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Strategic Income Fund

Investment Adviser: Foresters Investment Management Company, Inc. is the Fund's investment adviser.  

Portfolio Manager: Clark D. Wagner

Investment Objective and Strategy

The Fund seeks a high level of current income. The Fund is a “fund-of-funds” and seeks to achieve its investment objective by investing primarily in a combination of underlying funds that currently exist or may become available for investment in the future for which Foresters Investment Management Company, Inc. acts as the investment adviser (“Underlying Funds”). The Fund may also invest in unaffiliated funds, which are also considered to be Underlying Funds. The Fund will have exposure to a variety of fixed income securities, floating rate securities, municipal securities, equity securities, and other instruments by investing through a combination of the underlying Funds. The Fund will primarily invest in underlying income Funds. 
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 NAV4.061.31N/AN/A2.1404-03-20131.27/1.27
w/ sales charge-0.09-0.05N/AN/A1.1604-03-20131.27/1.27
Advisorat NAV4.641.76N/AN/A2.5304-03-20130.86/0.86
Average Annual Total Returns
ClassA
at NAV
1 Yr. %4.06
3 Yr. %1.31
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.14
Inception date04-03-2013
Gross/Net Exp %1.27/1.27
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-0.09
3 Yr. %-0.05
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.16
Inception date04-03-2013
Gross/Net Exp %1.27/1.27
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %4.64
3 Yr. %1.76
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.53
Inception date04-03-2013
Gross/Net Exp %0.86/0.86
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 NAV4.061.31N/AN/A2.1404-03-20131.27/1.27
w/ sales charge-0.09-0.05N/AN/A1.1604-03-20131.27/1.27
Advisorat NAV4.641.76N/AN/A2.5304-03-20130.86/0.86
Average Annual Total Returns
ClassA
at NAV
1 Yr. %4.06
3 Yr. %1.31
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.14
Inception date04-03-2013
Gross/Net Exp %1.27/1.27
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-0.09
3 Yr. %-0.05
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.16
Inception date04-03-2013
Gross/Net Exp %1.27/1.27
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %4.64
3 Yr. %1.76
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.53
Inception date04-03-2013
Gross/Net Exp %0.86/0.86

*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.

Top Holdings (%)

As of 06-30-2017
Top Holdings (%)
Security% of Total Net Assets
First Investors Fund For Income - I Shares35.1%
First Investors Investment Grade Fund - I Shares17.5%
First Investors Floating Rate Fund - I Shares14.9%
First Investors Limited Duration High Quality Bond Fund - I Shares14.5%
First Investors Government Fund - I Shares6.9%
First Investors International Opportunities Bond Fund - I Shares5.2%
First Investors Covered Call Strategy Fund - I Shares3.0%
Total97.1%

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%.

Class A Advisor 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
Maximum deferred sales charge (load) (as a percentage of the lower of purchase price or redemption price) 1.00%2 None
Class A Advisor Class
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees 0.05% 0.05%
Distribution and Service (12b-1) Fees 0.30% None
Other Expenses 0.23% 0.12%
Acquired (Underlying) Funds Fees and Expenses
0.69% 0.69%
 Total Annual Fund Operating Expenses 1.27% 0.86%

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.

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.

How to obtain a prospectus

For more complete information on any First Investors fund, you may obtain a free prospectus by downloading 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 of the Fund:  You can lose money by investing in the Fund. The Fund should not be relied upon as a complete investment program. Any investment carries with it some level of risk.

The Strategic Income Fund is most appropriately used to add diversification to an investment portfolio. The Fund is intended for investors who:

  • Are seeking an investment that offers a high level of current income,
  • Want an investment that provides diversification among different types of funds,
  • Are willing to accept a high degree of investment risk and moderate degree of market volatility, and
  • Have a long-term investment horizon and are able to ride out market cycles.

Principal Risks:

Here are the principal risks of investing in the Fund:

Affiliated Persons. The Adviser will have the authority to select and substitute Underlying Funds. The Adviser and Foresters Financial Services, Inc. (“FFS”) are compensated by the Fund and by the Underlying Funds for advisory and/or principal underwriting services provided. The Adviser is subject to conflicts of interest in allocating Fund assets among the various Underlying Funds both because the fees payable to it by the Underlying Funds differ and because the Adviser is also responsible for managing the Underlying Funds. The portfolio manager may also be subject to conflicts of interest in allocating Fund assets among the various Underlying Funds because the Fund’s portfolio manager may manage some of the Underlying Funds and may receive compensation for managing those Underlying Funds. The Trustees and officers of the Underlying Funds may also have conflicting interests in fulfilling their fiduciary duties to both the Fund and the Underlying Funds for which FIMCO and FFS serve as investment adviser and principal underwriter, respectively.

Allocation Risk. The Fund’s ability to achieve its investment objective depends upon the portfolio manager’s skill in determining the Fund’s asset allocation mix and selecting the Underlying Funds. There is the possibility that the portfolio manager’s selection of Underlying Funds and allocation of the Fund’s assets among the Underlying Funds may cause the Fund to perform differently than the overall market and may not meet the portfolio manager’s expectations.

Direct Investments. Since the Fund may invest directly in commercial paper, short-term corporate bonds and notes, floating and variable rate notes, U.S. Treasury securities and short-term obligations of GSEs and in U.S. Treasury futures and options on U.S. Treasury futures, the Fund may be subject to Credit Risk, Derivatives Risk, Interest Rate Risk, Liquidity Risk, Market Risk, Security Selection Risk and Yield Risk. These risks are described below.

Expenses. By investing in the Underlying Funds indirectly through the Fund, shareholders will incur not only a proportionate share of the expenses of the Underlying Funds held by the Fund (including operating costs and investment management fees), but also expenses of the Fund.

Investing in the Underlying Funds. The investments of the Fund are concentrated in the Underlying Funds, and the Fund’s investment performance is directly related to the investment performance of the Underlying Funds it holds. The ability of the Fund to meet its investment objective is directly related to the ability of the Underlying Funds to meet their objectives as well as the allocation among those Underlying Funds by the Adviser.

Investments of the Underlying Funds. Because the Fund invests in the Underlying Funds, the Fund’s shareholders will be affected by the investment policies and practices of the Underlying Funds in direct proportion to the amount of the assets the Fund allocates to those Underlying Funds. See “Principal Risks of the Underlying Funds” below.

Principal Risks of the Underlying Funds:

The target and asset allocation percentages, the selection of Underlying Funds and the investments in the Underlying Funds are subject to change. Such changes may cause the Fund to be subject to additional or different risks than the risks listed below. Here are the principal risks of investing in the Underlying Funds:

 

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 Risk. During periods of falling interest rates, an issuer of a callable bond held by an Underlying Fund may “call” or repay the security before its stated maturity, and the Underlying Fund may have to reinvest the proceeds at lower interest rates, resulting in a decline in the Underlying Fund’s income.

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. An Underlying Fund that writes call options will give up the opportunity to benefit from potential increases in the value of the asset above the strike price, but will bear the risk of declines in the value of the asset. Writing call options may expose an Underlying Fund to significant additional costs. Derivatives may be difficult to sell, unwind or value.

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 or, in the case of insured securities, the quality of the insurer. Credit risk also applies to securities issued or guaranteed by the U.S. Government and by GSEs (such as Federal National Mortgage Association and Federal Home Loan Mortgage Association mortgage-backed securities) that are not backed by the full faith and credit of the U.S. Government. Securities issued by GSEs are supported only by the credit of the issuing entity. For municipal securities, an issuer’s ability to pay interest and principal may be adversely affected by a variety of factors, such as economic, political, regulatory, or legal developments; a credit rating downgrade or other adverse news about 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. Investments in derivatives, such as inverse floaters, interest rate swaps, futures contracts and options on futures contracts, 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 or interest rate movements and the potential of greater losses than if these techniques had not been used. 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 returns and cause exposure to significant additional costs. Derivatives may be difficult to sell, unwind or value.

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

Emerging Markets Risk. The risks of an Underlying Fund that invests 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.

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, an Underlying Fund will bear its proportionate share of the fees and expenses of an investment in an ETF. As a result, the Underlying Fund’s, and thereby 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 an Underlying Fund’s ability to timely honor redemptions. In the event of a default, an Underlying Fund may have difficulty collecting on any collateral and a floating rate loan can decline significantly in value. An Underlying 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 equity 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, an Underlying Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. 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 an Underlying Fund, therefore may not be entitled to rely on the anti-fraud provisions of the federal securities laws. 

 

Foreign Loan Risk. A loan and/or bond issued by a foreign corporation or subsidiary may be subject to risks associated with regulatory, economic and political conditions.

of the issuer’s foreign country and, in the event of default, it may be difficult for an Underlying Fund to pursue its rights against the issuer in that country’s courts.

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 an Underlying Fund invests significantly 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 Portfolio Turnover Risk. High portfolio turnover could increase an Underlying Fund’s transaction costs and produce taxable distributions to shareholders, including the Fund, and possibly have a negative impact on its, and thus the Fund’s performance.

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.

Industry Concentration Risk. An Underlying Fund’s strategy of concentrating its investments in issuers engaged in a single industry means that the Underlying Fund’s performance will be closely tied to the performance of that market segment. The Underlying Fund will be more susceptible to adverse economic, market, political or regulatory occurrences affecting such industry than a less concentrated fund.

Interest Rate Risk. In general, when interest rates rise, the market values of debt, municipal securities, real estate and real estate companies decline, and when interest rates decline, market values of debt, municipal securities, real estate and real estate companies increase. As of the date of this prospectus, interest rates are near historic lows, which may increase an Underlying 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 and an Underlying Fund that typically invests in them will have a higher degree of interest rate risk. The yield of an Underlying Fund may decline if interest rates decline. 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.

Liquidity Risk. An Underlying 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 an Underlying Fund’s investments to become less liquid and subject to erratic price movements. This risk is particularly acute for foreign securities that are traded in smaller, less-developed or emerging markets. High yield securities and loans also tend to be less liquid. In the case of assignments of syndicated bank loans, such loans may be less liquid at times because of potential delays in the settlement process or restrictions on resale. Floating rate loans may be less liquid at times since they are generally subject to legal or contractual restrictions on resale and may trade infrequently. During times of market stress, it may be difficult to sell municipal securities at reasonable prices. In the case of real estate companies and REITs, the risk is heightened for issuers with smaller market capitalizations, limited investments, larger amounts of debt, or higher levels of exposure to sub-prime mortgages.

Market Risk. The prices of an Underlying Fund’s investments may decline or experience volatility over short or even extended periods due to general economic and market conditions, company-specific developments, an economic downturn, adverse political or regulatory developments or a change in interest rates. This risk also applies to the high yield bond market which can experience sharp price swings due to a variety of factors, including stock market volatility, large sustained sales of high yield bonds by major investors, high-profile defaults or the market’s psychology. While dividend-paying stocks are generally considered less volatile than other stocks, there can be no guarantee that an Underlying Fund’s overall portfolio will be less volatile than the general stock market. Adverse market events may lead to increased redemptions, which could cause an Underlying Fund to experience a loss or difficulty in selling securities to meet redemptions. The conversion of money market funds to “government money market funds” could lead to supply issues within the U.S. Treasury securities market as demand increases for U.S. government securities.

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 an Underlying Fund to sell mid- to small-size company stocks at reasonable prices.

Money Market Risk. Although an Underlying Fund that is a money market fund seeks to preserve the value of investments in the Underlying Fund at $1.00 per share, it cannot guarantee it will do so. The sponsor to any such Underlying Fund has no legal obligation to provide financial support to the Underlying Fund and investors in the Underlying Fund should not expect that the sponsor will provide support to the Underlying Fund at any time.

Municipal Securities Risk. An Underlying Fund’s return on investments in municipal securities, will be impacted by events that affect the municipal securities markets, including legislative, political, or judicial developments that are perceived to have a negative effect on municipal securities and economic conditions that threaten the ability of municipalities to raise taxes or obtain the other sources of revenue that back their securities.

Non-Diversification Risk. An Underlying Fund that is considered non-diversified may have its assets invested in a limited number of issuers and its performance may be substantially impacted by the change in value of even a single holding. The share price of such an Underlying Fund can therefore be expected to fluctuate more than the price of a share of a diversified fund. 

Prepayment and Extension Risk. To the extent an Underlying Fund invests in mortgage-backed or other asset-backed securities or in mortgage or hybrid REITs, it is subject to prepayment and extension risk. When interest rates decline, borrowers tend to refinance their loans and mortgages. When this occurs, the loans that back certain securities and mortgages may suffer a higher rate of prepayment and a mortgage or hybrid REIT’s income and share price may decline.  This could cause a decrease in the Underlying Fund’s income and share price. Conversely, when interest rates rise, borrowers tend to repay their loans and mortgages less quickly, which generally will increase a mortgage or hybrid REIT and Underlying Fund’s sensitivity to interest rates and their potential for price declines.

Real Estate Investments Risk. An Underlying Fund that invests in securities of companies engaged in the real estate industry is subject to the risks related to investments in real estate, including declines in the real estate market, decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters.

REIT Risk. In addition to the risks associated with the real estate industry, REITs are subject to additional risks, including those related to adverse governmental actions, declines in property value, and the potential failure to qualify for federal tax-free pass through of net income and gains and exemption from registration as an investment company. REITs are dependent upon specialized management skills and may invest in relatively few properties, a small geographic area or a small number of property types. As a result, investments in REITs may be volatile. REITs are pooled investment vehicles with their own fees and expenses, and an Underlying Fund will indirectly bear a proportionate share of those fees and expenses.

Repurchase Agreement Risk. If the seller in a repurchase agreement transaction defaults on its obligation to repurchase a security at a mutually agreed-upon time and price, the Underlying Fund may suffer delays, incur costs and lose money in exercising its rights under the agreement.

Sector Risk. Sector risk is the risk associated with an Underlying 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 a 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 an Underlying Fund may have limited recourse in the event of a default. During periods of economic uncertainty, the market prices of sovereign debt, and an Underlying 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.

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 an Underlying Fund; (2) convert an Underlying Fund’s long-term capital gains into higher taxed short-term capital gains or ordinary income; (3) convert an Underlying Fund’s ordinary losses or deductions to capital losses, the deductibility of which are more limited; and/or (4) cause an Underlying Fund to recognize income or gains without a corresponding receipt of cash.

Undervalued Securities Risk. An Underlying Fund may seek to invest in stocks that are undervalued and that will rise in value due to anticipated events or changes in investor perceptions. If these developments do not occur the market price of these securities may not rise as expected or may fall.

Valuation Risk. The sales price an Underlying Fund could receive for any particular portfolio investment may differ from the Underlying 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 Underlying Fund shares on days when the Underlying Fund holds fair valued investments may receive fewer shares or lower redemption proceeds than they would have received if the Underlying Fund had not fair valued the investment or had used a different valuation methodology.

Yield Risk. The yields received by an Underlying Fund on its investments will generally decline as interest rates decline.

 

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

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