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Investment Grade Fund

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

Portfolio Manager: Rajeev Sharma

Investment Objective and Strategy

The Fund seeks to generate a maximum level of income consistent with investment primarily in investment grade debt securities. 

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
Anheuser-Busch InBev Finance, Inc., 4.700%, 02/01/20361.5%
Diamond 1 Finance Corp., 4.420%, 06/15/20211.4%
Wells Fargo & Co., 3.450%, 02/13/20231.4%
JPMorgan Chase & Co., 6.400%, 05/15/20381.2%
Digital Realty Trust, LP, 4.750%, 10/01/20251.1%
Verizon Communications, Inc., 4.272%, 01/15/20361.1%
Andeavor Logistics, LP, 5.250%, 01/15/20251.1%
Bayer U.S. Finance II, LLC, 4.375%, 12/15/20281.1%
General Electric Capital Corp., 4.650%, 10/17/20211.1%
Ford Motor Credit Co., LLC, 8.125%, 01/15/20201.1%
Total12.1%

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 11-30-2018 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 NAV-1.691.892.495.35N/A02-19-19911.15/1.04
w/ sales charge-5.600.521.654.92N/A02-19-19911.15/1.04
Bat NAV-2.501.021.564.76N/A01-12-19952.01/1.90
w/ sales charge-6.300.081.214.76N/A01-12-19952.01/1.90
Advisorat NAV-1.252.232.75N/A2.0204-01-20130.82/0.71
Institutionalat NAV-1.182.342.83N/A2.1704-01-20130.74/0.63
Average Annual Total Returns
ClassA
at NAV
1 Yr. %-1.69
3 Yr. %1.89
5 Yr. %2.49
10 Yr. %5.35
Since inception*N/A
Inception date02-19-1991
Gross/Net Exp %1.15/1.04
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-5.60
3 Yr. %0.52
5 Yr. %1.65
10 Yr. %4.92
Since inception*N/A
Inception date02-19-1991
Gross/Net Exp %1.15/1.04
Average Annual Total Returns
ClassB
at NAV
1 Yr. %-2.50
3 Yr. %1.02
5 Yr. %1.56
10 Yr. %4.76
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.01/1.90
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %-6.30
3 Yr. %0.08
5 Yr. %1.21
10 Yr. %4.76
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.01/1.90
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %-1.25
3 Yr. %2.23
5 Yr. %2.75
10 Yr. %N/A
Since inception*2.02
Inception date04-01-2013
Gross/Net Exp %0.82/0.71
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %-1.18
3 Yr. %2.34
5 Yr. %2.83
10 Yr. %N/A
Since inception*2.17
Inception date04-01-2013
Gross/Net Exp %0.74/0.63
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-3.111.431.945.73N/A02-19-19911.15/1.04
w/ sales charge-6.980.061.115.30N/A02-19-19911.15/1.04
Bat NAV-3.980.561.015.15N/A01-12-19952.01/1.90
w/ sales charge-7.73-0.380.665.15N/A01-12-19952.01/1.90
Advisorat NAV-2.731.792.20N/A1.7304-01-20130.82/0.71
Institutionalat NAV-2.671.862.33N/A1.8704-01-20130.74/0.63
Average Annual Total Returns
ClassA
at NAV
1 Yr. %-3.11
3 Yr. %1.43
5 Yr. %1.94
10 Yr. %5.73
Since inception*N/A
Inception date02-19-1991
Gross/Net Exp %1.15/1.04
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-6.98
3 Yr. %0.06
5 Yr. %1.11
10 Yr. %5.30
Since inception*N/A
Inception date02-19-1991
Gross/Net Exp %1.15/1.04
Average Annual Total Returns
ClassB
at NAV
1 Yr. %-3.98
3 Yr. %0.56
5 Yr. %1.01
10 Yr. %5.15
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.01/1.90
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %-7.73
3 Yr. %-0.38
5 Yr. %0.66
10 Yr. %5.15
Since inception*N/A
Inception date01-12-1995
Gross/Net Exp %2.01/1.90
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %-2.73
3 Yr. %1.79
5 Yr. %2.20
10 Yr. %N/A
Since inception*1.73
Inception date04-01-2013
Gross/Net Exp %0.82/0.71
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %-2.67
3 Yr. %1.86
5 Yr. %2.33
10 Yr. %N/A
Since inception*1.87
Inception date04-01-2013
Gross/Net Exp %0.74/0.63

*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
Anheuser-Busch InBev Finance, Inc., 4.700%, 02/01/20361.5%
Diamond 1 Finance Corp., 4.420%, 06/15/20211.4%
Wells Fargo & Co., 3.450%, 02/13/20231.4%
JPMorgan Chase & Co., 6.400%, 05/15/20381.2%
Digital Realty Trust, LP, 4.750%, 10/01/20251.1%
Verizon Communications, Inc., 4.272%, 01/15/20361.1%
Andeavor Logistics, LP, 5.250%, 01/15/20251.1%
Bayer U.S. Finance II, LLC, 4.375%, 12/15/20281.1%
General Electric Capital Corp., 4.650%, 10/17/20211.1%
Ford Motor Credit Co., LLC, 8.125%, 01/15/20201.1%
Total12.1%

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 distribution of the credit quality ratings of the Fund's portfolio holdings as reported by Moody's Investors Services, Inc. ("Moody's"). Securities not rated by Moody's are classified as Unrated for purposes of the Credit Quality table even though they may be rated by another Nationally Recognized Statistical Rating Organization. The investment advisor performs its own credit analysis of securities in the Unrated category 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** -0.83
Beta** 0.82
R-Squared** 97.35
Sharpe Ratio 0.34
Standard Deviation 2.86
* 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 0.66% 0.66% 0.66% 0.66%
Distribution and Service (12b-1) Fees 0.30% 1.00% None None
Other Expenses 0.19% 0.35% 0.16% 0.08%
Total Annual Fund Operating Expenses 1.15% 2.01% 0.82% 0.74%

Fee Waiver4 

0.11% 0.11%
0.11%
0.11%

Total Annual Fund Operating Expenses 
After Fee Waiver

1.04%  1.90%  0.71%  0.63% 

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 seventh year. Class B shares convert to Class A shares after eight years.
4 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 .55% 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.

Rajeev Sharma

Rajeev Sharma

Rajeev Sharma, Director of Fixed Income, serves as Portfolio Manager of the Fund and has served as Portfolio Manager or Co-Portfolio Manager of the Fund since 2009.  The portion of the Fund managed by Muzinich is managed primarily by Clinton Comeaux and Bryan Petermann, Portfolio Managers at Muzinich, since 2018.

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

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 and, in the case of mortgage-backed and asset-backed securities, the credit quality of the underlying loans.  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 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 it to significant additional costs.  Derivatives may be difficult to sell, unwind, or value.

Exchange-Traded Funds Risk.  The risks of investing in an ETF typically reflect the risks of the types of instruments in which the ETF invests. In addition, because ETFs are investment companies, the Fund will bear its proportionate share of the fees and expenses of an investment in an ETF. As a result, the Fund’s expenses may be higher and performance may be lower.

High Yield Securities Risk.  High yield debt securities (commonly known as “junk bonds”) 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.  Securities with longer maturities and durations are generally more sensitive to interest rate changes.

Liquidity RiskCertain 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 tend to be less liquid.

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 and interest rate fluctuations.  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.  When interest rates decline, borrowers tend to refinance their loans and the loans that back mortgage-backed and other asset-backed 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 the Fund’s sensitivity to interest rates and its potential for price declines.

Sector Risk.  The Fund may hold 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 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.