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Covered Call Strategy Fund

Investment Adviser:  Foresters Investment Management Company, Inc. (“FIMCO”) is the Fund’s investment adviser and Ziegler Capital Management, LLC (“ZCM”) serves as subadviser to the Fund.

Portfolio Manager: Wiley D. Angell and Sean C. Hughes, CFA

Investment Objective and Strategy

The Fund seeks long-term capital appreciation. The Fund invests in a portfolio of equity securities and writes (sells) call options on those securities.  Under normal market circumstances, the Fund will write (sell) call options on at least 80% of the Fund’s total assets.  The Fund will normally write (sell) covered call options listed on U.S. exchanges on the equity securities held by the Fund to seek to lower the overall volatility of the Fund’s portfolio, protect the Fund from market declines and generate income.  The Fund’s equity investments will consist primarily of common stocks of large-size U.S. companies, certain of which may pay dividends, and U.S. dollar-denominated equity securities of foreign issuers (i.e., American Depositary Receipts (“ADRs”)), traded on U.S. securities exchanges.  To a lesser extent, the Fund may also invest in and write (sell) covered call options on securities of mid- and small-capitalization issuers and exchange-traded funds (“ETFs”) that track certain market indices, such as the S&P 500. The nature of the Fund is such that it may be expected to underperform equity markets during periods of sharply rising equity prices; conversely, the Fund seeks to reduce losses relative to equity markets during periods of declining equity prices.

Sector 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 NAV9.08N/AN/AN/A8.4404-01-20161.48/1.30
w/ sales charge2.79N/AN/AN/A3.4104-01-20161.48/1.30
Advisorat NAV9.42N/AN/AN/A8.7504-01-20161.12/0.97
Institutionalat NAV9.56N/AN/AN/A8.9404-01-20161.05/0.84
Average Annual Total Returns
ClassA
at NAV
1 Yr. %9.08
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*8.44
Inception date04-01-2016
Gross/Net Exp %1.48/1.30
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %2.79
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*3.41
Inception date04-01-2016
Gross/Net Exp %1.48/1.30
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %9.42
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*8.75
Inception date04-01-2016
Gross/Net Exp %1.12/0.97
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %9.56
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*8.94
Inception date04-01-2016
Gross/Net Exp %1.05/0.84
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 NAV9.08N/AN/AN/A8.4404-01-20161.48/1.30
w/ sales charge2.79N/AN/AN/A3.4104-01-20161.48/1.30
Advisorat NAV9.42N/AN/AN/A8.7504-01-20161.12/0.97
Institutionalat NAV9.56N/AN/AN/A8.9404-01-20161.05/0.84
Average Annual Total Returns
ClassA
at NAV
1 Yr. %9.08
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*8.44
Inception date04-01-2016
Gross/Net Exp %1.48/1.30
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %2.79
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*3.41
Inception date04-01-2016
Gross/Net Exp %1.48/1.30
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %9.42
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*8.75
Inception date04-01-2016
Gross/Net Exp %1.12/0.97
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %9.56
3 Yr. %N/A
5 Yr. %N/A
10 Yr. %N/A
Since inception*8.94
Inception date04-01-2016
Gross/Net Exp %1.05/0.84

*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.

Sector 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 Holdings (%)

As of 06-30-2017
Top Holdings (%)
Security% of Total Net Assets
Dow Chemical Co.5.0%
JPMorgan Chase & Co.4.9%
Medtronic, PLC4.7%
Bank of America Corp.4.5%
Honeywell International, Inc.4.3%
Allergan, PLC4.3%
Apple, Inc.4.1%
Raytheon Company4.1%
Goldman Sachs Group, Inc.3.9%
Oracle Corp.3.8%
Total43.6%

 

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) 5.75%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 0.80% 0.80% 0.80%
Distribution and Service (12b-1) Fees 0.25% None None
Other Expenses3 0.43% 0.32% 0.25%
Total Annual Fund Operating Expenses 1.48% 1.12% 1.05%
Fee Limitation and/or Expense Reimbursement4 0.18% 0.15% 0.21%
Total Annual Fund Operating Expenses After Fee Limitation and/or Expense Reimbursement 1.30% 0.97% 0.84%

1 Due to rounding of numbers in calculating a sales charge, you may pay more or less than what is shown above.
2 A CDSC of 1.00% will be assessed on certain redemptions of Class A shares that are purchased without a sales charge.
3 Expenses are based on estimated expenses expected to be incurred for the fiscal year ending September 30, 2017.
4 The 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 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 1.30% for Class A, 0.97% for Advisor Class and 0.84% 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 or the current limits established under the Expense Limitation Agreement. 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.

Portfolio Manager

Ziegler Capital Management, LLC ("ZCM") serves as the investment subadviser of the First Investors Covered Call Strategy Fund.

Wiley D. Angell and Sean C. Hughes, CFA have served as the Fund’s portfolio managers since inception of the Fund in 2016. Mr. Angell, Senior Portfolio Manager of ZCM joined ZCM in May 2015. Prior to that, Mr. Angell served as the President and Chief Investment Officer of Fiduciary Asset Management LLC ("FAMCO") since 2008. Mr. Hughes, Senior Portfolio Manager of ZCM, joined ZCM in May 2015. Prior to that, Mr. Hughes was a Vice President and Portfolio Manager with FAMCO since 2013. Mr. Hughes joined FAMCO in 2005 as a research analyst.

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.  

You can lose money by investing in the Fund. The Fund is intended for investors who:

  • Are seeking long-term capital appreciation;
  • 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:

American Depositary Receipts Risk. ADRs may involve many of the same risks as direct investments in foreign securities, including currency exchange fluctuations, less liquidity and more volatility, governmental regulations, and the potential for political and economic instability.

Call Options Risk. Writing call options to generate income and to potentially hedge against market declines involves risks, such as potential losses if equity markets or an individual equity security do not move as expected and the potential for greater losses than if these techniques had not been used. By writing covered call options, the Fund will give up the opportunity to benefit from potential increases in the value of a Fund asset above the strike price, but will bear the risk of declines in the value of the asset. Writing call options 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 also fluctuate due to the amount of dividends that companies elect to pay.

Exchange-Traded Funds Risk. The risks of investing in securities of 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 operating expenses may be higher and performance may be lower.

High Portfolio Turnover Risk. High portfolio turnover could increase the Fund’s transaction costs and produce taxable distributions to shareholders and possibly have a negative impact on performance.

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, a change in interest rates or a change in investor sentiment. Adverse market events may lead to increased redemptions, which could cause the Fund to experience a loss or difficulty in selling investments 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.

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.

Tax Risk. Writing call options may significantly reduce or eliminate the amount of dividends that generally are taxable to non-corporate shareholders at a lower rate. Covered calls also are subject to federal tax rules that: (1) limit the allowance of certain losses or deductions by the Fund; (2) convert the Fund’s long-term capital gains into higher taxed short-term capital gains or ordinary income; (3) convert the Fund’s ordinary losses or deductions to capital losses, the deductibility of which are more limited; and/or (4) cause the Fund to recognize income or gains without a corresponding receipt of cash.

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