On June 23rd, citizens of Great Britain voted to leave the European Union by a
margin of 51.9% to 48.1%. Immediately after the votes were counted, large moves
in financial markets were experienced around the world. These moves are
particularly large because the exit result was unexpected, based on recent polls
before the vote.
Britain's decision creates uncertainty for the Eurozone, including the possibility of
slower economic growth, new trade and monetary policies that may be needed and
the potential for other countries to also consider leaving the European Union.
Because the Eurozone is a substantial part of the world economy, these events will
certainly impact the U.S. economy on the margin.
Market reaction is typical for this type of event: flight-to-safety into safer sectors
(such as U.S. Treasuries and the U.S. Dollar) which rallied on Friday with riskier
sectors (such as stocks) falling on Friday. As would be expected, movements in
international markets are particularly large relative to U.S. markets. Central Banks,
such as the Federal Reserve, will continue to provide appropriate liquidity to support
markets which should help towards preventing a very adverse outcome.
Nonetheless, markets are likely to remain volatile over the next few days and
perhaps in the weeks ahead.
In this environment, it is important for us to re-emphasize the core investment
philosophy of Foresters Investment Management Company, Inc. (FIMCO)—remain
focused on long-term objectives and not react to short-term market movements. We
will watch the markets carefully over the upcoming weeks and discuss the
implications of Brexit with the managers of our international strategies. In addition,
FIMCO will continue to review its portfolios to see if current volatility creates
investment opportunities, while monitoring exposure to more volatile sectors.
For more information about First Investors mutual funds from Foresters
Financial, you may obtain a free prospectus and summary prospectus by
contacting your Financial Services Representative, calling 800 423 4026 or
visiting our website at foresters.com. You should consider the investment
objectives, risks, charges and expenses carefully before investing. The
prospectus and summary prospectus contain this and other information
about the funds, and should be read carefully before you invest or send
money. An investment in these funds is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC)
or any other government agency.
Neither Foresters Financial Services, Inc. nor its affiliates offer legal or tax advice.
Please consult your tax adviser before making any tax-related retirement decisions.
Foresters Financial™ and Foresters™ are the trade names and trademarks of The
Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road,
Toronto, Canada M3C 1T9 and its subsidiaries, including Foresters Financial Holding
Company, Inc. (FFHC). Foresters Financial Services, Inc. is a registered broker-dealer
and subsidiary of FFHC. Securities, life insurance and annuity products are
offered through Foresters Financial Services, Inc. Insurance products are issued by
Foresters Life Insurance and Annuity Company, New York, or The Independent Order
Foresters Investment Management Company, Inc. (FIMCO) is an affiliate of Foresters
Financial Services, Inc. and the investment adviser to the First Investors Funds.
Foresters Financial Services, Inc. Member of Securities Investor Protection
413995 US (06/16)