Portfolio Manager's Letter
First Investors Life Series Fund -- BLUE CHIP SERIES
Dear Investor:
The U.S. economic recovery hit full stride in 1994 with gross domestic
product growth of approximately 4%. The unemployment rate fell from
6.4% to 5.4% over the course of the year as the economy created 3.5
million new jobs. Feeling secure about job prospects, consumers were
willing to borrow and spend. U.S. vehicle sales reached their highest
level since 1988. Despite strong growth, inflation remained below 3% as
low labor costs, improved productivity and international competition
kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short-term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
The stock market weakened as valuations became less attractive versus
high bond market yields. The equity market was driven more by fears of
inflation and rising interest rates than by good earnings reports which
generally showed growth in revenues and improved profit margins.
Investors became increasingly skittish as volatility increased.
During 1994, the Blue Chip Series paid dividends of $.08 per share from
net investment income and made a capital gains distribution of $.17 per
share. The Series total return for the year declined 1.45%,
underperforming the S&P Index which rose 1.28%. This was due in part to
an overweighted position in cyclical securities, such as steel and
housing related issues. As the Fed tightened monetary policy, investors
began to fear that the economy would slow and cause corporate profits
to peak prematurely. Investors aggressively sold cyclical issues
causing many securities to trade at historically low price/earnings
multiples even as some of these companies reported record earnings. The
stock market also penalized any company which failed to meet analysts'
earnings expectations.
Technology and health care issues were the best performers for 1994.
Technology companies, such as Motorola and Automatic Data Processing,
are benefitting from the trend towards substitution of capital for
labor. Companies are upgrading technology in order to increase
productivity and boost corporate profits. The Blue Chip Series also
benefitted from its exposure to companies with sizeable foreign and
export profits. Investors became increasingly convinced that the global
economy, especially Europe, was growing at a stronger pace than the
U.S. economy.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- BLUE CHIP SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Blue Chip Series and the Standard &
Poor's 500 Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
Blue Chip Series Standard & Poor+s 500 Index
<S> <C> <C>
Mar-90 $ 9,375 $10,000
Dec-90 9,349 10,007
Dec-91 11,740 13,033
Dec-92 12,579 13,966
Dec-93 12,997 15,332
Dec-94 13,453 15,529
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (1.45%) (8.35%)
Since Inception 7.96% 6.35%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Blue Chip Series on 3/8/90 (inception date) with a
similar investment in the S&P 500 Index. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Series and all dividends and distributions were
reinvested.
The S&P 500 Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all
major industries. The Index does not take into account fees and
expenses. It is not possible to invest in the Standard & Poor's 500
Index.
*Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return Since Inception would have
been 6.18%. Results represent past performance and do not indicate
future results. Investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. S&P 500 Index figures from
Standard & Poor's and all other figures from First Investors Management
Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- CASH MANAGEMENT SERIES
Dear Investor:
The principal factor that affected the Series performance in 1994 was
the Federal Reserve's decision in February to begin raising short-term
interest rates. The U.S. economic recovery hit full stride during 1994
with gross domestic product growth of approximately 4%. The
unemployment rate fell from 6.4% to 5.4% as the economy created 3.5
million new jobs. Feeling secure about job prospects, consumers were
willing to borrow and spend. U.S. vehicle sales reached their highest
level since 1988. Despite strong growth, inflation remained below 3%
as low labor costs, improved productivity and international competition
kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short-term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
Increasing short-term interest rates provided something to cheer about
in 1994 for money market funds. After several years of experiencing
low yields due to low interest rates, money market funds emerged as one
of the best performing investment vehicles of the year.
In the Cash Management Series' conservative investment philosophies,
the hallmark of your Series, enabled it to avoid some of the turmoil
that more aggressive funds encountered. The Series continued to focus
on quality, short-term investments that have been the backbone of the
money market industry while also employing, for a small portion of the
portfolio, high quality structured products that allow funds to benefit
from higher rates.
We believe that an average weighted maturity is the measure that most
accurately reflects a money market fund's interest rate risk. As a
result of our conservative approach, your Series had a "shorter-than-
average" average weighted maturity when interest rates started to rise.
This helped your Series, as investments in the Series matured more
quickly and were reinvested at higher rates sooner than in other funds.
For 1994, the Cash Management Series, Inc. returned 3.77%.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Clark D. Wagner
Chief Investment Officer
/s/ Michael O'Keefe
Assistant Portfolio Manager
January 31, 1995
Portfolio Manager's Letter
First Investors Life Series Fund -- DISCOVERY SERIES
Dear Investor:
The U.S. economic recovery hit full stride in 1994 with gross domestic
product growth of approximately 4%. The unemployment rate fell from
6.4% to 5.4% over the course of the year as the economy created 3.5
million new jobs. Feeling secure about job prospects, consumers were
willing to borrow and spend. U.S. vehicle sales reached their highest
level since 1988. Despite strong growth, inflation remained below 3% as
low labor costs, improved productivity and international competition
kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short-term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
Emerging growth stocks underperformed the broader stock market in 1994.
For the year, the NASDAQ Industrials were off 6.46%, the Lipper Small
Company Growth Fund Index declined .73% and the Russel 2000 Index was
down 3.18%, as compared to the Discovery Series which declined 2.53%.
Your Series performed in line with the Lipper Small Company Growth Fund
Index throughout the year untill December.
The Discovery Series' setback in December was partly the result of
Mexico's devaluation of the Peso. We also had several individual stock
disappointments, many of which failed to meet Wall Street analysts'
earnings expectations, which had a negative effect on performance. The
stocks covered various sectors, including finance, telecommunications,
recreation vehicles and medical.
During 1994, your Series' performance was positively impacted by its
exposure to both the technology and healthcare sectors, the two
strongest performing sectors for the year. The worst performing sectors
were biotechnology and medical technology. Your Series had minimal
participation in these areas, which also aided performance. In
addition, select retail stocks and capital goods stocks were positive
contributors to performance.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- DISCOVERY SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Discovery Series, the Lipper Small
Company Growth Index and the Russell 2000 Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
Russell 2000 Lipper Small Company
Discovery Series Index Growth Index
<S> <C> <C> <C>
Nov-87 $ 9,375 $10,000 $10,000
Dec-87 9,321 10,250 10,129
Dec-88 9,656 12,494 11,847
Dec-89 11,936 14,526 14,471
Dec-90 11,284 11,701 16,113
Dec-91 17,142 17,079 24,294
Dec-92 19,816 20,232 26,750
Dec-93 24,215 24,078 31,129
Dec-94 23,603 23,313 30,902
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (2.53%) (9.36%)
Five Years 14.61% 12.96%
Since Inception 13.91% 12.77%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Discovery Series on 11/9/87 (inception date) with a
similar investment in the Lipper Small Company Growth Index and the
Russell 2000 Index. For purposes of the graph and the accompanying
table, unless otherwise indicated, it has been assumed that the maximum
sales charge was deducted from the initial $10,000 investment in the
Series and all dividends and distributions were reinvested.
The Lipper Small Company Growth Fund Index is a net value weighted
index of the 30 largest small company growth funds. It is calculated
with adjustments for income dividends and capital gains distributions
as of the ex-dividend dates. The Index does not take into account fees
and expenses. It is not possible to invest in the Lipper Small Company
Growth Fund Index.
The Russell 2000 Index consists of the smallest 2,000 companies in the
Russell 3000 Index which represents approximately 98% of the investable
U.S. equity market. The Russell 2000 Index is an unmanaged index
generally considered as the premier measure of small capitalization
stocks. The Index does not take into account fees and expenses. It is
not possible to invest in the Russell 2000 Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. The
S.E.C. Standardized Average Annual Total Return from N.A.V. Only"
returns are calculated without sales charges. The "S.E.C. Standardized"
returns shown are based on the maximum sales charge of 7.00%. Some or
all of the expenses of the Series were waived or assumed. If such
expenses had been paid by the Series, the S.E.C. Standardized Average
Annual Total Return for Five Years and Since Inception would have been
12.70% and 12.58%, respectively. Results represent past performance and
do not indicate future results. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Lipper
Small Company Growth Index figures from Lipper Analytical Services
Inc., Russell 2000 Index figures from Frank Russell and Company and all
other figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- GOVERNMENT SERIES
Dear Investor:
The principal factors that affected the Series' performance in 1994
were strong economic growth and fears of inflation. The U.S. economic
recovery hit full stride with gross domestic product growth of
approximately 4%. The unemployment rate fell from 6.4% to 5.4% as the
economy created 3.5 million new jobs. Feeling secure about job
prospects, consumers were willing to borrow and spend. U.S. vehicle
sales reached their highest level since 1988. Despite strong growth,
inflation remained below 3% as low labor costs, improved productivity
and international competition kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short-term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
To understand the performance of the bond market in 1994, it is
important to recall that the 1993 bond market rally caused a very heavy
volume of prepayment activity in the mortgage-backed bond market. As
prepayments shortened durations of mortgage-backed security funds,
portfolio managers, seeking to maintain portfolio duration, were forced
to purchase longer-term securities in the U.S. Treasury sector. The
converse occurred in 1994. Mortgage-backed security yields began to
rise in early 1994, as yields in other markets started to increase. The
backup in yields caused prepayments to slow, thereby lengthening the
duration of mortgage-backed security portfolios. Portfolio managers
were forced to sell longer-term securities in the U.S. Treasury sector
in order to hedge their now longer mortgage-backed durations. The
effect was to accelerate greatly the early phases of the fixed-income
markets' deterioration in 1994.
The Government Series declined 4.10% in 1994, underperforming the
Salomon Mortgage Index. The primary reason for the Series' performance
was lack of investment in high coupon mortgage-backed bonds. As
interest rates increased throughout the year, premium coupons such as
9's and 9.5's lost their price "insulation" as a result of slower
prepayment speeds. Consequently, as their average lives lengthened,
increasing their sensitivity to rising interest rates, their prices
deteriorated beyond expectations. However funds that remained invested
from 1993 in 10% coupons or higher were positioned more defensively,
and as such, retained a greater percentage of principal.
The Series' performance was also decreased by its holdings in non-
callable U.S. Agency bonds. These holdings had maturities ranging from
five to ten years which lengthened the average maturity of the
portfolio versus the Salomon Mortgage Index.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Clark D. Wagner
Chief Investment Officer
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- GOVERNMENT SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Government Series,
the Salomon Brothers Mortgage Index and the Salomon Brothers Government
Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
Government Series Salomon Brothers Salomon Brothers
Government Series Mortgage Index Government Index
<S> <C> <C> <C>
Jan-92 $10,865 $11,611 $12,056
Dec-92 10,419 11,445 11,650
Dec-93 10,865 11,611 12,056
Dec-94 10,419 11,445 11,650
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (4.10%) (10.78%)
Since Inception 3.87% 1.39%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Government Series on 1/7/92 (inception date) with
similar investments in the Salomon Brothers Mortgage Index and the
Salomon Brothers Government Index. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Series and all dividends and distributions were
reinvested.
The Salomon Brothers Mortgage Index is a market capitalization-weighted
index that consists of all agency pass-throughs and FHA and GNMA
project loans. The Salomon Brothers Government Index is a market
capitalization-weighted index that consists of the traditional agencies
such as FNMA and FHLMC, and the newer agency issuers, such as the
Financing Corp. and the Government Trust Certificate bonds. The
Indices maintain high standards of pricing reliability, every issue is
trader-priced, and the Indices follow consistent and realistic
availability limits, including only those securities with a sufficient
amount outstanding. The Indices do not take into account fees and
expenses. It is not possible to invest in the Salomon Brothers
Government Index or the Salomon Brothers Mortgage Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return for One Year and Since
Inception would have been (11.33%) and .74%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less
than the original cost. Salomon Brothers Mortgage Index and Salomon
Brothers Government Index figures from Salomon Brothers and all other
figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- GROWTH SERIES
Dear Investor:
The U.S. economic recovery hit full stride in 1994 was a difficult year
in the financial markets despite a positive surprise in terms of
economic performance both here and abroad. In fact, accelerating growth
around the world spurred inflation fears and tighter monetary policy
which led to the worst year for U.S. bonds since 1927. While the
overall market held up quite well during the year, actually posting a
slight gain (1.3% for the S&P 500 Index), individual stocks exhibited
significant volatility with many stocks declining 20% or more! The
Growth Series declined 2.87% for the fiscal year ending December 31,
1994, as compared to the S&P 500 Index which rose 1.28%.
During the year, consumer cyclicals such as autos and retailers, banks,
insurance companies, utilities, and transportation stocks were all hard
hit by the rise in rates. On the other hand, food, beverage and
tobacco, household products, health care and technology stocks
performed well. The Series' performance benefitted from positions in
pharmaceuticals, technology related and industrial issues. Conversely,
the Series' performance was hurt by its overweighting in telephone
service companies and by its underweighting in the food, beverage and
tobacco sector which rallied. For example, Nextel, a rapidly emerging
wireless cellular communications company, dropped as investor
confidence in the "MIRS" technology and Nextel's competitive advantage
slipped markedly. Also, the Series' holding in Telefonos de Mexico, the
Mexican telephone company, declined as a result of the Peso
devaluation.
The portfolio's strategy over the last twelve months has been to focus
on sectors and individual securities that are expected to demonstrate
strong relative earning gains. Areas of emphasis include the
technology, finance and health care sectors and specifically, companies
with large exposures to overseas economies that are still in a recovery
mode. Conversely, the portfolio has remained skeptical of many of the
traditional consumer nondurable companies due to inferior relative
earnings growth, shrinking margins and unattractive valuations. Rather,
the portfolio has retained positions in growth sectors such as media,
health care, telecommunications and technology as they have reported
surprisingly good earnings in the past year.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Matthew E. Megargel
Portfolio Manager
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- GROWTH SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Growth Series and the Standard & Poor's
500 Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
Growth Series Standard & Poor+s 500 Index
<S> <C> <C>
Nov-87 $ 9,375 $10,000
Dec-87 9,321 10,729
Dec-88 10,037 12,498
Dec-89 12,446 16,640
Dec-90 12,074 16,587
Dec-91 16,262 20,661
Dec-92 17,852 22,103
Dec-93 18,923 24,224
Dec-94 18,379 24,535
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (2.87%) (9.66%)
Five Years 8.11% 6.55%
Since Inception 9.99% 8.99%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Growth Series on 11/9/87 (inception date) with a
similar investment in the S&P 500 Index. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the fund and all dividends and distributions were
reinvested.
The S&P 500 Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all
major industries. The Index does not take into account fees and
expenses. It is not possible to invest in the Standard & Poor's 500
Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return for Five Years and Since
Inception would have been 4.85% and 7.67%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less
than the original cost. S&P 500 Index figures from Standard & Poor's
and all other figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- HIGH YIELD SERIES
Dear Investor:
The principal factors that affected the Series' performance in 1994
were strong economic growth and fears of inflation. The U.S. economic
recovery hit full stride with gross domestic product growth of
approximately 4%. The unemployment rate fell from 6.4% to 5.4% as the
economy created 3.5 million new jobs. Feeling secure about job
prospects, consumers were willing to borrow and spend. U.S. vehicle
sales reached their highest level since 1988. Despite strong growth,
inflation remained below 3% as low labor costs, improved productivity
and international competition kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
Last year began positively as high yield bonds were in great demand.
However, as rising interest rates caused bond investors to retrench,
especially in the second half of 1994, caution pervaded the market.
High yield underwriting volume fell to $43 billion from over $70
billion in 1993. A market preference for better quality credits
benefitted that sector of the market and the High Yield Series in
particular.
The high yield market was not immune to the difficult conditions in the
fixed income and equity markets with the First Boston High Yield Index
posting a total return of -.97%. The High Yield Series, posted a total
return of -1.56% according to Lipper Analytical Services, Inc. This
compares favorably to a total return of -3.83% for the average high
yield fund (according to Lipper Analytical Services) which exceeded the
performance of the benchmark U.S. Treasury ten year note by over four
percent.
The Series' performance benefitted from an interest rate posture that
proved to be relatively defensive. With most of the portfolio invested
in high coupon bonds that tend to be more stable in price, the Series
was less adversely affected by the trend toward higher interest rates
than it might have been. Lower or zero coupon bonds trading at
discounted prices were negatives, but the Series had moderate exposure
to these types of securities.
Correct industry choices and individual bond selections are the key
factors that differentiated the High Yield Series from many of its
competitors. Announcements by investment grade companies that they were
acquiring issuers whose securities were held by the Series bolstered
the values of various Series holdings, such as Allison Engine 10%, and
Transco Energy 11 1/4%. We foresaw good economic growth and emphasized
cyclical investments benefitting from volume growth and pricing
improvement in the chemical, mining/metal, paper/forest product
sectors. As importantly, the Series had little or no exposure to some
of the worst performing sectors: casinos, home builders and emerging
markets. Through careful management, the Series avoided distressed
situations in all but one instance, Acme Holdings 11 3/4%. Still, credit
concerns caused other bonds to decline in value, such as Lomas Mortgage
10 1/4%, Synthetic Industries 12 3/4%. Investments that decline in value
are held only if we expect competitive future returns.
To sum up, high yield bonds were less buffeted by interest rate risk in
1994 than most fixed income alternatives. Investors who were able to
accept the inherent credit risk in the Series were rewarded.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ George V. Ganter
Portfolio Manager
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- HIGH YIELD SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- High Yield Series and the First Boston
High Yield Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
High Yield Series First Boston High Yield Index
<S> <C> <C>
Nov-87 $ 9,375 $10,000
Dec-87 9,302 10,643
Dec-88 10,753 12,096
Dec-89 10,564 12,143
Dec-90 9,828 11,368
Dec-91 13,155 16,342
Dec-92 14,898 19,057
Dec-93 17,603 22,661
Dec-94 17,327 22,441
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (1.56%) (8.46%)
Five Years 10.40% 8.81%
Since Inception 9.09% 7.99%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- High Yield Series on 11/9/87 (inception date) with
a similar investment in the First Boston High Yield Index. For purposes
of the graph and the accompanying table, unless otherwise indicated, it
has been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Series and all dividends and
distributions were reinvested.
The First Boston High Yield Index is designed to measure the
performance of the High Yield Bond Market. The index consists of 661
different issues, 576 of these are cash pay, 70 are zero-coupon, 6 are
step bonds, 4 are payment-in-kind bonds and the remaining 5 are in
default. The bonds included in the Index have an average life of 8.1
years, an average maturity of 8.2 years an average duration of 4.7
years and an average coupon of 10.65%. The Index does not take into
account fees and expenses. It is not possible to invest in the First
Boston High Yield Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return for Five Years and Since
Inception would have been 8.73% and 7.95%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will flucuate so
that an investor's shares, when redeemed, may be worth more or less
than the original cost. The unusually high current yields offered
reflect the substantial risks associated with investments in high yield
bonds. The issuers of the bonds pay higher interest rates because they
have a greater likelihood of financial difficulty, which could result
in their inability to repay the bonds fully when due. Prices of high
yield bonds are also subject to greater fluctuations. First Boston
High Yield Index figures from CS First Boston and all other figures
from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- INTERNATIONAL SECURITIES SERIES
Dear Investor:
We are pleased to present the annual report for the First Investors
Life Series Fund--International Securities Series. As of December 31,
1994, the Series net asset value per share was $13.51. The Series ended
the fiscal year with 94% invested in equities and the remainder in cash
and cash equivalents.
The year 1994 was a difficult one in the global equity markets. Global
investors were preoccupied with rising interest rates and their
negative impact on valuations, crossborder capital flows and longer
term corporate profitability. Although the U.S. equity market finished
the year slightly positive, the twelve month return of 1.3% for the S&P
500 Index belies the turbulence of most market sectors. In the major
non-U.S. equity markets, Japan was the clear winner in 1994, with an
annual gain of 9% in local terms and 22% in dollar terms. The improving
economy in Japan and the strength of foreign currencies against the
dollar accounted for the Morgan Stanley Capital Index Europe Asia Far
East return of 8.1% in dollar terms. The major European bourses were
mixed for the year, but overall performance as measured by the MSCI
Europe Index was up 2.7%, also in U.S. dollars. The adverse
consequences of rising U.S. interest rates were felt around the world.
Rising rates had a particularly negative impact on countries with
currencies tied closely to the U.S. dollar and emerging markets
dependent on global capital flows. Mexico fell in both camps. Indeed,
in the case of Mexico, the government's decision to "widen" the
fluctuation bands between the Mexican peso and the U.S. dollar led to
an abrupt and precipitous decline in that market, as well as in other
parts of Latin America. Rising rates also had a negative impact on the
smaller Asian markets as evidenced by a -14% return for the MSCI Pac
Basin ex-Japan Index.
The International Securities Series declined 1.29% for the
fiscal year ended December 31, 1994. The Series' performance was hurt
by its underweighting in Japan (18.8% of equities), relative to the
MSCI World Index (28.1% of equities). The performance was also held
back by its initial overweighting in emerging market countries which
declined 22% during the first quarter of 1994. During the second
quarter, the Series began to reduce its exposure to emerging countries,
where markets are sensitive to cashflows from foreign investors and
U.S. monetary policy, and became biased towards larger more well
established equity markets such as the United States, Japan, the United
Kingdom, France and Germany. The decision to trim the Series' exposure
to emerging/high growth economies had a positive impact on performance
for the remainder of the year. For example, at year-end, the
portfolio's exposure to Hong Kong, which declined 28.9% during 1994,
was 2.5% of equities, down from 9.7% at the beginning of the year.
Also, as of year-end, the International Securities Series owned only
one Mexican ADR and one Mexican stock, 2% of equities, trimmed down
from 4.1% earlier in the year.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Trond Skramstad
Director of International Investing
Global Equity Strategy Group
Wellington Management Company
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- INTERNATIONAL SECURITIES SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- International Securities Series and the
Morgan Stanley World Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
International Securities Morgan Stanley World
Series Index
<S> <C> <C>
Apr-90 $ 9,375 $10,000
Dec-90 9,647 9,873
Dec-91 11,060 11,746
Dec-92 10,987 11,200
Dec-93 13,423 13,791
Dec-94 13,249 14,563
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (1.29%) (8.17%)
Since Inception 7.79% 6.15%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- International Securities Series on 4/16/90 with a
similar investment in the Morgan Stanley World Index. For purposes of
the graph and the accompanying table, unless otherwise indicated, it
has been assumed that the maximum sales charge was deducted from the
initial $10,000 investment in the Series and all dividends and
distributions were reinvested.
The Morgan Stanley World Index is designed to measure the performance
of stock markets in the United States, Europe, Canada, Australia, New
Zealand, and the Far East. The Index consists of approximately 1,500
companies listed on stock exchanges in twenty two countries. The
combined market capitalization of companies in the Index represents
approximately 60% of the aggregate market value of the covered stock
exchanges. The Index does not take into account fees and expenses. It
is not possible to invest in the Morgan Stanley World Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return Since Inception would have
been 5.93%. Results represent past performance and do not indicate
future results. Investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Morgan Stanley World Index
figures from Morgan Stanley & Co. Incorporated and all other figures
from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- INVESTMENT GRADE SERIES
Dear Investor:
The U.S. economic recovery hit full stride in 1994 with gross domestic
product growth of approximately 4%. The unemployment rate fell from
6.4% to 5.4% over the course of the year as the economy created 3.5
million new jobs. Feeling secure about job prospects, consumers were
willing to borrow and spend. U.S. vehicle sales reached their highest
level since 1988. Despite strong growth, inflation remained below 3% as
low labor costs, improved productivity and international competition
kept prices from accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short-term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
The increase in rates across the maturity spectrum hurt the performance
of all fixed income instruments during 1994 with the exception of cash.
The Investment Grade Series declined 3.53% during 1994, compared to the
Lehman Brothers Corporate Bond Index, which declined by 3.93%.
Early in 1994, we positioned the portfolio for an increase in interest
rates. We shortened the average maturity and improved credit quality
through increased weightings in A-rated securities. The credit upgrade
was a defensive move against pricing pressures in the lower quality
spectrum, but a slow-down in issuance and a general lack of supply of
quality corporate paper supported better returns among Baa rated bonds.
The Investment Grade Series' exposure to the banking sector made a
positive contribution during the first half of 1994. However, in the
second half of the year, concerns about banking credit quality due to
expected compression of net interest margins and the exposure to
derivatives and to emerging market credits caused the entire sector to
come under pricing pressure. The position in electric utilities was
also a drag on performance. These bonds suffered spread widening as
competitive pressures and environmental issues continued to plague
their expected future cash flows.
On the other hand, consolidation in the defense industry was beneficial
to the portfolio as the announced acquisitions by stronger credits
boosted the prices of two of our holdings: Lockheed Corp. 6.75% and
Allison Engine 10%.
The portfolio strategy has resulted in a relatively short average
maturity and a cash equivalent position of 11% as of December 31, 1994.
At year-end, the top five industry sectors were: areospace/defense,
banking, forest products, telecommunications and utilities.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
/s/ Nancy W. Jones
Portfolio Manager
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- INVESTMENT GRADE SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Investment Grade Series and the Lehman
Brothers Corporate Bond Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CABLE>
Investment Grade Series Lehman Brothers Corporate Bond Index
<S> <C> <C>
Jan-92 $ 9,375 $10,000
Dec-92 10,120 10,869
Dec-93 11,215 12,190
Dec-94 10,819 11,711
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (3.53%) (10.25%)
Since Inception 5.19% 2.67%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Investment Grade Series on 1/7/92 (inception date)
with a similar investment in the Lehman Brothers Corporate Bond Index.
For purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was
deducted from the initial $10,000 investment in the Series and all
dividends and distributions were reinvested.
The Lehman Brothers Corporate Bond Index includes all publicly issued,
fixed rate, nonconvertible investment grade dollar-denominated, S.E.C.-
registered corporate debt. All issues have at least one year to
maturity and an outstanding par value of at least $100 million. The
Index does not take into account fees and expenses. It is not possible
to invest in the Lehman Brothers Corporate Bond Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return for One Year and Since
Inception would have been (11.03%) and 1.75%, respectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less
than the original cost. Lehman Brothers Corporate Bond Index figures
from Lehman Brothers Inc. and all other figures from First Investors
Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- UTILITIES INCOME SERIES
Dear Investor:
The U.S. economic recovery hit full stride in 1994 with gross domestic
product growth of approximately 4%. The unemployment rate fell from
6.4% to 5.4% as the economy created 3.5 million new jobs. Feeling
secure about job prospects, consumers were willing to borrow and spend.
U.S. vehicle sales reached their highest level since 1988. Despite
strong growth, inflation remained below 3% as low labor costs, improved
productivity and international competition kept prices from
accelerating.
Nonetheless, concerned that strong economic growth would eventually
lead to inflation, the Federal Reserve in February engineered the first
of six short-term interest rate increases which in total raised rates
250 basis points (2.50%). As is typical at this point in the economic
cycle, long-term interest rates also rose with the benchmark 30 year
U.S. Treasury bond yield increasing approximately 155 basis points
(1.55%) during the year. With higher interest rates creating concern
that the economy might slow, broad stock market indices were unable to
advance and ended the year unchanged to slightly lower despite strong
earnings reported by many companies.
The Utilities Income Series' total return for the year declined 7.24%,
as compared to the S&P Utilities Index which was down 8.0% and the S&P
500 Index which rose 1.28%. During 1994, the Series invested in utility
companies which offered investors high earnings and dividend growth
potential. Within the electric sector of the market, the Series'
strategy was to: 1) avoid high dividend payout electric companies with
little growth potential, which are the most susceptible to dividend
reductions; 2) invest in electric companies that provide low cost power
in their respective geographic areas of service (such as, Duke Power,
Pacificorp, and Southern Company); 3) invest in electric companies with
successful non-utility earnings (such as, Eastern Utilities and Teco
Energy); 4) invest in electric companies located in states that have
constructive regulatory climates, such as Florida and Wisconsin; 5)
invest in electric companies that are located in growing service
territories, such as Florida and Arizona, which are among the fastest
growing areas in the United States.
In the telephone area of the market, the Series focused on companies
which we felt were best preparing for the future world of competition,
as well as companies that exhibited strong earnings growth. The Series
invested in telephone companies with above average volume, minutes-of-
use and cellular subscriber growth rates, such as Ameritech, SBC
Communications and Bellsouth. In the natural gas area, the Series
emphasized companies which in our opinion exhibited good dividend
growth potential and strong earnings growth prospects, such as Enron
Corp. and Pacific Enterprises.
During the past year, the utility sector of the market was impacted by
rising interest rates and changing industry conditions. Electric
utility companies were affected by specific concerns over competition,
high dividend payout ratios and rising interest rates. Telephone
companies also faced many challenges during the past year such as
Congressional telecommunication legislation and wireless strategy
concerns with respect to the upcoming Personal Communications Services
auctions. Natural gas companies were affected by declining natural gas
prices.
The Series was well diversified among all sectors in the utility market
which helped performance in a year that most would categorize as
difficult for utility investors. As always, we appreciate the
opportunity to serve your investment needs.
Sincerely,
/s/ Margaret R. Haggerty
Portfolio Manager
January 31, 1995
Cumulative Performance Information
First Investors Life Series Fund -- UTILITIES INCOME SERIES
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Utilities Income Series, the Standard &
Poor's 500 Index and the Standard & Poor's Utilities Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is
not part of the original printed document and is shown for
reference only. The same is also true for this descriptive
paragraph.
<TABLE>
<CAPTION>
Utilities Income Standard & Poor's Standard & Poor+s
Series 500 Index Utilities Index
<S> <C> <C> <C>
Nov-93 $9,375 $10,000 $10,000
Dec-93 9,246 10,121 9,906
Dec-94 8,577 10,251 8,617
</TABLE>
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (7.24%) (13.75%)
Since Inception (6.96%) (12.75%)
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Utilities Income Series on 11/15/93 (inception
date) with a similar investment in the S&P 500 Index and the S&P
Utilities Index. For purposes of the graph and the accompanying table,
unless otherwise indicated, it has been assumed that the maximum sales
charge was deducted from the initial $10,000 investment in the Series
and all dividends and distributions were reinvested.
The S&P 500 Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all
major industries. The Index does not take into account fees and
expenses. It is not possible to invest in the Standard & Poor's 500
Index.
The S&P Utilities Index is a capitalization-weighted index of 46 stocks
designed to measure the performance of the utility sector of the
Standard & Poor's 500 Index. The Index does not take into account fees
and expenses. It is not possible to invest in the Standard & Poor's
Utilities Index.
* Average Annual Total Return figures (for the period ended 12/31/94)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
7.00%. Some or all of the expenses of the Series were waived or
assumed. If such expenses had been paid by the Series, the S.E.C.
Standardized Average Annual Total Return for One Year and Since
Inception would have been (14.17%) and (13.12%), repectively. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less
than the original cost. S&P 500 Index and S&P Utilities Index figures
from Standard & Poor's and all other figures from First Investors
Management Company, Inc.
Portfolio of Investments
First Investors Life Series Fund--BLUE CHIP SERIES
December 31, 1994
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--87.6%
Basic Industry--1.5%
8,550 Monsanto Co. $ 602,775 $ 146
- - ------------------------------------------------------------------------------------------------------------
Capital Goods--9.2%
4,200 Boeing Co. 196,350 47
400 Browning Ferris Industries, Inc. 11,350 3
5,200 Deere & Co. 344,500 83
8,500 Dover Corp. 438,812 106
2,100 Eaton Corp. 103,950 25
2,800 Emerson Electric Co. 175,000 42
21,200 General Electric Co. 1,081,200 261
3,500 Grainger (W.W.), Inc. 202,125 49
8,800 Ingersoll-Rand Co. 277,200 67
3,600 ITT Corp. 319,050 77
900 McDonnell Douglas Corp. 127,800 31
10,400 * Varity Corp. 377,000 91
6,000 WMX Technologies Inc. 157,500 38
- - ------------------------------------------------------------------------------------------------------------
3,811,837 920
- - ------------------------------------------------------------------------------------------------------------
Consumer Durables--2.5%
3,450 Chrysler Corp. 169,050 41
11,100 Ford Motor Co. 310,800 75
9,000 General Motors Corp. 380,250 92
1,500 Goodyear Tire & Rubber Co. 50,437 12
4,950 Masco Corp. 111,994 27
- - ------------------------------------------------------------------------------------------------------------
1,022,531 247
- - ------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--18.7%
10,100 Abbott Laboratories 329,512 80
3,800 American Home Products Corp. 238,450 58
5,300 Anheuser Busch Companies, Inc. 269,637 65
6,300 Bristol-Myers Squibb Co. 364,612 88
15,950 Coca Cola Co. 821,425 198
1,400 Colgate-Palmolive Co. 88,725 21
4,700 CPC International, Inc. 250,275 60
4,550 Eastman Kodak Co. 217,262 52
2,700 Gillette Co. 201,825 49
8,000 Johnson & Johnson 438,000 106
4,200 Kellogg Co. 244,125 59
9,550 Kimberly-Clark Corp. 482,275 116
3,600 Lilly (Eli) & Co. 236,250 57
15,200 Merck & Co., Inc. 579,500 140
9,900 Pepsico Inc. 358,875 87
4,600 Pet, Inc. 90,850 22
3,750 Pfizer Inc. 289,688 70
14,400 Philip Morris Cos., Inc. 828,000 200
8,600 Procter & Gamble Co. 533,200 129
4,700 * Ralcorp Holdings Inc. 104,575 25
10,000 Sara Lee Corp. 252,500 61
2,400 Schering-Plough Corp. 177,600 43
10,700 Stride Rite Corp. 119,038 29
2,000 Unilever PLC 233,000 56
- - ------------------------------------------------------------------------------------------------------------
7,749,199 1,871
- - ------------------------------------------------------------------------------------------------------------
Consumer Services--7.9%
5,400 Albertson's, Inc. 156,600 38
2,800 Dayton-Hudson Corp. 198,100 48
6,300 Disney (Walt) Company 290,587 70
6,000 GAP, Inc. (The) 183,000 44
5,200 Home Depot Inc. (The) 239,200 58
4,400 * Kroger Co. 106,150 26
5,300 Mattel Inc. 133,163 32
4,400 May Department Stores Co. 148,500 36
9,100 McDonald's Corp. 266,175 64
5,200 Nordstrom Inc 218,400 53
3,150 * Officemax Inc. 83,475 20
4,300 Rite Aid Corp. 100,513 24
4,450 Sears, Roebuck & Co. 204,700 49
4,800 Time Warner Inc. 168,600 41
4,400 * Toys "R" Us, Inc. 134,200 32
3,400 * Viacom Inc. Class "B" 138,125 33
24,150 Wal-Mart Stores, Inc. 513,188 124
- - ------------------------------------------------------------------------------------------------------------
3,282,676 792
- - ------------------------------------------------------------------------------------------------------------
Energy--16.5%
11,300 Alcan Aluminum Ltd. 286,737 69
6,000 Amoco Corp. 354,750 86
3,000 Atlantic Richfield Co. 305,250 74
2,400 Burlington Resources, Inc. 84,000 20
7,800 Chevron Corp. 348,075 84
4,250 Dow Chemical Co. 285,812 69
8,800 Du Pont (E.I.) De Nemours & Co. 495,000 119
9,000 Enron Corp. 274,500 66
14,500 Exxon Corp. 880,875 213
4,900 Halliburton Co. 162,313 39
4,200 * Inland Steel Industries, Inc. 147,525 36
2,200 Kerr-Mcgee Corp. 101,200 24
5,500 Minnesota Mining & Manufacturing Co. 293,563 71
4,700 Mobil Corp. 395,975 96
11,700 NICOR, Inc. 266,175 64
6,200 Nucor Corp. 344,100 83
4,500 Pacific Enterprises 95,625 23
3,150 Phillips Petroleum Co. 103,163 25
5,225 Royal Dutch Petroleum Co. 561,687 136
3,800 Schlumberger, Ltd. 191,425 46
6,400 Scott Paper Co. 442,400 107
3,200 Texaco Inc. 191,600 46
7,800 Unocal Corp. 212,550 51
- - ------------------------------------------------------------------------------------------------------------
6,824,300 1,647
- - ------------------------------------------------------------------------------------------------------------
Financial--8.0%
5,250 American Express Co. 154,875 37
4,000 American International Group, Inc. 392,000 95
14,000 Banc One Corp. 355,250 86
9,700 BankAmerica Corp. 383,150 92
5,100 Chase Manhattan Corp. 175,312 42
4,800 Chemical Banking Corp. 172,200 42
5,600 Citicorp 231,700 56
5,600 Federal National Mortgage Assn. 408,100 99
4,150 First Fidelity Bancorp. 186,231 45
13,600 MGIC Investment Corp. 450,500 109
9,300 NationsBank Corp. 419,663 101
- - ------------------------------------------------------------------------------------------------------------
3,328,981 804
- - ------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--2.0%
5,400 Columbia/HCA Healthcare Corp. 197,100 48
11,250 U.S. Healthcare, Inc. 464,063 111
2,400 Warner-Lambert Co. 184,800 45
- - ------------------------------------------------------------------------------------------------------------
845,963 204
- - ------------------------------------------------------------------------------------------------------------
Retail Trade--.1%
2,500 * Price/Costco, Inc. 32,188 8
- - ------------------------------------------------------------------------------------------------------------
Technology--8.9%
8,000 * Airtouch Communications Inc. 233,000 56
1,700 Autodesk, Inc. 67,362 16
2,600 Automatic Data Processing, Inc. 152,100 37
3,500 * Cisco Systems, Inc. 122,937 30
2,600 * Compaq Computers Corp. 102,700 25
3,500 Hewlett-Packard Co. 349,563 84
5,200 Intel Corp. 332,150 80
7,050 International Business Machines Corp. 518,175 125
13,800 MCI Communications Corp. 253,575 61
8,100 * Microsoft Corp. 495,113 120
10,700 Motorola, Inc. 619,263 149
6,500 * National Semiconductor Corp. 126,750 31
6,900 * Oracle Systems Corp. 304,462 73
- - ------------------------------------------------------------------------------------------------------------
3,677,150 887
- - ------------------------------------------------------------------------------------------------------------
Transportation--1.1%
3,600 * AMR Corp. 191,700 46
11,000 * Southern Pacific Rail Corp 199,375 48
4,200 Southwest Airlines Co. 70,350 17
- - ------------------------------------------------------------------------------------------------------------
461,425 111
- - ------------------------------------------------------------------------------------------------------------
Utilities--11.2%
17,750 A T & T Corp. 891,938 215
6,800 Ameritech Corp. 274,550 66
5,400 Bell Atlantic Corp. 268,650 65
7,100 BellSouth Corp. 384,287 93
7,700 Carolina Power & Light Co. 205,012 49
13,600 Cinergy Corp. 317,900 77
7,800 Duke Power Co. 297,375 72
9,400 FPL Group, Inc. 330,175 80
11,700 GTE Corp. 355,387 86
5,500 Nynex Corp. 202,125 49
5,400 Pacific Telesis Group 153,900 37
8,800 Pacificorp 159,500 39
7,400 SBC Communications Inc. 298,775 72
9,200 Texas Utilities Co. 294,400 71
5,500 U.S. West Inc. 195,938 47
- - ------------------------------------------------------------------------------------------------------------
4,629,912 1,118
- - ------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $35,818,111) 36,268,937 8,755
- - ------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.7%
Leisure Time
$ 500 M Bellsport Corp. 4.25%, 11/15/00 (cost $418,903) 321,875 78
- - ------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--8.9%
500M Ford Motor Credit Co., 5.92%, 1/23/95 498,191 120
900M General Electric Credit Corp., 6.05%, 1/17/95 897,580 217
300M Oklahoma Gas & Electric Co., 5.90%, 1/11/95 299,508 72
2,000M Prudential Funding Corp., 5.98%, 1/17/95 1,994,685 482
- - ------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,689,964) 3,689,964 891
- - ------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $39,926,978) 97.2% 40,280,776 9,724
Other Assets, Less Liabilities 2.8 1,143,525 276
- - ------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $41,424,301 $10,000
============================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--CASH MANAGEMENT SERIES
December 31, 1994
- - -----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Annualized $10,000 of
Amount Security Yield* Value Net Assets
- - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM CORPORATE NOTES--92.1%
$ 150M Ameritech Corp., 1/9/95 5.95% $ 149,801 $ 381
175M A T & T Corp., 1/23/95 5.56 174,405 444
175M Bay States Gas Co., 1/25/95 5.90 174,312 444
175M Central Louisiana Electric Co., 1/10/95 6.00 174,737 445
175M CPC International Inc., 2/1/95 5.48 174,174 443
100M Florida Power & Light Co., 1/5/95 5.90 99,935 254
180M Ford Motor Credit, 1/24/95 6.05 179,304 456
175M General Electric Credit Corp., 2/21/95 5.93 173,530 442
150M Hartford Steam Boiler Inspection & Insurance, 1/17/95 5.50 149,633 381
175M Laclede Gas Co., 1/19/95 5.76 174,496 444
175M Metlife Funding Inc., 1/20/95 5.53 174,489 444
150M Motorola, Inc., 1/11/95 5.95 149,753 381
175M McGraw-Hill Inc., 2/7/95 5.93 173,934 443
150M Pepsico Inc., Floating Rate Note, 4/13/95 3.76 151,794 386
150M Pitney-Bowes, Inc., 2/13/95 5.92 148,940 379
175M Prudential Funding Corp., 1/26/95 5.88 174,286 444
150M Rockwell International Corp., 1/9/95 5.97 149,801 381
175M Southern California Gas Co., 2/6/95 5.77 173,990 443
175M The Stanley Works, 1/20/95 5.48 174,494 444
175M Tampa Electric Co., 1/30/95 5.96 174,160 443
175M Wisconsin Gas Co., 2/21/95 5.82 173,557 442
175M Wisconsin Power & Light Co., 1/13/95 5.67 174,669 446
- - -----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,618,194) 3,618,194 9,210
- - -----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--8.2%
150M Federal Farm Credit Bank, 3/13/94 6.12 148,190 378
175M Federal National Mortgage Association, 1/30/95 5.85 174,175 443
- - -----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $322,365) 322,365 821
- - -----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $3,940,559) 100.3% 3,940,559 10,031
Excess of Liabilities Over Other Assets (.3) (12,004) (31)
- - -----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $3,928,555 $10,000
=======================================================================================================================
* The annualized Yield shown is the effective rate at the time of purchase
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--DISCOVERY SERIES
December 31, 1994
- - --------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--89.6%
Commercial Service--3.1%
9,400 Equifax, Inc. $ 247,925 $ 82
7,600 * Insurance Auto Auctions, Inc. 232,275 77
39,700 * International Post Ltd. 188,575 62
18,500 * Interpool Inc. 275,188 91
- - --------------------------------------------------------------------------------------------------------------
943,963 312
- - --------------------------------------------------------------------------------------------------------------
Computers/Software/Business Equipment--13.4%
14,200 * Adaptec, Inc. 335,475 110
5,400 * Altera Corp. 226,125 75
7,400 * Bysis Group, Inc. 163,725 54
12,000 * Convex Computer Corp. 94,500 31
4,100 * Cornerstone Imaging Inc. 62,525 21
17,500 * Data General Corp. 175,000 58
17,000 ECI Telecommunications Limited Designs (ADR) 231,625 77
6,400 * EMC Corp. 138,400 46
6,400 * FileNet Corp. 172,800 57
18,900 Fourth Shift Corp. 51,975 17
24,400 * Fulcrum Technologies, Inc. 289,750 96
26,000 * Integrated Micro Products PLC (ADR) 188,500 62
13,500 * Lasermaster Technologies, Inc. 94,500 31
3,900 * Lotus Development Corp. 159,900 53
12,100 * Metatec Corp. 116,463 39
3,800 * Microsoft Corp. 232,275 77
8,900 * Oracle Systems Corp. 392,713 129
11,400 * Perceptron Inc. 262,200 87
6,200 * Phoenix Technologies Ltd. 46,500 15
11,400 * Pyxis Corp. 216,600 72
11,600 Reynolds & Reynolds Co. 290,000 96
5,400 * Robotic Vision Systems, Inc. 33,750 11
5,600 * Sybron Chemicals, Inc. 86,800 29
- - --------------------------------------------------------------------------------------------------------------
4,062,101 1,343
- - --------------------------------------------------------------------------------------------------------------
Consumer Products--3.3%
8,200 * CUC International, Inc. 274,700 91
16,900 Dixie Yarns, Inc. 118,300 39
9,200 Falcon Products, Inc. 108,100 36
7,300 * Harvey Entertainment 104,025 34
21,800 * National R.V. Holdings, Inc. 164,863 55
6,200 Oakwood Homes Corp. 151,125 50
5,400 * Shuler Homes, Inc. 76,950 25
- - --------------------------------------------------------------------------------------------------------------
998,063 330
- - --------------------------------------------------------------------------------------------------------------
Electronics/Instruments/Components--2.5%
7,100 General Electric Co. 362,100 120
4,100 * Nokia Corp. (ADR) 307,500 102
3,900 * Recoton Corp. 73,125 24
- - --------------------------------------------------------------------------------------------------------------
742,725 246
- - --------------------------------------------------------------------------------------------------------------
Electronics/Semiconductors--7.8%
12,700 * Actel Corp. 104,775 35
3,050 * Alliance Semiconductor Corp. 95,313 32
4,100 * Applied Materials, Inc. 173,225 57
10,000 * Asyst Technologies, Inc. 235,000 78
5,500 * Electroglas, Inc. 183,563 61
13,600 * Integrated Device Technology, Inc. 401,200 132
8,800 * Megatest Corp. 56,925 19
6,000 Motorola, Inc. 347,250 114
15,600 * National Semiconductor Corp. 304,200 100
25,000 * Tower Semiconductor Ltd. 275,000 91
3,200 * Xilinx Inc. 189,600 63
- - --------------------------------------------------------------------------------------------------------------
2,366,051 782
- - --------------------------------------------------------------------------------------------------------------
Environmental Services--.2%
11,400 * Encon Systems, Inc. 52,725 17
- - --------------------------------------------------------------------------------------------------------------
Financial/Miscellaneous--6.7%
9,800 * American Travellers Corp. 160,475 53
24,300 * Amvestors Financial Corp. 230,850 76
18,000 * Credit Acceptance Corp. 319,500 106
11,100 First USA, Inc. 364,913 121
15,050 Grupo Financiero Bancomer S.A. de C.V. (ADR) (Note 5) 178,458 59
22,500 Independent Bank Corp. 118,125 39
600 * Medaphis Corp. 27,900 9
5,550 NAC Re Corp. 185,925 61
10,700 Presidential Life Corp. 56,175 19
16,350 Reliance Group Holdings, Inc. 83,794 28
7,182 Southern National Corp. 137,356 45
4,400 Sunamerica Inc. 159,500 53
- - --------------------------------------------------------------------------------------------------------------
2,022,971 669
- - --------------------------------------------------------------------------------------------------------------
Foods--3.7%
6,800 * Canadaigua Wine Co. Class "A" 258,400 85
9,500 Dreyers Grand Ice Cream, Inc. 235,125 78
14,500 * Grist Mill Co. 135,938 45
15,300 * Ralcorp Holdings, Inc. 340,425 113
16,000 * Taco Cabana Class "A" 146,000 48
- - --------------------------------------------------------------------------------------------------------------
1,115,888 369
- - --------------------------------------------------------------------------------------------------------------
Gaming/Lodging--2.4%
12,500 * GTECH Holdings Corp. 254,688 84
18,400 * Monarch Casino & Resort, Inc. 101,200 33
8,300 * Players International, Inc. 186,750 62
16,100 * Rio Hotel and Casino, Inc. 195,213 65
- - --------------------------------------------------------------------------------------------------------------
737,851 244
- - --------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--23.8%
6,400 * Advocat, Inc. 84,800 28
12,400 * American Medical Response, Inc. 358,050 118
26,500 * Applied Bioscience International, Inc. 145,750 48
3,700 * Arbor Health Care Co. 75,850 25
18,700 * Beverly Enterprises 268,813 89
9,000 * Boston Scientific Corp. 156,375 52
3,750 * Cellpro, Inc. 37,031 12
8,200 * Clinicom, Inc. 91,225 30
9,400 Dentsply International, Inc. 296,100 98
26,300 * Ethical Holdings PLC (ADR) 170,950 57
13,000 Fisher Scientific International 321,750 106
19,400 * Future Healthcare, Inc. 400,125 132
10,050 * GMIS, Inc. 195,975 65
9,200 Health Care & Retirement Corp. 277,150 92
10,975 * Healthcare Compare Corp. 374,522 124
5,400 * I-Stat Corp. 102,600 34
11,765 Ivax Corp. 223,726 64
12,300 * Living Centers of America, Inc. 410,513 136
3,800 * Medcath Inc. 54,150 18
19,200 Mid Atlantic Medical Services, Inc. 439,200 145
15,100 * North American Vaccine, Inc. 126,463 42
8,000 * Noven Pharmaceuticals, Inc. 99,000 33
10,900 * Pacific Physicians Services, Inc. 182,575 60
7,800 * Penederm, Inc. 48,750 16
7,700 * Pharmaceutical Resources, Inc. 71,225 24
1,200 * Physician Reliance Network, Inc. 23,100 8
58,800 * Plasma-Therm, Inc. (Note 5) 404,250 134
25,300 * Protocol Systems, Inc. 227,700 75
16,000 * Quantum Health Resources, Inc. 460,000 152
17,600 Rite Aid Corp. 411,400 136
19,200 Teva Pharmaceutical Industries Ltd. (ADR) 464,400 153
7,200 * Watson Pharmaceuticals, Inc. 189,000 62
- - --------------------------------------------------------------------------------------------------------------
7,192,318 2,378
- - --------------------------------------------------------------------------------------------------------------
Industrial Services--.6%
7,600 * SPS Technologies, Inc. 192,850 64
- - --------------------------------------------------------------------------------------------------------------
Machinery/Diversified--4.9%
13,650 AGCO Corp. 414,619 137
4,200 Breed Technologies, Inc. 119,175 39
14,200 Case Corp. 305,300 101
4,900 * Clark Equipment Co. 265,825 88
8,200 Federal-Mogul Corp. 165,025 55
21,600 Owosso Corp. 216,000 71
- - --------------------------------------------------------------------------------------------------------------
1,485,944 491
- - --------------------------------------------------------------------------------------------------------------
Manufacturing/Diversified--.6%
4,800 * Dovatron International, Inc. 123,600 41
8,450 * Figgie International, Inc. 51,756 17
- - --------------------------------------------------------------------------------------------------------------
175,356 58
- - --------------------------------------------------------------------------------------------------------------
Paper/Forest Products--1.9%
4,400 Chesapeake Corp. 145,200 48
6,700 Pope & Talbot, Inc. 106,363 35
6,600 Willamette Industries, Inc. 313,500 104
- - --------------------------------------------------------------------------------------------------------------
565,063 187
- - --------------------------------------------------------------------------------------------------------------
Retail Trade--4.4%
8,600 * Designs, Inc. 60,200 20
5,700 Haverty Furniture Co., Inc. 66,975 22
15,900 * Hi-Lo Automotive, Inc. 155,025 51
14,500 * Meyer (Fred), Inc. 445,875 148
11,000 * REX Stores Corp. 178,750 59
7,000 Talbots, Inc. 218,750 72
8,900 * The Men's Wearhouse, Inc. 200,250 66
- - --------------------------------------------------------------------------------------------------------------
1,325,825 438
- - --------------------------------------------------------------------------------------------------------------
Telecommunications--6.2%
4,400 A T & T Capital Corp. 221,100 73
10,100 * Boston Technology, Inc. 145,188 48
3,700 Ericsson (L.M.) Telephone Co. (ADR) 203,963 67
11,900 MCI Communications Corp. 218,663 72
10,700 * Nextel Communications, Inc. 153,813 51
12,700 * Octel Communications Corp. 263,525 87
10,700 * Porta Systems Corp. 54,838 18
5,600 * Rogers Cantel Mobile Communications Class "B" 163,275 54
11,100 * Viacom Inc. Class "B" 450,938 150
- - --------------------------------------------------------------------------------------------------------------
1,875,303 620
- - --------------------------------------------------------------------------------------------------------------
Transportation--4.1%
13,500 London & Overseas Freighters Limited 192,375 64
11,000 MK Rail Corp. 116,875 39
6,500 * Rural/Metro Corp. 121,875 40
7,900 Sea Container Ltd. Class "A" 104,675 35
17,400 * Southern Pacific Rail Corp. 315,375 104
31,000 Transportacion Maritima Mexicana S.A. (ADR) 236,375 78
7,200 * ValuJet Airlines, Inc. 153,000 51
- - --------------------------------------------------------------------------------------------------------------
1,240,550 411
- - --------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $26,088,653) 27,095,547 8,959
- - --------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.4%
$ 150M Pacific Physicians Services, Inc., 5 1/2%, 2003 (cost $150,000) 116,250 38
- - --------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--20.1%
1,400M Lubrizol Corp., 6%, 1/6/95 1,398,834 463
1,800M Oklahoma Gas & Electric Co., 5.90%, 1/11/95 1,797,050 594
1,400M Prudential Funding Corp., 5.98%, 1/17/95 1,396,279 462
1,500M Temple-Inland Inc., 5.85%, 1/3/95 1,499,512 496
- - --------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $6,091,675) 6,091,675 2,015
- - --------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $32,330,328) 110.1% 33,303,472 11,012
Excess of Liabilities Over Other Assets (10.1) (3,059,858) (1,012)
- - --------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $30,243,614 $10,000
==============================================================================================================
* Non income producing
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--GOVERNMENT SERIES
December 31, 1994
- - --------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--51.9%
$1,100M Federal Farm Credit 8.65%, 10/1/99 $1,126,239 $ 1,430
1,000M Federal Home Loan Bank, 7.36%, 7/1/04 952,889 1,209
656M Federal Home Loan Mortgage Corp., 9.00%, 4/1/22 660,197 838
349M Federal Home Loan Mortgage Corp., 9.00%, 9/1/21 350,811 445
991M Federal National Mortgage Association, 9.00%, 10/1/20 996,254 1,265
- - --------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $4,327,023) 4,086,390 5,187
- - --------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--16.2%
1,300M Government National Mortgage Association,
8.50%, 12/15/2025 (cost $1,280,094) 1,277,250 1,621
- - --------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--30.1%
2,385M U.S. Treasury Bill, 5.25%, 2/9/95 (cost $2,372,469) 2,372,469 3,012
- - --------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $7,979,586) 98.2% 7,736,109 9,820
Other Assets, Less Liabilities 1.8 141,854 180
- - --------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $7,877,963 $10,000
==============================================================================================================
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--GROWTH SERIES
December 31, 1994
- - --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- - --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--93.5%
Beverages/Soft Drinks--2.2%
20,000 Pepsico Inc. $ 725,000 $ 221
- - --------------------------------------------------------------------------------------------------------------------------------
Broadcast Media--3.5%
32,000 Comcast Corp. Special Shares Class "A" 502,000 153
27,000 Home Shopping Network 270,000 82
13,000 Multimedia Inc. 370,500 113
- - --------------------------------------------------------------------------------------------------------------------------------
1,142,500 348
- - --------------------------------------------------------------------------------------------------------------------------------
Chemicals/Diversified--2.6%
29,700 Engelhard Corp. 660,825 201
3,800 Loctite Corp. 176,700 54
- - --------------------------------------------------------------------------------------------------------------------------------
837,525 255
- - --------------------------------------------------------------------------------------------------------------------------------
Commercial Services--1.2%
18,800 * Fiserv Inc. 404,200 123
- - --------------------------------------------------------------------------------------------------------------------------------
Computers/Software/Business Equipment--4.7%
40,700 Albemarle Corp. 564,712 172
15,700 * Cisco Systems Inc. 551,462 168
7,000 * Microsoft Corp. 427,875 130
- - --------------------------------------------------------------------------------------------------------------------------------
1,544,049 470
- - --------------------------------------------------------------------------------------------------------------------------------
Computer Software/Services--4.2%
8,000 Automatic Data Processing Inc. 468,000 143
10,000 * Computer Sciences Corporation 510,000 156
8,500 First Data Corporation 402,688 123
- - --------------------------------------------------------------------------------------------------------------------------------
1,380,688 422
- - --------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.7%
22,600 Sara Lee Corp. 570,650 174
- - --------------------------------------------------------------------------------------------------------------------------------
Consumer Services--2.8%
20,000 Circuit City Stores Inc. 445,000 136
11,000 Walgreen Co. 481,250 147
- - --------------------------------------------------------------------------------------------------------------------------------
926,250 283
- - --------------------------------------------------------------------------------------------------------------------------------
Drugs--3.9%
25,000 * Perrigo Company 312,500 95
4,600 Pfizer Inc. 355,350 108
15,000 Zeneca Group PLC Inc. 616,875 188
- - --------------------------------------------------------------------------------------------------------------------------------
1,284,725 391
- - --------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--3.2%
7,200 AMP Inc. 523,800 160
18,000 * General Instrument Corp. 540,000 165
- - --------------------------------------------------------------------------------------------------------------------------------
1,063,800 325
- - --------------------------------------------------------------------------------------------------------------------------------
Electronics/Instruments/Components--4.9%
6,000 Hewlett-Packard Co. 599,250 183
10,625 Molex Inc. 366,563 112
10,800 Motorola Inc. 625,050 191
- - --------------------------------------------------------------------------------------------------------------------------------
1,590,863 486
- - --------------------------------------------------------------------------------------------------------------------------------
Energy--2.8%
12,000 Burlington Resources Inc. 420,000 128
10,500 Kerr-Mcgee Corp. 483,000 147
- - --------------------------------------------------------------------------------------------------------------------------------
903,000 275
- - --------------------------------------------------------------------------------------------------------------------------------
Financial/Miscellaneous--1.8%
8,320 Federal National Mortgage Association 606,320 185
- - --------------------------------------------------------------------------------------------------------------------------------
Gaming/Lodging--1.2%
26,000 International Game Technology 403,000 123
- - --------------------------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--3.4%
18,000 Abbott Laboratories 587,250 179
5,100 * Biogen Inc. 212,925 65
9,000 Genetics Institute Inc. 324,000 99
- - --------------------------------------------------------------------------------------------------------------------------------
1,124,175 343
- - --------------------------------------------------------------------------------------------------------------------------------
Health Technology--1.3%
25,000 Boston Scientific Corp. 434,375 132
- - --------------------------------------------------------------------------------------------------------------------------------
Insurance--6.8%
24,000 Ace Ltd. 561,000 171
5,450 American International Group 534,100 163
16,700 American Re Corporation 538,575 164
15,000 First Colony Corporation 335,625 102
12,700 Physician Corp. of America 260,350 79
- - --------------------------------------------------------------------------------------------------------------------------------
2,229,650 679
- - --------------------------------------------------------------------------------------------------------------------------------
Iron/Steel--1.1%
22,000 * LTV Corp. 357,500 109
- - --------------------------------------------------------------------------------------------------------------------------------
Machine Tools--2.1%
15,700 Illinois Tool Works Inc. 686,875 209
- - --------------------------------------------------------------------------------------------------------------------------------
Machinery/Diversified--1.0%
11,000 Foster Wheeler Corp. 327,250 100
- - --------------------------------------------------------------------------------------------------------------------------------
Medical Supplies--1.9%
30,000 Hafslund Nycomed--Class "B" (ADR) 618,750 189
- - --------------------------------------------------------------------------------------------------------------------------------
Miscellaneous--6.0%
26,400 Duriron Company 468,600 143
5,300 Omnicom Group 274,275 84
14,600 Republic New York Corp. 660,650 201
15,000 York International 553,125 169
- - --------------------------------------------------------------------------------------------------------------------------------
1,956,650 597
- - --------------------------------------------------------------------------------------------------------------------------------
Money Center Banks--1.7%
10,000 J.P. Morgan & Co. 560,000 171
- - --------------------------------------------------------------------------------------------------------------------------------
Oil/Domestic--4.3%
10,000 Amoco Corp. 591,250 180
30,000 Unocal Corp. 817,500 249
- - --------------------------------------------------------------------------------------------------------------------------------
1,408,750 429
- - --------------------------------------------------------------------------------------------------------------------------------
Oil Service--1.0%
6,600 Schlumberger Ltd. 332,475 101
- - --------------------------------------------------------------------------------------------------------------------------------
Paper/Forest Products--3.1%
4,800 International Paper Co. 361,800 110
13,000 Kimberly-Clark Corp. 656,500 200
- - --------------------------------------------------------------------------------------------------------------------------------
1,018,300 310
- - --------------------------------------------------------------------------------------------------------------------------------
Publishing/News--2.9%
17,500 EW Scripps Co. 529,375 161
1,700 Washington Post Class "B" 412,250 126
- - --------------------------------------------------------------------------------------------------------------------------------
941,625 287
- - --------------------------------------------------------------------------------------------------------------------------------
Publishing/Printing--3.9%
12,000 Dun & Bradstreet, Inc. 660,000 202
11,850 * Scholastic Corp. 604,350 184
- - --------------------------------------------------------------------------------------------------------------------------------
1,264,350 386
- - --------------------------------------------------------------------------------------------------------------------------------
Retail Stores--2.3%
9,100 May Department Stores Inc. 307,125 94
20,600 Wal-Mart Stores Inc. 437,750 133
- - --------------------------------------------------------------------------------------------------------------------------------
744,875 227
- - --------------------------------------------------------------------------------------------------------------------------------
Telecommunications--7.5%
10,000 A T & T Corp. 502,500 153
12,500 Ericsson (L.M.) Telephone Co. (ADR) Class "B" 689,063 210
24,200 MCI Communications Corp. 444,675 136
15,000 * Nextel Communications Inc. 215,625 66
18,000 Vodafone Group PLC (ADR) 605,250 185
- - --------------------------------------------------------------------------------------------------------------------------------
2,457,113 750
- - --------------------------------------------------------------------------------------------------------------------------------
Telephone/Utilities--1.1%
8,500 Telefonos De Mexico S.A. (ADR) 348,500 106
- - --------------------------------------------------------------------------------------------------------------------------------
Transportation--1.4%
20,000 Werner Enterprises Inc. 475,000 145
- - --------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $29,460,341) 30,668,783 9,351
- - --------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS-- .8%
3,600 Nokia Corporation (ADR) (cost $145,350) 270,000 82
- - --------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--5.4%
$1,761 M Shearson Lehman Brothers Inc., 5.85%, 1/3/95, (collateralized
by U.S. Treasury Bond, 8 1/2%, 2/15/20) (cost $1,761,000) 1,761,000 537
- - --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $31,366,691) 99.7% 32,699,783 9,970
Other Assets, Less Liabilities .3 97,409 30
- - --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $32,797,192 $10,000
================================================================================================================================
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--HIGH YIELD SERIES
December 31, 1994
- - ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--86.9%
Aerospace/Defense--2.9%
$ 700M Allison Engine Co., Inc., 10%, 2003 $ 721,000 $ 223
230M Dyncorp, PIK, 16%, 2003 217,265 67
- - ------------------------------------------------------------------------------------------------------------------------------
938,265 290
- - ------------------------------------------------------------------------------------------------------------------------------
Automotive--2.5%
800M SPX Corp., 11 3/4%, 2002 799,000 247
- - ------------------------------------------------------------------------------------------------------------------------------
Chemicals--7.3%
700M Buckeye Cellulose, Inc., 10 1/4%, 2001 658,000 204
1,000M Harris Chemical North America, Inc., 0%-10 1/4%, 2001 830,000 257
600M Rexene Corp., 11 3/4%, 2004 616,500 191
300M Synthetic Industries, Inc., 12 3/4%, 2002 265,500 82
- - ------------------------------------------------------------------------------------------------------------------------------
2,370,000 734
- - ------------------------------------------------------------------------------------------------------------------------------
Conglomerates--2.5%
1,250M Eagle Industries, Inc., 0%-10 1/2%, 2003 806,250 250
- - ------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--2.0%
650M Calmar, Inc., 12%, 1997 653,250 202
- - ------------------------------------------------------------------------------------------------------------------------------
Containers--3.2%
1,000M Container Corp., 11 1/4%, 2004 1,025,000 317
- - ------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--4.2%
700M Essex Group, Inc., 10%, 2003 654,500 203
700M IMO Industries, Inc., 12%, 2001 703,500 219
- - ------------------------------------------------------------------------------------------------------------------------------
1,358,000 422
- - ------------------------------------------------------------------------------------------------------------------------------
Energy Services--7.2%
1,000M Clark R & M Holdings, Inc., 0%, 2000 568,750 176
405M Clark Oil & Refining Corp., 10 1/2%, 2001 412,087 128
800M Giant Industries, Inc., 9 3/4%, 2003 716,000 222
111M Synergy Group, Inc., 9 1/2%, 2000 88,800 28
500M Transco Energy Co., 11 1/4%, 1999 533,750 165
- - ------------------------------------------------------------------------------------------------------------------------------
2,319,387 719
- - ------------------------------------------------------------------------------------------------------------------------------
Financial Services--3.7%
660M Lomas Mortgage, USA, 10 1/4%, 2002 561,000 175
700M Olympic Financial, Ltd., 11 3/4%, 2000 644,000 199
- - ------------------------------------------------------------------------------------------------------------------------------
1,205,000 374
- - ------------------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--2.2%
700M Fleming Co., Inc., 10 5/8%, 2001 703,500 218
- - ------------------------------------------------------------------------------------------------------------------------------
Food Services--2.1%
750M Americold Corp., 11 1/2%, 2005 676,875 210
- - ------------------------------------------------------------------------------------------------------------------------------
Gaming/Lodging--3.5%
650M GB Property Funding, Inc., 10 7/8%, 2004 529,750 164
700M Showboat, Inc., 9 1/4%, 2008 589,750 183
- - ------------------------------------------------------------------------------------------------------------------------------
1,119,500 347
- - ------------------------------------------------------------------------------------------------------------------------------
Healthcare--3.5%
750M Abbey Healthcare Group, Inc., 9 1/2%, 2002 675,000 209
500M Mediq/PRN Life Support Services, Inc., 11 1/8%, 1999 452,500 140
- - ------------------------------------------------------------------------------------------------------------------------------
1,127,500 349
- - ------------------------------------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--1.5%
500M Bell & Howell Co., 10 3/4%, 2002 478,750 148
- - ------------------------------------------------------------------------------------------------------------------------------
Insurance--2.1%
700M American Life Holding Co., 11 1/4%, 2004 682,500 211
- - ------------------------------------------------------------------------------------------------------------------------------
Media/Cable Television--7.9%
1,000M Affiliated Newspaper Investments, 0%-13 1/4%, 2006 520,000 161
300M Cablevision Industries, Inc., 10 3/4%, 2002 298,500 92
750M Outdoor Systems, Inc., 10 3/4%, 2003 678,750 210
500M Rogers Cablesystems, Ltd., 9 5/8%, 2002 491,250 152
600M World Color Press, Inc., 9 1/8%, 2003 556,500 173
- - ------------------------------------------------------------------------------------------------------------------------------
2,545,000 788
- - ------------------------------------------------------------------------------------------------------------------------------
Mining/Metals--6.9%
600M Geneva Steel Co., Inc., 9 1/2%, 2004 506,250 157
900M WCI Steel, Inc., 10 1/2%, 2002 866,250 268
1,000M Wheeling-Pittsburgh Steel Corp., 9 3/8%, 2003 855,000 265
- - ------------------------------------------------------------------------------------------------------------------------------
2,227,500 690
- - ------------------------------------------------------------------------------------------------------------------------------
Miscellaneous--1.0%
800M + Acme Holdings, Inc., 11 3/4%, 2000 336,000 104
- - ------------------------------------------------------------------------------------------------------------------------------
Paper/Forest Products--7.3%
800M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 798,000 247
600M S. D. Warren Co., Inc., 12%, 2004 (Note 5) 615,000 190
1,000M Stone Container Corp., 9 7/8%, 2001 950,000 295
- - ------------------------------------------------------------------------------------------------------------------------------
2,363,000 732
- - ------------------------------------------------------------------------------------------------------------------------------
Real Estate/Construction--2.2%
800M Oriole Homes, Inc., 12 1/2%, 2003 716,000 222
- - ------------------------------------------------------------------------------------------------------------------------------
Retail-Food/Drug--3.1%
1,000M P&C Food Markets, Inc., 11 1/2%, 2001 1,015,000 314
- - ------------------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--2.0%
1M Barry's Jewelers, Inc., 12 5/8%, 1996 495 --
750M General Host Co., Inc., 11 1/2%, 2002 660,000 205
- - ------------------------------------------------------------------------------------------------------------------------------
660,495 205
- - ------------------------------------------------------------------------------------------------------------------------------
Telecommunications--4.6%
550M Paging Network, Inc., 11 3/4%, 2002 548,625 170
400M PanAmSat Capital Corp., 0%-11 3/8%, 2003 250,000 77
700M PanAmSat Capital Corp., 9 3/4%, 2000 668,500 207
- - ------------------------------------------------------------------------------------------------------------------------------
1,467,125 454
- - ------------------------------------------------------------------------------------------------------------------------------
Transportation--1.5%
500M Trism, Inc., 10 3/4%, 2000 472,500 146
- - ------------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $29,813,297) 28,065,397 8,693
- - ------------------------------------------------------------------------------------------------------------------------------
BOND UNITS--2.3%
Telecommunications
1,400 Echostar Communications Corp., 0%-12 7/8%, 2004(a) (cost $809,449) 731,500 227
- - ------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.1%
Gaming/Lodging--.0%
1,620 * Divi Hotels, Inc. (Note 4) 122 --
2,000 * Goldriver Hotel & Casino Corp., Series "B" 3,000 1
- - ------------------------------------------------------------------------------------------------------------------------------
3,122 1
- - ------------------------------------------------------------------------------------------------------------------------------
Media/Cable Television--.1%
1,000 * Affiliated Newspaper Investments 25,000 8
- - ------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $66,096) 28,122 9
- - ------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--5.2%
Financial Services
7,000 California Federal Bank, 10 5/8%, Series "B" 700,000 216
10,000 First Nationwide Bank, 11 1/2% 980,000 304
- - ------------------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $1,700,000) 1,680,000 520
- - ------------------------------------------------------------------------------------------------------------------------------
WARRANTS--.1%
Financial Services--.0%
4,000 * Olympic Financial, Ltd. (expiring 9/1/99) ( Note 5) 7,000 2
18 * Reliance Group Holdings, Inc. (expiring 1/28/97) 23 --
- - ------------------------------------------------------------------------------------------------------------------------------
7,023 2
- - ------------------------------------------------------------------------------------------------------------------------------
Gaming/Lodging--.1%
200 * Goldriver Finance Corp., Liquidating Trust 3,000 1
4,200 * Presidential Riverboat Casinos, Inc. (expiring 9/15/96) (Note 5) 16,800 5
- - ------------------------------------------------------------------------------------------------------------------------------
19,800 6
- - ------------------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--.0%
100 * Payless Cashways, Inc. (expiring 11/1/96) 150 --
- - ------------------------------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $5,375) 26,973 8
- - ------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.3%
$ 750M Raytheon, 5.95%, 1/9/95 (cost $749,008) 749,008 232
- - ------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $33,143,225) 96.9% 31,281,000 9,689
Other Assets, Less Liabilities 3.1 1,003,746 311
- - ------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $32,284,746 $10,000
==============================================================================================================================
* Non-income producing
+ In default as to principal and/or interest (Note 8)
(a) Each unit consists of a $1,000 principal amount 12 7/8% senior
secured discount note due 6/1/04 and warrants to purchase six shares
of Class "A" common stock.
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
December 31, 1994
- - -------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--90.9%
Japan--18.8%
50,000 Chichibu Onoda Cement Corp. $ 284,650 $ 91
18,000 Fujisawa Pharmaceutical Co. 194,846 62
30,000 Hitachi Co., Ltd. 297,381 95
2,000 Ito Yokado Co., Ltd. 106,846 34
30,000 Kajima Corp. 256,788 82
20,000 Kawasaki Heavy Industries 90,206 29
12,000 Kokusai Electric Co., Ltd. 230,930 74
4,000 Kyocera Corp. 296,281 95
1,000 Kyoritsu Air Tech., Inc. 24,456 8
2,000 Mabuchi Motor 150,346 48
40,000 Minebea Co., Ltd. 336,772 108
28,000 Mitsui Petrochemical Industries 246,966 79
4,500 Murata Mfg. Co., Ltd. 173,649 55
1,000 Nihon Jumbo Co., Ltd. 41,094 13
25 Nippon Telephone & Telegraph Corp. 220,758 71
92,000 * NKK Corp 254,500 81
10,000 Nomura Securities, Ltd. 207,477 66
6,000 Orix Corp. 221,309 71
2,000 Riso Kagaku Corp. 173,198 55
10,000 Sankyo Co., Ltd. 248,571 79
2,500 Sanyo Shinpan Finance Co., Ltd. 240,804 77
2,000 Secom Co., Ltd. 124,286 40
4,000 Shimamura Corp. 200,461 64
30,000 Showa Corp. 291,669 93
6,000 Sony Corp. 339,781 109
35,000 Sumitomo Realty & Development 206,973 66
8,000 Sumitomo Trust &Banking 112,258 36
4,000 TDK Corp. 193,645 62
10,000 Tokio Marine & Fire Insurance Co., Ltd. 122,281 39
- - -------------------------------------------------------------------------------------------------------------------------
5,889,182 1,882
- - -------------------------------------------------------------------------------------------------------------------------
United States--16.6%
3,750 American International Group, Inc. 367,500 117
6,500 * American Re Corp. 209,625 67
6,500 A T & T Corp. 326,625 104
4,000 * AMR Corp 213,000 68
2,000 Capital Cities ABC Inc. 170,500 54
5,000 Chrysler Corp. 245,000 78
2,500 Dow Chemical Co. 168,125 54
5,000 Exxon Corp. 303,750 97
2,500 Federal National Mortgage Association 182,188 58
5,000 General Electric Co. 255,000 81
2,500 Gillette Co. 186,875 60
2,000 Hewlett-Packard Co 199,750 64
2,500 International Paper Co. 188,438 60
4,000 J.C. Penney Co. 178,500 57
6,000 Johnson & Johnson 328,500 105
5,000 Kimberly Clark Corp. 252,500 81
10,000 MCI Communications 183,750 59
2,000 Minnesota Mining & Manufacturing Co. 106,750 34
5,000 Pepsico, Inc. 181,250 58
15,000 Unocal Corp. 408,750 131
696 * Viacom Inc. Class "A" 28,971 9
5,273 * Viacom Inc. Class "B" 214,216 68
8,300 York International Corp. 306,063 99
- - -------------------------------------------------------------------------------------------------------------------------
5,205,626 1,663
- - -------------------------------------------------------------------------------------------------------------------------
United Kingdom--8.8%
14,000 Abbey National PLC 94,291 30
45,000 Bass PLC 362,218 116
212,000 BET PLC 336,635 108
15,000 British Telecommunications PLC 88,588 28
35,000 Cadbury Schwepps PLC 236,001 75
50,000 General Electric PLC 215,115 69
15,500 Kwik Save Group PLC 133,373 43
49,200 Redland PLC 354,078 113
35,000 Royal Insurance Holdings PLC 152,771 49
34,000 Smith (W.H.) & Son Group "A" PLC 254,793 81
72,000 Tomkins PLC 247,817 79
20,000 Zeneca Group PLC 275,038 88
- - -------------------------------------------------------------------------------------------------------------------------
2,750,718 879
- - -------------------------------------------------------------------------------------------------------------------------
France--6.0%
3,044 Compagnie De Saint Gobain 350,214 112
1,528 Euro Rscg Worldwide S.A. 157,473 50
1,000 Groupe Danone 140,347 45
7,600 * Renault S.A. 251,349 80
3,600 Societe Generale Paris 378,430 121
4,200 * Technip SA 191,947 61
5,000 Total SA 290,624 93
1,800 * Ugine SA (Note 5) 126,481 41
- - -------------------------------------------------------------------------------------------------------------------------
1,886,865 603
- - -------------------------------------------------------------------------------------------------------------------------
Germany-- 4.4%
1,300 Bayer AG 304,448 97
600 Deutsche Bank AG 278,707 89
900 Mannesmann AG 245,030 78
200 Schering AG 130,966 42
400 Siemens AG 166,450 53
750 Veba AG 259,739 83
- - -------------------------------------------------------------------------------------------------------------------------
1,385,340 442
- - -------------------------------------------------------------------------------------------------------------------------
Australia--4.4 %
50,892 Amcor Ltd. 367,903 118
26,235 Broken Hill Proprietary Ltd. 398,439 127
62,000 Coles Myer Ltd. 210,633 67
28,205 National Australia Bank Ltd. 226,210 72
67,492 Pacific Dunlop Ltd. 179,562 57
- - -------------------------------------------------------------------------------------------------------------------------
1,382,747 441
- - -------------------------------------------------------------------------------------------------------------------------
Netherlands--3.6 %
30,000 Elsevier NV CVA 312,909 100
5,050 International Nederlanden CVA 238,631 76
2,500 Royal Dutch Petroleum NV CVA 272,285 87
2,500 Unilever NV CVA 293,750 94
- - -------------------------------------------------------------------------------------------------------------------------
1,117,575 357
- - -------------------------------------------------------------------------------------------------------------------------
Spain--2.8%
4,000 ENDESA 162,880 52
4,000 Empresa Nacional De Electricidad S.A.(ADR) 162,000 52
10,000 Repsol S.A. (ADR) 272,500 87
10,000 Tabacalera 266,656 85
- - -------------------------------------------------------------------------------------------------------------------------
864,036 276
- - -------------------------------------------------------------------------------------------------------------------------
Hong Kong--2.6%
100,000 Cathay Pacific Airways Ltd. 145,400 46
17,200 HSBC Holdings PLC 185,626 59
42,000 Hutchison Whampoa Ltd. 169,907 54
34,000 Swire Pacific Ltd. Class "A" 211,810 68
30,000 Wharf Holdings 101,199 32
- - -------------------------------------------------------------------------------------------------------------------------
813,942 259
- - -------------------------------------------------------------------------------------------------------------------------
Switzerland--2.4%
600 Ciba-Geigy AG Regd 358,076 114
400 Nestle SA Regd 381,153 122
- - -------------------------------------------------------------------------------------------------------------------------
739,229 236
- - -------------------------------------------------------------------------------------------------------------------------
Sweden--2.4%
13,000 AGA AB Series "B" Free 119,786 38
12,100 Astra AB Series "A" Free 312,507 100
19,000 Pharmacia AB Series "A" Free 304,139 97
- - -------------------------------------------------------------------------------------------------------------------------
736,432 235
- - -------------------------------------------------------------------------------------------------------------------------
Singapore--2.3%
25,000 Development Bank of Singapore 257,205 82
55,000 Keppel Corp. 467,769 149
- - -------------------------------------------------------------------------------------------------------------------------
724,974 231
- - -------------------------------------------------------------------------------------------------------------------------
Canada--2.1%
23,000 Canadian Pacific Ltd. 345,000 110
20,000 Westcoast Energy Inc. 317,249 101
- - -------------------------------------------------------------------------------------------------------------------------
662,249 211
- - -------------------------------------------------------------------------------------------------------------------------
Malaysia--2.1%
33,333 Arab Malaysian Finance 86,152 28
98,400 Sime Darby Berhad 225,424 72
23,000 Telekom Malaysia 155,823 50
50,000 Tenaga Nasional Bhd 197,765 63
- - -------------------------------------------------------------------------------------------------------------------------
665,164 213
- - -------------------------------------------------------------------------------------------------------------------------
Mexico--1.8%
20,000 Kimberly Clark Mexican Class "A" 236,750 76
8,000 Telefonos De Mexico S.A. (ADR) Class "L" 328,000 105
- - -------------------------------------------------------------------------------------------------------------------------
564,750 181
- - -------------------------------------------------------------------------------------------------------------------------
New Zealand--1.8%
100,000 Carter Holt Havley Ltd. 204,840 65
60,000 Lion Nathan Ltd. 114,456 37
76,000 Telecom Corp New Zealand Ltd. (Note 5) 248,117 79
- - -------------------------------------------------------------------------------------------------------------------------
567,413 181
- - -------------------------------------------------------------------------------------------------------------------------
Norway--1.8%
10,000 Hafslund Nyco Series "A" Free 213,630 68
31,000 Saga Petroleum Series "A" Free 336,855 108
- - -------------------------------------------------------------------------------------------------------------------------
550,485 176
- - -------------------------------------------------------------------------------------------------------------------------
Denmark--1.7%
8,700 * Tele Danmark A/S Class "B" (ADS) 221,850 71
8,000 Unidanmark A/S Class "A" Regd (3,000 shares 144A Securities-Note 5) 307,615 98
- - -------------------------------------------------------------------------------------------------------------------------
529,465 169
- - -------------------------------------------------------------------------------------------------------------------------
Italy--1.6%
33,000 Istituto Mobiliare Italiano 202,808 65
110,000 Telecom Italia SPA 286,143 91
- - -------------------------------------------------------------------------------------------------------------------------
488,951 156
- - -------------------------------------------------------------------------------------------------------------------------
Argentina--.9%
3,450 Banco De Galicia Y Buenos Aires S.A. Class "B" (ADR) 59,512 19
2,000 Telefonica De Argentina S.A. Class "B" (ADR) 106,000 34
5,000 YPF Soceidad Anonima S.A. Class "D" (ADR) 106,875 34
- - -------------------------------------------------------------------------------------------------------------------------
272,387 87
- - -------------------------------------------------------------------------------------------------------------------------
Chile--.9%
3,500 Compania De Telefonos De Chile S.A. (ADR) 275,625 88
- - -------------------------------------------------------------------------------------------------------------------------
Portugal--.6%
15,000 * Banco Commercial Portugese Regd 195,979 63
- - -------------------------------------------------------------------------------------------------------------------------
Austria-- .4%
1,000 EVN 129,910 41
- - -------------------------------------------------------------------------------------------------------------------------
India--.1%
2,000 ITC Ltd. (GDR) (Note 5) 24,228 8
1,000 * Reliance Industries (GDS) (Note 5) 21,996 7
- - -------------------------------------------------------------------------------------------------------------------------
46,224 15
- - -------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $26,219,411) 28,445,268 9,085
- - -------------------------------------------------------------------------------------------------------------------------
Preferred Stocks--.3%
200 Krones AG (cost $142,932) 112,257 36
- - -------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--5.5%
$1,730M United States Treasury Bill 5.395%, 3/23/95 (cost $1,709,000) 1,709,000 546
- - -------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--.5%
151M Paine Webber Inc., 5.85%,1/3/95 (Collateralized by
U.S. Treasury Notes 4 1/8%, 6/30/95) (cost $151,000) 151,000 48
- - -------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $28,222,343) 97.2% 30,417,525 9,715
Other Assets, Less Liabilities 2.8 890,972 285
- - -------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $31,308,497 $10,000
=========================================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
At December 31, 1994, sector diversification of the portfolio was as follows:
- - ---------------------------------------------------------------------------------------------
Percentage
Sector Diversification of Net Assets Value
- - ---------------------------------------------------------------------------------------------
<S> <C> <C>
Financial Services 12.6% $ 3,945,210
Energy 8.4 2,643,239
Drugs 7.9 2,457,091
Telecommunications 7.8 2,441,279
Electrical Equipment 5.2 1,628,484
Industrial Services 4.6 1,442,415
Food/Beverage/Tobacco 4.6 1,439,653
Electronics/Instruments/Components 3.9 1,220,363
Household Products 3.1 969,875
Insurance 2.7 852,177
Building Materials 2.3 727,741
Transportation 2.3 703,400
Chemicals 2.2 696,826
Retail Trade 2.2 696,440
Conglomerates 2.2 679,579
Real Estate/Construction 2.1 642,637
Media/Cable Television 2.0 640,882
Miscellaneous 2.0 625,693
Machinery/Diversified 2.0 622,227
Automotive 1.6 496,349
Manufacturing/Diversified 1.4 424,592
Electric & Gas Utilities 1.0 324,880
Consumer Durables .9 291,669
Natural Gas .9 290,624
Gaming/Lodging .9 266,656
Retail/General Merchandise .8 254,793
Entertainment .8 243,187
Housing .7 206,973
Utilities .6 197,765
Paper/Forest Products .6 188,438
Consumer Non-Durables .5 169,907
Metals/Miscellaneous .4 126,481
Repurchase Agreements .5 151,000
U.S. Government Obligations 5.5 1,709,000
- - ---------------------------------------------------------------------------------------------
Total Investments 97.2 30,417,525
Other Assets, Less Liabilities 2.8 890,972
- - ---------------------------------------------------------------------------------------------
Net Assets 100.0% $31,308,497
=============================================================================================
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--INVESTMENT GRADE SERIES
December 31, 1994
- - ---------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- - ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--74.4%
Aerospace/Defense--5.1%
$ 100M Allison Engine Co., Inc., 10%, 2003 $ 103,000 $ 89
300M Boeing Co., 6.35%, 2003 265,255 229
250M Lockheed Corp., 6 3/4%, 2003 224,726 194
- - ---------------------------------------------------------------------------------------------------------------
592,981 512
- - ---------------------------------------------------------------------------------------------------------------
Building Materials--.9%
100M Masco Corp., 9%, 2001 102,408 88
- - ---------------------------------------------------------------------------------------------------------------
Computers/Software/Business Equipment--.9%
100M Card Establishment Services, Inc., 10%, 2003 104,500 90
- - ---------------------------------------------------------------------------------------------------------------
Conglomerates--4.4%
300M Hanson Overseas, B.V., 7 3/8%, 2003 281,980 243
250M Tenneco, Inc., 7 7/8%, 2002 239,043 206
- - ---------------------------------------------------------------------------------------------------------------
521,023 449
- - ---------------------------------------------------------------------------------------------------------------
Consumer Products--2.0%
250M Mattel, Inc., 6 3/4%, 2000 230,963 199
- - ---------------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--14.2%
250M Baltimore Gas & Electric Co., 6 1/2%, 2003 221,976 192
200M Carolina Power & Light Co., 7 3/4%, 2003 191,952 165
250M Duke Power Co., 5 7/8%, 2003 212,654 184
200M Kansas Gas & Electric Co., 7.6%, 2003 188,662 163
75M Old Dominion Electric Cooperative, 7.97%, 2002 73,447 63
300M Pennsylvania Power & Light Co., 6 7/8%, 2003 269,736 232
250M Philadelphia Electric Co., 8%, 2002 242,408 209
200M SCE Capital Corp., 7 3/8%, 2003 185,507 160
75M Southwestern Electric Power Co., 7%, 2007 66,707 57
- - ---------------------------------------------------------------------------------------------------------------
1,653,049 1,425
- - ---------------------------------------------------------------------------------------------------------------
Financial Services--13.1%
75M Banc One Corp., 7 1/4%, 2002 69,107 60
40M BankAmerica Corp., 9 1/2%, 2001 41,440 36
200M Barnett Banks, Inc., 8 1/2%, 1999 200,055 172
300M Chemical Bank, Inc., 7%, 2005 264,418 228
200M Citicorp, 8%, 2003 192,232 166
150M First Union Corp., 8 1/8%, 2002 145,675 126
250M Fleet Financial Group, 6 7/8%, 2003 223,559 193
250M Mellon Bank N.A., 6 1/2%, 2005 211,966 183
50M Meridian Bancorp, 7 7/8%, 2002 47,666 41
75M Morgan Guaranty Trust Co., 7 3/8%, 2002 71,691 62
50M Nationsbank Corp., 8 1/8%, 2002 48,351 42
- - ---------------------------------------------------------------------------------------------------------------
1,516,160 1,309
- - ---------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.8%
25M Coca-Cola Enterprises, Inc., 7 7/8%, 2002 24,362 21
200M Philip Morris Cos., Inc., 7 1/8%, 2002 182,111 157
- - ---------------------------------------------------------------------------------------------------------------
206,473 178
- - ---------------------------------------------------------------------------------------------------------------
Healthcare--1.3%
150M Healthtrust, Inc., 8 3/4%, 2005 144,750 125
- - ---------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--7.7%
300M Associates Corp of North America, 7 7/8%, 2001 291,016 251
300M General Electric Capital Corp., 7 7/8%, 2006 290,150 250
300M General Motors Acceptance Corp., 7 1/8%, 1999 282,221 243
25M Heller Financial, Inc., 9 3/8%, 1998 25,642 22
- - ---------------------------------------------------------------------------------------------------------------
889,029 766
- - ---------------------------------------------------------------------------------------------------------------
Oil/Natural Gas--4.2%
250M BP America, Inc., 7 7/8%, 2002 243,918 210
250M Marathon Oil Co., 8 1/2%, 2000 248,871 214
- - ---------------------------------------------------------------------------------------------------------------
492,789 424
- - ---------------------------------------------------------------------------------------------------------------
Paper/Forest Products--4.4%
250M Stone Container Corp., 10 3/4%, 2002 249,375 215
250M Temple Inland, Inc., 9%, 2001 257,754 222
- - ---------------------------------------------------------------------------------------------------------------
507,129 437
- - ---------------------------------------------------------------------------------------------------------------
Retail/General Merchandise--1.9%
250M Penney J.C & Co., 6 1/8%, 2003 216,303 186
- - ---------------------------------------------------------------------------------------------------------------
Technology--4.2%
250M International Business Machines Corp., 6 3/8%, 2000 228,771 197
275M Xerox Corp., 7.15%, 2004 253,314 218
- - ---------------------------------------------------------------------------------------------------------------
482,085 415
- - ---------------------------------------------------------------------------------------------------------------
Telecommunications--1.6%
200M Tele-Communications, Inc., 8 1/4%, 2003 188,625 163
- - ---------------------------------------------------------------------------------------------------------------
Telephone--6.7%
30M GTE Corp., 8.85%, 1998 30,393 26
350M MCI Communication Corp., 7 1/2%, 2004 331,062 285
200M Pacific Bell Telephone Co., 7%, 2004 183,819 158
250M Southern Bell Telephone & Telegraph Co., Inc., 8 1/8%, 2017 235,962 203
- - ---------------------------------------------------------------------------------------------------------------
781,236 672
- - ---------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $9,368,991) 8,629,503 7,438
- - ---------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--12.1%
300M Federal Home Loan Mortgage Corp., 7.88%, 2004 283,406 244
690M United States Treasury Notes, 8 7/8%, 1997 708,220 610
450M United States Treasury Notes, 5 1/4%, 1998 413,930 357
- - ---------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $1,534,779) 1,405,556 1,211
- - ---------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--11.2%
550M Florida Power Corp., 5.95%, 1/6/95 549,546 474
400M Ford Motor Credit Co.,5.82%, 1/13/95 399,224 344
350M General Electric Credit Corp., 5.80%, 1/11/95 349,436 301
- - ---------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,298,206) 1,298,206 1,119
- - ---------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $12,201,976) 97.7% 11,333,265 9,768
Other Assets, Less Liabilities 2.3 269,211 232
- - ---------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $11,602,476 $10,000
===============================================================================================================
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund--UTILITIES INCOME SERIES
December 31, 1994
- - ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--78.6%
Consumer Services--.2%
300 Time Warner Inc. $ 10,538 $ 22
- - ----------------------------------------------------------------------------------------------------------------------
Electric Power--37.7%
3,100 American Electric Power Co. 101,913 216
3,000 Baltimore Gas & Electric Co. 66,375 141
1,800 Boston Edison Co. 42,975 91
2,000 Carolina Power & Light Co. 53,250 113
2,500 Cinergy Corp. 58,437 124
2,000 CMS Energy Corp. 45,750 97
4,000 DPL, Inc. 82,000 174
3,300 DQE, Inc. 97,762 207
3,000 Duke Power Co. 114,375 242
2,500 Eastern Utilities Association 55,000 117
300 Empresa Nacional De Electricidad 12,150 26
3,000 FPL Group, Inc. 105,375 222
2,000 General Public Utilities Corp. 52,500 111
2,500 Illinova Corp. 54,375 115
2,000 New England Electric System 64,250 136
3,000 Nipsco Industries, Inc. 89,250 189
2,000 Northern States Power Co. 88,000 186
5,000 PacifiCorp 90,625 192
1,500 Peco Energy Co. 36,750 78
6,000 Pinnacle West Capital Corp. 118,500 251
1,000 Public Service Co. of Colorado 29,375 62
3,000 * Public Service Co. of New Mexico 39,000 83
1,000 Public Service Enterprise Group Inc. 26,500 56
3,000 Southern Co. 60,000 127
4,000 Teco Energy Inc. 80,500 171
2,000 Texas Utilities Co. 64,000 136
2,000 Wisconsin Energy Corp. 51,750 110
- - ----------------------------------------------------------------------------------------------------------------------
1,780,737 3,773
- - ----------------------------------------------------------------------------------------------------------------------
Energy--6.4%
1,000 Coastal Corp. 25,750 55
2,500 Enron Corp. 76,250 161
1,700 NICOR, Inc. 38,675 82
3,100 Pacific Enterprises 65,875 140
500 Royal Dutch Petroleum Co. 53,750 114
1,400 Sonat, Inc. 39,200 83
- - ----------------------------------------------------------------------------------------------------------------------
299,500 635
- - ----------------------------------------------------------------------------------------------------------------------
Energy Exploration/Production--.4%
1,000 * Seagull Energy Corp. 19,125 41
- - ----------------------------------------------------------------------------------------------------------------------
Natural Gas--7.6%
1,600 Atlanta Gas Light Co. 48,000 102
1,000 Brooklyn Union Gas Co. 22,250 47
500 KN Energy, Inc. 11,875 25
1,200 MCN Corp. 21,750 46
2,400 National Fuel Gas Co. 61,200 130
2,000 New Jersey Resources Corp. 45,250 96
1,500 Piedmont Natural Gas Co., Inc. 28,313 60
2,500 UGI Corp. 50,938 108
1,000 Washington Energy Co. 13,500 29
2,000 Wicor, Inc. 56,750 119
- - ----------------------------------------------------------------------------------------------------------------------
359,826 762
- - ----------------------------------------------------------------------------------------------------------------------
Technology--4.0%
1,500 * Airtouch Communications, Inc. 43,687 93
4,000 MCI Communications Corp. 73,500 156
600 Motorola, Inc. 34,725 74
300 Northern Telecom Ltd. 10,012 21
1,000 Sprint Corp. 27,625 59
- - ----------------------------------------------------------------------------------------------------------------------
189,549 403
- - ----------------------------------------------------------------------------------------------------------------------
Telecommunications--2.6%
1,000 * LDDS Communications, Inc. 19,437 41
1,000 * Mobile Telecommunication Technologies Corp. 19,500 41
2,000 SBC Communications Inc. 80,750 171
- - ----------------------------------------------------------------------------------------------------------------------
119,687 253
- - ----------------------------------------------------------------------------------------------------------------------
Telephone/Utilities--19.7%
3,000 Alltel Corp. 90,375 191
3,500 Ameritech Corp. 141,313 299
2,000 A T & T Corp. 100,500 213
2,000 Bell Atlantic Corp. 99,500 211
2,000 Bellsouth Corp. 108,250 229
3,500 GTE Corp. 106,312 225
1,000 * MFS Communications Co. 32,750 69
2,000 Nynex Corp. 73,500 156
2,000 Pacific Telesis Group 57,000 121
2,000 * Rochester Telephone Corp. 42,250 90
700 Telefonica De Espana (ADR) 24,588 52
1,500 U.S. West, Inc. 53,438 113
- - ----------------------------------------------------------------------------------------------------------------------
929,776 1,969
- - ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $3,843,448) 3,708,738 7,858
- - ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--21.7%
$ 225M Central Louisiana Electric Co. 5.85%, 1/3/95 224,941 476
225M Lubrizol Corp. 6.00%, 1/6/95 224,812 476
225M Oklahoma Gas & Electric Co. 5.90%, 1/11/95 224,631 476
350M Pitney Bowes, Inc. 5.95%, 1/9/95 349,538 741
- - ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,023,922) 1,023,922 2,169
- - ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $4,867,370) 100.3% 4,732,660 10,027
Excess of Liabilities Over Other Assets (.3) (12,633) (27)
- - ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $4,720,027 $10,000
======================================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 1994
- - -------------------------------------------------------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT GROWTH
----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $39,926,978 $3,940,559 $32,330,328 $7,979,586 $31,366,691
=========== ========== =========== ========== ===========
At value (Note 1A) $40,280,776 $3,940,559 $33,303,472 $7,736,109 $32,699,783
Cash (overdraft) 2,309,427 13,442 (194,076) 59,970 22,737
Receivables:
Investment securities sold 2,279,986 -- -- -- --
Interest and dividends 100,719 -- 11,859 103,437 50,432
Trust shares sold 23,848 3,731 98,339 5,604 90,797
Other assets 141 644 578 -- 593
----------- ---------- ----------- ---------- -----------
Total Assets 44,994,897 3,958,376 33,220,172 7,905,120 32,864,342
----------- ---------- ----------- ---------- -----------
Liabilities
Payables:
Investment securities purchased 3,461,850 -- 2,895,677 -- --
Trust shares redeemed 73,721 22,810 55,729 24,865 41,062
Accrued advisory fee 25,655 988 18,376 2,292 20,027
Accrued expenses 9,370 6,023 6,776 -- 6,061
----------- ---------- ----------- ---------- -----------
Total Liabilities 3,570,596 29,821 2,976,558 27,157 67,150
----------- ---------- ----------- ---------- -----------
Net Assets $41,424,301 $3,928,555 $30,243,614 $7,877,963 $32,797,192
=========== ========== =========== ========== ===========
Net Assets Consist of:
Capital paid in $37,581,050 $3,928,555 $27,184,884 $8,402,775 $30,747,717
Undistributed net investment income 568,071 -- 93,202 506,859 176,061
Accumulated net realized gain (loss) on investments
and foreign currencies 2,921,382 -- 1,992,384 (788,194) 540,322
Net unrealized appreciation (depreciation) in value of
investments and foreign currency related transactions 353,798 -- 973,144 (243,477) 1,333,092
----------- ---------- ----------- ---------- -----------
Total $41,424,301 $3,928,555 $30,243,614 $7,877,963 $32,797,192
=========== ========== =========== ========== ===========
Shares of Beneficial Interest Outstanding (Note 2) 3,012,284 3,928,555 1,522,470 811,929 1,960,481
=========== ========== =========== ========== ===========
Net Asset Value, Offering and Redemption Price Per $13.75 $1.00 $19.86 $9.70 $16.73
====== ===== ====== ===== ======
(Net assets divided by shares outstanding)
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (Cont'd)
FIRST INVESTORS LIFE SERIES FUND
December 31, 1994
- - -----------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT UTILITIES
HIGH YIELD SECURITIES GRADE INCOME
----------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $33,143,225 $28,222,343 $12,201,976 $4,867,370
=========== =========== =========== ==========
At value (Note 1A) $31,281,000 $30,417,525 $11,333,265 $4,732,660
Cash (overdraft) 371,436 616,473 72,125 31,020
Receivables:
Investment securities sold -- 166,638 -- --
Interest and dividends 663,762 79,162 196,168 15,541
Trust shares sold 56,743 163,906 45,790 73,286
Other assets 792 132 -- --
----------- ----------- ----------- ----------
Total Assets 32,373,733 31,443,836 11,647,348 4,852,507
----------- ----------- ----------- ----------
Liabilities
Payables:
Investment securities purchased -- 80,676 -- 127,937
Trust shares redeemed 60,005 16,964 39,255 3,085
Accrued advisory fee 19,920 19,192 3,376 1,325
Accrued expenses 9,062 18,507 2,241 133
----------- ----------- ----------- ----------
Total Liabilities 88,987 135,339 44,872 132,480
----------- ----------- ----------- ----------
Net Assets $32,284,746 $31,308,497 $11,602,476 $4,720,027
=========== =========== =========== ==========
Net Assets Consist of:
Capital paid in $32,264,201 $28,230,113 $11,913,551 $4,844,733
Undistributed net investment income 2,971,294 279,003 605,176 110,079
Accumulated net realized gain (loss) on investments
and foreign currencies (1,088,524) 605,023 (47,540) (100,075)
Net unrealized appreciation (depreciation) in value of
investments and foreign currency related transacti (1,862,225) 2,194,358 (868,711) (134,710)
----------- ----------- ----------- ----------
Total $32,284,746 $31,308,497 $11,602,476 $4,720,027
=========== =========== =========== ==========
Shares of Beneficial Interest Outstanding (Note 2) 3,050,689 2,317,817 1,125,041 513,634
=========== =========== =========== ==========
Net Asset Value, Offering and Redemption Price Per $10.58 $13.51 $10.31 $9.19
====== ====== ====== =====
(Net assets divided by shares outstanding)
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 1994
- - ------------------------------------------------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investment Income
Income:
Interest $ 164,430 $167,684 $ 237,179 $557,614
Dividends 739,647 -- 84,495 --
Consent fees -- -- -- --
----------- -------- ----------- ---------
Total income 904,077 167,684 321,674 557,614
----------- -------- ----------- ---------
Expenses:
Advisory fee (Note 6) 286,413 29,282 194,546 58,949
Professional fees 17,084 3,889 12,844 5,373
Reports to shareholders 19,356 2,098 12,822 3,943
Custodian fees 46 4,347 -- --
Other expenses 12,959 1,076 8,260 2,453
----------- -------- ----------- ---------
Total expenses 335,858 40,692 228,472 70,718
Less: Expenses waived or assumed (Note 6) -- 17,258 -- 43,209
----------- -------- ----------- ---------
Expenses--net 335,858 23,434 228,472 27,509
----------- -------- ----------- ---------
Net investment income 568,219 144,250 93,202 530,105
----------- -------- ----------- ---------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currencies (Note 3):
Net realized gain (loss) on investments 2,931,871 61 1,992,419 (786,678)
and foreign currencies
Net unrealized depreciation of investments
and foreign currency related transactions (4,069,423) -- (2,687,366) (75,120)
----------- -------- ----------- ---------
Net gain (loss) on investments (1,137,552) 61 (694,947) (861,798)
----------- -------- ----------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (569,333) $144,311 $ (601,745) $(331,693)
=========== ======== =========== =========
+Net of $37,429 foreign taxes withheld.
(a)Includes $3,391 of net realized foreign
currency gains
(b)Includes $824 of net unrealized depreciation
on foreign currency transactions
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Operations (cont'd)
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 1994
- - -----------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT UTILITIES
GROWTH HIGH YIELD SECURITIES GRADE INCOME
----------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Interest $ 65,229 $3,159,200 $ 96,348 $ 770,466 $ 12,334
Dividends 374,665 59,788 512,398+ -- 107,596
Consent fees -- 30,500 -- -- --
----------- ----------- ----------- ----------- ---------
Total income 439,894 3,249,488 608,746 770,466 119,930
----------- ----------- ----------- ----------- ---------
Expenses:
Advisory fee (Note 6) 218,813 236,209 202,739 82,832 20,935
Professional fees 13,337 15,278 12,390 6,335 2,841
Reports to shareholders 14,711 15,185 14,588 5,672 848
Custodian fees 8,121 -- 42,160 430 672
Other expenses 8,851 11,425 5,763 6,161 1,129
----------- ----------- ----------- ----------- ---------
Total expenses 263,833 278,097 277,640 101,430 26,425
Less: Expenses waived or assumed (Note 6) -- -- -- 60,546 21,652
----------- ----------- ----------- ----------- ---------
Expenses--net 263,833 278,097 277,640 40,884 4,773
----------- ----------- ----------- ----------- ---------
Net investment income 176,061 2,971,391 331,106 729,582 115,157
----------- ----------- ----------- ----------- ---------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currencies (Note 3):
Net realized gain (loss) on investments
and foreign currencies 555,580 (106,914) 913,209(a) (47,540) (100,075)
Net unrealized depreciation of investments and
currency related transactions foreign (1,490,527) (3,352,582) (1,619,867)(b) (1,054,894) (132,614)
----------- ----------- ----------- ----------- ---------
Net gain (loss) on investments (934,947) (3,459,496) (706,658) (1,102,434) (232,689)
----------- ----------- ----------- ----------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (758,886) $ (488,105) $ (375,552) $ (372,852) $(117,532)
=========== =========== =========== =========== =========
+Net of $37,429 foreign taxes withheld.
(a)Includes $3,391 of net realized
foreign currency gains
(b)Includes $824 of net unrealized depreciation
on foreign currency transactions
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- - -----------------------------------------------------------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
-------------------------- -------------------------
Year Ended December 31, 1994 1993 1994 1993
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 568,219 $ 362,657 $ 144,250 $ 175,573
Net realized gain (loss) on investments
and foreign currencies 2,931,871 440,707 61 81
Net unrealized appreciation (depreciation)
of investments and foreign currency
related transactions (4,069,423) 1,544,756 -- --
----------- ----------- ---------- -----------
Total increase (decrease) in net assets
resulting from operations (569,333) 2,348,120 144,311 175,654
----------- ----------- ---------- -----------
Distributions to Shareholders from:
Net investment income (204,030) (316,583) (144,311) (175,573)
Net realized gain on investments (416,537) -- -- (81)
----------- ----------- ---------- -----------
Total distributions (620,567) (316,583) (144,311) (175,654)
----------- ----------- ---------- -----------
Trust Share Transactions (a)
Issued 9,253,157 9,385,494 828,637 430,084
Issued on reinvestments 620,566 316,582 144,311 175,653
Redeemed (1,289,081) (1,468,952) (1,286,977) (4,703,726)
----------- ----------- ---------- -----------
Net increase (decrease) from trust share
transactions 8,584,642 8,233,124 (314,029) (4,097,989)
----------- ----------- ---------- -----------
Total increase (decrease) 7,394,742 10,264,661 (314,029) (4,097,989)
Net Assets
Beginning of year 34,029,559 23,764,898 4,242,584 8,340,573
----------- ----------- ---------- -----------
End of year+ $41,424,301 $34,029,559 $3,928,555 $ 4,242,584
=========== =========== ========== ===========
+Includes undistributed net investment
income of $ 568,071 $ 203,882 $ -- $ --
=========== =========== ========== ===========
(a)Trust Shares Issued and Redeemed
Issued 664,327 683,578 828,637 430,084
Issued on reinvestments 45,969 22,751 144,311 175,653
Redeemed (92,113) (107,325) (1,286,977) (4,703,726)
----------- ----------- ---------- -----------
Increase (decrease) in shares 618,183 599,004 (314,029) (4,097,989)
=========== =========== ========== ===========
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (CONT'D)
FIRST INVESTORS LIFE SERIES FUND
- - ----------------------------------------------------------------------------------------------------------
DISCOVERY GOVERNMENT
-------------------------- ------------------------
Year Ended December 31, 1994 1993 1994 1993
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 93,202 $ (4,695) $ 530,105 $ 457,094
Net realized gain (loss) on investments
and foreign currencies 1,992,419 1,124,458 (786,678) 137,176
Net unrealized appreciation (depreciation)
of investments and foreign currency
related transactions (2,687,366) 2,129,876 (75,120) (174,980)
----------- ----------- ---------- -----------
Total increase (decrease) in net assets
resulting from operations (601,745) 3,249,639 (331,693) 419,290
----------- ----------- ---------- -----------
Distributions to Shareholders from:
Net investment income -- -- (84,143) (460,450)
Net realized gain on investments (1,014,247) (630,159) (138,692) (99,213)
----------- ----------- ---------- -----------
Total distributions (1,014,247) (630,159) (222,835) (559,663)
----------- ----------- ---------- -----------
Trust Share Transactions (a)
Issued 10,106,014 7,831,209 1,488,126 3,687,209
Issued on reinvestments 1,014,247 630,159 222,836 559,663
Redeemed (481,564) (386,765) (1,512,005) (936,521)
----------- ----------- ---------- -----------
Net increase (decrease) from trust share
transactions 10,638,697 8,074,603 198,957 3,310,351
----------- ----------- ---------- -----------
Total increase (decrease) 9,022,705 10,694,083 (355,571) 3,169,978
Net Assets
Beginning of year 21,220,909 10,526,826 8,233,534 5,063,556
----------- ----------- ---------- -----------
End of year+ $30,243,614 $21,220,909 $7,877,963 $8,233,534
=========== =========== ========== ==========
+Includes undistributed net investment
income of $ 93,202 $ -- $ 506,859 $ 60,897
=========== =========== ========== ==========
(a)Trust Shares Issued and Redeemed
Issued 501,020 406,157 151,268 350,524
Issued on reinvestments 51,897 34,131 22,959 53,327
Redeemed (24,001) (20,400) (152,565) (88,958)
----------- ----------- ---------- -----------
Increase (decrease) in shares 528,916 419,888 21,662 314,893
=========== =========== ========== ==========
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (CONT'D)
FIRST INVESTORS LIFE SERIES FUND
- - ----------------------------------------------------------------------------------------------------------
GROWTH HYGH YIELD
-------------------------- -------------------------
Year Ended December 31, 1994 1993 1994 1993
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 176,061 $ 89,167 $ 2,971,391 $ 2,596,525
Net realized gain (loss) on investments
and foreign currencies 555,580 610,321 (106,914) 1,274,083
Net unrealized appreciation (depreciation)
of investments and foreign currency
related transactions (1,490,527) 615,307 (3,352,582) 678,815
----------- ----------- ----------- -----------
Total increase (decrease) in net assets
resulting from operations (758,886) 1,314,795 (488,105) 4,549,423
----------- ----------- ----------- -----------
Distributions to Shareholders from:
Net investment income -- (105,229) (1,135,309) (2,797,473)
Net realized gain on investments (336,304) (119,293) -- --
----------- ----------- ----------- -----------
Total distributions (336,304) (224,522) (1,135,309) (2,797,473)
----------- ----------- ----------- -----------
Trust Share Transactions (a)
Issued 8,593,462 8,646,886 4,464,152 4,827,225
Issued on reinvestments 336,304 224,522 1,135,309 2,797,473
Redeemed (695,724) (688,752) (2,284,666) (3,323,008)
----------- ----------- ----------- -----------
Net increase (decrease) from trust share
transactions 8,234,042 8,182,656 3,314,795 4,301,690
----------- ----------- ----------- -----------
Total increase (decrease) 7,138,852 9,272,929 1,691,381 6,053,640
Net Assets
Beginning of year 25,658,340 16,385,411 30,593,365 24,539,725
----------- ----------- ----------- -----------
End of year+ $32,797,192 $25,658,340 $32,284,746 $30,593,365
=========== =========== =========== ===========
+Includes undistributed net investment
income of $ 176,061 $ -- $ 2,971,294 $ 1,135,212
=========== =========== =========== ===========
(a)Trust Shares Issued and Redeemed
Issued 510,485 513,769 416,564 441,212
Issued on reinvestments 20,645 13,153 107,326 254,481
Redeemed (41,089) (41,155) (214,630) (304,969)
----------- ----------- ----------- -----------
Increase (decrease) in shares 490,041 485,767 309,260 390,724
=========== =========== =========== ===========
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (CONT'D)
FIRST INVESTORS LIFE SERIES FUND
- - ----------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES INVESTMENT GRADE
-------------------------- -------------------------
Year Ended December 31, 1994 1993 1994 1993
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 331,106 $ 145,789 $ 729,582 $ 468,954
Net realized gain (loss) on investments
and foreign currencies 913,209 (2,151) (47,540) 90,556
Net unrealized appreciation (depreciation)
of investments and foreign currency
related transactions (1,619,867) 3,063,342 (1,054,894) 104,080
----------- ----------- ----------- -----------
Total increase (decrease) in net assets
resulting from operations (375,552) 3,206,980 (372,852) 663,590
----------- ----------- ----------- -----------
Distributions to Shareholders from:
Net investment income (87,059) (168,456) (154,441) (479,485)
Net realized gain on investments -- -- (90,556) (5,447)
----------- ----------- ----------- -----------
Total distributions (87,059) (168,456) (244,997) (484,932)
----------- ----------- ----------- -----------
Trust Share Transactions (a)
Issued 11,075,210 6,412,595 2,762,399 5,237,027
Issued on reinvestments 87,058 168,456 244,996 484,931
Redeemed (399,664) (857,140) (997,487) (397,160)
----------- ----------- ----------- -----------
Net increase (decrease) from trust share
transactions 10,762,604 5,723,911 2,009,908 5,324,798
----------- ----------- ----------- -----------
Total increase (decrease) 10,299,993 8,762,435 1,392,059 5,503,456
Net Assets
Beginning of year 21,008,504 12,246,069 10,210,417 4,706,961
----------- ----------- ----------- -----------
End of year+ $31,308,497 $21,008,504 $11,602,476 $10,210,417
=========== =========== =========== ===========
+Includes undistributed net investment
income of $ 279,003 $ 47,517 $ 605,176 $ 30,035
=========== =========== =========== ===========
(a)Trust Shares Issued and Redeemed
Issued 811,007 512,067 264,613 477,794
Issued on reinvestments 6,642 13,339 24,055 44,044
Redeemed (29,290) (72,804) (96,249) (36,013)
----------- ----------- ----------- -----------
Increase (decrease) in shares 788,359 452,602 192,419 485,825
=========== =========== =========== ===========
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (CONT'D)
FIRST INVESTORS LIFE SERIES FUND
- - ------------------------------------------------------------------------------
UTILITIES INCOME
-------------------------
Year Ended December 31, 1994 1993*
---------- --------
<S> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 115,157 $ 457
Net realized gain (loss) on investments
and foreign currencies (100,075) --
Net unrealized appreciation (depreciation)
of investments and foreign currency
related transactions (132,614) (2,096)
---------- --------
Total increase (decrease) in net assets
resulting from operations (117,532) (1,639)
---------- --------
Distributions to Shareholders from:
Net investment income (5,535) --
Net realized gain on investments -- --
---------- --------
Total distributions (5,535) --
---------- --------
Trust Share Transactions (a)
Issued 4,449,169 495,195
Issued on reinvestments 5,534 --
Redeemed (105,265) --
---------- --------
Net increase (decrease) from trust share 4,349,438 495,195
---------- --------
Total increase (decrease) 4,226,371 493,556
Net Assets
Beginning of year 493,656 100
---------- --------
End of year+ $4,720,027 $493,656
========== ========
+Includes undistributed net investment
income of $ 110,079 $ 457
========== ========
(a)Trust Shares Issued and Redeemed
Issued 474,683 49,647
Issued on reinvestments 600 --
Redeemed (11,306) --
---------- --------
Increase (decrease) in shares 463,977 49,647
========== ========
</TABLE>
See notes to financial statements
Notes to Financial Statements
FIRST INVESTORS LIFE SERIES FUND
1. Significant Accounting Policies--The Fund, a Massachusetts business
trust, is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Fund operates
as a series fund, issuing shares of beneficial interest in the Blue
Chip, Cash Management, Discovery, Government, Growth, High Yield,
International Securities, Investment Grade and Utilities Income Series
and accounts separately for the assets, liabilities and operations of
each Series.
A. Security Valuation--A security listed or traded on an exchange or
the NASDAQ National Market System is valued at its last sale price on
the exchange or system where the security is principally traded, and
lacking any sales, the security is valued at the mean between the
closing bid and asked prices. Securities traded in the over-the-counter
markets are valued at the mean between the last bid and asked prices.
For the Government, High Yield and Investment Grade Series, each
security traded in the over-the-counter market (including securities
listed on exchanges or systems whose primary market is believed to be
over-the-counter) is valued at the mean between the last bid and asked
prices based upon quotes furnished by a market maker for such
securities. The High Yield, International Securities and Investment
Grade Series may use prices provided by a pricing service. The pricing
service uses quotations obtained from investment dealers or brokers,
information with respect to market transactions in comparable
securities and other available information in determining value.
Securities for which market quotations are not readily available and
any other assets are valued on a consistent basis at fair value as
determined in good faith by or under the supervision of the Fund's
officers in the manner specifically authorized by the Trustees of the
Fund.
The investments in the Cash Management Series, when purchased at a
discount, are valued at amortized cost and when purchased at face
value, are valued at cost plus accrued interest.
B. Federal Income Taxes--No provision has been made for federal income
taxes on net income or capital gains since it is the policy of the Fund
to continue to comply with the special provisions of the Internal
Revenue Code applicable to investment companies, and to make sufficient
distributions of income and capital gains (in excess of any available
capital loss carryovers) to relieve it from all, or substantially all,
federal income taxes.
At December 31, 1994, capital loss carryovers were as follows:
<TABLE>
<CAPTION>
Year Capital Loss Carryovers Expire
-------------------------------------
Series Total 1998 1999 2002
- - ------ ---------- -------- -------- --------
<S> <C> <C> <C> <C>
GOVERNMENT $ 788,194 $ -- $ -- $788,194
HIGH YIELD 1,088,524 625,684 355,926 106,914
INVESTMENT GRADE 47,540 -- -- 47,540
UTILITIES INCOME 100,075 -- -- 100,075
</TABLE>
C. Foreign Currency Translations--For valuation purposes, quotations of
foreign securities in foreign currency are translated to U.S. dollar
equivalents using the daily rate of exchange. Purchases and sales of
investment securities, dividend income and certain expenses are
translated to U.S. dollars at the rates of exchange prevailing on the
respective dates of such transactions.
The fund does not isolate that portion of gains and lossses on
investments which is due to changes in foreign exchange rates from that
which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains
and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses arising from the sales of
foreign currency, and gains and losses between the ex and payment dates
on dividends and foreign withholding taxes.
D. Distributions to Shareholders--Distributions to shareholders from
net investment income and net realized gains are declared and paid
annually on all series except for the Cash Management Series which
declares daily and pays monthly. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments for foreign
currency transactions, capital loss carryforwards and deferral of wash
sales.
E. Expense Allocation--Expenses directly charged or attributable to a
Series are paid from the assets of that Series. General expenses of the
Fund are allocated among and charged to the assets of each Series on a
fair and equitable basis, which may be based on the relative assets of
each Series or the nature of the services performed and relative
applicability to each Series.
F. Other--Security transactions are accounted for on the date the
securities are purchased or sold. Cost is determined and gains and
losses are based, on the identified cost basis for securities and the
amortized cost basis for short-term securities, for both financial
statement and federal income tax purposes. Dividend income is recorded
on the ex-dividend date, except that certain dividends from foreign
securities are recorded on the ex-dividend date or as soon thereafter
as the Fund is informed of the dividend. Interest income and estimated
expenses are accrued daily.
2. Trust Shares--The Declaration of Trust permits the issuance of an
unlimited number of shares of beneficial interest, of one or more
Series. Shares in the Fund are acquired through the purchase of
variable annuity or variable life insurance contracts sold by First
Investors Life Insurance Company.
3. Purchases and Sales of Securities--For the year ended December 31,
1994, purchases and sales of securities and long-term U.S. Government
obligations, excluding foreign currencies, short-term corporate notes
and repurchase agreements were as follows:
<TABLE>
<CAPTION>
Long-Term
Securities U.S. Government Obligations
------------------------------- ------------------------------
Cost Proceeds Cost Proceeds
of of of of
Series Purchases Sales Purchases Sales
- - ------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
BLUE CHIP $35,397,341 $28,869,597 $ -- $ --
DISCOVERY 20,142,942 11,196,978 -- --
GOVERNMENT -- -- 31,846,462 33,631,190
GROWTH 18,359,605 10,960,242 -- --
HIGH YIELD 20,506,451 14,460,159 -- --
INTERNATIONAL SECURITIES 18,616,178 8,882,379 -- --
INVESTMENT GRADE 3,105,346 1,213,788 300,000 195,326
UTILITIES INCOME 4,225,435 703,164 -- --
</TABLE>
At December 31, 1994, aggregate cost and net unrealized appreciation
(depreciation) of securities for federal income tax purposes were as
follows:
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Aggregate Unrealized Unrealized Appreciation
Series Cost Appreciation Depreciation (Depreciation)
- - ------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
BLUE CHIP $39,926,978 $1,630,385 $1,276,587 $353,798
CASH MANAGEMENT 3,940,559 -- -- --
DISCOVERY 32,330,328 3,955,011 2,981,867 973,144
GOVERNMENT 7,979,586 -- 243,477 (243,477)
GROWTH 31,416,730 3,240,315 1,957,262 1,283,053
HIGH YIELD 33,143,225 198,189 2,060,414 (1,862,225)
INTERNATIONAL SECURITIES 28,222,343 3,036,344 841,162 2,195,182
INVESTMENT GRADE 12,201,976 10,426 879,137 (868,711)
UTILITIES INCOME 4,867,370 52,521 187,231 (134,710)
</TABLE>
4. Restricted Securities--On April 23, 1992, the High Yield Series
purchased 1,620 shares of common stock of Divi Hotels, Inc. at a cost
of $35,810. This security, which was acquired through a private
placement, may not be sold or transferred without prior registration
under the Securities Act of 1933 or pursuant to an exemption therefrom.
If and when the High Yield Series sells this security, additional costs
for registration may be required. Restricted securities are valued
pursuant to procedures established by the Life Series Fund's Trustees
which include using data provided by certain dealers that participate
in any secondary market that may exist for these securities. At
December 31, 1994, the value of the above restricted security was $122.
5. Rule 144A Securities--Under Rule 144A, certain restricted securities
are exempt from the registration requirements of the Securities Act of
1933 and may only be sold to qualified institutional investors. At
December 31, 1994, the Discovery, High Yield and International Series
held 144A securities with aggregate values of $582,708, $638,800 and
$536,178, respectively. These securities represent 1.9%, 2.0% and 1.7%,
respectively of the Series' net assets and are valued as set forth in
Note 1A.
6. Advisory Fee and Other Transactions With Affiliates (All Series)--
Certain officers and trustees of the Fund are officers and directors of
its investment adviser, First Investors Management Company,
Inc.("FIMCO") and/or its transfer agent, Administrative Data Management
Corp. Officers and trustees of the Fund received no remuneration from
the Fund for serving in such capacities. Their remuneration (together
with certain other expenses of the Fund) is paid by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO an
annual fee, payable monthly, at the rate of .75% on the first $250
million of each Series' average daily net assets, declining by .03% on
each $250 million thereafter, down to .66% on average daily net assets
over $750 million. For the year ended December 31, 1994, total advisory
fees were $1,330,718 of which $109,038 was waived by the investment
adviser. In addition, $33,627 of expenses were assumed by FIMCO.
Pursuant to certain state regulations, FIMCO has agreed to reimburse a
Series if and to the extent that any Series' aggregate operating
expenses, including the advisory fee but generally excluding interest,
taxes, brokerage commissions and extraordinary expenses, exceed any
limitation on expenses applicable to the Series in those states (unless
waivers of such limitations have been obtained). The amount of any such
reimbursement is limited to the yearly advisory fee. For the year ended
December 31, 1994, no reimbursement was required pursuant to these
provisions.
Wellington Management Company serves as investment subadviser to the
Growth Series and the International Securities Series. The subadviser
is paid by FIMCO and not by the Fund.
7. Commencement of Operations--The Utilities Income Series commenced
operations in November 1993 following the sale of 10 shares of
beneficial interest to First Investors Life Insurance Company for $100.
8. Concentration of Credit Risk--The High Yield Series' investments in
high yield securities, whether rated or unrated, may be considered
speculative and subject to greater market fluctuations and risks of
loss of income and principal than lower yielding, higher rated, fixed
income securities. The risk of loss due to default by the issuer may be
significantly greater for the holders of high yielding securities,
because such securities are generally unsecured and are often
subordinated to other creditors of the issuer. At December 31, 1994,
the High Yield Series held one defaulted security with a value of
$336,000, representing less than 1.0% of the Series' net assets.
The Utilities Income Series invests in securities issued by companies
primarily engaged in the public utilities industries. As a result,
there are certain credit risks which may subject the Series more
significantly to economic changes occurring in the public utilities
industry.
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data
for a trust share outstanding, total return,
ratios to average net assets and other supplemental data for each
period indicated.
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------
PER SHARE DATA
- - ---------------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
-------------------------------------------------------------
Net Asset
Value Net Realized Total
---------- Net and Unrealized from Net Net
Beginning Investment Gain (Loss) Investment Investment Realized Total
of Period Income+ on Investments Operations Income Gains Distributions
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP
3/8/90* to 12/31/90 $10.00 $.07 ($.02) $ .05 $ -- $ -- $ --
1991 10.05 .12 2.50 2.62 .05 -- .05
1992 12.62 .16 .67 .83 .21 -- .21
1993 13.24 .15 .97 1.12 .15 -- .15
1994 14.21 .18 (.39) (.21) .08 .17 .25
CASH MANAGEMENT**
11/9/87* to 12/31/87 1.00 .002 -- .002 .002 -- .002
1988 1.00 .048 -- .048 .048 -- .048
1989 1.00 .075 -- .075 .075 -- .075
1990 1.00 .072 -- .072 .072 -- .072
1991 1.00 .054 -- .054 .054 -- .054
1992 1.00 .029 -- .029 .029 -- .029
1993 1.00 .027 -- .027 .027 -- .027
1994 1.00 .037 -- .037 .037 -- .037
DISCOVERY
11/9/87* to 12/31/87 10.00 .02 -- .02 -- -- --
1988 10.02 .26 .10 .36 -- -- --
1989 10.38 .19 2.19 2.38 .27 .09 .36
1990 12.40 .14 (.78) (.64) .15 .90 1.05
1991 10.71 .07 5.42 5.49 .18 -- .18
1992 16.02 -- 2.51 2.51 .03 .15 .18
1993 18.35 -- 3.92 3.92 -- .91 .91
1994 21.36 .06 (.62) (.56) -- .94 .94
GOVERNMENT
1/7/92*to 12/31/92 10.00 .47 .51 .98 .33 -- .33
1993 10.65 .64 .02 .66 .70 .19 .89
1994 10.42 .79 (1.21) (.42) .25 .05 .30
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONT'D)
- - -------------------------------------------------------------------------------------------------------------------
RATIO/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------
Ratio to Average Net Assets
Net Asset Ratio to Average Before Expenses
Value Net Assets+ Waived or Assumed
---------- Total Net Assets --------------------------------------------------- Portfolio
End of Return++ End of Period Net Net Investment Turnover
Period (%) (in thousands)Expenses (%) Income(%) Expenses (%) Income(%) Rate(%)
- - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP
3/8/90* to 12/31/90 $10.05 .61(a) $ 3,656 -- 2.95(a) 1.92(a) 1.03(a) 15
1991 12.62 26.17 13,142 1.00 1.88 1.55 1.34 21
1992 13.24 6.67 23,765 .79 1.66 .86 1.60 40
1993 14.21 8.51 34,030 .88 1.27 N/A N/A 37
1994 13.75 (1.45) 41,424 .88 1.49 N/A N/A 82
CASH MANAGEMENT**
11/9/87* to 12/31/87 1.00 5.05(a) 17 -- -- -- -- N/A
1988 1.00 4.94 33 -- 4.99 7.68 (2.69) N/A
1989 1.00 7.79 2,210 -- 7.84 1.35 6.49 N/A
1990 1.00 7.49 8,203 .39 6.90 1.15 6.15 N/A
1991 1.00 5.71 9,719 .57 5.39 .93 5.03 N/A
1992 1.00 3.02 8,341 .79 2.99 .98 2.81 N/A
1993 1.00 2.70 4,243 .60 2.67 1.05 2.22 N/A
1994 1.00 3.77 3,929 .60 3.69 1.04 3.25 N/A
DISCOVERY
11/9/87* to 12/31/87 10.02 1.38(a) 18 -- -- -- -- 0
1988 10.38 3.59 125 -- 3.80 3.10 .70 158
1989 12.40 23.62 283 -- 2.43 4.78 (2.35) 231
1990 10.71 (5.47) 960 -- 2.97 2.68 .28 104
1991 16.02 51.73 4,661 .70 .48 1.49 (.31) 93
1992 18.35 15.74 10,527 .91 .02 1.05 (.12) 91
1993 21.36 22.20 21,221 .87 (.03) N/A N/A 69
1994 19.86 (2.53) 30,244 .88 .36 N/A N/A 53
GOVERNMENT
1/7/92*to 12/31/92 10.65 9.95(a) 5,064 .03(a) 6.64(a) .89(a) 5.79(a) 301
1993 10.42 6.35 8,234 .35 6.60 .84 6.11 525
1994 9.70 (4.10) 7,878 .35 6.74 .90 6.19 457
* Commencement of operations
** Adjusted to reflect ten-for-one stock split on May 1, 1991.
+ Some or all expenses have been waived or assumed by the investment
adviser from commencements of operations through December 31, 1994 (See Note 6).
++ The effect of fees and changes incurred at the separate account
level are not reflected in these performance figures.
(a) Annualized
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data
for a trust share outstanding, total return,
ratios to average net assets and other supplemental data for each
period indicated.
- - -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
-------------------------------------------------------------
Net Asset Net
Value Realized and Total
---------- Net Unrealized from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income+ Investments Operations Income Gains Distributions
- - -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
GROWTH
11/9/87* to 12/31/87 $10.00 $ .02 $ -- $ .02 $ -- $ -- $ --
1988 10.02 .26 .51 .77 -- -- --
1989 10.79 .02 2.51 2.53 .18 .12 .30
1990 13.02 .16 (.55) (.39) .06 -- .06
1991 12.57 .17 4.15 4.32 .18 -- .18
1992 16.71 .08 1.41 1.49 .18 1.38 1.56
1993 16.64 .07 .93 1.00 .09 .10 .19
1994 17.45 .09 (.60) (.51) -- .21 .21
HIGH YIELD
11/9/87* to 12/31/87 10.00 -- -- -- -- -- --
1988 10.00 .74 .82 1.56 -- -- --
1989 11.56 .74 (.92) (.18) .56 .11 .67
1990 10.71 1.08 (1.79) (.71) .83 -- .83
1991 9.17 1.16 1.66 2.82 1.18 -- 1.18
1992 10.81 1.11 .21 1.32 1.69 -- 1.69
1993 10.44 .96 .88 1.84 1.12 -- 1.12
1994 11.16 .87 (1.14) (.27) .31 -- .31
INTERNATIONAL SECURITIES
4/16/90* to 12/31/90 10.00 .03 .34 .37 -- -- --
1991 10.37 .09 1.49 1.58 .03 .05 .08
1992 11.87 .15 (.28) (.13) .15 .22 .37
1993 11.37 .10 2.41 2.51 .14 -- .14
1994 13.74 .14 (.32) (.18) .05 -- .05
INVESTMENT GRADE
1/7/92*to 12/31/92 10.00 .43 .44 .87 .34 -- .34
1993 10.53 .65 .49 1.14 .71 .01 .72
1994 10.95 .67 (1.06) (.39) .16 .09 .25
UTILITIES INCOME
11/15/93*to 12/31/93 10.00 .01 (.07) (.06) -- -- --
1994 9.94 .24 (.96) (.72) .03 -- .03
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (cont'd)
- - ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- - ---------------------------------------------------------------------------------------------------------------------
Ratio to Average Net
Net Assets
Net Asset Ratio to Average Before Expenses
Value Net Assets+ Waived or Assumed
---------- Total Net Assets ---------------------------------------------- Portfolio
End of Return++ End of Period Net Net Investme Turnover
Period (%) (in thousands) Expenses(%) Income(%) Expenses(%) Income(%) Rate(%)
- - ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH
11/9/87* to 12/31/87 $10.02 1.38(a) $ 18 -- -- -- -- 0
1988 10.79 7.68 38 -- 3.20 8.70 (5.50) 31
1989 13.02 24.00 570 -- 2.91 5.21 (2.30) 24
1990 12.57 (2.99) 2,366 -- 3.03 1.64 1.40 28
1991 16.71 34.68 7,743 .69 1.21 1.34 .55 148
1992 16.64 9.78 16,385 .76 .75 1.20 .30 45
1993 17.45 6.00 25,658 .91 .43 N/A N/A 51
1994 16.73 (2.87) 32,797 .90 .60 N/A N/A 40
HIGH YIELD
11/9/87* to 12/31/87 10 .00 88 -- -- -- -- 0
1988 11.56 15.60 4,564 -- 13.22 1.32 11.90 46
1989 10.71 (1.76) 14,354 -- 12.05 .88 11.17 22
1990 9.17 (5.77) 18,331 -- 13.21 .91 12.30 35
1991 10.81 33.96 23,634 .53 11.95 .89 11.60 40
1992 10.44 13.15 24,540 .91 10.48 .96 10.43 84
1993 11.16 18.16 30,593 .91 9.49 N/A N/A 96
1994 10.58 (1.56) 32,285 .88 9.43 N/A N/A 50
INTERNATIONAL SECURITIES
4/16/90* to 12/31/90 10.37 5.21(a) 3,946 -- .99(a) 3.43(a) (2.43)(a) 29
1991 11.87 15.24 8,653 1.70 .75 2.27 .18 70
1992 11.37 (1.13) 12,246 1.03 1.55 1.38 1.20 36
1993 13.74 22.17 21,009 1.14 .97 N/A N/A 37
1994 13.51 (1.29) 31,308 1.03 1.22 N/A N/A 36
INVESTMENT GRADE
1/7/92*to 12/31/92 10.53 8.91(a) 4,707 .23(a) 6.16(a) .93(a) 5.46(a) 72
1993 10.95 10.93 10,210 .35 6.32 .85 5.82 64
1994 10.31 (3.53) 11,602 .37 6.61 .92 6.06 15
UTILITIES INCOME
11/15/93*to 12/31/93 9.94 (4.66)(a) 494 -- 1.46(a) 3.99(a) (2.52)(a) 0
1994 9.19 (7.24) 4,720 .17 4.13 .95 3.35 31
*Commencement of operations
+Some or all expenses have been waived or assumed by the investment
adviser from commencement of operations through
December 31, 1994 (See Note 6).
++The effect of fees and charges incurred at the separate account level
are not reflected in these performance figures.
(a)Annualized
</TABLE>
Independent Auditor's Report
To the Shareholders and Trustees of
First Investors Life Series Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the nine series comprising
First Investors Life Series Fund as of December 31, 1994, the related
statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then
ended, and financial highlights for the periods indicated thereon.
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1994, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of each of the nine series comprising First
Investors Life Series Fund as of December 31, 1994, and the results of
their operations, changes in their net assets and financial highlights
for each of the respective periods presented, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1995
(This page has been left blank intentionally.)
FIRST INVESTORS LIFE SERIES FUND
Trustees
- - --------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
F. William Ortman, Jr.
Rex R. Reed
Herbert Rubinstein
John T. Sullivan
Robert F. Wentworth
Officers
- - --------
Glenn O. Head
President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
FIRST INVESTORS LIFE SERIES FUND
Shareholder Information
- - -----------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Subadviser (Growth Series and International
Securities Series Only)
Wellington Management Company
75 State Street
Boston, MA 02109
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Custodian (International Securities Series Only)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data
Management Corp.
10 Woodbridge Center Drive
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart
1800 M Street, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
For more complete information about First Investors Life Series Fund,
including charges and expenses, you may obtain a prospectus from your
registered representative or by calling 1-800-423-4026. Read it
carefully before you invest or send money.
FIRST INVESTORS
FIRST INVESTORS LIFE SERIES FUND
95 WALL STREET
NEW YORK, NY 10005
First Investors LOGO
LOGO is described as follows: The arabic numeral one separated into seven
vertical segments followed by the words "First Investors".
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
LIFE310
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" in a box
to the right of a circle containing the words "MAILED FROM
ZIP CODE 11201" appears to the right of the above language in the
printed piece.
Vertically reading from bottom to top in center of the page the words
"FIRST INVESTORS" appear in the printed piece.
FIRST
INVESTORS
LIFE
SERIES
FUND
Blue Chip Series
Cash Managment Series
Discovery Series
Government Series
Growth Series
High Yield Series
International Securities Series
Investment Grade Series
Utilities Income Series
ANNUAL
REPORT
DECEMBER 31, 1994
