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Fund For Income

Investment Adviser: Foresters Investment Management Company, Inc. is the Fund’s investment adviser and Muzinich & Co. Inc. serves as subadviser of the Fund.

Portfolio Managers: Clinton Comeaux and Bryan Petermann

Investment Objective and Strategy

The Fund seeks high current income. The Fund primarily invests in high yield, below investment grade corporate bonds (commonly known as “high yield” or “junk bonds”). These bonds provide a higher level of income than investment grade bonds because they have a higher risk of default. The Fund may also invest in other high yield debt securities, such as assignments of syndicated bank loans. The Fund seeks to reduce the risk of a default by selecting bonds through careful credit research and analysis. The Fund seeks to reduce the impact of a default by diversifying its investments among bonds of many different companies and industries.

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 08-31-2017 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 NAV9.302.755.224.52N/A01-01-19711.24/1.24
w/ sales charge4.941.394.334.08N/A01-01-19711.24/1.24
Bat NAV8.251.954.373.91N/A01-12-19952.07/2.07
w/ sales charge4.251.044.033.91N/A01-12-19952.07/2.07
Advisorat NAV9.563.04N/AN/A4.0704-01-20130.96/0.96
Institutionalat NAV9.793.25N/AN/A4.3504-01-20130.81/0.81
Average Annual Total Returns
ClassA
at NAV
1 Yr. %9.30
3 Yr. %2.75
5 Yr. %5.22
10 Yr. %4.52
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.24/1.24
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %4.94
3 Yr. %1.39
5 Yr. %4.33
10 Yr. %4.08
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.24/1.24
Average Annual Total Returns
ClassB
at NAV
1 Yr. %8.25
3 Yr. %1.95
5 Yr. %4.37
10 Yr. %3.91
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.07/2.07
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %4.25
3 Yr. %1.04
5 Yr. %4.03
10 Yr. %3.91
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.07/2.07
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %9.56
3 Yr. %3.04
5 Yr. %N/A
10 Yr. %N/A
Since inception*4.07
Inception date04-01-2013
Gross/Net Exp %0.96/0.96
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %9.79
3 Yr. %3.25
5 Yr. %N/A
10 Yr. %N/A
Since inception*4.35
Inception date04-01-2013
Gross/Net Exp %0.81/0.81
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 NAV6.623.244.854.86N/A01-01-19711.24/1.24
w/ sales charge2.481.863.984.45N/A01-01-19711.24/1.24
Bat NAV5.592.303.994.25N/A01-12-19952.07/2.07
w/ sales charge1.591.383.664.25N/A01-12-19952.07/2.07
Advisorat NAV6.873.54N/AN/A4.2004-01-20130.96/0.96
Institutionalat NAV7.103.63N/AN/A4.4804-01-20130.81/0.81
Average Annual Total Returns
ClassA
at NAV
1 Yr. %6.62
3 Yr. %3.24
5 Yr. %4.85
10 Yr. %4.86
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.24/1.24
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %2.48
3 Yr. %1.86
5 Yr. %3.98
10 Yr. %4.45
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.24/1.24
Average Annual Total Returns
ClassB
at NAV
1 Yr. %5.59
3 Yr. %2.30
5 Yr. %3.99
10 Yr. %4.25
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.07/2.07
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %1.59
3 Yr. %1.38
5 Yr. %3.66
10 Yr. %4.25
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.07/2.07
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %6.87
3 Yr. %3.54
5 Yr. %N/A
10 Yr. %N/A
Since inception*4.20
Inception date04-01-2013
Gross/Net Exp %0.96/0.96
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %7.10
3 Yr. %3.63
5 Yr. %N/A
10 Yr. %N/A
Since inception*4.48
Inception date04-01-2013
Gross/Net Exp %0.81/0.81

*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
Sprint Communications, Inc., 7.000%, 08/15/20200.9%
Neptune FINCO Corp (CSC Holdings, LLC), 10.125%, 01/15/20230.8%
Rain CII Carbon, LLC, 7.250%, 04/01/20250.8%
Wind Acquisition Finance SA, 7.375%, 04/23/20210.7%
VPI Escrow Corp (Valeant Pharma Intl, Inc), 6.375%, 10/15/20200.7%
Sprint Communications, Inc., 6.000%, 11/15/20220.7%
DISH DBS Corporation, 7.875%, 09/01/20190.7%
Griffon Corporation, 5.250%, 03/01/20220.6%
First Quantum Minerals, Ltd., 7.250%, 05/15/20220.6%
Sinclair Television Group, Inc., 5.375%, 04/01/20210.6%
Total7.1%

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 Class B 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 None
Maximum deferred sales charge (load) (as a percentage of the lower of purchase price or redemption price) 1.00%2 4.00%3 None None
Class A Class B 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 0.72% 0.72% 0.72% 0.72%
Distribution and Service (12b-1) Fees 0.30% 1.00% None None
Other Expenses 0.22% 0.35% 0.24% 0.09%
Total Annual Fund Operating Expenses 1.24% 2.07% 0.96% 0.81%

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 4.00% in the first year, declining to 0% in the the seventh year. Class B shares convert to Class A shares after eight years.

Managers

Muzinich & Co., Inc. (“Muzinich”) serves as the investment subadviser of the Fund For Income and Floating Rate Fund.  Muzinich has discretionary trading authority over all of the Fund’s assets, subject to continuing oversight and supervision by FIMCO and the Fund’s Board of Trustees.  Muzinich is located at 450 Park Avenue, New York, NY 10022.  Muzinich is an institutional asset manager specializing in high yield bond portfolio and other credit-oriented strategies.  As of September 30, 2015, Muzinich managed approximately $23.6 billion in assets worldwide.

The Fund For Income and the Floating Rate Fund are managed by a team of investment professionals who have active roles in managing the Funds.  The following investment professionals manage the Fund For Income and the Floating Rate Fund:  Bryan Petermann, Portfolio Manager, who joined Muzinich in 2010 and prior thereto served as Managing Director, Head of High Yield, at Pinebridge Investments (f/k/a AIG Investments), for the last 5 years of his tenure (2000-2010); and Clinton Comeaux, Portfolio Manager, who joined Muzinich in 2006.  Mr. Comeaux has served as Portfolio Manager of the Fund For Income since 2009 and Mr. Petermann has served as Portfolio Manager of that Fund since 2010.  Mr. Petermann has served as a Portfolio Manager of the Floating Rate Fund since its inception in 2013, and Mr. Comeaux, has served as Portfolio Manager of the Fund since 2014.  Messrs. Peterman and Comeaux also serve as Portfolio Managers of another First Investors Fund.

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.

 

A Word About Risk

The unusually high current yields offered by the Fund For Income reflect the substantial risks associated with investments in high yield bonds. The issuers of bonds pay higher interest rates because they have a greater likelihood of financial difficulty, which could result in their inability to repay the bonds fully when due. Prices of junk bonds are also subject to greater fluctuations.

 

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 an investment that offers a high level of current income,
  • Are willing to accept a high degree of credit risk and market volatility, 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:

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.

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. The Fund’s 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, such as the Fund, 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.  Floating rate securities generally are less sensitive than fixed-rate instruments to interest rate changes, but they could remain sensitive over the short-term to interest rate changes.  The interest rates on floating rate securities adjust periodically and may not correlate to prevailing interest rates during the periods between rate adjustments.  Securities with longer maturities and durations are generally more sensitive to interest rate changes.

Liquidity Risk.  The Fund is susceptible to the risk that certain investments may be difficult or impossible to sell at a favorable time or price.  Market developments may cause the Fund’s investments to become less liquid and subject to erratic price movements. High yield securities and loans tend to be less liquid.  Floating rate loans generally are subject to legal or contractual restrictions on resale and may trade infrequently.  Assignments of bank loans and bonds also may be less liquid at times because of potential delays in the settlement process or restrictions on resale.

Market Risk.  The floating rate loan, high yield loan and bond market can experience sharp price swings due to a variety of factors, including changes in economic forecasts, stock market volatility, large sustained sales of high yield bonds by major investors, high-profile defaults or the market’s psychology.  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.

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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