First Investors Premium Income Fund

C000199350 Fund Overview

First Investors Premium Income Fund is a US mutual fund managed by First Investors Equity Funds, categorised as Developed ex-US Blend / Core Equity. 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 Equity Funds
• Category: Developed ex-US Blend / Core Equity
• Assets under management: $128.81M
• SEC CIK: 0000886048
• SEC series ID: S000061538
• Share class ID: C000199350

C000199350 Investment Objective and Strategy

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

Investment objective

The Fund seeks to generate income.

Principal investment strategy

The Fund invests in a portfolio of equity securities and writes (sells) call options on those securities. Under normal circumstances, the Fund will write (sell) call options on a majority of its total assets. Typically, all of the call options written (sold) by the Fund are expected to be in the money at the time they are written (sold). The Funds call option writing strategy is designed to generate income and lower the overall risk profile of the Funds portfolio. A call option gives the purchaser of the option the right to buy, and the writer, in this case, the Fund, the obligation to sell, the underlying security at the exercise price at any time prior to the expiration of the option, regardless of the market price of the underlying security during the option period. An in the money call option means that its exercise price is below the current market price of the underlying security.

The Fund receives premiums for writing covered call options as consideration for undertaking the obligations under the option contracts. The Fund will normally write (sell) covered call options listed on U.S. exchanges on the equity securities held by the Fund. The Funds equity investments will consist primarily of common stocks of large-size U.S. companies, certain of which may pay dividends, and U.S. dollar-denominated equity securities of foreign issuers (i.e., American Depositary Receipts (ADRs)), traded on U.S. securities exchanges. To a lesser extent, the Fund may also invest in and write (sell) covered call options on securities of mid- and small-capitalization issuers and exchange-traded funds (ETFs) that track certain market indices, such as the S&P 500. The Funds covered call writing strategy is intended to generate income rather than keep pace with the equity markets.

As a result, the Fund may underperform equity markets. Covered call options may be sold up to the number of shares of the equity securities held by the Fund. In selecting investments, the Funds subadviser considers the following, among other criteria: a) companies in an industry with a large market share or significant revenues that fit the Funds investment strategy; b) companies with new products or new management to replace underperforming management; c) recent or anticipated fundamental improvements in industry environment; and d) companies that are out of favor. The Funds subadviser considers several factors when writing (selling) call options, including the overall equity market outlook, sector and/or industry attractiveness, individual security considerations, and relative and/or historical levels of option premiums.

The Fund may sell a security based on the following, among other criteria: a) an actual or anticipated significant decline in an issuers profitability and/or a significant negative outlook from management; b) a large appreciation in the stock price that leads to overvaluation relative to itself and its peers historically; c) significant management turnover at the senior level; d) an industry-wide decrease in demand for an issuers products or services; or e) unattractive call premiums. The subadviser writes call options based upon the subadvisers outlook on the economy and stock market and analysis of individual stocks, which can impact the exercise price and expiration of a call option. The writing of covered call options may result in frequent trading and a high portfolio turnover rate.

C000199350 Costs and Fees

C000199350 costs about $130 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.30%
• Gross expense ratio: 1.37%
• Portfolio turnover: 77%
• Brokerage commissions: 16.84 bps of average net assets (SEC N-CEN)

C000199350 Cashflows

Over the 12 months to 2019-09, First Investors Premium Income Fund had net inflows of $12.67M, from monthly SEC N-PORT filings.

C000199350 Debt Constituents

No individual debt constituents are reported in First Investors Premium Income Fund's latest SEC N-PORT filing.

C000199350 Prospectus and SEC Filings

Official First Investors Premium Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-02-22
• Prospectus (485BPOS) — filed 2018-04-13
• 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 Developed ex-US Blend / Core Equity funds tracked on ABC INVEST:

• State Street International Stock Selection Fund (SSAIX)
• Columbia Pyrford International Stock Fund (PISJX)
• Core Market Neutral Fund (STTKX)
• Long Cramer Tracker ETF (LJIM)
• Baillie Gifford International Smaller Companies Fund (BICKX)

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.