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International Opportunities Bond Fund

Investment Adviser: Foresters Investment Management Company, Inc. is the Fund's investment adviser and Brandywine Global Investment Management, LLC serves as subadviser of the Fund.  

Portfolio Managers: David F. Hoffman, John P. McIntyre & Stephen S. Smith

Investment Objective and Strategy

The Fund seeks total return consisting of income and capital appreciation.
Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in bonds. The Fund will normally invest its assets in debt and fixed income securities of issuers located in developed countries outside of the United States. The Fund will primarily invest in sovereign debt and currencies, as well as in investment grade corporate bonds. To a lesser extent, the Fund may also invest in emerging markets and below investment grade securities. The Fund may invest in forward foreign currency contracts in order to hedge its currency exposure in bond positions or to gain currency exposure. The Fund may also invest in interest rate and bond futures to manage interest rate risk and for hedging purposes.

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 NAV2.97-1.17N/AN/A0.8008-17-20121.41/1.41
w/ sales charge-1.16-2.52N/AN/A-0.0508-17-20121.41/1.41
Advisorat NAV3.17-0.90N/AN/A0.1804-01-20131.08/1.08
Institutionalat NAV3.49-0.72N/AN/A0.3904-01-20130.93/0.93
Average Annual Total Returns
ClassA
at NAV
1 Yr. %2.97
3 Yr. %-1.17
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.80
Inception date08-17-2012
Gross/Net Exp %1.41/1.41
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-1.16
3 Yr. %-2.52
5 Yr. %N/A
10 Yr. %N/A
Since inception*-0.05
Inception date08-17-2012
Gross/Net Exp %1.41/1.41
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %3.17
3 Yr. %-0.90
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.18
Inception date04-01-2013
Gross/Net Exp %1.08/1.08
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %3.49
3 Yr. %-0.72
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.39
Inception date04-01-2013
Gross/Net Exp %0.93/0.93
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 NAV5.77-0.14N/AN/A1.4808-17-20121.41/1.41
w/ sales charge1.57-1.50N/AN/A0.6608-17-20121.41/1.41
Advisorat NAV6.190.16N/AN/A1.0004-01-20131.08/1.08
Institutionalat NAV6.380.29N/AN/A1.2004-01-20130.93/0.93
Average Annual Total Returns
ClassA
at NAV
1 Yr. %5.77
3 Yr. %-0.14
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.48
Inception date08-17-2012
Gross/Net Exp %1.41/1.41
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %1.57
3 Yr. %-1.50
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.66
Inception date08-17-2012
Gross/Net Exp %1.41/1.41
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %6.19
3 Yr. %0.16
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.00
Inception date04-01-2013
Gross/Net Exp %1.08/1.08
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %6.38
3 Yr. %0.29
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.20
Inception date04-01-2013
Gross/Net Exp %0.93/0.93

*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%.

Regional Allocation

As of 06-30-2017
Security% of Total Net Assets
United States29.1%
Mexico13.7%
Poland8.0%
Australia7.6%
Malaysia6.5%
United Kingdom4.8%
South Africa4.7%
Brazil4.7%
Portugal4.3%
Indonesia4.2%
Norway1.5%
Spain1.4%
France1.1%
Venezuela0.8%
South Korea0.8%
Netherlands0.8%
Luxembourg0.4%
Turkey0.3%
Total94.5%

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
U.S. Treasury Notes, 1.072%, 04/30/20196.6%
United Mexican States, 7.750%, 11/13/20425.3%
U.S. Treasury Notes, 2.875%, 11/15/20464.8%
United Kingdom Gilt, 1.250%, 07/22/20184.5%
U.S. Treasury Notes, 1.142%, 01/31/20194.2%
Republic of Poland PLN, 3.250%, 07/25/20254.1%
United Mexican States, 8.500%, 11/18/20383.7%
United Mexican States, 8.500%, 05/31/20293.5%
Republic of Indonesia, 8.375%, 03/15/20343.2%
New South Wales Treasury Corp., 5.000%, 08/20/20242.6%
Total42.5%

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 0.75% 0.75% 0.75%
Distribution and Service (12b-1) Fees 0.30% None None
Other Expenses 0.36% 0.33% 0.18%
Total Annual Fund Operating Expenses 1.41% 1.08% 0.93%

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.

Managers

Brandywine Global Investment Management, LLC serves as subadviser of the Fund.

The Fund is managed by Brandywine Global by a team of investment professionals who have active roles in managing the Fund.  Stephen S. Smith, Managing Director and Portfolio Manager, David F. Hoffman, CFA, Managing Director and Portfolio Manager, and John P. McIntyre, CFA, Portfolio Manager/Senior Research Analyst, have served as the Fund’s Portfolio Managers since the Fund’s inception in 2012.

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

Fixed income securities are subject to interest rate, credit, market and liquidity risks. International investments are subject to special risks including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.

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 total return,
  • Want exposure to debt securities of foreign issuers,
  • Are willing to accept a high 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:

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. 

Currency Risk.  The value of foreign currency-denominated investments increases or decreases as exchange rates change.  Currency exchange rates can be volatile, and are affected by factors such as economic conditions, actions by U.S. and foreign governments or central banks, the imposition of currency controls and other political or regulatory conditions. 

Derivatives Risk.  Forward foreign currency contracts and futures involve a number of risks, such as possible default by the counterparty to the transaction, incorrect judgment by the portfolio manager as to certain market movements and the potential of greater losses than if these techniques had not been used by the Fund.  They may also limit any potential gain that might result from an increase in the value of a hedged position.  These investments can also increase the volatility of the Fund’s share price and expose the Fund to significant additional costs.  Derivatives may be difficult to sell, unwind or value.

Emerging Markets Risk.  The risks of investing in foreign securities are heightened when investing in emerging or developing markets.  The economies and political environments of emerging or developing countries tend to be more unstable, resulting in more volatile rates of returns than developed markets and substantially greater risk.

Foreign Securities Risk.  There are special risk factors associated with investing in foreign securities, including the risks of fluctuations in exchange rates, potential political and economic instability, differing accounting and financial reporting standards or inability to obtain reliable financial information regarding a company’s financial condition, less stringent regulation and supervision of foreign securities markets, custodians and securities depositories, and potential capital restrictions.  Some securities issued by foreign governments or their subdivisions, agencies and instrumentalities may not be backed by the full faith and credit of the foreign government and some foreign governments may default on principal and interest payments.  To the extent the Fund significantly invests in securities of a single country or region, it is more likely to be affected by events or conditions of that area.  As a result, it may be more volatile than a more geographically diversified fund.

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 between 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.  This risk is particularly acute in the case of foreign securities that are traded in smaller, less-developed or emerging markets.  High yield securities also tend to be less liquid.

Market Risk.  The prices of the debt securities held by the Fund may decline in response to certain events, such as general economic and market conditions, adverse political or regulatory developments, interest rate fluctuations, and those events directly involving the issuers.  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.

Non-Diversification Risk.  The Fund is non-diversified and, as such, its assets may be invested in a limited number of issuers.  This means that the Fund’s performance may be substantially impacted by the change in value of even a single holding.

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.

Sovereign and Quasi-Sovereign Debt Securities Risk.  The issuer of the sovereign debt or the authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Fund may have limited recourse in the event of a default. During periods of economic uncertainty, the market prices of sovereign debt, and the Fund’s net asset value, may be volatile.

Supranational Risk.  Obligations of supranational organizations are subject to the risk that the governments on whose support the entity depends for its financial backing or repayment may be unable or unwilling to provide that support.  Obligations of a supranational organization that are denominated in foreign currencies will also be subject to the risks associated with investment in foreign currencies.

Valuation Risk.  The sales price the Fund could receive for any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for investments that trade in thin or volatile markets or that are fair valued.  Investors who purchase or redeem Fund shares on days when the Fund is holding fair valued securities may receive fewer shares or lower redemption proceeds than they would have received if the Fund had not fair valued the investment or had used a different valuation methodology.

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