SEMI-ANNUAL REPORT - First Investors

Portfolio of Investments (continued)
FLOATING RATE FUND
March 31, 2014
Accounting Standards Codification 820 established a three-tier hierarchy of inputs to establish a
classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is
summarized in the three broad Levels listed below:
Level 1 — Unadjusted quoted prices in active markets for identical securities that the Fund has
the ability to access.
Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly. These inputs may include quoted
prices for the identical instrument on an inactive market, prices for similar instruments,
interest rates, prepayment speeds, credit risk, yield curves, default rates and
similar data.
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs
are not available, representing the Fund’s own assumption about the assumptions a
market participant would use in valuing the asset or liability, and would be based on
the best information available.
The inputs methodology used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities. For example, amortized cost approximates the current
fair value of a security, but since the value is not obtained from a quoted price in an active market,
such securities are reflected as Level 2
The following is a summary, by category of Level, of inputs used to value the Fund’s investments as of
March 31, 2014:
Level 1 Level 2 Level 3 Total
Loan Participations . . . . . . . . . . . $ — $ 60,829,964 $ — $ 60,829,964
Corporate Bonds . . . . . . . . . . . . . — 5,633,876 — 5,633,876
Total Investments in Securities* . . $ — $ 66,463,840 $ — $ 66,463,840
* The Portfolio of Investments provides information on the industry categorization of loan participations
and corporate bonds.
There were no transfers into or from Level 1 and Level 2 by the Fund for the period ended
March 31, 2014. Transfers, if any, between Levels are recognized at the end of the reporting period.
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See notes to financial statements