First Investors Limited Duration Bond Fund

C000141428 Fund Overview

First Investors Limited Duration Bond Fund is a US mutual fund managed by First Investors Income Funds, categorised as Short Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: First Investors Income Funds
• Category: Short Bond
• Assets under management: $324.36M
• SEC CIK: 0000740967
• SEC series ID: S000045420
• Share class ID: C000141428

C000141428 Investment Objective and Strategy

First Investors Limited Duration Bond Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by First Investors Income Funds.

Investment objective

The Fund seeks current income consistent with low volatility of principal.

Principal investment strategy

Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in investment grade bonds. For purposes of the 80% policy, investment grade bonds also include other investment grade fixed-income securities. Investment grade debt securities include those that are rated within the four highest ratings categories by Moodys Investors Service, Inc. (Moodys) or Standard & Poors Ratings Services (S&P) or that are unrated but determined by the Funds investment adviser, Foresters Investment Management Company, Inc. (Adviser), to be of equivalent quality. The Fund may invest in a variety of different types of investment grade securities, including corporate bonds, securities issued or guaranteed by the U.S. Government or U.S. Government-sponsored enterprises (some of which are not backed by the full faith and credit of the U.S.

Government), mortgage-backed and other asset-backed securities. In making investment decisions, the Adviser considers the outlook for interest rates, economic forecasts and market conditions, credit ratings, and its own analysis of an issuers financial condition. The Adviser will not necessarily sell an investment if its rating is reduced. To a lesser extent, the Fund also invests in high yield, below investment grade corporate bonds (commonly known as high yield or junk bonds). The Adviser has retained Muzinich & Co, Inc. (Muzinich) as a subadviser to manage this portion of the Fund. High yield bonds include bonds that are rated below Baa3 by Moodys or below BBB- by S&P as well as unrated bonds that are determined by Muzinich to be of equivalent quality. Muzinich will consider ratings assigned by ratings agencies in selecting high yield bonds, but relies principally on its own research and investment analysis.

In managing its portion of the Fund, Muzinich focuses on investments it believes can generate attractive and consistent income. Muzinich may sell a bond when it shows deteriorating fundamentals or it falls short of the portfolio managers expectations. In addition, the Adviser may also invest in exchange-traded funds (ETFs) that could expose the Fund to high yield securities. Additionally, from time to time, in pursuing its investment strategies, the Fund may hold significant investments in a specific market sector. The Fund seeks to maintain an average weighted duration of between two and six years. Duration is a measurement of a bonds sensitivity to changes in interest rates. For every 1% change in interest rates, a bonds price generally changes approximately 1% in the opposite direction for each year of duration.

For example, if a portfolio of fixed income securities has an average weighted duration of six years, its value can be expected to fall about 6% if interest rates rise by 1%. Conversely, the portfolios value can be expected to rise approximately 6% if interest rates fall by 1%. As a result, prices of securities with longer durations tend to be more sensitive to interest rate changes than prices of securities with shorter durations. By comparison, a debt securitys maturity is the date on which the security matures and the issuer is obligated to repay principal. Duration is typically not equal to maturity. The Fund may invest in U.S. Treasury futures and options on U.S. Treasury futures to hedge against changes in interest rates.

C000141428 Costs and Fees

C000141428 costs about $36 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.36%
• Gross expense ratio: 0.60%
• Portfolio turnover: 102%
• Brokerage commissions: 0.07 bps of average net assets (SEC N-CEN)

C000141428 Cashflows

Over the 12 months to 2019-09, First Investors Limited Duration Bond Fund had net outflows of $119.17M, from monthly SEC N-PORT filings.

C000141428 Debt Constituents

No individual debt constituents are reported in First Investors Limited Duration Bond Fund's latest SEC N-PORT filing.

C000141428 Prospectus and SEC Filings

Official First Investors Limited Duration Bond Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-02-22
• Prospectus (485BPOS) — filed 2018-02-20
• Prospectus (485BPOS) — filed 2017-02-22
• Portfolio holdings (N-PORT) — filed 2019-11-29
• Annual census (N-CEN) — filed 2019-12-13
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Short Bond funds tracked on ABC INVEST:

• Lord Abbett Diversification Shares: Short Duration Completion Fund (LASDX)
• Sound Fixed Income ETF (SDFI)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.