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Fund For Income

Investment Adviser: Foresters Investment Management Company, Inc. is the Fund’s investment adviser and Muzinich & Co. Inc. serves as subadviser of the Fund.

Portfolio Managers: Clinton Comeaux and Bryan Petermann

Investment Objective and Strategy

The Fund seeks high current income.

Sector Allocation (%)

As of 09-30-2018

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 09-30-2018
Top Holdings (%)
Security% of Total Net Assets
Sprint Communications, Inc., 6.000%, 11/15/20220.9%
DaVita, Inc., 5.125%, 07/15/20240.9%
Intelsat Jackson Holdings SA, 8.000%, 02/15/20240.8%
CSC Holdings, LLC, 10.125%, 01/15/20230.8%
Ardagh Holdings USA, Inc., 7.250%, 05/15/20240.8%
Sprint Corp., 7.875%, 09/15/20230.8%
SunCoke Energy Partners, LP, 7.500%, 06/15/20250.8%
Tribune Media Co., 5.875%, 07/15/20220.7%
Midcontinent Communications & Finance Corp., 6.875%, 08/15/20230.7%
T-Mobile USA, Inc., 6.000%, 04/15/20240.7%
Total7.8%

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.

Returns as of 10-31-2018 09-30-2018
Gross/Net Exp as of 06-01-2018 Gross/Net Exp as of 06-01-2018
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 NAV1.875.873.976.29N/A01-01-19711.23/1.21
w/ sales charge-2.394.433.115.86N/A01-01-19711.23/1.21
Bat NAV1.065.033.165.65N/A01-12-19952.00/1.98
w/ sales charge-2.814.112.825.65N/A01-12-19952.00/1.98
Advisorat NAV2.176.154.22N/A3.8704-01-20130.96/0.94
Institutionalat NAV1.916.314.31N/A4.1104-01-20130.80/0.78
Average Annual Total Returns
ClassA
at NAV
1 Yr. %1.87
3 Yr. %5.87
5 Yr. %3.97
10 Yr. %6.29
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.23/1.21
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-2.39
3 Yr. %4.43
5 Yr. %3.11
10 Yr. %5.86
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.23/1.21
Average Annual Total Returns
ClassB
at NAV
1 Yr. %1.06
3 Yr. %5.03
5 Yr. %3.16
10 Yr. %5.65
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.00/1.98
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %-2.81
3 Yr. %4.11
5 Yr. %2.82
10 Yr. %5.65
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.00/1.98
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %2.17
3 Yr. %6.15
5 Yr. %4.22
10 Yr. %N/A
Since inception*3.87
Inception date04-01-2013
Gross/Net Exp %0.96/0.94
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %1.91
3 Yr. %6.31
5 Yr. %4.31
10 Yr. %N/A
Since inception*4.11
Inception date04-01-2013
Gross/Net Exp %0.80/0.78
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 NAV0.244.443.237.87N/A01-01-19711.23/1.21
w/ sales charge-3.953.052.397.41N/A01-01-19711.23/1.21
Bat NAV-0.953.612.347.27N/A01-12-19952.00/1.98
w/ sales charge-4.752.692.017.27N/A01-12-19952.00/1.98
Advisorat NAV0.114.573.32N/A3.5204-01-20130.96/0.94
Institutionalat NAV0.304.873.66N/A3.8304-01-20130.80/0.78
Average Annual Total Returns
ClassA
at NAV
1 Yr. %0.24
3 Yr. %4.44
5 Yr. %3.23
10 Yr. %7.87
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.23/1.21
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-3.95
3 Yr. %3.05
5 Yr. %2.39
10 Yr. %7.41
Since inception*N/A
Inception date01-01-1971
Gross/Net Exp %1.23/1.21
Average Annual Total Returns
ClassB
at NAV
1 Yr. %-0.95
3 Yr. %3.61
5 Yr. %2.34
10 Yr. %7.27
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.00/1.98
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %-4.75
3 Yr. %2.69
5 Yr. %2.01
10 Yr. %7.27
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.00/1.98
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %0.11
3 Yr. %4.57
5 Yr. %3.32
10 Yr. %N/A
Since inception*3.52
Inception date04-01-2013
Gross/Net Exp %0.96/0.94
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %0.30
3 Yr. %4.87
5 Yr. %3.66
10 Yr. %N/A
Since inception*3.83
Inception date04-01-2013
Gross/Net Exp %0.80/0.78

*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 and expense ratios may be higher or lower than the 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% for Equity Funds, 4% for the Municipal Funds and Bond Funds, except First Investors Limited Duration, High Quality Bond Fund and First Investors Floating Rate Fund, which are 2.5%. 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. Returns may reflect waivers or reimbursements of certain expenses. Absent of these waivers or reimbursements, returns may be lower.

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.

Sector Allocation (%)

As of 09-30-2018

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 09-30-2018
Top Holdings (%)
Security% of Total Net Assets
Sprint Communications, Inc., 6.000%, 11/15/20220.9%
DaVita, Inc., 5.125%, 07/15/20240.9%
Intelsat Jackson Holdings SA, 8.000%, 02/15/20240.8%
CSC Holdings, LLC, 10.125%, 01/15/20230.8%
Ardagh Holdings USA, Inc., 7.250%, 05/15/20240.8%
Sprint Corp., 7.875%, 09/15/20230.8%
SunCoke Energy Partners, LP, 7.500%, 06/15/20250.8%
Tribune Media Co., 5.875%, 07/15/20220.7%
Midcontinent Communications & Finance Corp., 6.875%, 08/15/20230.7%
T-Mobile USA, Inc., 6.000%, 04/15/20240.7%
Total7.8%

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.

Credit Quality (%)

As of 09-30-2018

The Credit Quality table depicts the composite ratings of the Fund's portfolio holdings. The composite ratings reflect an average of the ratings assigned to a security by up to three major credit rating agencies, typically Standard and Poor's Rating Services, Moody's Investors Services, Inc., and Fitch Ratings, Inc. The ratings are converted into their numeric equivalents before being averaged to allow for rounding when necessary. The average is then converted back to the equivalent alphabetical rating reflected in the table. The Fund's subadviser performs its own credit analysis of securities that are unrated and assigns comparable ratings that are used for compliance with the Fund's investment policies.

Risk Measure 3 Year

As of 09/30/2018
3 Year *
Alpha** -0.13
Beta** 0.80
R-Squared** 90.93
Sharpe Ratio 1.32
Standard Deviation 3.65
* Calculations measured against Class A shares
** Measured against the Fund's benchmark
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) 4.00%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 0.72% 0.72% 0.72% 0.72%
Distribution and Service (12b-1) Fees 0.30% 1.00% None None
Other Expenses 0.21% 0.28% 0.24% 0.08%
Total Annual Fund Operating Expenses 1.23% 2.00% 0.96% 0.80%
Fee Waiver4 0.02% 0.02%  0.02%  0.02% 
Total Annual Fund Operating Expenses 

After Fee Waiver

1.21%  1.98%  0.94%  0.78% 

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% in the the seventh year. Class B shares convert to Class A shares after eight years.
The Adviser has contractually agreed to waive the Management Fees of the Fund until at least June 1, 2019 to the extent that the Management Fees exceeds .70% of the Fund’s average daily net assets. The fee waiver may be terminated or amended prior to June 1, 2019, only with the approval of the Fund’s Board of Trustees.

 

Managers

The Fund is managed primarily by a team of investment professionals at Muzinich.  Clinton Comeaux has served as Portfolio Manager of the Fund since 2009 and Bryan Petermann has served as Portfolio Manager of the Fund since 2010.

 

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

The unusually high current yields offered by the Fund For Income reflect the substantial risks associated with investments in high yield bonds. The issuers of bonds pay higher interest rates because they have a greater likelihood of financial difficulty, which could result in their inability to repay the bonds fully when due. Prices of junk bonds are also subject to greater fluctuations.

 

Principal Risks:  You can lose money by investing in the Fund.  There is no guarantee that the Fund will meet its investment objective. 

Here are the principal risks of investing in the Fund:

Credit Risk.  A debt issuer may become unable or unwilling to pay interest or principal when due.  The prices of debt securities are affected by the credit quality of the issuer.

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 the ability to timely honor redemptions.  In the event of a default, it may be difficult to collect on any collateral and a floating rate loan can decline significantly in value. The 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 capital 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, the 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 the Fund, therefore, may not be entitled to rely on the anti-fraud protections of the federal securities laws.

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.  Interest rates across the U.S. economy have recently increased and may continue to increase, thereby heightening the Fund’s exposure to the risks associated with rising interest rates.  Floating rate securities may be 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.  Securities with longer maturities and durations are generally more sensitive to interest rate changes.

Liquidity Risk.  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. High yield securities and loans tend to be less liquid.  Floating rate loans generally are subject to legal or contractual restrictions on resale and may trade infrequently.  Assignments of bank loans and bonds also may be less liquid at times because of potential delays in the settlement process or restrictions on resale.

Market Risk.  The floating rate loan, high yield loan and bond market can experience sharp price swings due to a variety of factors, including changes in economic forecasts, stock market volatility, large sustained sales of high yield bonds by major investors, high-profile defaults or the market’s psychology.  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.

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. 

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