Portfolio Manager's Letter
First Investors Life Series Fund -- BLUE CHIP FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
Gains in the equity markets in 1995 were fueled by investor confidence
in a continuing low growth, low inflation economy. Investor confidence
was bolstered by a favorable and improving interest rate environment.
Acquisition and merger activity, restructurings and announced cost
cutting plans also added to investor anticipation of continued improved
earnings throughout the year. In this favorable environment, the Blue
Chip Fund returned 34.0% for the year on a net asset value basis.
The Fund was invested to take advantage of the surge in the financial,
technology and consumer non-durable sectors. The best performers were
direct beneficiaries of the favorable interest rate environment; banks
and select insurance companies such as Citicorp, AIG, and BankAmerica.
Technology, spurred by continued industry automation and general
enthusiasm for new products, also performed strongly. The best
performers in the technology sector were Microsoft, Hewlett-Packard,
Intel and Cisco Systems. Consumer non-durables benefited from a shift in
the second half of the year away from cyclical and growth issues. Coca
Cola, PepsiCo and Philip Morris along with a number of drug stocks
performed extremely well in 1995. The Blue Chip Fund continued to
benefit from the opening of international borders worldwide by investing
in many companies with substantial foreign presence.
Our outlook for the coming year calls for continued slow growth and low
inflation in a benign interest rate environment. Provided the economic
"soft landing" scenario continues to play out through 1996, equity
markets could continue to achieve new highs. However, unlike the year
just ended, broad sector gains may not fuel the new highs. Selectivity
may be the key to avoid getting stuck in the mud at the end of the "soft
landing".
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Patricia D. Poitra
Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- BLUE CHIP FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Blue Chip Fund and the Standard & Poor's
500 Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Standard &
Blue Chip Poor's 500
Fund Index
Mar-90 9300 10000
Dec-90 9349 10007
Dec-91 11740 13033
Dec-92 12579 13966
Dec-93 12997 15332
Dec-94 13453 15529
Dec-95 18027 21879
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 34.0% 24.4%
Five Years 14.0% 12.7%
Since Inception 12.0% 10.7%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- Blue Chip Fund on 3/8/90 (inception date) with a
theoretical investment in the S&P 500 Index. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested.
The S&P 500 Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all
major industries.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for Five Years and Since Inception would have been
12.2% and 10.4%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. S&P 500 Index figures
from Standard & Poor's and all other figures from First Investors
Management Company, Inc.As of December 31, 1995
Portfolio Manager's Letter
First Investors Life Series Fund -- CASH MANAGEMENT FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
As evidence of a potentially softer economy and a less threatening
inflationary outlook were unfolding, investment strategies for money
market funds were changing. After shortening their average maturities
throughout most of 1994, many fund managers grew convinced that the
yearlong trend to higher rates was finally ending. Money market funds
moved sharply toward longer average maturities during the first half of
the year, increasing their weighted average maturities from 36 days to
50 days by the end of June. Throughout the second half of the year,
weighted average maturities extended slightly, reflecting the continued
belief that short-term interest rates would continue to move lower in
the near future.
Money market funds remained an integral part of the investment universe
in 1995 as evidenced by the continued inflow of new money. Assets in
money market funds increased by over 23% in 1995. For 1995, the Cash
Management Fund returned 5.5%.
In 1996 we expect continued slow growth and low inflation, likely
resulting in additional easing by the Federal Reserve. Volatility will
probably continue if Congress and the President fail to agree on a
balanced budget agreement.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Michael J. O'Keefe
Michael J. O'Keefe
Portfolio Manager
January 31, 1996
Portfolio Manager's Letter
First Investors Life Series Fund -- DISCOVERY FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
Surging corporate profits and falling interest rates drove the equity
markets to new highs in 1995. For the year, the Discovery Fund returned
25.2% on a net asset value basis. Two sectors fueled the robust stock
market performance: technology and financial. While technology stocks
turned choppy in July and continued to be volatile throughout the year,
financial issues remained strong, thanks to dramatically falling
interest rates.
Your Fund's performance was positively affected by technology holdings
in various subsectors such as semiconductor equipment, non-commodity
semiconductor chips and database stocks. These stocks were the
beneficiaries of a new technology standard resulting in strong demand
and component shortages. When semiconductor related issues flagged in
the second half of the year, Internet stocks such as Cisco Systems,
Ascend Communications and NETCOM On-Line Communication Services came on
strong. Healthcare information systems stocks such as HCIA, Inc. and IDX
Systems also added to your Fund's performance. This category was
supported by the medical community's recognition of the need to become
cost effective providers of healthcare.
Overall, however, the healthcare sector underperformed. Securities in
this sector, which we continue to own, include Value Health, Quantum
Health Resources, AHI Healthcare Systems and Future Healthcare. In the
communications sector, fourth quarter reports of weak cellular handset
sales put pressure on the stocks of Motorola, Nokia and L.M. Ericsson.
Relatively high cash holdings in your Fund also hurt performance.
Our outlook for the coming year calls for continued slow growth and low
inflation in a benign interest rate environment. Provided the economic
"soft landing" scenario continues to play out through 1996, equity
markets could continue to achieve new highs. However, unlike the year
just ended, broad sector gains may not fuel the new highs. Selectivity
may be the key to avoid getting stuck in the mud at the end of the "soft
landing".
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Patricia D. Poitra
Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- DISCOVERY FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Discovery Fund, the Lipper Small Company
Growth Index and the Russell 2000 Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Lipper Small
Company Russell
Discovery Growth 2000
Fund Index Index
Nov-87 9300 10000 10000
Dec-87 9321 10129 10250
Dec-88 9656 11847 12494
Dec-89 11936 14471 14526
Dec-90 11284 16113 11701
Dec-91 17142 24294 17079
Dec-92 19816 26750 20232
Dec-93 24215 31129 24078
Dec-94 23603 30902 23313
Dec-95 29559 40614 29422
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 25.2% 16.5%
Five Years 21.2% 19.5%
Since Inception 15.3% 14.2%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- Discovery Fund on 11/9/87 (inception date) with
theoretical investments in the Lipper Small Company Growth Index and the
Russell 2000 Index. It is not possible to invest directly in these
Indices. In addition, the Indices do not take into account fees and
expenses. For purposes of the graph and the accompanying table, unless
otherwise indicated, it has been assumed that the maximum sales charge
was deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested.
The Lipper Small Company Growth Fund Index is a net value weighted index
of the 30 largest small company growth funds. It is calculated with
adjustments for income dividends and capital gains distributions as of
the ex-dividend dates. The Russell 2000 Index consists of the smallest
2,000 companies in the Russell 3000 Index (which represents
approximately 98% of the investable U.S. equity market). The Russell
2000 Index is an unmanaged index generally considered as the premier
measure of small capitalization stocks.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average-
Annual Total Return for Five Years and Since Inception would have been
19.2% and 13.0%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lipper Small Company
Growth Index figures from Lipper Analytical Services, Inc., Russell 2000
Index figures from Frank Russell and Company and all other figures from
First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- GOVERNMENT FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
During 1995 the Government Fund returned 15.6% on a net asset value
basis. The large decline in long-term interest rates during 1995
provided investors with substantial capital appreciation in addition to
net investment income.
At the beginning of 1995, the Fund was positioned for an increase in
interest rates. Instead, slowing economic growth and declining inflation
expectations caused yields to decline. As the bond market's rally
continued, the Fund shifted its Treasury holdings, approximately 30% of
total assets, from short-term bills to notes with an average maturity of
six years. In addition, the Fund sold 15% of its assets which were in
high coupon mortgage-backed bonds and bought lower coupon mortgage-
backed bonds. These trades increased the Fund's average maturity which
enabled it to participate more fully in the bond market's rally during
the second half of the year.
As of December 1995, the Fund had 52% of its assets in bonds issued by
the U.S. Government or its agencies, 45% in mortgage-backed bonds, and
1% in cash or cash equivalents.
Looking forward, the outlook for the bond market over the next six
months appears positive. Economic growth is slowing from already
moderate levels, inflationary pressures are not apparent, and Congress
and the President may yet agree to balance the Federal budget. Against
this backdrop, the Federal Reserve is likely to continue to lower short-
term interest rates which should prolong the bond market's rally.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Clark D. Wagner
Clark D. Wagner
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- GOVERNMENT FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Government Fund, the Salomon Brothers
Mortgage Index and the Salomon Brothers Government Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Saloman Saloman
Brothers Brothers
Government Mortgage Government
Fund Index Index
Jan-92 9300 10000 10000
Dec-92 10213 10848 10893
Dec-93 10865 11611 12056
Dec-94 10419 11445 11650
Dec-95 11567 13364 13794
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 15.6% 7.5%
Since Inception 6.7% 4.8%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- Government Fund on 1/7/92 (inception date) with
theoretical investments in the Salomon Brothers Mortgage Index and the
Salomon Brothers Government Index. It is not possible to invest directly
in these Indices. In addition, the Indices do not take into account fees
and expenses. For purposes of the graph and the accompanying table,
unless otherwise indicated, it has been assumed that the maximum sales
charge was deducted from the initial $10,000 investment in the Fund and
all dividends and distributions were reinvested.
The Salomon Brothers Mortgage Index is a market capitalization-weighted
index that consists of all agency pass-throughs and FHA and GNMA project
loans. The Salomon Brothers Government Index is a market capitalization-
weighted index that consists of the traditional agencies such as FNMA
and FHLMC, and the newer agency issuers, such as the Financing Corp. and
the Government Trust Certificate bonds. The Indices maintain high
standards of pricing reliability, every issue is trader-priced, and the
Indices follow consistent and realistic availability limits, including
only those securities with a sufficient amount outstanding.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for One Year and Since Inception would have been
7.3% and 4.3%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Salomon Brothers
Mortgage Index and Salomon Brothers Government Index figures from
Salomon Brothers and all other figures from First Investors Management
Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- GROWTH FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
Within the stock market's strong performance, there were significant
variations between sectors, resulting in few enduring investment themes
throughout the year. During the first half of 1995, technology stocks,
and semiconductors in particular, were the standout performers but gave
up much of their relative performance in the second half with evidence
of slowing earnings momentum. Economically sensitive stocks were also
mixed but generally underperformed as investors became more concerned
with cyclical earnings risk. As a consequence, defensive groups such as
consumer non-durables and energy stocks returned to favor in the second
half of the year. The financial sector was one of the few that
consistently outperformed the market, attributable not only to falling
interest rates, but also to industry consolidation and restructuring.
The Life Series Growth Fund returned 25.1% on a net asset value basis in
this environment.
Looking forward, the Fund emphasizes several investment themes. The Fund
is invested in service companies focused on productivity enhancement
which continues to be an important thrust for businesses driven by the
necessity to control costs. The telecommunications bill passed in early
1996 will create dynamic opportunities and challenges within that
industry. Growth cyclicals such as paper and chemical stocks which
lagged in the fourth quarter, have approached valuation levels where we
believe patient investors will be rewarded as the market anticipates
gradual economic improvement. Restructuring and consolidation remain
important themes as even growing, profitable companies seek to find
synergy and efficiencies through cost cutting and mergers. Finally, the
Portfolio is maintaining positions in select, less-economically-
sensitive areas such as media, health care and financial service stocks,
with favorable underlying fundamentals and expectations of positive
relative growth in the near term.
Much of the fundamental backdrop that accompanied the stock market's
rise in 1995 is still in place -- moderate growth, moderate inflation
and falling interest rates. A key difference is corporate profits, where
the outlook is still positive but the absolute gains are expected to be
more subdued. Therefore, positive but less spectacular results are
expected in 1996.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Matthew E. Megargel
Matthew E. Megargel
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- GROWTH FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Growth Fund and the Standard & Poor's 500
Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Standard
Growth Poor's 500
Fund Index
Nov-87 9300 10000
Dec-87 9302 10643
Dec-88 10753 12096
Dec-89 10564 12143
Dec-90 9828 11368
Dec-91 13155 16342
Dec-92 14898 19057
Dec-93 17603 22661
Dec-94 17327 22441
Dec-95 20762 26341
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 25.1% 16.4%
Five Years 13.8% 12.1%
Since Inception 11.8% 10.8%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- Growth Fund on 11/9/87 (inception date) with a
theoretical investment in the S&P 500 Index. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested.
The S&P 500 Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all
major industries.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for Five Years and Since Inception would have been
10.3% and 8.4%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. S&P 500 Index figures
from Standard & Poor's and all other figures from First Investors
Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- HIGH YIELD FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
The Life Series High Yield Fund performed well during 1995 returning
19.8% on a net asset value basis. This return compares favorably with a
16.4% average return for high yield funds according to Lipper Analytical
Services, Inc.
Inflows to high yield mutual funds were fairly consistent throughout
1995. AMG Data measured a net $8.4 billion inflow to the funds, fueling
a rally that began early in the year. Led at first by lower-rated and
deferred coupon bonds, several industry sectors that had underperformed
in 1994 rebounded in 1995. The communications sector posted among the
highest returns of any industry. Gaming, one of the worst performers of
1994, showed a strong turnaround driven particularly by improvement in
the Atlantic City market. Other industries that generally outperformed
the overall market were finance, media, energy, healthcare services, and
home building. These industries benefited from lower interest rates,
regulatory developments, and/or consolidation. The retail and restaurant
groups showed continued weakness for the second year in a row.
The improving interest rate environment caused the net new supply of
high yield bonds to increase significantly in 1995 compared to 1994.
Approximately 60% of the new issuance occurred in the second half of
1995 amid signs of a slowing economy. Accordingly, market leadership
began to rotate away from economically sensitive industries such as
metals, chemicals, and forest products as the volume growth and pricing
power these industries recently enjoyed reached a cyclical peak. The
overall credit quality of the high yield market continued to improve.
Growth in issuance of credits rated split BB or better resulted in a
greater participation from better quality and crossover investors, thus
bidding up the prices in that tier of the market.
The High Yield Fund's performance benefited from its holdings of more
liquid and higher-rated bonds in industries where cash flows are
perceived to be stable or growing or where significant consolidation is
occurring. Examples of sector choices which aided performance include a
heavy weighting in the media, telecommunications (notably Echostar
deferred coupon bonds), and forest products industries. Also, the Fund
gained from an underweighting in the retail industry, where we avoided
several bankruptcies such as Caldor, Bradlee's and Grand Union.
Additionally, the Fund's deferred-pay holdings helped performance, both
by virtue of their increased interest-rate sensitivity and by solid
credit improvements by many of them.
We believe that high yield bonds are positioned to perform well versus
fixed income alternatives in 1996. While we expect some modest short-
term interest rate reduction to stimulate the economy in this election
year, we are unlikely to see the magnitude of interest rate decline that
occurred in 1995. In a stable to moderately declining interest rate
environment, high yield bonds tend to outperform fixed income
alternatives by virtue of their higher income. We expect that our
credit-oriented strategy of concentrating on stable to improving bonds
will continue to reward Fund shareholders.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ George V. Ganter
George V. Ganter
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- HIGH YIELD FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- High Yield Fund and the First Boston High
Yield Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
First Boston
High Yield High Yield
Fund Index
Nov-87 9300 10000
Dec-87 9302 10643
Dec-88 10753 12096
Dec-89 10564 12143
Dec-90 9828 11368
Dec-91 13155 16342
Dec-92 14898 19057
Dec-93 17603 22661
Dec-94 17327 22441
Dec-95 20762 26341
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 19.8% 11.4%
Five Years 16.1% 14.5%
Since Inception 10.4% 9.4%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- High Yield Fund on 11/9/87 (inception date) with a
theoretical investment in the First Boston High Yield Index. It is not
possible to invest directly in this Index. In addition, the Index does
not take into account fees and expenses. For purposes of the graph and
the accompanying table, unless otherwise indicated, it has been assumed
that the maximum sales charge was deducted from the initial $10,000
investment in the Fund and all dividends and distributions were
reinvested.
The First Boston High Yield Index is designed to measure the performance
of the high yield bond market. The Index consists of 687 different
issues, 574 of these are cash pay, 84 are zero-coupon, 20 are step
bonds, 5 are payment-in-kind bonds and the remaining 4 are in default.
The bonds included in the Index have an average life of 7.8 years, an
average maturity of 7.9 years an average duration of 4.4 years and an
average coupon of 10.6%.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for Five Years and Since Inception would have been
14.4% and 9.1%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. The unusually high
current yields offered reflect the substantial risks associated with
investments in high yield bonds. The issuers of the bonds pay higher
interest rates because they have a greater likelihood of financial
difficulty, which could result in their inability to repay the bonds
fully when due. Prices of high yield bonds are also subject to greater
fluctuations. First Boston High Yield Index figures from CS First Boston
and all other figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- INTERNATIONAL SECURITIES FUND
Dear Investor:
The world's stock markets were generally positive for the year. Like the
U.S., many countries have been impacted by slow economic growth and have
begun taking steps to cut interest rates and provide tax cuts and other
stimuli. We are seeing some positive signs that these steps are working.
This is particularly true in Japan which has been in a recession for
several years and seems to be turning the corner. Slow or slowing growth
and low inflation currently prevail in the world's major economies.
These results have been associated with budget-deficit cuts not fully
offset by easier monetary policies with the exception of Japan. In
addition consumer caution and soft export demand were widespread. Among
the major industrialized economies in 1995, capital investment was
strong only in the U.S., with Germany and U.K. exhibiting weak growth
and Japanese investment declining. Slowing growth and low inflation
spurred many central banks to cut interest rates throughout the latter
part of 1995. In Japan, the four-year-long recession is slowly coming to
an end with no inflation or mild deflation prevailing. To stimulate
recovery, the Bank of Japan has maintained its official discount rate at
0.5%, a post-World War II low.
During 1995, the Life Series International Securities Fund returned
18.7% on a net asset value basis, outperforming the Lipper Global Fund
average which returned 16.1%. Despite an underweight position in the
United States stock market throughout 1995, the Fund outperformed
comparable funds for four reasons. First and foremost, the Fund has had
an overweight position in Japan which was beneficial to the Fund as
Japanese technology stocks rallied in the second half of 1995. Secondly,
an overweight position in France and Spain also added significantly to
returns in the latter part of the year. Third, the Fund had a relatively
low weighting in Latin America early in the year and started adding to
its position only as these markets started to bottom for the second time
in the fall. Finally, good stock selection in countries such as
Australia and the Scandinavian countries also contributed significantly
to relative returns.
1995 was a good year for the world's major financial markets. We expect
about 2% growth and inflation in the G-5 countries in 1996. One
exception to this forecast is Japan, where an inflation rate closer to
0% is expected and a resumption of economic growth is anticipated. In
other Pacific Basin countries, high growth with some inflation is the
likely result. In general the major international economies are
anticipated to experience slow but stable growth, low interest rates and
inflation which is under control -- an economic environment which
generally is supportive of world stock markets. We are therefore quite
optimistic about the prospects for further positive returns in 1996.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Trond Skramstad
Trond Skramstad
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- INTERNATIONAL SECURITIES FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- International Securities Fund and the
Morgan Stanley World Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
International Morgan
Securities Stanley World
Fund Index
Apr-90 9375 10000
Dec-90 9647 9873
Dec-91 11060 11746
Dec-92 10987 11200
Dec-93 13423 13791
Dec-94 13249 14563
Dec-95 15727 17665
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 18.7% 10.4%
Five Years 10.3% 8.7%
Since Inception 9.6% 8.3%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- International Securities Fund on 4/16/90 (inception date)
with a theoretical investment in the Morgan Stanley World Index. It is
not possible to invest directly in this Index. In addition, the Index
does not take into account fees and expenses. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions were
reinvested.
The Morgan Stanley World Index is designed to measure the performance of
stock markets in the United States, Europe, Canada, Australia, New
Zealand, and the Far East. The Index consists of approximately 1,500
companies listed on stock exchanges in twenty-two countries. The
combined market capitalization of companies in the Index represents
approximately 60% of the aggregate market value of the covered stock
exchanges.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for Five Years and Since Inception would have been
8.5% and 7.9%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of
an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Morgan
Stanley World Index figures from Morgan Stanley & Co. Incorporated and
all other figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- INVESTMENT GRADE FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
The investment grade corporate bond market's performance in 1995
paralleled the dramatic rise in Treasury bond prices. For the calendar
year, the Investment Grade Fund returned 19.7% on a net asset value
basis. In comparison, the average investment grade bond fund returned
20.1% as measured by Lipper Analytical Services, Inc.
The Investment Grade Fund had a shorter duration than the average
investment grade bond fund. Duration is a measurement of interest rate
sensitivity and is an important factor in performance. We selected a
modestly shorter duration to combat the increased interest rate
volatility the market experienced toward the middle of the year. Along
with careful attention to credit quality and sector trends, this
strategy worked effectively to reduce volatility.
Selection and weighting of each sector also contributed to performance.
The Fund had only a small exposure to retail companies, which as a group
experienced disappointing sales due to a slowdown in consumer spending.
Its large position in the industrial sector was positive since it was
one of the best performing portions of the investment grade corporate
bond universe. However, the underweighting of the Yankee bond sector was
a slight drag on total return as this sector was a strong performer.
As the corporate markets' credit quality improved throughout 1995, the
Fund benefited from rating upgrades of several of its positions.
Additionally, the Fund avoided companies which were downgraded into sub-
investment grade status such as Westinghouse Electric and Niagara
Mohawk. The Fund did own Kmart bonds, but sold them before financial and
operating problems became apparent to the market.
Event risk continued to be a factor as acquisitions and consolidations
continued in the corporate market. Some recent examples of this
increasing trend are Lockheed Martin's $10 billion purchase of Loral
Corp. and Fleet Financial Group's $3.26 billion acquisition of National
Westminster's U.S. banking operations. In an increasingly competitive
market, firms are using these techniques to provide growth and to cut
costs in order to stay viable and strengthen their core businesses.
Certain industries, banks for example, tend to use equity financing to
accomplish acquisitions, while others have used additional debt. An
acquisition financed largely or wholly with debt subjects a company to
negative credit pressure. The Fund strives to avoid companies that
increase their risk profiles in order to enhance shareholder value.
In 1996 we expect continued slow growth and low inflation, likely
resulting in additional easing by the Federal Reserve. Volatility will
probably continue if Congress and the President fail to agree on a
balanced-budget agreement. The Fund will take advantage of such market
fluctuation to increase duration slightly, as we expect that overall
rates will continue to decline. We also expect to increase the
concentration of non-cyclical industries because such issues tend to
outperform in an economy with slow growth and low inflation. Our focus
on credit quality will remain at the forefront, as we attempt to predict
and avoid problem industries and credits. We view the risk/reward
tradeoff very seriously when looking at corporate bonds and believe that
it is better to err on the side of safety as opposed to stretching for
incremental yield.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Nancy W. Jones
Nancy W. Jones
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- INVESTMENT GRADE FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Investment Grade Fund and the Lehman
Brothers Corporate Bond Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Investment Standard &
Grade Poor's 500
Fund Index
Jan-92 9300 10000
Dec-92 10120 10869
Dec-93 11215 12190
Dec-94 10819 11711
Dec-95 12430 14317
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 19.7% 11.3%
Since Inception 8.7% 6.7%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- Investment Grade Fund on 1/7/92 (inception date) with a
theoretical investment in the Lehman Brothers Corporate Bond Index. It
is not possible to invest directly in this Index. In addition, the Index
does not take into account fees and expenses. For purposes of the graph
and the accompanying table, unless otherwise indicated, it has been
assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions were
reinvested.
The Lehman Brothers Corporate Bond Index includes all publicly issued,
fixed rate, nonconvertible investment grade dollar-denominated, S.E.C.-
registered corporate debt. All issues have at least one year to maturity
and an outstanding par value of at least $100 million.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for One Year and Since Inception would have been
11.1% and 5.9%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Corporate Bond Index figures from Lehman Brothers, Inc. and all other
figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- TARGET MATURITY 2007 FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
The Target Maturity 2007 Fund returned 22.6% on a net asset value basis
from April 25, 1995 (when the Fund was first offered) through December
31, 1995. The Fund's investment objective is to seek a predictable
compounded return for investors who hold the Fund until maturity. In
order to meet this objective, the Fund is fully invested in high quality
zero coupon bonds.
Zero coupon bonds are very sensitive to changes in interest rates.
Consequently, with long-term interest rates falling almost 200 basis
points (2%) during 1995, zero coupon bonds provided higher total returns
than the bond market in general. Of course, should interest rates rise,
zero coupon bonds are likely to underperform the bond market.
Management of the Target Maturity 2007 Fund has focused on building a
diversified portfolio of high quality zero coupon bonds with an average
maturity close to December 31, 2007. As of December 31, 1995, the Fund
had net assets of $9.9 million invested in the bonds of ten different
issuers, an average credit rating of Aaa, and an average maturity of
October 29, 2007.
Looking forward, the outlook for the bond market over the next six
months appears positive. Economic growth is slowing from already
moderate levels, inflationary pressures are not apparent, and Congress
and the President may yet agree to balance the Federal budget. Against
this backdrop, the Federal Reserve is likely to continue to lower short-
term interest rates which should prolong the bond market's rally.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Clark D. Wagner
Clark D. Wagner
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- TARGET MATURITY 2007 FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Target Maturity 2007 Fund and the Salomon
Brothers Government Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Target Salomon
Maturity Brothers
2007 Government
Fund Index
Apr-95 9300 10000
Dec-95 11330 11840
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
Since Inception 22.6% 14.1%
The graph compares a $10,000 investment made in the First Investors Life
Series Fund -- Target Maturity 2007 Fund on 4/25/95 (inception date)
with a theoretical investment in the Salomon Brothers Government Index.
It is not possible to invest directly in this Index. In addition, the
Index does not take into account fees and expenses. For purposes of the
graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Fund and all dividends and distributions were
reinvested.
The Salomon Brothers Government Index is a market capitalization-
weighted index that consists of the traditional agencies such as FNMA
and FHLMC, and the newer agency issuers, such as the Financing Corp. and
the Government Trust Certificate bonds. The Index maintains high
standards of pricing reliability, every issue is trader-priced, and the
Index follows consistent and realistic availability limits, including
only those securities with a sufficient amount outstanding.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return Since Inception would have been 13.9%. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Salomon Brothers Government Index figures from
Salomon Brothers and all other figures from First Investors Management
Company, Inc.
Portfolio Manager's Letter
First Investors Life Series Fund -- UTILITIES INCOME FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
Gains in the equity markets in 1995 were fueled by investor confidence
in a continuing low growth, low inflation economy. Investor confidence
was bolstered by a favorable and improving interest rate environment.
Acquisition and merger activity, restructurings and announced cost
cutting plans also added to investor anticipation of continued improved
earnings throughout the year.
The Fund's strategy of diversification among all utility sectors
enhanced Fund performance. For 1995, the Utilities Income Fund returned
30.3% on a net asset value basis compared to a return of 27.3% for the
average utilities fund, according to Lipper Analytical Services, Inc.
All sectors of the utility market generated positive returns during the
year, with telephone and electric utilities dominating performance.
Solid performance was exhibited by several of the Fund's top holdings
which include: DQE, Inc., GTE Corp., BellSouth, Portland General,
Pinnacle West, and FPL Group.
During 1995, the utility sector of the stock market rebounded from its
lackluster 1994 performance. Reasons for the improved performance
included: lower interest rates, improved earnings prospects for many
utility companies and general investor appeal for defensive utility
investments. Electric utilities also benefited from a wave of mergers
and from a more favorable stance from electric regulators. Electric
companies have been cutting costs to prepare for a more competitive
electric market contributing to higher earnings prospects. Telephone
utilities continued to experience strong earnings growth as they too are
approaching a more competitive business environment. Positive proposed
telecommunications legislation allowing regional Bell operating
companies to enter the long distance telephone market earlier than
anticipated also helped the telephone group. Natural gas utilities
generated positive returns during the year. This sector's performance,
however, was less than the performance of the electric and telephone
sectors. Weak natural gas prices, caused by 1995's warm winter weather
and concomitant high gas storage levels, was the main reason for the
weaker performance.
Our outlook for continued low interest rates should benefit all
utilities, especially electric. Natural gas prices have rebounded from
their lows, as this year's cold winter weather has increased demand. We
expect utilities to remain an attractive investment choice.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Margaret R. Haggerty
Margaret R. Haggerty
Portfolio Manager
January 31, 1996
Cumulative Performance Information
First Investors Life Series Fund -- UTILITIES INCOME FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Utilities Income Fund, the Standard &
Poor's 500 Index and the Standard & Poor's Utilities Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
Standard & Standard &
Utilities Poor's Poor's
Income 500 Utilities
Fund Index Index
Nov-93 9375 10000 10000
Dec-93 9246 10121 9906
Dec-94 8577 10251 8617
Dec-95 10935 14443 11815
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 30.3% 21.2%
Since Inception 9.0% 5.4%
The graph compares a $10,000 investment made in the First Investors
Life Series Fund -- Utilities Income Fund on 11/15/93 (inception date)
with theoretical investments in the S&P 500 Index and the S&P Utilities
Index. It is not possible to invest directly in these Indices. In
addition, the Indices do not take into account fees and expenses. For
purposes of the graph and the accompanying table, unless otherwise
indicated, it has been assumed that the maximum sales charge was
deducted from the initial $10,000 investment in the Fund and all
dividends and distributions were reinvested.
The S&P 500 Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all
major industries. The S&P Utilities Index is a capitalization-weighted
index of 46 stocks designed to measure the performance of the utility
sector of the Standard & Poor's 500 Index.
* Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The "S.E.C.
Standardized" returns shown are based on the maximum sales charge of 7%.
Some or all of the expenses of the Fund were waived or assumed. If such
expenses had been paid by the Fund, the "S.E.C. Standardized" Average
Annual Total Return for One Year and Since Inception would have been
21.0% and 5.1%, respectively. Results represent past performance and do
not indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. S&P 500 Index and S&P
Utilities Index figures from Standard & Poor's and all other figures
from First Investors Management Company, Inc.
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Blue Chip Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--93.4%
Basic Industry--3.9%
6,100 * Alumax, Inc. $ 186,812 $ 29
5,450 Dow Chemical Company 383,543 57
7,700 Du Pont (E.I.) DE Nemours & Company 538,037 80
8,800 Freeport McMoRan Copper & Gold, Inc. Class "B" 247,500 37
6,800 IMC Global, Inc. 277,950 42
4,000 James River Corporation of Virginia 96,500 14
3,900 Mead Corporation 203,775 30
6,100 Minnesota Mining & Manufacturing Company 404,125 60
4,400 Sigma-Aldrich Corporation 217,800 33
1,400 Temple-Inland, Inc. 61,775 9
- ------------------------------------------------------------------------------------------------------------------------------
2,617,817 391
- ------------------------------------------------------------------------------------------------------------------------------
Capital Goods--7.5%
5,200 Boeing Company 407,550 61
3,000 Browning-Ferris Industries, Inc. 88,500 13
6,300 Deere & Company 222,075 33
2,100 Eaton Corporation 112,612 17
3,100 Emerson Electric Company 253,425 38
2,500 Foster Wheeler Corporation 106,250 16
23,800 General Electric Company 1,713,600 256
5,500 Grainger (W.W.), Inc. 364,375 54
6,800 Ingersoll-Rand Company 238,850 36
3,200 Lockheed Martin Corporation 252,800 38
3,900 Loral Corporation 137,962 21
7,200 Raytheon Company 340,200 51
3,600 United Technologies Corporation 341,550 51
6,000 * Varity Corporation 222,750 33
8,000 WMX Technologies, Inc. 239,000 36
- ------------------------------------------------------------------------------------------------------------------------------
5,041,499 754
- ------------------------------------------------------------------------------------------------------------------------------
Consumer Durables--1.7%
6,800 Corning, Inc. 217,600 32
1,400 Fleetwood Enterprises, Inc. 36,050 5
14,250 Ford Motor Company 413,250 62
5,100 Goodyear Tire & Rubber Company 231,412 35
7,450 Masco Corporation 233,744 35
- ------------------ ----------------------------------------------------------------------------------------------------------
1,132,056 169
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--22.1%
12,200 Abbott Laboratories 509,350 75
4,100 American Home Products Corporation 397,700 58
6,900 Anheuser-Busch Companies, Inc. 461,438 69
6,800 * Astra AB (ADR) Class "A" 272,000 41
7,400 Bristol-Myers Squibb Company 635,475 95
18,250 Coca-Cola Company 1,355,062 203
6,200 Columbia/HCA Healthcare Corporation 314,650 47
5,300 CPC International, Inc. 363,712 54
5,350 Eastman Kodak Company 358,450 54
8,400 Eli Lilly & Company 472,500 71
3,800 General Mills, Inc. 219,450 33
6,400 Gillette Company 333,600 50
9,750 Heinz (H.J.) Company 322,969 48
5,000 Hershey Foods Corporation 325,000 49
9,400 Johnson & Johnson 804,875 120
3,100 Kellogg Company 239,475 36
5,200 Kimberly-Clark Corporation 430,300 64
17,900 Merck & Company, Inc. 1,176,925 176
12,500 Newell Company 323,438 48
4,100 Nike, Inc. 285,463 43
13,300 PepsiCo, Inc. 743,138 111
9,100 Pfizer, Inc. 573,300 86
13,800 Philip Morris Companies, Inc. 1,248,900 187
10,000 Procter & Gamble Company 830,000 124
5,200 * Ralcorp Holdings, Inc. 126,100 19
5,200 Schering-Plough Corporation 284,700 43
8,100 Teva Pharmaceutical Industries Ltd. (ADR) 375,638 56
3,800 Unilever N.V. 534,850 80
4,000 United Healthcare Corporation 262,000 39
2,000 Warner-Lambert Company 194,250 29
- ------------------------------------------------------------------------------------------------------------------------------
14,774,708 2,208
- ------------------------------------------------------------------------------------------------------------------------------
Consumer Services--11.0%
6,500 Brunswick Corporation 156,000 24
2,200 Capital Cities/ABC, Inc. 271,425 41
2,700 * CUC International, Inc. 92,137 14
3,800 Darden Restaurants, Inc. 45,125 7
6,600 Gap, Inc. 277,200 41
4,500 * HFS, Inc. 367,875 55
6,500 Home Depot, Inc. 311,187 47
3,900 ITT Corporation 206,700 31
3,900 ITT Hartford Group, Inc. 188,662 28
3,900 ITT Industries, Inc. 93,600 14
6,000 * Kroger Company 225,000 34
4,250 Marriott International, Inc. 162,562 24
7,325 Mattel, Inc. 225,244 34
4,700 May Department Stores Company 198,576 30
10,150 McDonald's Corporation 458,019 68
2,900 McGraw-Hill Companies, Inc. 252,662 38
5,500 Nordstrom, Inc. 222,750 33
12,400 * Price/Costco, Inc. 189,100 28
5,200 Sears, Roebuck and Company 202,800 30
5,900 Talbots, Inc. 169,625 25
10,625 * Tele-Communications, Inc., Liberty Media Group Class "A" 285,547 43
16,100 * Tele-Communications, Inc., TCI Group Class "A" 319,988 48
5,200 Time Warner, Inc. 196,950 29
6,400 US West Media Group 121,600 18
5,000 * Viacom, Inc. Class "B" 236,875 35
6,400 * Vons Companies, Inc. 180,800 27
39,400 Wal-Mart Stores, Inc. 881,575 132
5,000 Walgreen Company 149,375 22
7,600 Walt Disney Company 448,400 67
13,800 * Woolworth Corporation 179,400 27
- ------------------------------------------------------------------------------------------------------------------------------
7,316,759 1,094
- ------------------------------------------------------------------------------------------------------------------------------
Energy--12.0%
3,800 Aluminum Company of America 200,925 30
7,100 Amoco Corporation 510,313 76
3,400 Atlantic Richfield Company 376,550 56
6,200 Avery Dennison Corporation 310,775 46
10,700 Baker Hughes, Inc. 260,813 39
10,300 Barrick Gold Corporation 271,663 41
2,700 Burlington Resources, Inc. 105,975 16
9,400 Chevron Corporation 493,500 74
10,100 Enron Corporation 385,062 58
18,000 Exxon Corporation 1,442,250 216
2,300 Kerr-McGee Corporation 146,050 22
5,700 Mobil Corporation 638,400 95
7,700 Morton International, Inc. 276,237 41
4,900 Pacific Enterprises 138,425 21
3,450 Phillips Petroleum Company 117,731 18
7,900 Royal Dutch Petroleum Company 1,114,888 167
4,100 Schlumberger Ltd. 283,925 42
11,900 Sonat, Inc. 423,938 63
3,500 Texaco, Inc. 274,750 41
9,000 Unocal Corporation 262,125 39
- ------------------------------------------------------------------------------------------------------------------------------
8,034,295 1,201
- ------------------------------------------------------------------------------------------------------------------------------
Financial--11.4%
6,650 American Express Company 275,144 42
6,900 American International Group, Inc. 638,250 95
6,900 American Re Corporation 282,038 42
14,700 Banc One Corporation 554,925 83
4,500 Bank of New York Company, Inc. 219,375 33
6,600 BankAmerica Corporation 427,350 64
11,700 Charles Schwab Corporation 235,463 35
4,200 Chase Manhattan Corporation 254,625 38
5,100 Chemical Banking Corporation 299,625 45
2,900 Chubb Corporation 280,575 42
9,000 Citicorp 605,250 90
5,400 Dean Witter Discover and Company 253,800 38
6,300 Federal National Mortgage Association 781,987 117
4,600 First Union Corporation 255,875 38
1,900 General Re Corporation 294,500 44
30,800 Hibernia Corporation Class "A" 331,100 49
950 Marsh & McLennan Companies, Inc. 84,312 13
5,400 Mellon Bank Corporation 290,250 43
6,900 NationsBank Corporation 480,413 72
13,800 Norwest Corporation 455,400 68
8,800 Salomon, Inc. 312,400 47
- ------------------ ----------------------------------------------------------------------------------------------------------
7,612,657 1,138
- ------------------ ----------------------------------------------------------------------------------------------------------
Technology--13.8%
9,100 * Airtouch Communications, Inc. 257,075 39
7,200 * Applied Materials, Inc. 283,500 42
4,100 * Ascend Communications, Inc. 332,613 50
23,000 A T & T Corp. 1,489,250 223
1,700 Autodesk, Inc. 58,225 9
3,100 Automatic Data Processing, Inc. 230,175 34
9,500 * Cisco Systems, Inc. 708,937 106
2,100 Computer Associates International, Inc. 119,438 18
16,500 * EMC Corporation 253,687 38
8,300 First Data Corporation 555,062 83
7,600 Hewlett-Packard Company 636,500 95
11,600 Intel Corporation 658,300 98
8,800 International Business Machines Corporation 807,400 121
7,500 * LSI Logic Corporation 245,625 37
9,900 MCI Communications Corporation 258,637 38
8,400 * Microsoft Corporation 737,100 109
9,400 Motorola, Inc. 535,800 80
7,100 * National Semiconductor Corporation 157,975 24
11,650 * Oracle Corporation 493,669 74
8,100 * Premenos Technology Corporation 213,638 32
5,100 Sprint Corporation 203,362 30
- ------------------ ----------------------------------------------------------------------------------------------------------
9,235,968 1,380
- ------------------ ----------------------------------------------------------------------------------------------------------
Telecommunications--.3%
6,400 US West Communications Group 228,800 34
- ------------------ ----------------------------------------------------------------------------------------------------------
Transportation--1.3%
4,000 * AMR Corporation 297,000 44
2,400 Burlington Northern, Inc. 187,200 28
5,700 Union Pacific Corporation 376,200 56
- ------------------ ----------------------------------------------------------------------------------------------------------
860,400 128
- ------------------ ----------------------------------------------------------------------------------------------------------
Utilities--8.4%
7,400 Ameritech Corporation 436,600 64
6,300 Bell Atlantic Corporation 421,313 63
16,100 BellSouth Corporation 700,350 105
8,700 Carolina Power & Light Company 300,150 45
15,100 CINergy Corporation 462,438 69
8,700 Duke Power Company 412,162 62
10,500 FPL Group, Inc. 486,937 73
13,300 GTE Corporation 585,200 88
5,800 NYNEX Corporation 313,200 48
6,100 Pacific Telesis Group 205,112 31
9,800 PacifiCorp 208,250 31
6,000 Peco Energy Company 180,750 27
8,300 SBC Communications, Inc. 477,250 71
10,500 Texas Utilities Company 431,813 65
- ------------------ ----------------------------------------------------------------------------------------------------------
5,621,525 842
- ------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks ($49,784,003) 62,476,484 9,339
- ------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.5%
$ 500M Bell Sports Corporation, 4 1U4%, 11/15/00 (cost $429,695) 350,000 52
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--5.5%
600M Hewlett Packard Company, 5.72%, 1/11/96 599,047 90
1,050M Hitachi America Ltd., 5.90%, 1/10/96 1,048,451 156
400M Idaho Power Company, 5.75%, 1/12/96 399,297 59
800M Lubrizol Corporation, 5.74%, 1/5/96 799,490 120
800M Nestle Capital Corporation, 5.67%, 1/3/96 799,748 120
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,646,033) 3,646,033 545
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $53,859,731) 99.4% 66,472,517 9,936
Other Assets, Less Liabilities .6 427,227 64
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $66,899,744 $10,000
================== ==========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Cash Management Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM CORPORATE NOTES--91.5%
$ 63M Baltimore Gas & Electric Company, 4/15/96 6.00% $ 63,530 $ 152
200M BellSouth Telecommunications, Inc., 2/9/96 5.63 198,780 477
200M Brown-Forman Corporation, 2/12/96 5.70 198,670 477
200M Chevron Oil Finance Company, 1/12/96 5.75 199,648 480
155M Consolidated Natural Gas Company, 1/5/96 5.72 154,902 372
189M Dresser Industries, Inc., 1/31/96 5.73 188,099 452
107M Gannett Company, 1/17/96 5.80 106,724 256
100M GTE South, Inc., 2/7/96 5.73 99,411 239
200M Hewlett Packard Company, 1/25/96 5.68 199,243 479
200M Hitachi America Ltd., 1/12/1996 5.55 199,660 480
200M Laclede Gas Company, 1/31/96 5.65 199,058 478
100M Lubrizol Corporation, 1/5/96 5.74 99,936 240
200M McGraw-Hill Inc., 2/21/96 5.67 198,394 477
150M Merck & Company, Inc., 8/14/96 5.59 153,787 370
150M National Rural Utilities Cooperative
Financial Corporation, 2/9/96 5.62 149,087 358
100M Pacific Bell, 1/22/96 5.65 99,670 240
200M PepsiCo, Inc., 1/30/96 5.86 206,287 496
150M Pitney Bowes Credit, Inc., 2/13/96 5.65 148,988 358
200M Southern California Edison Company, 1/19/96 5.68 199,432 479
200M TDK U.S.A. Corporation, 1/22/96 5.65 199,341 479
200M The Stanley Works, 3/6/96 5.60 197,978 476
200M U.S. Borax & Chemical Corporation, 3/21/96 5.53 197,542 475
150M Waste Management, Inc., 4/14/96 5.84 150,926 363
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,809,093) 3,809,093 9,153
- ------------------ ----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--7.3%
200M Federal Home Loan Bank, 12/27/96 5.55 200,152 481
100M Tennessee Valley Authority, 9/9/96 5.51 100,712 242
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agencies (cost $300,864) 300,864 723
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $4,109,957) 98.8% 4,109,957 9,876
Other Assets, Less Liabilities 1.2 51,607 124
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $4,161,564 $10,000
================== ==========================================================================================================
* The interest rate shown is the effective rate at the time of purchase.
See notes to finanical statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Discovery Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--84.9%
Basic Industry--2.0%
3,800 Chesapeake Corporation $ 112,575 $ 23
26,200 Interpool, Inc. 468,325 92
29,300 * Repap Enterprises, Inc. 130,018 26
8,700 Schulman (A.), Inc. 195,750 38
9,800 * Universal Stainless & Alloy Products, Inc. 104,125 20
- ------------------ ----------------------------------------------------------------------------------------------------------
1,010,793 199
- ------------------ ----------------------------------------------------------------------------------------------------------
Capital Goods--3.0%
10,850 Agco Corporation 553,350 109
16,400 Case Corporation 750,300 147
24,800 Owosso Corporation 220,100 43
- ------------------ ----------------------------------------------------------------------------------------------------------
1,523,750 299
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Durables--1.2%
10,100 Falcon Products, Inc. 132,562 26
24,900 * National R.V. Holdings, Inc. 289,463 57
3,800 * Wolverine Tube, Inc. 142,500 28
- ------------------ ----------------------------------------------------------------------------------------------------------
564,525 111
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.5%
10,200 Dreyer's Grand Ice Cream, Inc. 339,150 67
17,600 * Ralcorp Holdings, Inc. 426,800 84
- ------------------ ----------------------------------------------------------------------------------------------------------
765,950 151
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Services--20.1%
11,300 Advo, Inc. 293,800 58
14,700 * Barnes & Noble, Inc. 426,300 84
31,200 * Bell Sport Corporation 249,600 49
46,700 * Cannondale Corporation 741,362 146
26,400 * Cinar Films, Inc. Class "B" 399,300 78
18,150 * CUC International, Inc. 619,369 122
19,600 * Discount Auto Parts, Inc. 610,050 120
20,400 Equifax, Inc. 436,050 86
7,000 * Federated Department Stores, Inc. 192,500 38
21,400 * Franklin Electronic Publishers, Inc. 631,300 124
14,000 Gaylord Entertainment Class "A" 388,500 76
24,600 * Home Shopping Network, Inc. 221,400 43
22,200 LA Quinta Inns, Inc. 607,725 119
16,900 * Meyer (Fred), Inc. 380,250 75
19,400 * Monarch Casino & Resort, Inc. 67,900 13
13,900 * NHP, Inc. 257,150 51
12,100 * REX Stores Corporation 214,775 42
20,000 Rite Aid Corporation 685,000 135
5,600 * Studio Plus Hotels, Inc. 144,200 28
9,000 Talbots, Inc. 258,750 51
24,100 * Tele-Communications, Inc., TCI Group Class "A" 478,988 94
43,200 * US Office Products Company 982,800 193
35,000 * USCI, Inc. 345,625 68
12,900 * Viacom, Inc. Class "B" 611,138 120
- ------------------ ----------------------------------------------------------------------------------------------------------
10,243,832 2,013
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--.8%
8,400 Snyder Oil Company 101,850 20
2,800 Sonat, Inc. 99,750 20
4,200 * Tejas Gas Corporation 222,075 43
- ------------------ ----------------------------------------------------------------------------------------------------------
423,675 83
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial--8.1%
14,600 * American Travellers Corporation 410,625 81
25,600 Amvestors Financial Corporation 300,800 59
6,100 Boatmens Bancshares, Inc. 249,337 48
1,700 Commercial Federal Corporation 64,175 13
10,200 First USA, Inc. 452,625 89
20,400 Independent Bancorporation 150,450 30
14,700 Integon Corporation 303,187 60
6,500 * Mark Twain Bancshares, Inc. 251,875 49
5,700 Mercanitle Bancorporation 262,200 52
27,300 * Penn Treaty American Corporation 450,450 88
17,050 Reliance Group Holdings, Inc. 147,056 29
7,182 Southern National Corporation 188,528 37
21,000 Titan Holdings, Inc. 301,875 59
14,100 * WFS Financial, Inc. 274,950 54
25,000 Willis Corroon Group PLC (ADR) 290,625 57
- ------------------ ----------------------------------------------------------------------------------------------------------
4,098,758 805
- ------------------ ----------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--13.3%
8,400 * AHI Healthcare Systems, Inc. 48,300 9
13,900 * American Medical Response, Inc. 451,750 89
5,600 * American Oncology Resources, Inc. 272,300 54
29,500 * Applied Bioscience International, Inc. 199,125 39
11,700 * Arbor Health Care Company 204,750 40
10,100 * Boston Scientific Corporation 494,900 98
11,000 Dentsply International, Inc. 440,000 86
33,800 * Ethical Holdings PLC (ADR) 304,200 60
15,000 Fisher Scientific International 500,625 98
10,100 * Health Care and Retirement Corporation 353,500 69
13,200 * Humana, Inc. 361,350 71
7,000 * InStent, Inc. 105,000 21
12,200 * Living Centers of America, Inc. 427,000 84
22,400 * Mid Atlantic Medical Services, Inc. 543,200 107
4,200 * Norland Medical Systems, Inc. 97,650 19
14,300 * Noven Pharmaceuticals, Inc. 160,875 32
8,400 * Orthologic Corporation 121,800 24
11,900 * Pacific Physicians Services, Inc. 214,200 42
12,300 * Pyxis Corporation 179,888 35
7,000 * Rural/Metro Corporation 158,375 31
7,000 * Tecnol Medical Products, Inc. 126,000 25
15,500 Teva Pharmaceutical Industries Ltd. (ADR) 718,813 141
29,200 * Vidamed, Inc. 277,400 54
- ------------------ ----------------------------------------------------------------------------------------------------------
6,761,001 1,328
- ------------------ ----------------------------------------------------------------------------------------------------------
Technology--27.3%
11,800 * Adaptec, Inc. 483,800 95
7,500 * Altera Corporation 373,125 73
11,300 * Applied Materials, Inc. 444,937 87
14,300 * Atmel Corporation 319,962 63
13,400 * Bisys Group, Inc. 412,050 81
12,900 * Broadway & Seymour, Inc. 209,625 41
14,000 * Catalyst International, Inc. 161,000 32
5,600 * Cerner Corporation 114,800 23
5,500 * Cisco Systems, Inc. 410,437 81
6,850 Computer Associates International, Inc. 389,594 77
14,000 * Cornerstone Imaging, Inc. 203,000 40
15,400 * Data Works Corporation 194,425 38
14,000 * Davidson & Associates, Inc. 308,000 61
9,700 * Discreet Logic, Inc. 242,500 48
24,800 * EMC Corporation 381,300 75
7,500 * FileNet Corporation 352,500 69
20,500 * Fulcrum Technologies, Inc. 666,250 131
5,600 * HCIA, Inc. 261,800 51
14,000 * IDX Systems Corporation 486,500 96
13,200 * IMNET Systems, Inc. 316,800 62
6,700 * Informix Corporation 201,000 39
14,900 * Integrated Micro Products PLC (ADR) 275,650 54
23,700 * Intersolv 305,137 60
5,300 * Lam Research Corporation 242,475 48
17,900 * LSI Logic Corporation 586,225 115
11,200 * Mercury Interactive Corporation 204,400 40
12,900 * Metatec Corporation 141,900 28
19,500 * MySoftware Company 248,625 49
33,200 * National Semiconductor Corporation 738,700 145
14,550 * Oracle Corporation 616,556 121
54,900 * Plasma-Therm, Inc. 137,250 27
21,800 * Premenos Technology Corporation 574,975 113
12,500 Reynolds & Reynolds Company 485,938 95
18,200 * Saville Systems Ireland (ADR) 259,350 51
11,300 * Softkey International, Inc. 261,313 51
28,700 * Symantec Corporation 667,275 131
22,500 * System Soft Corporation 253,125 50
15,100 * Tower Semiconductor Ltd. 334,088 66
5,700 * Veritas Software Corporation 216,600 43
13,800 * VLSI Technology, Inc. 250,126 48
5,100 * Xilinx, Inc. 155,550 31
- ------------------ ----------------------------------------------------------------------------------------------------------
13,888,663 2,729
- ------------------ ----------------------------------------------------------------------------------------------------------
Telecommunications--6.8%
6,300 * Ascend Communications, Inc. 511,087 100
10,900 * Boston Technology, Inc. 138,975 27
19,000 ECI Telecommunications Limited Designs 433,437 85
16,400 Ericsson (L.M.) Telephone Co. (ADR) Class "B" 319,800 63
6,000 Motorola, Inc. 342,000 67
5,300 * Netcom On-Line Communication Services, Inc. 190,800 37
9,100 Nokia Corporation (ADR) Class "A" 353,763 70
14,000 * Octel Communications Corporation 451,500 89
5,100 * TCSI Corporation 94,350 19
24,100 * Tele-Communications, Inc., Liberty Media Group Class "A" 647,687 127
- ------------------ ----------------------------------------------------------------------------------------------------------
3,483,399 684
- ------------------------------------------------------------------------------------------------------------------------------
Transportation--.8%
2,800 * Celadon Group, Inc. 25,200 5
49,300 * Transportacion Maritima Mexicana SA (ADR) 412,888 81
- ------------------ ----------------------------------------------------------------------------------------------------------
438,088 86
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $36,077,157) 43,202,434 8,488
- ------------------ ----------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.3%
Health Care/Miscellaneous
150M Pacific Physicians Services, Inc., 5 1U2%, 2003 (cost $150,000) 145,125 29
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--14.9%
650M Appalachian Power, 6%, 1/2/1996 649,892 128
1,000M Dresser Industries, 5.75%, 1/16/1996 997,604 196
250M Ford Motor, 5.70%, 1/11/1996 249,604 49
700M Idaho Power, 5.65%, 1/11/1996 698,902 138
1,000M Lubrizol Corporation, 5.74%, 1/5/1996 999,362 196
2,000M Pacific Bell, 5.65%, 1/22/96 1,993,408 392
1,600M Pearson Incorporated, 5.80%, 1/23/1996 1,594,329 313
400M Stanley Works, 5.72%, 1/12/1996 399,301 78
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $7,582,402) 7,582,402 1,490
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $43,809,559) 100.1% 50,929,961 10,007
Excess of Liabilities Over Other Assets (.1) (30,000) (7)
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $50,899,953 10,000
================== ==========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Government Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED CERTIFICATES--44.9%
$ 36M Federal Home Loan Mortgage Corp., 6 1/2%, 4/1/2024 $ 36,408 $ 38
133M Federal Home Loan Mortgage Corp., 6 1/2%, 6/1/2024 132,030 139
1,066M Federal Home Loan Mortgage Corp., 6 1/2%, 9/1/2024 1,054,647 1,110
862M Federal National Mortgage Association, 9%, 10/1/2020 911,301 959
508M Government National Mortgage Association, 7 1/2%, 8/15/2025 523,017 551
999M Government National Mortgage Association, 7 1/2%, 11/15/2025 1,027,937 1,082
198M Government National Mortgage Association, 11 1/2%, 10/15/2012 222,517 234
317M Government National Mortgage Association, 11 1/2%, 5/15/2015 356,103 375
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $4,211,839) 4,263,960 4,488
- ------------------ ----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--39.3%
1,100M Federal Farm Credit, 8.65%, 10/01/2099 1,216,724 1,281
1,400M Federal Home Loan Bank, 5.92%, 6/29/2000 1,421,875 1,496
1,000M Federal National Mortgage Association, 8 1/2%, 2/1/2005 1,095,000 1,153
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $3,733,054) 3,733,599 3,930
- ------------------ ----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--12.9%
1,150M U.S. Treasury Note, 6 1/2%, 8/15/2005 (cost $1,177,695) 1,226,547 1,291
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.4%
130M Appalachian Power 6%, 1/2/96 (cost $129,957) 129,957 137
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $9,252,545) 98.5% 9,354,063 9,846
Other Assets, Less Liabilities 1.5 146,124 154
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,500,187 $10,000
================== ==========================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Blue Chip Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--97.7%
Apparel/Textiles--.4%
6,000 * Nine West Group, Inc. $ 225,000 $ 44
- ------------------ ----------------------------------------------------------------------------------------------------------
Banks--6.6%
5,000 Associated Banc-Corp 204,687 40
8,000 Bancorp Hawaii, Inc. 287,000 56
21,900 First Bank System, Inc. 1,086,787 212
5,350 First Commercial Corporation 176,550 35
10,000 J.P. Morgan & Company, Inc. 802,500 157
4,000 Old Kent Financial Corporation 164,500 32
15,000 State Street Boston Corporation 675,000 132
- ------------------ ----------------------------------------------------------------------------------------------------------
3,397,024 664
- ------------------ ----------------------------------------------------------------------------------------------------------
Business Services--2.9%
12,000 Dames & Moore, Inc. 145,500 28
7,500 * DST Systems, Inc. 213,750 42
10,000 G & K Services, Inc. Class "A" 255,000 50
4,000 * Ionics, Inc. 174,000 34
19,000 Sysco Corporation 617,500 121
5,000 * Tetra Tech, Inc. 113,750 22
- ------------------ ----------------------------------------------------------------------------------------------------------
1,519,500 297
- ------------------ ----------------------------------------------------------------------------------------------------------
Chemicals--4.6%
7,600 Air Products and Chemicals, Inc. 400,900 78
21,600 Engelhard Corporation 469,800 92
20,800 Morton International, Inc. 746,200 146
13,500 Nalco Chemical Company 406,688 79
15,000 Schulman (A.), Inc. 337,500 66
- ------------------ ----------------------------------------------------------------------------------------------------------
2,361,088 461
- ------------------------------------------------------------------------------------------------------------------------------
Communication Equipment--5.1%
32,000 Ericsson (L.M.) Telephone Co. (ADR) Class "B" 624,000 122
20,000 * General Instrument Corporation 467,500 92
10,800 Motorola, Inc. 615,600 120
7,200 Nokia Corporation (ADR) Class "A" 279,900 55
13,000 * 3COM Corporation 606,125 118
- ------------------ ----------------------------------------------------------------------------------------------------------
2,593,125 507
- ------------------ ----------------------------------------------------------------------------------------------------------
Computers & Office Equipment--3.0%
9,000 * Compaq Computer Corporation 432,000 85
10,800 Hewlett-Packard Company 904,500 177
12,800 Sensormatic Electronics Corporation 222,400 43
- ------------------ ----------------------------------------------------------------------------------------------------------
1,558,900 305
- ------------------ ----------------------------------------------------------------------------------------------------------
Drugs--5.3%
10,000 * Alza Corporation 247,500 48
12,500 Pfizer, Inc. 787,500 154
15,000 Rhone-Poulenc Rorer Group, Inc. 798,750 156
15,000 Zeneca Group PLC (ADR) 875,625 171
- ------------------ ----------------------------------------------------------------------------------------------------------
2,709,375 529
- ------------------ ----------------------------------------------------------------------------------------------------------
Electrical Equipment--2.4%
11,000 Hubbell, Inc. Class "B" 723,250 141
10,000 Juno Lighting, Inc. 160,000 31
9,000 * Littlefuse, Inc. 330,750 65
- ------------------ ----------------------------------------------------------------------------------------------------------
1,214,000 237
- ------------------ ----------------------------------------------------------------------------------------------------------
Electronics--1.9%
15,700 AMP, Inc. 602,487 118
10,000 Dallas Semiconductor Corporation 207,500 41
6,000 * Silicon Valley Group, Inc. 151,500 30
- ------------------ ----------------------------------------------------------------------------------------------------------
961,487 189
- ------------------------------------------------------------------------------------------------------------------------------
Energy Services--1.4%
4,000 * Input/Output, Inc. 231,000 45
6,600 Schlumberger Ltd. 457,050 89
- ------------------ ----------------------------------------------------------------------------------------------------------
688,050 134
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy Sources--5.5%
13,300 Amoco Corporation 955,937 187
9,500 * Barrett Resources Corporation 279,062 55
15,500 Burlington Resources, Inc. 608,375 119
33,000 Unocal Corporation 961,125 188
- ------------------ ----------------------------------------------------------------------------------------------------------
2,804,499 549
- ------------------ ----------------------------------------------------------------------------------------------------------
Entertaiment Products--1.3%
6,000 * Coleman Company, Inc. (New) 210,750 41
7,000 Harley-Davidson, Inc. 201,250 39
8,500 * Speedway Motorsports, Inc. 255,000 50
- ------------------ ----------------------------------------------------------------------------------------------------------
667,000 130
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial Services--2.9%
11,500 American Express Company 475,813 93
8,320 Federal National Mortgage Association 1,032,720 202
- ------------------ ----------------------------------------------------------------------------------------------------------
1,508,533 295
- ------------------ ----------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--4.0%
6,000 * Canadaigua Wine Company, Inc. Class "A" 195,750 38
18,000 Pepsico, Inc. 1,005,750 197
3,400 * Robert Mondavi Corporation Class "A" 93,925 18
22,600 Sara Lee Corporation 720,375 141
- ------------------ ----------------------------------------------------------------------------------------------------------
2,015,800 394
- ------------------ ----------------------------------------------------------------------------------------------------------
Health Services--1.0%
6,000 * American Medical Response, Inc. 195,000 38
30,000 * Beverly Enterprises 318,750 62
- ------------------ ----------------------------------------------------------------------------------------------------------
513,750 100
- ------------------------------------------------------------------------------------------------------------------------------
Household Products--4.4%
10,000 Armor All Products Corporation 181,250 35
9,000 * Bush Boake Allen, Inc. 246,375 48
14,300 Kimberly-Clark Corporation 1,183,325 231
7,500 Procter & Gamble Company 622,500 122
- ------------------ ----------------------------------------------------------------------------------------------------------
2,233,450 436
- ------------------ ----------------------------------------------------------------------------------------------------------
Insurance--4.0%
8,175 American International Group, Inc. 756,187 148
6,000 American Re Corporation 245,250 48
8,000 Frontier Insurance Group, Inc. 256,000 50
5,000 General Re Corporation 775,000 151
- ------------------ ----------------------------------------------------------------------------------------------------------
2,032,437 397
- ------------------ ----------------------------------------------------------------------------------------------------------
Machinery & Manufacturing--1.8%
10,500 Donaldson Company 263,812 52
9,100 Minnesota Mining & Manufacturing Company 602,875 118
2,300 * MSC Industrial Direct Company, Inc. Class "A" 63,250 12
- ------------------ ----------------------------------------------------------------------------------------------------------
929,937 182
- ------------------ ----------------------------------------------------------------------------------------------------------
Media--8.6%
7,000 ADVO, Inc. 182,000 35
54,000 Comcast Corporation Class "A" 982,127 192
12,000 Dun & Bradstreet Corporation 777,000 152
9,000 Gannett Company 552,375 108
6,500 Houghton Mifflin Company 279,500 55
21,400 * Viacom, Inc. Class "B" 1,013,825 198
18,000 Vodafone Group PLC (ADR) 634,500 124
- ------------------ ----------------------------------------------------------------------------------------------------------
4,421,327 864
- ------------------------------------------------------------------------------------------------------------------------------
Medical Products--3.0%
22,000 Abbott Laboratories 918,500 179
14,500 * Biomet, Inc. 259,188 51
9,000 * Datascope Corporation 216,000 42
5,000 Life Technologies, Inc. 136,250 27
- ------------------ ----------------------------------------------------------------------------------------------------------
1,529,938 299
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Products--1.3%
8,000 Bemis Company, Inc. 205,000 40
12,000 International Paper Company 454,500 89
- ------------------ ----------------------------------------------------------------------------------------------------------
659,500 129
- ------------------ ----------------------------------------------------------------------------------------------------------
Real Estate Companies--.5%
10,000 * Doubletree Corporation 262,500 51
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail--9.0%
12,000 Arbor Drugs, Inc. 252,000 49
25,000 * AutoZone, Inc. 721,875 141
10,000 * Barnes & Noble, Inc. 290,000 57
10,000 * Gymboree Corporation 206,250 40
11,000 Home Depot, Inc. 526,625 103
18,000 May Department Stores Company 760,500 149
19,000 Rite Aid Corporation 650,750 127
10,000 * Sports Authority, Inc. 203,750 40
9,300 Talbots, Inc. 267,375 52
32,600 Wal-Mart Stores, Inc. 729,425 143
- ------------------ ----------------------------------------------------------------------------------------------------------
4,608,550 901
- ------------------ ----------------------------------------------------------------------------------------------------------
Software & Services--8.9%
9,000 * American Management Systems, Inc. 270,000 53
9,000 Automatic Data Processing, Inc. 668,250 131
9,000 * Bisys Group, Inc. 276,750 54
12,000 * BMC Software, Inc. 513,000 100
7,000 * Cognos, Inc. 312,375 61
10,800 * Computer Sciences Corporation 758,700 148
5,600 First Data Corporation 374,500 73
6,300 * Microsoft Corporation 552,825 108
13,000 * Policy Management Systems Corporation 619,125 121
10,700 * Systems & Computer Technology Corporation 212,663 42
- ------------------ ----------------------------------------------------------------------------------------------------------
4,558,188 891
- ------------------ ----------------------------------------------------------------------------------------------------------
Telephone--5.1%
19,700 A T & T Corp. 1,275,575 249
7,000 Century Telephone Enterprises 222,250 43
13,900 MCI Communications Corporation 363,137 71
14,300 * MFS Communications Company, Inc. 761,475 149
- ------------------ ----------------------------------------------------------------------------------------------------------
2,622,437 512
- ------------------ ----------------------------------------------------------------------------------------------------------
Transportation--.9%
9,500 Air Express International Corporation 218,500 42
4,000 Airborne Freight 106,500 21
7,000 Werner Enterprises, Inc. 141,750 28
- ------------------ ----------------------------------------------------------------------------------------------------------
466,750 91
- ------------------ ----------------------------------------------------------------------------------------------------------
Travel & Leisure--1.9%
10,000 * Landry's Seafood Restaurants, Inc. 170,625 33
8,000 McDonald's Corporation 361,000 71
18,000 Southwest Airlines Company 418,500 82
- ------------------ ----------------------------------------------------------------------------------------------------------
950,125 186
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $41,695,820) 50,012,270 9,774
- ------------------ ----------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--2.0%
1,004M Morgan Stanley Securities, Inc. 5 1/2%, 1/2/96, (collateralized by
$730M U.S. Treasury Note, 9 1/4%, 2/15/16) (cost $1,004,000) 1,004,000 196
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $42,699,820) 99.7% 51,016,270 9,970
Other Assets, Less Liabilities .3 154,953 30
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $51,171,223 $10,000
================== ==========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-High Yield Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--87.8%
Aerospace/Defense--2.5%
$ 500M Fairchild Industries, Inc., 12 1/4%, 1999 $ 535,000 $ 127
500M Howmet Corp., 10%, 2003 (Note 4) 520,000 124
- ------------------ ----------------------------------------------------------------------------------------------------------
1,055,000 251
- ------------------ ----------------------------------------------------------------------------------------------------------
Apparel/Textiles--1.4%
600M Westpoint Stevens, Inc., 9 3/8%, 2005 594,000 142
- ------------------ ----------------------------------------------------------------------------------------------------------
Automotive--3.7%
800M SPX Corp., 11 3/4%, 2002 852,000 204
700M Walbro Corp., 9 7/8%, 2005 (Note 4) 703,500 168
- ------------------ ----------------------------------------------------------------------------------------------------------
1,555,500 372
- ------------------ ----------------------------------------------------------------------------------------------------------
Chemicals--4.6%
1,000M Harris Chemical North America, Inc., 0%-10 1/4%, 2001 973,750 232
600M Rexene Corp., 11 3/4%, 2004 637,500 152
300M Synthetic Industries, Inc., 12 3/4%, 2002 295,500 71
- ------------------ ----------------------------------------------------------------------------------------------------------
1,906,750 455
- ------------------ ----------------------------------------------------------------------------------------------------------
Computers/Software/Business Equipment--1.2%
500M Bell & Howell Co., 10 3/4%, 2002 533,750 127
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Products--1.8%
700M Herff Jones, Inc., 11%, 2005 752,500 180
- ------------------ ----------------------------------------------------------------------------------------------------------
Electrical Equipment--3.3%
700M Essex Group, Inc., 10%, 2003 693,000 165
700M IMO Industries, Inc., 12%, 2001 714,000 171
- ------------------ ----------------------------------------------------------------------------------------------------------
1,407,000 336
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--9.0%
1,000M Clark R & M Holdings, Inc., 0%, 2000 667,500 159
700M Falcon Drilling Co., Inc., 12 1/2%, 2005 770,000 184
800M Giant Industries, Inc., 9 3/4%, 2003 812,000 194
800M United Meridian Corp., 10 3/8%, 2005 850,000 203
650M Vintage Petroleum, Inc., 9%, 2005 658,936 157
- ------------------ ----------------------------------------------------------------------------------------------------------
3,758,436 897
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial Services--2.1%
700M American Life Holding Co., 11 1/4%, 2004 735,000 176
260M Lomas Mortgage, USA, 10 1/4%, 2002 (Defaulted) (Note 7) 131,300 31
- ------------------ ----------------------------------------------------------------------------------------------------------
866,300 207
- ------------------ ----------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.5%
600M Van de Kamps, Inc., 12%, 2005 (Note 4) 624,000 149
- ------------------ ----------------------------------------------------------------------------------------------------------
Gaming/Lodging--3.0%
650M GB Property Funding, Inc., 10 7/8%, 2004 570,375 136
700M Showboat, Inc., 9 1/4%, 2008 707,000 169
- ------------------ ----------------------------------------------------------------------------------------------------------
1,277,375 305
- ------------------ ----------------------------------------------------------------------------------------------------------
Healthcare--9.5%
750M Abbey Healthcare Group, Inc., 9 1/2%, 2002 798,750 191
700M Genesis Healthcare, Inc., 9 3/4%, 2005 742,000 177
600M Integrated Health Services, Inc., 9 5/8%, 2002 613,500 146
400M Integrated Health Services, Inc., 10 3/4%, 2004 430,000 103
500M Mediq/PRN Life Support Services, Inc., 11 1/8%, 1999 500,000 119
800M Tenet Healthcare Corp., 10 1/8%, 2005 889,000 212
- ------------------ ----------------------------------------------------------------------------------------------------------
3,973,250 948
- ------------------ ----------------------------------------------------------------------------------------------------------
Media/Cable Television--16.3%
1,000M Act III Broadcasting, Inc., 10 1/4%, 2005 1,022,500 244
600M Adelphia Communications, Inc., 9 7/8%, 2005 546,000 130
1,000M Affiliated Newspaper Investments, 0%-13 1/4%, 2006 595,000 142
1,000M Bell Cablemedia PLC, 0%-11.95%, 2004 707,500 169
500M Diamond Cable Communications PLC, 0%-11 3/4%, 2005 295,625 71
1,400M Echostar Communications Corp., 0%-12 7/8%, 2004 945,000 226
500M Garden State Newspapers, Inc., 12%, 2004 507,500 121
750M Outdoor Systems, Inc., 10 3/4%, 2003 727,500 174
400M PanAmSat Capital Corp., 0%-11 3/8%, 2003 326,000 78
500M Rogers Cablesystems, Inc., 10%, 2005 539,375 129
600M World Color Press, Inc., 9 1/8%, 2003 621,000 148
- ------------------ ----------------------------------------------------------------------------------------------------------
6,833,000 1,632
- ------------------ ----------------------------------------------------------------------------------------------------------
Mining/Metals--6.4%
634M Carbide/Graphite Group, Inc., 11 1/2%, 2003 687,099 164
800M Gulf States Steel, Inc., 13 1/2%, 2003 (Note 4) 724,000 173
900M WCI Steel, Inc., 10 1/2%, 2002 875,250 209
400M Wheeling-Pittsburgh Steel Corp., 9 3/8%, 2003 378,000 90
- ------------------ ----------------------------------------------------------------------------------------------------------
2,664,349 636
- ------------------ ----------------------------------------------------------------------------------------------------------
Miscellaneous--1.8%
700M Monarch Marking Systems, Inc., 12 1/2%, 2003 735,000 175
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Products--9.0%
500M Container Corp., 11 1/4%, 2004 517,500 124
500M Gaylord Container Corp., 11 1/2%, 2001 516,250 123
800M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 883,000 211
800M S.D. Warren Co., Inc., 12%, 2004 884,000 211
1,000M Stone Container Corp., 9 7/8%, 2001 976,250 233
- ------------------ ----------------------------------------------------------------------------------------------------------
3,777,000 902
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail-Food/Drug--1.9%
800M P&C Food Markets, Inc., 11 1/2%, 2001 784,000 187
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail-General Merchandise--1.7%
1M Barry's Jewelers, Inc., 12 5/8%, 1996 505 --
750M General Host Co., Inc., 11 1/2%, 2002 708,750 169
- ------------------ ----------------------------------------------------------------------------------------------------------
709,255 169
- ------------------------------------------------------------------------------------------------------------------------------
Telecommunications--5.9%
1,500M American Communication Services, Inc., 0%-13%, 2005 (Note 4) 825,000 197
750M CAI Wireless Systems, Inc., 12 1/4%, 2002 804,375 192
800M Metrocall, Inc., 10 3/8%, 2007 852,000 203
- ------------------ ----------------------------------------------------------------------------------------------------------
2,481,375 592
- ------------------ ----------------------------------------------------------------------------------------------------------
Transportation--1.2%
500M Trism, Inc., 10 3/4%, 2000 487,500 116
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $36,067,586) 36,775,340 8,778
- ------------------ ----------------------------------------------------------------------------------------------------------
COMMON STOCKS--.7%
Financial Services--.2%
4,000 * Olympic Financial Ltd. 65,000 16
- ------------------ ----------------------------------------------------------------------------------------------------------
Gaming/Lodging--.0%
1,620 * Divi Hotels, Inc. 122 --
2,000 * Goldriver Hotel & Casino Corp., Series "B" 374 --
- ------------------ ----------------------------------------------------------------------------------------------------------
496 --
- ------------------ ----------------------------------------------------------------------------------------------------------
Media/Cable Television--.5%
1,000 * Affiliated Newspaper Investments 25,000 6
8,400 * Echostar Communications Class "A" 203,700 48
- ------------------ ----------------------------------------------------------------------------------------------------------
228,700 54
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $85,096) 294,196 70
- ------------------ ----------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--6.1%
Financial Services--4.4%
7,000 California Federal Bank, 10 5/8%, Series "B" 759,500 181
10,000 First Nationwide Bank, 11 1/2% 1,110,000 265
- ------------------ ----------------------------------------------------------------------------------------------------------
1,869,500 446
- ------------------------------------------------------------------------------------------------------------------------------
Media/Cable Television--.9%
318 PanAmSat Capital Corp., 12 3/4% 358,594 86
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Products--.8%
10,800 * S.D. Warren Co., Inc., 14% 345,600 82
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $2,319,845) 2,573,694 614
- ------------------ ----------------------------------------------------------------------------------------------------------
WARRANTS--.2%
Financial Services--.0%
18 * Reliance Group Holdings, Inc. (expiring 1/28/97) 31 --
- ------------------ ----------------------------------------------------------------------------------------------------------
Gaming/Lodging--.1%
200 * Goldriver Finance Corp., Liquidating Trust 3,000 1
4,200 * President Riverboat Casinos, Inc. (expiring 9/23/96) (Note 4) 12,600 3
- ------------------ ----------------------------------------------------------------------------------------------------------
15,600 4
- ------------------ ----------------------------------------------------------------------------------------------------------
Mining/Metals--.0%
800 * Gulf State Steel Acquisition Corp. (expiring 4/1/03) (Note 4) 400 --
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Products--.1%
10,800 * S.D. Warren Co., Inc. (expiring 12/15/06) (Note 4) 54,000 13
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail-General Merchandise--.0%
100 * Payless Cashways, Inc. (expiring 11/1/96) 25 --
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $5,375) 70,056 17
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.6%
$1,250M Appalachian Power Company, 6%, 1/2/96 1,249,792 298
250M Massachusetts Electric Company, 5.85%, 1/9/96 249,674 60
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,499,466) 1,499,466 358
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $39,977,368) 98.4% 41,212,752 9,837
Other Assets, Less Liabilities 1.6 681,209 163
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $41,893,961 $10,000
================== ==========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-International Securities Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--95.0%
United States--23.6%
5,625 American International Group, Inc. $ 520,313 $ 127
6,500 American Re Corporation 265,688 65
4,000 * AMR Corporation 297,000 72
8,500 A T & T Corp. 550,375 134
2,000 Capital Cities/ABC, Inc. 246,750 60
7,500 Dow Chemical Company 527,813 129
7,000 Exxon Corporation 560,875 137
2,500 Federal National Mortgage Association 310,313 76
6,000 General Electric Company 432,000 105
5,000 Gillette Company 260,625 64
4,000 Hewlett-Packard Company 335,000 82
16,000 International Paper Company 606,000 148
9,500 J.C. Penney Company 452,438 110
6,000 Johnson & Johnson 513,750 125
7,000 Kimberly Clark Corporation 579,250 141
15,000 MCI Communications 391,875 96
4,000 Minnesota Mining & Manufacturing Company 265,000 65
5,000 Pepsico, Inc. 279,375 68
10,000 Pharmacia & Upjohn, Inc. 387,500 94
700 * Schweitzer-Mauduit International, Inc. 16,188 4
21,000 Unocal Corporation 611,625 149
696 * Viacom Inc., Class "A" 31,929 8
8,273 * Viacom Inc., Class "B" 391,933 96
22,000 Wal-Mart Stores 492,250 120
8,300 York International Corporation 390,100 95
- ------------------ ----------------------------------------------------------------------------------------------------------
9,715,965 2,370
- ------------------ ----------------------------------------------------------------------------------------------------------
Japan--15.5%
8,400 Canon Sales Company Ltd. 223,941 56
50,000 Chichibu Onoda Cement Company 267,080 65
19,000 Chugai Pharmaceutical 182,168 45
17,000 Dai Nippon Printing Company Ltd. 288,410 70
5,000 Ito Yokado Company Ltd. 308,284 76
35,000 Kawasaki Heavy Industries 161,168 39
51,000 Kawasaki Steel 177,990 43
20,000 Keio Teito Railway 116,526 28
1,000 Kyocera Corporation 74,357 19
1,000 Kyoritsu Air Technology, Inc. 10,858 3
2,000 Mabuchi Motor Company Ltd. 124,477 30
10,000 Matsushita Electric Industrial Company Ltd. 162,866 40
22,000 Minebea Company Ltd. 184,699 45
6,000 Mitsubishi Bank Ltd. 141,345 34
28,000 Mitsui Petrochemical Industries 229,370 56
2,000 Murata Manufacturing Company Ltd. 73,678 18
2,000 Nihon Jumbo Company Ltd. 69,994 17
16,000 Nippon Express 154,179 38
25 Nippon Telegraph & Telephone Corp. 202,372 49
92,000 * NKK Corporation 247,940 60
14,000 Nomura Securities Company Ltd. 305,375 74
6,000 Orix Corporation 247,208 60
2,000 Riso Kagaku Corporation 168,877 41
15,000 Sakura Bank Ltd. 190,496 46
1,000 Sankyo Company Ltd. 22,491 5
4,000 Sanwa Bank Ltd. 81,433 20
1,500 Sanyo Shinpan Finance Company Ltd. 123,604 30
5,000 Secom Company Ltd. 348,031 85
3,000 Sekisui Chemical Company 44,207 11
7,400 Shimamura Corporation 286,239 70
21,000 Showa Corporation 161,034 39
4,000 Sony Corporation 240,035 59
20,000 Sumitimo Marine & Fire 164,418 40
40,000 Sumitomo Realty & Development 283,076 69
16,000 Sumitomo Trust and Banking 226,462 55
5,000 Toda Construction Company Ltd. 43,383 11
1,000 Tsutsumi Jewelry Company Ltd. 50,120 12
- ------------------ ----------------------------------------------------------------------------------------------------------
6,388,191 1,558
- ------------------ ----------------------------------------------------------------------------------------------------------
France--5.7%
6,000 Banque Nationale De Paris 271,022 66
800 Canal Plus SA 150,172 37
2,430 Compagnie De Saint Gobain 269,316 66
1,301 Euro Rscg Worldwide SA 106,413 26
1,019 Groupe Danone 168,361 41
900 Peugeot Citroen SA 118,886 29
5,600 Renault SA 161,459 39
14,500 Rhone-Poulenc SA Series "A" 311,028 76
2,334 Societe Generale Paris 288,744 70
2,200 Technip SA 151,604 37
- ------------------ ----------------------------------------------------------------------------------------------------------
2,343,158 571
- ------------------ ----------------------------------------------------------------------------------------------------------
United Kingdom--5.4%
18,000 Associated British Foods PLC 103,122 25
26,500 Bass PLC 295,822 72
262,000 BET PLC 516,612 126
30,000 Body Shop International PLC 70,797 17
60,000 British Steel PLC 151,608 37
15,000 British Telecommunictions PLC 82,443 20
36,000 Northern Foods PLC 95,576 23
20,244 Powergen PLC 167,367 41
30,000 Royal Insurance Holdings PLC 177,927 43
60,000 Tomkins PLC 262,698 65
80,000 Vodafone Group PLC 286,920 70
- ------------------ ----------------------------------------------------------------------------------------------------------
2,210,892 539
- ------------------ ----------------------------------------------------------------------------------------------------------
Netherlands--4.8%
20,000 Elsevier NV CVA 267,000 66
9,301 International Nederlanden Groep NV CVA 622,004 152
3,500 Unilever NV CVA 492,361 120
14,000 Vendex International NV (BDR) 416,597 102
1,250 Verenigd Bezit VNU 171,789 42
- ------------------ ----------------------------------------------------------------------------------------------------------
1,969,751 482
- ------------------ ----------------------------------------------------------------------------------------------------------
Germany--4.0%
1,400 Bayer AG 370,229 90
200 Beiersdorf AG 137,639 34
350 Daimler-Benz AG 177,045 43
500 Degussa AG 168,730 41
3,000 Deutsche Bank AG 142,740 35
300 Karstadt AG 123,246 30
850 Mannesmann AG 271,223 66
5,500 Veba AG 235,943 58
- ------------------ ----------------------------------------------------------------------------------------------------------
1,626,795 397
- ------------------ ----------------------------------------------------------------------------------------------------------
Spain--3.9%
2,300 Acerinox SA Regd 232,624 57
14,000 Banco Bilbao Vizcaya 504,301 123
4,000 Empresa Nacional De Electricidad SA 226,516 55
3,200 Empresa Nacional De Electricidad SA (ADR) 183,200 45
11,000 Repsol SA (ADR) 361,625 88
7,500 Telefonica De Espana 103,861 25
- ------------------ ----------------------------------------------------------------------------------------------------------
1,612,127 393
- ------------------ ----------------------------------------------------------------------------------------------------------
Australia--3.9%
11,205 Advance Bank of Australia 89,851 22
50,892 Amcor Ltd. 359,638 88
55,159 Australia & New Zealand Banking Group 258,905 63
44,660 Broken Hill Proprietary Ltd. 631,197 154
16,246 National Australia Bank Ltd. 146,225 35
6,200 Qantas Airways (ADR) (Note 4) 103,308 25
- ------------------ ----------------------------------------------------------------------------------------------------------
1,589,124 387
- ------------------ ----------------------------------------------------------------------------------------------------------
Norway--3.7%
45,200 Christiania Bank OG 105,881 26
8,378 Hafslund Nyco Series "A" Free 219,467 54
8,500 Kvaerner AS Series "A" 301,368 72
9,000 Orkla AS Class "A" 448,728 109
33,000 Saga Petroleum "A" Free 441,365 108
- ------------------ ----------------------------------------------------------------------------------------------------------
1,516,809 369
- ------------------ ----------------------------------------------------------------------------------------------------------
Hong Kong--3.3%
94,099 Hong Kong Telecom 167,948 41
58,000 Hutchison Whampoa Ltd. 353,313 86
42,000 Sun Hung Kai Properties 343,572 84
63,000 Swire Pacific Class "A" 488,880 119
- ------------------ ----------------------------------------------------------------------------------------------------------
1,353,713 330
- ------------------ ----------------------------------------------------------------------------------------------------------
Switzerland--3.0%
535 Ciba Geigy AG Regd 471,929 114
580 Nestle AG Regd 643,184 157
250 Sulzer AG PC 133,620 33
- ------------------ ----------------------------------------------------------------------------------------------------------
1,248,733 304
- ------------------ ----------------------------------------------------------------------------------------------------------
Singapore--2.8%
34,000 Development Bank of Singapore 423,055 104
55,000 Keppel Corporation 489,935 119
18,000 Overseas Chinese Banking Corporation Ltd. 225,243 55
- ------------------ ----------------------------------------------------------------------------------------------------------
1,138,233 278
- ------------------ ----------------------------------------------------------------------------------------------------------
Sweden--1.7%
8,100 Astra AB Series "A" Free 323,891 78
14,000 Avesta Sheffield AB Free 123,581 30
11,000 * BT Industries AB 121,167 30
11,000 Stora Kopparbergs Bergslags Series "A" 129,466 32
- ------------------ ----------------------------------------------------------------------------------------------------------
698,105 170
- ------------------ ----------------------------------------------------------------------------------------------------------
Italy--1.6%
160,000 Banca Commercial Italiana 341,904 83
199,000 Telecom Italia SPA 309,823 76
- ------------------ ----------------------------------------------------------------------------------------------------------
651,727 159
- ------------------ ----------------------------------------------------------------------------------------------------------
Denmark--1.6%
21,700 Tele Danmark A/S Class "B" (ADR) 599,463 146
1,000 Unidanmark A/S Class "A" Regd 49,623 12
- ------------------ ----------------------------------------------------------------------------------------------------------
649,086 158
- ------------------ ----------------------------------------------------------------------------------------------------------
Canada--1.6%
35,000 Canadian Pacific Ltd. 634,375 155
- ------------------ ----------------------------------------------------------------------------------------------------------
New Zealand--1.3%
423,000 Brierley Investments Ltd. 334,593 82
84,000 Carter Holt Harvey Ltd. 181,213 44
- ------------------ ----------------------------------------------------------------------------------------------------------
515,806 126
- ------------------ ----------------------------------------------------------------------------------------------------------
Finland--1.2%
70,000 * Merita Bank Ltd. 177,331 43
3,000 Metsa Serla OY Class "B" 92,584 23
5,500 * Nokia Corporation Class "A" (ADR) 213,813 52
- ------------------ ----------------------------------------------------------------------------------------------------------
483,728 118
- ------------------ ----------------------------------------------------------------------------------------------------------
Philippines--1.1%
22,000 * Philippine National Bank 243,239 59
204,600 * Pilipino Telephone 206,707 50
- ------------------ ----------------------------------------------------------------------------------------------------------
449,946 109
- ------------------ ----------------------------------------------------------------------------------------------------------
Mexico--.9%
19,000 Cementos De Mexico SA Class "A" 62,883 15
24,000 Fomento Economico Mexicano SA Class "B" 54,013 13
13,000 * Grupo Carso SA Class "A" 70,190
6,000 Kimberly Clark De Mexico SA Class "A" 90,645 22
10,700 * Transportacion Maritima Mexicana SA Class "A" (ADR) 80,250 20
- ------------------ ----------------------------------------------------------------------------------------------------------
357,981 87
- ------------------ ----------------------------------------------------------------------------------------------------------
Thailand--.7%
5,000 Bangkok Bank Public Company Ltd. Foreign Regd 60,740 15
49,200 Bangkok Metropolitan Bank Public Company Ltd. 45,898 11
192,800 Bangkok Metropolitan Bank Public Company Ltd. Foreign Regd 183,681 45
- ------------------ ----------------------------------------------------------------------------------------------------------
290,319 71
- ------------------ ----------------------------------------------------------------------------------------------------------
Malaysia--.6%
98,000 Sime Darby Berhad 260,543 64
- ------------------ ----------------------------------------------------------------------------------------------------------
Austria--.6%
1,800 EVN 247,560 60
- ------------------ ----------------------------------------------------------------------------------------------------------
Belgium--.5%
5,000 Delhaize Le Lion 207,277 50
- ------------------ ----------------------------------------------------------------------------------------------------------
Portugal--.5%
10,700 * Portugal Telecom (ADR) 203,300 50
- ------------------ ----------------------------------------------------------------------------------------------------------
Brazil--.4%
7,000 Electrobras ON (ADR) 94,709 23
10,000 Usiminas Siderurg Minas (ADR) 81,281 20
- ------------------ ----------------------------------------------------------------------------------------------------------
175,990 43
- ------------------ ----------------------------------------------------------------------------------------------------------
Indonesia--.4%
49,000 Jaya Real Property Foreign Regd 131,795 32
7,500 Semen Gresik (Note 4) 20,993 5
- ------------------ ----------------------------------------------------------------------------------------------------------
152,788 37
- ------------------ ----------------------------------------------------------------------------------------------------------
Chile-- .3%
1,500 Compania De Telecomunicaciones De Chile SA (ADR) 124,313 30
- ------------------ ----------------------------------------------------------------------------------------------------------
Argentina--.3%
2,000 Telefonica De Argentina SA Class "B" (ADR) 54,500 13
3,000 YPF SA Class "D" (ADR) 64,875 16
- ------------------ ----------------------------------------------------------------------------------------------------------
119,375 29
- ------------------ ----------------------------------------------------------------------------------------------------------
India--.1%
2,000 ITC Ltd. (GDR) (Note 4) 14,276 3
1,000 Reliance Industries Ltd. (GDS) (Note 4) 14,000 4
- ------------------ ----------------------------------------------------------------------------------------------------------
28,276 7
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $32,506,045) 38,963,986 9,501
- ------------------ ----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.7%
300M United States Treasury Bill, 5.33%, 1/25/96 298,934 73
300M United States Treasury Bill, 5.34%, 1/25/96 298,933 73
100M United States Treasury Bill, 5.35%, 1/25/96 99,643 24
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $697,510) 697,510 170
- ------------------ ----------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--2.7%
1,116M Aubrey G. Lanston & Co., Inc., 5.90%, 1/2/96 (collateralized by $1,115M
U.S. Treasury Notes, 61/4%, 12/31/1996) (cost $1,116,000 1,116,000 272
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $34,319,555) 99.4% 40,777,496 9,943
Other Assets, Less Liabilities .6 234,066 57
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $41,011,562 $10,000
================== ==========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-International Securities Fund
At December 31, 1995, sector diversification of the Portfolio was as follows
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage
Sector Diversification of Net Assets Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Banks 11.8% $ 4,820,123
Food/Beverage/Tobacco 7.2 2,943,894
Drugs 6.8 2,802,453
Telephone 6.8 2,794,608
Retail 6.0 2,452,977
Business Services 5.9 2,391,958
Energy Sources 5.8 2,386,518
Metals & Minerals 5.5 2,266,493
Media 4.5 1,855,278
Real Estate Companies 3.9 1,600,636
Paper Forest Products 3.7 1,529,540
Transportation 3.3 1,358,739
Electric Utilities 2.8 1,155,295
Insurance 2.8 1,128,346
Electrical Equipment 2.7 1,107,745
Financial Services 2.6 1,073,885
Household Products 2.6 1,048,311
Machinery & Manufacturing 2.0 826,120
Chemicals 1.9 771,183
Automotive 1.5 618,424
Computers & Office Equipment 1.2 503,877
Entertainment Products 1.0 402,901
Travel & Leisure 1.0 400,308
Electronics .8 332,734
Communications Equipment .5 213,813
Medical Products .3 133,620
Housing .1 44,207
U.S. Government Obligations 1.7 697,510
Repurchase Agreements 2.7 1,116,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments 99.4 40,777,496
Other Assets, Less Liabilities .6 234,066
- ------------------ ---------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $41,011,562
================== ===============================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Investment Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--80.1%
Aerospace/Defense--5.2%
$ 300M Boeing Co., 6.35%, 2003 $ 308,038 $ 189
250M Lockheed Corp., 6 3/4%, 2003 261,500 161
250M Rockwell International Corp., 8 3/8%, 2001 279,481 172
- ------------------ ----------------------------------------------------------------------------------------------------------
849,019 522
- ------------------ ----------------------------------------------------------------------------------------------------------
Automotive--1.5%
250M Hertz Corporation, 6 3/8%, 2005 251,252 155
- ------------------ ----------------------------------------------------------------------------------------------------------
Building Materials--.7%
100M Masco Corp., 9%, 2001 114,198 70
- ------------------ ----------------------------------------------------------------------------------------------------------
Chemicals--2.0%
300M Lubrizol Corp., 7 1/4%, 2025 330,011 203
- ------------------ ----------------------------------------------------------------------------------------------------------
Conglomerates--3.7%
300M Hanson Overseas, B.V., 7 3/8%, 2003 322,127 198
250M Tenneco, Inc., 7 7/8%, 2002 272,987 168
- ------------------ ----------------------------------------------------------------------------------------------------------
595,114 366
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--2.1%
300M American Home Products Corp., 7.90%, 2005 338,058 208
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Products--1.6%
250M Mattel, Inc., 6 3/4%, 2000 256,530 158
- ------------------ ----------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--11.7%
250M Baltimore Gas & Electric Co., 6 1/2%, 2003 256,517 158
200M Carolina Power & Light Co., 7 3/4%, 2003 205,174 126
200M Commonwealth Edison, 8 1/4%, 2006 228,141 140
250M Duke Power Co., 5 7/8%, 2003 244,550 150
200M Kansas Gas & Electric Co., 7.60%, 2003 215,688 133
75M Old Dominion Electric Cooperative, 7.97%, 2002 81,425 50
300M Pennsylvania Power & Light Co., 6 7/8%, 2003 311,728 192
250M Philadelphia Electric Co., 8%, 2002 272,850 168
75M Southwestern Electric Power Co., 7%, 2007 80,152 49
- ------------------ ----------------------------------------------------------------------------------------------------------
1,896,225 1,166
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--2.2%
315M Baroid Corp., 8%, 2003 349,495 215
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial Services--10.9%
75M Banc One Corp., 7 1/4%, 2002 79,896 49
40M BankAmerica Corp., 9 1/2%, 2001 46,315 28
200M Barnett Banks, Inc., 8 1/2%, 1999 215,391 132
300M Chemical Bank, Inc., 7%, 2005 316,138 194
200M Citicorp, 8%, 2003 221,008 136
150M First Union Corp., 8 1/8%, 2002 165,956 102
250M Mellon Bank N.A., 6 1/2%, 2005 254,963 157
50M Meridian Bancorp, 7 7/8%, 2002 54,849 34
75M Morgan Guaranty Trust Co., 7 3/8%, 2002 80,537 50
300M Nationsbank Corporation., 8 1/8%, 2002 331,500 204
- ------------------ ----------------------------------------------------------------------------------------------------------
1,766,553 1,086
- ------------------ ----------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--5.0%
250M Anheuser Busch Companies, Inc., 7%, 2005 262,918 162
25M Coca-Cola Enterprises, Inc., 7 7/8%, 2002 27,492 17
300M Hershey Foods Corp., 6.70%, 2005 316,265 194
200M Philip Morris Cos., Inc., 7 1/8%, 2002 209,819 129
- ------------------ ----------------------------------------------------------------------------------------------------------
816,494 502
- ------------------ ----------------------------------------------------------------------------------------------------------
Food Services--1.6%
250M McDonalds Corporation, 6 5/8%, 2005 258,432 159
- ------------------ ----------------------------------------------------------------------------------------------------------
Healthcare--2.0%
300M Columbia /HCA Healthcare, 7.69%, 2025 332,035 204
- ------------------ ----------------------------------------------------------------------------------------------------------
Investment/Finance Companies--6.0%
300M Associates Corp. of North America, 7 7/8%, 2001 327,871 202
300M General Electric Capital Corp., 7 7/8%, 2006 343,325 211
300M General Motors Acceptance Corp., 7 1/8%, 1999 312,301 192
- ------------------ ----------------------------------------------------------------------------------------------------------
983,497 605
- ------------------ ----------------------------------------------------------------------------------------------------------
Media/Cable Television--5.0%
300M New York Times Co., Inc., 7 5/8%, 2005 333,111 205
250M PanAmSat Capital Corp., 9 3/4%, 2000 263,750 162
200M Tele-Communications, Inc., 8 1/4%, 2003 217,718 134
- ------------------ ----------------------------------------------------------------------------------------------------------
814,579 501
- ------------------ ----------------------------------------------------------------------------------------------------------
Natural Gas--1.9%
300M Columbia Gas System, Inc., 6.80%, 2005 309,953 191
- ------------------ ----------------------------------------------------------------------------------------------------------
Oil/Natural Gas--1.7%
250M BP America, Inc., 7 7/8%, 2002 276,599 170
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Prod/cts--3.4%
100M S. D. Warren Company, 12%, 2004 110,500 67
150M Stone Container Corp., 10 3/4%, 2002 155,813 96
250M Temple Inland, Inc., 9%, 2001 285,606 176
- ------------------ ----------------------------------------------------------------------------------------------------------
551,919 339
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail-General Merchandise--1.5%
250M Penney J.C. & Co., 6 1/8%, 2003 250,904 154
- ------------------ ----------------------------------------------------------------------------------------------------------
Technology--3.4%
250M International Business Machines Corp., 6 3/8%, 2000 256,290 158
275M Xerox Corp., 7.15%, 2004 293,085 180
- ------------------ ----------------------------------------------------------------------------------------------------------
549,375 338
- ------------------ ----------------------------------------------------------------------------------------------------------
Telephone--7.0%
30M GTE Corp., 8.85%, 1998 31,832 20
350M MCI Communication Corp., 7 1/2%, 2004 384,448 236
250M New Jersey Bell Telephone Co., 7 3/8%, 2012 258,419 159
200M Pacific Bell Telephone Co., 7%, 2004 210,376 129
250M Southern Bell Telephone & Telegraph Co., Inc., 8 1/8%, 2017 259,348 159
- ------------------ ----------------------------------------------------------------------------------------------------------
1,144,423 703
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $12,405,719) 8,015
- ------------------ ----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--1.9%
300M Federal Home Loan Mortgage Corp., 7.88%, 2004 (cost $300,000) 306,852 189
- ------------------ ----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--8.0%
1,200M U.S. Treasury Note, 7 3/4%., 2000 (cost $1,280,312) 1,303,875 802
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--8.0%
850M Gannett Company, 5.85%, 1/8/96 849,034 522
450M Home Depot, 5.70%, 1/5/96 449,714 277
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,298,748) 1,298,748 799
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $15,284,779) 98.0% 15,944,140 9,805
Other Assets, Less Liabilities 2.0 317,731 195
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $16,261,871 $10,000
================== ==========================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Target 2007 Fund
- ------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principle $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON OBLIGATIONS--84.1%
$ 570M Agency For International Development-Israel ("AID"), 2/15/2007 $ 294,744 $ 299
119M Agency For International Development-Israel ("AID"), 3/15/2007 61,219 62
1,513M Agency For International Development-Israel ("AID"), 8/15/2007 757,797 769
181M Agency For International Development-Israel ("AID"), 10/1/2007 89,771 91
980M Agency For International Development-Israel ("AID"), 2/15/2008 474,768 482
493M Federal Judiciary Office Building ("JOBS"), 2/15/2007 250,530 254
1,030M Federal National Mortgage Association, 8/1/2008 476,340 483
303M Financing Corporations ("FICOS"), 6/6/2007 150,964 153
1,404M Financing Corporations ("FICOS"), 12/6/2007 675,394 685
220M Financing Corporations ("FICOS"), 12/27/2007 105,418 107
4,070M Government Trust Certificate, 11/15/2007 1,992,981 2,021
586M International Bank For Reconstruction & Development, 8/15/2007 287,728 292
3,450M Resolution Funding Corporation, 10/15/2007 1,724,245 1,749
1,950M Tennessee Valley Authority, 11/1/2007 946,395 960
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $7,658,222) 8,288,294 8,407
- ------------------ ----------------------------------------------------------------------------------------------------------
UNITED STATES TREASURY ZERO COUPON OBLIGATIONS--15.0%
200M Treasury Investors Growth Receipts ("TIGERS"), 11/15/2007 98,715 100
2,750M U.S. Treasury Strips, 11/15/2007 1,384,075 1,404
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon Obligations
(cost $1,388,165) 1,482,790 1,504
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $9,046,387) 99.1% 9,771,084 9,911
Other Assets, Less Liabilities .9 88,663 89
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,859,747 $10,000
================== ==========================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
First Investors Life Series Fund-Utilities Income Fund
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--93.2%
Electric Power--44.8%
6,000 American Electric Power Company $ 243,000 $ 165
7,600 Baltimore Gas & Electric Company 216,600 147
5,000 Bangor Hydro-Electric Company 57,500 39
5,000 Carolina Power & Light Company 172,500 117
8,000 CINergy Corporation 245,000 167
2,000 CMS Energy Corporation 59,750 41
9,900 DPL, Inc. 245,025 168
7,750 DQE, Inc. 238,312 162
5,500 DTE Energy Company 189,750 129
6,100 Duke Power Company 288,987 197
1,000 Empresa Nacional De Electricidad SA 57,250 39
7,600 FPL Group, Inc. 352,450 240
8,500 General Public Utilities Corporation 289,000 197
12,000 Houston Industries, Inc. 291,000 198
6,000 Illinova Corporation 180,000 122
3,500 Kansas City Power & Light Company 91,437 63
4,200 New England Electric System 166,425 113
4,500 NIPSCO Industries, Inc. 172,125 117
5,800 Northeast Utilities 141,375 96
3,000 Northern States Power Company 147,375 100
5,000 Ohio Edison Company 117,500 80
10,700 PacifiCorp 227,375 155
4,000 Peco Energy Company 120,500 82
6,500 Pinnacle West Capital Corporation 186,875 127
5,500 Portland General Corporation 160,187 109
6,300 PP&L Resources, Inc. 157,500 107
7,100 Public Service Company of Colorado 251,163 171
8,000 * Public Service Company of New Mexico 141,000 96
7,000 Public Service Enterprise Group, Inc. 214,375 146
3,000 Scana Corporation 85,875 57
8,800 Southern Company 216,700 147
7,800 Teco Energy, Inc. 199,875 136
6,900 Texas Utilities Company 283,763 193
3,000 TNP Enterprises, Inc. 56,250 38
5,000 Unicom Corporation 163,750 111
5,500 Wisconsin Energy Corporation 168,438 115
- ------------------ ----------------------------------------------------------------------------------------------------------
6,595,987 4,487
- ------------------ ----------------------------------------------------------------------------------------------------------
Natural Gas--22.4%
8,800 Atlanta Gas Light Company 173,800 118
3,000 Atmos Energy Corporation 69,000 47
4,400 Brooklyn Union Gas Company 128,700 88
5,000 * Columbia Gas System, Inc. 219,375 149
2,500 Consolidated Natural Gas Company 113,437 77
4,500 El Paso Natural Gas Company 127,687 87
5,000 Enron Corporation 190,625 130
8,000 MCN Corporation 186,000 127
4,400 National Fuel Gas Company 147,950 101
5,000 New Jersey Resources Corporation 150,625 102
4,200 NICOR, Inc. 115,500 79
7,800 Pacific Enterprises 220,350 150
4,400 Panhandle Eastern Corporation 122,650 83
5,000 Piedmont Natural Gas Company, Inc. 116,250 79
5,000 Questar Corporation 167,500 114
4,400 Sonat, Inc. 156,750 107
5,000 Southwest Gas Corporation 88,125 60
1,500 * Tejas Gas Corporation 79,313 54
3,000 Tenneco, Inc. 148,875 101
6,500 UGI Corporation 134,875 92
4,500 Washington Energy Company 83,813 57
4,300 Washington Gas & Light Company 88,150 60
3,000 Wicor, Inc. 96,750 65
3,700 Williams Companies, Inc. 162,338 110
- ------------------ ----------------------------------------------------------------------------------------------------------
3,288,438 2,237
- ------------------ ----------------------------------------------------------------------------------------------------------
Technology--3.4%
5,000 * Airtouch Communications, Inc. 141,250 96
3,000 A T & T Corp. 194,250 132
4,000 Sprint Corporation 159,500 109
- ------------------ ----------------------------------------------------------------------------------------------------------
495,000 337
- ------------------ ----------------------------------------------------------------------------------------------------------
Telecommunications--5.8%
4,000 Comcast Corporation Class "A" 70,500 48
5,000 Ericsson (L.M.) Telephone Co. (ADR) Class "B" 97,500 66
3,000 * LCI International, Inc. 61,500 42
3,000 * MFS Communications Company, Inc. 159,750 109
5,000 * Mobile Telecommunication Technologies Corporation 106,875 73
500 Motorola, Inc. 28,500 19
875 * Tele-Communications, Inc., Liberty Media Group Class "A" 23,515 16
5,000 US West Communications Group 178,750 121
5,000 US West Media Group 95,000 65
1,000 Vodafone Group PLC (ADR) 35,250 24
- ------------------ ----------------------------------------------------------------------------------------------------------
857,140 583
- ------------------ ----------------------------------------------------------------------------------------------------------
Telephone/Utilities--16.8%
5,900 Ameritech Corporation 348,100 237
5,800 Bell Atlantic Corporation 387,875 264
10,600 BellSouth Corporation 461,100 314
3,500 Century Telephone Enterprises 111,125 76
4,400 Frontier Corporation 132,000 90
9,600 GTE Corporation 422,400 287
3,500 NYNEX Corporation 189,000 128
6,100 SBC Communications, Inc. 350,750 239
1,500 Telefonica De Espana (ADR) 62,813 43
- ------------------ ----------------------------------------------------------------------------------------------------------
2,465,163 1,678
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $11,635,880) 13,701,728 9,322
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--5.5%
200M Chevron Oil Corporation, 5.70%, 1/3/96 199,937 136
400M General Telephone Northwest, 5.82%, 1/3/96 399,871 272
200M Hitachi America, 5.90%, 1/10/96 199,705 136
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $799,513) 799,513 544
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $12,435,393) 98.7% 14,501,241 9,866
Other Assets, Less Liabilities 1.3 197,094 134
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $14,698,335 $10,000
================== ==========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 1995
- --------------------------------------------- --------------- ------------- --------------- --------------- ---------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT GROWTH
- --------------------------------------------- --------------- ------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $53,859,731 $4,109,957 $43,809,559 $9,252,545 $42,699,820
=============== ============= =============== =============== ===============
At value (Note 1A) $66,472,517 $4,109,957 $50,929,961 $9,354,063 $51,016,270
Cash (overdraft) 244,737 65,239 241,141 16,956 1,300
Receivables:
Trust shares sold 149,102 4,164 129,155 2,075 115,621
Investment securities sold -- -- 35,000 -- 56,112
Interest and dividends 101,691 -- 10,036 134,681 66,870
Other assets 141 644 578 -- 603
--------------- ------------- --------------- --------------- ---------------
Total Assets 66,968,188 4,180,004 51,345,871 9,507,775 51,256,776
--------------- ------------- --------------- --------------- ---------------
Liabilities
Payables:
Investment securities purchased -- -- 240,178 -- --
Trust shares redeemed 10,453 15,159 161,737 4,819 41,582
Accrued advisory fee 41,528 1,224 31,614 2,760 31,580
Accrued expenses 16,463 2,057 12,389 9 12,391
--------------- ------------- --------------- --------------- ---------------
Total Liabilities 68,444 18,440 445,918 7,588 85,553
--------------- ------------- --------------- --------------- ---------------
Net Assets $66,899,744 $4,161,564 $50,899,953 $9,500,187 $51,171,223
=============== ============= =============== =============== ===============
Net Assets Consist of:
Capital paid in $51,315,635 $4,161,564 $41,523,140 $9,262,818 $40,897,473
Undistributed net investment income 1,018,903 -- 253,600 601,947 459,781
Accumulated net realized
gain (loss) on investments and
foreign currency transactions 1,952,420 -- 2,002,811 (466,096) 1,497,519
Net unrealized appreciation
of investments and translation of
assets in foreign currencies 12,612,786 -- 7,120,402 101,518 8,316,450
--------------- ------------- --------------- --------------- ---------------
Total $66,899,744 $4,161,564 $50,899,953 $9,500,187 $51,171,223
=============== ============= =============== =============== ===============
Shares of Beneficial
Interest Outstanding (Note 2) 3,940,249 4,161,564 2,187,245 903,314 2,499,680
=============== ============= =============== =============== ===============
Net Asset Value, Offering and
Redemption Price Per Share
(Net assets divided
by shares outstanding) $16.98 $1.00 $23.27 $10.52 $20.47
======== ======== ======== ======== ========
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 1995
- --------------------------------------------- --------------- --------------- --------------- --------------- ---------------
INTERNATIONAL INVESTMENT TARGET UTILITIES
HIGH YIELD SECURITIES GRADE MATURITY 2007 INCOME
- --------------------------------------------- --------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $39,977,368 $34,319,555 $15,284,779 $9,046,387 $12,435,393
=============== =============== =============== =============== ===============
At value (Note 1A) $41,212,752 $40,777,496 $15,944,140 $9,771,084 $14,501,241
Cash (overdraft) (84,149) 19,547 66,404 29,874 87,522
Receivables:
Trust shares sold 37,608 159,030 15,283 84,297 69,014
Investment securities sold -- 60,322 -- 47,152 --
Interest and dividends 798,851 88,993 266,508 -- 44,681
Other assets 792 132 -- -- 35
--------------- --------------- --------------- --------------- ---------------
Total Assets 41,965,854 41,105,520 16,292,335 9,932,407 14,702,493
--------------- --------------- --------------- --------------- ---------------
Liabilities
Payables:
Investment securities purchased -- 22,243 -- 72,660 --
Trust shares redeemed 30,499 20,192 19,238 -- 48
Accrued advisory fee 25,970 25,131 4,580 -- 4,110
Accrued expenses 15,424 26,392 6,646 -- --
--------------- --------------- --------------- --------------- ---------------
Total Liabilities 71,893 93,958 30,464 72,660 4,158
--------------- --------------- --------------- --------------- ---------------
Net Assets $41,893,961 $41,011,562 $16,261,871 $9,859,747 $14,698,335
=============== =============== =============== =============== ===============
Net Assets Consist of:
Capital paid in $38,230,979 $32,724,961 $14,749,614 $8,883,571 $12,373,687
Undistributed net investment income 3,663,919 493,877 936,245 209,332 380,800
Accumulated net realized
gain (loss) on investments and
foreign currency transactions (1,236,321) 1,334,545 (83,349) 42,147 (122,000)
Net unrealized appreciation
of investments and translation of
assets in foreign currencies 1,235,384 6,458,179 659,361 724,697 2,065,848
--------------- --------------- --------------- --------------- ---------------
Total $41,893,961 $41,011,562 $16,261,871 $9,859,747 $14,698,335
=============== =============== =============== =============== ===============
Shares of Beneficial
Interest Outstanding (Note 2) 3,620,808 2,632,200 1,385,759 804,138 1,252,365
=============== =============== =============== =============== ===============
Net Asset Value, Offering and
Redemption Price Per Share
(Net assets divided
by shares outstanding) $11.57 $15.58 $11.73 $12.26 $11.74
======== ======== ======== ======== ========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 1995
- ----------------------------------------------------------- ---------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT GROWTH
- ----------------------------------------------------------- ---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Interest $303,155 $245,440 $472,205 $633,757 $113,559
Dividends 1,165,452 -- 119,610 -- 707,980
Consent fees -- -- -- -- --
---------------------------------------------------------------------
Total income 1,468,607 245,440 591,815 633,757 821,539
---------------------------------------------------------------------
Expenses (Notes 1 and 5):
Advisory fee 399,774 30,852 301,852 66,610 311,003
Professional fees 16,075 6,027 10,186 4,869 10,665
Reports to shareholders 16,614 1,528 13,537 3,181 14,601
Custodian fees 12,884 5,345 13,581 4,764 15,283
Other expenses 14,878 1,370 11,987 2,899 13,003
---------------------------------------------------------------------
Total expenses 460,225 45,122 351,143 82,323 364,555
Less: Expenses waived or assumed -- (19,978) -- (51,238) --
Custodian fees paid indirectly (12,154) (471) (13,418) -- (2,612)
---------------------------------------------------------------------
Expenses--net 448,071 24,673 337,725 31,085 361,943
---------------------------------------------------------------------
Net investment income 1,020,536 220,767 254,090 602,672 459,596
---------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions (Note 3):
Net realized gain (loss) on investments and foreign
currency transactions 1,953,467 178 2,003,359 322,099 1,548,981
Net unrealized appreciation of investments and translation
of assets in foreign currencies 12,258,988 -- 6,147,258 344,995 6,983,358
---------------------------------------------------------------------
Net gain on investments and foreign currency 14,212,455 178 8,150,617 667,094 8,532,339
---------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $15,232,991 $220,945 $8,404,707 $1,269,766 $8,991,935
=====================================================================
+Net of $4,803 foreign taxes withheld
(a)Includes net realized gain of $2,862 on foreign currency transactions
(b) Includes $1,062 of net unrealized appreciation on translation of assets in foreign currencies
*From April 25, 1995 (commencement of operations) to December 31, 1995
See notes to financial statements
<CAPTION>
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT TARGET UTILITIES
HIGH YIELD SECURITIES GRADE MATURITY 2007* INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Interest $3,700,593 $139,067 $979,652 $209,332 $39,389
Dividends 209,611 712,375+ -- -- 373,451
Consent fees 70,691 -- 22,113 -- --
------------------------------------------------------------------------
Total income 3,980,895 851,442 1,001,765 209,332 412,840
------------------------------------------------------------------------
Expenses (Notes 1 and 5):
Advisory fee 279,016 262,203 103,248 25,339 67,678
Professional fees 12,296 13,532 7,323 1,319 3,397
Reports to shareholders 13,122 12,521 5,280 249 2,363
Custodian fees 7,828 56,986 4,124 1,219 5,462
Other expenses 10,077 10,347 4,678 850 3,120
------------------------------------------------------------------------
Total expenses 322,339 355,589 124,653 28,976 82,020
Less: Expenses waived or assumed -- -- (55,066) (28,976) (50,437)
Custodian fees paid indirectly (7,828) -- (4,092) -- --
------------------------------------------------------------------------
Expenses--net 314,511 355,589 65,495 -- 31,583
------------------------------------------------------------------------
Net investment income 3,666,384 495,853 936,270 209,332 381,257
------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions (Note 3):
Net realized gain (loss) on investments and foreign
currency transactions (147,796) 1,334,830(a) (35,809) 42,147 (21,926)
Net unrealized appreciation of investments and translation
of assets in foreign currencies 3,097,609 4,263,821(b) 1,528,072 724,697 2,200,558
------------------------------------------------------------------------
Net gain on investments and foreign currency 2,949,813 5,598,651 1,492,263 766,844 2,178,632
------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $6,616,197 $6,094,504 $2,428,533 $976,176 $2,559,889
========================================================================
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
BLUE CHIP CASH MANAGEMENT
--------------------------------- ---------------------------------
Year Ended December 31 1995 1994 1995 1994
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $1,020,536 $568,219 $220,767 $144,250
Net realized gain (loss) on investments and
foreign currency transactions 1,953,467 2,931,871 178 61
Net unrealized appreciation (depreciation)
of investments and translation of assets
in foreign currencies 12,258,988 (4,069,423) -- --
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets
resulting from operations. 15,232,991 (569,333) 220,945 144,311
--------------- --------------- --------------- ---------------
Distributions to Shareholders from:
Net investment income (569,704) (204,030) (220,945) (144,311)
Net realized gain on investments (2,922,430) (416,537) -- --
--------------- --------------- --------------- ---------------
Total distributions (3,492,134) (620,567) (220,945) (144,311)
--------------- --------------- --------------- ---------------
Trust Share Transactions (a)
Proceeds from shares sold 12,100,755 9,253,157 1,802,472 828,637
Value of distributions reinvested 3,492,134 620,566 220,945 144,311
Cost of shares redeemed (1,858,303) (1,289,081) (1,790,408) (1,286,977)
--------------- --------------- --------------- ---------------
Net increase (decrease) from trust
share transactions 13,734,586 8,584,642 233,009 (314,029)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 25,475,443 7,394,742 233,009 (314,029)
Net Assets
Beginning of year 41,424,301 34,029,559 3,928,555 4,242,584
--------------- --------------- --------------- ---------------
End of year+ $66,899,744 $41,424,301 $4,161,564 $3,928,555
=============== =============== =============== ===============
+Includes undistributed net investment income of $1,018,903 $568,071 $ -- $ --
=============== =============== =============== ===============
(a) Trust Shares Issued and Redeemed
Sold 791,231 664,327 1,802,472 828,637
Issued for distributions reinvested 261,975 45,969 220,945 144,311
Redeemed (125,241) (92,113) (1,790,408) (1,286,977)
---------------- -------------- -------------- ----------------
Net increase (decrease) in shares outstanding 927,965 618,183 233,009 (314,029)
=============== =============== =============== ===============
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
DISCOVERY GOVERNMENT
--------------------------------- ---------------------------------
Year Ended December 31 1995 1994 1995 1994
------------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $254,090 $93,202 $602,672 $530,105
Net realized gain (loss) on investments and
foreign currency transactions 2,003,359 1,992,419 322,099 (786,678)
Net unrealized appreciation (depreciation)
of investments and translation of assets
in foreign currencies 6,147,258 (2,687,366) 344,995 (75,120)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets
resulting from operations. 8,404,707 (601,745) 1,269,766 (331,693)
--------------- --------------- --------------- ---------------
Distributions to Shareholders from:
Net investment income (93,692) -- (507,584) (84,143)
Net realized gain on investments (1,992,932) (1,014,247) -- (138,692)
--------------- --------------- --------------- ---------------
Total distributions (2,086,624) (1,014,247) (507,584) (222,835)
--------------- --------------- --------------- ---------------
Trust Share Transactions (a)
Proceeds from shares sold 13,530,189 10,106,014 1,678,903 1,488,126
Value of distributions reinvested 2,086,624 1,014,247 507,584 222,836
Cost of shares redeemed (1,278,557) (481,564) (1,326,445) (1,512,005)
--------------- --------------- --------------- ---------------
Net increase (decrease) from trust
share transactions 14,338,256 10,638,697 860,042 198,957
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 20,656,339 9,022,705 1,622,224 (355,571)
Net Assets
Beginning of year 30,243,614 21,220,909 7,877,963 8,233,534
--------------- --------------- --------------- ---------------
End of year+ $50,899,953 $30,243,614 $9,500,187 $7,877,963
=============== =============== =============== ===============
+Includes undistributed net investment income of $253,600 $93,202 $601,947 $506,859
=============== =============== =============== ===============
(a) Trust Shares Issued and Redeemed
Sold 617,324 501,020 170,551 151,268
Issued for distributions reinvested 109,304 51,897 53,998 22,959
Redeemed (61,853) (24,001) (133,164) (152,565)
----------------- ---------------- ---------------- -----------------
Net increase (decrease) in shares outstanding 664,775 528,916 91,385 21,662
=============== =============== =============== ===============
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
GROWTH HIGH YIELD
--------------------------------- ---------------------------------
Year Ended December 31 1995 1994 1995 1994
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $459,596 $176,061 $3,666,384 $2,971,391
Net realized gain (loss) on investments and
foreign currency transactions 1,548,981 555,580 (147,796) (106,914)
Net unrealized appreciation (depreciation)
of investments and translation of assets
in foreign currencies 6,983,358 (1,490,527) 3,097,609 (3,352,582)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets
resulting from operations. 8,991,935 (758,886) 6,616,197 (488,105)
--------------- --------------- --------------- ---------------
Distributions to Shareholders from:
Net investment income (175,754) -- (2,973,759) (1,135,309)
Net realized gain on investments (591,906) (336,304) -- --
--------------- --------------- --------------- ---------------
Total distributions (767,660) (336,304) (2,973,759) (1,135,309)
--------------- --------------- --------------- ---------------
Trust Share Transactions (a)
Proceeds from shares sold 10,824,201 8,593,462 5,830,065 4,464,152
Value of distributions reinvested 767,659 336,304 2,973,759 1,135,309
Cost of shares redeemed (1,442,104) (695,724) (2,837,047) (2,284,666)
--------------- --------------- --------------- ---------------
Net increase (decrease) from trust 10,149,756 8,234,042 5,966,777 3,314,795
share transactions --------------- --------------- --------------- ---------------
18,374,031 7,138,852 9,609,215 1,691,381
Net increase (decrease) in net assets
Net Assets 32,797,192 25,658,340 32,284,746 30,593,365
Beginning of year --------------- --------------- --------------- ---------------
$51,171,223 $32,797,192 $41,893,961 $32,284,746
End of year+ =============== =============== =============== ===============
$459,781 $176,061 $3,663,919 $2,971,294
+Includes undistributed net investment income of =============== =============== =============== ===============
(a) Trust Shares Issued and Redeemed 572,178 510,485 537,054 416,564
Sold 45,613 20,645 296,191 107,326
Issued for distributions reinvested (78,592) (41,089) (263,126) (214,630)
Redeemed ----------------- ---------------- --------------- ---------------
539,199 490,041 570,119 309,260
Net increase (decrease) in shares outstanding =============== =============== =============== ===============
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
INTERNATIONAL INVESTMENT
SECURITIES GRADE
--------------------------------- ---------------------------------
1995 1994 1995 1994
Year Ended December 31 --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations $495,853 $331,106 $936,270 $729,582
Net investment income
Net realized gain (loss) on investments and 1,334,830 913,209 (35,809) (47,540)
foreign currency transactions
Net unrealized appreciation (depreciation)
of investments and translation of assets 4,263,821 (1,619,867) 1,528,072 (1,054,894)
in foreign currencies --------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 6,094,504 (375,552) 2,428,533 (372,852)
resulting from operations. --------------- --------------- --------------- ---------------
Distributions to Shareholders from: (284,370) (87,059) (605,201) (154,441)
Net investment income (601,917) -- -- (90,556)
Net realized gain on investments --------------- --------------- --------------- ---------------
(886,287) (87,059) (605,201) (244,997)
Total distributions --------------- --------------- --------------- ---------------
Trust Share Transactions (a) 6,301,362 11,075,210 3,462,505 2,762,399
Proceeds from shares sold 886,288 87,058 605,201 244,996
Value of distributions reinvested (2,692,802) (399,664) (1,231,643) (997,487)
Cost of shares redeemed --------------- --------------- --------------- ---------------
4,494,848 10,762,604 2,836,063 2,009,908
Net increase from trust share transactions --------------- --------------- --------------- ---------------
9,703,065 10,299,993 4,659,395 1,392,059
Net increase in net assets
Net Assets 31,308,497 21,008,504 11,602,476 10,210,417
Beginning of year --------------- --------------- --------------- ---------------
$41,011,562 $31,308,497 $16,261,871 $11,602,476
End of year+ =============== =============== =============== ===============
$493,877 $279,003 $936,245 $605,176
+Includes undistributed net investment income of =============== =============== =============== ===============
(a)Trust Shares Issued and Redeemed 439,419 811,007 315,041 264,613
Sold 69,350 6,642 59,159 24,055
Issued for distributions reinvested (194,386) (29,290) (113,482) (96,249)
Redeemed --------------- --------------- --------------- ---------------
314,383 788,359 260,718 192,419
Net increase in shares outstanding =============== =============== =============== ===============
See notes to financial statements
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
TARGET
MATURITY UTILITIES
2007 INCOME
--------------- --------------- ---------------
1995* 1995 1994
Year Ended December 31 --------------- --------------- ---------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations $209,332 $381,257 $115,157
Net investment income
Net realized gain (loss) on investments and 42,147 (21,926) (100,075)
foreign currency transactions
Net unrealized appreciation (depreciation)
of investments and translation of assets 724,697 2,200,558 (132,614)
in foreign currencies --------------- --------------- ---------------
Net increase (decrease) in net assets 976,176 2,559,889 (117,532)
resulting from operations. --------------- --------------- ---------------
Distributions to Shareholders from: -- (110,536) (5,535)
Net investment income -- -- --
Net realized gain on investments --------------- --------------- ---------------
-- (110,536) (5,535)
Total distributions --------------- --------------- ---------------
Trust Share Transactions (a) 8,383,571 7,708,137 4,449,169
Proceeds from shares sold -- 110,535 5,534
Value of distributions reinvested -- (289,717) (105,265)
Cost of shares redeemed --------------- --------------- ---------------
8,383,571 7,528,955 4,349,438
Net increase from trust share transactions --------------- --------------- ---------------
9,359,747 9,978,308 4,226,371
Net increase in net assets
Net Assets 500,000 ** 4,720,027 493,656
Beginning of year --------------- --------------- ---------------
$9,859,747 $14,698,335 $4,720,027
End of year+ =============== =============== ===============
$209,332 $380,800 $110,079
+Includes undistributed net investment income of =============== =============== ===============
(a)Trust Shares Issued and Redeemed 754,138 755,204 474,683
Sold -- 11,709 600
Issued for distributions reinvested -- (28,182) (11,306)
Redeemed --------------- --------------- ---------------
754,138 738,731 463,977
Net increase in shares outstanding =============== =============== ===============
* From April 25, 1995 (commencement of operations) to December 31, 1995
** See Note 6
See notes to financial statements
</TABLE>
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 Funds and accounts separately for the assets,
liabilities and operations of each Fund. The objective of each Fund is
as follows:
Blue Chip Fund seeks high total investment return consistent with the
preservation of capital.
Cash Management Fund seeks to earn a high rate of current income
consistent with the preservation of capital and maintenance of
liquidity.
Discovery Fund seeks long-term capital appreciation.
Government Fund seeks to achieve a significant level of current income
which is consistent with security and liquidity of principal.
Growth Fund seeks long-term capital appreciation.
High Yield Fund seeks to earn a high level of current income. Consistent
with that objective, the Fund will also seek growth of capital as a
secondary objective.
International Securities Fund seeks long-term capital growth. As a
secondary objective, the Fund seeks to earn a reasonable level of
current income.
Investment Grade Fund seeks a maximum level of income consistent with
investment in investment grade debt securities.
Target Maturity 2007 Fund seeks a predictable compounded investment
return for investors who hold their Funds' shares until the Funds'
maturity, consistent with the preservation of capital.
Utilities Income Fund seeks high current income. Long-term capital
appreciation is a secondary objective.
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 Funds, 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
Funds 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 Fund, 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 each 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 each fund from all, or substantially
all, federal income taxes. At December 31, 1995, Funds having capital
loss carryovers were as follows:
<TABLE>
<CAPTION>
Year Capital Loss Carryovers Expire
-----------------------------------------
Fund Total 1998 1999 2002 2003
- ----- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
GOVERNMENT $ 466,096 $ --- $ --- $466,096 $ ---
HIGH YIELD 1,236,321 625,684 355,926 106,914 147,797
INVESTMENT GRADE 83,349 --- --- 47,540 35,809
UTILITIES INCOME 122,000 --- --- 100,075 21,925
</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 International Securities 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 due to changes in market prices of the
investments. Such fluctuations are included with the net realized and
unrealized gains and losses from investments.
Net realized and unrealized gain 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 funds except for the Cash Management Fund 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
Fund are paid from the assets of that Fund. General expenses of the
Funds are allocated among and charged to the assets of each Fund on a
fair and equitable basis, which may be based on the relative assets of
each Fund or the nature of the services performed and relative
applicability to each Fund.
F. Repurchase Agreements--Securities pledged as collateral for
repurchase agreements are held by the Fund's custodian until maturity of
the repurchase agreement. Provisions of the agreement provide that the
market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject
to legal proceedings.
G. 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.
The Bank of New York as Custodian for all Funds, except the
International Securities Fund, has provided credits in the amount of
$52,020 against custodian charges based on the uninvested cash balances
of the Funds.
2. Trust Shares--The Declaration of Trust permits the issuance of an
unlimited number of shares of beneficial interest, of one or more
Funds. Shares in the Funds are acquired through the purchase of
variable annuity or variable life insurance contracts sold by First
Investors Life Insurance Company.
3. Purchases and Sales of Securities--For the year ended December 31,
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
Securities U.S. Government Obligations
-------------------------- ---------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases of Sales Purchases of Sales
- ---- ------------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
BLUE CHIP $24,767,189 $12,743,972 $ -- $ --
DISCOVERY 33,299,263 25,314,118 -- --
GOVERNMENT -- -- 18,814,356 15,620,984
GROWTH 35,962,901 25,421,753 -- --
HIGH YIELD 26,108,254 19,876,773 -- --
INTERNATIONAL SECURITIES 19,825,010 15,013,276 -- --
INVESTMENT GRADE 4,521,590 1,503,758 1,808,046 1,707,808
TARGET MATURITY 2007 327,670 338,977 9,895,126 879,579
UTILITIES INCOME 9,231,512 1,417,154 -- --
</TABLE>
<TABLE>
<CAPTION>
At December 31, 1995, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
Gross Gross
Aggregate Unrealized Unrealized Net Unrealized
Fund Cost Appreciation Depreciation Appreciation
- ------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
BLUE CHIP $ 53,860,356 $ 13,352,093 $ 739,932 $ 12,612,161
CASH MANAGEMENT 4,109,957 -- -- --
DISCOVERY 43,816,620 9,062,423 1,949,102 7,113,321
GOVERNMENT 9,252,545 146,867 45,349 101,518
GROWTH 42,706,633 9,278,167 968,530 8,309,637
HIGH YIELD 39,977,368 1,819,585 584,201 1,235,384
INTERNATIONAL SECURITIES 34,319,555 7,169,525 711,583 6,457,942
INVESTMENT GRADE 15,284,779 683,787 24,426 659,361
TARGET MATURITY 2007 9,047,030 724,054 -- 724,054
UTILITIES INCOME 12,435,393 2,110,940 45,092 2,065,848
</TABLE>
4. Rule 144A Securities--Under Rule 144A, certain restricted securities
are exempt from the registration requirements of the Securities Act of
1933 and may only be sold to qualified institutional investors. At
December 31, 1995, the High Yield and International Securities Funds
held 144A securities, with aggregate values of $3,463,500 and $152,577,
respectively. These securities represent 8.3% and .4%, respectively, of
the Funds' net assets and are valued as set forth in Note 1A.
5. 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 First Investors Corporation.
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 Fund's average daily net assets, declining by .03% on
each $250 million thereafter, down to .66% on average daily net assets
over $750 million. For the year ended December 31, 1995, total advisory
fees were $1,847,575 of which $168,480 was waived by the investment
adviser. In addition, $25,770 of expenses were assumed by FIMCO.
Pursuant to certain state regulations, FIMCO has agreed to reimburse a
Fund if and to the extent that any Funds' 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 Fund in those states (unless waivers of
such limitations have been obtained). The amount of any such
reimbursement is limited to the yearly advisory fee. For the year ended
December 31, 1995, no reimbursement was required pursuant to these
provisions.
Wellington Management Company serves as investment subadviser to the
Growth Fund and the International Securities Fund. The subadviser is
paid by FIMCO and not by the Fund.
6. Commencement of Operations--The Target Maturity 2007 Fund commenced
operations in April 1995 following the sale of 50,000 shares of
beneficial interest to First Investors Life Insurance Company for
$500,000.
7. Concentration of Credit Risk--The High Yield Fund's 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 December 31, 1995, the
High Yield Fund held one defaulted security with a value of $131,300
representing less than 1/2 of 1% of the Fund's net assets.
The Utilities Income Fund 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 Fund more significantly
to economic changes occurring in the public utilities industry.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ------------------------------------------------------------------------------
PER SHARE DATA
----------------------------------------------------------
Income From Investment Operations
-----------------------------------------------------------
Net Asset Net Realized
Value and Unrealized
---------- Net Gain (Loss) Total from
Beginning Investment on Investment
of Period Income Investments Operations
- ------------------------------------------------------------------------------
<S> <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
1992 12.62 .16 .67 .83
1993 13.24 .15 .97 1.12
1994 14.21 .18 (.39) (.21)
1995 13.75 .26 4.11 4.37
CASH MANAGEMENT**
- ---------------
1988 1.00 .048 -- .048
1989 1.00 .075 -- .075
1990 1.00 .072 -- .072
1991 1.00 .054 -- .054
1992 1.00 .029 -- .029
1993 1.00 .027 -- .027
1994 1.00 .037 -- .037
1995 1.00 .054 -- .054
DISCOVERY
- ---------
1988 10.02 .26 .10 .36
1989 10.38 .19 2.19 2.38
1990 12.40 .14 (.78) (.64)
1991 10.71 .07 5.42 5.49
1992 16.02 -- 2.51 2.51
1993 18.35 -- 3.92 3.92
1994 21.36 .06 (.62) (.56)
1995 19.86 .11 4.62 4.73
GOVERNMENT
- ----------
1/7/92* to 12/31/92 10.00 .47 .51 .98
1993 10.65 .64 .02 .66
1994 10.42 .79 (1.21) (.42)
1995 9.70 .66 .78 1.44
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------
Less Distribution From
-----------------------------------------------------------
Net Asset
Value
Net Net ----------
Investment Realized Total End of
Income Gains Distributions Period
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BLUE CHIP
- ---------
3/8/90* to 12/31/90 $ -- $ -- $ -- $10.05
1991 .05 -- .05 12.62
1992 .21 -- .21 13.24
1993 .15 -- .15 14.21
1994 .08 .17 .25 13.75
1995 .19 .95 1.14 16.98
CASH MANAGEMENT**
- ---------------
1988 .048 -- .048 1.00
1989 .075 -- .075 1.00
1990 .072 -- .072 1.00
1991 .054 -- .054 1.00
1992 .029 -- .029 1.00
1993 .027 -- .027 1.00
1994 .037 -- .037 1.00
1995 .054 -- .054 1.00
DISCOVERY
- ---------
1988 -- -- -- 10.38
1989 .27 .09 .36 12.40
1990 .15 .90 1.05 10.71
1991 .18 -- .18 16.02
1992 .03 .15 .18 18.35
1993 -- .91 .91 21.36
1994 -- .94 .94 19.86
1995 .06 1.26 1.32 23.27
GOVERNMENT
- ----------
1/7/92* to 12/31/92 .33 -- .33 10.65
1993 .70 .19 .89 10.42
1994 .25 .05 .30 9.70
1995 .62 -- .62 10.52
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
Ratio to Average Net Assets
-----------------------------------------------------------
Net
Total Net Assets Investment
Return++ End of Period Expenses+ Income
(%) (in thousands) (%) (%)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BLUE CHIP
- ---------
3/8/90* to 12/31/90 .61(a) $3,656 -- 2.95(a)
1991 26.17 13,142 1.00 1.88
1992 6.67 23,765 .79 1.66
1993 8.51 34,030 .88 1.27
1994 (1.45) 41,424 .88 1.49
1995 34.00 66,900 .86 1.89
CASH MANAGEMENT**
- ---------------
1988 4.94 33 -- 4.99
1989 7.79 2,210 -- 7.84
1990 7.49 8,203 .39 6.90
1991 5.71 9,719 .57 5.39
1992 3.02 8,341 .79 2.99
1993 2.70 4,243 .60 2.67
1994 3.77 3,929 .60 3.69
1995 5.51 4,162 .61 5.36
DISCOVERY
- ---------
1988 3.59 125 -- 3.80
1989 23.62 283 -- 2.43
1990 (5.47) 960 -- 2.97
1991 51.73 4,661 .70 0.48
1992 15.74 10,527 .91 0.02
1993 22.20 21,221 .87 (0.03)
1994 (2.53) 30,244 .88 0.36
1995 25.23 50,900 .87 0.60
GOVERNMENT
- ----------
1/7/92* to 12/31/92 9.95(a) 5,064 .03(a) 6.64(a)
1993 6.35 8,234 .35 6.60
1994 (4.10) 7,878 .35 6.74
1995 15.63 9,500 .40 6.73
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ---------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------
Ratio to Average Net Assets
Before Expenses
Waived or Assumed
--------------------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ---------------------------------------------------------------
<S> <C> <C> <C>
BLUE CHIP
- ---------
3/8/90* to 12/31/90 1.92(a) 1.03(a) 15
1991 1.55 1.34 21
1992 .86 1.60 40
1993 N/A N/A 37
1994 N/A N/A 82
1995 N/A N/A 26
CASH MANAGEMENT**
- ---------------
1988 7.68 (2.69) N/A
1989 1.35 6.49 N/A
1990 1.15 6.15 N/A
1991 .93 5.03 N/A
1992 .98 2.81 N/A
1993 1.05 2.22 N/A
1994 1.04 3.25 N/A
1995 1.10 4.87 N/A
DISCOVERY
- ---------
1988 3.10 .70 158
1989 4.78 (2.35) 231
1990 2.68 .28 104
1991 1.49 (.31) 93
1992 1.05 (.12) 91
1993 N/A N/A 69
1994 N/A N/A 53
1995 N/A N/A 78
GOVERNMENT
- ----------
1/7/92* to 12/31/92 .89(a) 5.79(a) 301
1993 .84 6.11 525
1994 .90 6.19 457
1995 .93 6.21 198
* 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 December
31, 1995 (Note 5).
++The effect of fees and charges incurred at the separate account
level are not reflected in these performance figures.
(A)Annualized
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ------------------------------------------------------------------------------
PER SHARE DATA
----------------------------------------------------------
Income From Investment Operations
-----------------------------------------------------------
Net Asset Net Realized
Value and Unrealized
---------- Net Gain (Loss) Total from
Beginning Investment on Investment
of Period Income Investments Operations
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH
- ------
1988 $10.02 $.26 $.51 $.77
1989 10.79 .02 2.51 2.53
1990 13.02 .16 (.55) (.39)
1991 12.57 .17 4.15 4.32
1992 16.71 .08 1.41 1.49
1993 16.64 .07 .93 1.00
1994 17.45 .09 (.60) (.51)
1995 16.73 .18 3.94 4.12
HIGH YIELD
- ----------
1988 10.00 .74 .82 1.56
1989 11.56 .74 (.92) (.18)
1990 10.71 1.08 (1.79) (.71)
1991 9.17 1.16 1.66 2.82
1992 10.81 1.11 .21 1.32
1993 10.44 .96 .88 1.84
1994 11.16 .87 (1.14) (.27)
1995 10.58 1.00 .95 1.95
INTERNATIONAL
SECURITIES
- -------------
4/16/90* 10.00 .03 .34 .37
to 12/31/90
1991 10.37 .09 1.49 1.58
1992 11.87 .15 (.28) (.13)
1993 11.37 .10 2.41 2.51
1994 13.74 .14 (.32) (.18)
1995 13.51 .19 2.25 2.44
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------
Less Distribution From
-----------------------------------------------------------
Net Asset
Value
Net Net ----------
Investment Realized Total End of
Income Gains Distributions Period
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH
- ------
1988 $ -- $ -- $ -- $10.79
1989 .18 .12 .30 13.02
1990 .06 -- .06 12.57
1991 .18 -- .18 16.71
1992 .18 1.38 1.56 16.64
1993 .09 .10 .19 17.45
1994 -- .21 .21 16.73
1995 .09 .29 .38 20.47
HIGH YIELD
- ----------
1988 -- -- -- 11.56
1989 .56 .11 .67 10.71
1990 .83 -- .83 9.17
1991 1.18 -- 1.18 10.81
1992 1.69 -- 1.69 10.44
1993 1.12 -- 1.12 11.16
1994 .31 -- .31 10.58
1995 .96 -- .96 11.57
INTERNATIONAL
SECURITIES
- -------------
4/16/90* -- -- -- 10.37
to 12/31/90
1991 .03 .05 .08 11.87
1992 .15 .22 .37 11.37
1993 .14 -- .14 13.74
1994 .05 -- .05 13.51
1995 .12 .25 .37 15.58
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
Ratio to Average Net Assets
-----------------------------------------------------------
Net
Total Net Assets Investment
Return++ End of Period Expenses+ Income
(%) (in thousands) (%) (%)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH
- ------
1988 $7.68 $38 -- 3.20
1989 24.00 570 -- 2.91
1990 (2.99) 2,366 -- 3.03
1991 34.68 7,743 .69 1.21
1992 9.78 16,385 .76 .75
1993 6.00 25,658 .91 .43
1994 (2.87) 32,797 .90 .60
1995 25.12 51,171 .88 1.10
HIGH YIELD
- ----------
1988 15.60 4,565 -- 13.22
1989 (1.76) 14,354 -- 12.05
1990 (5.77) 18,331 -- 13.21
1991 33.96 23,634 .53 11.95
1992 13.15 24,540 .91 10.48
1993 18.16 30,593 .91 9.49
1994 (1.56) 32,285 .88 9.43
1995 19.82 41,894 .87 9.83
INTERNATIONAL
SECURITIES
- -------------
4/16/90* 5.21(a) 3,946 -- .99(a)
to 12/31/90
1991 15.24 8,653 1.70 .75
1992 (1.13) 12,246 1.03 1.55
1993 22.17 21,009 1.14 .97
1994 (1.29) 31,308 1.03 1.22
1995 18.70 41,012 1.02 1.42
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ---------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------
Ratio to Average Net Assets
Before Expenses
Waived or Assumed
--------------------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ---------------------------------------------------------------
<S> <C> <C> <C>
GROWTH
- ------
1988 8.70 (5.50) 31
1989 5.21 (2.30) 24
1990 1.64 1.40 28
1991 1.34 .55 148
1992 1.20 .30 45
1993 N/A N/A 51
1994 N/A N/A 40
1995 N/A N/A 64
HIGH YIELD
- ----------
1988 1.32 11.90 46
1989 .88 11.17 22
1990 .91 12.30 35
1991 .89 11.60 40
1992 .96 10.43 84
1993 N/A N/A 96
1994 N/A N/A 50
1995 N/A N/A 57
INTERNATIONAL
SECURITIES
- -------------
4/16/90* 3.43(a) (2.43)(a) 29
to 12/31/90
1991 2.27 .18 70
1992 1.38 1.20 36
1993 N/A N/A 37
1994 N/A N/A 36
1995 N/A N/A 45
* 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 December
31, 1995 (Note 5).
++The effect of fees and charges incurred at the separate account
level are not reflected in these performance figures.
(A)Annualized
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- ------------------------------------------------------------------------------
PER SHARE DATA
----------------------------------------------------------
Income From Investment Operations
-----------------------------------------------------------
Net Asset Net Realized
Value and Unrealized
---------- Net Gain (Loss) Total from
Beginning Investment on Investment
of Period Income Investments Operations
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT GRADE
- ----------------
1/7/92*to 12/31/92 $10.00 $.43 $.44 $.87
1993 10.53 .65 .49 1.14
1994 10.95 .67 (1.06) (.39)
1995 10.31 .67 1.28 1.95
TARGET MATURITY
2007
- ----------------
4/26/95*to 12/31/95 10.00 .26 2.00 2.26
UTILITIES INCOME
- ----------------
11/15/93* 10.00 .01 (.07) (.06)
to 12/31/93
1994 9.94 .24 (.96) (.72)
1995 9.19 .28 2.46 2.74
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------
Less Distribution From
-----------------------------------------------------------
Net Asset
Value
Net Net ----------
Investment Realized Total End of
Income Gains Distributions Period
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT GRADE
- ----------------
1/7/92*to 12/31/92 $.34 $ -- $.34 $10.53
1993 .71 .01 .72 10.95
1994 .16 .09 .25 10.31
1995 .53 -- .53 11.73
TARGET MATURITY
2007
- ----------------
4/26/95*to 12/31/95 -- -- -- 12.26
UTILITIES INCOME
- ----------------
11/15/93* -- -- -- 9.94
to 12/31/93
1994 .03 -- .03 9.19
1995 .19 -- .19 11.74
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
Ratio to Average Net Assets
-----------------------------------------------------------
Net
Total Net Assets Investment
Return++ End of Period Expenses+ Income
(%) (in thousands) (%) (%)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT GRADE
- ----------------
1/7/92*to 12/31/92 8.91(a) $ 4,707 .23(a) 6.16(a)
1993 10.93 10,210 .35 6.32
1994 (3.53) 11,602 .37 6.61
1995 19.69 16,262 .51 6.77
TARGET MATURITY
2007
- ----------------
4/26/95*to 12/31/95 22.60 9,860 .04(a) 6.21(a)
UTILITIES INCOME
- ----------------
11/15/93* (4.66)(a) 494 -- 1.46(a)
to 12/31/93
1994 (7.24) 4,720 .17 4.13
1995 30.26 14,698 .41 4.16
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS LIFE SERIES FUND
- ---------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------
Ratio to Average Net Assets
Before Expenses
Waived or Assumed
--------------------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ---------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT GRADE
- ----------------
1/7/92*to 12/31/92 .93(a) 5.46(a) 72
1993 .85 5.82 64
1994 .92 6.06 15
1995 .91 6.37 26
TARGET MATURITY
2007
- ----------------
4/26/95*to 12/31/95 .87(a) 5.38(a) 28
UTILITIES INCOME
- ----------------
11/15/93* 3.99(a) (2.52)(a) 0
to 12/31/93
1994 .95 3.35 31
1995 .91 3.67 17
* 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 December
31, 1995 (Note 5).
++The effect of fees and charges incurred at the separate account
level are not reflected in these performance figures.
(A)Annualized
</TABLE>
Independent Auditor's Report
To the Shareholders and Trustees of
First Investors Life Series Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the ten funds comprising
First Investors Life Series Fund as of December 31, 1995, the related
statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then
ended, and financial highlights for the periods indicated thereon. These
financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 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 funds comprising First Investors
Life Series Fund as of December 31, 1995, and the results of their
operations, changes in their net assets and financial highlights for
each of the respective periods presented, in conformity with generally
accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1996
FIRST INVESTORS LIFE SERIES FUND
Trustees
- --------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
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 Fund 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 Fund will be able to do so or achieve its investment
objective. An investment in the Fund 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 Fund and International
Securities Fund 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 Fund 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 Massachusetts Avenue, 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.
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
Utilities Income Series
ANNUAL
REPORT
DECEMBER 31, 1995
Vertically reading from bottom to top in center of the page the words
"FIRST INVESTORS" appear.
The following language appears to the left of the above language:
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" in
a box to the right of a circle containing the words "MAILED FROM
ZIP CODE 11201" appears on the righthand side.
The following appears on the lefthand side:
FIRST INVESTORS LIFE SERIES FUND
95 WALL STREET
NEW YORK, NY 10005
The following appears on the bottom lefthand side
First Investors logo
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIFE310
