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Total Return Fund

Investment Advisor: Foresters Investment Management Company, Inc.

Portfolio Managers: Clark D. Wagner and Edwin D. Miska

Investment Objective and Strategy

The Fund seeks high, long-term total investment return consistent with moderate investment risk. The Fund allocates its assets among stocks, bonds and money market investments. While the percentage of assets allocated to each asset class is flexible rather than fixed, the Fund normally invests at least 50% of its net assets in stocks and at least 35% in bonds, cash and money market investments. The percentages may change due to, among other things, market fluctuations or reallocation decisions by the Fund’s portfolio managers. The Fund’s investments in stocks are normally diversified among common stocks of companies that offer the potential for capital growth, current income or both. The Fund’s investments in bonds are normally diversified among different types of bonds and other debt securities.

Asset 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 NAV9.253.487.955.40N/A04-24-19901.19/1.19
w/ sales charge2.941.466.684.78N/A04-24-19901.19/1.19
Bat NAV8.422.687.124.77N/A01-12-19951.96/1.96
w/ sales charge4.431.746.814.77N/A01-12-19951.96/1.96
Advisorat NAV9.603.87N/AN/A6.6904-01-20130.82/0.82
Institutionalat NAV9.683.91N/AN/A6.7804-01-20130.77/0.77
Average Annual Total Returns
ClassA
at NAV
1 Yr. %9.25
3 Yr. %3.48
5 Yr. %7.95
10 Yr. %5.40
Since inception*N/A
Inception date04-24-1990
Gross/Net Exp %1.19/1.19
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %2.94
3 Yr. %1.46
5 Yr. %6.68
10 Yr. %4.78
Since inception*N/A
Inception date04-24-1990
Gross/Net Exp %1.19/1.19
Average Annual Total Returns
ClassB
at NAV
1 Yr. %8.42
3 Yr. %2.68
5 Yr. %7.12
10 Yr. %4.77
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %1.96/1.96
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %4.43
3 Yr. %1.74
5 Yr. %6.81
10 Yr. %4.77
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %1.96/1.96
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %9.60
3 Yr. %3.87
5 Yr. %N/A
10 Yr. %N/A
Since inception*6.69
Inception date04-01-2013
Gross/Net Exp %0.82/0.82
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %9.68
3 Yr. %3.91
5 Yr. %N/A
10 Yr. %N/A
Since inception*6.78
Inception date04-01-2013
Gross/Net Exp %0.77/0.77
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 NAV5.803.057.295.59N/A04-24-19901.19/1.19
w/ sales charge-0.311.036.024.97N/A04-24-19901.19/1.19
Bat NAV5.012.276.475.07N/A01-12-19951.96/1.96
w/ sales charge1.011.336.165.07N/A01-12-19951.96/1.96
Advisorat NAV6.153.44N/AN/A6.5104-01-20130.82/0.82
Institutionalat NAV6.243.48N/AN/A6.6004-01-20130.77/0.77
Average Annual Total Returns
ClassA
at NAV
1 Yr. %5.80
3 Yr. %3.05
5 Yr. %7.29
10 Yr. %5.59
Since inception*N/A
Inception date04-24-1990
Gross/Net Exp %1.19/1.19
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-0.31
3 Yr. %1.03
5 Yr. %6.02
10 Yr. %4.97
Since inception*N/A
Inception date04-24-1990
Gross/Net Exp %1.19/1.19
Average Annual Total Returns
ClassB
at NAV
1 Yr. %5.01
3 Yr. %2.27
5 Yr. %6.47
10 Yr. %5.07
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %1.96/1.96
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %1.01
3 Yr. %1.33
5 Yr. %6.16
10 Yr. %5.07
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %1.96/1.96
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %6.15
3 Yr. %3.44
5 Yr. %N/A
10 Yr. %N/A
Since inception*6.51
Inception date04-01-2013
Gross/Net Exp %0.82/0.82
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %6.24
3 Yr. %3.48
5 Yr. %N/A
10 Yr. %N/A
Since inception*6.60
Inception date04-01-2013
Gross/Net Exp %0.77/0.77

*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.


Asset 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 Equity Holdings

As of 06-30-2017
Top Equity Holdings
Security% of Total Net Assets
Apple, Inc.1.5%
Microsoft Corp.1.4%
JPMorgan Chase & Co.1.3%
Newell Brands, Inc.1.2%
Altria Group, Inc.1.2%
Johnson & Johnson1.2%
Philip Morris International, Inc.1.2%
Thermo Fisher Scientific, Inc.1.2%
Pfizer, Inc.1.0%
3M Company1.0%
Total12.2%

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.

Top Fixed Income Holdings

As of 06-30-2017
Top Fixed Income Holdings
Security% of Total Net Assets
Fannie Mae, 4.000%, 2040-20472.8%
U.S. Treasury Note, 0.375%, 01/15/20271.4%
Fannie Mae, 3.500%, 2028-20460.7%
Morgan Stanley, 5.500%, 07/28/20210.7%
U.S. Treasury Note, 3.125%, 08/15/20440.6%
Federal Home Loan Mortgage Corp., 4.500%, 2040-20440.5%
Fannie Mae, 3.000%, 2027-20310.5%
Home Depot, Inc., 5.875%, 12/16/20360.4%
Bank of America Corp., 4.100%, 07/24/20230.4%
Citigroup, Inc., 6.125%, 11/21/20170.4%
Total8.4%

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 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) 5.75%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 0.70% 0.70% 0.70% 0.70%
Distribution and Service (12b-1) Fees 0.30% 1.00% None None
Other Expenses 0.19% 0.26% 0.12% 0.07%
Total Annual Fund Operating Expenses 1.19% 1.96% 0.82% 0.77%

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% after the sixth year. Class B shares convert to Class A shares after eight years.

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.

Ed Miska

Edwin D. Miska

Edwin D. Miska, Director of Equities at Foresters Investment Management Company, Inc. (“FIMCO”), serves as the Portfolio Manager of the Growth & Income Fund, Life Series Growth & Income Fund, the Balanced Income Fund, Life Series Balanced Income Fund, Total Return Fund, Life Series Total Return Fund and serves as Co-Portfolio Manager of the Opportunity Fund and Life Series Opportunity Fund. Prior to joining FIMCO in 2002, Mr. Miska was a Senior Portfolio Manager and Managing Director of Evergreen Asset Management Corporation.

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 total return,
  • Want an investment that provides diversification among different asset classes,
  • 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:

Allocation Risk.  The Fund may allocate assets to investment classes that underperform other classes.  For example, the Fund may be overweighted in stocks when the stock market is falling and the bond market is rising.

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 securities, the credit quality of the underlying mortgages.  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.  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 or interest rate fluctuations.  Similarly, bond prices fluctuate in value with changes in interest rates, the economy and the financial conditions of companies that issue them.  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.

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.

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

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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