|[April 02, 2014]
Barron's Recognizes First Investors Funds Among Top 10 Mutual Fund Families in 2013
NEW YORK --(Business Wire)--
First Investors Funds ranked 9th
out of 64 in the Barron's/Lipper Fund Family Rankings based
on total return in 2013. This is the second time in the past three
years that Barron's recognized First Investors Funds among the
top 10 mutual fund families.
Barron's also included separate one-year rankings for the five
specific asset categories in which funds must have a presence in order
to qualify for the overall rankings. First Investors Funds ranked No.
1 in the Mixed Asset category (equity and fixed-income assets) for
the year ended December. 31, 2013 for its Total Return Fund.
"This is tremendous recognition of our 2013 results for our FIMCO
investment teams," says Derek Burke, President of First Investors
Management Company, Inc. (FIMCO). "Under the leadership of Edwin Miska
and Clark Wagner, FIMCO did an outstanding job of generating competitive
investment returns. This recognition validates our belief in First
Investors Funds as competitive, high-quality investment options for our
About First Investors
First Investors Corporation, a financial services leader, is committed
to helping individual and institutional customers reach their financial
goals through a variety of products and services, including mutual
funds, life insurance, annuities, retirement-related services and
investment management. For more information, please visit firstinvestors.com.
Foresters™ is the parent organization of First Investors. Founded in
1874, the fraternal benefit society has over one million members in
Canada, the United States and the United Kingdom and supports family
well-being through quality products, unique member benefits and
inspiring community activities. For more information, please visit foresters.com.
Barron's Best Mutual Fund Families of 2013 measures one-year
results of 64 fund families for the one-year period ended December 31,
2013. To qualify for the Barron's/Lipper Fund Survey, a group
must have at least three funds in Lipper general U.S. stock category, as
well as one in world equity, which combines global and international
funds. They also require at least one mixed-asset (or "balanced") fund,
which holds stocks and bonds. Fund firms also must have at least two
taxable-bond funds and one tax-exempt offering. Each fund's returns are
adjusted for 12b-1 fees, which are used for marketing and distribution
expenses. The funds usually add these fees back into returns. Barron's/Lipper's
aim is to measure the manager's skill. Fund loads, or sales charges, are
not included in the calculation of returns. The ranking period included
time periods during which some funds' returns were affected by expense
reduction arrangements. Each fund's return is measured against those of
all funds in its Lipper category. That leads to a percentile ranking,
with 100 the highest and 1 the lowest, which is then weighted by asset
size, relative to the fund family's other asses in its general
classification. Finally the score is multiplied by the weighting of its
general classification, as determined by the entire Lipper universe of
funds. The category weightings for the one-year results: general equity
40%, world equity 17%, mixed-asset 18%, taxable bonds 22% and tax exempt
bonds 3%. The category weightings for the five-year results: general
equity 42%, world equity 16%, mixed asset 18%, taxable bonds 21% and tax
exempt bonds 3%. The category weightings for the 10-year results:
general equity 44%, world equity 15%, mixed asset 17%, taxable bonds 20%
and tax-exempt bonds 4%. For Barron's five-and ten-year
categories, as of December 31, 2013, First Investors Funds ranked 29 out
of 55 funds and 38 out of 48 funds, respectively. This article was
published by Barron's February 10, 2014.
Total Return Fund
The Total Return Fund seeks high, long-term total investment return
consistent with moderate investment risk.
The Fund allocates its assets among stocks, bonds and money market
instruments. 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 instruments. The percentages may change due to, among other
things, market fluctuations or reallocation decisions by the Fund's
Once the asset allocation for stocks, bonds and money market instruments
has been set, the Fund uses fundamental research and analysis to
determine which particular investments to purchase or sell.
The Fund's investments in stocks are normally diversified among common
stocks of large-, mid- and small-size companies that offer the potential
for capital growth, current income, or both. In selecting stocks, the
Fund considers, among other things, the issuer's financial strength,
management, earnings growth potential and history (if any) of paying
The Fund's investments in bonds are normally diversified among different
types of bonds and other debt securities, including corporate bonds,
U.S. Government securities and mortgage-backed securities. The Fund
selects bonds by first considering the outlook for the economy and
interest rates, and thereafter, a particular security's characteristics.
The Fund may also invest in U.S. Treasury futures and options on U.S.
Treasury futures to hedge against changes in interest rates.
The Fund may sell a security if it becomes fully valued, its
fundamentals have deteriorated, alternative investments become more
attractive or if it is necessary to rebalance the portfolio.
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
The principal risks of investing in the Total Return Fund are:
Market Risk. Stock prices may decline over short or even extended
periods not only because of company-specific developments, but also due
to an economic downturn, adverse political or regulatory developments, a
change in interest rates or a change in investor sentiment. Similarly,
bond prices fluctuate in value with changes in interest rates, the
economy and the financial conditions of companies that issue them.
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.
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. Securities with longer
maturities are generally more sensitive to interest rate changes.
Credit Risk. This is the risk that an issuer of bonds and other debt
securities will be unable to pay interest or principal when due. The
prices of bonds and other 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 U.S. Government- sponsored
enterprises that are not backed by the full faith and credit of the U.S.
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. Extension risk is the flip side of prepayment
risk. When interest rates rise, the Fund's average maturity may lengthen
due to a drop in prepayments. This will generally increase both the
Fund's sensitivity to rising interest rates and its potential for price
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.
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.
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.
The views herein may change based on market and other conditions.
Nothing stated herein is intended to be advice and should not be
construed as an offer to sell, a solicitation of an offer to buy or a
recommendation of a specific security or investment strategy. Investment
decisions should be made based on an individual's goals, time horizon
and risk tolerance. All investing involves risk, including the risk that
you may lose money. Past performance does not guarantee future results.
Stock markets are volatile and can decline significantly in response to
adverse issues, including political, regulatory, market or economic
developments. Individuals cannot invest directly in an index.
For more information about First Investors mutual funds and variable
products, you may obtain a free prospectus and summary prospectus by
contacting your financial services representative, writing to the
address below, calling (800) 423-4026 or visiting our website at www.firstinvestors.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
ForestersTM is the name and trademark of The Independent
Order of Foresters ("Foresters"), a fraternal benefit society. Its
subsidiary, First Investors Consolidated Corporation ("First
Investors"), is licensed to use this mark. First Investors Corporation
is a subsidiary of First Investors Consolidated Corporation. All
securities products are offered through First Investors Corporation.
First Investors Management Company, Inc. is the investment adviser to
First Investors Funds and an affiliate of First Investors Corporation.
First Investors Mutual Funds are distributed by:
First Investors Corporation
40 Wall Street
New York, NY 10005
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