<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--BLUE CHIP SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks also benefitted from falling interest rates and continued
strong earnings growth. The financial markets, in general, reacted positively to
legislation to eliminate the Federal budget deficit over the next seven years.
Large capitalization equities performed better than small capitalization
equities. Growth stocks as a group outperformed value stocks, as concerns about
an economic slowdown increased. Technology stocks were one of the better
performers in the first half of 1995. The semiconductor industry remains in a
strong expansion mode; demand from the computer, telecommunications and consumer
goods sectors continues to be very strong. During the first half of 1995, the
Blue Chip Series gained 17.90% on a net asset value basis. During this period,
the Blue Chip Series paid dividends of 19 cents per share from net investment
income and made a capital gains distribution of 95 cents per share.
Our strategy of being sector neutral with a broad representation of securities
showed good results in the first six months. The key to good performance this
year has been careful stock selection. Focusing on growth stocks rather than
value stocks also helped performance. Securities with good earnings gains were
well rewarded by the investment community. Another factor which has proven
beneficial is a focus on stocks with international exposure. Companies with
significant international exposure showed strong price increases in the first
half as investors' fear of an economic slowdown in the domestic economy
heightened. Financial stocks also did quite well as interest rates declined.
Among the better performers in the Series were Federal National Mortgage
Association, a government sponsored mortgage originator, and Citicorp, a money
center bank that benefitted from its large international banking exposure.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Patricia Poitra
Director of Equities
and Portfolio Manager
July 31, 1995
1
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--CASH MANAGEMENT SERIES
Dear Investor:
At the end of January, when the economy appeared to be overheating and
inflationary pressures appeared to be mounting, the market anticipated and
welcomed a seventh increase in short-term interest rates from the Federal
Reserve. Now, less than six months later, expectations and outlook for the
economy and short-term interest rates appear less definite. The market generally
is anticipating an easing from the Federal Reserve as the economy has been
exhibiting weakness and inflation has only slightly increased.
Portfolio strategies have reflected this change in outlook and environment. As
the yield on the one year U.S. Treasury bill has shed more than 100 basis points
in the first six months of the year, weighted average maturities of taxable
retail money market funds have increased by more than 40%. Though weighted
average maturities were increasing in the first half of 1995, yields remained
relatively constant. However, fund yields have recently begun to fall as the
market's outlook for lower short-term interest rates has strengthened. Asset
flows into money market funds continued to be strong through the first six
months of the year, creating very strong technical pressures in the markets.
A conservative investment approach is ever more important in our increasingly
complex financial environment. Money market funds in general, and
the Cash Management Series in particular, are among the most conservative
investment vehicles available to the public. We strive to maintain stability of
principal by investing in only "first tier", short-term securities that present
minimal risk to our shareholders.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Clark D. Wagner
Chief Investment Officer
[LOGO]
Michael J. O'Keefe
Assistant Portfolio Manager
July 31, 1995
2
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--DISCOVERY SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks also benefitted from falling interest rates and continued
strong earnings growth. The financial markets, in general, reacted positively to
legislation to eliminate the Federal budget deficit over the next seven years.
The Discovery Series invests primarily in small to mid-sized companies, which we
define as those with market capitalization of less than $1 billion at the time
of investment. After lagging the general market throughout 1994, the small-cap
sector is finally showing signs of strength. For the first half of 1995, the
Series gained 15.01% on a net asset value basis.
During this period, the Discovery Series paid dividends from net investment
income of 6 cents per share and made a capital gains distribution of $1.26 per
share.
During the first six months of 1995, the Series' performance was positively
influenced by its exposure to the technology sector, which has shown explosive
growth for the year to date. Specifically, Tower Semiconductor, Ltd., Applied
Materials, Inc., Fulcrum Technologies, Inc. and Electroglas, Inc. all showed
tremendous price appreciation. In addition, the rotation into cyclical stocks,
specifically the agricultural and construction equipment stocks such as Agco
Corp., Case Corp. and Clark Equipment positively affected the Series. In fact,
Clark Equipment was also a takeover target along with Lotus Development Corp.,
both of which dramatically appreciated in price. Exposure to the generic
pharmaceutical sector, specifically Teva Pharmaceuticals, Ivax Corp. and Watson
Pharmaceuticals also aided performance.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Patricia D. Poitra
Director of Equities
and Portfolio Manager
July 31, 1995
3
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--GOVERNMENT SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of recession.
Slower growth resulted in a substantial decline in long-term interest rates. In
this environment, high coupon mortgage-backed bonds underperformed Treasury
bonds as homeowners prepaid outstanding mortgages. To reduce the Series'
exposure to prepayment risk, the Series sold relatively high coupon mortgage-
backed bonds in the second quarter and bought lower coupon mortgage-backed
bonds.
These adjustments enabled the Series to participate more fully in the bond
market's rally. For the first six months of 1995, the Government Series had a
total return of 9.58% on a net asset value basis. Dividends paid from net
investment income amounted to 62 cents per share.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
John A. Tomasulo
Portfolio Manager
July 31, 1995
4
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--GROWTH SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks also benefitted from falling interest rates and continued
strong earnings growth. The financial markets, in general, reacted positively to
legislation to eliminate the Federal budget deficit over the next seven years.
Gains in the U.S. equity market were led by semiconductor stocks, which
continued to benefit from rapid unit growth tied to personal computer sales, and
stable pricing helped by favorable currency rates versus the Japanese yen.
Financial stocks also performed well year-to-date as the relative earnings
growth of other sectors declined and as investors anticipated a cut in
short-term interest rates. Lagging groups included energy due to weak commodity
prices and a rise in inventory levels. Health care service stocks, such as
HMO's, nursing homes, hospitals etc., also lagged due to concerns about Medicaid
pricing and competitive pressures.
For the six months ended June 30, 1995, the Growth Series returned 15.46% on a
net asset value basis. The Series' investments in technology, specifically
positions in stocks such as Engelhard, Hewlett-Packard and Ericsson, benefitted
performance. During this period, the Growth Series paid dividends of 9 cents per
share from net investment income and made a capital gains distribution of 29
cents per share.
The portfolio's strategy is to focus on sectors and individual securities that
are expected to demonstrate strong relative earnings 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, we remain skeptical of many of the traditional
consumer nondurable companies due to inferior relative earnings growth and only
average valuations. Rather, the portfolio retains positions in growth sectors
such as media, health care, telecommunications and technology as they continue
to report good earnings trends.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Matthew E. Megargel
Portfolio Manager
July 31, 1995
5
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--HIGH YIELD SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Positive returns in the equity market indicated a market consensus that low
inflation and a transition to slower growth are still compatible with good
earnings results in most companies and industries. The High Yield Series
performed well during the first half of 1995 with a total return of 11.44% on a
net asset value basis, which compares favorably with a 9.72% return for the
average high yield fund according to Lipper Analytical Services. During this
period, dividends paid from net investment income amounted to 96 cents per
share.
Fixed income investors in search of yield have continued to commit money to the
market, which sparked a rally beginning early in the year. Led at first by
lower-rated and deferred coupon bonds, several industry sectors that had done
poorly in 1994, such as gaming and housing, rebounded. Other industries that
generally outperformed due to lower interest rates and regulatory developments
were finance, media/ cable, telecommunications and energy.
Many companies sought to issue bonds under these favorable financing conditions.
The arrival of these new issues during the second quarter coincided with some
signs of a slowing economy. Market leadership began to change as the economic
outlook changed. One of the major developments so far in 1995 has been some
softening in bonds of cyclical industries such as metals, chemicals and forest
products. These industries have contributed to the performance of the Series and
the high yield market during the past two years, but there has been some
evidence that the volume growth and pricing flexibility that they had enjoyed
may be ending. Despite ample cash for investment, investors have become more
risk averse and regard each company selectively, bidding up the stronger issues,
refusing to fund weaker credits and requiring better terms from those in the
middle tier. The result has been that as the second quarter progressed, the
higher rating categories outperformed. With 89.4% of the Series' bonds rated
single B or better, the High Yield Series was well positioned for this
development.
We believe that high yield bonds are positioned to perform well versus fixed
income alternatives over the balance of the year. We are unlikely to see the
kind of decisive downward move in interest rates that occurred in the first half
of the year. Although there is a higher credit risk associated with high yield
bonds, in a stable interest rate environment, they tend to outperform fixed
income alternatives by virtue of their higher income. Also, the economy appears
to be returning to a sustainable rate of growth after the pause we saw in the
second quarter. We expect that our credit oriented strategy of concentrating on
stable to improving bonds will continue to reward Series investors.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
George V. Ganter
Portfolio Manager
July 31, 1995
6
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
Dear Investor:
International markets were generally up for the first half of 1995. In the first
quarter of 1995, many international equity markets declined in response to the
deepening crises in Latin America, an earthquake in Japan and new lows for the
U.S. dollar. The second quarter of 1995 saw global bond market rallies fueled by
signs of a U.S. economic slowdown and increased probability of an easing in U.S.
monetary policy. The global bond market rallies, in turn, provided broad support
for rallies in many international equity markets. Japan was the key exception,
as weak economic news continued to depress stock prices; the market was off 22%
in local terms for the first half of 1995 as measured by the Morgan Stanley
Capital International Index. Due to yen strength, however, the market was down
only 8% in U.S. dollar terms.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks also benefitted from falling interest rates and continued
strong earnings growth. The financial markets in general reacted positively to
legislation to eliminate the Federal budget deficit over the next seven years.
For the six months ended June 30, 1995, the International Securities Series
returned 7.88% on a net asset value basis, above the average total return of
7.57% for all global funds. During this period,
the Series paid dividends from net investment income of 12 cents per share and
made a capital gains distribution of 25 cents per share. In terms of strategy,
the emphasis in the U.S. portion of the Series remains on a diversified list of
larger capitalized companies that are expected to increase earnings at a double
digit rate this year and next, yet are selling at reasonable price-earnings
ratios. The Series also continues to focus on Japanese companies that will
benefit from the important structural changes taking place in their economy. In
Europe, the focus is on companies that can benefit from both recovering
economies and improving cost structures. In Latin America, the Series remains
cautious due to concerns about the overvaluation of currency in Argentina and to
a lesser extent, Brazil, and the market's underestimation of the negative longer
term economic impact of Mexico's recent devaluation.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Trond Skramstad
Portfolio Manager
July 31, 1995
7
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--INVESTMENT GRADE SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
The investment grade market benefitted from the decline in interest rates so far
this year. For the first half of 1995, the Investment Grade Series performed
well on a relative basis, posting a total return of 12.04% on a net asset value
basis, as compared to 11.84% for the average investment grade bond fund. During
this period, dividends paid from net investment income amounted to 53 cents per
shares.
The Series benefitted from a number of rating upgrades. Several issuers which
were acquired by higher-rated companies saw their bonds appreciate
significantly. These included HealthTrust 8 3/4% and Allison Engine 10%. In
other cases, the rating agencies recognized the improvement in operating results
and balance sheet ratios. Bonds which were upgraded under these circumstances
saw more modest price rises. These included: GMAC 7 1/8%, Associates Corp.
7 7/8% and J.C. Penney Co. 6 1/8%.
Sector exposure also influenced performance. Electric utilities bonds which
underperformed in 1994 recovered, as fears of immediate competition faded, while
telephone bonds moved ahead as potential acquisition activities dissipated. The
banking sector underperformed as investors became concerned with the direction
of credit quality stemming from the increased acquisition activity within the
industry.
Duration -- a measurement of interest rate sensitivity -- is always an important
factor in performance. As we entered 1995, the Series was positioned
conservatively; its duration was approximately half a year shorter than this
market as a whole. We took this position to lessen the risk of loss in a rising
interest rate environment. While this position was a modest drag on performance
during the market rally in early 1995, we believe that this strategy, combined
with careful attention to credit quality and sector trends, has been a prudent
one, given recent rate volatility.
As we enter the second half of 1995, we believe the bond market will continue to
trade within its recent range. Volatility, however, is not expected to diminish,
giving the Series an opportunity to modestly extend its duration. In addition,
we will be selective in adding new BBB positions. While corporate spreads have
recently been very stable, they are still narrow by historic standards, and
bondholders are not always compensated for the additional risk on the lower
investment grade categories. We will also try to avoid companies which undertake
transactions, such as debt-financed acquisitions and stock buy-back programs,
that may be detrimental to credit quality.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Nancy W. Jones
Portfolio Manager
July 31, 1995
8
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--TARGET MATURITY 2007 SERIES
Dear Investor:
We are pleased to present the first semi-annual report of First Investors Life
Series Fund -- Target Maturity 2007 Series, which commenced operations on April
25, 1995. The Series' investment objective is to seek a predictable compounded
investment return for investors who hold their investment until maturity of the
Series. At June 30, 1995, the Series was fully invested in zero coupon
securities. These securities are purchased at a steep discount to face value and
although they do not make any interest payments, they mature at full face value,
thus locking in a fixed yield-to-maturity. For the period April 25, 1995 through
June 30, 1995, the Target Maturity 2007 Series returned 9.80% on a net asset
value basis.
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to
lower short-term interest rates to insure against the possibility of a
recession.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks also benefitted from falling interest rates and continued
strong earnings growth. The financial markets, in general, reacted positively to
legislation to eliminate the Federal budget deficit over the next seven years.
We appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
John A. Tomasulo
Portfolio Manager
July 31, 1995
9
<PAGE>
PORTFOLIO MANAGER'S LETTER
First Investors Life Series Fund--UTILITIES INCOME SERIES
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks in general, and utilities in particular, have benefitted from
falling long-term interest rates and the perception that the economy is slowing
from its rapid growth of last year. Utilities traditionally do well in an
economic environment of low long-term interest rates, slow economic growth and
low inflation. Therefore, we believe that utilities should continue to do well
as long as interest rates remain stable or trend lower, and the economy
continues to show signs of slowing.
For the first half of 1995, the Series returned 11.29% on a net asset value
basis. Dividends paid from net investment income amounted to 19 cents per share.
The Series' performance for the first six months of 1995 was helped by
diversification and solid performance from the following holdings: BellSouth
(telephone); Houston Industries (electric); US West (telephone); Panhandle
Eastern (natural gas); Pinnacle West (electric) and Illinova (electric).
Competition has become a major issue for the telephone companies, since most
investors believe the local exchange business will start to become as
competitive in the late 1990s as the long-distance business was in the 1980s.
While competition will require telephone companies to focus more intently on
cost reduction and service enhancement than they have in the past, it is
believed that for those companies that can meet these competitive challenges,
competition will be a positive for two primary reasons: it will open up new
markets to them such as cable and long-distance; and, it will reduce the extent
to which their operations are rate-of-return regulated. This in turn will mean
increased profit potential as they allocate capital on a rate-of-return rather
than an obligation-to-serve basis and sharpen their marketing and cost
management skills. Also, a need for efficiency may lead to consolidation in the
industry.
We are maintaining our natural gas position in the Series. The weakness in gas
prices this year was mainly the result of a final burst of Canadian imports at
the beginning of the year and an unusually warm winter which reduced annualized
demand. A stronger North American gas capacity utilization in 1996 is projected,
particularly if winter weather is not unusually mild. The demand in the utility
and industrial sectors has continued to be strong, and growth in Canadian
imports should come to an abrupt halt, at least until the winter of 1997, as
pipeline capacity to the U.S. is now fully utilized.
Increased merger activity among electric utilities should continue to benefit
the Series' performance. Electric utilities are scrambling to find acceptable
merger partners to prepare for a new environment in which they will no longer
enjoy monopoly service territories. A 1992 federal law deregulated sales to
power resellers, and now dozens of states are considering plans to allow a free
market for sales to end users, such as businesses and homes. In recent merger
activity, Philadelphia based PECO Electric announced a hostile bid for
Allentown, PA based PP&L and Public Service Company of Colorado and Texas based
Southwestern Public Service Company agreed to merge.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[LOGO]
Margaret R. Haggerty
Portfolio Manager
July 31, 1995
10
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--BLUE CHIP SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--90.1%
BASIC INDUSTRY--6.4%
11,600 Alcan Aluminum Ltd. $ 350,900 $ 67
1,800 Consolidated Papers, Inc. 103,725 20
3,550 Dow Chemical Company 255,156 49
9,100 Du Pont (E.I.) De Nemours & Company 625,625 120
2,300 Georgia Pacific Corporation 199,525 38
4,300 Inland Steel Industries, Inc. 131,150 25
1,700 International Paper Company 145,775 28
3,700 James River Corporation of Virginia 102,213 20
1,600 Mead Corporation 95,000 18
5,500 Minnesota Mining & Manufacturing Company 314,875 60
7,850 Monsanto Company 707,481 135
4,850 Nucor Corporation 259,475 50
1,400 Temple-Inland, Inc. 66,675 13
- -------------------------------------------------------------------------------------------------
3,357,575 643
- -------------------------------------------------------------------------------------------------
CAPITAL GOODS--10.2%
4,200 Boeing Company 263,025 50
2,700 Browning-Ferris Industries, Inc. 97,538 19
4,400 Deere & Company 376,750 72
7,000 Dover Corporation 509,250 97
2,100 Eaton Corporation 122,062 23
2,800 Emerson Electric Company 200,200 38
2,200 Foster Wheeler Corporation 77,550 15
22,100 General Electric Company 1,245,887 239
5,200 Grainger (W.W.), Inc. 305,500 58
6,500 Ingersoll-Rand Company 248,625 48
3,600 ITT Corporation 423,000 81
1,800 Loral Corporation 93,150 18
2,700 McDonnell Douglas Corporation 207,225 40
3,300 Raytheon Company 256,161 49
3,300 United Technologies Corporation 257,813 49
11,300 *Varity Corporation 497,200 95
6,100 WMX Technologies, Inc. 173,088 33
- -------------------------------------------------------------------------------------------------
5,354,024 1,024
- -------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--BLUE CHIP SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER DURABLES--3.2%
4,350 Chrysler Corporation $ 208,256 $ 40
6,200 Corning, Inc. 203,050 39
1,400 Fleetwood Enterprises, Inc. 27,650 5
13,250 Ford Motor Company 394,188 75
9,600 General Motors Corporation 450,000 86
4,500 Goodyear Tire & Rubber Company 185,625 36
6,750 Masco Corporaion 182,250 35
- -------------------------------------------------------------------------------------------------
1,651,019 316
- -------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--20.1%
10,400 Abbott Laboratories 421,200 81
3,800 American Home Products Corporation 294,025 56
6,300 Anheuser-Busch Companies, Inc. 358,312 69
6,400 Bristol-Myers Squibb Company 436,000 83
16,750 Coca-Cola Company 1,067,812 204
1,900 Colgate-Palmolive Company 138,938 27
5,900 Columbia/HCA Healthcare Corporation 255,175 49
4,700 CPC International, Inc. 290,225 56
4,550 Eastman Kodak Company 275,843 53
3,600 Eli Lilly & Company 282,600 54
3,800 General Mills, Inc. 195,225 37
5,400 Gillette Company 240,975 46
8,300 Johnson & Johnson 561,288 107
6,600 Kellogg Company 471,075 90
9,850 Kimberly-Clark Corporation 589,769 113
15,800 Merck & Company, Inc. 774,200 148
1,800 Nike, Inc. 151,200 29
10,300 PepsiCo, Inc. 469,938 90
3,850 Pfizer, Inc. 355,643 68
13,900 Philip Morris Companies, Inc. 1,033,813 198
8,800 Procter & Gamble Company 632,500 121
4,900 *Ralcorp Holdings, Inc. 112,088 21
10,400 Sara Lee Corporation 296,400 57
4,800 Schering-Plough 211,800 41
2,500 Teva Pharmaceutical Industries Ltd. 93,750 18
- -------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER NON-DURABLES (continued)
2,000 Unilever PLC $ 260,250 $ 50
2,400 Warner-Lambert Company 207,300 40
- -------------------------------------------------------------------------------------------------
10,477,344 2,006
- -------------------------------------------------------------------------------------------------
CONSUMER SERVICES--9.6%
4,500 Albertson's, Inc. 133,875 26
6,700 *Bed Bath & Beyond, Inc. 162,475 31
5,900 Brunswick Corporation 100,300 19
1,900 Capital Cities/ABC, Inc. 205,200 39
2,800 Dayton Hudson Corporation 200,900 38
6,300 Gap, Inc. 219,712 42
5,400 Home Depot, Inc. 219,375 42
5,400 *Kroger Company 145,125 28
3,200 Marriott International, Inc. 114,800 22
6,725 Mattel, Inc. 174,850 33
4,400 May Department Stores Company 183,150 35
9,550 McDonald's Corporation 373,644 72
2,600 McGraw-Hill Companies, Inc. 197,275 38
5,200 Nordstrom, Inc. 215,150 41
11,700 *Price/Costco, Inc. 190,125 36
4,300 Rite Aid Corporation 110,187 21
4,550 Sears, Roebuck and Company 272,431 52
7,700 *Tele-Communications, Inc. 180,469 35
4,800 Time Warner, Inc. 197,400 38
4,400 *Toys "R" Us, Inc. 128,700 25
3,400 *Viacom, Inc. Class "B" 157,675 30
29,050 Wal-Mart Stores, Inc. 777,088 149
6,400 Walt Disney Company 356,000 68
- -------------------------------------------------------------------------------------------------
5,015,906 960
- -------------------------------------------------------------------------------------------------
ENERGY--9.9%
6,200 Amoco Corporation 413,075 79
3,100 Atlantic Richfield Company 340,225 65
2,400 Burlington Resources, Inc. 88,500 17
8,400 Chevron Corporation 391,650 75
9,500 Enron Corporation 333,687 64
- -------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--BLUE CHIP SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY (continued)
15,500 Exxon Corporation $ 1,094,687 $ 210
5,000 Halliburton Company 178,750 34
2,300 Kerr-McGee Corporation 123,338 24
5,500 Mobil Corporation 528,000 101
4,600 Pacific Enterprises 112,700 22
3,150 Phillips Petroleum Company 105,131 20
6,625 Royal Dutch Petroleum Company 807,422 155
3,800 Schlumberger, Ltd. 236,075 45
3,200 Texaco, Inc. 210,000 40
8,300 Unocal Corporation 229,288 44
- -------------------------------------------------------------------------------------------------
5,192,528 995
- -------------------------------------------------------------------------------------------------
FINANCIAL--7.6%
6,350 American Express Company 223,044 43
4,000 American International Group, Inc. 456,000 87
9,200 Banc One Corporation 296,700 57
4,200 Bank of New York Company, Inc. 169,575 32
6,000 BankAmerica Corporation 315,750 60
3,900 Chase Manhattan Corporation 183,300 35
4,800 Chemical Banking Corporation 226,800 43
4,200 Citicorp 243,075 47
5,700 Federal National Mortgage Association 537,937 103
1,900 First Interstate Bancorp 152,475 29
4,300 First Union Corporation 194,575 37
950 Marsh & McLennan Companies, Inc. 77,069 15
5,100 Mellon Bank Corporation 212,287 41
6,300 NationsBank Corporation 337,838 65
7,600 Norwest Corporation 218,500 42
700 Wells Fargo & Company 126,175 24
- -------------------------------------------------------------------------------------------------
3,971,100 760
- -------------------------------------------------------------------------------------------------
TECHNOLOGY--13.1%
20,150 A T & T Corp. 1,070,469 205
8,500 *Airtouch Communications, Inc. 242,250 46
1,700 Autodesk, Inc. 73,100 14
2,800 Automatic Data Processing, Inc. 176,050 34
- -------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
4,800 *Cisco Systems, Inc. $ 242,700 $ 46
3,600 *Compaq Computer Corporation 163,350 31
7,600 First Data Corporation 432,250 83
7,000 Hewlett-Packard Company 521,500 100
10,400 Intel Corporation 658,450 126
7,450 International Business Machines Corporation 715,200 137
13,900 MCI Communications Corporation 305,800 59
8,300 *Microsoft Corporation 750,112 144
11,100 Motorola, Inc. 745,088 143
6,500 *National Semiconductor Corporation 180,375 35
6,300 *NETCOM On-Line Communication Services, Inc. 160,650 31
10,350 *Oracle Corporation 399,769 77
- -------------------------------------------------------------------------------------------------
6,837,113 1,311
- -------------------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
2,000 *AMR Corporation 149,250 29
2,100 Burlington Northern, Inc. 133,088 25
10,100 *Southern Pacific Rail Corporation 159,075 30
5,400 Union Pacific Corporation 299,025 57
- -------------------------------------------------------------------------------------------------
740,438 141
- -------------------------------------------------------------------------------------------------
UTILITIES--8.6%
7,100 Ameritech Corporation 312,400 60
5,700 Bell Atlantic Corporation 319,200 61
7,500 BellSouth Corporation 476,250 91
8,000 Carolina Power & Light Company 242,000 46
14,100 CINergy Corporation 370,125 71
8,100 Duke Power Company 336,150 64
9,900 FPL Group, Inc. 382,387 73
12,300 GTE Corporation 419,737 80
5,300 NYNEX Corporation 213,325 41
5,500 Pacific Telesis Group 147,125 28
9,200 PacifiCorp 172,500 33
5,700 Peco Energy Company 157,462 30
<CAPTION>
- -------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--BLUE CHIP SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
SHARES $10,000
OR OF
PRINCIPAL NET
AMOUNT SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
7,700 SBC Communications, Inc. $ 366,713 $ 70
9,900 Texas Utilities Company 340,313 65
5,600 US West, Inc. 233,100 45
- -------------------------------------------------------------------------------------------------
4,488,787 858
- -------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $40,070,214) 47,085,834 9,014
- -------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.7%
CONSUMER SERVICES
$ 500M Bell Sports Corporation, 4 1/4%, 11/15/2000 (cost $424,299) 373,750 72
- -------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--8.9%
300M Ford Motor Credit Corporation, 5.97%, 7/19/95 299,105 57
600M General Electric Capital Corporation, 5.70%, 7/3/95 599,810 115
1,500M Hertz Corporation, 5.94%, 8/7/95 1,490,842 285
1,900M McDonalds Corporation, 5.93%, 7/6/95 1,898,434 363
100M Prudential Funding Corporation, 5.93%, 7/13/95 99,786 19
250M Prudential Funding Corporation, 5.95%, 7/18/95 249,298 48
- -------------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $4,637,275) 4,637,275 887
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL VALUE OF INVESTMENTS (cost $45,131,788) 99.7% 52,096,859 9,973
OTHER ASSETS, LESS LIABILITIES .3 135,515 27
- --------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $52,232,374 $ 10,000
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
16 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--CASH MANAGEMENT SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
PRINCIPAL INTEREST NET
AMOUNT SECURITY RATE VALUE ASSETS
*
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT-TERM CORPORATE NOTES--99.8%
$ 180M Anheuser-Busch Companies Inc., 7/14/95 5.92% $ 179,615 $ 440
200M Central Louisiana Electric Co., 7/3/95 6.01 199,935 490
170M Chevron Oil Finance Co., 8/10/95 5.90 168,885 414
150M Colgate-Palmolive Co., 7/17/95 5.94 149,604 366
200M CPC International Inc., 8/14/95 5.93 198,550 486
200M Delaware Funding Corp., 8/24/95 5.93 198,221 486
200M Deluxe Corp., 8/3/95 5.85 198,928 487
200M Ford Motor Credit Co., 9/20/95 5.95 197,322 483
200M Hewlett-Packard Co., 9/28/95 5.87 197,097 483
100M Lilly (Eli) & Co., 9/12/95 5.92 98,800 242
125M National Rural Utilities Cooperative Finance Corp., 8/21/95 5.93 123,950 304
164M NYNEX Credit Co., 7/24/95 6.04 163,367 400
200M Paccar Financial Corp., 7/14/95 5.93 199,572 489
200M Penney (J.C.) Funding Corp., 7/21/95 5.93 199,341 488
150M Pepsico Inc., 7/3/95 5.87 149,951 367
200M Prudential Funding Corp., 7/7/95 5.87 199,804 489
175M Public Service Electric & Gas Co., 8/30/95 5.95 173,264 424
200M Raytheon Co., 7/6/95 5.87 199,837 490
200M The Stanley Works, 8/15/95 5.95 198,513 486
160M Texaco Inc., 7/20/95 5.94 159,499 391
150M US West Telecommunications Inc., 7/10/95 5.90 149,779 367
175M Winn-Dixie Stores Inc., 9/14/95 5.88 172,856 423
200M Wisconsin Electric Power Co., 8/7/95 5.88 198,791 488
- ----------------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $4,075,481) 99.8 % 4,075,481 9,983
OTHER ASSETS, LESS LIABILITIES .2 6,978 17
- ----------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $4,082,459 $10,000
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
*The interest rate shown is the effective rate at the time of purchase.
See notes to financial statements 17
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--DISCOVERY SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--76.7%
BASIC INDUSTRY--2.6%
4,400 Chesapeake Corporation $ 136,950 $ 35
19,300 *Interpool, Inc. 262,963 67
25,000 *Repap Enterprises, Inc. 193,750 50
5,600 *Sybron Chemicals, Inc. 75,950 19
6,600 Willamette Industries, Inc. 366,300 94
- -------------------------------------------------------------------------------------------------
1,035,913 265
- -------------------------------------------------------------------------------------------------
CAPITAL GOODS--3.5%
13,650 Agco Corporation 511,875 130
14,200 Case Corporation 422,450 108
4,800 *Dovatron International, Inc. 117,600 30
11,400 *Encon Systems, Inc. 57,000 15
21,600 Owosso Corporation 252,450 65
- -------------------------------------------------------------------------------------------------
1,361,375 348
- -------------------------------------------------------------------------------------------------
CONSUMER DURABLES--1.9%
7,800 *Champion Enterprises, Inc. 123,825 32
9,200 Falcon Products, Inc. 117,300 30
8,200 Federal-Mogul Corporation 149,650 38
21,800 *National R.V. Holdings, Inc. 185,300 47
6,200 Oakwood Homes Corp. 158,875 41
- -------------------------------------------------------------------------------------------------
734,950 188
- -------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--3.6%
6,800 *Canadaigua Wine Company, Inc. 304,300 78
9,500 Dreyer's Grand Ice Cream, Inc. 347,938 89
24,500 *Grist Mill Company 269,500 69
13,500 *Lasermaster Technologies, Inc. 70,875 18
15,300 *Ralcorp Holdings, Inc. 349,987 90
3,900 *Recoton Corporation 76,050 19
- -------------------------------------------------------------------------------------------------
1,418,650 363
- -------------------------------------------------------------------------------------------------
CONSUMER SERVICES--11.2%
10,300 Advo, Inc. 194,412 50
5,100 *Bed Bath & Beyond, Inc. 123,675 32
- -------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER SERVICES (continued)
22,500 *Cinar Films, Inc. Class "B" $ 220,782 $ 56
8,200 *CUC International, Inc. 344,400 88
2,100 Dayton Hudson Corporation 150,675 39
9,400 Equifax, Inc. 313,725 80
18,300 Franklin Electronic Publishers, Inc. 468,937 120
21,100 *Home Shopping Network, Inc. 179,350 46
500 Houghton Mifflin Company 26,375 7
7,600 *Insurance Auto Auctions, Inc. 222,300 57
14,500 *Meyer (Fred), Inc. 393,312 101
18,400 *Monarch Casino & Resort, Inc. 96,600 25
11,000 *Rex Stores Corporation 154,000 39
17,600 Rite Aid Corporation 451,000 115
7,000 Talbots, Inc. 278,250 71
20,750 *US Office Products Company 249,000 64
11,100 *Viacom, Inc. Class "B" 514,762 131
- -------------------------------------------------------------------------------------------------
4,381,555 1,121
- -------------------------------------------------------------------------------------------------
FINANCIAL--5.6%
9,800 *American Travellers Corporation 172,725 44
24,300 Amvestors Financial Corporation 282,487 72
18,000 *Credit Acceptance Corporation 369,000 94
9,100 First USA, Inc. 403,813 103
22,500 Independent Bank Corporation 156,094 40
12,500 Integon Corporation 212,500 54
24,500 *Penn Treaty American Corporation 312,375 80
16,350 Reliance Group Holdings, Inc. 106,275 27
7,182 Southern National Corporation 172,368 44
- -------------------------------------------------------------------------------------------------
2,187,637 558
- -------------------------------------------------------------------------------------------------
HEALTH CARE/MISCELLANEOUS--12.2%
12,400 *American Medical Response, Inc. 347,200 89
26,500 *Applied Bioscience International, Inc. 135,813 35
10,000 *Arbor Health Care Company 192,500 49
9,000 *Boston Scientific Corporation 286,875 73
9,400 Dentsply International, Inc. 338,400 87
26,300 *Ethical Holdings PLC (ADR) 151,225 39
- -------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--DISCOVERY SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTH CARE/MISCELLANEOUS (continued)
13,000 Fisher Scientific International $ 430,625 $ 110
9,200 *Health Care and Retirement Corporation 269,100 69
18,300 Ivax Corporation 450,637 115
12,300 *Living Centers of America, Inc. 333,638 85
19,200 *Mid Atlantic Medical Services, Inc. 355,200 91
10,900 *Pacific Physicians Services, Inc. 141,700 36
16,000 *Quantum Health Resources, Inc. 264,000 68
6,500 *Rural/Metro Corporation 144,625 37
11,600 Teva Pharmaceutical Industries Ltd. 435,000 111
6,600 *Value Health, Inc. 212,850 54
7,200 *Watson Pharmaceuticals, Inc. 280,800 72
- -------------------------------------------------------------------------------------------------
4,770,188 1,220
- -------------------------------------------------------------------------------------------------
TECHNOLOGY--34.9%
4,400 A T & T Corporation 233,750 60
14,200 *Adaptec, Inc. 525,400 133
10,800 *Altera Corporation 467,100 118
6,400 *Applied Materials, Inc. 554,400 141
8,600 *Atmel Corporation 476,225 121
11,900 *Bisys Group, Inc. 264,775 68
10,100 *Boston Technology, Inc. 188,112 48
11,400 *Broadway & Seymour, Inc. 236,550 60
3,500 Computer Associates International, Inc. 237,125 61
12,300 *Concentra Corporation 119,925 31
18,000 *Convex Computer Corporation 81,000 21
17,000 ECI Telecommunications Limited Designs (ADR) 232,687 60
5,500 *Electroglas, Inc. 314,875 81
13,900 *EMC Corporation 337,075 86
14,800 Ericsson (L.M.) Telephone Company (ADR) 296,000 76
7,800 FEI Company 101,400 26
6,400 *FileNet Corporation 258,400 66
18,200 *Fulcrum Technologies, Inc. 400,400 102
2,500 *General Instrument Corporation 95,937 25
8,600 *Integrated Device Technology, Inc. 397,750 102
26,000 *Integrated Micro Products PLC (ADR) 312,000 80
15,400 *Intersolv 358,050 92
- -------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
NET
SHARES SECURITY VALUE ASSETS
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
3,700 Lattice Semiconductor Corporation $ 127,187 $ 33
2,000 *Lotus Development Corporation 127,500 33
11,600 *LSI Logic Corporation 453,850 116
12,100 *Metatec Corporation 155,788 40
3,800 *Microsoft Corporation 343,425 88
6,000 Motorola, Inc. 402,750 103
17,700 *Mysoftware Company 221,250 57
21,200 *National Semiconductor Corporation 588,300 150
14,500 *NETCOM On-Line Communication Services, Inc. 369,750 95
9,600 Nokia Corp. (ADR) 572,400 146
12,700 *Octel Communications Corporation 371,475 95
13,350 *Oracle Corporation 515,644 132
58,800 *Plasma-Therm, Inc. 220,500 56
11,400 *Pyxis Corporation 257,925 66
11,600 Reynolds & Reynolds Company 342,200 88
10,400 *Teltrend, Inc. 205,400 53
12,500 *Tower Semiconductor Ltd. 362,500 93
13,900 US West, Inc. 578,588 148
16,700 *VLSI Technology, Inc. 503,088 129
7,500 *Wang Laboratories, Inc. 122,813 31
3,200 *Xilinx, Inc. 300,800 77
- -------------------------------------------------------------------------------------------------
13,632,069 3,487
- -------------------------------------------------------------------------------------------------
TRANSPORTATION--1.2%
17,400 *Southern Pacific Rail Corporation 274,050 70
31,000 *Transportacion Maritima Mexicana S.A. (ADR) 193,750 50
- -------------------------------------------------------------------------------------------------
467,800 120
- -------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $23,538,591) 29,990,137 7,670
<CAPTION>
- -------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--DISCOVERY SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
AMOUNT
INVESTED
FOR EACH
$10,000
OF
PRINCIPAL NET
AMOUNT SECURITY VALUE ASSETS
<CAPTION>
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONVERTIBLE BONDS--.3%
HEALTH CARE/MISCELLANEOUS
$ 150M Pacific Physicians Services, Inc., 5 1/2%, 2003 (cost $ 30
$150,000) $ 116,625
- -------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--22.9%
1,700M General Electric Credit Corporation, 5.94%, 7/14/95 1,696,354 434
1,600M Hertz Corporation, 5.94%, 8/7/95 1,590,232 406
2,800M McDonalds Corporation, 5.93%, 7/6/95 2,797,694 716
350M Philip Morris Companies, Inc., 5.97%, 7/31/95 348,258 89
150M Prudential Funding Corporation, 5.95%, 7/18/95 149,579 38
2,400M Prudential Funding Corporation, 5.90%, 8/11/95 2,383,873 610
- -------------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $8,965,990) 8,965,990 2,293
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL VALUE OF INVESTMENTS (cost $32,654,581) 99.9% 39,072,752 9,993
OTHER ASSETS, LESS LIABILITIES .1 26,517 7
- --------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $39,099,269 $ 10,000
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
22 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--GOVERNMENT SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--48.8%
$ 1,100M Federal Farm Credit, 8.65%, 10/01/1999 $1,200,552 $ 1,316
1,000M Federal Home Loan Bank, 7.36%, 7/01/2004 1,056,483 1,158
39M Federal Home Loan Mortgage Corp., 6 1/2%, 4/1/2024 37,954 42
134M Federal Home Loan Mortgage Corp., 6 1/2%, 6/1/2024 129,190 142
1,100M Federal Home Loan Mortgage Corp., 6 1/2%, 9/1/2024 1,059,883 1,162
927M Federal National Mortgage Association, 9%, 10/1/2020 967,402 1,061
- ----------------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY OBLIGATIONS (cost
$4,434,535) 4,451,464 4,881
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE BACKED CERTIFICATES--14.7%
1,295M Government National Mortgage Association, 8 1/2%, 12/15/2025
(cost $1,345,448) 1,345,036 1,474
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--28.3%
2,000M U.S. Treasury Note, 6 1/4%, 5/31/2000 2,021,875 2,217
500M U.S. Treasury Note, 7 7/8%, 11/15/2004 556,953 611
- ----------------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT OBLIGATIONS (cost $2,522,969) 2,578,828 2,828
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.9%
450M Xerox Corp., 6.20%, 7/5/95 (cost $449,690) 449,690 492
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL VALUE OF INVESTMENTS (cost $8,752,642) 96.7 % 8,825,018 9,675
OTHER ASSETS, LESS LIABILITIES 3.3 296,456 325
- -------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $9,121,474 $10,000
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements 23
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--GROWTH SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--93.9%
BEVERAGES/SOFT DRINKS--2.0%
18,000 PepsiCo, Inc. $ 821,250 $ 199
- -------------------------------------------------------------------------------------------------------------------
BROADCAST MEDIA--4.0%
35,000 Comcast Corp. Special Shares Class "A" 649,688 158
21,400 *Viacom Inc. Class "B" 987,075 239
- -------------------------------------------------------------------------------------------------------------------
1,636,763 397
- -------------------------------------------------------------------------------------------------------------------
CHEMICALS/DIVERSIFIED--5.6%
40,700 Albemarle Corp. 635,938 155
14,400 Engelhard Corp. 617,400 150
19,000 Morton International, Inc. 555,750 135
13,500 Nalco Chemical Company 491,063 119
- -------------------------------------------------------------------------------------------------------------------
2,300,151 559
- -------------------------------------------------------------------------------------------------------------------
COMPUTERS/SOFTWARE/BUSINESS EQUIPMENT--2.2%
6,300 *Microsoft Corp. 569,363 138
9,800 Sensormatic Electronics Corp. 347,900 84
- -------------------------------------------------------------------------------------------------------------------
917,263 222
- -------------------------------------------------------------------------------------------------------------------
COMPUTERS SOFTWARE/SERVICES--4.3%
8,000 Automatic Data Processing, Inc. 503,000 122
12,000 *Computer Sciences Corporation 682,500 165
13,000 *Policy Management Systems Corporation 598,000 145
- -------------------------------------------------------------------------------------------------------------------
1,783,500 432
- -------------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--2.6%
16,000 Rubbermaid, Inc. 444,000 108
22,600 Sara Lee Corp. 644,100 156
- -------------------------------------------------------------------------------------------------------------------
1,088,100 264
- -------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES--1.4%
36,000 *Price/Costco, Inc. 585,000 142
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
DRUGS--4.9%
14,000 Mallinckrodt Group $ 497,000 $ 121
30,000 *Perrigo Company 331,875 80
4,600 Pfizer, Inc. 424,925 103
15,000 Zeneca Group PLC 768,750 187
- -------------------------------------------------------------------------------------------------------------------
2,022,550 491
- -------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--4.5%
12,900 AMP, Inc. 545,025 132
11,000 Hubbell, Inc. Class "B" 621,500 151
15,000 York International 675,000 164
- -------------------------------------------------------------------------------------------------------------------
1,841,525 447
- -------------------------------------------------------------------------------------------------------------------
ELECTRONICS/INSTRUMENTS/COMPONENTS--3.7%
10,800 Hewlett-Packard Co. 804,600 195
10,800 Motorola, Inc. 724,950 176
- -------------------------------------------------------------------------------------------------------------------
1,529,550 371
- -------------------------------------------------------------------------------------------------------------------
ENERGY--2.2%
7,600 Air Products and Chemicals, Inc. 423,700 103
13,500 Burlington Resources, Inc. 497,813 120
- -------------------------------------------------------------------------------------------------------------------
921,513 223
- -------------------------------------------------------------------------------------------------------------------
ENERGY SOURCES--1.1%
18,100 Noble Affiliates, Inc. 461,550 112
- -------------------------------------------------------------------------------------------------------------------
FINANCIAL--1.9%
8,320 Federal National Mortgage Association 785,200 190
- -------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO--1.0%
8,000 General Mills, Inc. 411,000 100
- -------------------------------------------------------------------------------------------------------------------
FOOD WHOLESALERS--1.3%
19,000 Sysco Corporation 560,500 136
- -------------------------------------------------------------------------------------------------------------------
HEALTH CARE/DIVERSIFIED--3.0%
18,000 Abbott Laboratories 729,000 177
42,800 *Beverly Enterprises 529,650 128
- -------------------------------------------------------------------------------------------------------------------
1,258,650 305
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--GROWTH SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTH CARE/MISCELLANEOUS--1.0%
12,800 *Genetics Institute, Inc. $ 432,000 $ 105
- -------------------------------------------------------------------------------------------------------------------
INSURANCE--5.1%
24,000 Ace Ltd. 696,000 169
5,450 American International Group 621,300 150
21,000 American Re Corporation 782,250 190
- -------------------------------------------------------------------------------------------------------------------
2,099,550 509
- -------------------------------------------------------------------------------------------------------------------
MACHINE TOOLS--2.1%
15,700 Illinois Tool Works, Inc. 863,500 209
- -------------------------------------------------------------------------------------------------------------------
MACHINERY/DIVERSIFIED--1.1%
12,500 Foster Wheeler Corp. 440,625 107
- -------------------------------------------------------------------------------------------------------------------
MACHINERY/MANUFACTURING--1.1%
7,600 Minnesota Mining & Manufacturing Company 435,100 106
- -------------------------------------------------------------------------------------------------------------------
MEDICAL SUPPLIES--1.7%
30,000 Hafslund Nycomed-Class "B" (ADR) 693,750 168
- -------------------------------------------------------------------------------------------------------------------
MONEY CENTER BANKS--3.9%
10,000 J.P. Morgan & Co. 701,250 170
16,000 Republic New York Corp. 896,000 217
- -------------------------------------------------------------------------------------------------------------------
1,597,250 387
- -------------------------------------------------------------------------------------------------------------------
OIL/DOMESTIC--4.4%
13,300 Amoco Corp. 886,112 215
33,000 Unocal Corp. 911,625 221
- -------------------------------------------------------------------------------------------------------------------
1,797,737 436
- -------------------------------------------------------------------------------------------------------------------
OIL SERVICE--1.0%
6,600 Schlumberger Ltd. 410,025 99
- -------------------------------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--3.2%
5,300 International Paper Company 454,475 110
14,300 Kimberly-Clark Corp. 856,212 208
- -------------------------------------------------------------------------------------------------------------------
1,310,687 318
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
PUBLISHING/NEWS--1.7%
21,500 EW Scripps Company $ 693,375 $ 168
- -------------------------------------------------------------------------------------------------------------------
PUBLISHING/PRINTING--3.1%
12,000 Dun & Bradstreet, Inc. 630,000 153
11,850 *Scholastic Corp. 642,862 156
- -------------------------------------------------------------------------------------------------------------------
1,272,862 309
- -------------------------------------------------------------------------------------------------------------------
RETAIL/STORES--4.6%
20,000 *Autozone, Inc. 502,500 122
18,000 May Department Stores, Inc. 749,250 182
24,600 Wal-Mart Stores, Inc. 658,050 159
- -------------------------------------------------------------------------------------------------------------------
1,909,800 463
- -------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--5.0%
20,000 *Compuware Corporation 615,000 149
20,000 *General Instrument Corporation 767,500 186
34,600 *Novell, Inc. 689,837 168
- -------------------------------------------------------------------------------------------------------------------
2,072,337 503
- -------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--7.1%
19,700 A T & T Corp. 1,046,562 254
38,000 Ericsson (L.M.) Telephone Co. (ADR) Class "B" 760,000 184
7,200 Nokia Corp. (ADR) Class "A" 429,300 104
18,000 Vodafone Group PLC (ADR) 681,750 166
- -------------------------------------------------------------------------------------------------------------------
2,917,612 708
- -------------------------------------------------------------------------------------------------------------------
TELEPHONE/UTILITIES--1.1%
14,300 *MFS Communications Company, Inc. 461,175 112
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--GROWTH SERIES
June 30, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--1.0%
20,000 Werner Enterprises, Inc. $ 400,000 $ 97
- -------------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $32,681,466) 38,731,450 9,394
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENTS--5.2%
$ 2,140M UBS Securities, Inc. 6 1/8%, 7/3/95, (collateralized by U.S.
Treasury Note, 7 1/4%, 11/30/1996) (cost $2,140,000) 2,140,000 519
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL VALUE OF INVESTMENTS (cost $34,821,466) 99.1% 40,871,450 9,913
OTHER ASSETS, LESS LIABILITIES .9 360,065 87
- --------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $41,231,515 $10,000
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
28 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--HIGH YIELD SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--88.7%
AEROSPACE/DEFENSE--2.0%
$ 229M Dyncorp, PIK, 16%, 2003 $ 228,760 $ 62
500M Fairchild Industries, Inc., 12 1/4%, 1999 508,750 137
- ------------------------------------------------------------------------------------------------
737,510 199
- ------------------------------------------------------------------------------------------------
APPAREL/TEXTILES--1.6%
600M Westpoint Stevens, Inc., 9 3/8%, 2005 582,000 157
- ------------------------------------------------------------------------------------------------
AUTOMOTIVE--2.2%
800M SPX Corp., 11 3/4%, 2002 837,000 225
- ------------------------------------------------------------------------------------------------
CHEMICALS--6.9%
700M Buckeye Cellulose, Inc., 10 1/4%, 2001 700,000 189
1,000M Harris Chemical North America, Inc., 0%-10 1/4%, 2001 910,000 245
600M Rexene Corp., 11 3/4%, 2004 646,500 174
300M Synthetic Industries, Inc., 12 3/4%, 2002 301,500 81
- ------------------------------------------------------------------------------------------------
2,558,000 689
- ------------------------------------------------------------------------------------------------
COMPUTERS/SOFTWARE/BUSINESS EQUIPMENT--1.4%
500M Bell & Howell Co., 10 3/4%, 2002 532,500 143
- ------------------------------------------------------------------------------------------------
CONGLOMERATES--2.4%
1,250M Eagle Industries, Inc., 0%-10 1/2%, 2003 893,750 241
- ------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--1.8%
650M Calmar, Inc., 12%, 1997 669,500 180
- ------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--3.8%
700M Essex Group, Inc., 10%, 2003 675,500 182
700M IMO Industries, Inc., 12%, 2001 719,250 194
- ------------------------------------------------------------------------------------------------
1,394,750 376
- ------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--HIGH YIELD SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY SERVICES--7.1%
$ 405M Clark Oil & Refining Corp., 10 1/2%, 2001 $ 426,263 $ 115
1,000M Clark R & M Holdings, Inc., 0%, 2000 620,000 167
700M Falcon Drilling Co., Inc., 12 1/2%, 2005 731,500 197
800M Giant Industries, Inc., 9 3/4%, 2003 780,000 210
111M Synergy Group, Inc., 9 1/2%, 2000 (Note 4) 99,900 27
- ------------------------------------------------------------------------------------------------
2,657,663 716
- ------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--3.2%
700M American Life Holding Co., 11 1/4%, 2004 728,000 196
660M Lomas Mortgage, USA, 10 1/4%, 2002 463,650 125
- ------------------------------------------------------------------------------------------------
1,191,650 321
- ------------------------------------------------------------------------------------------------
GAMING/LODGING--3.3%
650M GB Property Funding, Inc., 10 7/8%, 2004 563,875 152
700M Showboat, Inc., 9 1/4%, 2008 647,500 174
- ------------------------------------------------------------------------------------------------
1,211,375 326
- ------------------------------------------------------------------------------------------------
HEALTHCARE--10.4%
750M Abbey Healthcare Group, Inc., 9 1/2%, 2002 776,250 209
700M Genesis Healthcare, Inc., 9 3/4%, 2005 707,875 191
600M Integrated Health Services, Inc., 9 5/8%, 2002 (Note 5) 615,000 166
400M Integrated Health Services, Inc., 10 3/4%, 2004 428,000 115
500M Mediq/PRN Life Support Services, Inc., 11 1/8%, 1999 472,500 127
800M National Medical Enterprises, Inc., 10 1/8%, 2005 850,000 229
- ------------------------------------------------------------------------------------------------
3,849,625 1,037
- ------------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--11.1%
600M Adelphia Communications, Inc., 9 7/8%, 2005 534,000 144
1,000M Affiliated Newspaper Investments, 0%-13 1/4%, 2006 585,000 158
1,000M Bell Cablemedia, PLC., 0%-11.95%, 2004 672,500 181
500M Garden State Newspapers, Inc., 12%, 2004 502,500 135
750M Outdoor Systems, Inc., 10 3/4%, 2003 723,750 195
500M Rogers Cablesystems, Inc., 10%, 2005 515,625 139
600M World Color Press, Inc., 9 1/8%, 2003 591,000 159
- ------------------------------------------------------------------------------------------------
4,124,375 1,111
- ------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MINING/METALS--8.9%
$ 700M Carbide/Graphite Group, Inc., 11 1/2%, 2003 $ 738,500 $ 199
800M Gulf States Steel, Inc., 13 1/2%, 2003 (Note 5) 780,000 210
900M WCI Steel, Inc., 10 1/2%, 2002 882,000 237
1,000M Wheeling-Pittsburgh Steel Corp., 9 3/8%, 2003 912,500 246
- ------------------------------------------------------------------------------------------------
3,313,000 892
- ------------------------------------------------------------------------------------------------
MISCELLANEOUS--3.0%
800M +Acme Holdings, Inc., 11 3/4%, 2000 408,000 110
700M Monarch Acquisition Corp., 12 1/2%, 2003 (Note 5) 703,500 189
- ------------------------------------------------------------------------------------------------
1,111,500 299
- ------------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--8.7%
500M Gaylord Container Corp., 11 1/2%, 2001 533,750 144
800M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 836,000 225
800M S.D. Warren Co., Inc., 12%, 2004 868,000 234
1,000M Stone Container Corp., 9 7/8%, 2001 997,500 268
- ------------------------------------------------------------------------------------------------
3,235,250 871
- ------------------------------------------------------------------------------------------------
REAL ESTATE/CONSTRUCTION--1.1%
450M Oriole Homes, Inc., 12 1/2%, 2003 394,875 106
- ------------------------------------------------------------------------------------------------
RETAIL-FOOD/DRUG--2.3%
800M P&C Food Markets, Inc., 11 1/2%, 2001 838,000 226
- ------------------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--2.0%
1M Barry's Jewelers, Inc., 12 5/8%, 1996 323 --
750M General Host Co., Inc., 11 1/2%, 2002 753,750 203
- ------------------------------------------------------------------------------------------------
754,073 203
- ------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.2%
1,400M Echostar Communications Corp., 0%-12 7/8%, 2004 682,500 184
550M Paging Network, Inc., 11 3/4%, 2002 594,688 160
400M PanAmSat Capital Corp., 0%-11 3/8%, 2003 288,000 78
- ------------------------------------------------------------------------------------------------
1,565,188 422
- ------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--HIGH YIELD SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
AMOUNT, INVESTED
SHARES FOR EACH
OR $10,000 OF
WARRANTS SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--1.3%
$ 500M Trism, Inc., 10 3/4%, 2000 $ 487,500 $ 131
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $33,441,120) 32,939,084 8,871
- ------------------------------------------------------------------------------------------------
COMMON STOCKS--.3%
FINANCIAL SERVICES--.2%
4,000 *Olympic Financial, Ltd. (Note 4) 66,749 19
- ------------------------------------------------------------------------------------------------
GAMING/LODGING--.0%
1,620 *Divi Hotels, Inc. (Note 4) 122 --
2,000 *Goldriver Hotel & Casino Corp., Series "B" 3,000 --
- ------------------------------------------------------------------------------------------------
3,122 --
- ------------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--.1%
1,000 *Affiliated Newspaper Investments 25,000 7
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $85,096) 94,871 26
- ------------------------------------------------------------------------------------------------
PREFERRED STOCKS--6.5%
FINANCIAL SERVICES--4.9%
7,000 California Federal Bank, 10 5/8%, Series "B" 749,000 202
10,000 First Nationwide Bank, 11 1/2% 1,076,250 290
- ------------------------------------------------------------------------------------------------
1,825,250 492
- ------------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.8%
10,800 S.D. Warren Co., Inc., 14% 307,800 82
- ------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.8%
300 PanAmSat Capital Corp., 12 3/4% 300,750 81
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $2,299,700) 2,433,800 655
- ------------------------------------------------------------------------------------------------
WARRANTS--.5%
FINANCIAL SERVICES--.0%
18 *Reliance Group Holdings, Inc. (expiring 1/28/97) 29 --
- ------------------------------------------------------------------------------------------------
GAMING/LODGING--.0%
200 *Goldriver Finance Corp., Liquidating Trust 3,000 1
4,200 *President Riverboat Casinos, Inc. (expiring 9/23/96) (Note
5) 16,800 5
- ------------------------------------------------------------------------------------------------
19,800 6
- ------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
PAPER/FOREST PRODUCTS--.2%
10,800 *S.D. Warren Co., Inc. (expiring 12/15/06) $ 64,800 $ 17
- ------------------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--.0%
100 *Payless Cashways, Inc. (expiring 11/1/96) 25 --
- ------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.3%
8,400 *Echostar Communications Corp. (expiring 6/1/04) 94,500 25
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $5,375) 179,154 48
- ------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.7%
$ 750M Ford Motor Credit Corporation, 5.95%, 7/7/95 749,256 202
250M New England Loan, 6.28%, 7/5/95 249,826 67
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $999,082) 999,082 269
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $36,830,373) 98.7 % 36,645,991 9,869
OTHER ASSETS, LESS LIABILITIES 1.3 485,620 131
- --------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $37,131,611 $10,000
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
*Non-income producing
+In default as to principal and\or interest(Note 8)
</TABLE>
See notes to financial statements 33
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--93.8%
UNITED STATES--22.6%
6,500 A T & T Corp. $ 345,313 $ 101
3,750 American International Group, Inc. 427,500 124
6,500 American Re Corp. 242,125 70
3,000 *AMR Corp. 223,875 65
35,000 Canadian Pacific Ltd. 608,125 177
2,000 Capital Cities ABC, Inc. 216,000 63
2,500 Dow Chemical Company 179,688 52
7,000 Exxon Corporation 494,375 144
2,500 Federal National Mortgage Association 235,938 69
5,000 General Electric Company 281,875 82
5,000 Gillette Company 223,125 65
4,000 Hewlett-Packard Co. 298,000 87
2,500 International Paper Co. 214,375 62
9,500 J.C. Penney Company 456,000 133
6,000 Johnson & Johnson 405,750 118
7,000 Kimberly Clark Corporation 419,125 122
10,000 MCI Communications 220,000 64
4,000 Minnesota Mining & Manufacturing Company 229,000 67
5,000 PepsiCo, Inc. 228,125 66
18,000 Unocal Corporation 497,250 145
696 *Viacom Inc., Class "A" 32,364 9
8,273 *Viacom Inc., Class "B" 383,660 112
20,000 Wal-Mart Stores 535,000 156
8,300 York International Corporation 373,500 109
- ----------------------------------------------------------------------------------------------------------------
7,770,088 2,262
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
JAPAN--13.4%
50,000 Chichibu Onoda Cement Co. $ 227,325 $ 66
30,000 Hitachi Co., Ltd. 298,584 87
2,000 Ito Yokado Co., Ltd. 105,300 30
9,000 Kokusai Electric Co., Ltd. 167,491 49
3,000 Kyocera Corp. 246,643 72
1,000 Kyoritsu Air Tech., Inc. 13,663 4
2,000 Mabuchi Motor Co., Ltd. 137,574 40
40,000 Minebea Co., Ltd. 256,300 74
28,000 Mitsui Petrochemical Industries 211,730 61
2,000 Murata Mfg. Co., Ltd. 75,618 22
1,000 Nihon Jumbo Co., Ltd. 28,151 8
25 Nippon Telegraph & Telephone Corp. 209,070 61
92,000 *NKK Corp. 215,639 63
10,000 Nomura Securities Co., Ltd. 174,322 51
6,000 Orix Corp. 199,293 58
2,000 Riso Kagaku Corp. 139,223 40
15,000 Sakura Bank, Ltd. 156,360 46
1,000 Sankyo Co., Ltd. 23,204 7
2,500 Sanyo Shinpan Finance Co., Ltd. 182,568 53
2,000 Secom Co., Ltd. 125,559 37
4,400 Shimamura Corp. 155,477 45
30,000 Showa Corporation 197,877 58
6,000 Sony Corp. 287,632 84
35,000 Sumitomo Realty & Development 208,597 61
21,000 Sumitomo Trust and Banking 254,770 74
7,000 TDK Corp. 318,256 93
- ----------------------------------------------------------------------------------------------------------------
4,616,226 1,344
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED KINGDOM--7.6%
14,000 Abbey National PLC $ 104,236 $ 30
45,000 Bass PLC 430,614 126
212,000 BET PLC 414,842 122
15,000 British Telecommunications PLC 93,545 27
54,560 Cadbury Schweppes PLC (6,571 shares restricted) (Note 4) 398,408 116
50,512 Redland PLC 331,081 96
75,000 Royal Insurance Holdings PLC 368,685 107
45,000 Smith (W.H.) & Son Group "A" PLC 234,815 68
72,000 Tomkins PLC 257,724 75
- ----------------------------------------------------------------------------------------------------------------
2,633,950 767
- ----------------------------------------------------------------------------------------------------------------
FRANCE--6.9%
1,000 Canal Plus SA 137,184 40
3,117 Compagnie De Saint Gobain 376,805 110
1,528 EURO RSCG WORLDWIDE SA 159,813 47
1,019 Groupe Danone 171,532 50
7,600 Renault SA 238,308 69
5,034 Societe Generale Paris 588,812 171
4,200 Technip SA 261,660 76
5,122 Total SA 308,533 90
1,800 Ugine SA (Note 5) 126,622 37
- ----------------------------------------------------------------------------------------------------------------
2,369,269 690
- ----------------------------------------------------------------------------------------------------------------
NETHERLANDS--5.4%
30,000 Elsevier NV CVA 354,075 103
10,301 International Nederlanden CVA 569,359 166
3,000 Royal Dutch Petroleum 366,074 107
2,500 Unilever NV CVA 325,055 95
9,000 *Vendex International NV (BDR) 237,986 69
- ----------------------------------------------------------------------------------------------------------------
1,852,549 540
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NORWAY--4.2%
12,378 Hafslund Nyco Series "A" Free $ 291,127 $ 85
7,500 Kvaerner AS A 340,632 99
9,000 Orkla Series AS A 402,919 117
29,000 Saga Petroleum Series "A" Free 411,597 120
- ----------------------------------------------------------------------------------------------------------------
1,446,275 421
- ----------------------------------------------------------------------------------------------------------------
AUSTRALIA--3.9%
20,000 Advance Bank of Australia 128,864 38
50,892 Amcor Ltd. 374,442 109
35,159 Australian & New Zealand Banking Group 124,606 36
37,119 Broken Hill Proprietary Ltd. 455,706 133
16,246 National Australia Bank Ltd. 128,053 37
67,492 Pacific Dunlop Ltd. 141,605 41
- ----------------------------------------------------------------------------------------------------------------
1,353,276 394
- ----------------------------------------------------------------------------------------------------------------
HONG KONG--3.3%
117,000 Cathay Pacific Airways Ltd. 170,867 50
92,000 Hong Kong Telecom 181,912 53
42,000 Hutchison Whampoa Ltd. 203,007 59
30,000 Sun Hung Kai Properties 221,970 65
34,000 Swire Pacific Class "A" 259,253 75
30,000 Wharf Holdings 97,899 28
- ----------------------------------------------------------------------------------------------------------------
1,134,908 330
- ----------------------------------------------------------------------------------------------------------------
SPAIN--3.2%
14,000 Banco Bilbao Vizcaya 404,079 118
4,000 Empresa Nacional De Electricidad S.A. 197,539 57
4,000 Empresa Nacional De Electricidad S.A. (ADR) 197,000 57
10,000 Repsol S.A. (ADR) 316,250 92
- ----------------------------------------------------------------------------------------------------------------
1,114,868 324
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SWITZERLAND--3.1%
500 Ciba Geigy AG Regd $ 366,283 $ 107
400 Nestle S.A. Regd 416,278 121
800 Schw Bankverein Br 283,305 82
- ----------------------------------------------------------------------------------------------------------------
1,065,866 310
- ----------------------------------------------------------------------------------------------------------------
SINGAPORE--3.0%
34,000 Development Bank of Singapore 386,828 113
55,000 Keppel Corp. 448,652 131
18,000 Overseas Chinese Banking Corp. Ltd. 199,640 58
- ----------------------------------------------------------------------------------------------------------------
1,035,120 302
- ----------------------------------------------------------------------------------------------------------------
GERMANY--2.8%
1,300 Bayer AG 323,093 94
1,350 Mannesmann AG 412,084 120
550 Veba AG 215,769 63
- ----------------------------------------------------------------------------------------------------------------
950,946 277
- ----------------------------------------------------------------------------------------------------------------
NEW ZEALAND--2.4%
473,000 Brierley Investments Ltd. 357,162 104
84,000 Carter Holt Havley Ltd. 205,439 60
60,000 Lion Nathan Ltd. 118,680 35
38,000 Telecom Corp New Zealand Ltd. (Note 5) 142,200 41
- ----------------------------------------------------------------------------------------------------------------
823,481 240
- ----------------------------------------------------------------------------------------------------------------
DENMARK--2.0%
24,700 Tele Danmark A/S (ADS) "B" 691,600 201
- ----------------------------------------------------------------------------------------------------------------
SWEDEN--2.0%
10,100 Astra AB Series "A" Free 311,394 91
17,000 Pharmacia AB Series "A" Free 372,377 108
- ----------------------------------------------------------------------------------------------------------------
683,771 199
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MALAYSIA--1.9%
98,000 Sime Darby Berhad $ 273,332 $ 80
23,000 Telekom Malaysia 174,529 51
50,000 Tenaga Nasional Berhad 204,060 59
- ----------------------------------------------------------------------------------------------------------------
651,921 190
- ----------------------------------------------------------------------------------------------------------------
AUSTRIA--1.2%
2,900 EVN 405,486 118
- ----------------------------------------------------------------------------------------------------------------
ITALY--.9%
110,000 Telecom Italia S.P.A. 298,012 86
- ----------------------------------------------------------------------------------------------------------------
CANADA--.9%
20,000 Westcoast Energy, Inc. 296,606 86
- ----------------------------------------------------------------------------------------------------------------
MEXICO--.7%
20,000 Kimberly Clark Mexican Class "A" 229,724 67
- ----------------------------------------------------------------------------------------------------------------
PORTUGAL--.6%
10,700 *Portugal Telecom (ADS) 203,300 59
- ----------------------------------------------------------------------------------------------------------------
BELGIUM--.5%
4,000 Delhaize Le Lion 179,916 52
- ----------------------------------------------------------------------------------------------------------------
PHILLIPINES--.5%
204,600 Pilipino Telephone (When-Issued) 161,820 47
- ----------------------------------------------------------------------------------------------------------------
CHILI--.4%
1,500 Compania De Telefonos De Chile S.A. (ADR) 122,062 35
- ----------------------------------------------------------------------------------------------------------------
ARGENTINA--.3%
5,000 YPF S.A. Class "D" (ADR) 94,374 27
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INDIA--.1%
2,000 ITC Ltd. (GDR) (Note 5) $ 15,414 $ 4
1,000 Reliance Industries Ltd. (GDR) (Note 5) 16,815 5
- ----------------------------------------------------------------------------------------------------------------
32,229 9
- ----------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $28,131,873) 32,217,643 9,377
- ----------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--3.8%
$ 450M United States Treasury Bill, 5.59%, 7/27/95 448,183 131
400M United States Treasury Bill, 5.65%, 7/27/95 398,368 116
475M United States Treasury Bill, 5.655%, 7/27/95 473,060 137
- ----------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT OBLIGATIONS (cost $1,319,611) 1,319,611 384
- ----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--1.4%
486M Paine Webber Inc., 6.2%, 7/3/95 (collateralized by U.S. Treasury Notes
7 1/4%, 5/15/2016) (cost $486,000) 486,000 142
- ----------------------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $29,937,484) 99.0% 34,023,254 9,903
OTHER ASSETS, LESS LIABILITIES 1.0 334,345 97
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $34,357,599 $ 10,000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
40 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INTERNATIONAL SECURITIES SERIES
At June 30, 1995, sector diversification of the portfolio was as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
PERCENTAGE
SECTOR DIVERSIFICATION OF NET ASSETS VALUE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Financial Services................................................................ 9.4% $ 3,248,145
Telecommunications................................................................ 8.3 2,837,300
Food/Beverage/Tobacco............................................................. 6.8 2,321,014
Drugs............................................................................. 6.1 2,093,228
Utilities......................................................................... 4.4 1,516,460
Industrial Services............................................................... 4.2 1,441,229
Electrical Equipment.............................................................. 3.9 1,334,642
Energy............................................................................ 3.7 1,271,073
Retail/General Merchandise........................................................ 3.5 1,187,717
Finance........................................................................... 3.2 1,088,437
Automotive........................................................................ 3.1 1,066,679
Insurance......................................................................... 3.0 1,038,310
Paper/Forest products............................................................. 3.0 1,023,980
Transportation.................................................................... 2.9 1,002,867
Household Products................................................................ 2.8 967,305
Media/Cable/Television............................................................ 2.7 938,958
Energy Exploration/Production..................................................... 2.6 908,847
Electronics/Instruments/Components................................................ 2.5 845,938
Retail Trade...................................................................... 2.1 716,777
Conglomerates..................................................................... 2.1 707,905
Metals/Miscellaneous.............................................................. 1.7 582,328
Building Materials................................................................ 1.6 556,271
Manufacturing/Diversified......................................................... 1.6 553,689
Real Estate/Construction.......................................................... 1.6 547,194
Entertainment..................................................................... 1.2 416,024
Chemicals......................................................................... 1.2 408,233
Machinery/Diversified............................................................. 1.1 395,523
Electronics/Instrumentation....................................................... 0.9 318,256
Natural Gas....................................................................... 0.9 308,533
Basic Industry.................................................................... 0.7 229,000
Housing........................................................................... 0.6 208,597
Broadcast Media................................................................... 0.4 137,184
Repurchase Agreements............................................................. 1.4 486,000
U.S. Government Obligations....................................................... 3.8 1,319,611
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS................................................................. 99.0 34,023,254
OTHER ASSETS, LESS LIABILITIES.................................................... 1.0 334,345
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS........................................................................ 100.0% $34,357,599
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements 41
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INVESTMENT GRADE SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--77.3%
AEROSPACE/DEFENSE--6.0%
$ 300M Boeing Co., 6.35%, 2003 $ 294,202 $ 217
250M Lockheed Corp., 6 3/4%, 2003 250,029 185
250M Rockwell International Corp., 8 3/8%, 2001 272,629 201
- ------------------------------------------------------------------------------------------
816,860 603
- ------------------------------------------------------------------------------------------
BUILDING MATERIALS--.8%
100M Masco Corp., 9%, 2001 111,695 82
- ------------------------------------------------------------------------------------------
CONGLOMERATES--4.3%
300M Hanson Overseas, B.V., 7 3/8%, 2003 310,378 229
250M Tenneco, Inc., 7 7/8%, 2002 264,987 196
- ------------------------------------------------------------------------------------------
575,365 425
- ------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--2.4%
300M American Home Products Corp., 7.90%, 2005 320,751 237
- ------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--1.9%
250M Mattel, Inc., 6 3/4%, 2000 250,567 185
- ------------------------------------------------------------------------------------------
ELECTRIC & GAS UTILITIES--15.0%
250M Baltimore Gas & Electric Co., 6 1/2%, 2003 246,771 182
200M Carolina Power & Light Co., 7 3/4%, 2003 204,064 151
250M Duke Power Co., 5 7/8%, 2003 236,240 174
200M Kansas Gas & Electric Co., 7.60%, 2003 207,682 153
75M Old Dominion Electric Cooperative, 7.97%, 2002 79,633 59
300M Pennsylvania Power & Light Co., 6 7/8%, 2003 297,220 219
250M Philadelphia Electric Co., 8%, 2002 264,960 196
200M SCE Capital Corp., 7 3/8%, 2003 204,452 151
75M Southwestern Electric Power Co., 7%, 2007 75,497 56
200M Unicom Corporation, 8 1/4%, 2006 212,861 157
- ------------------------------------------------------------------------------------------
2,029,380 1,498
- ------------------------------------------------------------------------------------------
ENERGY--2.4%
300M Baroid Corp., 8%, 2003 324,532 240
- ------------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL SERVICES--12.4%
$ 75M Banc One Corp., 7 1/4%, 2002 $ 76,967 $ 57
40M BankAmerica Corp., 9 1/2%, 2001 45,189 33
200M Barnett Banks, Inc., 8 1/2%, 1999 212,454 157
300M Chemical Bank, Inc., 7%, 2005 300,025 222
200M Citicorp, 8%, 2003 212,243 157
150M First Union Corp., 8 1/8%, 2002 160,790 119
250M Fleet Financial Group, 6 7/8%, 2003 247,958 183
250M Mellon Bank N.A., 6 1/2%, 2005 241,517 178
50M Meridian Bancorp, 7 7/8%, 2002 52,702 39
75M Morgan Guaranty Trust Co., 7 3/8%, 2002 78,279 58
50M Nationsbank Corporation., 8 1/8%, 2002 53,365 39
- ------------------------------------------------------------------------------------------
1,681,489 1,242
- ------------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--1.7%
25M Coca-Cola Enterprises, Inc., 7 7/8%, 2002 26,695 20
200M Philip Morris Cos., Inc., 7 1/8%, 2002 202,017 149
- ------------------------------------------------------------------------------------------
228,712 169
- ------------------------------------------------------------------------------------------
HEALTHCARE--1.3%
150M Healthtrust, Inc., 8 3/4%, 2005 168,750 125
- ------------------------------------------------------------------------------------------
INVESTMENT/FINANCE COMPANIES--7.0%
300M Associates Corp. of North America, 7 7/8%, 2001 318,462 235
300M General Electric Capital Corp., 7 7/8%, 2006 329,566 244
300M General Motors Acceptance Corp., 7 1/8%, 1999 305,363 225
- ------------------------------------------------------------------------------------------
953,391 704
- ------------------------------------------------------------------------------------------
OIL/NATURAL GAS--3.8%
250M BP America, Inc., 7 7/8%, 2002 267,364 197
250M Marathon Oil Co., 8 1/2%, 2000 250,520 185
- ------------------------------------------------------------------------------------------
517,884 382
- ------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--INVESTMENT GRADE SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
PAPER/FOREST PRODUCTS--4.0%
$ 100M S. D. Warren Company, 12%, 2004 $ 108,500 $ 80
150M Stone Container Corp., 10 3/4%, 2002 158,250 117
250M Temple Inland, Inc., 9%, 2001 279,059 206
- ------------------------------------------------------------------------------------------
545,809 403
- ------------------------------------------------------------------------------------------
RETAIL/GENERAL MERCHANDISE--1.8%
250M Penney J.C. & Co., 6 1/8%, 2003 238,846 176
- ------------------------------------------------------------------------------------------
TECHNOLOGY--3.9%
250M International Business Machines Corp., 6 3/8%,
2000 249,433 184
275M Xerox Corp., 7.15%, 2004 281,290 208
- ------------------------------------------------------------------------------------------
530,723 392
- ------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.5%
200M Tele-Communications, Inc., 8 1/4%, 2003 206,176 153
- ------------------------------------------------------------------------------------------
TELEPHONE--7.1%
100M Allnet Communication Services, Inc., 9%, 2003 106,625 79
30M GTE Corp., 8.85%, 1998 31,878 24
350M MCI Communication Corp., 7 1/2%, 2004 366,803 270
200M Pacific Bell Telephone Co., 7%, 2004 202,732 150
250M Southern Bell Telephone & Telegraph Co., Inc.,
8 1/8%, 2017 259,497 191
- ------------------------------------------------------------------------------------------
967,535 714
- ------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $10,331,472) 10,468,465 7,730
- ------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--2.2%
300M Federal Home Loan Mortgage Corp., 7.88%, 2004
(cost $300,000) 305,056 225
- ------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--9.5%
1,200M U.S. Treasury Note, 7 3/4%, 2000 (cost $1,280,312) 1,282,687 947
- ------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--8.3%
$ 800M A T & T Capital Corp., 5.95%, 7/14/95 $ 798,280 $ 589
325M Ford Motor Credit Corp., 5.97%, 7/7/95 324,674 240
- ------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$1,122,954) 1,122,954 829
- ------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $13,034,738) 97.3% 13,179,162 9,731
OTHER ASSETS, LESS LIABILITIES 2.7 364,256 269
- ------------------------------------------------------------------------------------------
NET ASSETS 100.0% $13,543,418 $10,000
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements 45
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--TARGET MATURITY 2007 SERIES
June 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON OBLIGATIONS--74.7%
$ 570M Agency For International Development-Israel ("AID"),
2/15/2007 $ 264,458 $1,409
119M Agency For International Development-Israel ("AID"),
3/15/2007 54,893 293
66M Federal Judiciary Office Building ("JOBS"), 8/15/2006 31,173 166
93M Financing Corporations ("FICOS"), 6/6/2007 41,063 219
109M Financing Corporations ("FICOS"), 12/6/2007 46,284 247
67M Financing Corporations ("FICOS"), 12/27/2007 28,318 151
175M Government Trust Certificate, 11/15/2006 82,217 438
526M Government Trust Certificate, 11/15/2007 229,236 1,222
95M International Bank for Reconstruction & Development,
2/15/2007 43,242 230
554M Resolution Funding Corporation, 10/15/2007 246,572 1,314
328M Tennessee Valley Authority, 4/15/2007 148,706 793
425M Tennessee Valley Authority, 10/15/2007 185,659 990
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS
(cost $1,367,107) 1,401,821 7,472
- ------------------------------------------------------------------------------------------------
UNITED STATES TREASURY ZERO COUPON OBLIGATIONS--14.8%
63M Certificate of Accrual on Treasury Securities ("CATS"),
11/15/2007 27,868 149
67M Coupon Under Book Entry System ("CUBES"), 11/15/2006 31,992 171
62M Treasury Investors Growth Receipts ("TIGERS"), 11/15/2007 27,398 146
62M Treasury Receipts, 11/15/2007 27,426 146
365M U.S. Treasury Strips, 11/15/2007 163,520 872
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF UNITED STATES TREASURY ZERO COUPON
OBLIGATIONS (cost $263,534) 278,204 1,484
- ------------------------------------------------------------------------------------------------
MUNICIPAL BONDS ZERO COUPON OBLIGATIONS--3.5%
MISCELLANEOUS
150M Los Angeles Cnty Calif. Pension Oblig., 6/30/2007 (cost
$63,222) 65,063 345
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $1,693,863) 93.0% 1,745,088 9,301
OTHER ASSETS, LESS LIABILITIES 7.0 131,183 699
- ------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,876,271 $10,000
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
</TABLE>
46 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--UTILITIES INCOME SERIES
June 30, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--91.7%
CONSUMER SERVICES--1.0%
3,500 *Tele-Communications, Inc. $ 82,031 $ 95
- --------------------------------------------------------------------------------------------------
ELECTRIC & GAS UTILITIES--.9%
3,500 Portland General Corporation 77,438 90
- --------------------------------------------------------------------------------------------------
ELECTRIC POWER--19.3%
2,500 Boston Edison Company 65,313 76
2,000 CMS Energy Corporation 49,250 57
7,000 DPL, Inc. 154,875 179
5,250 DQE, Inc. 123,375 143
2,000 Eastern Utilities Association 45,250 52
1,000 Empresa Nacional De Electricidad 49,250 57
5,000 General Public Utilities Corporation 148,750 172
4,000 Illinova Corporation 101,500 117
3,000 New England Electric System 103,500 120
3,000 NIPSCO Industries, Inc. 102,000 118
4,000 Northeast Utilities 90,000 104
6,500 Pinnacle West Capital Corporation 159,250 184
5,500 Public Service Company of Colorado 178,750 207
3,000 *Public Service Company of New Mexico 42,750 49
6,000 Teco Energy, Inc. 131,250 152
4,500 Wisconsin Energy Corporation 126,000 146
- --------------------------------------------------------------------------------------------------
1,671,063 1,933
- --------------------------------------------------------------------------------------------------
ENERGY--9.0%
400 Atlantic Richfield Company 43,900 51
3,500 Enron Corporation 122,938 143
400 Mobil Corporation 38,400 44
3,000 NICOR, Inc. 80,625 93
6,000 Pacific Enterprises 147,000 170
3,000 Panhandle Eastern Corporation 73,125 85
500 Royal Dutch Petroleum Company 60,938 70
3,500 Sonat, Inc. 106,750 123
3,000 Williams Companies, Inc. 104,624 121
- --------------------------------------------------------------------------------------------------
778,300 900
- --------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
PORTFOLIO OF INVESTMENTS
First Investors Life Series Fund--UTILITIES INCOME SERIES
June 30, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------------------
MISCELLANEOUS--1.3%
<C> <S> <C> <C>
2,500 Tenneco, Inc. $ 115,000 $ 133
- --------------------------------------------------------------------------------------------------
NATURAL GAS--8.0%
3,000 Atlanta Gas Light Company 104,250 121
3,000 Brooklyn Union Gas Company 78,750 91
4,500 MCN Corporation 88,875 103
2,000 National Fuel Gas Company 57,250 66
4,000 New Jersey Resources Corporation 92,500 107
3,500 Piedmont Natural Gas Company 72,625 84
4,500 UGI Corporation 95,063 110
2,500 Washington Energy Company 40,937 47
2,000 Wicor, Inc. 56,250 65
- --------------------------------------------------------------------------------------------------
686,500 794
- --------------------------------------------------------------------------------------------------
RAILROADS--.8%
2,500 Questar Corporation 71,875 83
- --------------------------------------------------------------------------------------------------
TECHNOLOGY--5.7%
5,000 *Airtouch Communications, Inc. 142,500 165
3,000 A T & T Corp. 159,375 184
4,000 MCI Communications Corporation 88,000 102
3,000 Sprint Corporation 100,875 117
- --------------------------------------------------------------------------------------------------
490,750 568
- --------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--3.5%
5,000 *Mobile Telecommunication Technologies Corporation 136,875 158
2,500 *Paging Network, Inc. 85,625 99
3,000 WorldCom, Inc. 81,000 94
- --------------------------------------------------------------------------------------------------
303,500 351
- --------------------------------------------------------------------------------------------------
TELEPHONE/UTILITIES--2.1%
2,500 Frontier Corporation 60,000 69
2,000 *MFS Communications Company, Inc. 64,500 75
1,500 Telefonica De Espana (ADR) 58,125 67
- --------------------------------------------------------------------------------------------------
182,625 211
- --------------------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
SHARES OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES--40.1%
3,500 American Electric Power Company $ 122,937 $ 143
4,000 Ameritech Corporation 176,000 204
5,000 Baltimore Gas & Electric Company 125,000 145
4,000 Bell Atlantic Corporation 224,000 259
3,500 BellSouth Corporation 222,250 258
3,500 Carolina Power & Light Company 105,875 122
5,500 Cinergy Corporation 144,375 167
3,500 Detroit Edison Company 103,250 119
4,500 Duke Power Company 186,750 216
5,500 FPL Group, Inc. 212,437 246
7,000 GTE Corporation 238,875 276
4,000 Houston Industries, Inc. 168,500 195
3,000 Northern States Power Company 138,375 160
2,500 NYNEX Corporation 100,625 116
3,000 Ohio Edison Company 67,875 78
7,500 PacifiCorp 140,625 163
4,000 Peco Energy Company 110,500 128
4,500 Public Service Enterprise Group, Inc. 124,875 144
4,000 SBC Communications, Inc. 190,500 220
4,500 SCE Corp. 77,063 89
6,500 Southern Company 145,437 168
3,000 Texas Utilities Company 103,125 119
3,500 Unicom Corporation 93,188 108
3,500 US West, Inc. 145,687 167
- --------------------------------------------------------------------------------------------------
3,468,124 4,010
- --------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $7,486,027) 7,927,206 9,168
- --------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.4%
$ 100M Ford Motor Credit Corporation, 5.97%, 7/19/95 99,702 115
200M General Electric Credit Corporation, 5.85%, 7/6/95 199,837 231
- --------------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $299,539) 299,539 346
- --------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $7,785,566) 95.1% 8,226,745 9,514
OTHER ASSETS, LESS LIABILITIES 4.9 420,054 486
- --------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 8,646,799 $10,000
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
See notes to financial statements 49
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS LIFE SERIES FUND
June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities:
At identified cost......................... $ 45,131,788 $ 4,075,481 $32,654,581 $ 8,752,642
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
At value (Note 1A)......................... $ 52,096,859 $ 4,075,481 $39,072,752 $ 8,825,018
Cash......................................... 269,144 13,833 382,276 160,267
Receivables:
Trust shares sold.......................... 220,212 11,575 148,587 21,579
Investment securities sold................. 252,152 -- 243,950 --
Interest and dividends..................... 90,076 -- 7,664 118,013
Other assets................................. 4,969 2,080 4,552 933
------------ ----------- ----------- -----------
Total Assets................................. 52,933,412 4,102,969 39,859,781 9,125,810
------------ ----------- ----------- -----------
LIABILITIES
Payables:
Investment securities purchased............ 662,912 -- 735,725 --
Trust shares redeemed...................... -- -- 352 767
Dividend payable........................... -- 18,335 -- --
Accrued advisory fee......................... 37,389 1,188 23,705 2,636
Accrued expenses............................. 737 987 730 933
------------ ----------- ----------- -----------
Total Liabilities............................ 701,038 20,510 760,512 4,336
------------ ----------- ----------- -----------
NET ASSETS................................... $ 52,232,374 $ 4,082,459 $39,099,269 $ 9,121,474
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
NET ASSETS CONSIST OF:
Capital paid in.............................. $ 44,273,674 $ 4,082,459 $33,274,962 $ 9,381,831
Undistributed net investment income.......... 485,292 -- 103,838 293,079
Accumulated net realized gain (loss) on
investments and foreign currencies......... 508,337 -- (697,702) (625,812)
Net unrealized appreciation (depreciation) of
investments and foreign currency related
transactions............................... 6,965,071 -- 6,418,171 72,376
------------ ----------- ----------- -----------
Total........................................ $ 52,232,374 $ 4,082,459 $39,099,269 $ 9,121,474
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING
(Note 2)................................... 3,496,919 4,082,459 1,830,046 914,605
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE (Net assets divided by
shares outstanding)........................ $14.94 $1.00 $21.37 $9.97
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
</TABLE>
50 See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL INVESTMENT TARGET UTILITIES
GROWTH HIGH YIELD SECURITIES GRADE MATURITY 2007 INCOME
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$34,821,466 $36,830,373 $ 29,937,484 $13,034,738 $ 1,693,863 $ 7,785,566
----------- ----------- ------------- ----------- ------------- -----------
----------- ----------- ------------- ----------- ------------- -----------
$40,871,450 $36,645,991 $ 34,023,254 $13,179,162 $ 1,745,088 $ 8,226,745
102,449 284,886 34,661 80,680 66,519 264,754
185,901 61,094 210,272 49,102 130,280 83,045
13,485 -- 610,101 -- -- 47,858
82,279 695,543 124,191 239,063 -- 26,705
4,238 4,413 3,599 1,234 510 665
----------- ----------- ------------- ----------- ------------- -----------
41,259,802 37,691,927 35,006,078 13,549,241 1,942,397 8,649,772
----------- ----------- ------------- ----------- ------------- -----------
-- 530,861 610,001 -- 65,616 --
-- 2,052 3,446 -- -- --
-- -- -- -- -- --
25,114 23,065 21,363 3,883 -- 2,413
3,173 4,338 13,669 1,940 510 560
----------- ----------- ------------- ----------- ------------- -----------
28,287 560,316 648,479 5,823 66,126 2,973
----------- ----------- ------------- ----------- ------------- -----------
$41,231,515 $37,131,611 $ 34,357,599 $13,543,418 $ 1,876,271 $ 8,646,799
----------- ----------- ------------- ----------- ------------- -----------
----------- ----------- ------------- ----------- ------------- -----------
$34,634,131 $36,346,623 $ 29,682,703 $13,055,300 $ 1,814,384 $ 8,194,363
198,806 1,755,094 331,822 421,550 9,951 145,753
348,594 (785,724) 252,805 (77,856) 711 (134,496)
6,049,984 (184,382) 4,090,269 144,424 51,225 441,179
----------- ----------- ------------- ----------- ------------- -----------
$41,231,515 $37,131,611 $ 34,357,599 $13,543,418 $ 1,876,271 $ 8,646,799
----------- ----------- ------------- ----------- ------------- -----------
----------- ----------- ------------- ----------- ------------- -----------
2,182,733 3,450,845 2,426,848 1,233,501 170,938 861,787
----------- ----------- ------------- ----------- ------------- -----------
----------- ----------- ------------- ----------- ------------- -----------
$18.89 $10.76 $14.16 $10.98 $10.98 $10.03
----------- ----------- ------------- ----------- ------------- -----------
----------- ----------- ------------- ----------- ------------- -----------
</TABLE>
51
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS LIFE SERIES FUND
Six Months ended June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest.............................. $ 143,558 $ 121,367 $ 182,095 $ 308,541
Dividends............................. 539,485 -- 65,068 --
Consent fees.......................... -- -- -- --
---------- ---------- ---------- ----------
Total income............................ 683,043 121,367 247,163 308,541
---------- ---------- ---------- ----------
Expenses:
Advisory fee (Note 6)................. 173,933 15,177 126,703 31,578
Professional fees..................... 6,695 2,364 4,563 3,833
Reports to shareholders............... 7,790 736 5,627 1,466
Custodian fees........................ 5 2,248 163 --
Other expenses........................ 7,694 581 5,779 1,455
---------- ---------- ---------- ----------
Total expenses.......................... 196,117 21,106 142,835 38,332
Less: Expenses waived or assumed (Note
6).................................. -- 9,070 -- 23,595
---------- ---------- ---------- ----------
Expenses--net........................... 196,117 12,036 142,835 14,737
---------- ---------- ---------- ----------
Net investment income................... 486,926 109,331 104,328 293,804
---------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES (Note 3):
Net realized gain (loss) on investments
and foreign currencies................ 509,385 -- (697,154) 162,382
Net unrealized appreciation of
investments and foreign currency
related transactions.................. 6,611,273 -- 5,445,027 315,853
---------- ---------- ---------- ----------
Net gain on investments................. 7,120,658 -- 4,747,873 478,235
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $7,607,584 $ 109,331 $4,852,201 $ 772,039
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
+Net of $22,045 foreign taxes withheld
(a)Includes $5,323 of net unrealized appreciation on foreign currency
transactions
*From April 25, 1995 (commencement of operations) to June 30, 1995
52 See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TARGET
INTERNATIONAL INVESTMENT MATURITY UTILITIES
GROWTH HIGH YIELD SECURITIES GRADE 2007 INCOME
*
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 62,160 $1,799,677 $ 72,423 $ 452,640 $ 9,951 $ 21,290
297,461 94,779 427,353+ -- -- 136,309
-- 10,537 -- -- -- --
---------- ---------- ------------- ---------- --------- ---------
359,621 1,904,993 499,776 452,640 9,951 157,599
---------- ---------- ------------- ---------- --------- ---------
136,284 130,208 121,094 46,605 1,578 24,406
7,234 6,197 7,915 5,024 -- 1,439
6,075 6,524 5,743 2,671 -- 900
4,982 -- 23,278 3 -- --
6,547 4,505 4,557 1,618 510 1,173
---------- ---------- ------------- ---------- --------- ---------
161,122 147,434 162,587 55,921 2,088 27,918
-- -- -- 24,856 2,088 16,528
---------- ---------- ------------- ---------- --------- ---------
161,122 147,434 162,587 31,065 -- 11,390
---------- ---------- ------------- ---------- --------- ---------
198,499 1,757,559 337,189 421,575 9,951 146,209
---------- ---------- ------------- ---------- --------- ---------
400,178 302,800 249,700 (30,316) 711 (34,421)
4,716,892 1,677,843 1,895,911(a) 1,013,135 51,225 575,889
---------- ---------- ------------- ---------- --------- ---------
5,117,070 1,980,643 2,145,611 982,819 51,936 541,468
---------- ---------- ------------- ---------- --------- ---------
$5,315,569 $3,738,202 $ 2,482,800 $1,404,394 $ 61,887 $ 687,677
---------- ---------- ------------- ---------- --------- ---------
---------- ---------- ------------- ---------- --------- ---------
</TABLE>
53
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS LIFE SERIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP CASH MANAGEMENT
-------------------------- ------------------------
1/1/95 to 1/1/95 to
6/30/95 1994 6/30/95 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................ $ 486,926 $ 568,219 $ 109,331 $ 144,250
Net realized gain (loss) on investments and foreign
currencies......................................... 509,385 2,931,871 -- 61
Net unrealized appreciation (depreciation) of
investments and foreign currency related
transactions....................................... 6,611,273 (4,069,423) -- --
------------ ------------ ----------- -----------
Net increase (decrease) in net assets resulting
from operations.................................. 7,607,584 (569,333) 109,331 144,311
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................ (569,705) (204,030) (109,331) (144,311)
Net realized gain on investments..................... (2,922,430) (416,537) -- --
------------ ------------ ----------- -----------
Total distributions................................ (3,492,135) (620,567) (109,331) (144,311)
------------ ------------ ----------- -----------
TRUST SHARE TRANSACTIONS (a)
Issued............................................... 4,240,735 9,253,157 697,204 828,637
Issued on reinvestments.............................. 3,492,135 620,566 91,068 144,311
Redeemed............................................. (1,040,246) (1,289,081) (634,368) (1,286,977)
------------ ------------ ----------- -----------
Net increase (decrease) from trust share
transactions..................................... 6,692,624 8,584,642 153,904 (314,029)
------------ ------------ ----------- -----------
Net increase (decrease) in net assets.............. 10,808,073 7,394,742 153,904 (314,029)
NET ASSETS
Beginning of period.................................. 41,424,301 34,029,559 3,928,555 4,242,584
------------ ------------ ----------- -----------
End of period+....................................... $ 52,232,374 $ 41,424,301 $ 4,082,459 $ 3,928,555
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
+Includes undistributed net investment income of....... $ 485,292 $ 568,071 $ -- $ --
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
(a)TRUST SHARES ISSUED AND REDEEMED
Issued............................................... 297,157 664,327 697,204 828,637
Issued on reinvestments.............................. 261,976 45,969 91,068 144,311
Redeemed............................................. (74,498) (92,113) (634,368) (1,286,977)
------------ ------------ ----------- -----------
Increase (decrease) in shares...................... 484,635 618,183 153,904 (314,029)
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
54 See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCOVERY GOVERNMENT GROWTH
-------------------------- ------------------------ --------------------------
1/1/95 to 1/1/95 to 1/1/95 to
6/30/95 1994 6/30/95 1994 6/30/95 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 104,328 $ 93,202 $ 293,804 $ 530,105 $ 198,499 $ 176,061
(697,154) 1,992,419 162,382 (786,678) 400,178 555,580
5,445,027 (2,687,366) 315,853 (75,120) 4,716,892 (1,490,527)
------------ ------------ ----------- ----------- ------------ ------------
4,852,201 (601,745) 772,039 (331,693) 5,315,569 (758,886)
------------ ------------ ----------- ----------- ------------ ------------
(93,692) -- (507,584) (84,143) (175,754) --
(1,992,932) (1,014,247) -- (138,692) (591,906) (336,304)
------------ ------------ ----------- ----------- ------------ ------------
(2,086,624) (1,014,247) (507,584) (222,835) (767,660) (336,304)
------------ ------------ ----------- ----------- ------------ ------------
4,856,650 10,106,014 965,506 1,488,126 3,973,204 8,593,462
2,086,624 1,014,247 507,584 222,836 767,659 336,304
(853,196) (481,564) (494,034) (1,512,005) (854,449) (695,724)
------------ ------------ ----------- ----------- ------------ ------------
6,090,078 10,638,697 979,056 198,957 3,886,414 8,234,042
------------ ------------ ----------- ----------- ------------ ------------
8,855,655 9,022,705 1,243,511 (355,571) 8,434,323 7,138,852
30,243,614 21,220,909 7,877,963 8,233,534 32,797,192 25,658,340
------------ ------------ ----------- ----------- ------------ ------------
$ 39,099,269 $ 30,243,614 $ 9,121,474 $ 7,877,963 $ 41,231,515 $ 32,797,192
------------ ------------ ----------- ----------- ------------ ------------
------------ ------------ ----------- ----------- ------------ ------------
$ 103,838 $ 93,202 $ 293,079 $ 506,859 $ 198,806 $ 176,061
------------ ------------ ----------- ----------- ------------ ------------
------------ ------------ ----------- ----------- ------------ ------------
241,717 501,020 99,991 151,268 225,485 510,485
109,304 51,897 53,999 22,959 45,612 20,645
(43,445) (24,001) (51,314) (152,565) (48,845) (41,089)
------------ ------------ ----------- ----------- ------------ ------------
307,576 528,916 102,676 21,662 222,252 490,041
------------ ------------ ----------- ----------- ------------ ------------
------------ ------------ ----------- ----------- ------------ ------------
</TABLE>
55
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS LIFE SERIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD INTERNATIONAL SECURITIES
-------------------------- --------------------------
1/1/95 to 1/1/95 to
6/30/95 1994 6/30/95 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................ $ 1,757,559 $ 2,971,391 $ 337,189 $ 331,106
Net realized gain (loss) on investments and foreign
currencies......................................... 302,800 (106,914) 249,700 913,209
Net unrealized appreciation (depreciation) of
investments and foreign currency related
transactions....................................... 1,677,843 (3,352,582) 1,895,911 (1,619,867)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations.................................. 3,738,202 (488,105) 2,482,800 (375,552)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................ (2,973,759) (1,135,309) (284,370) (87,059)
Net realized gain on investments..................... -- -- (601,918) --
------------ ------------ ------------ ------------
Total distributions................................ (2,973,759) (1,135,309) (886,288) (87,059)
------------ ------------ ------------ ------------
TRUST SHARE TRANSACTIONS (a)
Issued............................................... 2,595,709 4,464,152 2,354,114 11,075,210
Issued on reinvestments.............................. 2,973,759 1,135,309 886,288 87,058
Redeemed............................................. (1,487,046) (2,284,666) (1,787,812) (399,664)
------------ ------------ ------------ ------------
Net increase from trust share transactions......... 4,082,422 3,314,795 1,452,590 10,762,604
------------ ------------ ------------ ------------
Net increase in net assets......................... 4,846,865 1,691,381 3,049,102 10,299,993
NET ASSETS
Beginning of period.................................. 32,284,746 30,593,365 31,308,497 21,008,504
------------ ------------ ------------ ------------
End of period+....................................... $ 37,131,611 $ 32,284,746 $ 34,357,599 $ 31,308,497
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
+Includes undistributed net investment income of....... $ 1,755,094 $ 2,971,294 $ 331,822 $ 279,003
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
(a)TRUST SHARES ISSUED AND REDEEMED
Issued............................................... 246,004 416,564 172,814 811,007
Issued on reinvestments.............................. 296,191 107,326 69,350 6,642
Redeemed............................................. (142,039) (214,630) (133,133) (29,290)
------------ ------------ ------------ ------------
Increase in shares................................. 400,156 309,260 109,031 788,359
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
*Commencement of Operations
**See Note 7
56 See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TARGET
INVESTMENT GRADE MATURITY 2007 UTILITIES INCOME
-------------------------- ------------- ------------------------
1/1/95 to 4/25/95* to 1/1/95 to
6/30/95 1994 6/30/95 6/30/95 1994
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 421,575 $ 729,582 $ 9,951 $ 146,209 $ 115,157
(30,316) (47,540) 711 (34,421) (100,075)
1,013,135 (1,054,894) 51,225 575,889 (132,614)
------------ ------------ ------------- ----------- -----------
1,404,394 (372,852) 61,887 687,677 (117,532)
------------ ------------ ------------- ----------- -----------
(605,201) (154,441) -- (110,535) (5,535)
-- (90,556) -- -- --
------------ ------------ ------------- ----------- -----------
(605,201) (244,997) -- (110,535) (5,535)
------------ ------------ ------------- ----------- -----------
1,163,493 2,762,399 1,314,384 3,287,704 4,449,169
605,201 244,996 -- 110,534 5,534
(626,945) (997,487) -- (48,608) (105,265)
------------ ------------ ------------- ----------- -----------
1,141,749 2,009,908 1,314,384 3,349,630 4,349,438
------------ ------------ ------------- ----------- -----------
1,940,942 1,392,059 1,376,271 3,926,772 4,226,371
11,602,476 10,210,417 500,000** 4,720,027 493,656
------------ ------------ ------------- ----------- -----------
$ 13,543,418 $ 11,602,476 $ 1,876,271 $ 8,646,799 $ 4,720,027
------------ ------------ ------------- ----------- -----------
------------ ------------ ------------- ----------- -----------
$ 421,550 $ 605,176 $ 9,951 $ 145,753 $ 110,079
------------ ------------ ------------- ----------- -----------
------------ ------------ ------------- ----------- -----------
109,331 264,613 120,938 341,571 474,683
59,159 24,055 -- 11,709 600
(60,030) (96,249) -- (5,127) (11,306)
------------ ------------ ------------- ----------- -----------
108,460 192,419 120,938 348,153 463,977
------------ ------------ ------------- ----------- -----------
------------ ------------ ------------- ----------- -----------
</TABLE>
57
<PAGE>
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,
Target Maturity 2007 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, Investment Grade and Target Maturity 2007
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 June 30, 1995, 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 losses on investments which
is due to changes in foreign exchange rates from that which is to due to changes
in market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
58
<PAGE>
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 dividends 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 six months ended June 30, 1995,
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 U.S.
Securities Government Obligations
------------------------ ----------------------
Cost of Proceeds Cost of Proceeds
Series Purchases of Sales Purchases of Sales
- ---------------------------------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
BLUE CHIP............................... $ 8,096,396 $ 4,348,281 $ -- $ --
DISCOVERY............................... 8,602,128 10,455,036 -- --
GOVERNMENT.............................. -- -- 9,924,979 7,391,526
GROWTH.................................. 13,141,119 10,465,522 -- --
HIGH YIELD.............................. 14,414,690 11,280,417 -- --
INTERNATIONAL SECURITIES................ 7,531,611 6,011,788 -- --
INVESTMENT GRADE........................ 1,288,326 350,258 1,808,047 1,707,783
TARGET MATURITY 2007.................... 1,292,718 37,799 438,232 --
UTILITIES INCOME........................ 4,126,603 493,969 -- --
</TABLE>
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS LIFE SERIES FUND
At June 30, 1995, 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............................... $45,131,788 $7,373,338 $ 408,267 $6,965,071
CASH MANAGEMENT......................... 4,075,481 -- -- --
DISCOVERY............................... 32,654,581 7,834,107 1,415,936 6,418,171
GOVERNMENT.............................. 8,752,642 157,542 85,166 72,376
GROWTH.................................. 34,828,279 6,691,693 648,522 6,043,171
HIGH YIELD.............................. 36,830,373 1,067,260 1,251,642 (184,382)
INTERNATIONAL SECURITIES................ 29,937,484 4,931,157 845,387 4,085,770
INVESTMENT GRADE........................ 13,034,738 281,715 137,291 144,424
TARGET MATURITY 2007.................... 1,693,863 54,055 2,830 51,225
UTILITIES INCOME........................ 7,785,566 486,334 45,155 441,179
</TABLE>
4. RESTRICTED SECURITIES--The Series held the following restricted securities at
June 30, 1995:
<TABLE>
<CAPTION>
Date Type of
Acquired Quantity Security Cost
-------- --------- ------------------ --------
<S> <C> <C> <C> <C>
HIGH YIELD
Divi Hotels, Inc...................... 4/23/92 1,620shs Common Stock $ 35,810
Olympic Financial Limited............. 6/30/95 4,000shs Common Stock 19,000
Synergy Group, Inc.................... 3/15/95 $ 111M Sr. Sec. Incr. 101,283
Rate Note, Ser. A,
9 1/2%, 9/15/00
INTERNATIONAL SECURITIES
Cadbury Schweppes PLC................. 2/6/95 6,571shs Common Stock 35,724
</TABLE>
These securities, which have been acquired through private placements, may not
be sold or transferred without prior registration under the Securities Act of
1933 or pursuant to an exemption therefrom. If and when these securities are
sold, 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 June 30, 1995, the
value of the above restricted securities for the High Yield and International
Securities Series amounted to $166,772 and $47,983, respectively.
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 June 30, 1995, the High
Yield and International Securities Series each held four 144A securities with
aggregate values of $2,115,300 and
60
<PAGE>
$301,051, respectively. These securities represent 5.7% and .9%, respectively,
of the Series' net assets and are valued as set forth in Note 1A.
6. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--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
six months ended June 30, 1995, total advisory fees were $807,566 of which
$64,387 was waived by the investment adviser. In addition, $11,750 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 six
months ended June 30, 1995, 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 Target Maturity 2007 Series commenced
operations in April 1995 following the sale of 50,000 shares of beneficial
interest to First Investors Life Insurance Company for $500,000.
8. CONCENTRATION OF CREDIT RISK--The High Yield Series' investment in high yield
securities, whether rated or unrated, may be considered speculative and subject
to greater market fluctuations and risk 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 June 30, 1995, the High
Yield Series held one defaulted security with a value of $408,000, representing
1.1% 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.
61
<PAGE>
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>
P E R S H A R E D A T A
-------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions
Net Asset --------------------------------------- from
Value Net Realized ----------------------
---------- Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) Investment Investment Realized Total
of Period Income on Investments Operations Income Gain 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
1/1/95 to 6/30/95............. 13.75 .13 2.20 2.33 .19 .95 1.14
CASH MANAGEMENT**
- ------------------------------
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
1/1/95 to 6/30/95............. 1.00 .027 -- .027 .027 -- .027
DISCOVERY
- ------------------------------
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
1/1/95 to 6/30/95............. 19.86 .05 2.78 2.83 .06 1.26 1.32
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
1/1/95 to 6/30/95............. 9.70 .32 .57 .89 .62 -- .62
GROWTH
- ------------------------------
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
1/1/95 to 6/30/95............. 16.73 .09 2.45 2.54 .09 .29 .38
</TABLE>
*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
commencement of operations through June 30, 1995 (Note 6).
++The effect of fees and charges incurred at the separate account level are not
reflected in these performance figures.
(a)Annualized
See notes to financial statements
62
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
R A T I O S / S U P P L E M E N T A L D A T A
-----------------
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Ratio to Average Net Assets
Before Expenses Waived
Ratio to Average Net Assets+ or Assumed
Net Asset --------------------------------------------------------------------------
Value -----------------------------------------
---------- Net Net Portfolio
Total Net Assets Investment Investment Turnover
End of Return++ End of Period Expenses+ Income Expenses Income Rate
Period (%) (in thousands) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
$10.05 .61(a) $ 3,656 -- 2.95(a) 1.92(a) 1.03(a) 15
12.62 26.17 13,142 1.00 1.88 1.55 1.34 21
13.24 6.67 23,765 .79 1.66 .86 1.60 40
14.21 8.51 34,030 .88 1.27 N/A N/A 37
13.75 (1.45) 41,424 .88 1.49 N/A N/A 82
14.94 17.90 52,232 .85(a) 2.10(a) N/A N/A 10
1.00 7.49 8,203 .39 6.90 1.15 6.15 N/A
1.00 5.71 9,719 .57 5.39 .93 5.03 N/A
1.00 3.02 8,341 .79 2.99 .98 2.81 N/A
1.00 2.70 4,243 .60 2.67 1.05 2.22 N/A
1.00 3.77 3,929 .60 3.69 1.04 3.25 N/A
1.00 2.73 4,082 .59(a) 5.40(a) 1.04(a) 4.95(a) N/A
10.71 (5.47) 960 -- 2.97 2.68 .28 104
16.02 51.73 4,661 .70 .48 1.49 (.31) 93
18.35 15.74 10,527 .91 .02 1.05 (.12) 91
21.36 22.20 21,221 .87 (.03) N/A N/A 69
19.86 (2.53) 30,244 .88 .36 N/A N/A 53
21.37 15.01 39,099 .85(a) .62(a) N/A N/A 31
10.65 9.95(a) 5,064 .03(a) 6.64(a) .89(a) 5.79(a) 301
10.42 6.35 8,234 .35 6.60 .84 6.11 525
9.70 (4.10) 7,878 .35 6.74 .90 6.19 457
9.97 9.58 9,121 .35(a) 6.98(a) .91(a) 6.42(a) 106
12.57 (2.99) 2,366 -- 3.03 1.64 1.40 28
16.71 34.68 7,743 .69 1.21 1.34 .55 148
16.64 9.78 16,385 .76 .75 1.20 .30 45
17.45 6.00 25,658 .91 .43 N/A N/A 51
16.73 (2.87) 32,797 .90 .60 N/A N/A 40
18.89 15.46 41,232 .89(a) 1.09(a) N/A N/A 30
</TABLE>
63
<PAGE>
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>
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
P E R S H A R E D A T A
--------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions
Net Asset -------------------------------------- from
Value Net Realized --------------------
--------- Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) Investment Investment Realized Total
of Period Income on Investments Operations Income Gain Distributions
- ----------------------------------------------------------------------------------------------------------------------
HIGH YIELD
- ------------------------------
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
1/1/95 to 6/30/95............. 10.58 .50 .64 1.14 .96 -- .96
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
1/1/95 to 6/30/95............. 13.51 .14 .88 1.02 .12 .25 .37
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
1/1/95 to 6/30/95............. 10.31 .34 .86 1.20 .53 -- .53
TARGET MATURITY 2007
- ------------------------------
4/26/95* to 6/30/95........... 10.00 .06 .92 .98 -- -- --
UTILITIES INCOME
- ------------------------------
11/15/93* to 12/31/93......... 10.00 .01 (.07) (.06) -- -- --
1994.......................... 9.94 .24 (.96) (.72) .03 -- .03
1/1/95 to 6/30/95............. 9.19 .14 0.89 1.03 .19 -- .19
</TABLE>
*Commencement of operations
+Some or all expenses have been waived or assumed by the investment adviser from
commencement of operations through June 30, 1995 (Note 6).
++The effect of fees and charges incurred at the separate account level are not
reflected in these performance figures.
(a)Annualized
See notes to financial statements
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
R A T I O S / S U P P L E M E N T A L D A T A
---------------
----------------------------------------------------------------------------------------------------------
Ratio to Average Net Assets
Before Expenses Waived
Ratio to Average Net Assets+ or Assumed
---------------------------------------------------------------------------
Net Asset ------------------------------------------
Value Net Net Portfolio
---------- Total Net Assets Investment Investment Turnover
End of Return++ End of Period Expenses+ Income Expenses Income Rate
Period (%) (in thousands) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
$ 9.17 (5.77) $18,331 -- 13.21 .91 12.30 35
10.81 33.96 23,634 .53 11.95 .89 11.60 40
10.44 13.15 24,540 .91 10.48 .96 10.43 84
11.16 18.16 30,593 .91 9.49 N/A N/A 96
10.58 (1.56) 32,285 .88 9.43 N/A N/A 50
10.76 11.44 37,132 .85(a) 10.12(a) N/A N/A 34
10.37 5.21(a) 3,946 -- .99(a) 3.43(a) (2.43)(a) 29
11.87 15.24 8,653 1.70 .75 2.27 .18 70
11.37 (1.13) 12,246 1.03 1.55 1.38 1.20 36
13.74 22.17 21,009 1.14 .97 N/A N/A 37
13.51 (1.29) 31,308 1.03 1.22 N/A N/A 36
14.16 7.88 34,358 1.01(a) 2.09(a) N/A N/A 20
10.53 8.91(a) 4,707 .23(a) 6.16(a) .93(a) 5.46(a) 72
10.95 10.93 10,210 .35 6.32 .85 5.82 64
10.31 (3.53) 11,602 .37 6.61 .92 6.06 15
10.98 12.04 13,543 .50(a) 6.78(a) .90(a) 6.38(a) 19
10.98 9.80 1,876 -- 2.03(a) .43(a) 1.60(a) 5
9.94 (4.66)(a) 494 -- 1.46(a) 3.99(a) (2.52)(a) 0
9.19 (7.24) 4,720 .17 4.13 .95 3.35 31
10.03 11.29 8,647 .34(a) 4.50(a) .85(a) 3.99(a) 9
</TABLE>
65
<PAGE>
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 ten series comprising First Investors Life
Series Fund as of June 30, 1995, the related statement of operations for the six
months then ended, and the statement of changes in net assets for the six months
ended June 30, 1995 and the year ended December 31, 1994, and the 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 June
30, 1995, 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 ten series comprising First Investors Life Series Fund as of June 30,
1995, and the results of their operations, changes in their net assets and
financial highlights for the respective periods then ended, in conformity with
generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
July 31, 1995
66
<PAGE>
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
JAMES M. SRYGLEY
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
THE CASH MANAGEMENT SERIES IS A MONEY MARKET FUND AND SEEKS TO MAINTAIN A STABLE
NET ASSET VALUE OF $1.00 PER SHARE. HOWEVER, THERE CAN BE NO ASSURANCE THAT THE
SERIES WILL BE ABLE TO DO SO OR ACHIEVE ITS INVESTMENT OBJECTIVE. AN INVESTMENT
IN THE SERIES IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
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.
581 Main Street
Woodbridge, NJ 07095-1198
LEGAL COUNSEL
KIRKPATRICK & LOCKHART LLP
1800 M Street, N.W.
Washington, DC 20036
AUDITORS
TAIT, WELLER & BAKER
Two Penn Center Plaza
Philadelphia, PA 19102
It is the Fund's practice to mail only one copy of its annual and semi-annual
reports to any address at which more than one shareholder with the same last
name has indicated that mail is to be delivered. Additional copies of the
reports will be mailed if requested by any shareholder in writing or by calling
800-423-4026. The Fund will ensure that separate reports are sent to any
shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders, and,
if given to prospective shareholders, must be accompanied or preceded by the
Fund's prospectus.
67
<PAGE>
FIRST INVESTORS LIFE SERIES FUND
95 WALL STREET
NEW YORK, NY 10005
The following appears on the bottom lefthand side:
First Investors Logo, which 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
Vertically reading from bottom to top in the center of the page the
words "FIRST INVESTORS" appear.
FIRST INVESTORS
LIFE
SERIES
FUND
Blue Chip Series
Cash Management Series
Discovery Series
Government Series
Growth Series
High Yield Series
International Securities Series
Investment Grade Series
Target Maturity 2007 Series
Utilities Income Series
SEMI-
ANNUAL
REPORT
JUNE 30, 1995
