First Investors Floating Rate Fund announces plans to launch

By Toni Weeks

San Luis Obispo, Calif., June 28 - First Investors Income Funds announced plans to offer a new fund, the First Investors Floating Rate Fund, according to an N-1A filing with the Securities and Exchange Commission.

The fund will seek a high level of current income. Under normal circumstances, it will invest at least 80% of its net assets, plus any borrowings for investment purposes, in floating-rate loans and/or bonds. The fund will normally invest the majority of its assets in dollar-denominated, senior floating-rate loans and/or bonds. Although the fund may invest in loans and bonds of any maturity or credit quality, it will typically invest in short-duration, high-yield bonds.

David A. Bowen, Dennis V. Dowden and Bryan Petermann will comprise the portfolio management team. All are employees of the subadviser to the fund, Muzinich & Co., Inc.

The fund will offer class A, adviser class and institutional class shares. Ticker symbols have not been set.

Shareholder fees include a 5.75% maximum sales charge and 1% maximum deferred sales charge for class A shares.

Management fees will be 0.6%. Including these and the effects of a fee limitation agreement with the investment adviser, total annual fund operating expenses will be capped at 1.1% for class A, 0.9% for adviser class and 0.7% for institutional class shares. The fee limitation agreement will expire Oct. 1, 2014.

New York-based First Investors Management Co, Inc. will be the fund's investment adviser.

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