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Limited Duration High Quality Bond Fund

Investment Adviser: Foresters Investment Management Company, Inc.

Portfolio Managers: Rajeev Sharma and Rodwell Chadehumbe

Investment Objective and Strategy

The Fund seeks current income consistent with low volatility of principal. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in investment grade bonds. For purposes of this 80% policy, investment grade bonds also include other investment grade fixed-income securities. The Fund may invest in a variety of different types of investment grade securities, including corporate bonds, securities issued or guaranteed by the U.S. Government or U.S. Government-sponsored enterprises, and mortgage-backed and other asset-backed securities. The Fund may invest in U.S. Treasury futures and options on U.S. Treasury futures to hedge against changes in interest rates. The Fund seeks to maintain an average weighted duration of between two to six years.

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 NAV-0.300.47N/AN/A0.3705-16-20141.23/1.05
w/ sales charge-2.80-0.54N/AN/A-0.4505-16-20141.23/1.05
Advisorat NAV0.010.74N/AN/A0.7305-16-20141.01/0.75
Institutionalat NAV0.140.91N/AN/A0.9005-16-20140.82/0.60
Average Annual Total Returns
ClassA
at NAV
1 Yr. %-0.30
3 Yr. %0.47
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.37
Inception date05-16-2014
Gross/Net Exp %1.23/1.05
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-2.80
3 Yr. %-0.54
5 Yr. %N/A
10 Yr. %N/A
Since inception*-0.45
Inception date05-16-2014
Gross/Net Exp %1.23/1.05
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %0.01
3 Yr. %0.74
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.73
Inception date05-16-2014
Gross/Net Exp %1.01/0.75
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %0.14
3 Yr. %0.91
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.90
Inception date05-16-2014
Gross/Net Exp %0.82/0.60
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 NAV-0.300.47N/AN/A0.3705-16-20141.23/1.05
w/ sales charge-2.80-0.54N/AN/A-0.4505-16-20141.23/1.05
Advisorat NAV0.010.74N/AN/A0.7305-16-20141.01/0.75
Institutionalat NAV0.140.91N/AN/A0.9005-16-20140.82/0.60
Average Annual Total Returns
ClassA
at NAV
1 Yr. %-0.30
3 Yr. %0.47
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.37
Inception date05-16-2014
Gross/Net Exp %1.23/1.05
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-2.80
3 Yr. %-0.54
5 Yr. %N/A
10 Yr. %N/A
Since inception*-0.45
Inception date05-16-2014
Gross/Net Exp %1.23/1.05
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %0.01
3 Yr. %0.74
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.73
Inception date05-16-2014
Gross/Net Exp %1.01/0.75
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %0.14
3 Yr. %0.91
5 Yr. %N/A
10 Yr. %N/A
Since inception*0.90
Inception date05-16-2014
Gross/Net Exp %0.82/0.60

*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
Fannie Mae, 3.500%, 2025-20293.1%
Fannie Mae, 3.000%, 2030-20312.9%
Stadshypotek AB, 1.875%, 10/02/20192.4%
Royal Bank of Canada, 2.200%, 09/23/20192.2%
Toronto-Dominion Bank, 1.950%, 04/02/20202.1%
Morgan Stanley, 5.500%, 07/28/20211.9%
JP Morgan Chase & Co., 4.500%, 01/24/20221.9%
Capital One Financial Corp., 3.050%, 03/09/20221.7%
U.S. Treasury Notes, 1.125%, 07/31/20211.7%
U.S. Treasury Notes, 1.375%, 04/30/20201.6%
Total21.4%

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) 2.50%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 0.66% 0.66% 0.66%
Distribution and Service (12b-1) Fees 0.30% None None
Other Expenses3 0.27% 0.35% 0.16% 
Total Annual Fund Operating Expenses 1.23% 1.01% 0.82%
 Fee Limitation and/or Expense Reimbursement4 0.18% 0.26% 0.22% 
 Total Annual Fund Operating Expenses After Fee Limitation and/or Expense Reimbursement 1.05%  0.75%  0.60%

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 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 1.05% for Class A, 0.75% for Advisor Class and 0.60% 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 were 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.

Rajeev Sharma

Rajeev Sharma

Rajeev Sharma is Director of Fixed Income at Foresters Investment Management Company, Inc. (FIMCO), and serves as Portfolio Manager of the Investment Grade Fund and the Life Series Investment Grade Fund . Mr. Sharma has served as Portfolio Manager or Co-Portfolio Manager of the Fund since 2009 and has also served as a Portfolio Manager of the Limited Duration High Quality Bond Fund and Life Series Limited Duration High Quality Bond Fund since its inception in 2014.  Mr. Sharma has served as Director of Fixed Income since 2016. He joined FIMCO in 2009 and prior to joining FIMCO, Mr. Sharma was a Vice-President and Senior Corporate Credit Analyst at Lazard Asset Management, LLC (2005-2009) and Associate Director, Corporate Ratings at Standard & Poor’s Ratings Services (2002-2005).

Rodwell Chadehumbe

Rodwell Chadehumbe

Rodwell Chadehumbe serves as Portfolio Manager of the Government Fund and he has served as Portfolio Manager or Co-Portfolio Manager of the Fund since 2012.  He also serves as Portfolio Manager of other First Investors Funds.  Mr. Chadehumbe has served as Portfolio Manager of the Limited Duration High Quality Bond Fund since its inception in 2014.  Prior to joining FIMCO in 2012, Mr. Chadehumbe served as Portfolio Manager at Fifth Third Asset Management, Inc. (2008-2012) and at Fifth Third Private Bank (2006-2008).

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 an investment which offers current income and a moderate degree of credit risk,
  • Are seeking a lower degree of interest rate risk,
  • Are willing to accept fluctuations in the value of their investment and the income it produces as a result of changes in interest rates, credit ratings and the economy, 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 and, in the case of mortgage-backed and asset-backed securities, the credit quality of the underlying loans.  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.

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.  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.

Prepayment and Extension Risk.  The Fund is subject to prepayment and extension risk since it invests in mortgage-backed and other asset-backed securities.  When interest rates decline, borrowers tend to refinance their loans.  When this occurs, the loans 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 loans less quickly which, will generally increase both the Fund's sensitivity to interest rates and its potential for price declines.

Sector Risk.  Sector risk is the risk associated with the Fund holding a significant amount of investments in similar businesses, which could be affected by the same economic or market conditions.

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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