SUPPLEMENT DATED SEPTEMBER 21, 2015

Transcription

1 SUPPLEMENT DATED SEPTEMBER 21, 2015 FIRST INVESTORS INCOME FUNDS AND FIRST INVESTORS EQUITY FUNDS STATEMENTS OF ADDITIONAL INFORMATION DATED JANUARY 31, 2015 FIRST INVESTORS REAL ESTATE FUND STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 6, 2015 FIRST INVESTORS LIFE SERIES FUNDS AND FIRST INVESTORS TAX EXEMPT FUNDS STATEMENTS OF ADDITIONAL INFORMATION DATED MAY 1, 2015 Effective on or about September 21, 2015, the investment adviser, distributor and transfer agent for the First Investors Funds ( Funds ) will change their names as set forth below. The name changes will not affect the management or operations of these entities or of the Funds. Additionally, there will be no change to the names of the Funds and you will be able to reach the Funds through the usual means of communication. The following changes will be effective on or about September 21, 2015: 1. All references to First Investors Management Company, Inc. are replaced with Foresters Investment Management Company, Inc. 2. All references to First Investors Consolidated Corporation and FICC are replaced with Foresters Financial Holding Company, Inc. and FFHC, respectively. 3. All references to First Investors Corporation and FIC are replaced with Foresters Financial Services, Inc. and FFS, respectively. 4. All references to First Investors Life Insurance Company and FIL are replaced with Foresters Life Insurance and Annuity Company and FLIAC, respectively. 5. All references to First Investors Advisory Services, LLC are replaced with Foresters Advisory Services, LLC and FAS, respectively. 6. All references to Administrative Data Management Corp. and ADM are replaced with Foresters Investor Services, Inc. and FIS, respectively. 7. All references to the web address are replaced with 8. All references to the address admcust@firstinvestors.com are replaced with investorservices@foresters.com. * * * * * Please retain this Supplement for future reference. IERLTSAI0915

2 SUPPLEMENT DATED MAY 19, 2015 FIRST INVESTORS EQUITY FUNDS STATEMENT OF ADDITIONAL INFORMATION DATED JANUARY 31, The following is added to the Portfolio Managers section under the heading A. Other Accounts Managed by Portfolio Managers for Fiscal Year Ended September 30, 2014 : Name of Portfolio Manager and Fund(s) Covered by this SAI Other Accounts Managed Number of Other Accounts Total Assets of Other Accounts (in millions) Number of Accounts for which Advisory Fee is Based on Account Performance Total Assets in the Accounts for which Advisory Fee is Based on Account Performance (in millions) FIMCO s Portfolio Managers: Evan Snyder: 1 Growth & Income Fund Other Registered Investment Companies 1 $ $0 Other Pooled Investment Vehicles 0 $0 0 $0 Other Accounts 0 $0 0 $0 1 The table above reflects the information for Evan Snyder as of May 1, The following is added to the Portfolio Managers section under the heading D. Portfolio Manager Fund Ownership for Fiscal Year Ended September 30, 2014 under FIMCO s Portfolio Managers : Name Funds Covered by this SAI Dollar Range of Fund Ownership (dollars) Evan Snyder 1 Growth & Income Fund None 1 The information for Evan Snyder is as of May 1, * * * * * Please retain this Supplement for future reference. EFSAI0515

3 SUPPLEMENT DATED APRIL 2, 2015 FIRST INVESTORS EQUITY FUNDS STATEMENT OF ADDITIONAL INFORMATION DATED JANUARY 31, In Part II, in the Portfolio Holdings Information Policies and Procedures section, the table under the fourth paragraph is deleted in its entirety and replaced with the following: Service Provider Service Holding Access FIMCO Investment Adviser of the Funds. Complete list on a daily basis with no lag time. Investment Sub-Adviser The Bank of New York Mellon Corporation and its foreign subcustodians Tait, Weller & Baker KPMG LLP Lipper, Inc. FactSet Research Systems, Inc. Morningstar Bloomberg Interactive Data Corp Standard & Poor s Securities Evaluations, Inc. Broadridge Investor Communication Solutions, Inc. Investment sub-adviser to one or more Funds Funds custodian and foreign custody manager, and foreign subcustodians. Funds independent public accounting firm. FIMCO s independent public accounting firm. Provide performance and portfolio analytics reporting for the Funds. Provide performance and portfolio analytics reporting for the Funds. Provide performance and portfolio analytics reporting for the Funds. Provide research and portfolio analytics reporting for the Funds. Provide pricing service used for the Funds. Provide back-up pricing service for the Funds. Proxy voting services employed by the Funds. Complete list of holdings under subadviser s management on a daily basis with no lag time. Complete list on a daily basis with no lag time. Complete list on daily basis with no lag time. Complete list on daily basis with no lag time. Complete list on quarterly basis with a 30 day lag time. Complete list on daily basis with no lag time. Complete list on quarterly basis with a 30 day lag time. Complete list on daily basis with no lag time. Complete list on daily basis with no lag time. Complete list on weekly basis with no lag time. Complete list on daily basis with no lag time. 2. In Part II, in the General Information section, the first paragraph is deleted in its entirety and replaced with the following: Custodian. The Bank of New York Mellon Corp. ( BNY Mellon ), One Wall Street, New York, NY 10286, is custodian of the securities and cash of each Fund. BNY Mellon employs foreign subcustodians and foreign securities depositories to provide custody of foreign assets. * * * * * EFSAI0415 Please retain this Supplement for future reference.

4 SUPPLEMENT DATED FEBRUARY 27, 2015 FIRST INVESTORS EQUITY FUNDS STATEMENT OF ADDITIONAL INFORMATION DATED JANUARY 31, 2015 In Part II, in the Determination of Net Asset Value section under the heading All Funds Except Cash Management Fund., the last sentence of the first paragraph is deleted in its entirety. EFSAI0215 * * * * * Please retain this Supplement for future reference.

5 FIRST INVESTORS EQUITY FUNDS Statement of Additional Information Dated January 31, 2015 TICKER SYMBOLS CLASS A CLASS B ADVISOR CLASS INSTITUTIONAL CLASS TOTAL RETURN FITRX FBTRX FITUX FITVX EQUITY INCOME FIUTX FIUBX FIUUX FIUVX GROWTH & INCOME FGINX FGIBX FGIPX FGIQX GLOBAL FIISX FIBGX FIITX FIIUX SELECT GROWTH FICGX FIGBX FICHX FICIX OPPORTUNITY SPECIAL SITUATIONS FIUSX FISSX FIMBX FISBX FIVUX FISTX FIVVX FISUX INTERNATIONAL FIINX FIIOX FIIPX FIIQX 40 Wall Street New York, New York (800) This is a Statement of Additional Information (including the appendices hereto, the SAI ) for Total Return Fund, Equity Income Fund, Growth & Income Fund, Global Fund, Select Growth Fund, Opportunity Fund, Special Situations Fund and International Fund, each of which is a series of First Investors Equity Funds (the Trust ). Each series is referred to herein as a Fund, or collectively the Funds. This SAI is not a prospectus and it should be read in conjunction with each Fund s prospectus dated January 31, The financial statements and reports of an independent registered public accounting firm contained in the annual reports to shareholders are incorporated by reference. The Funds prospectus and SAI and the annual reports to shareholders may be obtained free of charge by contacting the Funds at the address or telephone number noted above or by visiting our website at This SAI is divided into two parts Part I and Part II. Part I contains information that is particular to each Fund that is described in this SAI, while Part II contains information that generally applies to the Funds in the First Investors Family of Funds including each Fund described in this SAI. I-1

6 Statement of Additional Information Dated January 31, 2015 PART I TABLE OF CONTENTS Part I contains information that is particular to each Fund that is described in this SAI. HISTORY AND CLASSIFICATION OF THE FUNDS... 4 INVESTMENT STRATEGIES, POLICIES AND RISKS... 4 PORTFOLIO TURNOVER... 5 MANAGEMENT OF THE FUNDS... 5 INVESTMENT ADVISORY SERVICES AND FEES... 8 PORTFOLIO MANAGERS UNDERWRITER AND DEALERS DISTRIBUTION PLANS ALLOCATION OF PORTFOLIO BROKERAGE ADDITIONAL INFORMATION CONCERNING PURCHASES, REDEMPTIONS, PRICING AND SHAREHOLDER SERVICES TAX INFORMATION BENEFICIAL OWNERSHIP INFORMATION FINANCIAL STATEMENTS APPENDIX A INVESTMENT STRATEGIES USED BY THE FIRST INVESTORS EQUITY FUNDS... A-1 APPENDIX B INVESTMENT POLICIES OF THE FIRST INVESTORS EQUITY FUNDS... B-1 PART II TABLE OF CONTENTS DESCRIPTIONS OF INVESTMENT STRATEGIES AND RISKS... 1 I. DEBT SECURITIES... 1 II. EQUITY SECURITIES III. FOREIGN SECURITIES EXPOSURE IV. RESTRICTED AND ILLIQUID SECURITIES V. WHEN-ISSUED SECURITIES VI. STANDBY COMMITMENTS VII. DERIVATIVES VIII. REPURCHASE AGREEMENTS IX. TEMPORARY BORROWING X. TEMPORARY DEFENSIVE INVESTMENTS XI. CYBERSECURITY RISK PORTFOLIO HOLDINGS INFORMATION POLICIES AND PROCEDURES PORTFOLIO TURNOVER MANAGEMENT OF THE FUNDS RESPONSIBILITIES OF THE BOARD OF THE FUNDS UNDERWRITER AND DEALERS PAYMENTS TO FINANCIAL INTERMEDIARIES POTENTIAL CONFLICTS OF INTERESTS IN DISTRIBUTION ARRANGEMENTS DISTRIBUTION PLANS ADDITIONAL INFORMATION CONCERNING PURCHASES, REDEMPTIONS, PRICING, AND SHAREHOLDER SERVICES DETERMINATION OF NET ASSET VALUE ALLOCATION OF PORTFOLIO BROKERAGE CREDIT RATINGS INFORMATION GENERAL INFORMATION APPENDIX A: TAX INFORMATION... A-1 APPENDIX B: PROXY VOTING GUIDELINES... B-1 I-2

7 APPENDIX C: PROXY VOTING GUIDELINES... C-1 APPENDIX D: PROXY VOTING GUIDELINES... D-1 APPENDIX E: PROXY VOTING GUIDELINES... E-1 APPENDIX F: PROXY VOTING GUIDELINES... F-1 APPENDIX G: PROXY VOTING GUIDELINES... G-1 I-3

8 Statement of Additional Information Part I Dated January 31, 2015 HISTORY AND CLASSIFICATION OF THE FUNDS The Trust is an open-end management investment company commonly referred to as a mutual fund. It was organized as a Delaware statutory trust on August 17, The Trust is authorized to issue an unlimited number of shares of beneficial interest without par value. The Trust consists of eight Funds which are listed on the cover page, each of which is a separate and distinct series of the Trust. Each Fund is diversified and has designated four classes of shares, Class A, Class B, Advisor Class and Institutional Class shares (each, a Class ). Advisor Class and Institutional Class shares were not offered by the Funds until Each share of each Class has an equal beneficial interest in the assets, has identical voting, dividend, liquidation and other rights and is subject to the same terms and conditions, except that expenses allocated to a Class may be borne solely by that Class as determined by the Board of Trustees ( Board or Trustees ), and a Class may have exclusive voting rights with respect to matters affecting only that Class. On January 27, 2006, each Fund, except for the International Fund, which did not commence operations until June 27, 2006, acquired all of the assets of a predecessor fund of the same name through a reorganization. Since each Fund s objective and policies are similar in all material aspects to those of the predecessor fund and since each Fund has the same investment adviser, each Fund, except for the International Fund, adopted the performance and financial history of the predecessor fund. Consequently, certain information included in the Funds prospectus and in this SAI, that is as of a date prior to the date of the Funds prospectus and this SAI, represents information of the predecessor fund. Prior to May 7, 2007, the Select Growth Fund was known as the All-Cap Growth Fund and prior to January 31, 2008, the Opportunity Fund was known as the Mid-Cap Opportunity Fund. On August 10, 2007, the Focused Equity Fund reorganized into the Blue Chip Fund and on December 9, 2011, the Blue Chip Fund reorganized into the Growth & Income Fund. On September 4, 2012, the Value Fund was renamed the Equity Income Fund. The Trust is not required to hold annual shareholder meetings unless required by law. If requested in writing to do so by the holders of at least 10% of a Fund s or Class outstanding shares entitled to vote, as specified in the By-Laws, or when ordered by the Board of Trustees ( Board or Trustees ) or the President, the Secretary will call a special meeting of shareholders for the purpose of taking action upon any matter requiring the vote of the shareholders or upon any other matter as to which a vote is deemed by the Trustees or the President to be necessary or desirable. INVESTMENT STRATEGIES, POLICIES AND RISKS Each Fund s objectives, principal investment strategies, and principal risks are described in the prospectus of the Fund. A summary of each of the investment strategies that are used by each Fund is set forth in Appendix A to Part I of this SAI. Each Fund also has investment policies that limit or restrict its ability to engage in certain investment strategies. These policies are set forth in Appendix B to Part I of this SAI. Appendix A and Appendix B are each part of this SAI. Part II of this SAI provides more detailed descriptions of the investment strategies that may be used by the Funds and the related risks, including strategies that are not considered principal and therefore are not described in the prospectus. I-4

9 PORTFOLIO TURNOVER The following table reflects the portfolio turnover rate with respect to each Fund for the fiscal years ended September 30, 2013 and September 30, Part II of this SAI provides additional information concerning portfolio turnover, including the methodology that is used to compute portfolio turnover rates. Portfolio Turnover Rates Fund Fiscal Year Ended September 30, 2013 Fiscal Year Ended September 30, 2014 Total Return 32% 44% Equity Income 32% 27% Growth & Income 20% 22% Global 92% 154% Select Growth 71% 33% Opportunity 40% 34% Special Situations 110% 55% International 31% 34% MANAGEMENT OF THE FUNDS The First Investors Family of Funds share one common investment adviser, First Investors Management Company, Inc. ( FIMCO or Adviser ), and one common Board of Trustees. Part II of the SAI contains additional information concerning FIMCO, the leadership structure and risk oversight responsibilities of the Board, additional information about each Trustee, any standing committees of the Board, and the Code of Ethics that has been adopted by the Board. Set forth below is information about the Trustees and certain Officers of the Funds. The information concerning each Trustee s and Officer s positions with the Funds and length of service includes positions and length of service with the predecessors of the Funds that were reorganized with and into the Funds on January 27, Thus, for example, if a Trustee was a Trustee or Director of the predecessor fund since January 1, 2006, the information below will state Trustee since 1/1/2006. The address of each Trustee and Officer listed below is c/o First Investors Legal Department, 40 Wall Street, New York, NY Name and Date of Birth Susan E. Artmann 4/13/54 Mary J. Barneby 7/28/52 Position(s) held with Funds covered by this SAI and Length of Service* Trustee since 11/1/2012 Trustee since 11/1/2012 Trustees and Officers INDEPENDENT TRUSTEES Principal Occupation(s) During Past 5 Years Retired. Executive Vice President and Chief Financial Officer of HSBC Insurance North America ( ); Executive Vice President and President ( ) and Chief Financial Officer ( ) of HSBC Taxpayer Financial Services. Chief Executive Officer, Girl Scouts of Connecticut, since October 2012; Executive Director of UBS Financial Services, Inc. and Head of Stamford Private Wealth Office ( ). Number of Portfolios in Fund Complex Overseen** Other Trusteeships/ Directorships Held During the Past 5 Years 43 None 43 None I-5

10 Charles R. Barton, III 3/1/65 Arthur M. Scutro, Jr. 11/9/41 Mark R. Ward 11/3/52 Trustee since 1/1/2006 Trustee since 1/1/2006 and Chairman since 1/1/2013 Trustee since 1/1/2010 Chief Operating Officer since 2007, Board Director since 1989 (currently, Ex-Officio) and Trustee since 1994 of The Barton Group/Barton Mines Corporation (mining and industrial abrasives distribution); and President of Noe Pierson Corporation (land holding and management service provider) since None None/Retired. 43 None Self employed, Consultant since 2008; Senior Partner, Ernst & Young, LLP, Leader, Mid- Atlantic Asset Management Practice ( ). 43 None * Each Trustee serves for an indefinite term until his or her successor is elected and duly qualified, or until his or her death, resignation or removal as provided in the Trust s organizational documents or by statute. ** As of the date of this SAI, the First Investors Family of Funds consisted of 4 registered investment companies with 43 series. Name and Date of Birth William M. Lipkus 10/30/64 OFFICERS WHO ARE NOT TRUSTEES Position(s) held with Funds covered by this Principal Occupation(s) During Past 5 Years SAI and Length of Service* President since June 2014 President, First Investors Family of Funds, since June 2014; Chief Executive Officer, President and Director since 2012, Chief Administrative Officer , Treasurer and Chief Financial Officer of FICC; Chairman since 2012, Director since 2007, Chief Administrative Officer , and Chief Financial Officer of FIMCO; Chairman since 2012, Director since 2011, Chief Administrative Officer , Treasurer and Chief Financial Officer of FIC; Chairman since 2012, Director since 2007, Chief Administrative Officer , Treasurer and Chief Financial Officer of Administrative Data Management Corp.; Chairman and Director since 2012, Chief Administrative Officer , Vice President , Treasurer and Chief Financial Officer of FIL; and Chairman and Member of Board of Managers since 2012, Chief Financial Officer of First Investors Advisory Services, LLC. Joseph I. Benedek 8/2/57 Treasurer since 1988 Treasurer and Principal Accounting Officer of First Investors Management Company, Inc. Mary Carty 11/11/50 Secretary since 2010 General Counsel of First Investors Management Company, Inc. and various affiliated companies since December 2012 and Assistant Counsel of First Investors Management Company, Inc. ( ). Special Counsel and Associate at Willkie Farr & Gallagher LLP ( ). I-6

11 Name and Date of Birth Marc Milgram 6/9/57 OFFICERS WHO ARE NOT TRUSTEES Position(s) held with Funds covered by this SAI and Length of Service* Chief Compliance Officer since 2010 * Officers are appointed by the Board for one-year terms. Trustee Principal Occupation(s) During Past 5 Years Chief Compliance Officer of First Investors Management Company, Inc. since 2010; Investment Compliance Manager of First Investors Management Company, Inc. ( ); First Investors Federal Savings Bank, President ( ), Treasurer ( ) and Director ( ); First Investors Corporation, Vice President ( ); and Administrative Data Management Corp., Vice President ( ). Trustee Ownership of First Investors Funds As of December 31, 2014 INDEPENDENT TRUSTEES Funds covered by this SAI Dollar Range of Ownership of Funds covered by this SAI Aggregate Dollar Range of Equity Securities all Registered Investment Companies overseen by Trustee in First Investors Family of Funds Susan E. Artmann None None None Mary J. Barneby None None None Charles R. Barton, III Growth & Income Fund $10,001-$50,000 Select Growth Fund $10,001-$50,000 Global Fund $10,001-$50,000 Opportunity Fund $10,001-$50,000 over $100,000 Special Situation Fund $10,001-$50,000 International Fund $10,001-$50,000 Arthur M. Scutro, Jr. Total Return Fund $10,001-$50,000 Growth & Income Fund $10,001-$50,000 Opportunity Fund $10,001-$50,000 over $100,000 Select Growth Fund $10,001-$50,000 Mark R. Ward Total Return Fund $50,001- $100,000 Select Growth Fund $10,001-$50,000 over $100,000 Special Situations Fund $10,001-$50,000 As of the date of this SAI, the First Investors Family of Funds consists of 4 registered investment companies with 43 series. As of January 5, 2015, the Trustees and Officers, as a group, owned less than 1% of Class A, Class B, Advisor Class or Institutional Class shares of each Fund that offers such shares. I-7

12 Compensation of Trustees The following table lists compensation paid to the Trustees of the Trust for the fiscal year ended September 30, Trustee Aggregate Compensation From Equity Funds Total Compensation from First Investors Family of Funds Paid to Trustees Susan E. Artmann $50,758 $95,500 Mary J. Barneby $50,758 $95,500 Charles R. Barton, III $50,758 $95,500 Arthur M. Scutro, Jr. $58,598 $110,250 Mark R. Ward $52,353 $98,500 As of the date of this SAI, the First Investors Family of Funds consists of 4 registered investment companies with 43 series. No pension or retirement benefits are proposed to be paid under any existing plan to any Trustee by any Fund, any of its subsidiaries or any other investment companies in the First Investors Family of Funds. INVESTMENT ADVISORY SERVICES AND FEES Part II of this SAI describes the terms of the Trust s Advisory Agreement with FIMCO and the respective responsibilities of the Funds and FIMCO under the Agreement. It also describes the Subadvisory Agreement of any Fund which has a subadviser. Set forth below are the methods for calculating the current advisory fee paid by each Fund, the fee schedule for each Fund in tabular form, and the actual fees paid and fees waived for each Fund for the past three fiscal years. The fee is accrued daily by each Fund covered by this SAI, based on the Fund s net assets, and is allocated daily to each Fund s Class A, Class B, Advisor Class and Institutional Class shares based on the net assets of that class of shares in relation to the net assets of the Fund as a whole. The fees waived reflect fee schedules that were in effect during the relevant periods shown. Information about subadvisory fees is also included for any Fund which has a subadviser. Under the Advisory Agreement, each Fund is obligated to pay the Adviser an annual fee, paid monthly, according to the following schedules: Equity Income, Growth & Income, Select Growth and Opportunity Funds: Average Daily Net Assets Annual Rate Up to $300 million % In excess of $300 million up to $500 million % In excess of $500 million up to $750 million % In excess of $750 million up to $1.25 billion % In excess of $1.25 billion up to $1.75 billion % In excess of $1.75 billion up to $2.25 billion % Over $2.25 billion % I-8

13 Total Return Fund: Average Daily Net Assets Annual Rate Up to $300 million % In excess of $300 million up to $500 million % In excess of $500 million up to $1 billion % In excess of $1 billion up to $2 billion % In excess of $2 billion up to $3 billion % Over $3 billion % Special Situations Fund: Average Daily Net Assets Annual Rate Up to $200 million % In excess of $200 million up to $500 million % In excess of $500 million up to $750 million % In excess of $750 million up to $1 billion % In excess of $1 billion up to $1.5 billion % Over $1.5 billion % International Fund: Average Daily Net Assets Annual Rate Up to $300 million % In excess of $300 million up to $600 million % In excess of $600 million up to $1 billion % In excess of $1 billion up to $1.5 billion % Over $1.5 billion % Global Fund: Average Daily Net Assets Annual Rate Up to $600 million % In excess of $600 million up to $1 billion % In excess of $1 billion up to $1.5 billion % Over $1.5 billion % I-9

14 The following tables reflect the advisory fees paid and advisory fees waived with respect to each Fund for the fiscal years ended September 30, 2012, 2013 and Fiscal Year Ended 9/30/12 Fund Advisory Fees Paid Advisory Fees Waived Total Return $3,509,194 $0 Equity Income $2,809,485 $0 Growth & Income $7,728,859 $0 Global* $2,690,342 $52,709 Select Growth $1,905,410 $0 Opportunity $3,771,128 $0 Special Situations $3,054,666 $329,689 International $1,489,304 $0 * On May 18, 2012, the Global Fund reduced its advisory fee rate from 0.98% to 0.95%. Fiscal Year Ended 9/30/13 Fund Advisory Fees Paid Advisory Fees Waived Total Return $4,408,735 $0 Equity Income $3,261,377 $0 Growth & Income $9,639,968 $0 Global $2,873,051 $58,990 Select Growth $2,197,692 $0 Opportunity $4,629,471 $0 Special Situations $3,329,854 $311,343 International $1,916,640 $0 Fiscal Year Ended 9/30/14 Fund Advisory Fees Paid Advisory Fees Waived Total Return $5,231,792 $0 Equity Income $3,963,963 $0 Growth & Income $11,841,703 $0 Global $3,563,497 $187,088 Select Growth $2,700,907 $0 Opportunity $5,946,486 $0 Special Situations* $3,860,388 $204,291 International $2,289,999 $0 * On June 1, 2014, the Special Situations Fund reduced its advisory fee rate from 1.00% to 0.90%. I-10

15 For each Fund that is subadvised by a subadviser, the Adviser is responsible for paying the subadviser a fee, in accordance with a schedule that is described below, based on the amount of the Fund s daily net assets that is managed by the subadviser. Cash that a subadviser does not invest is generally invested by the Adviser. The Adviser may determine, in its discretion, not to invest the cash balance it manages for any Fund depending on market and economic conditions. For purposes of calculating the fee to be paid to each subadviser (described below), any daily cash balance that is invested by the Adviser is excluded from each of the Fund s daily net assets. I. Pursuant to a Subadvisory Agreement, the Adviser has undertaken to pay Wellington Management Company LLP ( Wellington Management ), a wholly owned subsidiary of Wellington Management Group LLP, an annual subadvisory fee, paid monthly, according to the following schedule (excluding the portion of the Fund s assets that is not delegated by the Adviser to Wellington Management for management, which is currently the cash balance): Global Fund Average Daily Net Assets Annual Rate Up to $50 million % In excess of $50 million up to $150 million % In excess of $150 million up to $500 million % Over $500 million % II. Pursuant to a Subadvisory Agreement, the Adviser has undertaken to pay Vontobel Asset Management, Inc. ( Vontobel ) an annual subadvisory fee, paid monthly, according to the following schedule: International Fund 1. The daily net assets of the International Fund shall be aggregated with the net assets (if any) of the First Investors Life Series International Fund, a series of First Investors Life Series Funds, that are being managed by Vontobel (excluding the portion of each Fund s assets that is not delegated by the Adviser to Vontobel for management, which is currently the cash balance). 2. An aggregate fee shall then be computed on the sum as if the two Funds were combined using the following schedule: a. 0.50% of the first $100 million; b. 0.35% of the next $100 million; c. 0.30% of the next $800 million; and d. 0.25% on the balance over $1 billion. 3. The fee payable under the Subadvisory Agreement shall then be computed by multiplying the aggregate fee by the ratio of net assets of the International Fund to the sum of the net assets of both Funds that are being managed by Vontobel. The balance of the aggregate fee will be paid pursuant to a separate subadvisory agreement among the Adviser, Vontobel and First Investors Life Series Funds. III. Pursuant to a Subadvisory Agreement, the Adviser has undertaken to pay Smith Asset Management Group, L.P. ( Smith ) an annual subadvisory fee, paid monthly, according to the following schedule: I-11

16 Select Growth Fund 1. The daily net assets of the Select Growth Fund shall be aggregated with the net assets (if any) of the First Investors Life Series Select Growth Fund, a series of First Investors Life Series Funds, that are being managed by Smith (excluding the portion of each Fund s assets that is not delegated by the Adviser to Smith for management, which is currently the cash balance). 2. An aggregate fee shall then be computed on the sum as if the two Funds were combined using the following schedule: a. 0.40% of the first $50 million; b. 0.30% of the next $200 million and c. 0.25% on all balances over $250 million. 3. The fee payable under the Subadvisory Agreement shall then be computed by multiplying the aggregate fee by the ratio of net assets of the Select Growth Fund to the sum of the net assets of both Funds that are being managed by Smith. The balance of the aggregate fee will be paid pursuant to a separate subadvisory agreement among the Adviser, Smith and First Investors Life Series Funds. The following table reflects subadvisory fees paid by the Adviser with respect to each Fund listed for the fiscal years ended September 30, 2012, 2013 and Fund Fiscal Year Ended September 30, 2012 Subadvisory Fees Paid Fiscal Year Ended September 30, 2013 Fiscal Year Ended September 30, 2014 Select Growth $788,604 $866,691 $1,056,533 Global $742,746 $804,067 $960,088 Special Situations* $976,681 $1,046,486 N/A International $592,367 $712,377 $834,152 * Prior to September 23, 2013, the Special Situations Fund was managed by a subadviser. I-12

17 PORTFOLIO MANAGERS The following provides certain information for the portfolio managers of the Adviser who have responsibility for the daily management of some of the Funds described below. In addition, Wellington Management, Vontobel and Smith have provided information below regarding their portfolio managers. A. Other Accounts Managed by Portfolio Managers for Fiscal Year Ended September 30, 2014 Name of Portfolio Manager and Fund(s) Covered by this SAI FIMCO s Portfolio Managers: Edwin D. Miska: Total Return Growth & Income Opportunity Clark Wagner: Total Return Steven S. Hill: Opportunity Special Situations Arun Sharma: Special Situations Sean Reidy: Equity Income Other Accounts Managed Number of Other Accounts Total Assets of Other Accounts (in millions) Number of Accounts which Advisory Fee is Based on Account Performance Total Assets in the Accounts which Advisory Fee is Based on Account Performance (in millions) Other Registered Investment Companies 3 $ $0 Other Pooled Investment Vehicles 1 $ $0 Other Accounts 1 $ $0 Other Registered Investment Companies 23 $2, $0 Other Pooled Investment Vehicles 1 $ $0 Other Accounts 2 $ $0 Other Registered Investment Companies 2 $ $0 Other Pooled Investment Vehicles 0 $0 0 $0 Other Accounts 0 $0 0 $0 Other Registered Investment Companies 1 $ $0 Other Pooled Investment Vehicles 0 $0 0 $0 Other Accounts 0 $0 0 $0 Other Registered Investment Companies 1 $ $0 Other Pooled Investment Vehicles 0 $0 0 $0 Other Accounts 0 $0 0 $0 I-13

18 Wellington Management s Portfolio Managers: Nicolas M. Choumenkovitch: Other Registered Investment Companies 9 $4, $0 Global Other Pooled Investment Vehicles 11 $1, $58.5 Other Accounts 26 $9, $3,991.0 Tara Connolly Stilwell: Other Registered Investment Companies 9 $4, $0 Global Other Pooled Investment Vehicles 8 $1, $0 Other Accounts 24 $7, $1,147.7 Vontobel s Portfolio Manager: Rajiv Jain: International Smith s Portfolio Managers: Stephen S. Smith: Select Growth John D. Brim: Select Growth Eivind Olsen: Select Growth Other Registered Investment Companies 9 $12,271 0 $0 Other Pooled Investment Vehicles 26 $19,447 0 $0 Other Accounts 44 $13,373 2 $246 Other Registered Investment Companies 4 $ $0.0 Other Pooled Investment Vehicles 1 $3.1 1 $4.0 Other Accounts 81 $2, $14.3 Other Registered Investment Companies 4 $ $0.0 Other Pooled Investment Vehicles 1 $3.1 1 $4.0 Other Accounts 81 $2, $14.3 Other Registered Investment Companies 4 $ $0.0 Other Pooled Investment Vehicles 1 $3.1 1 $4.0 Other Accounts 81 $2, $14.3 B. Potential Conflicts of Interest in Other Managed Accounts for Fiscal Year Ended September 30, 2014 FIMCO s Portfolio Managers: Each of FIMCO s portfolio managers manages at least one other First Investors mutual fund in addition to the Fund or Funds that are covered by this SAI. In many cases, these other First Investors Funds are managed similarly to the Funds that are shown in this SAI, except to the extent required by differences in cash flow, investment policy, or law. Mr. Miska participates in the day-to-day management of First Investors profit sharing plan and FIMCO s own investment account. Mr. Wagner also participates in the day-to-day management of the First Investors profit sharing plan, the general account of our life insurance company affiliate and FIMCO s own investment account. Portions of these non-fund accounts may be managed similarly to one or more of the Funds covered by this SAI. The side-by-side management of two or more First Investors Funds or non-fund accounts presents a variety of potential conflicts of interest. For example, the portfolio manager may purchase or sell securities for one portfolio and not another portfolio, and the performance of securities purchased for one portfolio may vary from the performance of securities purchased for other portfolios. A FIMCO portfolio manager may also want to buy the same security for two Funds that he manages or for a Fund and a non-fund account. In some cases, there may not be sufficient amounts of the security available (for example, in the case of an initial public offering ( IPO ) or new I-14

19 bond offering) to cover the needs of all of the accounts managed by a FIMCO portfolio manager or the buying activity of the accounts could affect the market value of the security. Similar potential conflicts could arise when two or more Funds or non-fund accounts managed by the same portfolio manager or managers want to sell the same security at the same time. Finally, a portfolio manager may want to sell a security that is held by a Fund or non-fund account and at the same time buy the same security for another one of his accounts. This could occur even if the accounts were managed similarly because, for example, the two accounts have different cash flows. FIMCO has adopted a variety of policies and procedures to address these potential conflicts of interest and to ensure that each Fund and non-fund account is treated fairly. For example, FIMCO has adopted policies for bunching and allocating trades when two or more Funds or non-fund accounts wish to buy or sell the same security at the same time. These policies prescribe the procedures for placing orders in such circumstances, determining allocations in the event that such orders cannot be fully executed, and determining the price to be paid or received by each account in the event that orders are executed in stages. FIMCO has also adopted special policies that address investments in IPOs and new bond offerings, the side-by-side management of Funds and the non-fund accounts, and internal crosses between FIMCO-managed accounts that are effected under Rule 17a-7 of the Investment Company Act. FIMCO s Investment Compliance Department also conducts reviews of trading activity to monitor for compliance with these policies and procedures. FIMCO has also adopted a Code of Ethics restricting the personal securities trading and conduct of portfolio managers of the Funds. Wellington Management s Portfolio Managers: Individual investment professionals at Wellington Management manage multiple accounts for multiple clients. These accounts may include mutual funds, separate accounts (assets managed on behalf of institutions, such as pension funds, insurance companies, foundations, or separately managed account programs sponsored by financial intermediaries), bank common trust accounts, and hedge funds. The Global Fund s managers listed in the prospectus who are primarily responsible for the day-to-day management of the Global Fund ( Investment Professionals ) generally manage accounts in several different investment styles. These accounts may have investment objectives, strategies, time horizons, tax considerations and risk profiles that differ from those of the Global Fund. The Investment Professionals make investment decisions for each account, including the Global Fund, based on the investment objectives, policies, practices, benchmarks, cash flows, tax and other relevant investment considerations applicable to that account. Consequently, the Investment Professionals may purchase or sell securities, including IPOs, for one account and not another account, and the performance of securities purchased for one account may vary from the performance of securities purchased for other accounts. Alternatively, these accounts may be managed in a similar fashion to the Global Fund and thus the accounts may have similar, and in some cases nearly identical, objectives, strategies and/or holdings to that of the Global Fund. An Investment Professional or other investment professionals at Wellington Management may place transactions on behalf of other accounts that are directly or indirectly contrary to investment decisions made on behalf of the Global Fund, or make investment decisions that are similar to those made for the Global Fund, both of which have the potential to adversely impact the Global Fund depending on market conditions. For example, an Investment Professional may purchase a security in one account while appropriately selling that same security in another account. Similarly, an Investment Professional may purchase the same security for the Global Fund and one or more other accounts at or about the same time. In those instances the other accounts will have access to their respective holdings prior to the public disclosure of the Global Fund s holdings. In addition, some of these accounts have fee structures, including performance fees, which are or have the potential to be higher, in some cases significantly higher, than the fees Wellington Management receives for managing the Global Fund. Ms. Stilwell and Mr. Choumenkovitch also manage accounts which pay performance allocations to Wellington Management or its affiliates. Because incentive payments paid by Wellington Management to the Investment Professionals are tied to revenues earned by Wellington Management and, where noted, to the performance achieved by the manager in each account, the incentives associated with any given account may be significantly higher or lower than those associated with other accounts managed by a given Investment Professional. Finally, the Investment Professionals may hold shares or investments in the other pooled investment vehicles and/or other accounts identified above. Wellington Management s goal is to meet its fiduciary obligation to treat all clients fairly and provide high quality investment services to all of its clients. Wellington Management has adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, which it believes address the conflicts associated with managing multiple accounts for multiple clients. In addition, Wellington Management monitors a variety of areas, including compliance with primary account guidelines, the allocation of IPOs, and compliance with the firm s Code of Ethics, and places additional investment restrictions on investment professionals who manage hedge funds and certain other accounts. Furthermore, senior investment and business personnel at Wellington Management periodically review the performance of Wellington Management s investment professionals. Although I-15

20 Wellington Management does not track the time an investment professional spends on a single account, Wellington Management does periodically assess whether an investment professional has adequate time and resources to effectively manage the investment professional s various client mandates. Vontobel s Portfolio Manager: Vontobel s portfolio manager is responsible for the day-to-day management of one other First Investors mutual fund other than the Fund covered by this SAI, other mutual funds, multiple pooled vehicles and institutional accounts. The portfolio manager has a team of analysts that conduct screening of companies that must meet Vontobel s strict investment criteria. This screening process yields an investment universe from which each portfolio that Vontobel manages is built. The side-by-side management of First Investors Funds and other accounts presents a variety of potential conflicts of interest. For example, the portfolio manager may purchase or sell securities for one portfolio and not another portfolio. The performance of securities within one portfolio may differ from the performance of securities in another portfolio. In some cases, there may not be a sufficient amount of securities available to fulfill the complete allocation of said securities amongst all client accounts. It is the goal of Vontobel, as a fiduciary, to treat all clients in a fair and equitable manner. Vontobel has designed policies and procedures, including policies and procedures for brokerage and trade allocation. Vontobel believes that the policies and procedures it has implemented are reasonably designed to detect and remedy the types of conflicts associated with managing multiple portfolios. Smith s Portfolio Managers: Smith s portfolio managers are responsible for the day-to-day management of one other First Investors mutual fund other than the Fund covered by this SAI, other mutual funds, multiple pooled vehicles and multiple institutional accounts. Potential conflicts of interest may be presented in connection with the portfolio manager s management of the Fund s investments, on one hand, and the investments of other accounts, on the other, such as conflicts of interest related to the aggregation of trades, the allocation of investment opportunities, contrary client positions and employee securities trading. Smith has established written policies and procedures relating to its investment management and trading practices that are designed to ensure that such conflicts are addressed appropriately and that clients are treated fairly. On occasion, employees of Smith may purchase or sell, for their own accounts, securities also invested in by clients or recommended to clients. Smith maintains a code of ethics that is designed to prevent the conflicts of interest presented by employees personal securities transactions. C. Structure of Portfolio Managers Compensation for Fiscal Year Ended September 30, 2014 FIMCO s Portfolio Managers: Each FIMCO portfolio manager of each Fund covered by this SAI receives a salary. Each portfolio manager also is eligible to receive a bonus with respect to each Fund that he manages. Whether or not a portfolio manager receives a bonus award is dependent upon, among other factors, the performance of the Fund during the previous calendar year. The factors (determined annually) incorporated into a bonus formula which determine the eligible bonus award include: performance versus a specified Lipper Peer Group for each calendar year, average net assets of the Fund, and management fees received. A portion of the bonus to be paid is dependent on other factors, including the portfolio manager s compliance record. In the case of a Fund that has more than one portfolio manager, the bonus may be shared. In addition to the bonuses that they may receive on the Funds that they manage, FIMCO s Director of Equities and Director of Fixed Income may be entitled to receive a percentage of any bonus that is earned by a portfolio manager who reports to them. All bonuses are paid as follows: one-third of the bonus is paid within the first quarter of the following year and the remaining amount is invested in one of the Funds and then paid in two installments over the next two years. In the case of each bonus installment, the portfolio manager must remain actively employed by FIMCO and be in good standing with FIMCO until each installment is paid; otherwise the installment is forfeited. Each portfolio manager is also entitled to participate on the same basis as other employees in the profit sharing plan that is offered by FIMCO s parent company. The amount that is contributed to this plan is determined in the sole discretion of the parent company based upon the overall profitability of FIMCO and its affiliates from all lines of business. The profitability of FIMCO is an important factor in determining the amount of this contribution. I-16

21 The following chart shows each Fund s Lipper Peer Group for purposes of determining each portfolio manager s bonus for the fiscal year ended September 30, Fund Total Return Equity Income Growth & Income Opportunity Special Situations Lipper Peer Group Lipper Mixed Asset Target Allocation-Moderate Funds Lipper Equity Income Funds Lipper Multi-Cap Core Funds Lipper Mid-Cap Core Funds Lipper Small-Cap Core Funds In addition to managing a Fund covered by this SAI and other First Investors Funds, Mr. Wagner is also primarily responsible for managing the fixed income investments in the parent company s own profit sharing plan and the investment accounts of FIMCO and its life insurance company affiliate (collectively, the proprietary accounts ). In addition to managing certain Funds covered by this SAI and other First Investors Funds, Mr. Miska is primarily responsible for managing the equity investments in the parent company s profit sharing plan and the investment accounts of FIMCO. Mr. Wagner and Mr. Miska may receive compensation (apart from their normal FIMCO salary and entitlement to participate on the same basis as other employees in the parent company s profit sharing plan) for managing the investments of the proprietary accounts. Some of the proprietary accounts invest in assets that are eligible investments for the Funds that Messrs. Wagner and Miska manage or oversee in their capacities as Directors of Fixed Income and Equities. Thus, they could have a potential economic incentive to favor the proprietary accounts over the Funds in determining which investments to buy, sell or hold. FIMCO monitors trading in the proprietary accounts to address such potential conflicts. Wellington Management s Portfolio Managers: Wellington Management receives a fee based on the assets under management of the Global Fund as set forth in the Subadvisory Agreement between Wellington Management and FIMCO on behalf of the Global Fund. Wellington Management pays its investment professionals out of its total revenues, including the advisory fees earned with respect to the Global Fund. The following information relates to the fiscal year ended September 30, Wellington Management s compensation structure is designed to attract and retain high-caliber investment professionals necessary to deliver high quality investment management services to its clients. Wellington Management s compensation of the Fund s portfolio managers listed in the prospectus who are primarily responsible for the day-to-day management of the Fund ( Investment Professionals ) includes a base salary and incentive components. The base salary for each Investment Professional who is a partner of Wellington Management Group LLP (the Partnership ), the ultimate holding company of Wellington Management, is generally a fixed amount that is determined by the managing partners of the Partnership. The base salary for the other Investment Professionals is determined by the Investment Professionals experience and performance in their roles as an Investment Professional. Base salaries for Wellington Management s employees are reviewed annually and may be adjusted based on the recommendation of an Investment Professional s manager, using guidelines established by Wellington Management's Compensation Committee, which has final oversight responsibility for base salaries of employees of the firm. Each Investment Professional is eligible to receive an incentive payment based on the revenues earned by Wellington Management from the Global Fund and generally each other account managed by such Investment Professional. Each Investment Professional s incentive payment relating to the Global Fund is linked to the gross pre-tax performance of the portion of the Global Fund compared to the benchmark index and/or peer group identified below over one- and three-year periods, with an emphasis on three-year results. In 2012, Wellington Management began placing increased emphasis on long-term performance and is phasing in a five-year performance comparison periods, which will be fully implemented by December 31, Wellington Management applies similar incentive compensation structures (although the benchmarks or peer groups, time periods and rates may differ) to other accounts managed by the Investment Professionals, including accounts with performance fees. Portfolio-based incentives across all accounts managed by an investment professional can, and typically do, represent a significant portion of an investment professional s overall compensation; incentive compensation varies significantly by individual and can vary significantly from year to year. The Investment Professionals may also be eligible for bonus payments based on their overall contribution to Wellington Management s business operations. Senior management at Wellington Management may reward individuals as it deems appropriate based on other factors. Each partner of the Partnership is eligible to participate in a partner- I-17