrook 6 1/2% 2/15/2009 46,950 25
250M Plainfield 6 3/8% 8/1/2011 272,500 143
290M Regional School District #5, 6.3% 3/1/2009 315,013 165
330M Southington 6.55% 4/1/2012 361,762 190
90M Stafford 6.55% 11/15/2008 106,988 56
50M Stratford 6.6% 3/1/2007 58,250 31
250M Westbrook 6.4% 3/15/2010 293,438 154
- -----------------------------------------------------------------------------------------------------------------
6,075,301 3,190
- -----------------------------------------------------------------------------------------------------------------
Health Care--21.1%
Conn. State Health & Educational Facilities Authority Revenue:
450M Bridgeport Hospital 6 1/2% 7/1/2012 493,875 260
35M Capital Asset - Series "C" 6 7/8% 1/1/2010 38,150 20
500M Lawrence & Memorial Hospital 6 3/8% 7/1/2002* 552,500 290
500M Masonicare 5% 7/1/2013 495,625 260
700M New Britain General Hospital 6 1/8% 7/1/2014 759,500 399
325M Stamford Hospital 6 1/2% 7/1/2006 353,031 185
750M Yale-New Haven Hospital 5.7% 7/1/2025* 782,812 411
500M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4% 7/1/2016 553,125 291
- -----------------------------------------------------------------------------------------------------------------
4,028,618 2,116
- -----------------------------------------------------------------------------------------------------------------
Housing--4.2%
750M Connecticut State Housing Finance Authority 6% 11/15/2010 798,750 419
- -----------------------------------------------------------------------------------------------------------------
Transportation--8.9%
Connecticut State Special Tax Oblig. Transportation Infrastructure:
200M 6 1/4% 10/1/2001* 218,250 115
285M 6% 10/1/2009 309,937 163
500M 6 1/2% 10/1/2011 598,750 314
250M 6 1/8% 9/1/2012 288,125 151
250M 6.1% 10/1/2012 271,562 143
- -----------------------------------------------------------------------------------------------------------------
1,686,624 886
- -----------------------------------------------------------------------------------------------------------------
Utilities--4.3%
South Central Conn. Regl. Water Auth. Water Sys. Rev.:
250M 5 7/8% 8/1/2002* 270,938 143
500M 6 1/8% 8/1/2014 541,250 284
- -----------------------------------------------------------------------------------------------------------------
812,188 427
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--9.7%
545M Connecticut State Dev. Auth. Govtl. Lease Rev. 6 1/2%
6/15/2008 615,850 324
Puerto Rico Public Buildings Authority:
375M 6 1/4% 7/1/2013 436,875 229
575M 6 1/4% 7/1/2015 670,594 352
125M Puerto Rico Commonwealth Infrastructure Fing. Auth. Spl. 5%
7/1/2017 124,687 65
- -----------------------------------------------------------------------------------------------------------------
1,848,006 970
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $17,092,661) 98.9% 18,827,400 9,887
Other Assets, Less Liabilities 1.1 214,637 113
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $19,042,037 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--FLORIDA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.1%
Education--.7%
$ 150M Volusia County Edl. Facs. (Stetson University Project) 6
3/8% 6/1/2001* $ 163,500 $ 66
- -----------------------------------------------------------------------------------------------------------------
General Obligation--3.8%
300M Miami 6% 12/1/2010 336,375 136
500M North Springs Improvement District 7% 10/1/2009 613,125 249
- -----------------------------------------------------------------------------------------------------------------
949,500 385
- -----------------------------------------------------------------------------------------------------------------
Health Care--9.6%
350M North Broward Hospital District 6 1/2% 1/1/2002* 385,000 156
1,000M Orange County Health Facs. Auth. (Orlando Regl. Hlthcare)
6 1/4% 10/1/2018 1,150,000 466
750M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4%
7/1/2016 829,687 336
- -----------------------------------------------------------------------------------------------------------------
2,364,687 958
- -----------------------------------------------------------------------------------------------------------------
Housing--1.4%
155M Dade County Hsg. Fin. Auth. Single-Family Mtge. 6.95%
12/15/2012 167,013 68
175M Florida Housing Finance Agency-Residential Mtge.
(Series 2) 8% 12/15/2016 180,073 73
- -----------------------------------------------------------------------------------------------------------------
347,086 141
- -----------------------------------------------------------------------------------------------------------------
Transportation--6.7%
500M Dade County Aviation Revenue Series "A" 6% 10/1/2010 550,625 223
300M Florida State Turnpike Authority Turnpike Revenue 6.35%
7/1/2002* 328,500 133
250M Pensacola Airport Revenue 5.6% 10/1/2017 262,500 106
455M Port Palm Beach District Revenue 6 1/4% 9/1/2008 502,775 204
- -----------------------------------------------------------------------------------------------------------------
1,644,400 666
- -----------------------------------------------------------------------------------------------------------------
Utilities--48.8%
750M Charlotte County Utilities Revenue 6 3/4% 10/1/2003* 858,750 348
1,000M Cocoa Water & Sewer Revenue 5 3/4% 10/1/2017 1,068,750 433
Escambia County Utilities Authority Util. Sys. Rev.:
500M 6 1/4% 1/1/2013 581,250 235
1,000M 6 1/4% 1/1/2015 1,166,250 472
690M Jacksonville Beach Utility Revenue 6 3/4% 10/1/2001* 764,175 310
300M Kissimmee Utility Authority Electric System Revenue 6 1/2%
10/1/2001* 330,000 134
1,495M Lakeland Electric & Water Revenue 6% 10/1/2014 1,700,563 689
395M Miramar Utilities Improvement Revenue 6.4% 10/1/2007 446,350 181
1,000M Plant City Utility System Revenue 6% 10/1/2015 1,142,500 463
300M Reedy Creek Improvement District Utilities Revenue 6 1/2%
10/1/2001* 327,375 133
500M Sarasota County Utility System Revenue 6 1/2% 10/1/2004* 572,500 232
Seminole County Water & Sewer Revenue:
500M 6% 10/1/2009 568,750 230
500M 6% 10/1/2019 573,750 233
1,000M St. Johns County Water & Sewer Revenue 5 1/2% 6/1/2011 1,083,750 439
750M West Melbourne Water & Sewer Revenue 6 3/4% 10/1/2014 862,500 350
- -----------------------------------------------------------------------------------------------------------------
12,047,213 4,882
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--27.1%
400M Florida State Div. Bd. Fin. Dept. General Services 6 3/4%
7/1/2001* 441,000 179
500M Fort Meyers Improvement Revenue 5% 12/1/2017 500,625 203
1,000M Indian Trace Community Dev. District 5 3/4% 5/1/2011 1,081,250 438
1,000M Jacksonville Capital Improvement (Gator Bowl Project) 5
7/8% 10/1/2015 1,071,250 434
350M Jacksonville Excise Taxes Revenue 6 1/2% 10/1/2013 390,250 158
600M Orange County Tourist Development Tax Revenue 5.9% 10/1/2010 674,250 273
1,000M Palm Beach County Criminal Justice Facilities Revenue 5 3/8%
6/1/20 111,090,000 442
300M St. Lucie County Sales Tax Revenue 6 1/2% 10/1/2002* 334,125 136
1,000M Tampa Sales Tax Revenue 5 3/4% 10/1/2020 1,101,250 446
- -----------------------------------------------------------------------------------------------------------------
6,684,000 2,709
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $21,613,647) 98.1% 24,200,386 9,807
Other Assets, Less Liabilities 1.9 476,353 193
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,676,739 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--GEORGIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.6%
Education--5.4%
Private Colleges & Universities Facilities Authority:
$ 80M Mercer University Project 6.35% 11/1/2006 $ 91,500 $ 273
80M Spelman University Project 6% 6/1/2009 88,000 262
- -----------------------------------------------------------------------------------------------------------------
179,500 535
- -----------------------------------------------------------------------------------------------------------------
General Obligation--25.3%
75M Columbia County School District 6 1/4% 4/1/2013 82,969 248
100M Hall County School District 6.7% 12/1/2014 115,750 345
100M Mitchell County School District 6 1/2% 3/1/2009 113,875 340
125M Paulding County School District 6% 2/1/2013 141,563 422
100M Peach County School District 6.4% 2/1/2019 110,875 331
150M Pike County School District 5.7% 2/1/2016 166,500 496
100M Puerto Rico Commonwealth 6 1/4% 7/1/2012 115,750 345
- -----------------------------------------------------------------------------------------------------------------
847,282 2,527
- -----------------------------------------------------------------------------------------------------------------
Health Care--4.1%
125M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4%
7/1/2016 138,281 412
- -----------------------------------------------------------------------------------------------------------------
Housing--4.8%
150M Georgia State Housing & Finance Authority Revenue 5.7%
12/1/2011 160,500 478
- -----------------------------------------------------------------------------------------------------------------
Transportation--13.8%
300M Metropolitan Atlanta Rapid Transit Authority 6 1/4% 7/1/2011 345,375 1,030
100M Puerto Rico Commonwealth Hwy. & Transn. Auth. 6 1/4%
7/1/2014 117,125 349
- -----------------------------------------------------------------------------------------------------------------
462,500 1,379
- -----------------------------------------------------------------------------------------------------------------
Utilities--32.8%
25M Bartow County Water & Sewer Revenue 6.05% 9/1/2007 27,219 81
95M Brunswick Water & Sewer Revenue 6.1% 10/1/2019 109,131 325
85M Conyers Water & Sewer Revenue 6.45% 7/1/2010 94,881 283
80M Cordele Combined Public Utilities Revenue 6.4% 11/1/2014 89,900 268
250M Fulton County Water & Sewer Revenue 6 3/8% 1/1/2014 294,375 878
Georgia Municipal Gas Authority Revenue:
80M 6.8% 11/1/2009 92,100 275
100M 5.8% 1/1/2015 107,500 320
150M Milledgeville Water & Sewer Revenue 6% 12/1/2021 171,750 512
100M St. Marys Water & Sewer Revenue 6 1/8% 7/1/2018 114,000 340
- -----------------------------------------------------------------------------------------------------------------
1,100,856 3,282
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.4%
80M Appling County Dev. Auth. Poll. Ctl. Rev. 7.1% 1/1/2014 91,400 272
80M Downtown Smyrna Development Authority Revenue 6.7% 2/1/2020 92,500 276
50M East Point Building Authority Revenue 6% 2/1/2011 54,250 162
125M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2013 145,625 434
- -----------------------------------------------------------------------------------------------------------------
383,775 1,144
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $2,933,044) 97.6% 3,272,694 9,757
Other Assets, Less Liabilities 2.4 81,589 243
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,354,283 $10,000
=================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MARYLAND FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.0%
Certificates of Participation--.3%
$ 30M Baltimore Series "B" 7 1/4% 4/1/2016 $ 32,325 $ 26
- -----------------------------------------------------------------------------------------------------------------
Education--7.7%
Morgan State University Academic & Aux. Facs. Fees Revenue:
90M 7% 7/1/2000* 97,987 79
500M 6.05% 7/1/2015 570,625 457
200M 6.1% 7/1/2020 232,500 186
50M University of Maryland Sys. Aux. Fac. & Tuition Rev. 6.3%
2/1/2001* 54,125 43
- -----------------------------------------------------------------------------------------------------------------
955,237 765
- -----------------------------------------------------------------------------------------------------------------
General Obligation--28.7%
350M Anne Arundel County Water & Sewer 6.3% 8/1/2015 390,688 312
Baltimore, Maryland:
100M 6.3% 10/15/2004 112,250 90
100M 7% 10/15/2009 122,000 98
250M 5 5/8% 10/15/2012 269,375 215
100M 5 5/8% 10/15/2013 107,250 86
55M Carroll County 6 1/4% 11/1/2001* 60,088 48
100M Chesapeake Beach 6 1/2% 5/1/2012 106,875 86
Frederick:
100M 6 1/8% 12/1/2008 109,375 88
200M 6 1/8% 10/1/2014 218,500 175
60M Frederick County 6 5/8% 8/1/2003* 67,950 54
Puerto Rico Commonwealth:
105M 6.6% 7/1/2002* 116,944 94
650M 6 1/4% 7/1/2012 752,375 603
250M 5.65% 7/1/2015 273,125 219
500M Queen Annes County 5.6% 11/15/2015 531,250 425
325M Washington County 5.8% 1/1/2013 349,781 280
- -----------------------------------------------------------------------------------------------------------------
3,587,826 2,873
- -----------------------------------------------------------------------------------------------------------------
Health Care--20.4%
500M Calvert County Maryland Economic Development Authority
5% 12/1/2017 492,500 395
250M Maryland State Indl. Dev. Fing. Auth. (Holy Cross Health System)
5.7% 12/1/2010 272,813 219
Maryland State Health & Higher Education Facilities Authority:
90M Francis Scott Key Medical Center 6 3/4% 7/1/2000* 97,425 78
500M Maryland General Hospital 6 1/8% 7/1/2014 546,250 437
20M Memorial Hospital 7% 7/1/2007 21,275 17
140M Sinai Hospital of Baltimore 7% 7/1/2000* 152,425 122
110M Suburban Hospital 6% 7/1/2002* 117,975 94
65M University of Maryland Medical System 7% 7/1/2001* 72,231 58
325M Puerto Rico Indl. Tourist Edl. Med. and Env. Ctl. Facs. 6 1/4% 7/1/2016 359,531 288
350M Takoma Park Hospital Facilities (Adventist Hosp.) 6 1/2% 9/1/2012 411,250 329
- -----------------------------------------------------------------------------------------------------------------
2,543,675 2,037
- -----------------------------------------------------------------------------------------------------------------
Housing--13.9%
250M Baltimore County Mortgage Revenue (Old Orchard Apts.) 7% 7/1/2016 273,438 219
Maryland State Community Dev. Admin. Dept. Hsg. & Cmnty. Dev.:
45M 7% 6/1/2011 49,106 39
345M 7% 4/1/2014 376,050 301
600M 5 7/8% 7/1/2016 636,000 510
200M 5.6% 3/1/2017 207,500 166
180M Montgomery County Single Family Mortgage Revenue 6 1/2% 7/1/2011 195,300 156
- -----------------------------------------------------------------------------------------------------------------
1,737,394 1,391
- -----------------------------------------------------------------------------------------------------------------
Transportation--7.4%
Maryland State Department of Transportation:
60M 6 3/8% 9/1/2006 64,200 51
500M 6.79% 7/1/2012** 249,375 200
525M Puerto Rico Highway & Transportation Authority 6 1/4% 7/1/2014 614,906 493
- -----------------------------------------------------------------------------------------------------------------
928,481 744
- -----------------------------------------------------------------------------------------------------------------
Utilities--9.5%
250M Baltimore Revenue Water Project 5.8% 7/1/2015 $ 269,062 $ 216
Baltimore Wastewater Utilities Revenue:
165M 6 1/2% 7/1/2000* 174,694 140
215M 6 1/4% 7/1/2002* 236,500 189
200M 6% 7/1/2015 227,250 182
275M Puerto Rico Electric Power Authority 5 1/4% 7/1/2015 282,563 226
- -----------------------------------------------------------------------------------------------------------------
1,190,069 953
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--10.1%
250M Baltimore Convention Center 6.1% 9/1/2013 268,437 215
35M Maryland Industrial Financing Authority 7% 7/1/2010 38,719 31
250M Maryland State Stadium Authority 5 7/8% 12/15/2013 268,750 215
100M Montgomery County Parking Revenue (Bethesda Parking Lot)
6 1/4% 6/1/2009 109,000 87
500M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2015 583,125 467
- -----------------------------------------------------------------------------------------------------------------
1,268,031 1,015
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $11,187,064) 98.0% 12,243,038 9,804
Other Assets, Less Liabilities 2.0 244,466 196
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $12,487,504 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of discount
on date purchased.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MASSACHUSETTS FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--101.1%
Education--12.6%
Massachusetts Health & Education Facilities Authority:
$ 250M Berklee College of Music 5% 10/1/2016 $ 248,750 $ 105
425M Northeastern University 7 1/8% 10/1/2000* 466,437 197
1,000M Massachusetts State Indl. Fin. Agy. (Suffolk University)
5 1/4% 7/1/2017 1,011,250 428
1,000M University of Massachusetts Building Authority Revenue 6 7/8% 5/1/2014 1,258,750 533
- -----------------------------------------------------------------------------------------------------------------
2,985,187 1,263
- -----------------------------------------------------------------------------------------------------------------
General Obligation--20.5%
Boston:
250M 7 3/8% 2/1/2000* 270,938 114
750M 5 7/8% 8/1/2012 800,625 339
Massachusetts General Obligations:
300M 7% 7/1/2009 367,602 156
1,000M 6% 8/1/2010 1,135,530 480
1,100M New Bedford 5 5/8% 10/1/2016 1,155,000 489
150M North Borough 7.2% 11/1/2003 156,536 66
150M Rockport Unlimited Tax School Project Loan 6.9% 12/15/1999* 162,375 69
Wareham:
225M 7.05% 1/15/2001* 250,031 106
500M 7.1% 1/15/2001* 556,250 235
- -----------------------------------------------------------------------------------------------------------------
4,854,887 2,054
- -----------------------------------------------------------------------------------------------------------------
Health Care--30.9%
Massachusetts Health & Educational Facilities Authority:
Capital Asset Program:
225M 7.35% 8/1/2008 241,875 102
400M 7.2% 7/1/2009 428,000 181
500M Carney Hospital 7 3/4% 7/1/2000* 553,125 234
1,000M Hallmark Health System 5% 7/1/2017 978,750 414
750M Massachusetts General Hospital 6 1/4% 7/1/2012 847,500 359
570M Milton Hospital 7% 7/1/2016 620,588 263
1,500M Mt. Auburn Hospital 6 1/4% 8/15/2014 1,657,500 701
1,000M Partners Healthcare System 5 1/4% 7/1/2016 1,006,250 426
400M South Shore Hospital 7 1/2% 7/1/2000* 440,000 186
490M University Hospital 7 1/4% 7/1/2019 534,712 226
- -----------------------------------------------------------------------------------------------------------------
7,308,300 3,092
- -----------------------------------------------------------------------------------------------------------------
Housing--5.2%
Massachusetts Housing Finance Agency:
1,000M 6% 12/1/2012 1,070,000 453
140M 7.7% 12/1/2017 146,825 62
- -----------------------------------------------------------------------------------------------------------------
1,216,825 515
- -----------------------------------------------------------------------------------------------------------------
Transportation--10.3%
Massachusetts Bay Transportation Authority:
690M Series "A" 7.65% 8/1/2000* 763,312 323
1,500M Series "A" 5.8% 3/1/2013 1,665,225 705
- -----------------------------------------------------------------------------------------------------------------
2,428,537 1,028
- -----------------------------------------------------------------------------------------------------------------
Utilities--21.6%
Boston Water & Sewer Commission:
850M 7% 11/1/2001* 950,938 402
100M 7 1/4% 11/1/2006 102,815 44
1,035M 5 3/4% 11/1/2013 1,147,556 486
475M Lynn Water & Sewer Commission 7 1/4% 12/1/2000* 525,469 222
1,250M Massachusetts State Water Resource Authority 5% 3/1/2022 1,215,625 514
1,000M South Essex Sewer District 6 3/4% 6/1/2004* 1,151,250 487
- -----------------------------------------------------------------------------------------------------------------
5,093,653 2,155
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $21,585,655) 23,887,389 10,107
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.8%
200M Puerto Rico Commonwealth Government Development Bank
Adjustable Rate Note 3.35% (cost $200,000)** 200,000 84
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $21,785,655) 101.9% 24,087,389 10,191
Excess of Liabilities Over Other Assets (1.9) (452,044) (191)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $23,635,345 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset weekly by the issuer. Interest rate shown
is the rate in effect at December 31, 1997.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NEW JERSEY FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--100.1%
Certificates of Participation--2.7%
$1,000M Hudson County Correctional Facility 7 1/4% 12/1/2000* $ 1,106,250 $ 181
500M Mantua Township School District 7 1/4% 6/30/2000* 547,500 89
- -----------------------------------------------------------------------------------------------------------------
1,653,750 270
- -----------------------------------------------------------------------------------------------------------------
Education--2.3%
1,300M New Jersey Edl. Facs. Fing. Auth. (Seton Hall Univ.) 6 1/4%
7/1/2010 1,404,000 229
- -----------------------------------------------------------------------------------------------------------------
General Obligation--19.0%
1,750M Atlantic City Board of Education 6.1% 12/1/2015 2,005,938 327
Essex County Improvement Authority:
1,500M County College Project 6.9% 12/1/2004* 1,758,750 287
Orange School District:
1,025M Series "A" 6.95% 7/1/2014 1,192,844 195
1,220M Series "B" 6.95% 7/1/2014 1,418,250 232
1,000M New Jersey State Various Purposes 6% 2/15/2011 1,132,390 185
1,550M Puerto Rico Commonwealth 6 1/4% 7/1/2013 1,815,437 296
Union City:
1,000M 6.7% 9/1/2002* 1,121,250 183
995M 6.4% 11/1/2013 1,161,663 190
- -----------------------------------------------------------------------------------------------------------------
11,606,522 1,895
- -----------------------------------------------------------------------------------------------------------------
Health Care--25.9%
New Jersey Health Care Facilities Financing Authority:
1,000M AHS Hospital Corp. 5% 7/1/2016 988,750 162
1,250M Bayonne Hospital 6 1/4% 7/1/2012 1,379,687 225
400M Community Medical Center 7% 7/1/2009 424,500 69
1,745M General Hospital Center at Passaic 6% 7/1/2014 1,882,419 308
750M Holy Name Hospital 7% 7/1/2000* 816,562 133
1,100M Hunterdon Hospital 7% 7/1/2020 1,183,875 193
1,750M Monmouth Medical Center 6 1/4% 7/1/2016 1,911,875 312
1,500M Ocean County Medical Center 6.9% 7/1/2007 1,666,875 272
3,120M Riverview Medical Center 6 1/4% 7/1/2011 3,638,700 594
825M St. Barnabas Medical Center 7 1/4% 7/1/2018 876,562 143
1,000M St. Peter's Medical Center Series "E" 6 7/8% 7/1/2001* 1,106,250 181
- -----------------------------------------------------------------------------------------------------------------
15,876,055 2,592
- -----------------------------------------------------------------------------------------------------------------
Housing--4.5%
New Jersey State Housing & Mortgage Financing Agency:
380M Series "A" 7 1/2% 4/1/2015 400,425 65
420M Series "E" 7.65% 10/1/2016 445,200 73
1,385M Series "C" 7 3/8% 10/1/2017 1,464,637 239
450M Series "B" 8.1% 10/1/2017 465,431 76
- -----------------------------------------------------------------------------------------------------------------
2,775,693 453
- -----------------------------------------------------------------------------------------------------------------
Transportation--3.4%
900M Delaware River Port Authority 7 3/8% 1/1/2007 947,196 155
1,000M New Jersey State Highway Authority (Garden State Parkway)
6.2% 1/1/2010 1,138,750 186
- -----------------------------------------------------------------------------------------------------------------
2,085,946 341
- -----------------------------------------------------------------------------------------------------------------
Utilities--13.7%
1,000M Bergen County Util. Auth. Water Pollution Ctl. 6 1/2% 6/15/2002* 1,108,750 181
1,000M Evesham Municipal Utilities Authority 7% 7/1/2000* 1,070,000 175
500M Lower Township Municipal Utilities Authority 7% 12/1/2000* 549,375 90
New Jersey Wastewater Treatment Trust:
1,435M 6 1/4% 4/1/2010 1,583,881 259
1,310M 7% 7/1/2011 1,629,312 266
1,140M Passaic Valley Water Commission 6.4% 12/15/2002* 1,269,675 207
1,000M Puerto Rico Commonwealth Aqueduct & Sewer Authority 6 1/4% 7/1/2013 1,171,250 191
- -----------------------------------------------------------------------------------------------------------------
8,382,243 1,369
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--28.6%
2,900M Atlantic County Impt. Auth. Lux. Tax. (Convention Center) 7.4% 7/1/2016 3,712,000 606
350M Cape May County Indl. Pollution Control Fin. Auth. 6.8% 3/1/2021 439,688 72
1,250M Casino Reinvestment Dev. Auth. Pkg. Fee Rev. 5 1/4% 10/1/2013 1,265,625 206
1,500M Essex County Improvement Authority Revenue 5 3/4% 7/1/2027 1,576,875 257
New Jersey Economic Development Authority:
Educational Testing Service:
1,000M 5.9% 5/15/2015 1,078,750 176
2,000M 6 1/8% 5/15/2015 2,197,500 359
2,185M Market Transition Facility 5 7/8% 7/1/2011 2,357,069 385
1,775M N.J. Performing Arts Center 6% 6/15/2012 2,025,719 330
Puerto Rico Public Buildings Authority:
1,250M Series "A" 6 1/4% 7/1/2013 1,456,250 238
1,195M Series "A" 6 1/4% 7/1/2014 1,393,669 228
- -----------------------------------------------------------------------------------------------------------------
17,503,145 2,857
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $55,271,895) 100.1% 61,287,354 10,006
Excess of Liabilities Over Other Assets (.1) (33,866) (6)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $61,253,488 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--NORTH CAROLINA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.4%
Certificates of Participation--7.2%
$100M Charlotte Convention Facilities Project 6 3/4% 12/1/2001* $ 111,125 $ 161
100M Cumberland County Civic Center Project 6.3% 12/1/2008 112,625 164
275M New Hanover County Project 5% 12/1/2017 271,219 394
- -----------------------------------------------------------------------------------------------------------------
494,969 719
- -----------------------------------------------------------------------------------------------------------------
Education--3.9%
250M North Carolina Cent. Univ. Hsg. Rev. 5.6% 11/1/2012 265,937 387
- -----------------------------------------------------------------------------------------------------------------
General Obligation--40.1%
250M Cleveland County 5 1/2% 3/1/2012 264,688 385
200M Cumberland County 5 1/2% 4/1/2012 211,500 307
200M Currituck County 5.4% 4/1/2013 208,500 303
200M Gaston County 5.7% 3/1/2013 212,750 309
220M Laurinburg 5.3% 6/1/2012 228,800 332
200M Mecklenburg County 6.2% 1/1/2002* 216,250 314
200M Morganton 5.7% 6/1/2014 213,750 311
400M Onslow County 5.7% 3/1/2011 432,000 628
225M Puerto Rico Commonwealth 6 1/4% 7/1/2012 260,438 378
280M Rowan County 5.6% 4/1/2014 297,500 432
200M Watauga County 5.9% 6/1/2014 215,250 313
- -----------------------------------------------------------------------------------------------------------------
2,761,426 4,012
- -----------------------------------------------------------------------------------------------------------------
Health Care--5.1%
150M New Hanover County (New Hanover Regional Medical Center)
5 3/4% 10/1/2026* 158,062 230
175M Puerto Rico Indl. Tourist Edl. Med. and Env. Ctl. Facs. 61/4% 7/1/2016 193,594 281
- -----------------------------------------------------------------------------------------------------------------
351,656 511
- -----------------------------------------------------------------------------------------------------------------
Housing--2.0%
125M North Carolina Housing Finance Agency Multi-Family 6.6% 7/1/2017 137,187 199
- -----------------------------------------------------------------------------------------------------------------
Transportation--6.8%
400M Puerto Rico Commonwealth Highway & Transportation Authority
6 1/4% 7/1/2014 468,500 681
- -----------------------------------------------------------------------------------------------------------------
Utilities--24.1%
250M Asheville Water System Revenue 5 5/8% 8/1/2013 266,875 388
250M Buncombe County Solid Waste System 5.6% 3/1/2011 266,875 388
390M Fayetteville Public Works Commission Revenue 5.7% 2/1/2010 420,713 611
250M Kinston Enterprise System Revenue 5.7% 4/1/2012 269,063 391
200M North Carolina Eastern Municipal Power Agency 5.6% 1/1/2010 214,250 311
200M North Carolina Municipal Power Agency (Catawba Electric) 6% 1/1/2010 225,250 327
- -----------------------------------------------------------------------------------------------------------------
1,663,026 2,416
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--8.2%
250M Puerto Rico Commonwealth Infrastructure Fing. Auth. Spl. 5% 7/1/2017 249,375 362
270M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2012 314,212 457
- -----------------------------------------------------------------------------------------------------------------
563,587 819
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $6,217,678) 97.4% 6,706,288 9,744
Other Assets, Less Liabilities 2.6 176,069 256
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $6,882,357 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--PENNSYLVANIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.0%
Education--6.5%
$1,000M Allegheny County Higher Educ. Bldg. Auth. (Duquesne Univ.)
5% 3/1/2016 $ 995,000 $ 226
675M Northeast. Pa. Hosp. & Ed. Auth. (Luzerne Cnty. Cmnty. College)
6.55% 2/15/2005* 762,750 174
1,000M Philadelphia Hosp. & Higher Edl. Facs. Auth. (Cmnty. College)
6 1/8% 5/1/2014 1,092,500 249
- -----------------------------------------------------------------------------------------------------------------
2,850,250 649
- -----------------------------------------------------------------------------------------------------------------
General Obligation--22.2%
1,470M Erie 5.7% 5/15/2012 1,563,713 356
1,310M General McLane School District 5 3/4% 5/15/2013 1,393,512 317
700M Jeannette School District 6.65% 6/15/2001* 756,875 172
1,000M Philadelphia 6% 11/15/2014 1,081,250 246
1,500M Pittsburgh 5 1/2% 9/1/2014 1,629,375 371
Shaler Area School District:
1,500M 5.6% 11/15/2018** 519,375 118
1,000M 5.65% 11/15/2021** 295,000 67
1,000M Stroudsburg Area School District 5.8% 10/1/2010 1,070,000 243
800M Trinity Area School District 6 5/8% 11/1/2001* 869,000 197
565M Venango County 7% 7/15/2000* 605,256 138
- -----------------------------------------------------------------------------------------------------------------
9,783,356 2,225
- -----------------------------------------------------------------------------------------------------------------
Health Care--22.9%
Allegheny County Hospital Development Authority:
1,000M Allegheny General Hospital Project 6.2% 9/1/2015 1,102,500 251
Health Center - University of Pittsburgh:
1,000M 5.6% 4/1/2013 1,057,500 241
1,000M 5.65% 4/1/2014 1,062,500 241
1,250M South Hills Health System 5.8% 5/1/2016 1,328,125 302
1,500M Berks County Mun. Auth. Hosp. (Reading Hosp. Med. Ctr.) 5.7%
10/1/2014 1,644,375 374
1,100M Blair County Hosp. Auth. Rev. (Altoona Hosp.) 6 3/8%
7/1/2014 1,196,250 272
1,000M Dauphin County Gen. Health System (Pinnacle Health System)
5 1/2% 5/15/2013 1,046,250 238
1,000M Pennsylvania State Higher Edl. Facs. Auth. Health Svcs.
5.7% 11/15/2011 1,088,750 248
500 M St. Mary Hosp. Auth., Langhorne (Franciscan Health) 7% 7/1/2014 527,500 120
- -----------------------------------------------------------------------------------------------------------------
10,053,750 2,287
- -----------------------------------------------------------------------------------------------------------------
Housing--2.4%
Pennsylvania Housing Finance Agency Single-Family Mtge.:
460M 7.15% 4/1/2015 489,900 112
535M 7.3% 10/1/2017 572,450 130
- -----------------------------------------------------------------------------------------------------------------
1,062,350 242
- -----------------------------------------------------------------------------------------------------------------
Utilities--32.5%
Allegheny County Sanitation Authority Sewer Revenue:
1,100M 6 1/2% 12/1/2001* 1,192,125 271
1,000M 6 1/4% 12/1/2014 1,102,500 250
1,000M Easton Area Joint Sewer Authority 5% 12/1/2014 993,750 226
350M Harrisburg Authority Water Revenue 6 1/2% 8/15/2002* 382,813 87
1,000M North Pennsylvania Water Authority 6 7/8% 11/1/2004* 1,158,750 264
1,000M North Wales Water Authority 6 3/4% 11/1/2004* 1,143,750 260
Philadelphia Water & Wastewater:
1,230M 6 1/4% 8/1/2011 1,409,887 321
2,000M 6 1/4% 8/1/2012 2,302,500 524
2,950M Pittsburgh Water & Sewer Authority 6 1/2% 9/1/2013 3,503,125 797
1,000M Washington County Indl. Dev. Auth. (West Penn. Power)
6.05% 4/1/2014 1,081,250 246
- -----------------------------------------------------------------------------------------------------------------
14,270,450 3,246
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--12.5%
1,500M Harrisburg Authority Pooled Bond Program 5 5/8% 4/01/2015 1,571,250 357
1,000M Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. 7%
6/15/2005* 1,167,500 266
1,000M Pennsylvania State Industrial Development Authority 6%
1/1/2012 1,085,000 247
1,000M Philadelphia Authority for Ind. Dev. Lease Rev. 5.4%
2/15/2017 1,030,000 234
500M Somerset County Gen. Auth. Commonwealth Lease Rev. 7%
10/15/2001* 549,375 125
100M Washington County Auth. Lease Rev. 7.45% 6/15/2000* 110,500 25
- -----------------------------------------------------------------------------------------------------------------
5,513,625 1,254
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $39,532,135) 99.0% 43,533,781 9,903
Other Assets, Less Liabilities 1.0 428,426 97
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $43,962,207 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of original issue discount.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--VIRGINIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.6%
Education--7.8%
$ 575M George Mason University 6 3/8% 8/1/2016 $ 638,250 $ 271
1,100M Norfolk Redev. & Hsg. Auth. (Tidewater Cmnty. College)
5 7/8% 11/1/2015 1,186,625 504
- -----------------------------------------------------------------------------------------------------------------
1,824,875 775
- -----------------------------------------------------------------------------------------------------------------
General Obligation--6.7%
1,000M Chesapeake Public Improvement 5% 5/1/2013 1,018,750 433
500M Virginia State Public School Authority 6 1/2% 8/1/2013 559,375 238
- -----------------------------------------------------------------------------------------------------------------
1,578,125 671
- -----------------------------------------------------------------------------------------------------------------
Health Care--18.5%
1,150M Danville Ind. Dev. Auth. (Danville Reg. Med. Ctr.) 6 3/8%
10/1/2014 1,276,500 543
500M Hanover County Indl. Dev. Auth. (Bon Secours Health Sys. Projs.)
6% 8/15/2010 568,125 241
Roanoke Indl. Dev. Auth. (Roanoke Memorial Hospitals Projects):
295M 6 1/2% 7/1/2000* 312,331 133
255M 7 1/4% 7/1/2000* 278,906 119
1,675M 6 1/8% 7/1/2017 1,917,875 815
- -----------------------------------------------------------------------------------------------------------------
4,353,737 1,851
- -----------------------------------------------------------------------------------------------------------------
Transportation--15.9%
1,000M Puerto Rico Commonwealth Highway & Transportation Authority
6 1/4% 7/1/2014 1,171,250 498
280M Richmond Metro. Auth. Expressway Rev. 7% 10/15/2000* 314,300 134
Washington, D.C. Metropolitan Area Transportation Authority:
1,000M 6% 7/1/2008 1,131,250 481
1,000M 6% 7/1/2010 1,130,000 480
- -----------------------------------------------------------------------------------------------------------------
3,746,800 1,593
- -----------------------------------------------------------------------------------------------------------------
Utilities--24.2%
175M Henry County Public Service Auth. Water & Sewer Rev.
7.2% 11/15/2000* 191,625 81
Leesburg Utility System Revenue:
750M 6.3% 7/1/2002* 825,938 351
650M 5 1/8% 7/1/2017 651,625 277
500M Loudoun County Sanitation Authority Water & Sewer Revenue
6 1/4% 1/1/2010 548,750 233
1,000M Norfolk Water Revenue 5 7/8% 11/1/2015 1,073,750 456
1,000M Prince William County Svce. Auth. Water & Sewer Sys.Rev.
6 1/2% 7/1/2001* 1,092,500 465
560M Roanoke County Water System Revenue 6 1/2% 7/1/2001* 613,200 261
625M Upper Occoquan Sewer Authority Regional Sewer Revenue 6 1/2% 7/1/2001* 684,375 291
- -----------------------------------------------------------------------------------------------------------------
5,681,763 2,415
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--24.5%
1,000M Chesapeake Indl. Dev. Auth. (Chesapeake Court House Proj.)
5 1/4% 6/1/2017 1,012,500 431
700M Frederick County Indl. Dev. Auth. (Govt. Complex Proj.)
6 1/2% 12/1/2014 792,750 337
545M Pamunkey Regional Jail Authority 5 3/4% 7/1/2018 579,744 246
1,000M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2014 1,166,250 496
1,000M Richmond Redev. & Hsg. Auth. (Old Manchester Proj.)
6.8% 3/1/2015 1,130,000 480
1,000M Riverside Regional Jail Authority 5 7/8% 7/1/2014 1,082,500 460
- -----------------------------------------------------------------------------------------------------------------
5,763,744 2,450
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $20,655,669) 22,949,044 9,755
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.4%
$ 100M Roanoke Industrial Development Authority (Carilion Health System)
Adjustable Rate Note 4.80% (cost $100,000)** $ 100,000 $ 42
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $20,755,669) 98.0% 23,049,044 9,797
Other Assets, Less Liabilities 2.0 476,948 203
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $23,525,992 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. Interest rate shown is
the rate in effect at December 31, 1997.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1997
- ------------------------- ------------------ -----------------------------------------------------------------
FIRST INVESTORS FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
NEW YORK INSURED -----------------------------------------------------------------
TAX FREE FUND, INC. CONNECTICUT FLORIDA GEORGIA MARYLAND
- ------------------------- ------------------ -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $177,947,232 $17,092,661 $21,613,647 $2,933,044 $11,187,064
============ =========== =========== ========== ===========
At value (Note 1A) $195,138,525 $18,827,400 $24,200,386 $3,272,694 $12,243,038
Cash 266,846 77,340 140,518 23,676 7,467
Receivables:
Interest 4,178,441 358,024 350,159 66,105 263,106
Shares sold 24,007 77,727 68,015 641 680
------------ ----------- ----------- ---------- -----------
Total Assets 199,607,819 19,340,491 24,759,078 3,363,116 12,514,291
------------ ----------- ----------- ---------- -----------
Liabilities
Payables:
Investment securities purchased -- 247,285 -- -- --
Distributions payable 378,377 12,432 61,359 3,280 20,986
Shares redeemed 205,809 27,000 3,611 5,000 --
Accrued advisory fees 115,510 7,826 10,240 553 3,106
Accrued expenses 32,463 3,911 7,129 -- 2,695
------------ ----------- ----------- ---------- -----------
Total Liabilities 732,159 298,454 82,339 8,833 26,787
------------ ----------- ----------- ---------- -----------
Net Assets $198,875,660 $19,042,037 $24,676,739 $3,354,283 $12,487,504
============ =========== =========== ========== ===========
Net Assets Consist of:
Capital paid in $181,669,158 $17,446,108 $22,087,773 $3,025,504 $11,509,439
Undistributed net
investment income 15,802 1,540 2,227 344 1,108
Accumulated net realized loss
on investments (593) (140,350) -- (11,215) (79,017)
Net unrealized appreciation
in value of investments 17,191,293 1,734,739 2,586,739 339,650 1,055,974
------------ ----------- ----------- ---------- -----------
Total $198,875,660 $19,042,037 $24,676,739 $3,354,283 $12,487,504
============ =========== =========== ========== ===========
Net Assets:
Class A $195,273,314 $16,150,989 $23,839,942 $3,151,576 $10,705,221
Class B $ 3,602,346 $ 2,891,048 $ 836,797 $ 202,707 $ 1,782,283
Shares outstanding (Note 2):
Class A 13,139,889 1,225,916 1,749,872 240,092 797,109
Class B 242,488 219,595 61,413 15,460 132,740
Net asset value and redemption
price per share--Class A $14.86 $13.17 $13.62 $13.13 $13.43
====== ====== ====== ====== ======
Maximum offering price per
share--Class A* $15.85 $14.05 $14.53 $14.01 $14.33
====== ====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $14.86 $13.17 $13.63 $13.11 $13.43
====== ====== ====== ====== ======
<CAPTION>
Statement of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------------
NORTH
MASSACHUSETTS NEW JERSEY CAROLINA PENNSYLVANIA VIRGINIA
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $21,785,655 $55,271,895 $6,217,678 $39,532,135 $20,755,669
=========== =========== ========== =========== ===========
At value (Note 1A) $24,087,389 $61,287,354 $6,706,288 $43,533,781 $23,049,044
Cash 145,680 6,765 19,257 40,342 69,058
Receivables:
Interest 424,192 1,300,043 114,735 604,669 480,555
Shares sold 34,046 8,242 53,850 73,583 5,429
----------- ----------- ---------- ----------- -----------
Total Assets 24,691,307 62,602,404 6,894,130 44,252,375 23,604,086
----------- ----------- ---------- ----------- -----------
Liabilities
Payables:
Investment securities purchased 978,725 988,665 -- --
Distributions payable 43,598 178,158 10,668 230,721 40,275
Shares redeemed 16,500 129,389 -- 32,146 21,156
Accrued advisory fees 9,767 30,611 1,092 18,305 9,738
Accrued expenses 7,372 22,093 13 8,996 6,925
----------- ----------- ---------- ----------- -----------
Total Liabilities 1,055,962 1,348,916 11,773 290,168 78,094
----------- ----------- ---------- ----------- -----------
Net Assets $23,635,345 $61,253,488 $6,882,357 $43,962,207 $23,525,992
=========== =========== ========== =========== ===========
Net Assets Consist of:
Capital paid in $21,333,444 $55,230,803 $6,489,888 $39,958,184 $21,230,426
Undistributed net investment income 167 7,226 308 2,377 2,191
Accumulated net realized loss
on investments -- -- (96,449) -- --
Net unrealized appreciation
in value of investments 2,301,734 6,015,459 488,610 4,001,646 2,293,375
----------- ----------- ---------- ----------- -----------
Total $23,635,345 $61,253,488 $6,882,357 $43,962,207 $23,525,992
=========== =========== ========== =========== ===========
Net Assets:
Class A $22,851,852 $59,242,864 $6,697,250 $42,222,933 $22,136,443
Class B $ 783,493 $ 2,010,624 $ 185,107 $ 1,739,274 $ 1,389,549
Shares outstanding (Note 2):
Class A 1,873,547 4,452,814 528,806 3,179,262 1,673,933
Class B 64,261 151,379 14,622 131,068 105,173
Net asset value and redemption
price per share--Class A $12.20 $13.30 $12.66 $13.28 $13.22
====== ====== ====== ====== ======
Maximum offering price per
share--Class A* $13.01 $14.19 $13.50 $14.17 $14.10
====== ====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $12.19 $13.28 $12.66 $13.27 $13.21
====== ====== ====== ====== ======
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Six Months Ended December 31, 1997
- ------------------------- ------------------ ----------------------------------------------------------------
FIRST INVESTORS FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
NEW YORK INSURED ----------------------------------------------------------------
TAX FREE FUND, INC. CONNECTICUT FLORIDA GEORGIA MARYLAND
- ------------------------- ------------------ ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest income $12,022,802 $ 944,693 $1,327,161 $183,761 $ 640,034
----------- ---------- ---------- -------- ----------
Expenses (Notes 1 and 5):
Advisory fees 1,494,704 127,040 180,696 25,361 87,165
Distribution plan expenses
- --Class A 588,895 30,411 46,863 6,381 20,444
Distribution plan expenses
- --Class B 29,953 17,334 6,614 1,908 13,994
Shareholder servicing costs 164,607 17,467 18,102 4,237 11,715
Professional fees 46,797 9,660 10,657 5,506 8,274
Custodian fees 18,402 3,234 3,957 876 2,614
Reports to shareholders 38,397 2,324 2,390 410 1,172
Bond insurance premiums 28,465 3,032 -- 138 2,442
Other expenses 56,148 5,070 8,510 2,474 2,507
----------- ---------- ---------- -------- ----------
Total expenses 2,466,368 215,572 277,789 47,291 150,327
Less: Expenses waived or assumed (99,647) (62,971) (75,857) (31,376) (78,862)
Custodian fees paid indirectly (13,283) (3,234) (3,957) (866) (2,189)
----------- ---------- ---------- -------- ----------
Expenses--net 2,353,438 149,367 197,975 15,049 69,276
----------- ---------- ---------- -------- ----------
Net investment income 9,669,364 795,326 1,129,186 168,712 570,758
----------- ---------- ---------- -------- ----------
Realized and Unrealized Gain
on Investments (Note 4):
Net realized gain on investments 999,973 50,520 67,791 30,180 42,900
Net unrealized appreciation
of investments 4,334,404 584,046 918,984 119,243 452,934
----------- ---------- ---------- -------- ----------
Net gain on investments 5,334,377 634,566 986,775 149,423 495,834
----------- ---------- ---------- -------- ----------
Net Increase in Net Assets
Resulting from Operations $15,003,741 $1,429,892 $2,115,961 $318,135 $1,066,592
=========== ========== ========== ======== ==========
<CAPTION>
Statement of Operations (Continued)
- -----------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
- -----------------------------------------------------------------------------------------------------------------
NORTH
MASSACHUSETTS NEW JERSEY CAROLINA PENNSYLVANIA VIRGINIA
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest income $1,346,062 $3,490,649 $325,628 $2,485,769 $1,251,923
---------- ---------- -------- ---------- ----------
Expenses (Notes 1 and 5):
Advisory fees 173,659 453,656 46,342 330,424 168,175
Distribution plan expenses
- --Class A 45,042 117,517 12,101 85,681 42,401
Distribution plan expenses
- --Class B 6,339 17,297 1,282 12,159 12,227
Shareholder servicing costs 22,584 43,270 6,607 31,722 22,411
Professional fees 12,057 25,692 6,857 10,773 11,294
Custodian fees 4,019 7,765 1,527 9,185 3,849
Reports to shareholders 3,433 5,968 682 4,394 3,123
Bond insurance premiums 700 2,000 510 1,498 2,561
Other expenses 7,612 19,302 2,532 12,232 7,075
---------- ---------- -------- ---------- ----------
Total expenses 275,445 692,467 78,440 498,068 273,116
Less: Expenses waived or assumed (81,986) (90,731) (51,264) (110,141) (80,537)
Custodian fees paid indirectly (3,152) (6,003) (1,431) (4,297) (3,435)
---------- ---------- -------- ---------- ----------
Expenses--net 190,307 595,733 25,745 383,630 189,144
---------- ---------- -------- ---------- ----------
Net investment income 1,155,755 2,894,916 299,883 2,102,139 1,062,779
---------- ---------- -------- ---------- ----------
Realized and Unrealized Gain
on Investments (Note 4):
Net realized gain on investments 140,093 538,959 14,963 499,152 55,541
Net unrealized appreciation
of investments 551,435 1,458,613 254,334 1,260,229 841,380
---------- ---------- -------- ---------- ----------
Net gain on investments 691,528 1,997,572 269,297 1,759,381 896,921
---------- ---------- -------- ---------- ----------
Net Increase in Net Assets
Resulting from Operations $1,847,283 $4,892,488 $569,180 $3,861,520 $1,959,700
========== ========== ======== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE
FIRST INVESTORS INSURED TAX FREE FUND
NEW YORK INSURED ---------------------------
TAX FREE FUND, INC. CONNECTICUT
-------------------------- ---------------------------
Year Ended December 31 1997 1996 1997 1996
- ------------------------------------------------------- -------------------------- ---------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets From Operations
Net investment income $ 9,669,364 $ 10,253,917 $ 795,326 $ 813,628
Net realized gain (loss) on investments 999,973 1,289,959 50,520 49,894
Net unrealized appreciation (depreciation)
of investments 4,334,404 (5,797,415) 584,046 (341,867)
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 15,003,741 5,746,461 1,429,892 521,655
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income--Class A (9,533,619) (10,188,583) (727,487) (763,323)
Net investment income--Class B (124,703) (81,519) (69,611) (47,896)
Net realized gains--Class A (991,578) (1,270,477) -- --
Net realized gains--Class B (18,325) (14,025) -- --
------------ ------------ ----------- -----------
Total distributions (10,668,225) (11,554,604) (797,098) (811,219)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 8,821,313 14,929,752 3,345,337 1,791,879
Value of distributions reinvested 7,725,167 8,479,739 577,348 591,466
Cost of shares redeemed (29,029,473) (29,403,688) (3,536,484) (3,622,967)
------------ ------------ ----------- -----------
(12,482,993) (5,994,197) 386,201 (1,239,622)
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 1,309,248 1,324,681 1,650,444 870,165
Value of distributions reinvested 85,393 43,157 60,562 44,644
Cost of shares redeemed (109,219) (242,836) (396,030) (259,832)
------------ ------------ ----------- -----------
1,285,422 1,125,002 1,314,976 654,977
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions (11,197,571) (4,869,195) 1,701,177 (584,645)
------------ ------------ ----------- -----------
Net increase (decrease) in net assets (6,862,055) (10,677,338) 2,333,971 (874,209)
Net Assets
Beginning of year 205,737,715 216,415,053 16,708,066 17,582,275
------------ ------------ ----------- -----------
End of year + $198,875,660 $205,737,715 $19,042,037 $16,708,066
============ ============ =========== ===========
+Includes undistributed net investment income of $ 15,802 $ 4,760 $ 1,540 $ 3,312
============ ============ =========== ===========
(a)Shares Issued and Redeemed
Class A:
Sold 605,875 1,025,758 261,160 142,380
Issued for distributions reinvested 528,609 582,469 44,937 46,920
Redeemed (1,993,188) (2,024,730) (276,898) (288,759)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding (858,704) (416,503) 29,199 (99,459)
============ ============ =========== ===========
Class B:
Sold 89,912 90,689 127,371 69,093
Issued for distributions reinvested 5,830 2,968 4,708 3,543
Redeemed (7,506) (16,810) (30,991) (20,572)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 88,236 76,847 101,088 52,064
============ ============ =========== ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
- ----------------------------------------------------- ------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------
FLORIDA GEORGIA
-------------------------- ------------------------
Year Ended December 31 1997 1996 1997 1996
- ----------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 1,129,186 $ 1,094,996 $ 168,712 $ 172,346
Net realized gain (loss) on investments 67,791 74,824 30,180 (3,567)
Net unrealized appreciation (depreciation)
of investments 918,984 (389,084) 119,243 (35,533)
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations 2,115,961 780,736 318,135 133,246
------------ ------------ ----------- -----------
Distributions to Shareholders
Net investment income--Class A (1,103,241) (1,080,032) (160,266) (168,808)
Net investment income--Class B (25,765) (17,788) (8,102) (5,554)
Net realized gains--Class A (64,428) -- -- --
Net realized gains--Class B (2,262) -- -- --
------------ ------------ ----------- -----------
Total distributions (1,195,696) (1,097,820) (168,368) (174,362)
------------ ------------ ----------- -----------
Share Transactions (a)
Class A:
Proceeds from shares sold 3,953,847 4,886,609 311,222 708,947
Value of distributions reinvested 639,331 527,296 121,894 130,926
Cost of shares redeemed (4,945,111) (4,030,124) (691,067) (577,642)
------------ ------------ ----------- -----------
(351,933) 1,383,781 (257,951) 262,231
------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold 383,014 270,535 46,095 53,815
Value of distributions reinvested 19,073 11,860 8,065 5,551
Cost of shares redeemed (141,095) (29,524) (11,387) (5,516)
------------ ------------ ----------- -----------
260,992 252,871 42,773 53,850
------------ ------------ ----------- -----------
Net increase (decrease) from share transactions (90,941) 1,636,652 (215,178) 316,081
------------ ------------ ----------- -----------
Net increase (decrease) in net assets 829,324 1,319,568 (65,411) 274,965
Net Assets
Beginning of year 23,847,415 22,527,847 3,419,694 3,144,729
------------ ------------ ----------- -----------
End of year + $ 24,676,739 $ 23,847,415 $ 3,354,283 $ 3,419,694
============ ============ =========== ===========
+ Includes undistributed net investment income of $ 2,227 $ 2,047 $ 344 $ --
============ ============ =========== ===========
(a) Shares Issued and Redeemed
Class A:
Sold 297,950 376,905 24,835 57,305
Issued for distributions 48,100 40,598 9,603 10,551
Redeemed (373,839) (309,903) (54,774) (46,987)
------------ ------------ ----------- -----------
Net increase (decrease) in Class A shares
outstanding (27,789) 107,600 (20,336) 20,869
============ ============ =========== ===========
Class B:
Sold 28,887 20,824 3,668 4,383
Issued for distributions reinvested 1,432 913 635 447
Redeemed (10,782) (2,299) (895) (449)
------------ ------------ ----------- -----------
Net increase in Class B shares outstanding 19,537 19,438 3,408 4,381
============ ============ =========== ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
- ----------------------------------------------------- --------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
--------------------------------------------------------
MARYLAND MASSACHUSETTS
-------------------------- --------------------------
Year Ended December 31 1997 1996 1997 1996
- ----------------------------------------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 570,758 $ 505,439 $ 1,155,755 $ 1,172,357
Net realized gain (loss) on investments 42,900 (12,765) 140,093 85,294
Net unrealized appreciation (depreciation)
of investments 452,934 (142,574) 551,435 (573,806)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 1,066,592 350,100 1,847,283 683,845
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income--Class A (511,125) (471,931) (1,133,213) (1,153,025)
Net investment income--Class B (58,525) (37,153) (26,803) (16,672)
Net realized gains--Class A -- -- (137,168) (83,372)
Net realized gains--Class B -- -- (4,721) (1,922)
------------ ------------ ------------ ------------
Total distributions (569,650) (509,084) (1,301,905) (1,254,991)
------------ ------------ ------------ ------------
Share Transactions (a)
Class A:
Proceeds from shares sold 1,369,331 2,371,706 2,739,539 2,511,826
Value of distributions reinvested 315,673 318,426 983,401 944,356
Cost of shares redeemed (1,531,338) (1,084,280) (3,944,233) (3,529,036)
------------ ------------ ------------ ------------
153,666 1,605,852 (221,293) (72,854)
------------ ------------ ------------ ------------
Class B:
Proceeds from shares sold 755,812 605,384 242,414 202,279
Value of distributions reinvested 33,277 27,636 24,880 16,060
Cost of shares redeemed (90,836) (29,524) (18,083) (6,000)
------------ ------------ ------------ ------------
698,253 603,496 249,211 212,339
------------ ------------ ------------ ------------
Net increase (decrease) from share transactions 851,919 2,209,348 27,918 139,485
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 1,348,861 2,050,364 573,296 (431,661)
Net Assets
Beginning of year 11,138,643 9,088,279 23,062,049 23,493,710
------------ ------------ ------------ ------------
End of year + $ 12,487,504 $ 11,138,643 $ 23,635,345 $ 23,062,049
============ ============ ============ ============
+ Includes undistributed net investment income of $ 1,108 $ -- $ 167 $ 4,428
============ ============ ============ ============
(a) Shares Issued and Redeemed
Class A:
Sold 105,429 185,393 228,885 211,581
Issued for distributions 24,226 24,934 81,842 79,444
Redeemed (118,217) (85,125) (328,701) (296,546)
------------ ------------ ------------ ------------
Net increase (decrease) in Class A shares
outstanding 11,438 125,202 (17,974) (5,521)
============ ============ ============ ============
Class B:
Sold 57,852 47,217 20,137 17,031
Issued for distributions reinvested 2,552 2,165 2,069 1,352
Redeemed (6,964) (2,293) (1,506) (510)
------------ ------------ ------------ ------------
Net increase in Class B shares outstanding 53,440 47,089 20,700 17,873
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (Continued)
- -----------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
-------------------------------------------------------
NEW JERSEY NORTH CAROLINA
--------------------------- --------------------------
Year Ended December 31 1997 1996 1997 1996
- ------------------------------------------------------- --------------------------- --------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 2,894,916 $ 2,916,680 $ 299,883 $ 271,024
Net realized gain (loss) on investments 538,959 70,669 14,963 (23,116
Net unrealized appreciation (depreciation)
of investments 1,458,613 (1,196,743) 254,334 (34,400)
----------- ----------- ------------ ------------
Net increase in net assets resulting from operations 4,892,488 1,790,606 569,180 213,508
----------- ----------- ------------ ------------
Distributions to Shareholders
Net investment income--Class A (2,820,992) (2,869,228) (294,736) (266,604)
Net investment income--Class B (70,065) (49,644) (5,281) (4,745)
Net realized gains--Class A (521,354) (68,924) -- --
Net realized gains--Class B (17,683) (1,745) -- --
----------- ----------- ------------ ------------
Total distributions (3,430,094) (2,989,541) (300,017) (271,349)
----------- ----------- ------------ ------------
Share Transactions (a)
Class A:
Proceeds from shares sold 5,185,860 5,754,747 1,277,363 1,421,600
Value of distributions reinvested 2,163,582 1,964,745 189,740 171,717
Cost of shares redeemed (8,349,542) (6,865,273) (855,438) (697,053)
----------- ----------- ------------ ------------
(1,000,100) 854,219 611,665 896,264
----------- ----------- ------------ ------------
Class B:
Proceeds from shares sold 514,175 662,997 125,284 61,061
Value of distributions reinvested 68,543 34,559 3,236 2,715
Cost of shares redeemed (216,809) (37,693) (83,078) (5,871)
----------- ----------- ------------ ------------
365,909 659,863 45,442 57,905
----------- ----------- ------------ ------------
Net increase (decrease) from share transactions (634,191) 1,514,082 657,107 954,169
----------- ----------- ------------ ------------
Net increase (decrease) in net assets 828,203 315,147 926,270 896,328
Net Assets
Beginning of year 60,425,285 60,110,138 5,956,087 5,059,759
----------- ----------- ------------ ------------
End of year+ $61,253,488 $60,425,285 $ 6,882,357 $ 5,956,087
=========== =========== ============ ============
+ Includes undistributed net investment income of $ 7,226 $ 3,367 $ 308 $ 442
=========== =========== ============ ============
(a) Shares Issued and Redeemed
Class A:
Sold 397,509 444,851 103,107 118,028
Issued for distributions reinvested 164,789 152,014 15,450 14,318
Redeemed (638,130) (532,184) (69,558) (58,047)
----------- ----------- ------------ ------------
Net increase (decrease) in Class A shares
outstanding (75,832) 64,681 48,999 74,299
=========== =========== ============ ============
Class B:
Sold 39,138 51,533 10,154 5,163
Issued for distributions reinvested 5,219 2,676 264 227
Redeemed (16,522) (2,937) (6,823) (495)
----------- ----------- ------------ -----------
Net increase in Class B shares outstanding 27,835 51,272 3,595 4,895
=========== =========== ============ ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
- -------------------------------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------------------
PENNSYLVANIA VIRGINIA
---------------------------- --------------------------
Year Ended December 31 1997 1996 1997 1996
- ------------------------------------------------------- ---------------------------- --------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 2,102,139 $ 1,999,437 $ 1,062,779 $ 1,163,876
Net realized gain (loss) on investments 499,152 92,636 55,541 116,236
Net unrealized appreciation (depreciation)
of investments 1,260,229 (641,156) 841,380 (619,607)
----------- ----------- ------------ ------------
Net increase in net assets resulting from operations 3,861,520 1,450,917 1,959,700 660,505
----------- ----------- ------------ ------------
Distributions to Shareholders
Net investment income--Class A (2,053,887) (1,992,199) (1,017,300) (1,113,699)
Net investment income--Class B (48,614) (22,090) (49,137) (46,545)
Net realized gains--Class A (481,910) (90,955) (53,373) (110,130)
Net realized gains--Class B (19,807) (1,681) (3,353) (6,106)
----------- ----------- ------------ ------------
Total distributions (2,604,218) (2,106,925) (1,123,163) (1,276,480)
----------- ----------- ------------ ------------
Share Transactions (a)
Class A:
Proceeds from shares sold 4,830,698 6,171,576 1,989,565 2,536,360
Value of distributions reinvested 1,549,699 1,238,624 717,022 803,597
Cost of shares redeemed (7,614,846) (4,511,225) (2,405,825) (6,898,896)
----------- ----------- ------------ ------------
(1,234,449) 2,898,975 300,762 (3,558,939)
----------- ----------- ------------ ------------
Class B:
Proceeds from shares sold 965,794 553,480 372,554 596,169
Value of distributions reinvested 48,384 18,267 30,964 39,343
Cost of shares redeemed (83,930) (32,601) (227,855) (431,254)
----------- ----------- ------------ ------------
930,248 539,146 175,663 204,258
----------- ----------- ------------ ------------
Net increase (decrease) from share transactions (304,201) 3,438,121 476,425 (3,354,681)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets 953,101 2,782,113 1,312,962 (3,970,656)
Net Assets
Beginning of year 43,009,106 40,226,993 22,213,030 26,183,686
----------- ----------- ------------ ------------
End of year+ $43,962,207 $43,009,106 $ 23,525,992 $ 22,213,030
=========== =========== ============ ============
+ Includes undistributed net investment income of $ 2,377 $ 2,739 $ 2,191 $ 5,849
=========== =========== ============ ============
(a) Shares Issued and Redeemed
Class A:
Sold 373,121 482,260 155,283 199,610
Issued for distributions reinvested 118,522 96,567 55,601 63,260
Redeemed (582,302) (352,480) (187,941) (548,735)
----------- ----------- ------------ ------------
Net increase (decrease) in Class A shares
outstanding (90,659) 226,347 22,943 (285,865)
=========== =========== ============ ============
Class B:
Sold 73,391 42,789 29,002 46,713
Issued for distributions reinvested 3,687 1,424 2,405 3,098
Redeemed (6,492) (2,514) (17,762) (34,525)
----------- ----------- ------------ ------------
Net increase in Class B shares outstanding 70,586 41,699 13,645 15,286
=========== =========== ============ ============
See notes to financial statements
</TABLE>
Notes to Financial Statements
First Investors New York Insured Tax Free Fund, Inc.
First Investors Multi-State Insured Tax Free Fund
Connecticut, Florida, Georgia, Maryland, Massachusetts,
New Jersey, North Carolina, Pennsylvania and Virginia Funds
1. Significant Accounting Policies--First Investors New York Insured
Tax Free Fund, Inc. ("New York Insured") and First Investors Multi-
State Insured Tax Free Fund ("Multi-State Insured")(collectively,
"Funds") are registered under the Investment Company Act of 1940 (the
"1940 Act") as diversified, open-end management investment companies.
New York Insured consists of a single investment series and Multi-
State Insured consists of seventeen separate investment series. This
report relates to New York Insured and the nine Funds of Multi-State
Insured listed above. Multi-State Insured operates as a series fund,
issuing shares of beneficial interest in each Fund and accounts
separately for the assets, liabilities and operations of each Fund.
The investment objective of New York Insured is to provide a high
level of interest income which is exempt from federal income tax, New
York State and New York City personal income taxes.
The investment objective of each Fund of Multi-State Insured is to
achieve a high level of interest income which is exempt from federal
income tax and, to the extent indicated in the prospectus, from state
and local income taxes for residents of that state.
A. Security Valuation--The municipal securities in which the Funds
invest are traded primarily in the over-the-counter markets. Such
securities are valued daily at their fair value on the basis of
valuations provided by a pricing service approved by the Board of
Directors/Trustees. The pricing service considers security type,
rating, market condition and yield data, as well as market quotations
and prices provided by market makers. "When Issued Securities" are
reflected in the assets of the Funds as of the date the securities are
purchased.
The municipal bonds held by the Funds are insured as to payment of
principal and interest by the issuer or under insurance policies
written by independent insurance companies. The Funds may retain any
insured municipal bond which is in default in the payment of principal
or interest until the default has been cured, or the principal and
interest outstanding are paid by an insurer or the issuer of any
letter of credit or other guarantee supporting such municipal bond. In
such case, it is the Funds' policy to value the defaulted bond daily
based upon the value of a comparable bond which is insured and not in
default. In selecting a comparable bond, the Funds will consider
security type, rating, market condition and yield. Each Fund may
invest up to 35% of its assets in portfolio securities not covered by
the insurance feature.
B. Federal Income Taxes--It is the policy of the Funds to continue to
qualify as regulated investment companies, which can distribute tax
exempt dividends, by complying with the provisions available to
certain investment companies, as defined in the Internal Revenue Code.
The Funds make distributions of income and net realized capital gains
(in excess of any available capital loss carryovers) sufficient to
relieve them from all, or substantially all, federal income taxes.
At December 31, 1997, Funds having capital loss carryovers were as
follows:
Year Capital Loss
Carryovers Expire
-------------------------------------------
MULTI-STATE INSURED Total 2002 2003 2004
- --------------------- -------- -------- -------- --------
CONNECTICUT Fund $140,350 $140,350 $ -- $ --
GEORGIA Fund 11,215 -- 7,648 3,567
MARYLAND Fund 79,017 66,252 -- 12,765
NORTH CAROLINA Fund 96,449 53,037 20,296 23,116
C. Distributions to Shareholders--Dividends from net investment income
are declared daily and paid monthly. Distributions from net realized
capital gains are normally declared and paid annually. Income
dividends and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to
differing treatments for capital loss carryforwards, deferral of wash
sales and post-October capital losses.
D. Expense Allocation--Direct expenses attributable to a Fund are
charged to and paid from the assets of that Fund. Indirect or general
expenses of Multi-State Insured are allocated among and charged to the
assets of each Fund on a fair and equitable basis, which may be based
on the relative assets of each Fund or the nature of the services
performed and relative applicability to each Fund.
E. Security Transactions and Investment Income--Security transactions
are accounted for on the date the securities are purchased or sold.
Cost is determined, and gains and losses are based, on the identified
cost basis for both financial statement and federal income tax
purposes. Interest income is earned from settlement date and recorded
on the accrual basis. Estimated expenses are accrued daily. The Funds'
custodian has provided credits for the New York Insured and the nine
Funds of Multi-State Insured included in this report of $13,283, and
$28,564, respectively, against custodian charges based on the
uninvested cash balances of the Funds.
F. Use of Estimates--The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
2. Capital--Each Fund sells two classes of shares, Class A and Class
B, each with a public offering price that reflects different sales
charges and expense levels. Class A shares are sold with an initial
sales charge of up to 6.25% of the amount invested and together with
the Class B shares are subject to distribution plan fees as described
in Note 5. Class B shares are sold without an initial sales charge,
but are generally subject to a contingent deferred sales charge which
declines in steps from 4% to 0% over a six-year period. Class B shares
automatically convert into Class A shares after eight years. Realized
and unrealized gains or losses, investment income and expenses (other
than distribution plan fees) are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
Of the 1,000,000,000 shares originally authorized, New York Insured
has designated 500,000,000 shares as Class A and 500,000,000 shares as
Class B. Multi-State Insured has established an unlimited number of
shares of beneficial interest for both Class A and Class B shares.
3. Concentration of Credit Risk--The Funds invest in debt instruments
of municipal issuers whose ability to meet their obligations may be
affected by economic developments in a State, industry or region.
4. Security Transactions--For the year ended December 31, 1997,
purchases and sales of municipal securities, other than short-term
municipal notes, were as follows:
Cost Proceeds
of of
Purchases Sales
-------------- ------------
NEW YORK INSURED $ 46,794,858 $ 62,815,019
MULTI-STATE INSURED
- -------------------
CONNECTICUT Fund 4,085,957 2,373,206
FLORIDA Fund 4,479,534 4,962,042
GEORGIA Fund 702,476 923,602
MARYLAND Fund 4,946,013 3,984,406
MASSACHUSETTS Fund 6,850,543 6,318,425
NEW JERSEY Fund 13,021,296 13,892,413
NORTH CAROLINA Fund 2,466,002 1,809,761
PENNSYLVANIA Fund 15,776,584 16,356,165
VIRGINIA Fund 2,564,724 2,169,262
At December 31, 1997, aggregate cost and net unrealized appreciation
of securities for federal income tax purposes were as follows:
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Cost Appreciation Depreciation Appreciation
------------ ------------ ------------ ------------
NEW YORK
INSURED $177,947,825 $17,190,700 $ -- $17,190,700
MULTI-STATE
INSURED
- -----------
CONNECTICUT
Fund 17,092,661 1,734,739 -- 1,734,739
FLORIDA
Fund 21,613,647 2,586,739 -- 2,586,739
GEORGIA
Fund 2,933,044 339,650 -- 339,650
MARYLAND
Fund 11,187,064 1,055,974 -- 1,055,974
MASSACHUSETTS
Fund 21,785,655 2,301,734 -- 2,301,734
NEW JERSEY
Fund 55,271,895 6,015,459 -- 6,015,459
NORTH CAROLINA
Fund 6,217,678 488,610 -- 488,610
PENNSYLVANIA
Fund 39,532,135 4,001,646 -- 4,001,646
VIRGINIA
Fund 20,755,669 2,293,375 -- 2,293,375
5. Advisory Fee and Other Transactions With Affiliates--Certain
officers and directors/trustees of the Funds are officers and
directors of the Funds' investment adviser, First Investors Management
Company, Inc. ("FIMCO"), their underwriter, First Investors
Corporation ("FIC") and/or their transfer agent, Administrative Data
Management Corp. ("ADM"). Officers and directors/trustees of the Funds
received no remuneration from the Funds for serving in such
capacities. Their remuneration (together with certain other expenses
of the Funds) was paid by FIMCO or FIC. Effective January 1, 1998,
independent directors/trustees will be remunerated by the Funds.
The Investment Advisory Agreements provide as compensation to FIMCO an
annual fee, payable monthly, at the rate of .75% on the first $250
million of the average daily net assets of each Fund, declining by
.03% on each $250 million thereafter, down to .66% on average daily
net assets over $750 million. For the year ended December 31, 1997,
advisory fees of New York Insured amounted to $1,494,704, of which
$99,647 was waived. For the same period, advisory fees for the nine
Funds of Multi-State Insured included in this report amounted to
$1,592,518, of which $522,277 was waived; other expenses in the amount
of $141,448 were assumed by FIMCO.
For the year ended December 31, 1997, FIC, as underwriter, received
$226,611 in commissions on sales of shares of New York Insured, after
allowing $27,388 to other dealers, and $613,321 in commissions on
sales of shares of the nine Funds of Multi-State Insured included in
this report, after allowing $184,393 to other dealers. Shareholder
servicing costs of New York Insured and the nine Funds of Multi-State
Insured consisted of $143,803, and $130,734, respectively, in transfer
agent fees and out of pocket expenses accrued to ADM.
Pursuant to Distribution Plans adopted by the Funds under Rule 12b-1
of the 1940 Act, each Fund is authorized to pay FIC a fee up to .30%
of the average net assets of the Class A shares and up to 1% of the
average net assets of the Class B shares on an annualized basis each
fiscal year, payable monthly. The fee consists of a distribution fee
and a service fee. The service fee is paid for the ongoing servicing
of clients who are shareholders of that Fund.
This page left blank intentionally.
<TABLE>
<CAPTION>
Financial Highlights
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS NEW YORK
INSURED TAX FREE FUND, INC.
Class A
1993 $14.72 $.809 $ .608 $ 1.417 $.820 $.137
1994 15.18 .758 (1.510) (.752) .768 --
1995 13.66 .738 1.331 2.069 .740 .059
1996 14.93 .719 (.298) .421 .720 .091
1997 14.54 .709 .395 1.104 .708 .076
Class B
1/12/95* to 12/31/95 13.76 .616 1.232 1.848 .619 .059
1996 14.93 .617 (.306) .311 .620 .091
1997 14.53 .608 .406 1.014 .608 .076
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
CONNECTICUT FUND
Class A
1993 $12.05 $.615 $ 1.053 $1.668 $.625 $.043
1994 13.05 .609 (1.480) (.871) .609 --
1995 11.57 .617 1.333 1.950 .620 --
1996 12.90 .619 (.202) .417 .617 --
1997 12.70 .613 .471 1.084 .614 --
Class B
1/12/95* to 12/31/95 11.67 .512 1.242 1.754 .524 --
1996 12.90 .522 (.204) .318 .518 --
1997 12.70 .516 .470 .986 .516 --
FLORIDA FUND
Class A
1993 $12.21 $.664 $ 1.032 $1.696 $.671 $.095
1994 13.14 .642 (1.346) (.704) .646 --
1995 11.79 .640 1.527 2.167 .647 --
1996 13.31 .623 (.198) .425 .625 --
1997 13.11 .624 .547 1.171 .624 .037
Class B
1/12/95* to 12/31/95 11.87 .529 1.460 1.989 .549 --
1996 13.31 .530 (.204) .326 .526 --
1997 13.11 .531 .552 1.083 .526 .037
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS NEW YORK
INSURED TAX FREE FUND, INC.
Class A
1993 $.957 $15.18 9.82 $211,967 1.27 5.35
1994 .768 13.66 (5.03) 193,916 1.28 5.30
1995 .799 14.93 15.45 215,259 1.23 5.10
1996 .811 14.54 2.95 203,496 1.23 4.93
1997 .784 14.86 7.82 195,273 1.17 4.86
Class B
1/12/95* to 12/31/95 .678 14.93 13.66 1,156 2.00+ 4.34+
1996 .711 14.53 2.18 2,242 1.93 4.23
1997 .684 14.86 7.16 3,602 1.87 4.16
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
CONNECTICUT FUND
Class A
1993 $.668 $13.05 14.10 $ 17,202 .80 4.83
1994 .609 11.57 (6.75) 14,848 .87 5.01
1995 .620 12.90 17.18 16,725 .85 4.98
1996 .617 12.70 3.37 15,203 .81 4.92
1997 .614 13.17 8.77 16,151 .80 4.78
Class B
1/12/95* to 12/31/95 .524 12.90 15.28 8.57 1.71+ 4.12+
1996 .518 12.70 2.57 1,505 1.61 4.12
1997 .516 13.17 7.95 2,891 1.60 3.98
FLORIDA FUND
Class A
1993 $.766 $13.14 14.19 $ 21,397 .45 5.20
1994 .646 11.79 (5.39) 19,765 .62 5.24
1995 .647 13.31 18.77 22,229 .75 5.05
1996 .625 13.11 3.34 23,299 .83 4.80
1997 .661 13.62 9.18 23,840 .80 4.71
Class B
1/12/95* to 12/31/95 .549 13.31 17.06 299 1.68+ 4.12+
1996 .526 13.11 2.56 549 1.62 4.01
1997 .563 13.63 8.38 837 1.60 3.91
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS NEW YORK
INSURED TAX FREE FUND, INC.
Class A
1993 N/A N/A 31
1994 N/A N/A 55
1995 N/A N/A 53
1996 N/A N/A 53
1997 1.22 4.81 24
Class B
1/12/95* to 12/31/95 N/A N/A 53
1996 N/A N/A 53
1997 1.92 4.11 24
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
CONNECTICUT FUND
Class A
1993 1.15 4.48 29
1994 1.22 4.66 63
1995 1.20 4.63 26
1996 1.23 4.50 15
1997 1.17 4.41 14
Class B
1/12/95* to 12/31/95 2.07+ 3.76+ 26
1996 2.02 3.71 15
1997 1.97 3.61 14
FLORIDA FUND
Class A
1993 1.10 4.55 53
1994 1.19 4.67 98
1995 1.15 4.65 68
1996 1.16 4.47 55
1997 1.11 4.40 19
Class B
1/12/95* to 12/31/95 2.09+ 3.70+ 68
1996 1.95 3.68 55
1997 1.91 3.60 19
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
GEORGIA FUND
Class A
1993 $11.42 $.603 $ 1.091 $1.694 $.619 $.005
1994 12.49 .584 (1.165) (.581) .579 --
1995 11.33 .653 1.387 2.040 .650 --
1996 12.72 .639 (.161) .478 .648 --
1997 12.55 .639 .578 1.217 .637 --
Class B
1/12/95* to 12/31/95 11.42 .529 1.303 1.832 .542 --
1996 12.71 .563 (.183) .380 .550 --
1997 12.54 .524 .584 1.108 .538 --
MARYLAND FUND
Class A
1993 $12.11 $.653 $ 1.083 $1.736 $.660 $.036
1994 13.15 .644 (1.373) (.729) .651 --
1995 11.77 .668 1.348 2.016 .666 --
1996 13.12 .650 (.235) .415 .655 --
1997 12.88 .652 .549 1.201 .651 --
Class B
1/12/95* to 12/31/95 11.85 .561 1.279 1.840 .570 --
1996 13.12 .555 (.249) .306 .556 --
1997 12.87 .551 .556 1.107 .547 --
MASSACHUSETTS FUND
Class A
1993 $11.71 $.653 $ .716 $1.369 $.660 $.139
1994 12.28 .627 (1.267) (.640) .630 --
1995 11.01 .612 1.227 1.839 .613 .016
1996 12.22 .603 (.256) .347 .602 .045
1997 11.92 .601 .356 .957 .603 .074
Class B
1/12/95* to 12/31/95 11.09 .508 1.155 1.663 .527 .016
1996 12.21 .514 (.263) .251 .506 .045
1997 11.91 .508 .353 .861 .507 .074
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
GEORGIA FUND
Class A
1993 $.624 $12.49 15.16 $ 1,469 .13 4.96
1994 .579 11.33 (4.69) 2,065 .20 4.99
1995 .650 12.72 18.40 3,047 .20 5.41
1996 .648 12.55 3.94 3,269 .38 5.17
1997 .637 13.13 10.00 3,152 .40 5.03
Class B
1/12/95* to 12/31/95 .542 12.71 16.34 97 1.00+ 4.61+
1996 .550 12.54 3.13 151 1.19 4.36
1997 .538 13.11 9.07 203 1.20 4.23
MARYLAND FUND
Class A
1993 $.696 $13.15 14.62 $ 6,643 .45 5.16
1994 .651 11.77 (5.59) 6,904 .45 5.27
1995 .666 13.12 17.50 8,666 .48 5.32
1996 .655 12.88 3.33 10,118 .51 5.10
1997 .651 13.43 9.59 10,705 .50 5.01
Class B
1/12/95* to 12/31/95 .570 13.12 15.82 423 1.38+ 4.42+
1996 .556 12.87 2.45 1,021 1.31 4.30
1997 .547 13.43 8.81 1,782 1.30 4.21
MASSACHUSETTS FUND
Class A
1993 $.799 $12.28 11.93 $23,653 .90 5.37
1994 .630 11.01 (5.30) 20,838 .95 5.45
1995 .629 12.22 17.07 23,180 .90 5.22
1996 .647 11.92 2.99 22,543 .86 5.08
1997 .677 12.20 8.27 22,852 .80 5.01
Class B
1/12/95* to 12/31/95 .543 12.21 15.28 314 1.76+ 4.36+
1996 .551 11.91 2.16 519 1.66 4.28
1997 .581 12.19 7.41 783 1.60 4.21
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
GEORGIA FUND
Class A
1993 1.84 3.24 50
1994 1.93 3.26 78
1995 1.42 4.20 45
1996 1.44 4.11 37
1997 1.33 4.10 21
Class B
1/12/95* to 12/31/95 2.22+ 3.40+ 45
1996 2.25 3.30 37
1997 2.13 3.30 21
MARYLAND FUND
Class A
1993 1.28 4.33 50
1994 1.34 4.37 44
1995 1.24 4.55 49
1996 1.24 4.37 13
1997 1.18 4.33 35
Class B
1/12/95* to 12/31/95 2.19+ 3.61+ 49
1996 2.05 3.57 13
1997 1.98 3.53 35
MASSACHUSETTS FUND
Class A
1993 1.15 5.12 32
1994 1.20 5.20 64
1995 1.15 4.97 40
1996 1.18 4.76 45
1997 1.15 4.66 28
Class B
1/12/95* to 12/31/95 2.01+ 4.10+ 40
1996 1.98 3.96 45
1997 1.95 3.86 28
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5).
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
NEW JERSEY FUND
Class A
1993 $12.67 $.680 $ .947 $ 1.627 $.684 $.103
1994 13.51 .659 (1.448) (.789) .661 --
1995 12.06 .648 1.291 1.939 .652 .097
1996 13.25 .636 (.245) .391 .636 .015
1997 12.99 .630 .427 1.057 .629 .118
Class B
1/12/95* to 12/31/95 12.14 .526 1.199 1.725 .528 .097
1996 13.24 .533 (.253) .280 .535 .015
1997 12.97 .525 .433 .958 .530 .118
NORTH CAROLINA FUND
Class A
1993 $11.37 $.595 $ .962 $1.557 $.604 $.043
1994 12.28 .594 (1.380) (.786) .594 --
1995 10.90 .608 1.391 1.999 .609 --
1996 12.29 .590 (.159) .431 .591 --
1997 12.13 .597 .530 1.127 .597 --
Class B
1/12/95* to 12/31/95 10.99 .492 1.307 1.799 .499 --
1996 12.29 .496 (.161) .335 .495 --
1997 12.13 .497 .534 1.031 .501 --
PENNSYLVANIA FUND
Class A
1993 $12.26 $.667 $ 1.048 $1.715 $.663 $.152
1994 13.16 .627 (1.447) (.820) .630 --
1995 11.71 .638 1.463 2.101 .635 .036
1996 13.14 .622 (.197) .425 .627 .028
1997 12.91 .624 .523 1.147 .624 .153
Class B
1/12/95* to 12/31/95 11.81 .539 1.376 1.915 .549 .036
1996 13.14 .529 (.201) .328 .530 .028
1997 12.91 .526 .510 1.036 .523 .153
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
NEW JERSEY FUND
Class A
1993 $.787 $13.51 13.09 $64,558 .96 5.12
1994 .661 12.06 (5.91) 55,379 .99 5.21
1995 .749 13.25 16.41 59,153 .99 5.06
1996 .651 12.99 3.09 58,823 .98 4.92
1997 .747 13.30 8.36 59,243 .96 4.81
Class B
1/12/95* to 12/31/95 .625 13.24 14.45 957 1.81+ 4.24+
1996 .550 12.97 2.22 1,603 1.78 4.12
1997 .648 13.28 7.56 2,011 1.76 4.01
NORTH CAROLINA FUND
Class A
1993 $.647 $12.28 13.98 $3,883 .13 4.99
1994 .594 10.90 (6.45) 3,872 .20 5.22
1995 .609 12.29 18.72 4,984 .20 5.18
1996 .591 12.13 3.68 5,822 .38 4.94
1997 .597 12.66 9.56 6,697 .40 4.87
Class B
1/12/95* to 12/31/95 .499 12.29 16.65 75 1.00+ 4.38+
1996 .495 12.13 2.85 134 1.20 4.12
1997 .501 12.66 8.71 185 1.20 4.07
PENNSYLVANIA FUND
Class A
1993 $.815 $13.16 14.28 $35,514 .79 5.17
1994 .630 11.71 (6.31) 33,542 .88 5.11
1995 .671 13.14 18.29 39,980 .86 5.07
1996 .655 12.91 3.39 42,228 .86 4.86
1997 .777 13.28 9.14 42,223 .85 4.79
Class B
1/12/95* to 12/31/95 .585 13.14 16.49 247 1.72+ 4.20+
1996 .558 12.91 2.61 781 1.66 4.06
1997 .676 13.27 8.23 1,739 1.65 3.99
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
NEW JERSEY FUND
Class A
1993 1.11 4.97 44
1994 1.14 5.06 60
1995 1.14 4.91 30
1996 1.13 4.77 35
1997 1.11 4.66 22
Class B
1/12/95* to 12/31/95 1.97+ 4.08+ 30
1996 1.93 3.97 35
1997 1.91 3.86 22
NORTH CAROLINA FUND
Class A
1993 1.28 3.83 32
1994 1.44 3.99 61
1995 1.36 4.03 76
1996 1.31 4.02 43
1997 1.23 4.04 30
Class B
1/12/95* to 12/31/95 2.16+ 3.23+ 76
1996 2.12 3.20 43
1997 2.03 3.24 30
PENNSYLVANIA FUND
Class A
1993 1.10 4.86 37
1994 1.13 4.86 81
1995 1.11 4.82 48
1996 1.11 4.61 42
1997 1.10 4.54 37
Class B
1/12/95* to 12/31/95 1.98+ 3.94+ 48
1996 1.91 3.81 42
1997 1.90 3.74 37
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5).
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ---------------------------------------------------------------------------------------------------------------
PER SHARE DATA
--------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
----------------------------------------- ------------------------
Net Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
VIRGINIA FUND
Class A
1993 $12.23 $.636 $ .915 $1.551 $.639 $.082
1994 13.06 .611 (1.383) (.772) .608 --
1995 11.68 .625 1.370 1.995 .629 .036
1996 13.01 .626 (.195) .431 .624 .067
1997 12.75 .615 .504 1.119 .617 .032
Class B
1/12/95* to 12/31/95 11.76 .510 1.286 1.796 .520 .036
1996 13.00 .525 (.194) .331 .524 .067
1997 12.74 .513 .505 1.018 .516 .032
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for a share outstanding, total return,
ratios to average net assets and other supplemental data for each period indicated.
- ------------------------------------------------------------------------------------------------------------
PER SHARE DATA RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
VIRGINIA FUND
Class A
1993 $.721 $13.06 12.94 $24,684 .81 4.97
1994 .608 11.68 (5.97) 22,325 .85 5.01
1995 .665 13.01 17.42 25,193 .81 5.01
1996 .691 12.75 3.47 21,047 .79 4.93
1997 .649 13.22 9.03 22,136 .80 4.78
Class B
1/12/95* to 12/31/95 .556 13.00 15.53 991 1.66+ 4.16+
1996 .591 12.74 2.66 1,166 1.59 4.13
1997 .548 13.21 8.19 1,390 1.60 3.98
<CAPTION>
Financial Highlights (Continued)
The following table sets forth the per share operating performance data for
a share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------
Ratio to Average Net
Assets Before Expenses
Waived or Assumed
-----------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
FIRST INVESTORS MULTI-STATE
INSURED TAX FREE FUND
VIRGINIA FUND
Class A
1993 1.16 4.62 39
1994 1.20 4.66 55
1995 1.16 4.66 34
1996 1.20 4.52 30
1997 1.16 4.42 10
Class B
1/12/95* to 12/31/95 2.02+ 3.80+ 34
1996 2.00 3.72 30
1997 1.96 3.62 10
* Date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed by the investment adviser and/or the transfer agent (Note 5).
See notes to financial statements
</TABLE>
Independent Auditors' Report
To the Shareholders and Boards of Directors/Trustees of
First Investors New York Insured Tax Free Fund, Inc. and
First Investors Multi-State Insured Tax Free Fund
Connecticut, Florida, Georgia, Maryland, Massachusetts,
New Jersey, North Carolina, Pennsylvania and Virginia Funds
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of First Investors New York
Insured Tax Free Fund, Inc. and the nine Funds of First Investors
Multi-State Insured Tax Free Fund listed above as of December 31,
1997, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two
years in the period then ended and financial highlights for the
periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of
December 31, 1997, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of First Investors New York Insured Tax Free Fund,
Inc. and each of the nine Funds of First Investors Multi-State
Insured Tax Free Fund listed above as of December 31, 1997, and the
results of their operations, changes in their net assets and
financial highlights for the periods indicated thereon, in conformity
with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 30, 1998
FIRST INVESTORS NEW YORK INSURED TAX FREE FUND, INC.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
Directors/Trustees
- --------------------------------------------------------------------
James J. Coy (Emeritus)
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
Nancy S. Schaenen
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- --------------------------------------------------------------------
Glenn O. Head
President
Clark D. Wagner
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
Shareholder Information
- --------------------------------------------------------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Eight Penn Center Plaza
Philadelphia, PA 19103
It is the Funds' practice to mail only one copy of their annual and
semi-annual reports to any address at which more than one shareholder
with the same last name has indicated that mail is to be delivered.
Additional copies of the reports will be mailed if requested by any
shareholder in writing or by calling 800-423-4026. The Funds will
ensure that separate reports are sent to any shareholder who
subsequently changes his or her mailing address.
This report is authorized for distribution only to existing
shareholders, and, if given to prospective shareholders, must be
accompanied or preceded by the Funds' prospectus.
<PAGE>
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
95 WALL STREET
NEW YORK, NY 10005
First Investors Logo
Logo is described as follows: The arabic numeral one separated into
seven vertical segments followed by the words "First Investors."
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIMS-149
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" appear in a
box to the right of a circle containing the words "MAILED FROM ZIP
CODE 11201" which appears to the right of the above language in the
printed piece.
Vertically reading from bottom to top in the center of the page the
words "FIRST INVESTORS" appear in the printed piece.
First Investors
Multi-State Insured
Tax Free Fund
Arizona Fund
California Fund
Colorado Fund
Michigan Fund
Minnesota Fund
Missouri Fund
Ohio Fund
Oregon Fund
ANNUAL
REPORT
DECEMBER 31, 1997
Portfolio Manager's Letter
First Investors Multi-State Insured Tax Free Fund
Arizona, California, Colorado, Michigan, Minnesota,
Missouri, Ohio and Oregon Funds
Dear Investor:
1997 was a very good year for the U.S. economy and financial markets.
The economy grew at an annual pace of 3.8%, with the unemployment rate
falling to its lowest level since the 1970's. Despite faster economic
growth, inflation, as measured by the Consumer Price Index, rose less
than 2%, its smallest increase in over ten years. Reflecting the strong
economy, the Federal budget deficit declined substantially and had
almost been eliminated by year-end. Against this backdrop, the Federal
Reserve held monetary policy steady after one small increase in the
benchmark Federal funds rate in March.
Although both the U.S. bond and stock markets suffered setbacks at times
during the year, the combination of moderate growth and low inflation
ultimately provided a rewarding environment for investors. Long-term
bond yields fell to their lowest level in two years, while the broad
stock market indices recorded their third consecutive year of
substantial gains. While many overseas markets were buffeted by the
economic crisis in Southeast Asia, U.S. markets remained relatively
stable or -- in the case of the bond market -- benefited from a "flight
to safety" as investors sought the security of the world's largest and
most efficient financial markets.
Long-term municipal bond yields ended 1997 near their lowest level since
the mid-1970's. Most of the decline in yields occurred during the second
half of the year as the bond market benefited from low inflation in the
U.S. and instability in Southeast Asia. Low yields spurred issuance of
$220 billion of municipal bonds during 1997, the third largest volume of
supply in the market's history. This supply kept municipal bond yields
higher than they might have been otherwise. As a result, municipal bonds
ended the year somewhat cheap relative to taxable bonds, laying the
groundwork for strong performance in 1998.
During the year, the eight Multi-State Funds included in this report had
the following returns on a net asset value basis on Class A and B
shares, respectively: Arizona 9.3% and 8.4%, California 9.7% and 8.8%,
Colorado 9.4% and 8.6%, Michigan 9.4% and 8.5%, Minnesota 8.6% and 7.7%,
Missouri 9.4% and 8.6%, Ohio 8.6% and 7.7%, and Oregon 10.0% and 9.0%.
According to Lipper Analytical Services, Inc., the total returns on the
Class A shares of all the Funds exceeded the average return of their
respective mutual fund peer group as follows: Arizona .68%, California
1.04%, Colorado .20%, Michigan .87%, Minnesota .41%, Missouri .83%, Ohio
.46% and Oregon 1.35%.
The generally good performance of these Funds during 1997 is
attributable to two factors. First, a substantial percentage of each of
the Fund's assets was invested in noncallable bonds. Most municipal
bonds are callable which means that issuers can buy -- or call -- bonds
from investors if interest rates fall. This limits the price
appreciation of callable bonds when interest rates fall as they did in
1997. In contrast, noncallable bonds have unlimited potential to
increase in price. Our holdings of noncallable bonds contributed
significantly to the Funds' total returns. Second, except for a period
in the Spring, the Funds remained substantially fully invested. This
allowed the Funds to earn the highest amount of income possible and
provided the best opportunity to benefit on a total return basis from
falling interest rates.
Investors who buy bond funds -- whether for income or total return --
should be aware that the value of their investment fluctuates as
interest rates change. For example, a 50 basis point (or .5%) increase
in yield on a twenty-year municipal bond results in roughly a 6% decrease
in that bond's price. In each of the last five years, twenty-year municipal
bond yields have fluctuated by more than 50 basis points. In addition,
while the Funds' municipal bonds are insured as to timely payment of
principal and interest, the insurance does not protect the bonds against
changes in market value. Investors should be aware of these risks and
recognize that successful investing generally requires a long-term
commitment to the market.
Following 1997's strong performance, the outlook for U.S. financial
markets continues to be positive, although uncertainties do exist. In
particular, we believe that the economic problems in Southeast Asia will
slow growth in the U.S. However, it is unclear to what extent growth
will be slowed and, consequently, what the ultimate impact will be on
the financial markets. On a positive note, Southeast Asia's problems
should result in lower inflation worldwide. Uncertainty often leads to
volatile markets. During such times, investors are generally best served
by focusing on long-term objectives and maintaining a disciplined
approach to investing.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
January 30, 1998
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--ARIZONA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Arizona Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
ARIZONA GRAPH PLOTS
ARIZONA LEHMAN
NOV 1990 9,375 10,000
DEC 1990 9,337 10,246
DEC 1991 10,241 11,490
DEC 1992 11,345 12,503
DEC 1993 13,033 14,038
DEC 1994 12.298 13,313
DEC 1995 14,562 15,636
DEC 1996 15,100 16,301
DEC 1997 16,502 17,799
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.28% 2.48%
Five Years 7.78% 6.39%
Since Inception
(11/1/90) 8.20% 7.24%
S.E.C. 30-Day Yield 4.21%
Class B Shares
One Year 8.36% 4.36%
Since Inception
(1/12/95) 9.11% 8.25%
S.E.C. 30-Day Yield 3.69%
The graph compares a $10,000 investment in the First Investors Multi-
State Insured Tax Free Fund -- Arizona Fund (Class A shares) beginning
11/1/90 (inception date) with a theoretical investment in the Lehman
Brothers Municipal Bond Index. The Lehman Brothers Municipal Bond
Index is a total return performance benchmark for the long-term
investment grade tax-exempt bond market. Returns and attributes for
the Index are calculated semi-monthly using approximately 21,000
municipal bonds which are priced by Muller Data Corp. The Index does
not take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was
deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line
graph above for Class A shares based on differences in sales loads and
fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 the maximum sales charge was 6.9%).
The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years and
Since Inception would have been 1.78%, 5.56% and 6.27%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been 3.55%.
The Class B "S.E.C. Standardized" Average Annual Total Return for One
Year and Since Inception would have been 3.63% and 7.39%,
respectively, and the S.E.C. 30-Day Yield for December 1997 would have
been 2.98%. Results represent past performance and do not indicate
future results. Investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Lehman Brothers Municipal
Bond Index figures from Lehman Brothers, Inc. and all other figures
from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- California Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
CALIFORNIA GRAPH PLOTS
CALIFORNIA LEHMAN
JAN 1988 9,375 10,000
DEC 1988 10,589 11,016
DEC 1989 11,659 12,203
DEC 1990 12,492 13,093
DEC 1991 13,898 14,683
DEC 1992 15.241 15,978
DEC 1993 17,254 17,939
DEC 1994 16,202 17,012
DEC 1995 19,144 20,004
DEC 1996 19,894 20,854
DEC 1997 21,816 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.66% 2.84%
Five Years 7.44% 6.07%
Ten Years 8.79% 8.11%
S.E.C. 30-Day Yield 4.24%
Class B Shares
One Year 8.79% 4.79%
Since Inception
(1/12/95) 9.26% 8.41%
S.E.C. 30-Day Yield 3.79%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- California Fund (Class A shares)
beginning 1/1/88 with a theoretical investment in the Lehman Brothers
Municipal Bond Index. The Lehman Brothers Municipal Bond Index is a
total return performance benchmark for the long-term investment grade
tax-exempt bond market. Returns and attributes for the Index are
calculated semi-monthly using approximately 21,000 municipal bonds
which are priced by Muller Data Corp. The Index does not take into
account fees and expenses or cost of insurance of the bonds held by an
insured tax-exempt bond fund. It is not possible to invest directly in
the Lehman Brothers Municipal Bond Index. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares based
on differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 and 12/29/89, the maximum sales
charges were 6.9% and 7.25%, respectively). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales
charge (maximum of 4% in the first year). Some or all of the expenses
of the Fund were waived or assumed. If such expenses had been paid by
the Fund, the Class A "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 2.47%,
5.72% and 7.45%, respectively, and the S.E.C. 30-Day Yield for
December 1997 would have been 3.89%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 4.42% and 8.04%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.44%. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Lehman Brothers Municipal Bond Index figures from Lehman
Brothers, Inc. and all other figures from First Investors Management
Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Colorado Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
COLORADO GRAPH PLOTS
COLORADO LEHMAN
MAY 1992 9,375 10,000
DEC 1992 10,015 10,753
DEC 1993 11,432 12,073
DEC 1994 10,773 11,449
DEC 1995 12,739 13,447
DEC 1996 13,321 14,018
DEC 1997 14,570 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.37% 2.56%
Five Year 7.78% 6.39%
Since Inception
(5/4/92) 8.08% 6.86%
S.E.C. 30-Day Yield 4.30%
Class B Shares
One Year 8.55% 4.55%
Since Inception
(1/12/95) 9.45% 8.60%
S.E.C. 30-Day Yield 3.80%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Colorado Fund (Class A shares)
beginning 5/4/92 (inception date) with a theoretical investment in the
Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal
Bond Index is a total return performance benchmark for the long-term
investment grade tax-exempt bond market. Returns and attributes for
the Index are calculated semi-monthly using approximately 21,000
municipal bonds which are priced by Muller Data Corp. The Index does
not take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was
deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line
graph above for Class A shares based on differences in sales loads and
fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 the maximum sales charge was 6.9%).
The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years and
Since Inception would have been 1.59%, 5.29% and 5.70%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been 3.42%.
The Class B "S.E.C. Standardized" Average Annual Total Return for One
Year and Since Inception would have been 3.59% and 7.23%,
respectively, and the S.E.C. 30-Day Yield for December 1997 would have
been 2.87%. Results represent past performance and do not indicate
future results. Investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Lehman Brothers Municipal
Bond Index figures from Lehman Brothers, Inc. and all other figures
from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Michigan Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
MICHIGAN GRAPH PLOTS
MICHIGAN LEHMAN
JAN 1988 9,375 10,000
DEC 1988 10,655 11,016
DEC 1989 11,825 12,203
DEC 1990 12,644 13,093
DEC 1991 14,064 14,683
DEC 1992 15.554 15,978
DEC 1993 17,808 17,939
DEC 1994 16,676 17,012
DEC 1995 19,589 20,004
DEC 1996 20,250 20,854
DEC 1997 22,147 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.37% 2.52%
Five Years 7.32% 5.94%
Ten Years 8.98% 8.28%
S.E.C. 30-Day Yield 3.80%
Class B Shares
One Year 8.54% 4.54%
Since Inception
(1/12/95) 8.82% 7.96%
S.E.C. 30-Day Yield 3.27%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Michigan Fund (Class A shares)
beginning 1/1/88 with a theoretical investment in the Lehman Brothers
Municipal Bond Index. The Lehman Brothers Municipal Bond Index is a
total return performance benchmark for the long-term investment grade
tax-exempt bond market. Returns and attributes for the Index are
calculated semi-monthly using approximately 21,000 municipal bonds
which are priced by Muller Data Corp. The Index does not take into
account fees and expenses or cost of insurance of the bonds held by an
insured tax-exempt bond fund. It is not possible to invest directly in
the Lehman Brothers Municipal Bond Index. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares based
on differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 and 12/29/89, the maximum sales
charges were 6.9% and 7.25%, respectively). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales
charge (maximum of 4% in the first year). Some or all of the expenses
of the Fund were waived or assumed. If such expenses had been paid by
the Fund, the Class A "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 2.26%,
5.60% and 7.59%, respectively, and the S.E.C. 30-Day Yield for
December 1997 would have been 3.55%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 4.27% and 7.61%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.01%. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Lehman Brothers Municipal Bond Index figures from Lehman
Brothers, Inc. and all other figures from First Investors Management
Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Minnesota Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
MINNESOTA GRAPH PLOTS
MINNESOTA LEHMAN
JAN 1988 9,375 10,000
DEC 1988 10,437 11,016
DEC 1989 11,454 12,203
DEC 1990 12,257 13,093
DEC 1991 13,579 14,683
DEC 1992 14,840 15,978
DEC 1993 16,516 17,939
DEC 1994 15,537 17,012
DEC 1995 17,973 20,004
DEC 1996 18,596 20,854
DEC 1997 20,189 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.57% 1.80%
Five Years 6.35% 4.99%
Ten Years 7.98% 7.28%
S.E.C. 30-Day Yield 4.33%
Class B Shares
One Year 7.71% 3.71%
Since Inception
(1/12/95) 8.14% 7.26%
S.E.C. 30-Day Yield 3.84%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Minnesota Fund (Class A shares)
beginning 1/1/88 with a theoretical investment in the Lehman Brothers
Municipal Bond Index. The Lehman Brothers Municipal Bond Index is a
total return performance benchmark for the long-term investment grade
tax-exempt bond market. Returns and attributes for the Index are
calculated semi-monthly using approximately 21,000 municipal bonds
which are priced by Muller Data Corp. The Index does not take into
account fees and expenses or cost of insurance of the bonds held by an
insured tax-exempt bond fund. It is not possible to invest directly in
the Lehman Brothers Municipal Bond Index. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares based
on differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 and 12/29/89, the maximum sales
charges were 6.9% and 7.25%, respectively). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales
charge (maximum of 4% in the first year). Some or all of the expenses
of the Fund were waived or assumed. If such expenses had been paid by
the Fund, the Class A "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 1.11%,
4.32% and 6.28%, respectively, and the S.E.C. 30-Day Yield for
December 1997 would have been 3.68%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.01% and 6.44%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.15%. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Lehman Brothers Municipal Bond Index figures from Lehman
Brothers, Inc. and all other figures from First Investors Management
Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Missouri Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
MISSOURI GRAPH PLOTS
MISSOURI LEHMAN
MAY 1992 9,375 10,000
DEC 1992 9,917 10,753
DEC 1993 11,326 12,073
DEC 1994 10,624 11,449
DEC 1995 12,594 13,447
DEC 1996 13,077 14,018
DEC 1997 14,313 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.44% 2.60%
Five Years 7.61% 6.23%
Since Inception
(5/4/92) 7.74% 6.53%
S.E.C. 30-Day Yield 4.35%
Class B Shares
One Year 8.60% 4.60%
Since Inception
(1/12/95) 9.27% 8.41%
S.E.C. 30-Day Yield 3.86%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Missouri Fund (Class A shares)
beginning 5/4/92 (inception date) with a theoretical investment in the
Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal
Bond Index is a total return performance benchmark for the long-term
investment grade tax-exempt bond market. Returns and attributes for
the Index are calculated semi-monthly using approximately 21,000
municipal bonds which are priced by Muller Data Corp. The Index does
not take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was
deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line
graph above for Class A shares based on differences in sales loads and
fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 the maximum sales charge was 6.9%).
The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years and
Since Inception would have been 1.38%, 4.90% and 4.84%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been 3.21%.
The Class B "S.E.C. Standardized" Average Annual Total Return for One
Year and Since Inception would have been 3.35% and 6.91%,
respectively, and the S.E.C. 30-Day Yield for December 1997 would have
been 2.65%. Results represent past performance and do not indicate
future results. Investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Lehman Brothers Municipal
Bond Index figures from Lehman Brothers, Inc. and all other figures
from First Investors Management Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Ohio Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
OHIO GRAPH PLOTS
OHIO LEHMAN
JAN 1988 9,375 10,000
DEC 1988 10,688 11,016
DEC 1989 11,863 12,203
DEC 1990 12,735 13,093
DEC 1991 14,174 14,683
DEC 1992 15,590 15,978
DEC 1993 17,635 17,939
DEC 1994 16,593 17,012
DEC 1995 19,471 20,004
DEC 1996 20,295 20,854
DEC 1997 22,048 22,771
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 8.64% 1.87%
Five Years 7.18% 5.80%
Ten Years 8.93% 8.23%
S.E.C. 30-Day Yield 4.15%
Class B Shares
One Year 7.73% 3.73%
Since Inception
(1/12/95) 8.80% 7.94%
S.E.C. 30-Day Yield 3.64%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Ohio Fund (Class A shares)
beginning 1/1/88 with a theoretical investment in the Lehman Brothers
Municipal Bond Index. The Lehman Brothers Municipal Bond Index is a
total return performance benchmark for the long-term investment grade
tax-exempt bond market. Returns and attributes for the Index are
calculated semi-monthly using approximately 21,000 municipal bonds
which are priced by Muller Data Corp. The Index does not take into
account fees and expenses or cost of insurance of the bonds held by an
insured tax-exempt bond fund. It is not possible to invest directly in
the Lehman Brothers Municipal Bond Index. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions
were reinvested. Class B shares performance may be greater than or
less than that shown in the line graph above for Class A shares based
on differences in sales loads and fees paid by shareholders investing
in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 and 12/29/89, the maximum sales
charges were 6.9% and 7.25%, respectively). The Class B "S.E.C.
Standardized" returns are adjusted for the applicable deferred sales
charge (maximum of 4% in the first year). Some or all of the expenses
of the Fund were waived or assumed. If such expenses had been paid by
the Fund, the Class A "S.E.C. Standardized" Average Annual Total
Return for One Year, Five Years and Ten Years would have been 1.51%,
5.38% and 7.48%, respectively, and the S.E.C. 30-Day Yield for
December 1997 would have been 3.75%. The Class B "S.E.C. Standardized"
Average Annual Total Return for One Year and Since Inception would
have been 3.29% and 7.43%, respectively, and the S.E.C. 30-Day Yield
for December 1997 would have been 3.21%. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Lehman Brothers Municipal Bond Index figures from Lehman
Brothers, Inc. and all other figures from First Investors Management
Company, Inc.
Cumulative Performance Information
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
Comparison of change in value of $10,000 investment in the First
Investors Multi-State Insured Tax Free Fund -- Oregon Fund (Class A
shares) and the Lehman Brothers Municipal Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
As of December 31, 1997
OREGON GRAPH PLOTS
OREGON LEHMAN
MAY 1992 9,375 10,000
DEC 1992 9,794 10,753
DEC 1993 11,079 12,073
DEC 1994 10,343 11,449
DEC 1995 12,204 13,447
DEC 1996 12,653 14,018
DEC 1997 13,914 15,306
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
Class A Shares N.A.V. Only S.E.C. Standardized
One Year 9.97% 3.09%
Five Years 7.28% 5.90%
Since Inception
(5/4/92) 7.20% 6.00%
S.E.C. 30-Day Yield 4.12%
Class B Shares
One Year 9.03% 5.03%
Since Inception
(1/12/95) 9.26% 8.41%
S.E.C. 30-Day Yield 3.62%
The graph compares a $10,000 investment in the First Investors
Multi-State Insured Tax Free Fund -- Oregon Fund (Class A shares)
beginning 5/4/92 (inception date) with a theoretical investment in the
Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal
Bond Index is a total return performance benchmark for the long-term
investment grade tax-exempt bond market. Returns and attributes for
the Index are calculated semi-monthly using approximately 21,000
municipal bonds which are priced by Muller Data Corp. The Index does
not take into account fees and expenses or cost of insurance of the
bonds held by an insured tax-exempt bond fund. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was
deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown in the line
graph above for Class A shares based on differences in sales loads and
fees paid by shareholders investing in the different classes.
* Average Annual Total Return figures (for the period ended 12/31/97)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A
"S.E.C. Standardized" returns shown are based on the maximum sales
charge of 6.25% (prior to 7/1/93 the maximum sales charge was 6.9%).
The Class B "S.E.C. Standardized" returns are adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Some or all of the expenses of the Fund were waived or assumed. If
such expenses had been paid by the Fund, the Class A "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years and
Since Inception would have been 2.39%, 4.81% and 4.76%, respectively,
and the S.E.C. 30-Day Yield for December 1997 would have been 3.46%.
The Class B "S.E.C. Standardized" Average Annual Total Return for One
Year and Since Inception would have been 4.30% and 7.12%,
respectively, and the S.E.C. 30-Day Yield for December 1997 would have
been 2.91%. Results represent past performance and do not indicate
future results. Investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Lehman Brothers Municipal
Bond Index figures from Lehman Brothers, Inc. and all other figures
from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Tax Free Fund--ARIZONA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.6%
Certificates of Participation--6.4%
Arizona State:
$ 100M 6.1% 5/1/2007 $ 109,000 $ 108
375M 6 1/4% 9/1/2010 410,625 405
100M Arizona State Municipal Financing Program 7.7% 8/1/2010 125,625 124
- -----------------------------------------------------------------------------------------------------------------
645,250 637
- -----------------------------------------------------------------------------------------------------------------
Education--1.5%
140M Arizona State University Revenue 7% 7/1/2001* 155,575 154
- -----------------------------------------------------------------------------------------------------------------
General Obligation--45.6%
600M Chandler 6 1/4% 7/1/2011 694,500 686
Maricopa County:
235M School District #3 (Tempe) 7.3% 7/1/2009 293,456 290
250M School District #3 (Tempe) 5% 7/1/2017 247,187 244
400M School District #11 (Peoria) 6.1% 7/1/2010 441,500 436
100M School District #14 (Creighton) 7 7/8% 7/1/2006 125,250 124
1,000M School District #41 (Gilbert) 7% 1/1/2008** 630,000 622
300M School District #68 (Alhambra) 6 3/4% 7/1/2014 339,750 335
100M School District #92 (Pendergast Elementary) 6 5/8% 7/1/2000* 107,000 106
200M School District #231 (Tempe) 7% 7/1/2008 243,250 240
145M Pima County Unified School District #13 (Tanque Verde) 6.7% 7/1/2010 165,662 164
500M Pinal County Unified School District #43 (Apache Junction) 5% 7/1/2015 498,750 492
100M Puerto Rico Commonwealth 6.6% 7/1/2002* 111,375 110
200M Santa Cruz County School District #35, 6% 7/1/2008 220,250 217
Yavapai County:
230M Elementary School District #6 (Cottonwood-Oak Creek) 6.7% 7/1/2009 261,337 258
215M Elementary School District #28 (Camp Verde) 6% 7/1/2008 238,919 236
- -----------------------------------------------------------------------------------------------------------------
4,618,186 4,560
- -----------------------------------------------------------------------------------------------------------------
Health Care--12.3%
650M Maricopa County Ind. Dev. Auth. (Samaritan Health Svcs.) 7% 12/1/2016 810,875 801
100M Mohave County Hosp. Dist. #1 (Kingman Reg. Med. Ctr.) 6.45% 6/1/2008 108,875 107
300M Pima County Ind. Dev. Auth. (Tucson Med. Ctr.) 6 3/8% 4/1/2012 327,000 323
- -----------------------------------------------------------------------------------------------------------------
1,246,750 1,231
- -----------------------------------------------------------------------------------------------------------------
Housing--1.1%
110M Phoenix Hsg. Fin. Corp. Mtg. Rev. 6.65% 7/1/2006 114,675 113
- -----------------------------------------------------------------------------------------------------------------
Transportation--5.3%
385M Phoenix Airport Revenue 6 1/4% 7/1/2012 427,831 422
100M Phoenix Street & Highway User Revenue 6 1/4% 7/1/2002* 107,875 107
- -----------------------------------------------------------------------------------------------------------------
535,706 529
- -----------------------------------------------------------------------------------------------------------------
Utilities--17.0%
200M Central Arizona Water Conservation District 6.91% 5/1/2005** 146,000 144
Chandler Water & Sewer Revenue:
200M 7 1/4% 7/1/2013 253,750 251
225M 5 1/2% 7/1/2015 234,563 232
225M Gilbert Water & Sewer Revenue 6 1/2% 7/1/2012 252,563 249
350M Mesa Utility Systems Revenue 6 1/8% 7/1/2013 388,938 384
100M Peoria Water & Sewer Revenue 6.6% 7/1/2004 106,625 105
250M Tucson Water Revenue 8% 7/1/2006* 335,313 331
- -----------------------------------------------------------------------------------------------------------------
1,717,752 1,696
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--10.4%
305M Casa Grande Excise Tax Rev. 6.1% 4/1/2009 333,594 329
250M Phoenix Civic Impt. Mun. Facs. Excise Tax Rev. 6.6% 7/1/2004* 285,937 282
400M Sierra Vista Mun. Ppty. Corp. Mun. Facs. Rev. 6% 1/1/2011 436,000 431
- -----------------------------------------------------------------------------------------------------------------
1,055,531 1,042
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $9,008,365) 99.6% 10,089,425 9,962
Other Assets, Less Liabilities .4 38,630 38
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $10,128,055 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of discount on date purchased.
See note to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--CALIFORNIA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--104.1%
Certificates of Participation--13.7%
$ 500M Castaic Lake Water Agency Water System Impt. Proj. 7% 8/1/2012$ $ 615,000 $ 389
1,730M Lancaster School District 5.43% 4/1/2021** 519,000 328
1,450M Palmdale School District (Ref. & Sch. Bldg. Pj.) 5.43% 10/1/2020** 447,687 283
500M San Diego County Inmate Reception Center 6 3/4% 8/1/2004* 578,750 366
- -----------------------------------------------------------------------------------------------------------------
2,160,437 1,366
- -----------------------------------------------------------------------------------------------------------------
General Obligation--11.8%
370M Greenfield School District 7.1% 8/1/2012 392,662 248
Walnut Valley School District:
750M 6% 8/1/2012 851,250 538
500M 7.2% 2/1/2016 623,750 394
- -----------------------------------------------------------------------------------------------------------------
1,867,662 1,180
- -----------------------------------------------------------------------------------------------------------------
Health Care--1.0%
155M California Health Facilities Fin. Auth. Rev. Episcopal Homes
7.85% 7/1/2015 158,616 100
- -----------------------------------------------------------------------------------------------------------------
Transportation--.7%
100M Los Angeles County Trans. Comm. Sales Tax Rev. 6 3/4% 7/1/2001* 110,375 70
- -----------------------------------------------------------------------------------------------------------------
Utilities--8.9%
750M East Bay Municipal Utility District 6.4% 6/1/2004* 853,125 540
250M Fresno Water Revenue 6 1/4% 9/1/2014 290,000 183
250M Los Angeles Wastewater System 7% 6/1/2011 264,688 167
- -----------------------------------------------------------------------------------------------------------------
1,407,813 890
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--68.0%
500M Barstow Redevelopment Agency 7% 9/1/2014 622,500 393
100M California Public Capital Impt. Fin. Auth. Rev. 8.1% 3/1/2018 102,740 65
1,315M California State Public Works Board 6 1/2% 12/1/2008 1,551,700 981
790M Irwindale Comnty. Redev. Agency (City Indl. Dev. Pj.) 5% 8/1/2017 778,150 492
1,000M Long Beach Financing Authority Revenue 6% 11/1/2017 1,140,000 721
300M Sacramento Redev. Agency Merged Downtown Redev. Proj. 6 3/4% 11/1/2005 325,875 206
640M San Francisco City & Cnty. Pkg. Auth. Rev. 7% 6/1/2011 748,800 473
500M San Francisco City & Cnty. Redev. Agy. (Moscone Ctr.) 6 3/4% 7/1/2015 567,500 359
500M San Jose Redevelopment Agency 6% 8/1/2015 567,500 359
700M San Mateo Joint Powers Authority Lease Revenue 6 1/2% 7/1/2015 835,625 528
500M San Rafael Redevelopment Agency 6.45% 12/1/2017 548,125 346
500M Santa Ana Financing Authority Lease Rev. 6 1/4% 7/1/2015 582,500 368
750M Santa Margarita/Dana Point Impt. Dist. 7 1/4% 8/1/2010 933,750 590
750M South Gate Public Financing Authority 6% 10/1/2012 844,688 534
500M South Orange County Public Finance Authority 7% 9/1/2011 611,875 387
- -----------------------------------------------------------------------------------------------------------------
10,761,328 6,802
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $14,618,468) 104.1% 16,466,231 10,408
Excess of Liabilities Over Other Assets (4.1) (644,864) (408)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $15,821,367 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of original issue discount.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--COLORADO FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.0%
Education--9.2%
$225M Colorado Postsecondary Educ. Facs. Auth. Rev. (Aurora Fndtn. Proj.)
6% 9/1/2015 $ 241,031 $ 635
100M University of Northern Colorado Revenue 6% 6/1/2014 108,375 286
- -----------------------------------------------------------------------------------------------------------------
349,406 921
- -----------------------------------------------------------------------------------------------------------------
General Obligation--43.0%
150M Bayfield School District #10, 6 1/2% 6/1/2009 169,875 447
250M Douglas County School District #RE 1, 8% 12/15/2009 331,563 874
150M Eagle Garfield & Routt Cntys. School District #RE 50J, 6.3%
12/1/2012 168,000 443
150M El Paso County School District #020, 6.2% 12/15/2007 171,937 453
150M Garfield County School District #RE 2, 6.15% 12/1/2009 165,750 437
150M Garfield Pitkin & Eagle Cntys. School District #RE 1, 6.6%
6/15/2004* 170,813 450
150M Puerto Rico Commonwealth 6 1/4% 7/1/2012 173,625 458
100M Summit County School District #RE 1, 6.55% 12/1/2004* 113,625 299
150M Yuma Hospital District 6.4% 11/1/2014 166,875 440
- -----------------------------------------------------------------------------------------------------------------
1,632,063 4,301
- -----------------------------------------------------------------------------------------------------------------
Health Care--10.2%
100M Colorado Health Facilities Authority (Sisters of Charity) 6 1/4%
5/15/2012 115,500 304
250M Colorado Springs Hospital Revenue 6% 12/15/2015 271,875 717
- -----------------------------------------------------------------------------------------------------------------
387,375 1,021
- -----------------------------------------------------------------------------------------------------------------
Transportation--10.2%
100M Arapahoe County Capital Improv. Highway Rev. (E-470) 6.05%
8/31/2015 110,000 290
150M Denver City & County Airport Revenue 5 3/4% 11/15/2016 158,625 418
100M Puerto Rico Commonwealth Hwy. & Transn. Auth. Rev. 6 1/4%
7/1/2014 117,125 309
- -----------------------------------------------------------------------------------------------------------------
385,750 1,017
- -----------------------------------------------------------------------------------------------------------------
Utilities--11.3%
150M Westminster Water & Wastewater Util. Enterprise Rev. 6% 12/1/2009 163,500 431
150M Widefield Water & Sanitary District Water & Sewer Rev. 5.6%
12/1/2026 156,562 412
100M Woodland Park Wastewater Util. Rev. 6.05% 12/1/2013 109,250 288
- -----------------------------------------------------------------------------------------------------------------
429,312 1,131
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--15.1%
100M Pueblo Urban Renewal Authority Tax Increment Rev. 6.05% 12/1/2012 108,625 287
175M Puerto Rico Commonwealth Infrastructure Fing. Auth. Spl. 5%
7/1/2017 174,563 460
100M Puerto Rico Mun. Fin. Agy. Series "A" 6% 7/1/2014 107,875 284
155M Puerto Rico Public Buildings Authority 6 1/4 7/1/2012 180,381 475
- -----------------------------------------------------------------------------------------------------------------
571,444 1,506
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $3,412,843) 99.0% 3,755,350 9,897
Other Assets, Less Liabilities 1.0 38,906 103
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,794,256 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MICHIGAN FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.7%
Education--.8%
$ 300M Central Michigan University Revenue 7% 10/1/2000* $ 328,125 $ 81
- -----------------------------------------------------------------------------------------------------------------
General Obligation--54.4%
1,055M Calhoun County Water Supply System 5 3/4% 5/1/2019 1,114,344 275
325M Chippewa Valley Schools 7.1% 5/1/2001* 361,156 89
1,000M Detroit City School District 5.85% 5/1/2016 1,067,500 263
1,000M Detroit Downtown Development Series "A" 5 3/4% 7/15/2015 1,066,250 263
1,000M East Detroit School District 6.1% 5/1/2016 1,092,500 269
1,000M Genesee County Sewer Disposal System 5.4% 4/1/2013 1,031,250 254
1,000M Grand Ledge Public School District 7 7/8% 5/1/2004* 1,211,250 298
1,000M Gull Lake Community School District 7% 5/1/2013** 463,750 114
350M Haslett Public School District 7 1/2% 5/1/2000* 379,750 94
1,000M Huron School District 6 3/4% 5/1/2015** 421,250 104
350M Inkster School District 7% 5/1/2000* 378,000 93
1,000M Lake Orion Community School District 7% 5/1/2005* 1,175,000 289
1,000M Lincoln Park School District 7% 5/1/2006* 1,186,250 292
1,000M Michigan State Environmental Protection Program 6 1/4% 11/1/2012 1,162,860 286
1,000M Montrose Township School District 6.2% 5/1/2017 1,152,500 284
450M Oak Park 7.2% 5/1/2002* 509,625 126
1,000M Portage Lake Water & Sewer Authority 6.1% 10/1/2014 1,106,250 272
1,195M Redford Unified School District 6 3/8% 5/1/2010 1,393,669 343
800M Rochester School District 5 5/8% 5/1/2011 877,000 216
Romulus Community Schools:
250M 6 3/4% 5/1/2001* 275,000 68
500M 5 1/8% 5/1/2017 502,500 124
380M Saline Building Authority 7.1% 7/1/2009 423,225 104
1,000M South Lake Schools 5 1/8% 5/1/2014 1,020,000 251
1,000M Waterford Township School District 6 1/4% 6/1/2004* 1,116,250 275
450M White Cloud Public Schools 7.1% 5/1/2000* 485,438 120
1,000M Zeeland Public Schools 6% 5/1/2004* 1,108,750 273
- -----------------------------------------------------------------------------------------------------------------
22,081,317 5,439
- -----------------------------------------------------------------------------------------------------------------
Health Care--2.7%
1,000M Michigan State Hosp. Fin. Auth. Rev. (St. John's Hospital) 6%
5/15/2008 1,088,750 268
- -----------------------------------------------------------------------------------------------------------------
Housing--1.3%
500M Michigan State Housing Dev. Auth. Single-Family Mtge. Rev. 7.3%
12/1/2016 526,250 130
- -----------------------------------------------------------------------------------------------------------------
Transportation--7.6%
1,500M Puerto Rico Commonwealth Hwy. & Transn. Hwy. Rev. 6 1/4% 7/1/2015 1,756,875 433
1,190M Wayne Charter County (Detroit Metropolitan Airport) 6 3/4%
12/1/2001* 1,322,387 325
- -----------------------------------------------------------------------------------------------------------------
3,079,262 758
- -----------------------------------------------------------------------------------------------------------------
Utilities--20.5%
Detroit Water Supply System:
400M 6 3/8% 7/1/2002* 442,000 109
1,750M 5.55% 7/1/2012 1,898,750 468
1,275M 6 1/2% 7/1/2015 1,515,656 373
1,000M Kalamazoo Water Revenue 6% 9/1/2015 1,080,000 266
Michigan State Strategic Fund (Detroit Edison):
1,750M 6.95% 5/1/2011 2,141,563 527
500M 7% 5/1/2021 636,875 157
500M Monroe County Economic Development Corporation (Detroit Edison)
6.95% 9/1/2022 637,500 157
- -----------------------------------------------------------------------------------------------------------------
8,352,344 2,057
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--11.4%
1,250M Battle Creek Downtown Development Authority 5% 5/1/2017 1,234,375 304
1,000M Grand Rapids Downtown Development Authority 7.05% 6/1/2009** 586,250 144
Michigan Municipal Bond Authority Revenue:
1,500M 6.55% 11/1/2008 1,704,375 420
1,000M 6 1/8% 5/1/2014 1,091,250 269
- -----------------------------------------------------------------------------------------------------------------
4,616,250 1,137
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $35,761,596) 98.7% 40,072,298 9,870
Other Assets, Less Liabilities 1.3 526,952 130
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $40,599,250 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of original issue discount.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MINNESOTA FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.3%
Certificates of Participation--5.2%
$400M Minneapolis Special School District #001, 5.9% 2/1/2012 $ 430,000 $ 519
- -----------------------------------------------------------------------------------------------------------------
Education--5.3%
400M University of Minnesota 5 3/4% 7/1/2017 439,000 531
- -----------------------------------------------------------------------------------------------------------------
General Obligation--34.4%
325M Becker Wastewater Treatment 5.8% 2/1/2010 344,094 416
180M Blaine Series "A" Fire Improvement 6.8% 2/1/2001* 192,375 233
150M Cass Lake Independent School District #115, 6 5/8% 2/1/2001* 159,750 193
285M Inner Grove Heights Independent School District #199, 5 3/4%
2/1/2012 301,387 364
280M Lakeville 5 1/2% 2/1/2011 293,300 354
405M Lino Lakes 5.7% 2/1/2012 432,337 522
125M Mahnomen Independent School District #432, 6 1/2% 2/1/2000* 130,625 158
275M Minnesota State 6 1/4% 8/1/2002* 298,375 361
350M North St. Paul Maplewood Independent School District #622, 7.1%
2/1/2005* 408,188 493
650M Rosemount Independent School District No. #196, 5.8% 4/1/2014** 289,250 350
- -----------------------------------------------------------------------------------------------------------------
2,849,681 3,444
- -----------------------------------------------------------------------------------------------------------------
Health Care--21.4%
195M Duluth Economic Development Authority (Duluth Clinic) 6.2% 11/1/2012 211,575 256
200M Hibbing Health Care Facilities Revenue (Duluth Clinic) 5 1/2% 11/1/2016 209,250 253
Minneapolis & St. Paul Hsg. & Redev. Auth. Health Care System:
150M Childrens Health Care 5.7% 8/15/2016 159,000 192
180M Health One 7.4% 8/15/2011 196,650 238
250M Minneapolis Hospital Revenue (Fairview Hospital) 6 1/2% 1/1/2011 272,500 329
200M Minnesota Agric. & Eco. Dev. Brd. (Fairview Hospital) 5 3/4% 11/15/26 211,000 255
170M St. Cloud Hosp. Facs. Rev. (St. Cloud Hosp.) Series "B" 7%
7/1/2001* 188,488 228
St. Louis Park Hospital Revenue Facilities (Methodist Hospital):
100M Series "A" 7 1/4% 7/1/2000* 108,625 131
200M Series "C" 7 1/4% 7/1/2000* 218,750 264
- -----------------------------------------------------------------------------------------------------------------
1,775,838 2,146
- -----------------------------------------------------------------------------------------------------------------
Housing--18.5%
120M Eagen Multi-Family Housing (Forest Ridge Apts.) 7 1/2% 3/1/2027 124,500 150
Minnesota State Housing Finance Authority:
635M Rental Housing Revenue 5.9% 8/1/2015 667,544 807
Single Family Mortgage Revenue:
80M 6.9% 7/1/2009 86,300 104
70M 7.7% 7/1/2014 74,462 90
225M 6.4% 1/1/2015 241,312 292
St. Paul Housing & Redevelopment Authority:
65M Multi-Family Housing Revenue 7 1/2% 3/1/2026 (Defaulted)(Note 1A) 65,000 79
250M Single Family Mortgage Revenue 6 1/4% 9/1/2014 268,125 324
- -----------------------------------------------------------------------------------------------------------------
1,527,243 1,846
- -----------------------------------------------------------------------------------------------------------------
Utilities--8.7%
150M Northern Municipal Power Agency Electric System Revenue 5 1/4%
1/1/2017 151,125 183
210M Southern Minn. Municipal Power Agency Power Supply System
5 3/4% 1/1/2018* 224,175 271
325M Western Minn. Municipal Power Agency 5 1/2% 1/1/2011 343,688 415
- -----------------------------------------------------------------------------------------------------------------
718,988 869
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--3.8%
300M Scott County Hsg. & Redev. Auth. Fac. Lease Rev. 5 1/2%
12/1/2015 313,125 378
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $7,468,578) 97.3% 8,053,875 9,733
Other Assets, Less Liabilities 2.7 220,782 267
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $8,274,657 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Zero coupon bond issued at a discount. The interest rate shown represents the rate of discount on date purchased.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--MISSOURI FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--100.0%
Certificates of Participation--2.6%
$ 50M Richmond Heights Capital Improvement Projects 5.3% 8/15/2017 $ 50,313 $ 263
- -----------------------------------------------------------------------------------------------------------------
General Obligation--15.7%
50M Lincoln County Reorg. School District #3, 6.1% 3/1/2014 55,500 290
80M Puerto Rico Commonwealth 6 1/4% 7/1/2012 92,600 483
50M Springfield School District 7% 3/1/2008 60,438 316
80M St. Charles School District 6 1/2% 2/1/2006* 91,900 480
- -----------------------------------------------------------------------------------------------------------------
300,438 1,569
- -----------------------------------------------------------------------------------------------------------------
Health Care--25.7%
Missouri State Health & Educational Facilities Authority:
140M BJC Health System 6 3/4% 5/15/2011 167,825 876
90M Health Midwest 6.1% 6/1/2011 98,437 514
125M Sisters of Sorrowful Mother Healthcare 6 1/4% 6/1/2007 137,031 716
80M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4%
7/1/2016 88,500 462
- -----------------------------------------------------------------------------------------------------------------
491,793 2,568
- -----------------------------------------------------------------------------------------------------------------
Housing--5.0%
90M Missouri State Hsg. Devel. Comm. (Ecumenical Housing) 5.8%
3/1/2010 95,062 496
- -----------------------------------------------------------------------------------------------------------------
Transportation--9.7%
75M Kansas City Airport Revenue 6 7/8% 9/1/2004* 86,906 454
85M Puerto Rico Commonwealth Highway & Transportation Authority
6 1/4% 7/1/2013 98,919 517
- -----------------------------------------------------------------------------------------------------------------
185,825 971
- -----------------------------------------------------------------------------------------------------------------
Utilities--22.4%
80M Liberty Sewer System Revenue 6.15% 2/1/2015 89,100 465
Missouri State Env. Impt. & Energy Res. Auth. Water Poll. Control:
80M 6% 1/1/2016 84,700 442
85M 6.05% 7/1/2016 92,013 481
150M St. Louis Water and Sewer Revenue 6% 7/1/2014 162,937 851
- -----------------------------------------------------------------------------------------------------------------
428,750 2,239
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--18.9%
50M Clay County Public Bldg. Authority Leasehold Revenue 7% 5/15/2014 57,313 299
80M Excelsior Springs School Dist. Bldg. Corp. Leasehold Rev. 6 1/2%
3/1/2009 87,500 457
St. Louis Municipal Financing Corp. Leasehold Revenue:
40M 6 1/4% 2/15/2005* 44,750 234
80M 5 3/4% 8/1/2013 85,500 446
80M Warren County Public Facs. Authority Leasehold Revenue 6.3% 6/1/2010 87,800 459
- -----------------------------------------------------------------------------------------------------------------
362,863 1,895
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $1,727,632) 100.0% 1,915,044 10,001
Excess of Liabilities Over Other Assets (.0) (198) (1)
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,914,846 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--OHIO FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.6%
General Obligation--75.0%
$1,000M Adams County Valley Local School District 7% 12/1/2015 $1,257,500 $ 640
800M Avon Local School District 6 1/2% 12/1/2015 961,000 489
500M Batavia Local School District 7% 12/1/2014 588,125 299
1,000M Beaver Creek Local School District 6.6% 12/1/2015 1,210,000 616
425M Bedford Heights 6 1/2% 12/1/2014 479,188 244
500M Brecksville-Broadview Heights City School District 6 1/2%
12/1/2016 574,375 292
250M Cardington & Lincoln Local School District 6.6% 12/1/2014 272,500 139
Cleveland:
500M 6 3/8% 7/1/2002* 552,500 281
250M 6 5/8% 11/15/2004* 287,812 147
500M Clyde-Green Springs Exempted Village School District 7% 12/1/2013 581,250 296
450M Dublin 6.4% 12/1/2014 534,938 272
525M East Clinton Local School District 6 7/8% 12/1/2009 610,969 311
265M Finneytown Local School District 6 1/4% 12/1/2012 308,394 157
700M Garfield Heights 6.3% 12/1/2014 779,625 397
500M Lakeview Local School District 6.9% 12/1/2014 578,750 295
500M Lakewood City School District 6.95% 12/1/2015 577,500 294
215M Logan Hocking Local School District Series "A" 7.1% 12/1/2001* 239,994 122
270M Muskingum County 7.2% 12/1/2010 297,338 151
500M North Royalton City School District 6% 12/1/2014 560,625 286
250M Olmsted Falls Local School District 6.85% 12/15/2011 291,562 148
350M Portage County 6.2% 12/1/2014 387,188 197
285M Shaker Heights City School District 7.1% 12/15/2010 354,825 181
250M Springfield Local School District 7 1/8% 12/1/2012 274,063 140
Summit County:
115M 6.9% 8/1/2012 125,781 64
550M 6.4% 12/1/2014 618,062 315
250M Toledo 6 1/2% 12/1/2002* 279,375 142
500M Tuscarawas Valley Local School District 6.6% 12/1/2015 572,500 291
250M Valley View 7% 12/1/2011 272,812 139
250M Wayne Local School District 6.45% 12/1/2011 298,750 152
- -----------------------------------------------------------------------------------------------------------------
14,727,301 7,497
- -----------------------------------------------------------------------------------------------------------------
Health Care--10.8%
Franklin County Hospital Revenue:
255M Holy Cross Health System 7 5/8% 6/1/2009 275,719 140
150M Riverside United Hospital 7 1/4% 5/15/2000* 163,500 83
500M Lorain County Hosp. Rev. (Catholic Healthcare Partners) 5 1/2%
9/1/2011 530,625 270
225M Lucas County Hosp. Impt. Rev. (St. Vincent Med. Ctr.) 6 3/4%
8/15/2000* 241,875 123
300M Montgomery County (Sisters of Charity Health Care) 6 1/4%
5/15/2008 330,750 169
125M Parma Hosp. Impt. (Parma Cmnty. General Hosp. Assoc.) 7.2%
11/15/2008 131,120 67
400M Trumbull County Hospital Revenue 6.9% 11/15/2003* 441,500 225
- -----------------------------------------------------------------------------------------------------------------
2,115,089 1,077
- -----------------------------------------------------------------------------------------------------------------
Utilities--11.6%
600M Alliance Sewer System Revenue 6% 10/15/2010 654,750 333
340M Cleveland Waterworks Revenue 6 1/2% 1/1/2002* 374,000 190
280M Hamilton Wastewater Revenue 5.9% 10/15/2011 304,500 155
165M Ohio State Air Quality Dev. Auth. Rev. (Ohio Power Co.) 7.4%
8/1/2009 174,900 89
250M Ohio State Water Dev. Auth. Rev. Pure Water Series 7% 12/1/2009 295,937 151
200M Toledo Water Revenue 6% 11/15/2007 221,500 113
250M Warren Waterworks Revenue 5 1/2% 11/1/2015 264,375 135
- -----------------------------------------------------------------------------------------------------------------
2,289,962 1,166
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--2.2%
150M Butler County Sales Tax Revenue 5% 12/15/2014 150,375 76
250M Ohio State Building Auth. (Juvenile Correction Projects) 6.6% 10/1/2014 282,187 144
- -----------------------------------------------------------------------------------------------------------------
432,562 220
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $17,548,039) 99.6% 19,564,914 9,960
Other Assets, Less Liabilities .4 77,936 40
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $19,642,850 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Multi-State Insured Tax Free Fund--OREGON FUND
December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.8%
Certificates of Participation--10.0%
Oregon State Dept. of Administrative Services:
$500M 5.65% 5/1/2012 $ 536,875 $ 428
500M 5% 11/1/2016 495,000 394
100M Oregon State Dept. of General Services 6% 9/1/2010 107,875 86
100M Washington County Educational Service District 7% 6/1/2005* 116,625 93
- -----------------------------------------------------------------------------------------------------------------
1,256,375 1,001
- -----------------------------------------------------------------------------------------------------------------
Education--4.4%
200M Chemeketa Community College District 6.4% 7/1/2009 229,000 182
100M Multnomah County Educl. Facs. (Univ. of Portland) 5.1% 4/1/2013 101,125 81
200M Oregon State Hlth. & Hsg. Educl. & Cult. Facs. (Lewis & Clark College)
6% 10/1/2013 218,750 174
- -----------------------------------------------------------------------------------------------------------------
548,875 437
- -----------------------------------------------------------------------------------------------------------------
General Obligation--42.9%
300M Chemeketa Community College District 5.8% 6/1/2012 325,875 259
200M Clackamas County School District #115, 5.8% 6/1/2008 218,000 173
250M Jackson County School District #005 (Ashland) 5.7% 6/1/2007 276,250 220
200M Josephine County School District (Three Rivers) 5.65% 12/1/2008 213,500 170
200M Klamath County Series "A" 5.3% 6/1/2011 214,250 171
245M La Grande 5 5/8% 6/1/2011 261,537 208
Lane County School District:
200M #019 (Springfield) 6 1/4% 10/15/2004* 224,250 179
250M #019 (Springfield) 6% 10/15/2014 283,438 226
115M #052 (Bethel) 7% 12/1/2006 138,000 110
200M Lincoln County School District 5 1/4% 6/15/2012 208,500 166
180M Linn County School District #095 (Scio) 5 3/4% 7/15/2011 192,825 154
100M Marion & Linn Counties Elem. School Dist. #077J (Stayton) 6.1%
7/1/2009 111,250 89
200M Polk Marion & Benton Counties School District #13, 5 1/2%
12/1/2008 215,000 171
Puerto Rico Commonwealth:
540M 6 1/4% 7/1/2012 625,050 498
650M 6 1/4% 7/1/2013 761,313 607
250M Tillamook County 5.6% 1/15/2012 267,188 213
200M Umatilla County School District #16 (Pendleton) 6% 7/1/2014$ 216,500 172
170M Washington County School District #003 (Hillsboro) 6% 11/1/2008 189,125 151
200M Washington County School District #88 (Sherwood) 6.1% 6/1/2012 220,500 176
200M Yamhill County School District #029, 6.1% 6/1/2011 219,500 175
- -----------------------------------------------------------------------------------------------------------------
5,381,851 4,288
- -----------------------------------------------------------------------------------------------------------------
Health Care--.2%
25M Clackamas County Health Facs. Auth. (Adventist Health) 6.35%
3/1/2009 27,281 22
- -----------------------------------------------------------------------------------------------------------------
Housing--5.5%
Oregon State Housing & Community Svcs. Dept. Mtge. Rev. Single
Family Mortgage Program:
250M 6% 7/1/2012 270,938 216
400M 5.95% 7/1/2013 426,000 339
- -----------------------------------------------------------------------------------------------------------------
696,938 555
- -----------------------------------------------------------------------------------------------------------------
Transportation--8.3%
Oregon State Department of Transportation Revenue:
100M 7% 6/1/2004 115,875 92
100M 6.2% 6/1/2008 111,750 89
200M 6 1/4% 6/1/2009 222,750 177
500M Puerto Rico Highway & Transportation Authority Highway Revenue
6 1/4% 7/1/2014 585,625 467
- -----------------------------------------------------------------------------------------------------------------
1,036,000 825
- -----------------------------------------------------------------------------------------------------------------
Utilities--23.5%
Emerald Peoples Utility District:
100M 6.4% 11/1/2001* 108,000 86
325M 7.35% 11/1/2011 411,125 327
200M Klamath Falls Water Revenue 6.1% 6/1/2014 218,500 174
250M Marion County Solid Waste & Elec. Revenue 5 3/8% 10/1/2008 267,187 213
250M Portland Gas Tax Revenue 5 3/4% 6/1/2012 269,688 215
Portland Sewer System Revenue:
400M 6.2% 6/1/2004* 445,000 354
200M 6 1/4% 6/1/2004* 222,500 177
250M Salem Water & Sewer Revenue 5 1/2% 6/1/2012 263,437 210
200M South Fork Water Board Water Revenue 6% 2/1/2014 216,750 173
Washington County Unified Sewer Agency:
250M 5 3/4% 10/1/2012 275,937 220
240M 5 1/2% 10/1/2014 253,500 202
- -----------------------------------------------------------------------------------------------------------------
2,951,624 2,351
- -----------------------------------------------------------------------------------------------------------------
Other Revenue--4.0%
50M Puerto Rico Commonwealth Infrastructure Fing. Auth. Spl. 5%
7/1/2017 49,875 40
100M Puerto Rico Municipal Finance Agency 6% 7/1/2014 107,875 86
300M Puerto Rico Public Buildings Authority 6 1/4% 7/1/2012 349,125 278
- -----------------------------------------------------------------------------------------------------------------
506,875 404
- -----------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $11,445,664) 98.8% 12,405,819 9,883
Other Assets, Less Liabilities 1.2 146,381 117
- -----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $12,552,200 $10,000
=================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1997
- -----------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
-------------------------------------------------------
ARIZONA CALIFORNIA COLORADO MICHIGAN
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
At identified cost $ 9,008,365 $14,618,468 $3,412,843 $35,761,596
=========== =========== ========== ===========
At value (Note 1A) $10,089,425 $16,466,231 $3,755,350 $40,072,298
Cash 100,756 38,628 2,218 148,711
Receivables:
Interest 209,985 249,327 34,683 482,919
Investment securities sold -- -- -- --
Trust shares sold 667 2,305 8,610 27,066
----------- ----------- ---------- -----------
Total Assets 10,400,833 16,756,491 3,800,861 4 0,730,994
----------- ----------- ---------- -----------
Liabilities
Payables:
Investment securities purchased 248,721 767,480 -- --
Distributions payable 18,810 100,096 5,984 103,688
Trust shares redeemed 2,765 54,910 -- 5,100
Accrued advisory fees 2,455 6,555 621 16,772
Accrued expenses 27 6,083 -- 6,184
----------- ----------- ---------- -----------
Total Liabilities 272,778 935,124 6,605 131,744
----------- ----------- ---------- -----------
Net Assets $10,128,055 $15,821,367 $3,794,256 $40,599,250
=========== =========== ========== ===========
Net Assets Consist of:
Capital paid in $9,131,904 $13,971,272 $3,475,515 $36,286,435
Undistributed net investment
income 37 2,332 476 2,113
Accumulated net realized loss
on investments (84,946) -- (24,242) --
Net unrealized appreciation
in value of investments 1,081,060 1,847,763 342,507 4,310,702
----------- ----------- ---------- -----------
Total $10,128,055 $15,821,367 $3,794,256 $40,599,250
=========== =========== ========== ===========
Net Assets:
Class A $ 9,691,352 $15,600,944 $3,423,997 $39,581,205
Class B $ 436,703 $ 220,423 $ 370,259 $ 1,018,045
Trust shares outstanding (Note 2):
Class A 720,271 1,287,198 263,667 3,030,290
Class B 32,468 18,192 28,535 78,008
Net asset value and redemption
price per share--Class A $13.46 $12.12 $12.99 $13.06
====== ====== ====== ======
Maximum offering price per
share--Class A* $14.36 $12.93 $13.86 $13.93
====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $13.45 $12.12 $12.98 $13.05
====== ====== ====== ======
<CAPTION>
Statement of Assets and Liabilities (Continued)
- ------------------------------------------- --------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
------------------------------------------------------
MINNESOTA MISSOURI OHIO OREGON
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
At identified cost $7,468,578 $1,727,632 $17,548,039 $11,445,664
========== ========== =========== ===========
At value (Note 1A) $8,053,875 $1,915,044 $19,564,914 $12,405,819
Cash 43,018 18,399 8,992 5,800
Receivables:
Interest 185,916 34,872 147,315 172,837
Investment securities sold 5,123 -- -- --
Trust shares sold 4,686 -- 1,286 2,783
---------- ---------- ----------- -----------
Total Assets 8,292,618 1,968,315 19,722,507 12,587,239
---------- ---------- ----------- -----------
Liabilities
Payables:
Investment securities purchased -- -- -- --
Distributions payable 8,419 3,142 41,744 10,280
Trust shares redeemed 5,212 50,000 21,698 21,618
Accrued advisory fees 2,067 327 8,162 3,126
Accrued expenses 2,263 -- 8,053 15
---------- ---------- ----------- -----------
Total Liabilities 17,961 53,469 79,657 35,039
---------- ---------- ----------- -----------
Net Assets $8,274,657 $1,914,846 $19,642,850 $12,552,200
========== ========== =========== ===========
Net Assets Consist of:
Capital paid in $7,783,561 $1,791,773 $17,624,084 $11,776,192
Undistributed net investment
income 91 160 1,891 1,131
Accumulated net realized loss
on investments (94,292) (64,499) -- (185,278)
Net unrealized appreciation
in value of investments 585,297 187,412 2,016,875 960,155
---------- ---------- ----------- -----------
Total $8,274,657 $1,914,846 $19,642,850 $12,552,200
========== ========== =========== ===========
Net Assets:
Class A $8,231,090 $1,797,998 $19,307,609 $11,800,346
Class B $ 43,567 $ 116,848 $ 335,241 $ 751,854
Trust shares outstanding (Note 2):
Class A 708,025 140,708 1,518,681 938,196
Class B 3,747 9,143 26,387 59,842
Net asset value and redemption
price per share--Class A $11.63 $12.78 $12.71 $12.58
====== ====== ====== ======
Maximum offering price per
share--Class A* $12.41 $13.63 $13.56 $13.42
====== ====== ====== ======
Net asset value and offering price
per share--Class B (Note 2) $11.63 $12.78 $12.70 $12.56
====== ====== ====== ======
*On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year ended December 31, 1997
- ------------------------------------------- --------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------------
ARIZONA CALIFORNIA COLORADO MICHIGAN
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Interest income $511,288 $ 857,623 $203,240 $2,186,494
-------- ---------- -------- ----------
Expenses (Notes 1 and 5):
Advisory fees 69,327 114,933 27,877 289,201
Distribution plan expenses
- --Class A 17,838 30,406 6,886 75,436
Distribution plan expenses
- --Class B 3,250 1,208 2,735 8,424
Shareholder servicing costs 9,504 11,227 6,622 29,808
Professional fees 4,281 10,068 2,854 10,947
Custodian fees 1,985 3,180 1,516 6,588
Reports to shareholders 875 2,357 548 5,819
Bond insurance premiums 232 881 28 3,664
Other expenses 4,609 6,339 2,305 10,601
-------- ---------- -------- ----------
Total expenses 111,901 180,599 51,371 440,488
Less: Expenses waived or assumed (61,113) (54,756) (33,145) (96,401)
Custodian fees paid indirectly (1,959) (2,290) (1,167) (3,228)
-------- ---------- -------- ----------
Expenses--net 48,829 123,553 17,059 340,859
-------- ---------- -------- ----------
Net investment income 462,459 734,070 186,181 1,845,635
-------- ---------- -------- ----------
Realized and Unrealized Gain
on Investments (Note 4):
Net realized gain on investments 18,999 222,497 27,776 142,240
Net unrealized appreciation of
investments 350,052 457,511 120,228 1,509,328
-------- ---------- -------- ----------
Net gain on investments 369,051 680,008 148,004 1,651,568
-------- ---------- -------- ----------
Net Increase in Net Assets
Resulting from Operations $831,510 $1,414,078 $334,185 $3,497,203
======== ========== ======== ==========
<CAPTION>
Statement of Operations (continued)
Year ended December 31, 1997
- ------------------------------------------- --------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
---------------------------------------------------
MINNESOTA MISSOURI OHIO OREGON
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Interest income $480,489 $106,957 $1,093,704 $ 608,674
-------- -------- ---------- ----------
Expenses (Notes 1 and 5):
Advisory fees 62,526 14,501 144,314 41,059
Distribution plan expenses
- --Class A 16,589 3,728 37,907 21,725
Distribution plan expenses
- --Class B 417 704 2,869 6,564
Shareholder servicing costs 8,767 2,882 20,780 15,068
Professional fees 6,969 4,119 10,455 3,817
Custodian fees 1,697 642 3,714 2,474
Reports to shareholders 816 269 4,172 1,326
Bond insurance premiums 2,445 88 1,706 1,045
Other expenses 2,206 2,307 6,967 4,631
-------- -------- ---------- ----------
Total expenses 102,432 29,240 232,884 97,709
Less: Expenses waived or assumed (59,038) (20,435) (73,830) (32,426)
Custodian fees paid indirectly (1,386) (508) (2,786) (2,442)
-------- -------- ---------- ----------
Expenses--net 42,008 8,297 156,268 62,841
-------- -------- ---------- ----------
Net investment income 438,481 98,660 937,436 545,833
-------- -------- ---------- ----------
Realized and Unrealized Gain
on Investments (Note 4):
Net realized gain on investments 47,529 8,239 108,868 40,560
Net unrealized appreciation of
investments 197,717 69,406 550,280 519,899
-------- -------- ---------- ----------
Net gain on investments 245,246 77,645 659,148 560,459
-------- -------- ---------- ----------
Net Increase in Net Assets
Resulting from Operations $683,727 $176,305 $1,596,584 $1,106,292
======== ======== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ---------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
----------------------------------------------------
ARIZONA CALIFORNIA
------------------------ -------------------------
Year Ended December 31 1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 462,459 $ 450,372 $ 734,070 $ 783,848
Net realized gain (loss) on investments 18,999 (12,135) 222,497 96,717
Net unrealized appreciation
(depreciation) of investments 350,052 (131,438) 457,511 (276,991)
----------- ---------- ----------- -----------
Net increase in net assets resulting
from operations 831,510 306,799 1,414,078 603,574
----------- ---------- ----------- -----------
Distributions to Shareholders
Net investment income--Class A (449,449) (439,590) (730,988) (779,034)
Net investment income--Class B (13,842) (11,457) (4,864) (3,389)
Net realized gains--Class A -- -- (220,063) (96,015)
Net realized gains--Class B -- -- (3,128) (702)
----------- ---------- ----------- -----------
Total distributions (463,291) (451,047) (959,043) (879,140)
----------- ---------- ----------- -----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 2,127,438 1,158,985 1,926,113 2,439,707
Value of distributions reinvested 250,827 246,952 543,564 503,349
Cost of shares redeemed (1,422,398) (1,714,270) (2,878,847) (3,656,550)
----------- ---------- ----------- -----------
955,867 (308,333) (409,170) (713,494)
----------- ---------- ----------- -----------
Class B:
Proceeds from shares sold 175,581 135,134 100,191 57,928
Value of distributions reinvested 8,313 8,278 3,784 2,585
Cost of shares redeemed (51,410) (26,879) (133) (5,492)
----------- ---------- ----------- -----------
132,484 116,533 103,842 55,021
----------- ---------- ----------- -----------
Net increase (decrease) from
trust share transactions 1,088,351 (191,800) (305,328) (658,473)
----------- ---------- ----------- -----------
Net increase (decrease) in net assets 1,456,570 (336,048) 149,707 (934,039)
Net Assets
Beginning of year 8,671,485 9,007,533 15,671,660 16,605,699
----------- ---------- ----------- -----------
End of year+ $10,128,055 $8,671,485 $15,821,367 $15,671,660
=========== ========== =========== ===========
+Includes undistributed net
investment income of $ 37 $ 869 $ 2,332 $ 4,114
=========== ========== =========== ===========
(a)Trust Shares Issued and Redeemed
Class A:
Sold 162,298 90,049 162,506 209,902
Issued for distributions reinvested 19,141 19,213 45,562 43,030
Redeemed (108,423) (133,848) (243,525) (313,942)
----------- ---------- ----------- -----------
Net increase (decrease) in Class A
trust shares outstanding 73,016 (24,586) (35,457) (61,010)
=========== ========== =========== ===========
Class B:
Sold 13,468 10,606 8,213 5,013
Issued for distributions reinvested 634 645 317 221
Redeemed (3,943) (2,118) (11) (473)
----------- ---------- ----------- -----------
Net increase in Class B trust shares
outstanding 10,159 9,133 8,519 4,761
=========== ========== =========== ===========
<CAPTION>
Statement of Changes in Net Assets (continued)
- ---------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
----------------------------------------------------
COLORADO MICHIGAN
------------------------ -------------------------
Year Ended December 31 1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 186,181 $ 183,078 $ 1,845,635 $ 1,842,579
Net realized gain (loss) on investments 27,776 3,087 142,240 95,489
Net unrealized appreciation
(depreciation) of investments 120,228 (35,688) 1,509,328 (712,973)
---------- ---------- ----------- -----------
Net increase in net assets resulting
from operations 334,185 150,477 3,497,203 1,225,095
---------- ---------- ----------- -----------
Distributions to Shareholders
Net investment income--Class A (173,961) (176,901) (1,809,590) 1,831,482)
Net investment income--Class B (11,744) (6,658) (33,932) (22,904)
Net realized gains--Class A -- -- (138,717) (31,749)
Net realized gains--Class B -- -- (3,576) (624)
---------- ---------- ----------- -----------
Total distributions (185,705) (183,559) (1,985,815) (1,886,759)
---------- ---------- ----------- -----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 543,509 619,469 3,513,245 3,302,722
Value of distributions reinvested 103,551 110,182 1,129,433 1,088,931
Cost of shares redeemed (825,607) (756,002) (3,465,523) (3,644,128)
---------- ---------- ----------- -----------
(178,547) (26,351) 1,177,155 747,525
---------- ---------- ----------- -----------
Class B:
Proceeds from shares sold 125,400 105,991 261,965 393,847
Value of distributions reinvested 11,359 6,657 19,651 15,215
Cost of shares redeemed (19,006) (2,266) (23,603) (67,111)
---------- ---------- ----------- -----------
117,753 110,382 258,013 341,951
---------- ---------- ----------- -----------
Net increase (decrease) from
trust share transactions (60,794) 84,031 1,435,168 1,089,476
---------- ---------- ----------- -----------
Net increase (decrease) in net assets 87,686 50,949 2,946,556 427,812
Net Assets
Beginning of year 3,706,570 3,655,621 37,652,694 37,224,882
---------- ---------- ----------- -----------
End of year+ $3,794,256 $3,706,570 $40,599,250 $37,652,694
========== ========== =========== ===========
+Includes undistributed net
investment income of $ 476 -- $ 2,113 --
========== ========== =========== ===========
(a)Trust Shares Issued and Redeemed
Class A:
Sold 43,260 49,858 278,017 265,393
Issued for distributions reinvested 8,215 8,905 88,609 87,215
Redeemed (65,387) (61,436) (273,847) (292,034)
---------- ---------- ----------- -----------
Net increase (decrease) in Class A
trust shares outstanding (13,912) (2,673) 92,779 60,574
========== ========== =========== ===========
Class B:
Sold 9,886 8,538 20,673 31,544
Issued for distributions reinvested 899 538 1,542 1,219
Redeemed (1,536) (182) (1,854) (5,436)
---------- ---------- ----------- -----------
Net increase in Class B trust shares
outstanding 9,249 8,894 20,361 27,327
========== ========== =========== ===========
<CAPTION>
Statement of Changes in Net Assets (continued)
- ---------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
----------------------------------------------------
MINNESOTA MISSOURI
------------------------ -------------------------
Year Ended December 31 1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 438,481 $ 436,042 $ 98,660 $ 97,927
Net realized gain (loss) on investments 47,529 2,744 8,239 2,003
Net unrealized appreciation
(depreciation) of investments 197,717 (159,203) 69,406 (29,349)
---------- ---------- ---------- ----------
Net increase in net assets resulting
from operations 683,727 279,583 176,305 70,581
---------- ---------- ---------- ----------
Distributions to Shareholders
Net investment income--Class A (436,938) (435,743) (95,683) (97,402)
Net investment income--Class B (1,867) (251) (3,062) (472)
Net realized gains--Class A -- -- -- --
Net realized gains--Class B -- -- -- --
---------- ---------- ---------- ----------
Total distributions (438,805) (435,994) (98,745) 97,874)
---------- ---------- ---------- ----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 621,511 869,472 75,383 273,844
Value of distributions reinvested 326,972 324,037 59,727 65,392
Cost of shares redeemed (1,265,323) (894,843) (335,899) (275,989)
---------- ---------- ---------- ----------
(316,840) 298,666 (200,789) 63,247
---------- ---------- ---------- ----------
Class B:
Proceeds from shares sold 48,632 40,309 74,001 35,600
Value of distributions reinvested 1,747 251 3,063 471
Cost of shares redeemed (48,765) -- (139) (620)
---------- ---------- ---------- ----------
1,614 40,560 76,925 35,451
---------- ---------- ---------- ----------
Net increase (decrease) from
trust share transactions (315,226) 339,226 (123,864) 98,698
---------- ---------- ---------- ----------
Net increase (decrease) in net assets (70,304) 182,815 (46,304) 71,405
Net Assets
Beginning of year 8,344,961 8,162,146 1,961,150 1,889,745
---------- ---------- ---------- ----------
End of year+ $8,274,657 $8,344,961 $1,914,846 $1,961,150
========== ========== ========== ==========
+Includes undistributed net
investment income of $ 91 $ 415 $ 160 $ 245
========== ========== ========== ==========
(a)Trust Shares Issued and Redeemed
Class A:
Sold 54,777 76,769 6,070 22,505
Issued for distributions reinvested 28,722 28,815 4,804 5,366
Redeemed (111,020) (79,558) (26,881) (22,674)
---------- ---------- ---------- ----------
Net increase (decrease) in Class A
trust shares outstanding (27,521) 26,026 (16,007) 5,197
========== ========== ========== ==========
Class B:
Sold 4,239 3,567 5,995 2,916
Issued for distributions reinvested 154 23 245 39
Redeemed (4,246) -- (11) (51)
---------- ---------- ---------- ----------
Net increase in Class B trust shares
outstanding 147 3,590 6,229 2,904
========== ========== ========== ==========
<CAPTION>
Statement of Changes in Net Assets (continued)
- ----------------------------------------------------------------------------------------------
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
-----------------------------------------------------
OHIO OREGON
------------------------ -------------------------
Year Ended December 31 1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net investment income $ 937,436 $ 960,046 $ 545,833 $ 430,755
Net realized gain (loss) on investments 108,868 96,918 40,560 (55,047)
Net unrealized appreciation
(depreciation) of investments 550,280 (222,524) 519,899 1,617
----------- ----------- ----------- -----------
Net increase in net assets resulting
from operations 1,596,584 834,440 1,106,292 377,325
----------- ----------- ----------- -----------
Distributions to Shareholders
Net investment income--Class A (923,757) (954,547) (521,186) (409,680)
Net investment income--Class B (11,788) (11,625) (26,319) (19,752)
Net realized gains--Class A (107,079) (95,594) -- --
Net realized gains--Class B (1,856) (1,324) -- --
----------- ----------- ----------- -----------
Total distributions (1,044,480) (1,063,090) (547,505) (429,432)
----------- ----------- ----------- -----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 1,562,659 2,972,212 2,314,351 3,429,377
Value of distributions reinvested 729,611 719,301 415,538 324,683
Cost of shares redeemed (3,651,289) (2,741,079) (1,372,531) (628,634)
----------- ----------- ----------- -----------
(1,359,019) 950,434 1,357,358 3,125,426
----------- ----------- ----------- -----------
Class B:
Proceeds from shares sold 99,500 38,639 135,183 214,120
Value of distributions reinvested 12,697 10,473 25,954 19,563
Cost of shares redeemed (64,408) (49,038) (9,259) (5,085)
----------- ----------- ----------- -----------
47,789 74 151,878 228,598
----------- ----------- ----------- -----------
Net increase (decrease) from
trust share transactions (1,311,230) 950,508 1,509,236 3,354,024
----------- ----------- ----------- -----------
Net increase (decrease) in net assets (759,126) 721,858 2,068,023 3,301,917
Net Assets
Beginning of year 20,401,976 19,680,118 10,484,177 7,182,260
----------- ----------- ----------- -----------
End of year+ $19,642,850 $20,401,976 $12,552,200 $10,484,177
=========== =========== =========== ===========
+Includes undistributed net
investment income of $ 1,891 -- $ 1,131 $ 2,803
=========== =========== =========== ===========
(a)Trust Shares Issued and Redeemed
Class A:
Sold 126,005 243,984 190,759 289,775
Issued for distributions reinvested 58,449 58,632 34,078 27,320
Redeemed (295,120) (223,273) (112,963) (53,306)
----------- ----------- ----------- -----------
Net increase (decrease) in Class A
trust shares outstanding (110,666) 79,343 111,874 263,789
=========== =========== =========== ===========
Class B:
Sold 8,014 3,178 11,116 17,950
Issued for distributions reinvested 1,017 854 2,129 1,648
Redeemed (5,212) (4,001) (747) (429)
----------- ----------- ----------- -----------
Net increase in Class B trust shares
outstanding 3,819 31 12,498 19,169
=========== =========== =========== ===========
See notes to financial statements
Notes to Financial Statements
First Investors Multi-State Insured Tax Free Fund
Arizona, California, Colorado, Michigan, Minnesota,
Missouri, Ohio and Oregon Funds
1. Significant Accounting Policies -- First Investors Multi-State
Insured Tax Free Fund ("Multi-State Insured") is registered under the
Investment Company Act of 1940 (the "1940 Act") as a diversified, open-
end management investment company. Multi-State Insured consists of
seventeen separate investment series. This report relates to the eight
Funds of Multi-State Insured listed above. Multi-State Insured operates
as a series fund, issuing shares of beneficial interest in each Fund and
accounts separately for the assets, liabilities and operations of each
Fund.
The investment objective of each Fund of Multi-State Insured is to
achieve a high level of interest income which is exempt from federal
income tax and, to the extent indicated in the prospectus, from state
and local income taxes for residents of that State.
A. Security Valuation -- The municipal securities in which the Funds
invest are traded primarily in the over-the-counter markets. Such
securities are valued daily at their fair value on the basis of
valuations provided by a pricing service approved by the Trustees. The
pricing service considers security type, rating, market condition and
yield data, as well as market quotations and prices provided by market
makers. "When Issued Securities" are reflected in the assets of the
Funds as of the date the securities are purchased.
The municipal bonds held by the Funds are insured as to payment of
principal and interest by the issuer or under insurance policies written
by independent insurance companies. The Funds may retain any insured
municipal bond which is in default in the payment of principal or
interest until the default has been cured, or the principal and interest
outstanding are paid by an insurer or the issuer of any letter of credit
or other guarantee supporting such municipal bond. In such case, it is
the Funds' policy to value the defaulted bond daily based upon the value
of a comparable bond which is insured and not in default. In selecting a
comparable bond, the Funds will consider security type, rating, market
condition and yield. Each Fund may invest up to 35% of its assets in
portfolio securities not covered by the insurance feature.
B. Federal Income Taxes -- It is the policy of each Fund to continue to
qualify as a regulated investment company, which can distribute tax
exempt dividends, by complying with the provisions available to certain
investment companies, as defined in the Internal Revenue Code. The Funds
make distributions of income and net realized capital gains sufficient
to relieve them from all, or substantially all, federal income taxes. At
December 31, 1997, Funds having capital loss carryovers were as follows:
Year Capital Loss
Carryovers Expire
-----------------------------
MULTI-STATE INSURED Total 2002 2003 2004
- ------------------- -------- -------- -------- --------
ARIZONA Fund $ 84,946 $ 72,811 $ -- $12,135
COLORADO Fund 24,242 24,242 -- --
MINNESOTA Fund 94,292 29,658 64,634 --
MISSOURI Fund 64,499 54,794 9,705 --
OREGON Fund 183,071 128,024 -- 55,047
C. Distributions to Shareholders -- Dividends from net investment income
are declared daily and are paid monthly. Dividends from net realized
capital gains are normally declared and paid annually. Income dividends
and capital gain distributions are determined in accordance with tax
regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments
for capital loss carryforwards, deferral of wash sales and post-October
capital losses.
D. Expense Allocation -- Direct expenses attributable to a Fund are
charged to and paid from the assets of that Fund. Indirect or general
expenses of Multi-State Insured are allocated among and charged to the
assets of each Fund on a fair and equitable basis, which may be based on
the relative assets of each Fund or the nature of the services performed
and relative applicability to each Fund.
E. Security Transactions and Investment Income -- Security transactions
are accounted for on the date the securities are purchased or sold. Cost
is determined, and gains and losses are based, on the identified cost
basis for both financial statement and federal income tax purposes.
Interest income is earned from settlement date and recorded on the
accrual basis. Estimated expenses are accrued daily. The Funds'
custodian has provided credits in the amount of $15,766, against
custodian charges based on the uninvested cash balances of the Funds.
F. Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
2. Capital -- Each Fund sells two classes of shares, Class A and Class
B, each with a public offering price that reflects different sales
charges and expense levels. Class A shares are sold with an initial
sales charge of up to 6.25% of the amount invested and together with the
Class B shares are subject to distribution plan fees as described in
Note 5. Class B shares are sold without an initial sales charge, but are
generally subject to a contingent deferred sales charge which declines
in steps from 4% to 0% over a six-year period. Class B shares
automatically convert into Class A shares after eight years. Realized
and unrealized gains or losses, investment income and expenses (other
than distribution plan fees) are allocated daily to each class of shares
based upon the relative proportion of net assets of each class. Multi-
State Insured has established an unlimited number of Class A and Class B
shares of beneficial interest.
3. Concentration of Credit Risk -- The Funds invest in debt instruments
of municipal issuers whose ability to meet their obligations may be
affected by economic developments in a State, industry or region.
4. Security Transactions -- For the year ended December 31, 1997,
purchases and sales of municipal securities were as follows:
Cost Proceeds
of of
MULTI-STATE INSURED Purchases Sales
- ------------------- ------------ ------------
ARIZONA Fund $ 3,483,162 $ 2,218,286
CALIFORNIA Fund 7,491,258 7,116,695
COLORADO Fund 1,413,974 1,452,818
MICHIGAN Fund 13,547,030 12,101,177
MINNESOTA Fund 1,264,857 1,549,137
MISSOURI Fund 230,785 334,761
OHIO Fund 4,760,487 5,898,708
OREGON Fund 5,188,754 3,608,982
At December 31, 1997, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
</TABLE>
<TABLE>
<CAPTION>
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Cost Appreciation Depreciation Appreciation
------------ ------------ ------------ ------------
MULTI-STATE INSURED
- -------------------
<S> <C> <C> <C> <C>
ARIZONA Fund $ 9,008,365 $ 1,081,412 $ 352 $ 1,081,060
CALIFORNIA Fund 14,618,468 1,847,763 -- 1,847,763
COLORADO Fund 3,412,843 342,507 -- 342,507
MICHIGAN Fund 35,761,596 4,310,702 -- 4,310,702
MINNESOTA Fund 7,468,578 585,297 -- 585,297
MISSOURI Fund 1,727,632 187,412 -- 187,412
OHIO Fund 17,548,039 2,016,875 -- 2,016,875
OREGON Fund 11,447,871 957,948 -- 957,948
</TABLE>
5. Advisory Fee and Other Transactions With Affiliates -- Certain
officers and trustees of the Funds are officers and directors of the
Funds' investment adviser, First Investors Management Company, Inc.
("FIMCO"), their underwriter, First Investors Corporation ("FIC") and/or
their transfer agent, Administrative Data Management Corp. ("ADM").
Officers and trustees of the Funds received no remuneration from the
Funds for serving in such capacities. Their remuneration (together with
certain other expenses of the Funds) was paid by FIMCO or FIC. Effective
January 1, 1998, independent trustees will be remunerated by the Funds.
The Investment Advisory Agreement provides as compensation to FIMCO an
annual fee, payable monthly, at the rate of .75% on the first $250
million of the average daily net assets of each Fund, declining by .03%
on each $250 million thereafter, down to .66% on average daily net
assets over $750 million. For the year ended December 31, 1997, advisory
fees amounted to $763,738, of which $299,506 was waived; other expenses
in the amount of $131,638 were assumed by FIMCO.
For the year ended December 31, 1997, FIC, as underwriter, received
$338,855 in commissions on sales of shares of the eight Funds of Multi-
State Insured included in this report, after allowing $177,457 to other
dealers. Shareholder servicing costs consisted of $95,417, in transfer
agent fees accrued to ADM.
Pursuant to Distribution Plans adopted under Rule 12b-1 of the 1940 Act,
each Fund is authorized to pay FIC a fee up to .30% of the average net
assets of the Class A shares and up to 1% of the average net assets of
the Class B shares, on an annualized basis each fiscal year, payable
monthly. The fee consists of a distribution fee and a service fee. The
service fee is paid for the ongoing servicing of clients who are
shareholders of that Fund.
This page intentionally left blank.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ARIZONA FUND
Class A
1993 $12.08 $.681 $ 1.078 $1.759 $.672 $.047
1994 13.12 .663 (1.397) (.734) .676 --
1995 11.71 .665 1.448 2.113 .673 --
1996 13.15 .664 (.199) .465 .665 --
1997 12.95 .658 .511 1.169 .659 --
Class B
1/12/95* to 12/31/95 11.82 .544 1.340 1.884 .554 --
1996 13.15 .565 (.201) .364 .564 --
1997 12.95 .556 .500 1.056 .556 --
CALIFORNIA FUND
Class A
1993 $11.44 $.637 $ .845 $1.482 $.612 $.190
1994 12.12 .598 (1.328) (.730) .620 --
1995 10.77 .580 1.335 1.915 .589 .136
1996 11.96 .576 (.128) .448 .575 .073
1997 11.76 .569 .534 1.103 .570 .173
Class B
1/12/95* to 12/31/95 10.87 .472 1.227 1.699 .483 .136
1996 11.95 .486 (.123) .363 .480 .073
1997 11.76 .476 .532 1.008 .475 .173
COLORADO FUND
Class A
1993 $11.63 $.625 $ .984 $1.609 $.633 $.006
1994 12.60 .631 (1.351) (.720) .640 --
1995 11.24 .668 1.340 2.008 .668 --
1996 12.58 .642 (.089) .553 .643 --
1997 12.49 .638 .498 1.136 .636 --
Class B
1/12/95* to 12/31/95 11.35 .564 1.239 1.803 .573 --
1996 12.58 .547 (.100) .447 .547 --
1997 12.48 .539 .501 1.040 .540 --
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ARIZONA FUND
Class A
1993 $.719 $13.12 14.87 $ 8,247 .20 5.40
1994 .676 11.71 (5.63) 8,803 .30 5.52
1995 .673 13.15 18.41 8,834 .50 5.27
1996 .665 12.95 3.69 8,383 .53 5.17
1997 .659 13.46 9.28 9,691 .50 5.03
Class B
1/12/95* to 12/31/95 .554 13.15 16.20 173 1.30+ 4.62+
1996 .564 12.95 2.89 289 1.33 4.37
1997 .556 13.45 8.36 437 1.30 4.23
CALIFORNIA FUND
Class A
1993 $.802 $12.12 13.21 $17,625 .89 5.33
1994 .620 10.77 (6.10) 15,335 .97 5.27
1995 .725 11.96 18.16 16,547 .90 5.02
1996 .648 11.76 3.91 15,558 .84 4.93
1997 .743 12.12 9.66 15,601 .80 4.80
Class B
1/12/95* to 12/31/95 .619 11.95 15.91 59 1.74+ 4.31+
1996 .553 11.76 3.16 114 1.63 4.14
1997 .648 12.12 8.79 220 1.60 4.00
COLORADO FUND
Class A
1993 $.639 $12.60 14.14 $ 2,887 .12 5.13
1994 .640 11.24 (5.77) 3,110 .20 5.41
1995 .668 12.58 18.25 3,525 .20 5.54
1996 .643 12.49 4.57 3,466 .38 5.20
1997 .636 12.99 9.37 3,424 .40 5.07
Class B
1/12/95* to 12/31/95 .573 12.58 16.18 131 1.00+ 4.90+
1996 .547 12.48 3.68 241 1.19 4.39
1997 .540 12.98 8.55 370 1.20 4.27
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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.
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------
Ratio to Average Net Assets Before
Expenses Waived or Assumed
----------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- -----------------------------------------------------------------------
<S> <C> <C> <C>
ARIZONA FUND
Class A
1993 1.20 4.41 45
1994 1.24 4.59 63
1995 1.15 4.62 36
1996 1.23 4.47 27
1997 1.16 4.37 24
Class B
1/12/95* to 12/31/95 1.95+ 3.95+ 36
1996 2.03 3.67 27
1997 1.96 3.57 24
CALIFORNIA FUND
Class A
1993 1.14 5.08 66
1994 1.22 5.02 83
1995 1.15 4.77 53
1996 1.19 4.58 30
1997 1.16 4.44 46
Class B
1/12/95* to 12/31/95 2.00+ 4.04+ 53
1996 1.98 3.79 30
1997 1.96 3.64 46
COLORADO FUND
Class A
1993 1.42 3.83 27
1994 1.43 4.18 108
1995 1.32 4.42 45
1996 1.40 4.17 20
1997 1.29 4.18 39
Class B
1/12/95* to 12/31/95 2.12+ 3.75+ 45
1996 2.21 3.36 20
1997 2.09 3.38 39
*Date Class B shares were first offered
**Calculated without sales charges
+Annualized
++Net of expenses waived or assumed by the investment adviser and the transfer agent (Note 5).
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MICHIGAN FUND
Class A
1993 $11.93 $.641 $ 1.053 $1.694 $.655 $.079
1994 12.89 .612 (1.423) (.811) .609 --
1995 11.47 .634 1.331 1.965 .635 --
1996 12.80 .627 (.215) .412 .631 .011
1997 12.57 .610 .535 1.145 .609 .046
Class B
1/12/95* to 12/31/95 11.57 .528 1.241 1.769 .539 --
1996 12.80 .534 (.229) .305 .534 .011
1997 12.56 .511 .536 1.047 .511 .046
MINNESOTA FUND
Class A
1993 $11.30 $.625 $ .622 $1.247 $.640 $.137
1994 11.77 .592 (1.282) (.690) .600 --
1995 10.48 .589 1.022 1.611 .591 --
1996 11.50 .592 (.210) .382 .592 --
1997 11.29 .599 .340 .939 .599 --
Class B
1/12/95* to 12/31/95 10.55 .515 .950 1.465 .515 --
1996 11.50 .493 (.205) .288 .498 --
1997 11.29 .508 .341 .849 .509 --
MISSOURI FUND
Class A
1993 $11.55 $.620 $ .988 $1.608 $.635 $.023
1994 12.50 .617 (1.384) (.767) .613 --
1995 11.12 .662 1.356 2.018 .668 --
1996 12.47 .637 (.180) .457 .637 --
1997 12.29 .638 .490 1.128 .638 --
Class B
1/12/95* to 12/31/95 11.22 .548 1.260 1.808 .548 --
1996 12.48 .538 (.189) .349 .539 --
1997 12.29 .537 .494 1.031 .541 --
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MICHIGAN FUND
Class A
1993 $.734 $12.89 14.49 $30,281 .89 5.11
1994 .609 11.47 (6.36) 30,362 .93 5.11
1995 .635 12.80 17.47 36,837 .89 5.14
1996 .642 12.57 3.37 36,928 .88 5.03
1997 .655 13.06 9.37 39,581 .87 4.80
Class B
1/12/95* to 12/31/95 .539 12.80 15.55 388 1.76+ 4.41+
1996 .545 12.56 2.49 724 1.69 4.22
1997 .557 13.05 8.54 1,018 1.67 4.00
MINNESOTA FUND
Class A
1993 $.777 $11.77 11.30 $ 8,118 .65 5.40
1994 .600 10.48 (5.93) 7,375 .65 5.40
1995 .591 11.50 15.68 8,162 .65 5.29
1996 .592 11.29 3.47 8,304 .56 5.27
1997 .599 11.63 8.57 8,231 .50 5.27
Class B
1/12/95* to 12/31/95 .515 11.50 14.13 .1 1.45+ 4.64+
1996 .498 11.29 2.61 41 1.40 4.44
1997 .509 11.63 7.71 44 1.30 4.47
MISSOURI FUND
Class A
1993 $.658 $12.50 14.21 $ 1,540 .13 4.44
1994 .613 11.12 (6.20) 1,611 .20 5.45
1995 .668 12.47 18.55 1,890 .20 5.58
1996 .637 12.29 3.84 1,925 .38 5.24
1997 .638 12.78 9.44 1,798 .40 5.13
Class B
1/12/95* to 12/31/95 .548 12.48 16.41 .1 1.00+ 4.94+
1996 .539 12.29 2.93 36 1.24 4.38
1997 .541 12.78 8.60 117 1.20 4.33
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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.
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------
Ratio to Average Net Assets Before
Expenses Waived or Assumed
----------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- -----------------------------------------------------------------------
<S> <C> <C> <C>
MICHIGAN FUND
Class A
1993 1.14 4.86 25
1994 1.18 4.86 60
1995 1.14 4.89 45
1996 1.13 4.78 43
1997 1.12 4.55 32
Class B
1/12/95* to 12/31/95 2.02+ 4.15+ 45
1996 1.94 3.97 43
1997 1.92 3.75 32
MINNESOTA FUND
Class A
1993 1.24 4.80 41
1994 1.29 4.76 34
1995 1.31 4.63 53
1996 1.31 4.52 49
1997 1.21 4.56 15
Class B
1/12/95* to 12/31/95 2.11+ 3.96+ 53
1996 2.14 3.69 49
1997 2.01 3.76 15
MISSOURI FUND
Class A
1993 1.76 2.81 8
1994 1.57 4.07 98
1995 1.42 4.36 50
1996 1.69 3.93 15
1997 1.46 4.07 12
Class B
1/12/95* to 12/31/95 2.22+ 3.68+ 50
1996 2.55 3.07 15
1997 2.26 3.27 12
*Date Class B shares were first offered
**Calculated without sales charges
+Annualized
++Net of expenses waived or assumed by the investment adviser and
the transfer agent (Note 5).
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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 Asset Net
Value Realized and
------------ Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized
of Period Income Investments Operations Income Gain
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OHIO FUND
Class A
1993 $11.87 $.632 $ .894 $1.526 $.632 $.104
1994 12.66 .613 (1.353) (.740) .620 --
1995 11.30 .615 1.306 1.921 .619 .092
1996 12.51 .605 (.097) .508 .609 .059
1997 12.35 .607 .430 1.037 .606 .071
Class B
1/12/95* to 12/31/95 11.40 .503 1.212 1.715 .513 .092
1996 12.51 .507 (.095) .412 .513 .059
1997 12.35 .507 .424 .931 .510 .071
OREGON FUND
Class A
1993 $11.42 $.661 $ .807 $1.468 $.598 $ --
1994 12.29 .529 (1.339) (.810) .610 --
1995 10.87 .626 1.289 1.915 .625 --
1996 12.16 .589 (.161) .428 .588 --
1997 12.00 .582 .582 1.164 .584 --
Class B
1/12/95* to 12/31/95 10.97 .541 1.182 1.723 .543 --
1996 12.15 .495 (.161) .334 .494 --
1997 11.99 .485 .573 1.058 .488 --
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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 RATIOS/SUPPLEMENTAL DATA
------------------------- ---------------------------------------------------
Ratio to Average Net Assets++
-----------------------------
Net Asset
Value Net
-------- Total Net Assets Investment
Total End of Return** End of Period Expenses Income
Distributions Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OHIO FUND
Class A
1993 $.736 $12.66 13.12 $20,366 .80 5.09
1994 .620 11.30 (5.91) 18,169 .85 5.18
1995 .711 12.51 17.34 19,398 .87 5.07
1996 .668 12.35 4.23 20,123 .86 4.95
1997 .677 12.71 8.64 19,308 .80 4.88
Class B
1/12/95* to 12/31/95 .605 12.51 15.30 282 1.76+ 4.33+
1996 .572 12.35 3.43 279 1.66 4.15
1997 .581 12.70 7.73 335 1.60 4.08
OREGON FUND
Class A
1993 $.598 $12.29 13.13 $ 3,747 -- 4.94
1994 .610 10.87 (6.65) 4,696 .20 5.36
1995 .625 12.16 17.99 6,840 .20 5.36
1996 .588 12.00 3.68 9,917 .46 4.97
1997 .584 12.58 9.97 11,800 .50 4.78
Class B
1/12/95* to 12/31/95 .543 12.15 16.00 342 1.00+ 4.72+
1996 .494 11.99 2.87 568 1.26 4.17
1997 .488 12.56 9.03 752 1.30 3.98
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS MULTI-STATE INSURED TAX FREE 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.
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------
Ratio to Average Net Assets Before
Expenses Waived or Assumed
----------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- -----------------------------------------------------------------------
<S> <C> <C> <C>
OHIO FUND
Class A
1993 1.15 4.74 30
1994 1.20 4.83 57
1995 1.22 4.72 70
1996 1.19 4.62 33
1997 1.18 4.50 25
Class B
1/12/95* to 12/31/95 2.13+ 3.95+ 70
1996 1.99 3.82 33
1997 1.98 3.70 25
OREGON FUND
Class A
1993 1.28 3.66 77
1994 1.39 4.17 135
1995 1.23 4.33 36
1996 1.26 4.16 21
1997 .78 4.50 32
Class B
1/12/95* to 12/31/95 2.03+ 3.65+ 36
1996 2.07 3.36 21
1997 1.58 3.70 32
*Date Class B shares were first offered
**Calculated without sales charges
+Annualized
++Net of expenses waived or assumed by the investment adviser and
the transfer agent (Note 5).
See notes to financial statements
</TABLE>
Independent Auditors' Report
To the Shareholders and Trustees of
First Investors Multi-State Insured Tax Free Fund
Arizona, California, Colorado, Michigan, Minnesota,
Missouri, Ohio and Oregon Funds
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the eight Funds of First
Investors Multi-State Insured Tax Free Fund listed above as of December
31, 1997, the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the
period then ended and financial highlights for the periods indicated
thereon. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of each of the eight Funds of First Investors
Multi-State Insured Tax Free Fund listed above as of December 31, 1997,
and the results of their operations, changes in their net assets and
financial highlights for the periods indicated thereon, in conformity
with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 30, 1998
This page left blank intentionally.
FIRST INVESTORS MULTI-STATE INSURED TAX FREE FUND
Trustees
- -----------------------------------------------------------
James J. Coy (Emeritus)
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
Nancy S. Schaenen
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- -----------------------------------------------------------
Glenn O. Head
President
Clark D. Wagner
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
Shareholder Information
- -----------------------------------------------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Ave., N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Eight Penn Center Plaza
Philadelphia, PA 19103
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.
