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Balanced Income Fund

Investment Adviser: Foresters Investment Management Company, Inc.

Portfolio Managers: Clark D. Wagner and Edwin D. Miska

Objective and Strategy

The Fund seeks income as its primary objective and has a secondary objective of capital appreciation. Under normal market conditions, the Fund will invest approximately 60-80% of its net assets in bonds, money market instruments and cash, and approximately 20-40% of its net assets in stocks. The Fund combines a “top-down” asset allocation with a “bottom-up” security selection approach. It uses fundamental research and analysis to identify fixed income and equity securities that offer attractive valuation and income potential.

Asset Allocation (%)

As of 06-30-2017

This information is for illustrative purposes only and includes only invested cash; therefore, the sum of all sectors as a percentage of net assets may not equal 100%.

Returns as of 06-30-2017 06-30-2017
Gross/Net Exp as of 09-30-2016 Gross/Net Exp as of 09-30-2016
Average Annual Total Returns
Class 1 Yr. % 3 Yr. % 5 Yr. % 10 Yr. % Since inception* Inception date Gross/Net Exp %
Average Annual Total Returns
Aat NAV5.01N/AN/AN/A6.7210-01-20152.21/1.15
w/ sales charge0.80N/AN/AN/A4.2410-01-20152.21/1.15
Advisorat NAV5.40N/AN/AN/A7.1210-01-20151.98/0.82
Institutionalat NAV5.42N/AN/AN/A7.1610-01-20151.93/0.69
Average Annual Total Returns
ClassA
at NAV
1 Yr. %5.01
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*6.72
Inception date10-01-2015
Gross/Net Exp %2.21/1.15
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %0.80
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*4.24
Inception date10-01-2015
Gross/Net Exp %2.21/1.15
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %5.40
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*7.12
Inception date10-01-2015
Gross/Net Exp %1.98/0.82
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %5.42
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*7.16
Inception date10-01-2015
Gross/Net Exp %1.93/0.69
Average Annual Total Returns
Class 1 Yr. % 3 Yr. % 5 Yr. % 10 Yr. % Since inception* Inception date Gross/Net Exp %
Average Annual Total Returns
Aat NAV5.01N/AN/AN/A6.7210-01-20152.21/1.15
w/ sales charge0.80N/AN/AN/A4.2410-01-20152.21/1.15
Advisorat NAV5.40N/AN/AN/A7.1210-01-20151.98/0.82
Institutionalat NAV5.42N/AN/AN/A7.1610-01-20151.93/0.69
Average Annual Total Returns
ClassA
at NAV
1 Yr. %5.01
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*6.72
Inception date10-01-2015
Gross/Net Exp %2.21/1.15
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %0.80
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*4.24
Inception date10-01-2015
Gross/Net Exp %2.21/1.15
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %5.40
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*7.12
Inception date10-01-2015
Gross/Net Exp %1.98/0.82
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %5.42
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*7.16
Inception date10-01-2015
Gross/Net Exp %1.93/0.69

*For funds with less than 1, 3, 5 or 10 year performance data.

  

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance of share classes will differ because each class is sold pursuant to different sales arrangements and bears different expenses.  The Class A returns shown with sales charges are based on the maximum sales charge of 5.75%. The Class B returns shown with sales charges are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). The Advisor Class and Institutional Class returns are shown as NAV only returns since these classes are sold without sales charges. Redemptions of Class B shares may be subject to a deferred sales charge. For performance data current to the most recent month-end call 800 524 2803 or visit Pricing & Performance. Returns may reflect waivers or reimbursements of certain expenses. Absent of these waivers or reimbursements, returns may be lower.


Asset Allocation (%)

As of 06-30-2017

This information is for illustrative purposes only and includes only invested cash; therefore, the sum of all sectors as a percentage of net assets may not equal 100%.

Top Equity Holdings

As of 06-30-2017
Top Equity Holdings
Security% of Total Net Assets
Philip Morris International, Inc.1.3%
Altria Group, Inc.1.1%
Microsoft Corp.1.1%
Apple, Inc.1.0%
3M Company1.0%
Lockheed Martin Corp.0.9%
Johnson & Johnson0.9%
Pfizer, Inc.0.9%
Triton International, Ltd.0.9%
AbbVie, Inc.0.8%
Total9.9%

This information is solely for illustrative purposes. The portfolio as of the date of this report may or may not be the same as the portfolio on the date this material is used.

Top Fixed Income Holdings

As of 06-30-2017
Top Fixed Income Holdings
Security% of Total Net Assets
iShares IBoxx USD High Yield Corporate Bond ETF2.7%
Fannie Mae, 4.000%, 2045-20462.5%
Fannie Mae, 3.500%, 2045-20462.4%
Home Depot, Inc., 5.875%, 12/16/20361.5%
Goldman Sachs Group, Inc., 3.625%, 01/22/20231.2%
Entergy Arkansas, Inc., 4.950%, 12/15/20441.2%
BP Capital Markets, PLC, 3.216%, 11/28/20231.2%
Citigroup, Inc., 3.700%, 01/12/20261.2%
Realty Income Corporation, 3.250%, 10/15/20221.2%
Ford Motor Credit Co., LLC, 2.875%, 10/01/20181.2%
Total16.3%

This information is solely for illustrative purposes. The portfolio as of the date of this report may or may not be the same as the portfolio on the date this material is used.

Class A Advisor Class Institutional Class
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 4.00%1 None None
Maximum deferred sales charge (load) (as a percentage of the lower of purchase price or redemption price) 1.00%2 None None
Class A Advisor Class Institutional Class
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.30% None None
Other Expenses3 1.21% 1.28% 1.23%
Total Annual Fund Operating Expenses 2.21% 1.98% 1.93%
 Fee Limitation and/or Expense Reimbursement4 1.06% 1.16% 1.24%
 Total Annual Fund Operating Expenses After Fee Limitation and/or Expense Reimbursement 1.15% 0.82% 0.69%

1Due to rounding of numbers in calculating a sales charge, you may pay more or less than what is shown above.

2A CDSC of 1.00% will be assessed on certain redemptions of Class A shares that are purchased without a sales charge.

3Expenses are based on estimated expenses expected to be incurred for the current fiscal year.

4The Adviser has contractually agreed to limit fees and/or reimburse expenses of the Fund until at least January 31, 2018, to the extent that Total Annual Fund Operating Expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) exceed 1.15% for Class A, 0.82% for Advisor Class and 0.69% for Institutional Class shares.  The Adviser can be reimbursed by the Fund within three years after the date the fee limitation and/or expense reimbursement has been made by the Adviser, provided that such repayment does not cause the expenses of the Fund’s Class A, Advisor Class or Institutional Class shares to exceed the applicable expense ratio in place at the time the expenses are waived or assumed.  The fee limitation and/or expense reimbursement may be terminated or amended prior to January 31, 2018, only with the approval of the Fund’s Board of Trustees.

Clark Wagner

Clark D. Wagner

Clark D. Wagner, President, Foresters Investment Management Company (FIMCO) and Vice President and Chief Investment Officer, Foresters Financial™, serves as Portfolio Manager of the Strategic Income Fund, Total Return Fund, Life Series Total Return Fund, Balanced Income Fund and Life Series Balanced Income Fund. He also serves as Co-Portfolio Manager of the Tax Exempt Income Fund, Tax Exempt Opportunities Fund, and each of the Single State Tax Exempt Funds. Mr. Wagner has served as President of FIMCO since 2016 and served as the Director of Fixed Income from 2001 – 2016. Prior to that Mr. Wagner served as Chief Investment Officer of FIMCO from 1992-2001. Mr. Wagner joined FIMCO in 1991 as a Portfolio Manager.

Ed Miska

Edwin D. Miska

Edwin D. Miska, Director of Equities at Foresters Investment Management Company, Inc. (“FIMCO”), serves as the Portfolio Manager of the Growth & Income Fund, Life Series Growth & Income Fund, the Balanced Income Fund, Life Series Balanced Income Fund, Total Return Fund, Life Series Total Return Fund and serves as Co-Portfolio Manager of the Opportunity Fund and Life Series Opportunity Fund. Prior to joining FIMCO in 2002, Mr. Miska was a Senior Portfolio Manager and Managing Director of Evergreen Asset Management Corporation.

How to obtain a prospectus

For more complete information on any First Investors fund, you may obtain a free prospectus by downloading it here, contacting your registered representative, or calling 800 423 4026. You should consider the investment objectives, risks, fees or charges, and expenses of the fund carefully before investing. The prospectus and summary prospectus contain this and other information about the fund, and should be read carefully before you invest or send money. An investment in a fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Principal Risks:  You can lose money by investing in the Fund.  There is no guarantee that the Fund will meet its investment objective.  The Fund is intended for investors who:

  • Are seeking current income with potential for capital appreciation,
  • Want an investment that provides diversification among different asset classes,
  • Are willing to accept a moderate degree of investment risk, and
  • Have a long-term investment horizon and are able to ride out market cycles.

Here are the principal risks of investing in the Fund:

Allocation Risk.  The Fund may allocate assets to investment classes that underperform other classes.  For example, the Fund may be overweighted in bonds when the bond market is falling and the stock market is rising.

Credit Risk.  This is the risk that a debt issuer may become unable to pay interest or principal when due.  The prices of debt securities are affected by the credit quality of the issuer and, in the case of mortgage-backed securities, the credit quality of the underlying mortgages.  Credit risk also applies to securities issued or guaranteed by the U.S. Government and by U.S. Government-sponsored enterprises that are not backed by the full faith and credit of the U.S. Government.  Securities issued by U.S. Government-sponsored enterprises are supported only by the credit of the issuing entity.

Derivatives Risk.  Investments in U.S. Treasury futures and options on U.S. Treasury futures to hedge against changes in interest rates involve risks, such as potential losses if interest rates do not move as expected and the potential for greater losses than if these techniques had not been used.  Investments in derivatives can increase the volatility of the Fund’s share price and may expose the Fund to significant additional costs.  Derivatives may be difficult to sell, unwind or value.

Dividend Risk.  At times, the Fund may not be able to identify attractive dividend-paying stocks.  The income received by the Fund will fluctuate due to the amount of dividends that companies elect to pay.

Exchange-Traded Funds Risk.  The risks of investing in ETFs typically reflect the risks of the types of instruments in which the ETF invests. In addition, because ETFs are investment companies, the Fund will bear its proportionate share of the fees and expenses of an investment in an ETF. As a result, the Fund’s expenses may be higher and performance may be lower.

Floating Rate Loan Risk.  The value of any collateral securing a floating rate loan may decline, be insufficient to meet the borrower’s obligations, or be difficult or costly to liquidate.  It may take significantly longer than 7 days for investments in floating rate loans to settle, which can adversely affect the ability to timely honor redemptions.  In the event of a default, it may be difficult to collect on any collateral and a floating rate loan can decline significantly in value.  Access to collateral may also be limited by bankruptcy or other insolvency laws.  Although senior loans may be senior to equity and debt securities in the borrower’s capital structure, the loans may be subordinated to other obligations of the borrower or its subsidiaries.  If a floating rate loan is acquired through an assignment, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. In addition, high yield floating rate loans usually are more credit sensitive.  Floating rate loans may not be considered “securities” for certain purposes of the federal securities laws and purchasers, therefore, may not be entitled to rely on the anti-fraud provisions of the federal securities laws.

High Yield Securities Risk.  High yield debt securities (commonly known as “junk bonds”), including floating rate loans, have greater credit risk than higher quality debt securities because their issuers may not be as financially strong.  High yield securities are inherently speculative due to the risk associated with the issuer’s ability to make principal and interest payments.  During times of economic stress, high yield securities issuers may be unable to access credit to refinance their bonds or meet their credit obligations.

Interest Rate Risk.  In general, when interest rates rise, the market value of a debt security declines, and when interest rates decline, the market value of a debt security increases.  As of the date of this prospectus, interest rates are near historic lows, which may increase the Fund’s exposure to the risks associated with rising interest rates.  Securities with longer maturities and durations are generally more sensitive to interest rate changes.

Market Risk.  Stock prices may decline over short or even extended periods not only because of company-specific developments, but also due to general economic and market conditions, adverse political or regulatory developments or interest rate fluctuations.  Similarly, bond prices fluctuate in value with changes in interest rates, the economy and the financial conditions of companies that issue them.  Adverse market events may lead to increased redemptions, which could cause the Fund to experience a loss or difficulty in selling securities to meet redemptions.

Mid-Size and Small-Size Company Risk.  The market risk associated with stocks of mid- and small-size companies is generally greater than that associated with stocks of larger, more established companies because stocks of mid- and small-size companies tend to experience sharper price fluctuations.  At times, it may be difficult for the Fund to sell mid-to small-size company stocks at reasonable prices.

Prepayment and Extension Risk.  The Fund is subject to prepayment and extension risk since it invests in mortgage-backed securities.  When interest rates decline, borrowers tend to refinance their mortgages.  When this occurs, the mortgages that back these securities suffer a higher rate of prepayment.  This could cause a decrease in the Fund’s income and share price.  Conversely, when interest rates rise, borrowers tend to repay their mortgages less quickly, which will generally increase both the Fund’s sensitivity to rising interest rates and its potential for price declines.

Security Selection Risk.  Securities selected by the portfolio manager may perform differently than the overall market or may not meet the portfolio manager’s expectations.

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