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North Carolina Tax Exempt Fund

Investment Adviser: Foresters Investment Management Company, Inc.

Portfolio Managers:  The Fund is managed primarily by Clark D. Wagner, Chief Investment Officer of FIMCO, who serves as Co-Portfolio Manager and has served as Portfolio Manager or Co-Portfolio Manager of the Fund since 1992, and Patrick Tucci, CFA, who has served as Co-Portfolio Manager of the Fund since 2016.

 


 

Investment Objective and Strategy

A high level of interest income that is exempt from both federal and state income tax for individual residents of the state of North Carolina.

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
Western Carolina NC Univ Student Hsg Project, 5.000%, 10/01/20435.1%
Charlotte NC Wtr & Swr Sys Rev, 5.000%, 07/01/20405.0%
Raleigh NC Comb Enterprise Sys Rev, 5.000%, 03/01/20304.8%
New Hanover Cnty NC Hosp Rev, 5.000%, 10/01/20274.6%
Oak Island NC Enterprise Sys Rev, 6.000%, 06/01/20344.6%
Buncombe Cnty NC Met Dist Sew Sys Rev. Bonds, 5.000%, 07/01/20344.6%
Charlotte NC COP, 5.000%, 06/01/20294.6%
Durham Cnty NC CTFS Partn, 5.000%, 06/01/20274.6%
Lincoln Cnty NC Enterprise Sys, 4.000%, 08/01/20414.6%
Monroe NC COP, 5.500%, 03/01/20344.6%
Total47.1%

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 12/31/2017 Gross/Net Exp as of 12/31/2017
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-0.530.762.414.14N/A05/04/19921.08/1.08
w/ sales charge-4.51-0.591.583.71N/A05/04/19921.08/1.08
Bat NAV-1.230.031.633.56N/A01/12/19951.83/1.83
w/ sales charge-5.09-0.901.283.56N/A01/12/19951.83/1.83
Advisorat NAV-0.271.052.64N/A1.4305/01/20130.82/0.82
Institutionalat NAV-0.221.072.61N/A1.4005/01/20130.79/0.79
Average Annual Total Returns
ClassA
at NAV
1 Yr. %-0.53
3 Yr. %0.76
5 Yr. %2.41
10 Yr. %4.14
Since inception*N/A
Inception date05/04/1992
Gross/Net Exp %1.08/1.08
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-4.51
3 Yr. %-0.59
5 Yr. %1.58
10 Yr. %3.71
Since inception*N/A
Inception date05/04/1992
Gross/Net Exp %1.08/1.08
Average Annual Total Returns
ClassB
at NAV
1 Yr. %-1.23
3 Yr. %0.03
5 Yr. %1.63
10 Yr. %3.56
Since inception*N/A
Inception date01/12/1995
Gross/Net Exp %1.83/1.83
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %-5.09
3 Yr. %-0.90
5 Yr. %1.28
10 Yr. %3.56
Since inception*N/A
Inception date01/12/1995
Gross/Net Exp %1.83/1.83
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %-0.27
3 Yr. %1.05
5 Yr. %2.64
10 Yr. %N/A
Since inception*1.43
Inception date05/01/2013
Gross/Net Exp %0.82/0.82
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %-0.22
3 Yr. %1.07
5 Yr. %2.61
10 Yr. %N/A
Since inception*1.40
Inception date05/01/2013
Gross/Net Exp %0.79/0.79
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-0.070.752.374.10N/A05/04/19921.08/1.08
w/ sales charge-4.10-0.601.543.68N/A05/04/19921.08/1.08
Bat NAV-0.780.001.603.55N/A01/12/19951.83/1.83
w/ sales charge-4.66-0.941.243.55N/A01/12/19951.83/1.83
Advisorat NAV0.201.042.62N/A1.4505/01/20130.82/0.82
Institutionalat NAV0.071.022.55N/A1.4005/01/20130.79/0.79
Average Annual Total Returns
ClassA
at NAV
1 Yr. %-0.07
3 Yr. %0.75
5 Yr. %2.37
10 Yr. %4.10
Since inception*N/A
Inception date05/04/1992
Gross/Net Exp %1.08/1.08
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %-4.10
3 Yr. %-0.60
5 Yr. %1.54
10 Yr. %3.68
Since inception*N/A
Inception date05/04/1992
Gross/Net Exp %1.08/1.08
Average Annual Total Returns
ClassB
at NAV
1 Yr. %-0.78
3 Yr. %0.00
5 Yr. %1.60
10 Yr. %3.55
Since inception*N/A
Inception date01/12/1995
Gross/Net Exp %1.83/1.83
Average Annual Total Returns
ClassB
w/ sales charge
1 Yr. %-4.66
3 Yr. %-0.94
5 Yr. %1.24
10 Yr. %3.55
Since inception*N/A
Inception date01/12/1995
Gross/Net Exp %1.83/1.83
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %0.20
3 Yr. %1.04
5 Yr. %2.62
10 Yr. %N/A
Since inception*1.45
Inception date05/01/2013
Gross/Net Exp %0.82/0.82
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %0.07
3 Yr. %1.02
5 Yr. %2.55
10 Yr. %N/A
Since inception*1.40
Inception date05/01/2013
Gross/Net Exp %0.79/0.79

*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 4%. 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.


Annual Performance before Sales Charge (%)

All distributions reinvested
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018
ICE BofA Merrill Lynch Municipal Securities Master Index -3.95 14.45 2.25 11.19 7.26 -2.89 9.78 3.55 0.44 5.40 -0.51
A Shares -0.67 12.28 0.74 11.08 6.63 -4.30 8.22 2.42 -0.20 3.16 -1.17
Annual Performance before Sales Charge (%)
ICE BofA Merrill Lynch Municipal Securities Master Index
2008 -3.95
2009 14.45
2010 2.25
2011 11.19
2012 7.26
2013 -2.89
2014 9.78
2015 3.55
2016 0.44
2017 5.40
YTD 2018 -0.51
Annual Performance before Sales Charge (%)
A Shares
2008 -0.67
2009 12.28
2010 0.74
2011 11.08
2012 6.63
2013 -4.30
2014 8.22
2015 2.42
2016 -0.20
2017 3.16
YTD 2018 -1.17

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
Western Carolina NC Univ Student Hsg Project, 5.000%, 10/01/20435.1%
Charlotte NC Wtr & Swr Sys Rev, 5.000%, 07/01/20405.0%
Raleigh NC Comb Enterprise Sys Rev, 5.000%, 03/01/20304.8%
New Hanover Cnty NC Hosp Rev, 5.000%, 10/01/20274.6%
Oak Island NC Enterprise Sys Rev, 6.000%, 06/01/20344.6%
Buncombe Cnty NC Met Dist Sew Sys Rev. Bonds, 5.000%, 07/01/20344.6%
Charlotte NC COP, 5.000%, 06/01/20294.6%
Durham Cnty NC CTFS Partn, 5.000%, 06/01/20274.6%
Lincoln Cnty NC Enterprise Sys, 4.000%, 08/01/20414.6%
Monroe NC COP, 5.500%, 03/01/20344.6%
Total47.1%

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 Standard and Poor's Rating Services ("S&P"). For securities rated by Moody's Investors Services, Inc. ("Moody's") the S&P equivalent is shown. Securities not rated by S&P or 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 adviser 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** -1.02
Beta** 0.61
R-Squared** 94.16
Sharpe Ratio -0.07
Standard Deviation 1.99
* 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% 1,2 None None None
Maximum deferred sales charge (load) (as a percentage of the lower of purchase price or redemption price) 1.00%3 4.00% 4 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 0.60% 0.60% 0.60% 0.60%
Distribution and Service (12b-1) Fees 0.30% 1.00% None None
Other Expenses 0.18% 0.23% 0.22% 0.19%
Total Annual Fund Operating Expenses 1.08% 1.83% 0.82% 0.79%

1Effective January 31, 2017, the maximum sales charge on Class A Shares was changed from 5.75% to 4.00%.

2Due to rounding of numbers in calculating a sales charge, you may pay more or less than what is shown above.

3 A contingent deferred sales charge of 1.00% will be assessed on certain redemptions of Class A shares that are purchased without a sales charge, as described further in the “What are the sales charges” section of the prospectus.

4 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, President, Foresters Investment Management Company and Chief Investment Officer, Foresters Financial

Clark D. Wagner

Clark D. Wagner, Chief Investment Officer, Foresters Financial™, serves as Portfolio Manager of the Strategic 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 joined Foresters as Portfolio Manager for municipal bond funds and was appointed Director of Fixed Income in 2001. He served as the Director of Fixed Income from 2001 until his appointment to Chief Investment Officer, Foresters Financial in 2016. Prior to that Mr. Wagner served as Chief Investment Officer of FIMCO from 1992-2001. 

Patrick Tucci

Patrick Tucci

Patrick Tucci, CFA, has served as Co-Portfolio Manager of the Tax Exempt Funds since joining Foresters Investment Management Company, Inc. ("FIMCO") in May 2016. Prior to joining FIMCO, Mr. Tucci was the President and Founder of Harbor Hills Investment Management Co. (2014-2016) and Managing Director at Piper Jaffray & Co. (2010-2013). 

 **The First Investors Connecticut Tax Exempt Fund, Massachusetts Tax Exempt Fund, Michigan Tax Exempt Fund, Minnesota Tax Exempt Fund, North Carolina Tax Exempt Fund, Ohio Tax Exempt Fund, Pennsylvania Tax Exempt Fund and Virginia Tax Exempt Fund, will merge into the First Investors Tax Exempt Opportunities Fund at the close of the New York Stock Exchange on 12/14/18. View the Shareholder notice here

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.

Portfolio Managers:  The Fund is managed primarily by Clark D. Wagner, Chief Investment Officer of FIMCO, who serves as Co-Portfolio Manager and has served as Portfolio Manager or Co-Portfolio Manager of the Fund since 1991, and Patrick Tucci, CFA, who has served as Co-Portfolio Manager of the Fund since 2016.

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

Call Risk.  When interest rates fall, a callable bond issuer may “call” or repay the security before its stated maturity, and the Fund’s income may decline if it has to reinvest the proceeds at lower interest rates.

Concentration Risk.  The Fund’s return will be affected significantly by events that affect North Carolina’s economy as well as legislative, political and judicial changes in the state.  The Fund’s portfolio may be concentrated in a relatively small number of issuers. 

Credit Risk.  An issuer may become unable or unwilling to pay interest or principal when due.  The prices of debt securities are affected by the issuer’s credit quality and, for insured securities, the quality of the insurer.  A municipal issuer’s ability to pay interest and principal may be adversely affected by factors such as economic, political, regulatory, or legal developments; a credit rating downgrade; or other adverse news.  Revenue bonds are subject to the risk that the revenues underpinning the bonds may decline or be insufficient to satisfy the bonds’ obligations.

Derivatives Risk.  Inverse floaters, interest rate swaps, futures, and options on futures involve risks, such as possible default by a counterparty to a swap agreement, potential losses if interest rates do not move as expected, and the potential for greater losses than if these techniques had not been used.  There may not be a liquid secondary market for a futures contract.  Investments in derivatives can increase the volatility of the Fund’s share price and expose it to significant costs.  The Fund may be required to maintain a segregated amount of, or otherwise earmark, cash or liquid securities to cover its derivatives positions, which cannot be sold while the position they are covering is outstanding unless they are replaced with other assets of equal value. Investments in derivatives may cause leverage and magnify potential losses.  Derivatives may be difficult to sell, unwind or value.

Interest Rate Risk.  In general, when interest rates rise, the market values of municipal securities decline, and when interest rates decline, the market values of municipal securities increase.  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.  The Fund typically purchases securities with longer maturities and durations and, therefore, has a high degree of interest rate risk.  The Fund’s yield may decline if interest rates decline. 

Liquidity Risk.  Certain investments, such as municipal securities and derivatives, may be difficult or impossible to sell at a favorable time or price, when, for example, the Fund requires liquidity to make redemptions.  Market developments may cause the Fund’s investments to become less liquid and subject to erratic price movements.

Market Risk.  The prices of municipal securities 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.

Municipal Securities Risk.  Investments in municipal securities may be negatively affected by political, legal or judicial developments and by economic conditions that threaten the ability of municipalities to raise taxes or otherwise collect revenue.

Security Selection Risk.  Securities selected by the portfolio manager may perform differently than the overall market or may not meet expectations.

Tax Risk.  The Fund may invest in securities that pay taxable interest and/or pay interest that is a Tax Preference Item or effect transactions that produce taxable capital gains.  Interest on municipal securities may also become subject to income tax due to an adverse legal change or other events.

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.