FIRST
INVESTORS
LIFE
SERIES
FUND
Blue Chip Fund
Cash Management Fund
Discovery Fund
Government Fund
Growth Fund
High Yield Fund
International Securities Fund
Investment Grade Fund
Target Maturity 2007 Fund
Target Maturity 2010 Fund
Utilities Income Fund
ANNUAL
REPORT
DECEMBER 31, 1996
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FIFE310
Chief Investment Officer's Letter
FIRST INVESTORS LIFE SERIES FUND
Dear Investor:
The current economic expansion extended to its fifth year in 1996. The
economy grew by 3.4% during the year with the core rate of consumer
price inflation increasing 2.6%, its slowest pace since the mid-1960's.
The combination of moderate growth and low inflation provided a positive
background for the financial markets. The broad stock market averages
made new highs in 1996 while long-term interest rates moved somewhat
higher during the year. Besides the economy, the markets benefited from
strong demand for U.S. securities. Individual investors bought a record
amount of stock mutual funds, while foreign investors bought a record
amount of U.S. Treasury bonds.
Money market rates closed 1996 generally where they opened the year.
After a slight lowering of money market rates in January, the Federal
Reserve kept monetary policy unchanged for the remainder of the year.
Long-term interest rates, on the other hand, rose during 1996 as the
length of the economic expansion raised concerns that inflation might
accelerate. In this environment, both investment grade corporate and
mortgage-backed bonds outperformed the U.S. Treasury market. The
corporate bond market benefited from strong demand despite historically
narrow spreads, while the mortgage-backed market was helped by a
decrease in prepayment risk. The best returns in the bond market
occurred in the high yield sector. Buoyant capital markets, led by
rising equity valuations, and a sound economy created an environment in
which credit sensitive bonds especially high yield bonds outperformed
Treasury securities which tended to be more affected by rising interest
rates.
Despite rising interest rates, the U.S. stock market posted its second
consecutive year of strong gains in 1996 with the S&P 500 index rising
22.9%. Recognizing that deregulation and internationalization had
generated fundamental changes in the U.S. economy, investors remained
comfortable with the earnings outlook for U.S. based companies.
Nonetheless the ride in the stock market during 1996 was not as smooth
as the one in 1995 with a major bump in the road during July from which
many small and mid-cap companies never recovered. In general, large cap
stocks outdistanced small and mid-cap stocks during the year. Strong
performers during the period included energy service, electronics,
banks, brokers, computers, cosmetics and household products, and
aerospace. Weak groups included media and entertainment, electric and
telephone utilities, paper and forest products, metals and mining and
restaurants. Utility stocks in particular were hurt by higher interest
rates and concern about deregulation of the electric utility market.
1996 was a year when stock picking was also very important as stocks
within the same industry often performed quite differently. For example:
in semiconductors, Intel Corp. was up over 130% while Texas Instruments
rose 30%; in computers, IBM Corp. climbed 70% while Hewlett-Packard Co.
increased 23%; in pharmaceuticals, Warner-Lambert Co. was up 60% while
Amgen Inc. was down 5%.
Outside the U.S., most equity markets performed very well, with the
exception of Japan. Measured by the Morgan Stanley World Index, the
world's stock markets returned 14% (in U.S. dollars) in 1996. European
stock market returns were generally strong over the past year. In the
Pacific Basin, Hong Kong followed Wall Street to record highs, up 33.1%
for the year (in U.S. dollars). In contrast, Japanese stocks declined as
the yen weakened and as local investors became increasingly pessimistic
about the future economic growth of the Japanese economy due to the
impending fiscal tightening and worries about deregulation of the
financial system.
Following is a discussion on each of the Funds, setting forth their
total returns for the year, on a net asset value basis, together with an
analysis of the various factors contributing to the returns. The
investment performance data set forth in this report relates to the
Funds, which are only available through the purchase of certain variable
life insurance policy and variable annuity contract separate accounts.
This data does not reflect the additional expenses and charges to which
a variable life insurance policyowner or variable annuity contract-
owner would be subject. In addition, charges will differ among variable
life insurance policyowners because of age, gender and risk
classification at time of policy issue. Not all Fund subaccounts are
available in each separate account.
Life Blue Chip Fund
For the year ended December 31, 1996, First Investors Life Blue Chip
Fund returned 21.5% on a net asset value basis compared to a 20.8%
return for the Lipper Growth and Income Fund category. The Fund
benefited from solid gains in the energy sector, specifically the oil
and gas drilling and exploration sector (Dresser Industries,
Schlumberger and Halliburton). The technology sector (Microsoft, IBM and
Intel) and money center bank sector (Citicorp and Chase Manhattan) were
also major contributors to the Fund's performance for the year. The Fund
also benefited from a year end rally in the pharmaceutical sector (Eli
Lilly and Merck). Telecommunications, specifically the long distance
(AT&T, MCI Communications and Sprint) and regional carriers (BellSouth,
NYNEX and Bell Atlantic), construction (Fluor) and consumer cyclical
(Heinz, General Mills and Kellogg) sectors hindered the Fund's
performance for 1996.
Life Discovery Fund
For the year ended December 31, 1996, First Investors Life Discovery
Fund returned 12.5% on a net asset value basis compared to a 20.2%
return for the Lipper Small Company Growth Fund category. Several
factors hurt the Fund's relative performance. The financial sector with
holdings in Boatman's Bancshares, Imperial Credit Industries, and
Redwood Trust Inc., as well as the retail sector with Travis Boats and
Motors, Inc., Kroger, TJX Companies, Inc. and Rite Aid Corp. did well on
a stock specific basis, but a general underweighting in these sectors,
relative to our peers, handicapped our performance. The Fund was also
underweighted in the energy sector which was one of the top performing
areas in 1996. The consumer staples sector was a drag on the Fund's
performance, in particular the restaurant holdings of Buffet's, Inc.,
Quality Dining, Inc., and Outback Steakhouse, Inc. In addition, our
conservative investment style resulted in a comparatively high level of
cash throughout the year which held back performance. The Fund benefited
from solid gains in the computer software & services group with
positions in Microsoft Corp., SystemSoft Corp., Network General Corp.,
and Oracle Systems Corp. Our holdings in the computer peripherals group
comprised of EMC Corp., Network Appliance Corp., and Komag, Inc. also
performed well. The telecommunications equipment group also attained
solid results for the Fund with holdings of Ericsson, Saville Systems,
and Ace Communications.
Life Growth Fund
For the year ended December 31, 1996, First Investors Life Growth Fund
returned 24.5% on a net asset value basis compared to a 19.2% return for
the Lipper Growth Fund category. The Fund was helped by overweights in
technology, financial services, health care and aerospace and by strong
performance in a number of its holdings such as General Electric Co.,
Citicorp, IBM Corp., Travelers Group Inc. and Proctor & Gamble. Wal-Mart
Stores and McDonald's both lagged the market as their U.S. results were
below expectations. Entertainment names such as Viacom lagged
significantly.
Life International Securities Fund
For the year ended December 31, 1996, First Investors Life International
Securities Fund returned 15.2% on a net asset value basis compared to
the Lipper Global Fund category's return of 16.5%. During 1996, the
Fund's relative performance was largely driven by its country weightings
and positive stock selection. The Fund outperformed the MSCI World Index
in large measure because of its underweight in Japan relative to the
Index's weighting. Compared to its peer group, the reverse was true; the
Fund was overweight in Japan and also underweight in the U.S., leading
to the Fund's relative underperformance versus the Lipper Global Fund
category. Good security selection helped returns, particularly in the
larger markets of the United Kingdom, Germany and Japan.
Life Utilities Income Fund
For the year ended December 31, 1996, First Investors Life Utilities
Income Fund returned 9.6% on a net asset value basis compared with 9.9%
for the average of all utility funds as measured by Lipper Analytical
Services, Inc. Utility stocks generally underperformed the broad stock
market due to higher interest rates and concern about deregulation of
the electric utility market. The Fund's performance in particular was
held back by its 46% of assets held in electric utility stocks. The Fund
benefitted from its exposure to natural gas stocks as well as a below
average weighting in telephone stocks which were under pressure
throughout 1996.
Life High Yield Fund
For the year ended December 31, 1996, First Investors Life High Yield
Fund returned 12.6% on a net asset value basis compared with 13.7% for
the average of all high yield funds as measured by Lipper Analytical
Services, Inc. Our strategy has been to emphasize companies with
managements intent on -- and capable of -- paying their obligations and
improving their credit ratings. The best relative performance in 1996
often came from companies employing much more aggressive and risky
financial and operating strategies. Nevertheless, the Fund had several
investments which exceeded market expectations and delivered exceptional
performance such as: WCI Steel, Garden State News, Monarch Marking,
Outdoor Systems and Synthetic Industries. A few of these are no longer
held by the Fund because the companies bought back their bonds at above
market prices that we simply could not refuse. A low concentration in
gaming slowed performance in the first half of 1996 and enhanced it
later in the year as investors realized that the industry's expansion
phase was ending and more intense competition was beginning. The market
wide default rate declined from 3.1% in 1995 to 1.4% in 1996; however,
the Fund experienced no defaults. We elected to sell at moderate
discounts a few holdings where credit deterioration appeared likely.
Life Investment Grade Fund
For the year ended December 31, 1996, First Investors Life Investment
Grade Fund returned 2.8% on a net asset value basis. In comparison, the
average investment grade bond fund returned 3.2% as measured by Lipper
Analytical Services, Inc. and ten year Treasury notes returned 0.1%.
Duration is a measurement of interest rate sensitivity and is an
important factor in performance. Throughout most of the year, the Life
Investment Grade Fund held bonds with a shorter duration than the
average investment grade bond fund. This duration position worked well
for the first nine months of the year. Then as fears of a strengthening
economy and inflation abated, the market rallied and the Fund's
performance lagged its peer group slightly. As a result we have brought
the Fund's duration more in line with its peers. Credit quality
weighting and sector selection also affected performance. In 1996, the
Fund took a more conservative stance than other funds, which reduced
performance. Some other funds increased the risk of their portfolios by
moving into lower rated corporate investments to obtain incremental
yield. We felt that the yield pickup was not worth the heightened credit
risk.
Life Government Fund
For the year ended December 31, 1996, First Investors Life Government
Fund returned 3.6% on a net asset value basis compared to a 3.8% return
for the Lipper GNMA Fund category. The Fund generally had two-thirds of
its assets invested in mortgage-backed bonds issued by U.S. Government
sponsored agencies, and one-third of its assets in direct obligations of
the U.S. Government or its agencies. The Fund responded to trends in
interest rates by buying or selling Treasury securities to adjust its
duration -- or interest rate exposure. In particular, during the first
half of the year, as the market declined, the Fund reduced its holdings
of Treasury securities. During the second half of the year, as the
market stabilized and then rallied, the Fund reversed the trades made
earlier.
Life Target Maturity 2007 Fund and Life Target Maturity 2010 Fund
For the year ended December 31, 1996, First Investors Life Target
Maturity 2007 Fund returned (2.2)% on a net asset value basis. For the
period April 30, 1996 (inception date) to December 31, 1996, First
Investors Life Target Maturity 2010 Fund returned 11.6% on a net asset
value basis. The Funds' investment objective is to seek a predictable
compounded return for investors who hold the Funds until maturity. In
order to meet this objective, the Funds are fully invested in high
quality zero coupon bonds. These bonds are very sensitive to changes in
interest rates. Consequently, with long-term interest rates rising
during 1996, zero coupon bonds provided lower total returns than the
bond market in general. Target Maturity 2010 Fund had a higher return
than Target Maturity 2007 Fund because it began operations after
interest rates had risen early in the year.
Life Cash Management Fund
For the year ended December 31, 1996, First Investors Life Cash
Management Fund returned 5.0%.
The recent bull market in stocks has lasted 76 months, the longest bull
market in the history of the U.S. stock market. While investors have
enjoyed these gains, it is important to remember that the stock market
tends to be cyclical with periods when stock prices generally rise and
periods when stock prices generally decline. As well, certain sectors of
the market, such as technology stocks, can be more volatile then the
general market, creating greater opportunities but also greater risks.
The bond market can also be volatile. For example, a 1% increase in
yield on a ten year bond results in roughly a 7% decrease in that bond's
price. In addition, the value of a bond can fluctuate based on changes
in its credit quality. Investors should be aware of these risks and
recognize that successful investing generally requires a long-term
commitment to the market.
Looking forward, the factors that benefited the markets in 1996 appear
likely to continue in 1997: moderate growth, low inflation, and strong
demand for financial assets. A significant risk to the market is that
inflation may increase due to the length of the economic expansion. This
would lead the Federal Reserve to raise interest rates which could hurt
both the bond and stock markets. On the other hand, the market may be
positively surprised by legislation from the President and Congress to
eliminate the federal budget deficit. We will continue to be alert to
events that could affect the value of your investments.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
January 31, 1997
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.
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.
LIFE BLUE CHIP S & P 500
MAR 90 9,300 10,000
DEC 90 9,349 10,007
DEC 91 11,740 13,033
DEC 92 12,579 13,966
DEC 93 12,720 15,332
DEC 94 13,454 15,529
DEC 95 18,027 21,879
DEC 96 21,906 26,902
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 21.52% 13.00%
Five Years 13.18% 11.55%
Since Inception
(3/8/90) 13.38% 12.18%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Blue Chip Fund beginning 3/8/90 (inception date) with a
theoretical investment in the S&P 500 Index. The S&P 500 Index is an
unmanaged capitalization-weighted index of 500 stocks designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of such stocks, which represent all major
industries. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 11.38% and 11.98%, 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.
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 and the Lipper Small
Company Growth Fund Index and the Russell 2000 Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
LIFE DISCOVERY LIPPER GROWTH RUSSELL 2000
NOV 87 9,300 10,000 10,000
DEC 87 9,321 10,129 10,250
DEC 88 9,656 11,847 12,494
DEC 89 11,936 14,471 14,526
DEC 90 11,284 16,113 11,701
DEC 91 17,142 24,294 17,079
DEC 92 19,816 26,750 20,232
DEC 93 24,215 31,129 24,078
DEC 94 23,603 30,902 23,313
DEC 95 29,559 40,614 29,422
DEC 96 33,249 46,507 33,765
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 12.48% 4.62%
Five Years 14.15% 12.50%
Since Inception
(11/9/87) 14.94% 14.03%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Discovery Fund beginning 11/9/87 (inception date) with
theoretical investments in the Lipper Small Company Growth Fund Index
and the Russell 2000 Index. 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 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 of small capitalization stocks. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 12.23% and 11.51%, 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 Fund 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.
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 and the Salomon Brothers
Mortgage Index and the Salomon Brothers Government Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
GOVERNMENT FUND SALOMON MORTGAGE SALOMON GOVERNMENT
JAN-92 9,300 10,000 10,000
DEC-92 10,213 10,848 10,893
DEC-93 10,865 11,611 12,056
DEC-94 10,419 11,445 11,650
DEC-95 12,048 13,364 13,794
DEC-96 12,480 14,080 14,200
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 3.59% (3.65)%
Since Inception
(1/7/92) 6.07% 4.54%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Government Fund beginning 1/7/92 (inception date) with
theoretical investments in the Salomon Brothers Mortgage Index and the
Salomon Brothers Government Index. The Salomon Brothers Mortgage Index
is a market capitalization-weighted index that consists of all agency
pass-throughs and FHA and GNMA project notes. The Salomon Brothers
Government Index is a market capitalization-weighted index that consists
of debt issued by the U.S. Treasury and U.S. Government sponsored
agencies. Every issue included in the Indices is trader-priced, and the
Indices follow consistent and realistic availability limits, including
only those securities with sufficient amounts outstanding. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 (4.07)% and 4.09%, 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.
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.
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.
LIFE GROWTH S & P 500
NOV 87 9,300 10,000
DEC 87 9,321 10,729
DEC 88 10,037 12,498
DEC 89 12,446 16,640
DEC 90 12,074 16,587
DEC 91 16,262 20,661
DEC 92 17,852 22,103
DEC 93 18,923 24,224
DEC 94 18,379 24,535
DEC 95 22,995 34,568
DEC 96 28,618 42,505
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 24.45% 15.74%
Five Years 11.97% 10.35%
Since Inception
(11/9/87) 13.07% 12.18%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Growth Fund beginning 11/9/87 (inception date) with a
theoretical investment in the S&P 500 Index. The S&P 500 Index is an
unmanaged capitalization-weighted index of 500 stocks designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of such stocks, which represent all major
industries. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 9.71% and 10.01%, 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.
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.
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.
LIFE HIGH YIELD FIRST BOSTON
NOV 87 9,300 10,000
DEC 87 9,300 10,643
DEC 88 10,753 12,096
DEC 89 10,564 12,143
DEC 90 9,828 11,368
DEC 91 13,155 16,342
DEC 92 14,898 19,057
DEC 93 17,603 22,661
DEC 94 17,327 22,441
DEC 95 20,762 26,341
DEC 96 23,370 29,613
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 12.56% 4.69%
Five Years 12.18% 10.57%
Since Inception
(11/9/87) 10.59% 9.72%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- High Yield Fund beginning 11/9/87 (inception date) with a
theoretical investment in the First Boston High Yield Index. The First
Boston High Yield Index is designed to measure the performance of the
high yield bond market. The Index consists of 852 different issues, 706
of which are cash pay, 127 of which are zero-coupon, 9 of which are step
bonds, 1 of which is a payment-in-kind bond and the remaining 9 of which
are in default. The bonds included in the Index have an average life of
7.8 years, an average maturity of 7.8 years, an average duration of 4.2
years and an average coupon of 10.6%. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 10.49% and 9.42%, 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.
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.
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 SECURITIES FUND MORGAN WORLD
APR 1990 9,300 10,000
DEC 1990 9,647 9,873
DEC 1991 11,060 11,746
DEC 1992 10,987 11,200
DEC 1993 13,423 13,791
DEC 1994 13,249 14,563
DEC 1995 15,727 17,665
DEC 1996 18,123 20,138
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 15.23% 7.19%
Five Years 10.29% 8.71%
Since Inception
(4/16/90) 10.44% 9.26%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- International Securities Fund beginning 4/16/90
(inception date) with a theoretical investment in the Morgan Stanley
World Index. 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 60% of the aggregate market value of the covered stock
exchanges. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 8.48% and 8.92%, 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.
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.
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.
LIFE INVESTMENT GRADE LEHMAN
JAN 92 9,300 10,000
DEC 92 10,120 10,869
DEC 93 11,215 12,190
DEC 94 10,819 11,711
DEC 95 12,949 14,317
DEC 96 13,317 14,787
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 2.84% (4.34)%
Since Inception
(1/7/92) 7.46% 5.91%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Investment Grade Fund beginning 1/7/92 (inception date)
with a theoretical investment in the Lehman Brothers Corporate Bond
Index. 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. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 (4.63)% and 5.28%, 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.
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.
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 INVESTORS SALOMON
2007 GOVERNMENT
APR 1995 9,300 10,000
DEC 1995 11,405 11,162
DEC 1996 11,159 11,490
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year (2.16)% (8.99)%
Since Inception
(4/26/95) 11.40% 6.72%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Target Maturity 2007 Fund beginning 4/26/95 (inception
date) with a theoretical investment in the Salomon Brothers Government
Index. The Salomon Brothers Government Index is a market capitalization-
weighted index that consists of debt issued by the U.S. Treasury and
U.S. Government sponsored agencies. Every issue included in the Index is
trader-priced, and the Index follows consistent and realistic
availability limits, including only those securities with sufficient
amounts outstanding. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 (9.10)% and 6.58%, respectively. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
cost. Salomon Brothers Government Index figures from Salomon Brothers
and all other figures from First Investors Management Company, Inc.
Cumulative Performance Information
FIRST INVESTORS LIFE SERIES FUND -- TARGET MATURITY 2010 FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Series Fund -- Target Maturity 2010 Fund and the Salomon
Brothers Government Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
FIRST INVESTORS SALOMON
2010 GOVERNMENT
Apr-1996 9,300 10,000
Dec-1996 10,381 10,596
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
Since Inception
(4/30/96) 11.60% 3.79%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Target Maturity 2010 Fund beginning 4/30/96 (inception
date) with a theoretical investment in the Salomon Brothers Government
Index. The Salomon Brothers Government Index is a market capitalization-
weighted index that consists of debt issued by the U.S. Treasury and
U.S. Government sponsored agencies. Every issue included in the Index is
trader-priced, and the Index follows consistent and realistic
availability limits, including only those securities with sufficient
amounts outstanding. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 3.70%.
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.
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 and the Standard &
Poor's 500 Index and the Standard & Poor's Utilities Index.
The following table is the source data for the line chart which
appears at this point in the printed document. This table is not part
of the original printed document and is shown for reference only.
The same is also true for this descriptive paragraph.
LIFE UTILITIES S & P 500 S & P UTILITIES
Nov-93 9,300 10,000 10,000
Dec-93 9,247 10,121 9,906
Dec-94 8,577 10,251 8,617
Dec-95 11,172 14,443 11,815
Dec-96 12,242 17,759 12,133
**BOXED INFORMATION INSIDE GRAPH
As of December 31, 1996
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 9.57% 1.93%
Since Inception
(11/15/93) 9.17% 6.68%
Footnote reads:
The graph compares a $10,000 investment in the First Investors Life
Series Fund -- Utilities Income Fund beginning 11/15/93 (inception date)
with theoretical investments in the S&P 500 Index and the S&P Utilities
Index. The S&P 500 Index is an unmanaged capitalization-weighted index
of 500 stocks designed to measure performance of the broad domestic
economy through changes in the aggregate market value of such stocks,
which represent 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. 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.
*Average Annual Total Return figures (for the period ended 12/31/96)
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 1.65% and 6.47%, 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 BLUE CHIP FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--91.5%
Basic Materials--5.1%
6,400 *Alumax, Inc. $ 213,600 $ 21
4,000 Aluminum Company of America 255,000 25
10,700 Barrick Gold Corporation 307,625 31
9,100 Cabot Corporation 228,638 23
5,850 Dow Chemical Company 458,494 46
7,900 Du Pont (E.I.) de Nemours & Company 745,562 74
9,300 Freeport McMoRan Copper & Gold, Inc.--Class "B" 277,837 28
8,200 IMC Global, Inc. 320,825 32
12,400 International Paper Company 500,650 50
4,100 Mead Corporation 238,312 24
15,200 Monsanto Company 590,900 59
8,000 Morton International, Inc. 326,000 33
3,700 Nucor Corporation 188,700 19
1,400 Pioneer Hi-Bred International, Inc. 98,000 10
4,800 Sigma-Aldrich Corporation 299,700 30
- ----------------------------------------------------------------------------------------------------------------
5,049,843 505
- ----------------------------------------------------------------------------------------------------------------
Capital Goods--11.5%
6,900 AlliedSignal, Inc. 462,300 46
13,200 Avery Dennison Corporation 466,950 47
6,000 Boeing Company 638,250 64
6,700 Caterpillar, Inc. 504,175 50
12,700 Corning, Inc. 587,375 59
5,300 Cummins Engine Company, Inc. 243,800 24
3,200 Emerson Electric Company 309,600 31
19,600 General Electric Company 1,937,950 194
11,800 General Signal Corporation 504,450 50
9,000 Harnischfeger Industries, Inc. 433,125 43
7,300 Ingersoll-Rand Company 324,850 32
5,300 Johnson Controls, Inc. 439,237 44
8,300 Kennametal, Inc. 322,662 32
19,200 Laidlaw, Inc.--Class "B" 220,800 22
3,400 Lockheed Martin Corporation 311,100 31
6,300 Minnesota Mining & Manufacturing Company 522,112 52
17,000 *Philip Environmental, Inc. 246,500 25
3,500 Raychem Corporation 280,438 28
4,100 Textron, Inc. 386,425 39
6,800 Thomas & Betts Corporation 301,750 30
10,350 Tyco International, Ltd. 547,256 55
9,400 United Technologies Corporation 620,400 62
17,900 *USA Waste Services, Inc. 570,563 57
9,100 WMX Technologies, Inc. 296,888 30
- ----------------------------------------------------------------------------------------------------------------
11,478,956 1,147
- ----------------------------------------------------------------------------------------------------------------
Communication Services--2.1%
9,400 *Airtouch Communications, Inc. 237,350 24
9,100 BellSouth Corporation 367,412 37
14,000 GTE Corporation 637,000 63
10,300 MCI Communications Corporation 336,681 34
5,100 SBC Communications, Inc. 263,925 26
5,300 Sprint Corporation 211,338 21
- ----------------------------------------------------------------------------------------------------------------
2,053,706 205
- ----------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--9.9%
10,100 Adidas AG (GDR) (Note 4) 435,821 44
10,800 Chrysler Corporation 356,400 36
5,100 Danaher Corporation 237,787 24
5,550 Eastman Kodak Company 445,387 44
25,300 *Federated Department Stores, Inc. 863,363 86
10,400 General Motors Corporation 579,800 58
5,300 Goodyear Tire & Rubber Company 272,287 27
7,000 Hasbro, Inc. 272,125 27
14,700 Hilton Hotels Corporation 384,038 38
12,500 Home Depot, Inc. 626,563 63
25,000 *Host Marriott Corporation 400,000 40
19,800 *Lear Corporation 675,675 67
7,750 Masco Corporation 279,000 28
6,000 McGraw-Hill Companies, Inc. 276,750 28
8,000 Nike, Inc. 478,000 48
17,900 Ogden Corporation 335,625 33
13,100 *Price/Costco, Inc. 329,137 33
5,500 Sears, Roebuck and Company 253,688 25
17,600 *Staples, Inc. 317,900 32
41,600 *Steiner Leisure, Ltd. 837,200 84
9,400 Tribune Company 741,425 74
23,900 Wal-Mart Stores, Inc. 546,713 55
- ----------------------------------------------------------------------------------------------------------------
9,944,684 994
- ----------------------------------------------------------------------------------------------------------------
Consumer Staples--12.6%
15,600 Anheuser-Busch Companies, Inc. 624,000 62
25,000 Coca-Cola Company 1,315,625 131
6,100 CPC International, Inc. 472,750 47
8,000 Dole Food Company 271,000 27
4,200 General Mills, Inc. 266,175 27
16,500 Gillette Company 1,282,875 128
10,350 Heinz (H.J.) Company 370,012 37
20,250 *Infinity Broadcasting Corporation--Class "A" 680,906 68
6,100 Kimberly-Clark Corporation 581,025 58
6,200 *Kroger Company 288,300 29
41,800 PepsiCo, Inc. 1,222,650 122
11,800 Procter & Gamble Company 1,268,500 127
11,800 Sysco Corporation 384,975 39
11,025 *Tele-Communications, Inc. Liberty Media Group--Class "A" 314,902 32
5,600 Time Warner, Inc. 210,000 21
4,000 Unilever N.V. 701,000 70
5,200 *Viacom, Inc.--Class "B" 181,350 18
6,800 *Vons Companies, Inc. 407,150 41
5,300 Walgreen Company 212,000 21
17,000 Walt Disney Company 1,183,625 118
10,400 Wendy's International, Inc. 213,200 21
7,800 Whitman Corporation 178,425 18
- ----------------------------------------------------------------------------------------------------------------
12,630,445 1,262
- ----------------------------------------------------------------------------------------------------------------
Energy--7.0%
7,400 Amoco Corporation 595,700 60
11,000 Baker Hughes, Inc. 379,500 38
2,700 Burlington Resources, Inc. 136,012 14
6,300 Dresser Industries, Inc. 195,300 20
14,000 Exxon Corporation 1,372,000 137
3,400 Halliburton Company 204,850 20
4,800 Kerr-McGee Corporation 345,600 35
7,400 Mobil Corporation 904,650 90
8,100 Royal Dutch Petroleum Company 1,383,075 138
5,900 Schlumberger, Ltd. 589,263 59
3,700 Texaco, Inc. 363,063 36
5,166 Union Pacific Resources Group, Inc. 151,105 15
9,200 Unocal Corporation 373,750 37
- ----------------------------------------------------------------------------------------------------------------
6,993,868 699
- ----------------------------------------------------------------------------------------------------------------
Financial--13.5%
7,800 Allstate Corporation 451,425 45
9,300 American Express Company 525,450 52
8,900 American International Group, Inc. 963,425 96
8,200 Bank of Boston Corporation 526,850 53
6,800 BankAmerica Corporation 678,300 68
12,300 Charles Schwab Corporation 393,600 39
14,100 Chase Manhattan Corporation 1,258,425 126
9,500 Citicorp 978,500 98
8,100 Dean Witter Discover and Company 536,625 54
26,200 Federal National Mortgage Association 975,950 97
3,200 Fifth Third Bancorp 201,000 20
10,100 First Union Corporation 747,400 75
1,500 General Re Corporation 236,625 24
5,400 ITT Hartford Group, Inc. 364,500 36
9,100 Marshall & Ilsley Corporation 315,087 31
4,200 Merrill Lynch & Company, Inc. 342,300 34
11,000 National City Corporation 493,625 49
6,300 NationsBank Corporation 615,825 62
14,400 Norwest Corporation 626,400 63
9,200 Salomon, Inc. 433,550 43
5,600 Student Loan Marketing Association 521,500 52
16,600 The Money Store, Inc. 458,575 46
5,900 Torchmark Corporation 297,950 30
28,700 USF&G Corporation 599,113 60
- ----------------------------------------------------------------------------------------------------------------
13,542,000 1,353
- ----------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--9.7%
12,900 Abbott Laboratories 654,675 65
10,400 American Home Products Corporation 609,700 61
4,300 *Amgen, Inc. 233,813 23
5,800 Baxter International, Inc. 237,800 24
9,300 Becton Dickinson & Company 403,388 40
10,600 *Biogen, Inc. 410,750 41
8,600 Bristol-Myers Squibb Company 935,250 93
32,200 *Cardiovascular Dynamics, Inc. 418,600 42
9,750 Columbia/HCA Healthcare Corporation 397,312 40
13,300 Eli Lilly & Company 970,900 97
4,000 Guidant Corporation 228,000 23
19,500 Johnson & Johnson 970,125 97
12,600 Merck & Company, Inc. 998,550 100
18,800 Pharmacia & Upjohn, Inc. 744,950 74
4,400 SmithKline Beecham PLC 299,200 30
8,600 St. Jude Medical, Inc. 366,575 37
9,200 *Tenet Healthcare Corporation 201,250 20
8,400 Warner-Lambert Company 630,000 63
- ----------------------------------------------------------------------------------------------------------------
9,710,838 970
- ----------------------------------------------------------------------------------------------------------------
Technology--15.4%
15,600 *Adaptec, Inc. 624,000 62
7,900 *Andrew Corporation 419,194 42
4,400 *Cascade Communications Corporation 242,550 24
13,600 *Cisco Systems, Inc. 865,300 87
3,350 Computer Associates International, Inc. 166,663 17
11,800 *Dell Computer Corporation 626,875 63
20,500 Ericsson (L.M.) Telephone Co. (ADR)--Class "B" 618,844 62
17,200 *ESS Technology, Inc. 483,750 48
17,400 First Data Corporation 635,100 64
5,900 Grainger (W.W.), Inc. 473,475 47
16,000 Hewlett-Packard Company 804,000 80
16,400 *Informix Corporation 334,150 34
12,000 Intel Corporation 1,571,250 157
4,600 International Business Machines Corporation 694,600 70
22,100 *Loral Space & Communications 406,088 41
7,900 *LSI Logic Corporation 211,325 21
10,200 Lucent Technologies, Inc. 471,750 47
17,600 *Microsoft Corporation 1,454,200 145
13,900 Motorola, Inc. 853,112 85
11,500 Nokia Corporation (ADR)--Class "A" 662,687 66
8,475 *Oracle Corporation 353,831 35
7,500 Raytheon Company 360,938 36
16,200 *Sterling Commerce, Inc. 571,050 57
18,200 *Sun Microsystems, Inc. 467,512 47
27,800 *SystemSoft Corporation 413,525 41
10,100 Texas Instruments, Inc. 643,875 64
- ----------------------------------------------------------------------------------------------------------------
15,429,644 1,542
- ----------------------------------------------------------------------------------------------------------------
Transportation--1.2%
2,800 *AMR Corporation 246,750 25
2,400 Burlington Northern Santa Fe 207,300 21
13,500 Ryder System, Inc. 379,688 38
6,100 Union Pacific Corporation 366,762 36
- ----------------------------------------------------------------------------------------------------------------
1,200,500 120
- ----------------------------------------------------------------------------------------------------------------
Utilities--3.5%
9,000 Carolina Power & Light Company 328,500 33
15,700 CINergy Corporation 523,988 52
10,900 Duke Power Company 504,125 50
10,600 Enron Corporation 457,125 46
13,100 FPL Group, Inc. 602,600 60
10,200 PacifiCorp 209,100 21
8,000 Sonat, Inc. 412,000 41
11,000 Texas Utilities Company 448,250 45
- ----------------------------------------------------------------------------------------------------------------
3,485,688 348
- ----------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $68,583,959) 91,520,172 9,145
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.9%
$500 M J.P. Morgan & Company, Inc., 5.36%, 1/6/97 499,628 50
400 M Texaco, Inc., 5.52%, 1/13/97 399,264 40
- ----------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $898,892) 898,892 90
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $69,482,851) 92.4% 92,419,064 9,235
Other Assets, Less Liabilities 7.6 7,658,964 765
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $100,078,028 $10,000
================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM CORPORATE NOTES--90.0%
$180 M Alabama Power Company, 2/4/97 5.32% $ 179,096 $ 417
100 M Associated Corporation of North America, 2/13/97 5.11 100,235 233
180 M Avnet, Inc., 2/7/97 5.33 179,014 417
180 M Baltimore Gas and Electric Company, 1/9/97 5.93 179,763 418
190 M Bellsouth Telecommunications, 2/14/97 5.32 188,764 439
180 M Clorox Company, 3/14/97 5.30 178,092 415
150 M Coca Cola Company, 2/28/97 5.30 148,719 346
180 M Du Pont (E.I.) de Nemours & Company, 2/14/97 5.26 178,843 416
175 M Engelhard Corporation, 1/15/97 5.33 174,637 407
100 M Ford Motor Credit Company, 1/14/97 5.80 99,791 232
60 M Ford Motor Credit Company, 1/17/97 5.32 59,858 139
175 M General Electric Capital Corporation, 1/7/97 5.31 174,845 407
100 M HJ Heinz Company, 1/27/97 5.45 99,606 232
196 M Idaho Power Company, 1/16/97 6.15 195,498 455
130 M Laclede Gas Company, 1/13/97 6.05 129,738 302
100 M Merck & Company, Inc., 1/15/97 5.69 102,433 238
175 M Michigan Consolidated Gas Company, 1/7/97 5.44 174,841 407
150 M National Rural Utilities Cooperative, 1/22/97 5.31 149,536 348
175 M Paccar Finance Corporation, 2/28/97 5.30 173,506 404
200 M Pepsico, Inc., 1/31/97 5.50 199,083 463
150 M Pitney Bowes Credit Company, 1/6/97 5.56 149,885 349
180 M Schering Corporation, 6/17/97 5.25 175,616 409
150 M Texaco, Inc., 1/24/97 5.64 149,460 348
150 M USAA Capital Corporation, 2/10/97 5.28 149,133 347
180 M Walt Disney Company, 3/21/97 5.28 177,914 414
- ----------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,867,906) 3,867,906 9,002
- ----------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--10.5%
50 M Federal Home Loan Bank, 2/10/97 5.60 50,781 118
100 M Federal Home Loan Bank, 7/24/97 5.56 102,312 238
120 M Federal Home Loan Mortgage Corporation, 1/15/97 5.50 122,871 286
175 M Federal National Mortgage Association, 2/13/97 5.45 176,459 411
- ----------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agencies (cost $452,423) 452,423 1,053
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $4,320,329) 100.5% 4,320,329 10,055
Excess of Liabilities Over Other Assets (.5) (23,797) (55)
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $4,296,532 $10,000
================================================================================================================
* The interest rate shown is the effective rate at the time of purchase.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE DISCOVERY FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--92.2%
Basic Materials--1.2%
8,700 *Alyn Corporation $ 94,613 $ 13
31,000 *Repap Enterprises, Inc. 86,220 12
9,300 Schulman (A.), Inc. 227,850 32
29,500 Stone Container Corporation 438,813 62
- ----------------------------------------------------------------------------------------------------------------
847,496 119
- ----------------------------------------------------------------------------------------------------------------
Capital Goods--8.8%
28,700 AGCO Corporation 821,537 116
18,700 *American Buildings Company 446,462 63
17,700 *American Residential Services, Inc. 480,112 68
14,600 Columbus McKinnon Corporation 228,126 32
16,800 Corning, Inc. 777,000 110
17,700 *Jacobs Engineering Group, Inc. 418,163 59
8,700 Millipore Corporation 359,963 51
23,500 *Philip Environmental, Inc. 340,750 48
6,800 Raychem Corporation 544,850 77
26,600 Reynolds & Reynolds Company 691,600 98
48,600 *Superior Services, Inc. 990,225 140
10,300 Titan Wheel International, Inc. 131,325 19
- ----------------------------------------------------------------------------------------------------------------
6,230,113 881
- ----------------------------------------------------------------------------------------------------------------
Communication Services--2.2%
36,800 ECI Telecommunications Limited Designs 782,000 110
7,300 *Intermedia Communications, Inc. 187,975 27
12,400 *Octel Communications Corporation 217,000 31
72,600 *USCI, Inc. 390,225 55
- ----------------------------------------------------------------------------------------------------------------
1,577,200 223
- ----------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--13.2%
17,700 Adidas AG (GDR) (Note 4) 763,766 108
21,100 *Bell Sports Corporation 126,600 18
22,100 *BMC West Corporation 270,725 38
14,600 *Checkfree Corporation 250,025 35
3,500 *Copart, Inc. 45,937 6
27,275 *CUC International, Inc. 647,783 91
21,600 Equifax, Inc. 661,500 93
11,000 *Federated Department Stores, Inc. 375,375 53
14,700 *Franklin Electronic Publishers, Inc. 178,237 25
28,100 *Friedman's, Inc. 414,475 58
8,900 *Hibbett Sporting Goods, Inc. 129,050 18
13,600 LA Quinta Inns, Inc. 260,100 37
47,300 *Lithia Motors, Inc. 526,212 74
22,000 Oakwood Homes Corporation 503,250 71
20,500 *OfficeMax, Inc. 217,812 31
36,800 Ogden Corporation 690,000 97
20,500 *PIA Merchandising Services, Inc. 215,250 30
8,100 *Saks Holdings, Inc. 218,700 31
11,200 *Scientific Games Holdings Corporation 299,600 42
24,700 *Silicon Gaming, Inc. 398,287 56
11,600 TJ International, Inc. 269,700 38
29,600 *Travis Boats & Motors, Inc. 381,100 54
31,000 *U.S. Office Products Company 1,057,875 149
14,800 *Vans, Inc. 185,000 26
14,500 *Wet Seal, Inc. 309,938 44
- ----------------------------------------------------------------------------------------------------------------
9,396,297 1,323
- ----------------------------------------------------------------------------------------------------------------
Consumer Staples--9.8%
7,200 *American Radio Systems Corporation 196,200 28
21,700 *Buffets, Inc. 198,012 28
7,800 Cardinal Health, Inc. 454,350 64
24,900 *Cinar Films, Inc.--Class "B" 647,400 91
8,700 *Evergreen Media Corporation--Class "A" 217,500 31
12,600 First Brands Corporation 357,525 50
15,400 Gaylord Entertainment Company--Class "A" 352,275 50
13,500 *Outback Steakhouse, Inc. 361,125 51
14,500 *Quality Dining, Inc. 259,187 37
24,550 Richfood Holdings, Inc. 595,337 84
21,400 Rite Aid Corporation 850,650 120
19,200 Rival Company 477,600 67
36,900 *Steiner Leisure, Ltd. 742,613 105
25,800 *Tele-Communications, Inc., Liberty Media Group--Class "A" 736,913 104
13,400 *Viacom, Inc.--Class "B" 467,325 66
- ----------------------------------------------------------------------------------------------------------------
6,914,012 976
- ----------------------------------------------------------------------------------------------------------------
Energy--2.3%
5,900 *Falcon Drilling Company, Inc. 231,575 33
13,700 *Input/Output, Inc. 253,450 36
37,500 PacifiCorp 768,750 108
7,200 *Trico Marine Services, Inc. 345,600 49
- ----------------------------------------------------------------------------------------------------------------
1,599,375 226
- ----------------------------------------------------------------------------------------------------------------
Financial--10.9%
7,100 Aames Financial Corporation 254,713 36
36,800 Ambassador Apartments, Inc. 869,400 123
17,000 *Cal Fed Bancorp, Inc. 416,500 59
16,049 Conseco, Inc. 1,023,123 144
27,600 *Glendale Federal Bank FSB 641,700 91
37,100 *Imperial Credit Industries, Inc. 779,100 110
21,700 Independent Bank Corporation 227,850 32
29,500 Innkeepers USA Trust 409,314 58
22,100 Integon Corporation 392,275 55
6,500 Mark Twain Bancshares, Inc. 316,875 45
5,900 Mercantile Bancorporation 303,114 43
27,000 *NHP, Inc. 418,500 59
6,500 Redwood Trust, Inc. 242,125 34
18,050 Reliance Group Holdings, Inc. 164,706 23
11,600 The Money Store, Inc. 320,450 45
23,450 Titan Holdings, Inc. 386,925 55
11,800 USF&G Corporation 246,325 35
26,600 Willis Corroon Group PLC (ADR) 305,900 43
- ----------------------------------------------------------------------------------------------------------------
7,718,895 1,090
- ----------------------------------------------------------------------------------------------------------------
Healthcare/Miscellaneous--13.1%
22,400 *Atrix Laboratories, Inc. 240,800 34
8,700 *Cardiovascular Dynamics, Inc. 113,100 16
20,700 *CIMA Labs, Inc. 126,787 18
14,600 *Coventry Corporation 135,278 19
11,400 Dentsply International, Inc. 541,500 76
8,800 *EndoSonics Corporation 134,200 19
35,800 *Ethical Holdings PLC (ADR) 208,088 29
15,500 Fisher Scientific International 730,437 103
7,300 *FPA Medical Management, Inc. 163,337 23
13,700 *Genesis Health Ventures, Inc. 426,412 60
5,700 HBO & Company 338,437 48
7,200 *HCIA, Inc. 248,400 35
15,850 *Health Care and Retirement Corporation 453,706 64
29,700 *Health Systems Design Corporation 263,587 37
7,300 *HeathCare Financial Partners, Inc. 93,075 13
26,600 *Kensey Nash Corporation 399,000 56
14,900 *Ligand Pharmaceuticals--Class "B" 221,637 31
12,700 *Living Centers of America, Inc. 352,425 50
11,700 *Pediatric Services of America, Inc. 226,687 32
19,800 *Perrigo Company 180,675 25
23,300 *Physician Support Systems, Inc. 448,525 63
11,600 *Physicians Resource Group, Inc. 205,900 29
10,400 *RoTech Medical Corporation 218,400 31
7,300 *Rural/Metro Corporation 262,800 37
13,800 *St. Jude Medical, Inc. 588,225 83
19,200 *Sunquest Information Systems, Inc. 273,600 39
8,800 Teva Pharmaceutical Industries, Ltd. (ADR) 442,200 62
45,200 *VidaMed, Inc. 581,950 82
15,100 *Watson Pharmaceuticals, Inc. 678,556 96
- ----------------------------------------------------------------------------------------------------------------
9,297,724 1,310
- ----------------------------------------------------------------------------------------------------------------
Technology--29.0%
22,400 *ACE*COMM Corporation 336,000 47
24,900 *Adaptec, Inc. 996,000 140
9,500 *Adtran, Inc. 394,250 56
5,400 *Altera Corporation 392,514 55
18,500 *Analog Devices, Inc. 626,687 88
29,700 *Applied Microsystems Corporation 393,525 56
13,600 *Atmel Corporation 450,500 64
29,000 AVX Corporation 623,500 88
14,300 *BISYS Group, Inc. 529,993 75
6,400 *Cascade Communications Corporation 352,800 50
4,200 *Checkpoint Systems, Inc. 103,950 15
11,600 *CHS Electronics, Inc. 198,650 28
7,600 *Cisco Systems, Inc. 483,550 68
10,775 Computer Associates International, Inc. 536,056 76
12,200 *Control Data Systems, Inc. 268,400 38
14,700 *Credence Systems Corporation 295,837 42
15,100 *Cylink Corporation 196,300 28
10,200 *Elexsys International, Inc. 202,725 29
26,300 *EMC Corporation 871,188 123
37,100 Ericsson (L.M.) Telephone Company (ADR)--Class "B" 1,119,956 158
29,200 *ESS Technology, Inc. 821,250 116
2,900 *Etec Systems, Inc. 110,925 16
7,300 *Flextronics International, Ltd. 202,575 29
9,000 *Informix Corporation 183,375 26
14,800 *Innotech, Inc. 114,700 16
3,200 Intel Corporation 419,000 59
13,400 *Interlink Computer Sciences, Inc. 224,450 32
26,200 *Kent Electronics 674,650 95
19,100 *LSI Logic Corporation 510,925 72
14,400 *Metromedia International Group 142,200 20
11,000 *Microsoft Corporation 908,875 128
8,500 Motorola, Inc. 521,688 74
7,200 *Network Appliance, Inc. 366,300 52
27,700 *Network General Corporation 837,925 118
6,300 Nokia Corporation (ADR)--Class "A" 363,037 51
5,500 *Novellus Systems, Inc. 298,033 42
14,500 *Object Design, Inc. 170,375 24
12,625 *Oracle Corporation 527,093 74
11,600 *Quantum Corporation 332,050 47
25,200 *Saville Systems Ireland (ADR) 1,023,750 144
11,500 *Sterling Commerce, Inc. 405,375 57
64,700 *SystemSoft Corporation 962,413 136
2,500 *U.S. Robotics Corporation 180,000 25
10,200 *Versant Object Technology Corporation 189,975 27
13,100 *XcelleNet, Inc. 211,237 30
6,600 *3Com Corporation 484,275 68
- ----------------------------------------------------------------------------------------------------------------
20,558,832 2,902
- ----------------------------------------------------------------------------------------------------------------
Transportation--1.7%
27,800 Interpool, Inc. 649,825 92
8,500 *Landstar System, Inc. 197,625 28
69,700 Transportacion Maritima Mexicana, S.A. de C.V. (ADR) 365,925 52
- ----------------------------------------------------------------------------------------------------------------
1,213,375 172
- ----------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $54,640,517) 65,353,319 9,222
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.4%
$300 M Ford Motor Credit Company, 5.55%, 1/10/97 (cost $299,568) 299,568 42
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $54,940,085) 92.6% 65,652,887 9,264
Other Assets, Less Liabilities 7.4 5,246,123 736
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $70,899,010 $10,000
================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE GOVERNMENT FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED CERTIFICATES--62.7%
$1,306 M Federal Home Loan Mortgage Corp., 7 1/2%, 5/1/2024 $1,314,009 $ 1,456
Federal National Mortgage Association:
246 M 7%, 1/1/2026 241,511 268
949 M 7%, 2/1/2026 930,549 1,031
678 M 9%, 10/1/2020 722,720 801
Government National Mortgage Association I Program:
111 M 11 1/2%, 10/15/2012 126,622 140
266 M 11 1/2%, 5/15/2015 301,623 334
Government National Mortgage Association II Program:
685 M 8%, 8/20/2016 705,211 781
296 M 8%, 9/20/2016 304,156 337
959 M 9%, 12/20/2016 1,017,081 1,127
- ----------------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $5,603,989) 5,663,482 6,275
- ----------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--23.2%
1,000 M Federal National Mortgage Association, 8 1/2%, 2/1/2005 1,051,970 1,166
1,000 M Student Loan Marketing Association, 7 1/2%, 3/8/2000 1,037,766 1,150
- ----------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $2,092,233) 2,089,736 2,316
- ----------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--5.6%
500 M U.S. Treasury Note, 6 1/2%, 10/15/2006 (cost $502,968) 502,968 557
- ----------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--7.2%
300 M Ford Motor Credit Co., 6.10%, 1/6/97 299,746 332
350 M General Electric Capital Corp., 6.10%, 1/6/97 349,704 388
- ----------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $649,450) 649,450 720
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $8,848,640) 98.7% 8,905,636 9,868
Other Assets, Less Liabilities 1.3 118,787 132
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,024,423 $10,000
================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE GROWTH FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--97.1%
Aerospace/Defense--2.2%
9,200 Boeing Company $ 978,650 $ 124
11,800 United Technologies Corporation 778,800 99
- ----------------------------------------------------------------------------------------------------------------
1,757,450 223
- ----------------------------------------------------------------------------------------------------------------
Apparel/Textiles--.3%
5,500 *Nine West Group, Inc. 255,063 32
- ----------------------------------------------------------------------------------------------------------------
Automotive--1.4%
17,500 Ford Motor Company 557,813 71
10,900 Goodyear Tire & Rubber Company 559,987 71
- ----------------------------------------------------------------------------------------------------------------
1,117,800 142
- ----------------------------------------------------------------------------------------------------------------
Banks--6.5%
9,300 Associated Banc-Corp 395,250 50
12,000 Bancorp Hawaii, Inc. 504,000 64
6,900 Citicorp 710,700 90
7,350 First Commercial Corporation 272,869 35
12,200 First Union Corporation 902,800 115
11,300 NationsBank Corporation 1,104,575 140
13,500 State Street Boston Corporation 870,750 110
9,000 Wilmington Trust Corporation 355,500 45
- ----------------------------------------------------------------------------------------------------------------
5,116,444 649
- ----------------------------------------------------------------------------------------------------------------
Business Services--3.1%
5,000 Avnet, Inc. 291,250 37
24,000 Dames & Moore, Inc. 351,000 45
20,000 Foster Wheeler Corporation 742,500 94
15,000 G & K Services, Inc.--Class "A" 566,250 72
1,800 *Ionics, Inc. 86,400 11
20,500 *Metromail Corporation 374,125 47
- ----------------------------------------------------------------------------------------------------------------
2,411,525 306
- ----------------------------------------------------------------------------------------------------------------
Chemicals--3.3%
10,600 Air Products and Chemicals, Inc. 732,725 93
7,200 Dow Chemical Company 564,300 72
24,000 Engelhard Corporation 459,000 58
10,000 Minerals Technologies, Inc. 410,000 52
17,500 Schulman (A.), Inc. 428,750 54
- ----------------------------------------------------------------------------------------------------------------
2,594,775 329
- ----------------------------------------------------------------------------------------------------------------
Communications Equipment--3.7%
12,800 *Cisco Systems, Inc. 814,400 103
8,000 General Motors Corporation--Class "H" 450,000 57
7,584 Lucent Technology, Inc. 350,760 45
12,500 Nokia Corporation--Class "A" (ADR) 720,313 91
7,500 *3Com Corporation 550,313 70
- ----------------------------------------------------------------------------------------------------------------
2,885,786 366
- ----------------------------------------------------------------------------------------------------------------
Computers & Office Equipment--2.9%
12,000 *Adaptec, Inc. 480,000 61
6,500 *Compaq Computer Corporation 482,625 61
19,600 Hewlett-Packard Company 984,900 125
2,200 International Business Machines Corporation 332,200 42
- ----------------------------------------------------------------------------------------------------------------
2,279,725 289
- ----------------------------------------------------------------------------------------------------------------
Drugs--6.0%
9,000 Merck & Company, Inc. 713,250 91
11,300 Pfizer, Inc. 936,487 119
8,500 Pharmacia & Upjohn, Inc. 336,813 43
15,000 Rhone-Poulenc Rorer Group, Inc. 1,171,875 148
14,000 Warner-Lambert Company 1,050,000 133
6,700 Zeneca Group PLC (ADR) 562,800 71
- ----------------------------------------------------------------------------------------------------------------
4,771,225 605
- ----------------------------------------------------------------------------------------------------------------
Electrical Equipment--3.8%
15,500 General Electric Company 1,532,562 194
20,000 Hubbell, Inc.--Class "B" 865,000 110
12,500 *Littlefuse, Inc. 606,250 77
- ----------------------------------------------------------------------------------------------------------------
3,003,812 381
- ----------------------------------------------------------------------------------------------------------------
Electronics--2.8%
17,700 AMP, Inc. 679,237 86
13,000 Dallas Semiconductor Corporation 299,000 38
7,600 Intel Corporation 995,125 126
6,000 *Maxim Integrated Products, Inc. 259,500 33
- ----------------------------------------------------------------------------------------------------------------
2,232,862 283
- ----------------------------------------------------------------------------------------------------------------
Energy Services--1.5%
18,500 *Input/Output, Inc. 342,250 43
8,300 Schlumberger, Ltd. 828,963 106
- ----------------------------------------------------------------------------------------------------------------
1,171,213 149
- ----------------------------------------------------------------------------------------------------------------
Energy Sources--4.5%
13,300 Amoco Corporation 1,070,650 135
2,500 *Barrett Resources Corporation 106,563 14
15,000 Chevron Corporation 975,000 123
8,500 Exxon Corporation 833,000 106
18,469 Union Pacific Resources Group, Inc. 540,218 69
- ----------------------------------------------------------------------------------------------------------------
3,525,431 447
- ----------------------------------------------------------------------------------------------------------------
Entertainment Products--.6%
6,000 Harley-Davidson, Inc. 282,000 36
11,000 *Speedway Motorsports, Inc. 231,000 29
- ----------------------------------------------------------------------------------------------------------------
513,000 65
- ----------------------------------------------------------------------------------------------------------------
Financial Services--3.9%
22,000 American Express Company 1,243,000 158
33,280 Fannie Mae 1,239,680 157
9,900 Morgan Stanley Group, Inc. 565,537 72
- ----------------------------------------------------------------------------------------------------------------
3,048,217 387
- ----------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--3.5%
11,000 General Mills, Inc. 697,125 88
17,400 PepsiCo, Inc. 508,950 65
5,600 Philip Morris Cos., Inc. 630,700 80
24,600 Sara Lee Corporation 916,350 116
- ----------------------------------------------------------------------------------------------------------------
2,753,125 349
- ----------------------------------------------------------------------------------------------------------------
Health Services--3.2%
15,750 Columbia HCA/Healthcare Corporation 641,812 82
13,500 *Living Centers of America, Inc. 374,625 48
9,500 Shared Medical Systems Corporation 467,875 59
22,000 *Tenet Healthcare Corporation 481,250 61
12,500 United Healthcare Corporation 562,500 71
- ----------------------------------------------------------------------------------------------------------------
2,528,062 321
- ----------------------------------------------------------------------------------------------------------------
Household Products--3.0%
12,700 *Bush Boake Allen, Inc. 338,137 43
10,000 Kimberly-Clark Corporation 952,500 121
9,900 Procter & Gamble Company 1,064,250 135
- ----------------------------------------------------------------------------------------------------------------
2,354,887 299
- ----------------------------------------------------------------------------------------------------------------
Housing--.4%
6,600 Ethan Allen Interior, Inc. 254,100 32
4,400 Juno Lighting, Inc. 70,400 9
- ----------------------------------------------------------------------------------------------------------------
324,500 41
- ----------------------------------------------------------------------------------------------------------------
Insurance--5.6%
10,000 Ace, Ltd. 601,250 76
17,000 Allstate Corporation 983,875 125
8,175 American International Group, Inc. 884,944 112
10,500 Frontier Insurance Group, Inc. 401,625 51
5,500 Reinsurance Group 259,187 33
27,533 Travelers Group, Inc 1,249,310 159
- ----------------------------------------------------------------------------------------------------------------
4,380,191 556
- ----------------------------------------------------------------------------------------------------------------
Machinery & Manufacturing--3.8%
11,000 Caterpillar, Inc. 827,750 105
10,000 Donaldson Company 335,000 43
11,300 Minnesota Mining & Manufacturing Company 936,487 118
8,000 *MSC Industrial Direct Company, Inc.--Class "A" 296,000 38
6,000 Nordson Corporation 382,500 49
10,250 *Paxar Corporation 176,813 22
- ----------------------------------------------------------------------------------------------------------------
2,954,550 375
- ----------------------------------------------------------------------------------------------------------------
Media--3.9%
21,000 ADVO, Inc. 294,000 37
17,000 Cognizant Corporation 561,000 71
11,000 Gannett Company 823,625 105
3,000 *Scholastic Corporation 201,750 26
17,000 *US West Media Group 314,500 40
24,000 *Viacom, Inc.--Class "B" 837,000 106
- ----------------------------------------------------------------------------------------------------------------
3,031,875 385
- ----------------------------------------------------------------------------------------------------------------
Medical Products--2.5%
18,000 Abbott Laboratories 913,500 116
17,000 Biomet, Inc. 257,125 33
16,500 Life Technologies, Inc. 412,500 52
17,000 *Nellcor Puritan Bennett, Inc. 371,875 47
- ----------------------------------------------------------------------------------------------------------------
1,955,000 248
- ----------------------------------------------------------------------------------------------------------------
Metals & Minerals--2.0%
9,000 Aluminum Company of America 573,750 73
10,000 Phelps Dodge Corporation 675,000 85
9,000 *UCAR International, Inc. 338,625 43
- ----------------------------------------------------------------------------------------------------------------
1,587,375 201
- ----------------------------------------------------------------------------------------------------------------
Paper/Forest Products--1.9%
8,000 Bemis Company, Inc. 295,000 37
9,000 Crown Cork & Seal Company, Inc. 489,375 62
18,000 International Paper Company 726,750 93
- ----------------------------------------------------------------------------------------------------------------
1,511,125 192
- ----------------------------------------------------------------------------------------------------------------
Retail--6.0%
24,000 Arbor Drugs, Inc. 417,000 53
15,500 *Barnes & Noble, Inc. 418,500 53
5,000 *Gymboree Corporation 114,375 15
15,000 Home Depot, Inc. 751,875 95
18,000 May Department Stores Company 841,500 107
27,000 *OfficeMax, Inc. 286,875 36
19,000 Rite Aid Corporation 755,250 96
16,300 *Saks Holdings, Inc. 440,100 56
32,000 Wal-Mart Stores, Inc. 732,000 93
- ----------------------------------------------------------------------------------------------------------------
4,757,475 604
- ----------------------------------------------------------------------------------------------------------------
Software & Services--6.9%
11,500 *American Management Systems, Inc. 281,750 36
18,000 Automatic Data Processing, Inc. 771,750 98
14,000 BGS Systems, Inc. 383,250 49
6,000 *BISYS Group, Inc. 222,375 28
7,800 *Computer Sciences Corporation 640,575 81
10,500 *DST Systems, Inc. 329,437 42
13,200 First Data Corporation 481,800 61
10,400 *Microsoft Corporation 859,300 109
10,500 *Policy Management Systems Corporation 484,312 61
9,000 *Sterling Commerce, Inc. 317,250 40
12,400 *Sterling Software, Inc. 392,150 50
19,000 *Systems & Computer Technology Corporation 304,000 39
- ----------------------------------------------------------------------------------------------------------------
5,467,949 694
- ----------------------------------------------------------------------------------------------------------------
Telephone--3.0%
19,700 A T & T Corp. 822,475 104
10,000 Century Telephone Enterprises 308,750 39
24,000 SBC Communications, Inc. 1,242,000 158
- ----------------------------------------------------------------------------------------------------------------
2,373,225 301
- ----------------------------------------------------------------------------------------------------------------
Transportation--1.4%
12,500 Air Express International Corporation 403,125 51
8,500 *M.S. Carriers, Inc. 136,000 17
10,000 Union Pacific Corporation 601,250 77
- ----------------------------------------------------------------------------------------------------------------
1,140,375 145
- ----------------------------------------------------------------------------------------------------------------
Travel & Leisure--3.5%
2,700 *Doubletree Corporation 121,500 15
5,900 *Landry's Seafood Restaurants, Inc. 126,113 16
22,000 McDonald's Corporation 995,500 127
24,000 *Mirage Resorts, Inc. 519,000 66
9,500 *Quality Dining, Inc. 169,813 22
37,000 Southwest Airlines Company 818,625 104
- ----------------------------------------------------------------------------------------------------------------
2,750,551 350
- ----------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $60,796,952) 76,554,593 9,714
- ----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--2.5%
$1,953 M Swiss Bank, 6.70%, 1/02/97 (collateralized by U.S.Treasury
Bonds, 5.125%, 4/30/98, valued at $1,998M) (cost $1,953,000) 1,953,000 248
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $62,749,952) 99.6% 78,507,593 9,962
Other Assets, Less Liabilities .4 298,717 38
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $78,806,310 $10,000
================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE HIGH YIELD FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--83.6%
Aerospace/Defense--2.9%
$ 500 M Howmet Corp., 10%, 2003 $ 547,500 $ 111
850 M K & F Industries, Inc., 10 3/8%, 2004 901,000 182
- ----------------------------------------------------------------------------------------------------------------
1,448,500 293
- ----------------------------------------------------------------------------------------------------------------
Apparel/Textiles--1.3%
600 M Westpoint Stevens, Inc., 9 3/8%, 2005 616,500 125
- ----------------------------------------------------------------------------------------------------------------
Automotive--4.8%
700 M Collins & Aikman Products Co., 11 1/2%, 2006 766,500 155
800 M SPX Corp., 11 3/4%, 2002 898,000 182
700 M Walbro Corp., 9 7/8%, 2005 724,500 146
- ----------------------------------------------------------------------------------------------------------------
2,389,000 483
- ----------------------------------------------------------------------------------------------------------------
Chemicals--3.5%
700 M Harris Chemical North America, Inc., 10 1/4%, 2001 731,500 148
600 M Rexene Corp., 11 3/4%, 2004 678,000 137
300 M Synthetic Industries, Inc., 12 3/4%, 2002 332,250 67
- ----------------------------------------------------------------------------------------------------------------
1,741,750 352
- ----------------------------------------------------------------------------------------------------------------
Consumer Products--3.0%
700 M Herff Jones, Inc., 11%, 2005 752,500 152
700 M Scholastic Brands, Inc., 11%, 2007 (Note 4) 715,750 145
- ----------------------------------------------------------------------------------------------------------------
1,468,250 297
- ----------------------------------------------------------------------------------------------------------------
Durable Goods Manufacturing--1.6%
750 M Clark Material Handling, Inc., 10 3/4%, 2006 (Note 4) 787,500 159
- ----------------------------------------------------------------------------------------------------------------
Electrical Equipment--1.5%
700 M Essex Group, Inc., 10%, 2003 724,500 146
- ----------------------------------------------------------------------------------------------------------------
Energy--11.0%
1,000 M Clark R & M Holdings, Inc., 0%, 2000 725,000 147
700 M Falcon Drilling Co., Inc., 12 1/2%, 2005 784,000 158
800 M Giant Industries, Inc., 9 3/4%, 2003 836,000 169
500 M Maxus Energy Corp., 11 1/2%, 2015 526,875 106
800 M United Meridian Corp., 10 3/8%, 2005 876,000 177
1,000 M Veritas DGC, Inc., 9 3/4%, 2006 1,030,000 208
650 M Vintage Petroleum, Inc., 9%, 2005 671,125 136
- ----------------------------------------------------------------------------------------------------------------
5,449,000 1,101
- ----------------------------------------------------------------------------------------------------------------
Financial Services--1.6%
700 M American Life Holding Co., 11 1/4%, 2004 799,750 162
- ----------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--4.0%
250 M Doane Products Co., 10 5/8%, 2006 263,750 54
1,000 M International Home Foods, Inc., 10 3/8%, 2006 (Note 4) 1,035,000 209
600 M Van de Kamps, Inc., 12%, 2005 663,000 134
- ----------------------------------------------------------------------------------------------------------------
1,961,750 397
- ----------------------------------------------------------------------------------------------------------------
Gaming/Lodging--2.8%
750 M Casino America, Inc., 12 1/2%, 2003 708,750 143
700 M Showboat, Inc., 9 1/4%, 2008 691,250 140
- ----------------------------------------------------------------------------------------------------------------
1,400,000 283
- ----------------------------------------------------------------------------------------------------------------
Healthcare--8.6%
750 M Abbey Healthcare Group, Inc., 9 1/2%, 2002 789,375 160
700 M Dade International, Inc., 11 1/8%, 2006 763,000 154
700 M Genesis Healthcare, Inc., 9 3/4%, 2005 736,750 149
600 M Integrated Health Services, Inc., 9 5/8%, 2002 624,000 126
400 M Integrated Health Services, Inc., 10 3/4%, 2004 429,000 87
800 M Tenet Healthcare Corp., 10 1/8%, 2005 887,000 179
- ----------------------------------------------------------------------------------------------------------------
4,229,125 855
- ----------------------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--1.1%
500 M Bell & Howell Co., 10 3/4%, 2002 532,500 108
- ----------------------------------------------------------------------------------------------------------------
Media/Cable Television--12.5%
1,000 M Affiliated Newspaper Investments, 0%-13 1/4%, 2006 825,000 167
1,000 M Bell Cablemedia, PLC, 0%-11.95%, 2004 880,000 178
500 M Diamond Cable Communications, PLC, 0%-11 3/4%, 2005 356,875 72
1,075 M Echostar Communications Corp., 0%-12 7/8%, 2004 889,563 180
500 M Garden State Newspapers, Inc., 12%, 2004 547,500 111
500 M Grupo Televisa, S.A., 11 7/8%, 2006 547,500 111
500 M Rogers Cablesystems, Inc., 10%, 2005 527,500 106
1,000 M Sullivan Broadcasting Co., Inc., 10 1/4%, 2005 1,015,000 205
600 M World Color Press, Inc., 9 1/8%, 2003 616,500 124
- ----------------------------------------------------------------------------------------------------------------
6,205,438 1,254
- ----------------------------------------------------------------------------------------------------------------
Mining/Metals--5.6%
634 M Carbide/Graphite Group, Inc., 11 1/2%, 2003 691,060 140
900 M Commonwealth Aluminum Corp., 10 3/4%, 2006 936,000 189
800 M Gulf States Steel, Inc., 13 1/2%, 2003 760,000 153
400 M Wheeling-Pittsburgh Steel Corp., 9 3/8%, 2003 390,000 79
- ----------------------------------------------------------------------------------------------------------------
2,777,060 561
- ----------------------------------------------------------------------------------------------------------------
Miscellaneous--3.2%
700 M Monarch Marking Systems, Inc., 12 1/2%, 2003 808,500 164
700 M Pierce-Leahy Corp., 11 1/8%, 2006 768,250 155
- ----------------------------------------------------------------------------------------------------------------
1,576,750 319
- ----------------------------------------------------------------------------------------------------------------
Paper/Forest Products--9.0%
500 M Container Corp., 11 1/4%, 2004 543,750 110
500 M Gaylord Container Corp., 11 1/2%, 2001 532,500 108
800 M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 872,000 176
650 M Riverwood International, 10 1/4%, 2006 643,500 130
800 M S.D. Warren Co., Inc., 12%, 2004 868,000 175
1,000 M Stone Container Corp., 9 7/8%, 2001 1,015,000 205
- ----------------------------------------------------------------------------------------------------------------
4,474,750 904
- ----------------------------------------------------------------------------------------------------------------
Telecommunications--4.6%
1,500 M American Communication Services, Inc., 0%-13%, 2005 900,000 182
1,100 M InterCel, Inc., 0%-12%, 2006 667,975 135
700 M Paging Network, Inc., 10%, 2008 (Note 4) 713,125 144
- ----------------------------------------------------------------------------------------------------------------
2,281,100 461
- ----------------------------------------------------------------------------------------------------------------
Transportation--1.0%
500 M Trism, Inc., 10 3/4%, 2000 481,250 97
- ----------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $39,334,101) 41,344,473 8,357
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.3%
Media/Cable Television
1,000 *Affiliated Newspaper Investments 55,000 11
4,744 *Echostar Communications Corp.--Class "A" 104,368 21
- ----------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $20,963) 159,368 32
- ----------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--7.3%
Financial Services--3.9%
7,000 California Federal Bank, 10 5/8%, Series "B" 778,750 157
10,000 First Nationwide Bank, 11 1/2% 1,148,750 232
- ----------------------------------------------------------------------------------------------------------------
1,927,500 389
- ----------------------------------------------------------------------------------------------------------------
Media/Cable Television--2.6%
371 PanAmSat Capital Corp., 12 3/4% 450,437 91
752 Time Warner, Inc., 10 1/4%, PIK, Series "K" 819,680 166
- ----------------------------------------------------------------------------------------------------------------
1,270,117 257
- ----------------------------------------------------------------------------------------------------------------
Paper/Forest Products--.8%
10,800 *S.D. Warren Co., Inc., 14% 399,600 81
- ----------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $3,135,275) 3,597,217 727
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Warrants Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
WARRANTS--.4%
Gaming/Lodging--.0%
200 *Goldriver Finance Corp., Liquidating Trust $ 1,400 $ --
- ----------------------------------------------------------------------------------------------------------------
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) 59,400 12
- ----------------------------------------------------------------------------------------------------------------
Telecommunications--.3%
1,500 *American Communication Services, Inc. (expiring 11/1/05) (Note 4) 142,500 29
- ----------------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $0) 203,700 41
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--6.4%
$2,000 M Brown-Forman Corp., 5.55%, 1/9/97 1,997,533 404
1,000 M S.C. Johnson & Son, Inc., 7.00%, 1/2/97 999,805 202
200 M Texaco, Inc., 6.00%, 1/3/97 199,934 41
- ----------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,197,272) 3,197,272 647
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $45,687,611) 98.0% 48,502,030 9,804
Other Assets, Less Liabilities 2.0 971,514 196
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $49,473,544 $10,000
================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--94.7%
United States--21.8%
14,000 American Express Company $ 791,000 $ 136
6,225 American International Group, Inc. 673,856 116
5,500 Boeing Company 585,063 101
5,511 Conrail, Inc. 549,033 95
7,500 Dow Chemical Company 587,813 101
5,000 Exxon Corporation 490,000 85
18,000 Federal National Mortgage Association 670,500 116
6,000 General Electric Company 593,250 102
5,000 Gillette Company 388,750 67
11,000 Hewlett-Packard Company 552,750 96
16,000 International Paper Company 646,000 111
12,000 Johnson & Johnson 597,000 103
7,000 Kimberly Clark Corporation 666,750 115
2,754 Lucent Technologies, Inc. 127,373 22
19,000 MCI Communications Corporation 621,063 108
10,000 PepsiCo, Inc. 292,500 50
18,000 PG & E Corporation 378,000 65
12,000 Pharmacia & Upjohn, Inc. 475,500 82
6,000 Phelps Dodge Corporation 405,000 70
9,400 United Technologies Corporation 620,400 107
696 *Viacom, Inc.--Class "A" 24,012 4
10,273 *Viacom, Inc.--Class "B" 358,270 62
22,000 Wal-Mart Stores, Inc. 503,250 87
7,500 Warner-Lambert Company 562,500 97
8,300 York International Corporation 463,763 80
- ----------------------------------------------------------------------------------------------------------------
12,623,396 2,178
- ----------------------------------------------------------------------------------------------------------------
Japan--11.2%
12,000 Asahi Organic Chemicals Industry Company, Ltd. 70,612 12
15,400 Canon Sales Company, Inc. 342,310 59
2,000 Chudenko Corporation 57,551 10
24,000 Chugai Pharmaceutical Company, Ltd. 200,568 35
18,000 Dai Nippon Printing Company, Ltd. 314,809 54
11,000 Fuji Machine Manufacturing Company 290,945 50
23,000 JGC Corporation 172,196 30
6,000 Kyudenko Company, Inc. 62,031 11
3,000 Mabuchi Motor Company, Ltd. 150,685 26
19,000 Maruichi Steel Tube, Ltd. 327,387 56
20,000 Matsushita Electric Industrial Company, Ltd. 325,664 56
36,000 Mitsubishi Heavy Industries, Ltd. 285,343 49
8,000 Murata Manufacturing Company, Ltd. 265,357 46
22,000 NGK Spark Plugs Company 240,715 42
36,000 Nippon Express Company, Ltd. 246,262 42
1,770 Nippon Television Network Corporation 533,730 92
14,000 Nomura Securities Company, Ltd. 209,873 36
27,000 Onward Kashiyama Company, Ltd. 379,166 65
18,000 Sakura Bank, Ltd. 128,405 22
7,000 Sanwa Bank, Ltd. 95,287 16
23,000 Seventy-Seven Bank 188,248 32
2,000 Sony Corporation 130,783 23
39,000 Sumitomo Realty & Development 245,283 42
8,000 Sumitomo Trust and Banking Company, Ltd. 79,951 14
12,000 Toda Construction Company, Ltd. 90,979 16
40,000 Toyo Ink Manufacturing Company, Ltd. 163,692 28
10,000 Toyota Motor Corporation 286,895 50
5,000 World Company, Ltd. 206,772 36
43,000 Yamato Kogyo Company, Ltd. 396,396 69
1,000 Yamazaki Baking Company, Ltd. 15,939 3
- ----------------------------------------------------------------------------------------------------------------
6,503,834 1,122
- ----------------------------------------------------------------------------------------------------------------
United Kingdom--11.1%
63,000 Associated British Foods PLC 522,345 90
50,000 Bank of Scotland 263,965 46
36,000 BOC Group PLC 538,135 93
27,000 Boots Company PLC 278,384 48
130,000 British Gas PLC 499,434 86
25,000 British Telecommunications PLC 168,775 29
70,000 BTR PLC 341,404 59
180,000 Cookson Group PLC 726,948 126
44,000 De La Rue PLC 431,072 75
70,000 National Grid Holdings PLC 234,185 40
56,000 Northern Foods PLC 195,978 34
39,311 PowerGen PLC 385,134 66
30,000 Rank Group PLC 223,581 39
15,200 Reckitt & Colman PLC 188,064 32
32,509 Royal & Sun Alliance Insurance Group PLC 247,286 43
44,203 Royal Bank of Scotland PLC 425,122 73
80,914 Sainsbury PLC 537,252 93
30,000 *Sun Life & Provincial Holdings PLC 134,250 23
20,000 United Biscuits (Holdings) PLC 71,874 12
- ----------------------------------------------------------------------------------------------------------------
6,413,188 1,107
- ----------------------------------------------------------------------------------------------------------------
France--6.3%
2,290 Accor SA 289,403 50
18,500 Assurances Generales De France 596,057 103
10,500 Banque Nationale De Paris 405,559 70
1,230 Compagnie De Saint Gobain 173,661 30
5,000 Credit Commercial De France 230,825 40
6,045 Groupe Havas SA 423,252 73
900 Peugeot SA 101,101 17
5,016 Remy Cointreau 141,832 24
13,969 Rhone-Poulenc SA Series "A" 475,328 82
2,615 Societe Generale Paris 282,187 49
3,000 Societe Nationale Elf Aquitaine SA 272,547 47
3,214 Total SA--Class "B" 260,892 45
- ----------------------------------------------------------------------------------------------------------------
3,652,644 630
- ----------------------------------------------------------------------------------------------------------------
Germany--4.1%
7,250 *Daimler-Benz AG 498,666 86
875 Degussa AG 397,441 69
12,800 *Deutsche Telekom AG 266,612 46
700 Karstadt AG 232,560 40
350 Mannesmann AG 151,482 26
39,500 *Metallgesellschaft AG 805,322 139
- ----------------------------------------------------------------------------------------------------------------
2,352,083 406
- ----------------------------------------------------------------------------------------------------------------
Australia--3.6%
70,892 Amcor, Ltd. 455,516 79
164,014 Boral, Ltd. 466,357 80
36,223 Broken Hill Proprietary, Ltd. 515,562 89
96,449 Goodman Fielder, Ltd. 119,500 21
116,000 Pioneer International, Ltd. 345,494 60
12,300 Qantas Airways (ADR) (Note 4) 205,155 35
- ----------------------------------------------------------------------------------------------------------------
2,107,584 364
- ----------------------------------------------------------------------------------------------------------------
Hong Kong--3.5%
40,000 Citic Pacific, Ltd. 232,188 40
58,000 Hutchison Whampoa, Ltd. 455,526 79
20,000 New World Development Company, Ltd. 135,100 23
42,000 Sun Hung Kai Properties, Ltd. 514,479 89
53,000 Swire Pacific, Ltd.--Class "A" 505,329 87
780,000 *Tingyi Holding Company 204,126 35
- ----------------------------------------------------------------------------------------------------------------
2,046,748 353
- ----------------------------------------------------------------------------------------------------------------
Netherlands--3.4%
2,600 Akzo-Nobel NV 354,736 61
19,752 ING Groep NV 710,266 122
10,250 KLM Royal Dutch Airlines 287,991 50
12,500 PolyGram NV 635,934 110
- ----------------------------------------------------------------------------------------------------------------
1,988,927 343
- ----------------------------------------------------------------------------------------------------------------
Italy--2.6%
33,000 Arnoldo Mondadori Editore SPA 268,036 46
145,300 Banca Commerciale Italiana 263,734 46
70,000 Fiat SPA 211,309 36
120,000 *Finanziaria Autogrill SPA 116,004 20
50,000 Stet-Societa Finanziaria Telefonica SPA 226,895 39
159,000 Telecom Italia SPA 412,000 71
- ----------------------------------------------------------------------------------------------------------------
1,497,978 258
- ----------------------------------------------------------------------------------------------------------------
Spain--2.5%
1,900 Acerinox SA Regd 274,026 47
7,200 Empresa Nacional De Electricidad SA (ADR) 504,000 87
4,000 Empresa Nacional De Electricidad SA 284,144 49
15,500 Telefonica De Espana SA 359,273 62
- ----------------------------------------------------------------------------------------------------------------
1,421,443 245
- ----------------------------------------------------------------------------------------------------------------
Singapore--2.4%
37,000 Development Bank of Singapore 499,918 86
50,000 Far East-Levingston Shipbuilding, Ltd. 260,930 45
55,000 Keppel Corporation, Ltd. 428,571 74
70,000 Straits Steamship Land, Ltd. 224,189 39
- ----------------------------------------------------------------------------------------------------------------
1,413,608 244
- ----------------------------------------------------------------------------------------------------------------
Denmark--2.3%
13,700 Tele Danmark A/S Class "B" (ADR) 373,325 64
18,500 Unidanmark A/S Class "A" Regd 956,531 165
- ----------------------------------------------------------------------------------------------------------------
1,329,856 229
- ----------------------------------------------------------------------------------------------------------------
Switzerland--2.3%
110 Compagnie Financiere Richemont AG 154,016 27
480 Nestle AG Regd 513,703 89
750 Sulzer AG PC 399,934 69
300 *SwissAir AG Regd 241,971 42
- ----------------------------------------------------------------------------------------------------------------
1,309,624 227
- ----------------------------------------------------------------------------------------------------------------
Finland--2.0%
100 Kesko 1,408 --
80,000 Merita Bank, Ltd. Class "A" 248,208 43
27,500 Metsa-Serla OY--Class "B" 205,846 36
6,200 Nokia Corporation--Class "A" (ADR) 357,275 62
16,900 Rauma OY 355,672 61
- ----------------------------------------------------------------------------------------------------------------
1,168,409 202
- ----------------------------------------------------------------------------------------------------------------
Mexico--1.8%
70,000 Cemex SA CPO 250,761 43
50,000 Fomento Economico Mexicano SA--Class "B" 171,493 30
50,000 Grupo Carso SA--Class "A" 263,592 45
720,000 *Grupo Financiero Bancomer--Class "B" 288,108 50
18,200 Transportacion Maritima Mexicana SA--Class "A" (ADR) 84,175 15
- ----------------------------------------------------------------------------------------------------------------
1,058,129 183
- ----------------------------------------------------------------------------------------------------------------
Norway--1.5%
26,600 Fokus Bank AS--Class "A" 182,875 32
20,378 *Nycomed AS--Class "A" 311,156 54
23,000 Saga Petroleum AS Series "A" Free 383,610 66
- ----------------------------------------------------------------------------------------------------------------
877,641 152
- ----------------------------------------------------------------------------------------------------------------
Korea--1.3%
3,020 *Chosun Brewery Company, Ltd. 84,474 15
4,060 Daewoo Securities 52,340 9
11,000 Hanil Bank 75,458 13
6,000 Hanwha Chemical Corporation 46,481 8
3,000 Korea Electric Power 87,286 15
9,770 Korean Air Lines 162,236 28
8,000 Pohang Iron & Steel Company, Ltd. (ADR) 162,000 28
130 Samsung Fire & Marine Insurance 53,384 9
1,300 Shinsegae Department Store 53,968 9
- ----------------------------------------------------------------------------------------------------------------
777,627 134
- ----------------------------------------------------------------------------------------------------------------
Malaysia--1.3%
120,000 Land & General Holdings BHD 287,460 49
50,000 MBF Capital BHD 81,170 14
30,000 Resorts World BHD 136,605 24
68,000 Sime Darby Berhad 267,906 46
- ----------------------------------------------------------------------------------------------------------------
773,141 133
- ----------------------------------------------------------------------------------------------------------------
Canada--1.3%
22,000 Canadian Pacific, Ltd. 583,000 100
18,000 *Canwest Global Communications Corporation 184,500 32
- ----------------------------------------------------------------------------------------------------------------
767,500 132
- ----------------------------------------------------------------------------------------------------------------
Sweden--1.3%
4,500 BT Industries AB 83,699 14
16,000 Pharmacia & Upjohn, Inc. 654,947 113
- ----------------------------------------------------------------------------------------------------------------
738,646 127
- ----------------------------------------------------------------------------------------------------------------
Thailand--1.1%
270,700 Bangkok Metropolitan Bank Public Company, Ltd. Foreign Regd 105,573 18
24,500 Land & House Public Company, Ltd. Foreign Regd 178,683 31
24,000 Siam City Cement Public Company, Ltd. Foreign Regd 127,301 22
30,000 Siam Commercial Bank Public Company, Ltd. Foreign Regd 217,626 38
- ----------------------------------------------------------------------------------------------------------------
629,183 109
- ----------------------------------------------------------------------------------------------------------------
Argentina--1.1%
20,000 Perez Companc SA--Class "B" 140,624 24
15,000 Quilmes Industrial SA (ADR) 136,875 24
13,000 YPF SA--Class "D" (ADR) 328,250 57
- ----------------------------------------------------------------------------------------------------------------
605,749 105
- ----------------------------------------------------------------------------------------------------------------
Chile--.7%
15,000 Enersis SA (ADR) 416,250 72
- ----------------------------------------------------------------------------------------------------------------
New Zealand--.7%
71,998 Air New Zealand, Ltd.--Class "B" 195,331 34
84,000 Carter Holt Harvey, Ltd. 190,504 33
- ----------------------------------------------------------------------------------------------------------------
385,835 67
- ----------------------------------------------------------------------------------------------------------------
Ireland--.6%
14,368 Allied Irish Banks PLC 95,892 16
10,000 Bank of Ireland 91,297 16
60,000 *Jefferson Smurfit Group PLC 178,146 31
- ----------------------------------------------------------------------------------------------------------------
365,335 63
- ----------------------------------------------------------------------------------------------------------------
Brazil--.6%
10,000 Centrais Electricas Brasileiras (ADR) 179,002 31
2,370,000 Telecomunicacoes Brasileiras SA 169,692 29
- ----------------------------------------------------------------------------------------------------------------
348,694 60
- ----------------------------------------------------------------------------------------------------------------
Indonesia--.6%
5,000 Indonesian Satellite Corporation (ADR) 136,875 23
128,000 Jaya Real Property Foreign Regd 178,790 31
- ----------------------------------------------------------------------------------------------------------------
315,665 54
- ----------------------------------------------------------------------------------------------------------------
Austria--.5%
2,700 OMV AG 304,136 52
- ----------------------------------------------------------------------------------------------------------------
Philippines--.4%
2,000 Philippine Long Distance Telephone Company (ADR) 102,000 18
190,000 Pilipino Telephone Corporation 160,740 27
- ----------------------------------------------------------------------------------------------------------------
262,740 45
- ----------------------------------------------------------------------------------------------------------------
India--.4%
12,300 *State Bank of India (GDR) (Note 4) 216,788 37
- ----------------------------------------------------------------------------------------------------------------
Venezuela--.3%
5,500 Compania Anonima Nacional Telefonos De Venezuela (ADR) 154,688 27
- ----------------------------------------------------------------------------------------------------------------
Portugal--.1%
800 *Telecel-Comunicacoes Pessoais SA 51,014 9
- ----------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $47,369,321) 54,878,083 9,469
- ----------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.8%
Germany--.4%
3,600 Hornbach Holdings AG 256,958 44
- ----------------------------------------------------------------------------------------------------------------
Brazil--.4%
141,000 Companhia Cervejaria Brahma Regd 77,071 13
1,090,000 Petroleo Brasileiro SA Regd 173,528 30
- ----------------------------------------------------------------------------------------------------------------
250,599 43
- ----------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $458,044) 507,557 87
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--4.3%
$2,472 M Aubrey G. Lanston & Co. Inc., 6.75%, 1/2/97 (collateralized by
U.S. Treasury Bonds, 12 1/2%, 8/15/2014, valued at $2,520M)
(cost $2,472,000) 2,472,000 427
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $50,299,365) 99.8% 57,857,640 9,983
Other Assets, Less Liabilities .2 96,974 17
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $57,954,614 $10,000
================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
At December 31, 1996, sector diversification of the portfolio was as follows:
- ----------------------------------------------------------------------------------------------------------------
Percentage
Sector Diversification of Net Assets Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Banks 10.7% $ 6,185,333
Drugs 5.7 3,276,999
Telephone 5.5 3,202,952
Metals & Minerals 5.4 3,116,558
Food/Beverage/Tobacco 4.8 2,761,192
Media 4.7 2,742,543
Real Estate Companies 4.7 2,724,839
Machinery & Manufacturing 4.3 2,475,458
Electric Utilities 4.3 2,468,001
Energy Sources 4.1 2,353,587
Paper/Forest Products 3.6 2,107,084
Chemicals 3.6 2,088,298
Retail Trade 3.6 2,070,552
Transportation 3.5 2,053,277
Insurance 2.9 1,704,833
Travel & Leisure 2.9 1,696,041
Financial Services 2.9 1,671,373
Electrical Equipment 2.5 1,448,413
Automotive 2.3 1,330,159
Computers & Office Equipment 2.2 1,279,698
Household Products 2.1 1,243,564
Aerospace/Defense 2.1 1,205,463
Business Services 1.5 901,994
Electronics 1.0 591,021
Energy Services 1.0 588,317
Pipeline .9 499,434
Communication Equipment .8 484,648
Medical Products .7 399,934
Apparel/Textiles .7 379,166
Software & Services .3 204,126
Entertainment Products .2 130,783
Repurchase Agreements 4.3 2,472,000
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments 99.8 57,857,640
Other Assets, Less Liabilities .2 96,974
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $57,954,614
================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--85.1%
Aerospace/Defense--5.0%
$300 M Boeing Co., 6.35%, 2003 $ 294,842 $ 180
250 M Lockheed Martin Corp., 7 1/4%, 2006 254,367 155
250 M Rockwell International Corp., 8 3/8%, 2001 266,886 163
- ----------------------------------------------------------------------------------------------------------------
816,095 498
- ----------------------------------------------------------------------------------------------------------------
Agricultural Products--1.8%
300 M Archer Daniels Midland, Inc., 7 1/8%, 2013 298,935 182
- ----------------------------------------------------------------------------------------------------------------
Automotive--1.5%
250 M Hertz Corporation, 6 3/8%, 2005 239,795 146
- ----------------------------------------------------------------------------------------------------------------
Building Materials--.7%
100 M Masco Corp., 9%, 2001 109,111 67
- ----------------------------------------------------------------------------------------------------------------
Chemicals--3.5%
250 M Du Pont, (E.I.) de Nemours & Co., 8 1/8%, 2004 270,545 165
300 M Lubrizol Corp., 7 1/4%, 2025 296,614 181
- ----------------------------------------------------------------------------------------------------------------
567,159 346
- ----------------------------------------------------------------------------------------------------------------
Conglomerates--3.5%
300 M Hanson Overseas, B.V., 7 3/8%, 2003 308,403 188
250 M Tenneco, Inc., 8.075%, 2002 265,890 162
- ----------------------------------------------------------------------------------------------------------------
574,293 350
- ----------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--2.0%
300 M American Home Products Corp., 7.9%, 2005 320,310 195
- ----------------------------------------------------------------------------------------------------------------
Consumer Products--1.5%
250 M Mattel, Inc., 6 3/4%, 2000 251,173 153
- ----------------------------------------------------------------------------------------------------------------
Consumer Staples--1.8%
300 M Walt Disney Co., 6 3/4%, 2006 297,860 182
- ----------------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--8.6%
250 M Baltimore Gas & Electric Co., 6 1/2%, 2003 247,677 151
250 M Duke Power Co., 5 7/8%, 2003 237,986 145
200 M Kansas Gas & Electric Co., 7.6%, 2003 208,058 127
75 M Old Dominion Electric Cooperative, 7.97%, 2002 78,371 48
300 M Pennsylvania Power & Light Co., 6 7/8%, 2003 300,488 183
250 M Philadelphia Electric Co., 8%, 2002 263,032 161
75 M Southwestern Electric Power Co., 7%, 2007 75,988 46
- ----------------------------------------------------------------------------------------------------------------
1,411,600 861
- ----------------------------------------------------------------------------------------------------------------
Energy--2.0%
315 M Baroid Corp., 8%, 2003 335,504 205
- ----------------------------------------------------------------------------------------------------------------
Financial Services--12.7%
40 M BankAmerica Corp., 9 1/2%, 2001 44,243 27
200 M Barnett Banks, Inc., 8 1/2%, 1999 208,800 128
300 M Chemical Bank, Inc., 7%, 2005 300,789 184
200 M Citicorp, 8%, 2003 211,834 129
300 M First Union Corp., 8 1/8%, 2002 318,355 194
300 M Key Corporation, 7 1/2%, 2006 308,236 188
250 M Mellon Bank N.A., 6 1/2%, 2005 242,070 148
50 M Meridian Bancorp, 7 7/8%, 2002 52,530 32
75 M Morgan Guaranty Trust Co., 7 3/8%, 2002 77,393 47
300 M Nationsbank Corp., 8 1/8%, 2002 318,441 194
- ----------------------------------------------------------------------------------------------------------------
2,082,691 1,271
- ----------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--4.7%
250 M Anheuser Busch Cos., Inc., 7%, 2005 251,338 154
25 M Coca-Cola Enterprises, Inc., 7 7/8%, 2002 26,361 16
300 M Hershey Foods Corp., 6.7%, 2005 298,200 182
200 M Philip Morris Cos., Inc., 7 1/8%, 2002 201,937 123
- ----------------------------------------------------------------------------------------------------------------
777,836 475
- ----------------------------------------------------------------------------------------------------------------
Food Services--1.5%
250 M McDonald's Corporation, 6 5/8%, 2005 244,804 149
- ----------------------------------------------------------------------------------------------------------------
Gas Transmission--3.7%
300 M Columbia Gas System, Inc., 6.8%, 2005 295,334 180
300 M Enron Corp., 7 1/8%, 2007 302,311 185
- ----------------------------------------------------------------------------------------------------------------
597,645 365
- ----------------------------------------------------------------------------------------------------------------
Healthcare--1.9%
300 M Columbia/HCA Healthcare Corp., 7.69%, 2025 308,776 188
- ----------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--5.7%
300 M Associates Corp. of North America, 7 7/8%, 2001 314,962 192
300 M General Electric Capital Corp., 7 7/8%, 2006 321,165 196
300 M General Motors Acceptance Corp., 7 1/8%, 1999 305,501 187
- ----------------------------------------------------------------------------------------------------------------
941,628 575
- ----------------------------------------------------------------------------------------------------------------
Media/Cable Television--5.2%
300 M New York Times Co., Inc., 7 5/8%, 2005 316,612 193
250 M News America Holdings, Inc., 8 1/2%, 2005 268,605 164
250 M PanAmSat Capital Corp., 9 3/4%, 2000 268,750 164
- ----------------------------------------------------------------------------------------------------------------
853,967 521
- ----------------------------------------------------------------------------------------------------------------
Paper/Forest Products--3.3%
100 M S.D. Warren Co., Inc., 12%, 2004 108,500 66
150 M Stone Container Corp., 10 3/4%, 2002 159,000 97
250 M Temple Inland, Inc., 9%, 2001 271,371 166
- ----------------------------------------------------------------------------------------------------------------
538,871 329
- ----------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--3.4%
300 M Wal-Mart Stores, Inc., 8%, 2006 324,139 198
250 M Penney (J.C.) & Co., 6 1/8%, 2003 239,770 146
- ----------------------------------------------------------------------------------------------------------------
563,909 344
- ----------------------------------------------------------------------------------------------------------------
Technology--3.2%
250 M International Business Machines Corp., 6 3/8%, 2000 249,997 152
275 M Xerox Corp., 7.15%, 2004 279,741 171
- ----------------------------------------------------------------------------------------------------------------
529,738 323
- ----------------------------------------------------------------------------------------------------------------
Telephone--7.9%
350 M MCI Communications Corp., 7 1/2%, 2004 365,547 223
250 M MFS Communications Co., Inc., 0%-8 7/8%, 2006 183,750 112
250 M New Jersey Bell Telephone Co., 7 3/8%, 2012 250,521 153
300 M New York Telephone Co., 7 1/4%, 2024 286,875 175
200 M Pacific Bell Telephone Co., 7%, 2004 202,423 124
- ----------------------------------------------------------------------------------------------------------------
1,289,116 787
- ----------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $13,894,532) 13,950,816 8,512
- ----------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--9.3%
300 M Federal Home Loan Mortgage Corp., 7.88%, 2004 301,016 184
600 M United States Treasury Note, 6 3/8%, 2002 604,125 368
600 M United States Treasury Note, 7%, 2006 623,813 381
- ----------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $1,549,313) 1,528,954 933
- ----------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.1%
500 M Ford Motor Credit Co., 6.20%, 1/9/97 (cost $499,311) 499,311 305
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $15,943,156) 97.5% 15,979,081 9,750
Other Assets, Less Liabilities 2.5 410,495 250
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $16,389,576 $10,000
================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON OBLIGATIONS--57.8%
Agency For International Development-Israel ("AID"):
$ 570 M 2/15/2007 $ 291,720 $ 199
119 M 3/15/2007 60,546 41
1,513 M 8/15/2007 747,593 510
181 M 10/1/2007 88,328 60
750 M 11/15/2007 364,154 249
980 M 2/15/2008 466,845 319
493 M Federal Judiciary Office Building ("JOBS"), 2/15/2007 247,876 169
Federal National Mortgage Association:
215 M 2/1/2008 101,189 69
1,030 M 8/1/2008 467,170 319
4,070 M Government Trust Certificate, 11/15/2007 1,976,144 1,349
586 M International Bank for Reconstruction & Development, 8/15/2007 283,666 194
4,300 M Resolution Funding Corporation, 10/15/2007 2,111,309 1,442
2,600 M Tennessee Valley Authority, 11/1/2007 1,255,510 857
- ----------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon Obligations
(cost $8,447,776) 8,462,050 5,777
- ----------------------------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--40.1%
200 M Treasury Investors Growth Receipts ("TIGERS"), 11/15/2007 98,860 67
11,700 M U.S. Treasury Strips, 11/15/2007 5,783,287 3,949
- ----------------------------------------------------------------------------------------------------------------
Total Value of U.S. Treasury Zero Coupon Obligations
(cost $5,837,012) 5,882,147 4,016
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $14,284,788) 97.9% 14,344,197 9,793
Other Assets, Less Liabilities 2.1 302,463 207
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $14,646,660 $10,000
================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON OBLIGATIONS--74.2%
$ 603 M Agency For International Development-Israel ("AID"), 8/15/2010 $ 239,369 $ 1,091
400 M Federal National Mortgage Association, 2/1/2011 150,003 683
950 M Government Trust Certificate, 11/15/2010 370,331 1,687
1,250 M Resolution Funding Corporation, 1/15/2011 484,161 2,206
1,000 M Tennessee Valley Authority, 11/1/2010 385,829 1,758
- ----------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon Obligations
(cost $1,560,196) 1,629,693 7,425
- ----------------------------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--22.8%
1,250 M U.S. Treasury Strips, 11/15/2010 (cost $477,234) 499,186 2,275
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $2,037,430) 97.0% 2,128,879 9,700
Other Assets, Less Liabilities 3.0 65,896 300
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $2,194,775 $10,000
================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE UTILITIES INCOME FUND
December 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--96.5%
Electric Power--41.2%
10,000 Allegheny Power Systems, Inc. $ 303,750 $ 126
8,900 American Electric Power Company 366,012 152
6,700 Baltimore Gas & Electric Company 179,225 74
6,200 Boston Edison Company 166,625 69
11,600 Carolina Power & Light Company 423,400 176
9,700 Central & South West Corporation 248,562 103
14,000 CINergy Corporation 467,250 194
7,700 CMS Energy Corporation 258,913 107
4,300 Consolidated Edison Company of New York, Inc. 125,775 52
12,200 Dominion Resources, Inc. 469,700 195
10,500 DPL, Inc. 257,250 107
11,550 DQE, Inc. 334,950 139
6,200 DTE Energy Company 200,725 83
9,300 Duke Power Company 430,125 178
10,000 Edison International 198,750 82
1,900 Empresa Nacional De Electricidad S.A. (ADR) 133,000 55
10,500 FPL Group, Inc. 483,000 200
4,500 GPU, Inc. 151,312 63
7,800 Houston Industries, Inc. 176,475 73
7,700 Illinova Corporation 211,750 88
4,000 Kansas City Power & Light Company 114,000 47
9,300 LG&E Energy Corporation 227,850 95
10,200 NIPSCO Industries, Inc. 404,175 168
7,300 OGE Energy Corporation 304,775 126
14,000 PacifiCorp 287,000 119
4,800 Peco Energy Company 121,200 50
6,200 PG&E Corporation 130,200 54
9,800 Pinnacle West Capital Corporation 311,150 129
10,400 Public Service Company of Colorado 404,300 168
8,000 Public Service Company of New Mexico 157,000 65
10,000 Scana Corporation 267,500 111
12,800 Sierra Pacific Resources 368,000 153
9,300 TECO Energy, Inc. 224,362 93
11,300 Texas Utilities Company 460,475 191
4,500 TNP Enterprises, Inc 123,187 51
6,300 UtiliCorp United, Inc. 170,100 71
10,000 Wisconsin Energy Corporation 268,750 112
- ----------------------------------------------------------------------------------------------------------------
9,930,573 4,119
- ----------------------------------------------------------------------------------------------------------------
Energy--2.9%
1,200 Amoco Corporation 96,600 40
1,000 Anadarko Petroleum Corporation 64,750 27
1,500 Louisiana Land and Exploration Company 80,437 33
3,500 MAPCO, Inc. 119,000 49
800 Mobil Corporation 97,800 41
2,500 Noble Affiliates, Inc. 119,687 50
2,500 Pogo Producing Company 118,125 49
- ----------------------------------------------------------------------------------------------------------------
696,399 289
- ----------------------------------------------------------------------------------------------------------------
Natural Gas--35.1%
9,000 AGL Resources, Inc. 190,125 79
5,000 Brooklyn Union Gas Company 150,625 62
6,000 *Calpine Corporation 120,000 50
5,000 CMS Energy Corporation--Class "G" 91,875 38
10,000 Coastal Corporation 488,750 203
7,600 Columbia Gas System, Inc. 483,550 201
7,800 Consolidated Natural Gas Company 430,950 179
2,100 Eastern Enterprises 74,288 31
10,000 El Paso Electric Company 65,000 27
8,100 El Paso Natural Gas Company 409,050 170
8,200 Enron Corporation 353,625 147
6,000 Enron Global Power & Pipelines, L.L.C. 162,000 67
7,000 Equitable Resources, Inc. 208,250 86
6,000 KN Energy, Inc. 235,500 98
9,700 MCN Corporation 280,087 116
7,900 National Fuel Gas Company 325,875 135
5,000 New Jersey Resources Corporation 146,250 61
4,800 NGC Corporation 111,600 46
7,700 NICOR, Inc. 275,275 114
5,000 NUI Corporation 113,125 47
5,400 Oneok, Inc. 162,000 67
8,600 Pacific Enterprises 261,225 108
8,300 PanEnergy Corporation 373,500 155
5,000 Piedmont Natural Gas Company, Inc. 116,875 49
8,600 Questar Corporation 316,050 131
2,100 Seagull Energy Corporation 46,200 19
8,700 Sonat, Inc. 448,050 186
7,900 Southwest Gas Corporation 152,075 63
11,250 *Tejas Gas Corporation 535,781 222
4,000 TransCanada Pipelines Limited 70,000 29
6,800 UGI Corporation 152,150 63
7,800 Washington Energy Company 160,875 67
6,000 Washington Gas & Light Company 135,750 56
7,500 Western Gas Resources, Inc. 144,375 60
5,000 WICOR, Inc. 179,375 74
12,750 Williams Companies, Inc. 478,125 198
- ----------------------------------------------------------------------------------------------------------------
8,448,206 3,504
- ----------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--1.3%
1,200 Duke Realty Investments, Inc. 46,200 19
1,100 Equity Residential Properties Trust 45,375 19
3,000 Meditrust Corporation 120,000 50
3,200 Simon DeBartolo Group, Inc. 99,200 41
- ----------------------------------------------------------------------------------------------------------------
310,775 129
- ----------------------------------------------------------------------------------------------------------------
Telecommunications--1.1%
5,000 Ericsson (L.M.) Telephone Co.--Class "B" (ADR) 150,938 63
4,000 *Teleport Communications Group, Inc.--Class "A" 122,000 51
- ----------------------------------------------------------------------------------------------------------------
272,938 114
- ----------------------------------------------------------------------------------------------------------------
Telecommunications/Long Distance--1.5%
3,500 *Intermedia Communications, Inc. 90,125 37
5,000 MCI Communications Corporation 163,438 68
2,900 Sprint Corporation 115,638 48
- ----------------------------------------------------------------------------------------------------------------
369,201 153
- ----------------------------------------------------------------------------------------------------------------
Telephone/Utilities--13.4%
6,000 Ameritech Corporation 363,750 151
1,400 BCE, Inc. 66,850 28
6,100 Bell Atlantic Corporation 394,975 164
7,700 BellSouth Corporation 310,888 129
8,500 Century Telephone Enterprises 262,437 109
9,100 GTE Corporation 414,050 172
3,500 NYNEX Corporation 168,438 70
6,800 SBC Communications, Inc. 351,900 146
7,800 Southern New England Telecommunications Corporation 303,225 126
1,200 Stet Societa' Finanziaria Telefonica S.P.A. 53,250 22
3,500 Telefonica De Argentina S.A. (ADR) 90,563 37
2,900 Telefonica De Espana S.A. (ADR) 200,825 83
2,500 Telefonica De Peru S.A. 47,188 19
6,000 US West Communications Group 193,500 80
- ----------------------------------------------------------------------------------------------------------------
3,221,839 1,336
- ----------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $20,489,239) 23,249,931 9,644
- ----------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.0%
$250 M Texaco, Inc., 5.57%, 1/10/97 (cost $249,652) 249,652 104
- ----------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $20,738,891) 97.5% 23,499,583 9,748
Other Assets, Less Liabilities 2.5 608,395 252
- ----------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,107,978 $10,000
================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
This page intentionally left blank.
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 1996
- --------------------------------------------------------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $ 69,482,851 $ 4,320,329 $ 54,940,085 $ 8,848,640
============ ============ ============ ============
At value (Note 1A) $ 92,419,064 $ 4,320,329 $ 65,652,887 $ 8,905,636
Cash (overdraft) 7,439,221 (38,588) 5,303,013 27,412
Receivables:
Investment securities sold -- -- -- 1,004,901
Trust shares sold 222,069 10,151 138,824 18,786
Interest and dividends 111,621 6,105 40,106 113,816
Other assets 141 644 578 --
------------ ------------ ------------ ------------
Total Assets 100,192,116 4,298,641 71,135,408 10,070,551
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- 170,141 1,017,390
Trust shares redeemed 48,416 -- 16,783 24,188
Accrued advisory fee 61,965 2,036 43,580 4,540
Accrued expenses 3,707 73 5,894 10
------------ ------------ ------------ ------------
Total Liabilities 114,088 2,109 236,398 1,046,128
------------ ------------ ------------ ------------
Net Assets $100,078,028 $ 4,296,532 $ 70,899,010 $ 9,024,423
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $ 71,284,411 $ 4,296,532 $ 56,511,078 $ 9,057,871
Undistributed net investment income 1,133,401 -- 379,055 595,393
Accumulated net realized gain (loss) on
investments and foreign currency transactions 4,724,003 -- 3,296,075 (685,837)
Net unrealized appreciation of investments
and translation of assets in foreign currencies 22,936,213 -- 10,712,802 56,996
------------ ------------ ------------ ------------
Total $100,078,028 $ 4,296,532 $ 70,899,010 $ 9,024,423
============ ============ ============ ============
Shares of beneficial interest outstanding
(Note 2) 5,062,299 4,296,532 2,829,249 885,400
============ ============ ============ ============
Net asset value, offering and redemption
price per share (Net assets divided by
shares outstanding) $19.77 $1.00 $25.06 $10.19
====== ===== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (continued)
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT
GROWTH HIGH YIELD SECURITIES GRADE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $ 62,749,952 $ 45,687,611 $ 50,299,365 $ 15,943,156
============ ============ ============ ============
At value (Note 1A) $ 78,507,593 $ 48,502,030 $ 57,857,640 $ 15,979,081
Cash (overdraft) 83,417 174,842 (5,379) 136,162
Receivables:
Investment securities sold 94,321 -- 206,770 --
Trust shares sold 116,436 67,931 116,358 22,807
Interest and dividends 93,224 784,316 110,402 272,722
Other assets 593 792 132 --
------------ ------------ ------------ ------------
Total Assets 78,895,584 49,529,911 58,285,923 16,410,772
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 26,862 -- 253,589 --
Trust shares redeemed 6,942 15,850 9,451 12,879
Accrued advisory fee 48,910 30,510 36,096 8,222
Accrued expenses 6,560 10,007 32,173 95
------------ ------------ ------------ ------------
Total Liabilities 89,274 56,367 331,309 21,196
------------ ------------ ------------ ------------
Net Assets $ 78,806,310 $ 49,473,544 $ 57,954,614 $ 16,389,576
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $ 56,319,984 $ 44,085,784 $ 44,524,679 $ 15,380,382
Undistributed net investment income 584,778 4,253,066 611,224 1,037,760
Accumulated net realized gain (loss) on
investments and foreign currency transactions 6,143,907 (1,679,725) 5,260,216 (64,491)
Net unrealized appreciation of investments
and translation of assets in foreign currencies 15,757,641 2,814,419 7,558,495 35,925
------------ ------------ ------------ ------------
Total $ 78,806,310 $ 49,473,544 $ 57,954,614 $ 16,389,576
============ ============ ============ ============
Shares of beneficial interest outstanding
(Note 2) 3,208,721 4,145,666 3,371,778 1,443,051
============ ============ ============ ============
Net asset value, offering and redemption
price per share (Net assets divided by
shares outstanding) $24.56 $11.93 $17.19 $11.36
====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (continued)
- ------------------------------------------------------------------------------------------------------------
TARGET TARGET UTILITIES
MATURITY 2007 MATURITY 2010 INCOME
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $ 14,284,788 $ 2,037,430 $ 20,738,891
============ ============ ============
At value (Note 1A) $ 14,344,197 $ 2,128,879 $ 23,499,583
Cash (overdraft) 165,492 66,974 907,106
Receivables:
Investment securities sold -- -- --
Trust shares sold 144,348 -- 123,287
Interest and dividends -- -- 64,333
Other assets -- -- --
------------ ------------ ------------
Total Assets 14,654,037 2,195,853 24,594,309
------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- 466,366
Trust shares redeemed -- -- 8,095
Accrued advisory fee 7,244 1,071 11,839
Accrued expenses 133 7 31
------------ ------------ ------------
Total Liabilities 7,377 1,078 486,331
------------ ------------ ------------
Net Assets $ 14,646,660 $ 2,194,775 $ 24,107,978
============ ============ ============
Net Assets Consist of:
Capital paid in $ 13,958,004 $ 2,053,022 $ 20,142,510
Undistributed net investment income 741,044 50,304 692,026
Accumulated net realized gain (loss) on
investments and foreign currency transactions (111,797) -- 512,750
Net unrealized appreciation of investments
and translation of assets in foreign currencies 59,409 91,449 2,760,692
------------ ------------ ------------
Total $ 14,646,660 $ 2,194,775 $ 24,107,978
============ ============ ============
Shares of beneficial interest outstanding
(Note 2) 1,251,027 196,734 1,917,478
============ ============ ============
Net asset value, offering and redemption
price per share (Net assets divided by
shares outstanding) $11.71 $11.16 $12.57
====== ====== ======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Income:
Interest $ 431,463 $ 214,534 $ 472,783 $ 673,632
Dividends 1,372,005 -- 404,355 --
Consent fees -- -- -- --
-------------- ---------- ------------ ----------
Total income 1,803,468 214,534 877,138 673,632
-------------- ---------- ------------ ----------
Expenses (Notes 1H and 5):
Advisory fee 611,682 29,300 450,910 68,746
Professional fees 18,130 6,559 19,275 5,693
Reports to shareholders 20,386 1,380 8,997 1,543
Custodian fees 22,395 4,654 19,032 5,097
Other expenses 11,505 1,521 12,370 5,357
-------------- ---------- ------------ ----------
Total expenses 684,098 43,414 510,584 86,436
Less: Expenses waived or assumed -- (19,649) -- (29,990)
Custodian fees paid indirectly (15,310) (321) (13,055) (1,437)
-------------- ---------- ------------ ----------
Expenses--net 668,788 23,444 497,529 55,009
-------------- ---------- ------------ ----------
Net investment income 1,134,680 191,090 379,609 618,623
-------------- ---------- ------------ ----------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions (Note 3):
Net realized gain (loss) on investments and
foreign currency transactions 4,724,627 -- 3,299,510 (251,224)
Net unrealized appreciation (depreciation) of
investments and translation of assets in
foreign currencies 10,323,427 -- 3,592,400 (44,522)
-------------- ---------- ------------ ----------
Net gain (loss) from investments and
foreign currency 15,048,054 -- 6,891,910 (295,746)
-------------- ---------- ------------ ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 16,182,734 $ 191,090 $ 7,271,519 $ 322,877
============== ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations (continued)
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT
GROWTH HIGH YIELD SECURITIES GRADE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Income:
Interest $ 104,821 $ 4,267,582 $ 192,254 $ 1,131,727
Dividends 1,015,052 307,013+ 955,558(a) --
Consent fees -- 59,563 -- 2,750
-------------- -------------- -------------- --------------
Total income 1,119,873 4,634,158 1,147,812 1,134,477
-------------- -------------- -------------- --------------
Expenses (Notes 1H and 5):
Advisory fee 475,966 338,303 364,115 120,498
Professional fees 14,718 15,191 13,487 7,764
Reports to shareholders 14,292 12,147 11,238 3,947
Custodian fees 21,777 8,416 140,374 4,259
Other expenses 11,751 10,668 12,126 4,137
-------------- -------------- -------------- --------------
Total expenses 538,504 384,725 541,340 140,605
Less: Expenses waived or assumed -- -- -- (41,175)
Custodian fees paid indirectly (3,579) (6,031) -- (2,912)
-------------- -------------- -------------- --------------
Expenses--net 534,925 378,694 541,340 96,518
-------------- -------------- -------------- --------------
Net investment income 584,948 4,255,464 606,472 1,037,959
-------------- -------------- -------------- --------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions (Note 3):
Net realized gain (loss) on investments and
foreign currency transactions 6,150,722 (443,404) 5,267,040(b) 18,857
Net unrealized appreciation (depreciation) of
investments and translation of assets in
foreign currencies 7,441,191 1,579,035 1,100,316(c) (623,436)
-------------- -------------- -------------- --------------
Net gain (loss) from investments and
foreign currency 13,591,913 1,135,631 6,367,356 (604,579)
-------------- -------------- -------------- --------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 14,176,861 $ 5,391,095 $ 6,973,828 $ 433,380
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations (continued)
- -------------------------------------------------------------------------------------------------------------------
TARGET TARGET UTILITIES
MATURITY 2007 MATURITY 2010* INCOME
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income
Income:
Interest $ 814,888 $ 55,325 $ 44,579
Dividends -- -- 768,282
Consent fees -- -- --
---------------- ---------------- --------------
Total income 814,888 55,325 812,861
---------------- ---------------- --------------
Expenses (Notes 1H and 5):
Advisory fee 91,878 6,268 149,382
Professional fees 3,355 1,020 4,456
Reports to shareholders 2,154 120 4,265
Custodian fees 1,629 213 8,736
Other expenses 1,993 603 4,354
---------------- ---------------- --------------
Total expenses 101,009 8,224 171,193
Less: Expenses waived or assumed (25,848) (2,990) (42,920)
Custodian fees paid indirectly (1,629) (213) (8,736)
---------------- ---------------- --------------
Expenses--net 73,532 5,021 119,537
---------------- ---------------- --------------
Net investment income 741,356 50,304 693,324
---------------- ---------------- --------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions (Note 3):
Net realized gain (loss) on investments and
foreign currency transactions (111,154) -- 634,751
Net unrealized appreciation (depreciation) of
investments and translation of assets in
foreign currencies (665,288) 91,449 694,844
---------------- ---------------- --------------
Net gain (loss) from investments and
foreign currency (776,442) 91,449 1,329,595
---------------- ---------------- --------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ (35,086) $ 141,753 $ 2,022,919
================ ================ ==============
(a) Net of $96,824 foreign taxes withheld
(b) Includes net realized loss of $8,500 on foreign currency transactions
(c) Includes $18 of net unrealized depreciation on translation of assets in foreign currencies
* From April 30, 1996 (commencement of operations) to December 31, 1996
+ See Note 1H
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- ---------------------------------------------------------------------------------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
------------------------------------ ---------------------------------
Year Ended December 31 1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 1,134,680 $ 1,020,536 $ 191,090 $ 220,945
Net realized gain (loss) on investments 4,724,627 1,953,467 -- --
Net unrealized appreciation (depreciation) of
investments 10,323,427 12,258,988 -- --
-------------- --------------- ------------- -------------
Net increase in net assets resulting
from operations 16,182,734 15,232,991 191,090 220,945
-------------- --------------- ------------- -------------
Distributions to Shareholders:
Net investment income (1,020,182) (569,704) (191,090) (220,945)
Net realized gain on investments (1,953,044) (2,922,430) -- --
-------------- --------------- ------------- -------------
Total distributions (2,973,226) (3,492,134) (191,090) (220,945)
-------------- --------------- ------------- -------------
Trust Share Transactions (a)
Proceeds from shares sold 19,440,335 12,100,755 3,660,848 1,802,472
Value of distributions reinvested 2,973,227 3,492,134 191,090 220,945
Cost of shares redeemed (2,444,786) (1,858,303) (3,716,970) (1,790,408)
-------------- --------------- ------------- -------------
Net increase (decrease) from trust
share transactions 19,968,776 13,734,586 134,968 233,009
-------------- --------------- ------------- -------------
Net increase (decrease) in net assets 33,178,284 25,475,443 134,968 233,009
Net Assets
Beginning of year 66,899,744 41,424,301 4,161,564 3,928,555
-------------- --------------- ------------- -------------
End of year+ $ 100,078,028 $ 66,899,744 $ 4,296,532 $ 4,161,564
============== =============== ============= =============
+Includes undistributed net investment income of $ 1,133,401 $ 1,018,903 $ -- $ --
============== =============== ============= =============
(a) Trust Shares Issued and Redeemed
Sold 1,083,789 791,231 3,660,848 1,802,472
Issued for distributions reinvested 175,515 261,975 191,090 220,945
Redeemed (137,254) (125,241) (3,716,970) (1,790,408)
-------------- --------------- ------------- -------------
Net increase (decrease) in shares outstanding 1,122,050 927,965 134,968 233,009
============== =============== ============= =============
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
- ----------------------------------------------------------------------------------------------------------------------------------
DISCOVERY GOVERNMENT
----------------------------------- -----------------------------------
Year Ended December 31 1996 1995 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 379,609 $ 254,090 $ 618,623 $ 602,672
Net realized gain (loss) on investments 3,299,510 2,003,359 (251,224) 322,099
Net unrealized appreciation (depreciation) of
investments 3,592,400 6,147,258 (44,522) 344,995
-------------- -------------- -------------- --------------
Net increase in net assets resulting
from operations 7,271,519 8,404,707 322,877 1,269,766
-------------- -------------- -------------- --------------
Distributions to Shareholders:
Net investment income (254,154) (93,692) (593,694) (507,584)
Net realized gain on investments (2,006,247) (1,992,932) -- --
-------------- -------------- -------------- --------------
Total distributions (2,260,401) (2,086,624) (593,694) (507,584)
-------------- -------------- -------------- --------------
Trust Share Transactions (a)
Proceeds from shares sold 14,650,798 13,530,189 1,075,016 1,678,903
Value of distributions reinvested 2,260,401 2,086,624 593,694 507,584
Cost of shares redeemed (1,923,260) (1,278,557) (1,873,657) (1,326,445)
-------------- -------------- -------------- --------------
Net increase (decrease) from trust
share transactions 14,987,939 14,338,256 (204,947) 860,042
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets 19,999,057 20,656,339 (475,764) 1,622,224
Net Assets
Beginning of year 50,899,953 30,243,614 9,500,187 7,877,963
-------------- -------------- -------------- --------------
End of year+ $ 70,899,010 $ 50,899,953 $ 9,024,423 $ 9,500,187
============== ============== ============== ==============
+Includes undistributed net investment income of $ 379,055 $ 253,600 $ 595,393 $ 601,947
============== ============== ============== ==============
(a) Trust Shares Issued and Redeemed
Sold 623,364 617,324 108,024 170,551
Issued for distributions reinvested 100,062 109,304 60,767 53,998
Redeemed (81,422) (61,853) (186,705) (133,164)
-------------- -------------- -------------- --------------
Net increase (decrease) in shares outstanding 642,004 664,775 (17,914) 91,385
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
- --------------------------------------------------------------------------------------------------
GROWTH
------------------------------------------
Year Ended December 31 1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 584,948 $ 459,596
Net realized gain (loss) on investments 6,150,722 1,548,981
Net unrealized appreciation (depreciation) of
investments 7,441,191 6,983,358
---------------- ----------------
Net increase in net assets resulting
from operations 14,176,861 8,991,935
---------------- ----------------
Distributions to Shareholders:
Net investment income (459,017) (175,754)
Net realized gain on investments (1,505,267) (591,906)
---------------- ----------------
Total distributions (1,964,284) (767,660)
---------------- ----------------
Trust Share Transactions (a)
Proceeds from shares sold 14,976,944 10,824,201
Value of distributions reinvested 1,964,284 767,659
Cost of shares redeemed (1,518,718) (1,442,104)
---------------- ----------------
Net increase (decrease) from trust
share transactions 15,422,510 10,149,756
---------------- ----------------
Net increase (decrease) in net assets 27,635,087 18,374,031
Net Assets
Beginning of year 51,171,223 32,797,192
---------------- ----------------
End of year+ $ 78,806,310 $ 51,171,223
================ ================
+Includes undistributed net investment income of $ 584,778 $ 458,847
================ ================
(a) Trust Shares Issued and Redeemed
Sold 683,046 572,178
Issued for distributions reinvested 95,585 45,613
Redeemed (69,590) (78,592)
---------------- ----------------
Net increase (decrease) in shares outstanding 709,041 539,199
================ ================
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
-----------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL
HIGH YIELD SECURITIES
------------------------------- -------------------------------
Year Ended December 31 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 4,255,464 $ 3,666,384 $ 606,472 $ 495,853
Net realized gain (loss) on investments and
foreign currency transactions (443,404) (147,796) 5,267,040 1,334,830
Net unrealized appreciation (depreciation) of
investments and translation of assets in
foreign currencies 1,579,035 3,097,609 1,100,316 4,263,821
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations. 5,391,095 6,616,197 6,973,828 6,094,504
------------ ------------ ------------ ------------
Distributions to Shareholders:
Net investment income (3,666,317) (2,973,759) (497,039) (284,370)
Net realized gain on investments -- -- (1,333,455) (601,917)
------------ ------------ ------------ ------------
Total distributions (3,666,317) (2,973,759) (1,830,494) (886,287)
------------ ------------ ------------ ------------
Trust Share Transactions (a)
Proceeds from shares sold 5,773,021 5,830,065 11,599,460 6,301,362
Value of distributions reinvested 3,666,317 2,973,759 1,830,494 886,288
Cost of shares redeemed (3,584,533) (2,837,047) (1,630,236) (2,692,802)
------------ ------------ ------------ ------------
Net increase from trust
share transactions 5,854,805 5,966,777 11,799,718 4,494,848
------------ ------------ ------------ ------------
Net increase in net assets 7,579,583 9,609,215 16,943,052 9,703,065
Net Assets
Beginning of period 41,893,961 32,284,746 41,011,562 31,308,497
------------ ------------ ------------ ------------
End of period+ $ 49,473,544 $ 41,893,961 $ 57,954,614 $ 41,011,562
============ ============ ============ ============
+Includes undistributed net investment income of $ 4,253,066 $ 3,663,919 $ 611,224 $ 493,877
============ ============ ============ ============
(a) Trust Shares Issued and Redeemed
Sold 508,596 537,054 722,385 439,419
Issued for distributions reinvested 334,213 296,191 118,709 69,350
Redeemed (317,951) (263,126) (101,516) (194,386)
------------ ------------ ------------ ------------
Net increase in shares outstanding 524,858 570,119 739,578 314,383
============ ============ ============ ============
* Commencement of operations
** See Note 6
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
-------------------------------------------------------------------------------------------------------------------------------
TARGET
INVESTMENT GRADE MATURITY 2007
------------------------------- -----------------------------------
4/25/95* to
Year Ended December 31 1996 1995 1996 12/31/95
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 1,037,959 $ 936,270 $ 741,356 $ 209,332
Net realized gain (loss) on investments and
foreign currency transactions 18,857 (35,809) (111,154) 42,147
Net unrealized appreciation (depreciation) of
investments and translation of assets in
foreign currencies (623,436) 1,528,072 (665,288) 724,697
------------ ------------ ------------ ----------------
Net increase (decrease) in net assets resulting
from operations. 433,380 2,428,533 (35,086) 976,176
------------ ------------ ------------ ----------------
Distributions to Shareholders:
Net investment income (936,444) (605,201) (209,644) --
Net realized gain on investments -- -- (42,790) --
------------ ------------ ------------ ----------------
Total distributions (936,444) (605,201) (252,434) --
------------ ------------ ------------ ----------------
Trust Share Transactions (a)
Proceeds from shares sold 2,104,756 3,462,505 5,404,920 8,383,571
Value of distributions reinvested 936,445 605,201 252,433 --
Cost of shares redeemed (2,410,432) (1,231,643) (582,920) --
------------ ------------ ------------ ----------------
Net increase from trust
share transactions 630,769 2,836,063 5,074,433 8,383,571
------------ ------------ ------------ ----------------
Net increase in net assets 127,705 4,659,395 4,786,913 9,359,747
Net Assets
Beginning of period 16,261,871 11,602,476 9,859,747 500,000**
------------ ------------ ------------ ----------------
End of period+ $ 16,389,576 $ 16,261,871 $ 14,646,660 $ 9,859,747
============ ============ ============ ================
+Includes undistributed net investment income of $ 1,037,760 $ 936,245 $ 741,044 $ 209,332
============ ============ ============ ================
(a) Trust Shares Issued and Redeemed
Sold 189,792 315,041 477,864 754,138
Issued for distributions reinvested 85,991 59,159 22,399 --
Redeemed (218,491) (113,482) (53,374) --
------------ ------------ ------------ ----------------
Net increase in shares outstanding 57,292 260,718 446,889 754,138
============ ============ ============ ================
* Commencement of operations
** See Note 6
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------------------
TARGET UTILITIES
MATURITY 2010 INCOME
---------------------------------- ----------------
4/30/96* to
Year Ended December 31 12/31/96 1996 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income $ 50,304 $ 693,324 $ 381,257
Net realized gain (loss) on investments -- 634,751 (21,926)
Net unrealized appreciation of investments 91,449 694,844 2,200,558
---------- ---------------- ----------------
Net increase in net assets resulting
from operations. 141,753 2,022,919 2,559,889
---------- ---------------- ----------------
Distributions to Shareholders:
Net investment income -- (382,098) (110,536)
Net realized gain on investments -- -- --
---------- ---------------- ----------------
Total distributions -- (382,098) (110,536)
---------- ---------------- ----------------
Trust Share Transactions (a)
Proceeds from shares sold 1,653,022 8,211,784 7,708,137
Value of distributions reinvested -- 382,099 110,535
Cost of shares redeemed -- (825,061) (289,717)
---------- ---------------- ----------------
Net increase from trust
share transactions 1,653,022 7,768,822 7,528,955
---------- ---------------- ----------------
Net increase in net assets 1,794,775 9,409,643 9,978,308
Net Assets
Beginning of period 400,000** 14,698,335 4,720,027
---------- ---------------- ----------------
End of period+ $2,194,775 $ 24,107,978 $ 14,698,335
========== ================ ================
+Includes undistributed net investment income of $ 50,304 $ 692,026 $ 380,800
========== ================ ================
(a) Trust Shares Issued and Redeemed
Sold 156,734 701,601 755,204
Issued for distributions reinvested -- 33,459 11,709
Redeemed -- (69,947) (28,182)
---------- ---------------- ----------------
Net increase in shares outstanding 156,734 665,113 738,731
========== ================ ================
* Commencement of operations
** 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, Target
Maturity 2010 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 and Target Maturity 2010 Fund seek to provide
a predictable compounded investment return for investors who hold their
Fund shares until the Fund's 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 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 Government, High
Yield, International Securities, Investment Grade, Target Maturity 2007
and Target Maturity 2010 Funds 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 are valued at cost plus
amortization of discount or accretion of premium.
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 them from all, or substantially all,
federal income taxes. At December 31, 1996, capital loss carryovers were
as follows:
<TABLE>
<CAPTION>
Year Capital Loss Carryovers Expire
---------------------------------------------------------
Fund Total 1998 1999 2002 2003 2004
- ------ ---------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
GOVERNMENT $ 685,837 $ -- $ -- $457,817 $ -- $228,020
HIGH YIELD 1,679,725 625,685 355,926 106,914 147,796 443,404
INVESTMENT GRADE 64,491 -- -- 28,682 35,809 --
TARGET MATURITY 2007 90,462 -- -- -- -- 90,462
</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 on accrued dividends and related
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 Life
Series Fund 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. The agreements provide that the Fund will
receive, as collateral, securities with a market value which will at all
times be at least equal to 100% of the amount invested by the Fund.
G. Use of Estimates--The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
H. 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. Shares of stock received in lieu of cash
dividends on certain preferred stock holdings are recognized as dividend
income and recorded at the market value of the shares received. During
the year ended December 31, 1996, the High Yield Fund recognized
$117,638 of dividend income from these taxable "pay in kind"
distributions. Interest income and estimated expenses are accrued daily.
The Bank of New York, Custodian for all the Funds, except the
International Securities Fund, has provided credits in the amount of
$53,223 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,
1996, 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 $47,205,005 $33,559,371 $ -- $ --
DISCOVERY 65,485,591 50,371,740 -- --
GOVERNMENT -- -- 17,285,509 17,957,682
GROWTH 42,978,299 30,027,889 -- --
HIGH YIELD 18,968,350 14,512,509 -- --
INTERNATIONAL SECURITIES 40,067,862 30,022,082 -- --
INVESTMENT GRADE 2,944,619 1,488,230 1,249,313 1,266,745
TARGET MATURITY 2007 -- -- 6,950,558 1,601,002
TARGET MATURITY 2010 -- -- 2,037,430 --
UTILITIES INCOME 16,701,796 8,483,188 -- --
</TABLE>
<TABLE>
<CAPTION>
At December 31, 1996, 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 $69,483,871 $23,744,282 $ 809,089 $22,935,193
CASH MANAGEMENT 4,320,329 -- -- --
DISCOVERY 54,992,332 14,422,160 3,761,605 10,660,555
GOVERNMENT 8,848,640 59,801 2,805 56,996
GROWTH 62,761,124 17,056,146 1,309,677 15,746,469
HIGH YIELD 45,687,611 3,027,272 212,853 2,814,419
INTERNATIONAL SECURITIES 50,299,365 9,533,584 1,975,309 7,558,275
INVESTMENT GRADE 15,943,156 230,180 194,255 35,925
TARGET MATURITY 2007 14,306,124 120,036 81,963 38,073
TARGET MATURITY 2010 2,037,430 91,449 -- 91,449
UTILITIES INCOME 20,738,891 2,895,123 134,431 2,760,692
</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, 1996, the Blue Chip, Discovery, High Yield and
International Securities Funds held one, two, seven and two 144A
securities, respectively, with aggregate values of $435,821, $763,766,
$3,453,675 and $421,943, respectively. These securities represent .4%,
1.1%, 7.0% and .7%, of the respective Fund's 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, 1996, total advisory
fees were $2,707,048 of which $93,192 was waived by the investment
adviser. In addition, $69,380 of expenses were assumed by FIMCO.
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 Funds.
6. Commencement of Operations--The Target Maturity 2007 Fund and the
Target Maturity 2010 Fund commenced operations in April 1995 and April
1996, respectively, following the sale of 50,000 and 40,000 shares of
beneficial interest to First Investors Life Insurance Company for
$500,000 and $400,000, respectively.
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.
The Utilities Income Fund invests in securities issued by companies
primarily engaged in the public utilities industry. As a result, there
are certain credit risks which may subject the Fund more significantly
to economic changes occurring in the public utilities industry.
This page intentionally left blank.
<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.
- ---------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
--------------------------------------------------------------------------------------------------------
Income From Investment Operations Less Distributions from
------------------------------------------- -----------------------
Net Asset Net Realized
Value and Unrealized
---------- Net Gain (Loss) Total from Net Net
Beginning Investment on Investment Investment Realized Total
of Period Income Investments Operations Income Gains Distributions
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP
3/8/90* to 12/31/90 $10.00 $ .07 $ (.02) $ .05 $ -- $ -- $ --
1991 10.05 .12 2.50 2.62 .05 -- .05
1992 12.62 .16 .67 .83 .21 -- .21
1993 13.24 .15 .97 1.12 .15 -- .15
1994 14.21 .18 (.39) (.21) .08 .17 .25
1995 13.75 .26 4.11 4.37 .19 .95 1.14
1996 16.98 .22 3.31 3.53 .25 .49 .74
CASH MANAGEMENT**
1988 1.00 .048 -- .048 .048 -- .048
1989 1.00 .075 -- .075 .075 -- .075
1990 1.00 .072 -- .072 .072 -- .072
1991 1.00 .054 -- .054 .054 -- .054
1992 1.00 .029 -- .029 .029 -- .029
1993 1.00 .027 -- .027 .027 -- .027
1994 1.00 .037 -- .037 .037 -- .037
1995 1.00 .054 -- .054 .054 -- .054
1996 1.00 .049 -- .049 .049 -- .049
DISCOVERY
1988 10.02 .26 .10 .36 -- -- --
1989 10.38 .19 2.19 2.38 .27 .09 .36
1990 12.40 .14 (.78) (.64) .15 .90 1.05
1991 10.71 .07 5.42 5.49 .18 -- .18
1992 16.02 -- 2.51 2.51 .03 .15 .18
1993 18.35 -- 3.92 3.92 -- .91 .91
1994 21.36 .06 (.62) (.56) -- .94 .94
1995 19.86 .11 4.62 4.73 .06 1.26 1.32
1996 23.27 .13 2.66 2.79 .11 .89 1.00
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------------
PER SHARE DATA R A T I O S / S U P P L E M E N T A L D A T A
-------------- -------------------------------------------------------------
Ratio to Average Net Assets+
----------------------------
Net Asset
Value Net
------ Total Net Assets Investment
End of Return++ End of Period Expenses Income
Period (%) (in thousands) (%) (%)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BLUE CHIP
3/8/90* to 12/31/90 $10.05 .61(a) $ 3,656 -- 2.95(a)
1991 12.62 26.17 13,142 1.00 1.88
1992 13.24 6.67 23,765 .79 1.66
1993 14.21 8.51 34,030 .88 1.27
1994 13.75 (1.45) 41,424 .88 1.49
1995 16.98 34.00 66,900 .86 1.91
1996 19.77 21.52 100,078 .84 1.39
CASH MANAGEMENT**
1988 1.00 4.94 33 -- 4.99
1989 1.00 7.79 2,210 -- 7.84
1990 1.00 7.49 8,203 .39 6.90
1991 1.00 5.71 9,719 .57 5.39
1992 1.00 3.02 8,341 .79 2.99
1993 1.00 2.70 4,243 .60 2.67
1994 1.00 3.77 3,929 .60 3.69
1995 1.00 5.51 4,162 .60 5.36
1996 1.00 5.00 4,297 .60 4.89
DISCOVERY
1988 10.38 3.59 125 -- 3.80
1989 12.40 23.62 283 -- 2.43
1990 10.71 (5.47) 960 -- 2.97
1991 16.02 51.73 4,661 .70 .48
1992 18.35 15.74 10,527 .91 .02
1993 21.36 22.20 21,221 .87 (.03)
1994 19.86 (2.53) 30,244 .88 .36
1995 23.27 25.23 50,900 .87 .63
1996 25.06 12.48 70,899 .85 .63
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
- -------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
-------------------------------------------------------------
Ratio to Average Net Assets Before
Expenses Waived or Assumed
----------------------------------
Net Portfolio
Investment Turnover Average
Expenses Income Rate Commission
(%) (%) (%) Rate+++
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BLUE CHIP
3/8/90* to 12/31/90 1.92(a) 1.03(a) 15 $ N/A
1991 1.55 1.34 21 N/A
1992 .86 1.60 40 N/A
1993 N/A N/A 37 N/A
1994 N/A N/A 82 N/A
1995 N/A N/A 26 N/A
1996 N/A N/A 45 .0692
CASH MANAGEMENT**
1988 7.68 (2.69) N/A N/A
1989 1.35 6.49 N/A N/A
1990 1.15 6.15 N/A N/A
1991 .93 5.03 N/A N/A
1992 .98 2.81 N/A N/A
1993 1.05 2.22 N/A N/A
1994 1.04 3.25 N/A N/A
1995 1.10 4.87 N/A N/A
1996 1.11 4.38 N/A N/A
DISCOVERY
1988 3.10 .70 158 N/A
1989 4.78 (2.35) 231 N/A
1990 2.68 .28 104 N/A
1991 1.49 (.31) 93 N/A
1992 1.05 (.12) 91 N/A
1993 N/A N/A 69 N/A
1994 N/A N/A 53 N/A
1995 N/A N/A 78 N/A
1996 N/A N/A 98 .0689
* 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, 1996 (Note 5).
++ The effect of fees and charges incurred at the separate account level are not reflected in
these performance figures.
+++ Average commission rate (per share of security) as required by amended disclosure
requirements effective for fiscal years beginning on or after September 1, 1995.
(a) Annualized
</TABLE>
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
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.
- --------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
------------------------------------------------------------------------------------------------------
Income from Investment Operations Less Distributions from
------------------------------------------- -----------------------
Net Asset Net
Value Realized and
----- Net Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income Investments Operations Income Gains Distributions
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT
1/7/92* to 12/31/92 $10.00 $.47 $ .51 $ .98 $ .33 $ -- $ .33
1993 10.65 .64 .02 .66 .70 .19 .89
1994 10.42 .79 (1.21) (.42) .25 .05 .30
1995 9.70 .66 .78 1.44 .62 -- .62
1996 10.52 .68 (.33) .35 .68 -- .68
GROWTH
1988 10.02 .26 .51 .77 -- -- --
1989 10.79 .02 2.51 2.53 .18 .12 .30
1990 13.02 .16 (.55) (.39) .06 -- .06
1991 12.57 .17 4.15 4.32 .18 -- .18
1992 16.71 .08 1.41 1.49 .18 1.38 1.56
1993 16.64 .07 .93 1.00 .09 .10 .19
1994 17.45 .09 (.60) (.51) -- .21 .21
1995 16.73 .18 3.94 4.12 .09 .29 .38
1996 20.47 .18 4.68 4.86 .18 .59 .77
HIGH YIELD
1988 10.00 .74 .82 1.56 -- -- --
1989 11.56 .74 (.92) (.18) .56 .11 .67
1990 10.71 1.08 (1.79) (.71) .83 -- .83
1991 9.17 1.16 1.66 2.82 1.18 -- 1.18
1992 10.81 1.11 .21 1.32 1.69 -- 1.69
1993 10.44 .96 .88 1.84 1.12 -- 1.12
1994 11.16 .87 (1.14) (.27) .31 -- .31
1995 10.58 1.00 .95 1.95 .96 -- .96
1996 11.57 1.02 .35 1.37 1.01 -- 1.01
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA R A T I O S / S U P P L E M E N T A L D A T A
-------------- -----------------------------------------------------------------------------------------------
Ratio to Average
Net Assets
Ratio to Average Before Expenses
Net Assets+ Waived or Assumed
Net Asset -------------------- --------------------
Value Net Net Portfolio
--------- Total Net Assets Investment Investment Turnover Average
End of Return** End of Period Expenses Income Expenses Income Rate Commission
Period (%) (in thousands) (%) (%) (%) (%) (%) Rate+++
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT
1/7/92* to 12/31/92 $10.65 9.95(a) $ 5,064 .03(a) 6.64(a) .89(a) 5.79(a) 301 $ N/A
1993 10.42 6.35 8,234 .35 6.60 .84 6.11 525 N/A
1994 9.70 (4.10) 7,878 .35 6.74 .90 6.19 457 N/A
1995 10.52 15.63 9,500 .40 6.79 .93 6.26 198 N/A
1996 10.19 3.59 9,024 .60 6.75 .94 6.41 199 N/A
GROWTH
1988 10.79 7.68 38 -- 3.20 8.70 (5.50) 31 N/A
1989 13.02 24.00 570 -- 2.91 5.21 (2.30) 24 N/A
1990 12.57 (2.99) 2,366 -- 3.03 1.64 1.40 28 N/A
1991 16.71 34.68 7,743 .69 1.21 1.34 .55 148 N/A
1992 16.64 9.78 16,385 .76 .75 1.20 .30 45 N/A
1993 17.45 6.00 25,658 .91 .43 N/A N/A 51 N/A
1994 16.73 (2.87) 32,797 .90 .60 N/A N/A 40 N/A
1995 20.47 25.12 51,171 .88 1.11 N/A N/A 64 N/A
1996 24.56 24.45 78,806 .85 .92 N/A N/A 49 .0485
HIGH YIELD
1988 11.56 15.60 4,565 -- 13.22 1.32 11.90 46 N/A
1989 10.71 (1.76) 14,354 -- 12.05 .88 11.17 22 N/A
1990 9.17 (5.77) 18,331 -- 13.21 .91 12.30 35 N/A
1991 10.81 33.96 23,634 .53 11.95 .89 11.60 40 N/A
1992 10.44 13.15 24,540 .91 10.48 .96 10.43 84 N/A
1993 11.16 18.16 30,593 .91 9.49 N/A N/A 96 N/A
1994 10.58 (1.56) 32,285 .88 9.43 N/A N/A 50 N/A
1995 11.57 19.82 41,894 .87 9.86 N/A N/A 57 N/A
1996 11.93 12.56 49,474 .85 9.43 N/A N/A 34 N/A
* Commencement of operations
+ Some or all expenses have been waived or assumed by the investment adviser from commencement of operations through
December 31, 1996 (Note 5).
++ The effect of fees and charges incurred at the separate account level are not reflected in these performance figures.
+++ Average commission rate (per share of security) as required by amended disclosure requirements effective for fiscal
years beginning on or after September 1, 1995.
(a) Annualized
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
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.
- ------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
--------------------------------------------------------------------------------------------------
Income From Investment Operations Less Distributions from
------------------------------------- -----------------------
Net Asset Net Realized
Value and Unrealized
--------- Net Gain (Loss) Total from Net Net
Beginning Investment on Investment Investment Realized Total
of Period Income Investments Operations Income Gains Distributions
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL SECURITIES
4/16/90* to 12/31/90 $10.00 $.03 $ .34 $ .37 $ -- $ -- $ --
1991 10.37 .09 1.49 1.58 .03 .05 .08
1992 11.87 .15 (.28) (.13) .15 .22 .37
1993 11.37 .10 2.41 2.51 .14 -- .14
1994 13.74 .14 (.32) (.18) .05 -- .05
1995 13.51 .19 2.25 2.44 .12 .25 .37
1996 15.58 .18 2.12 2.30 .19 .50 .69
INVESTMENT GRADE
1/7/92* to 12/31/92 10.00 .43 .44 .87 .34 -- .34
1993 10.53 .65 .49 1.14 .71 .01 .72
1994 10.95 .67 (1.06) (.39) .16 .09 .25
1995 10.31 .67 1.28 1.95 .53 -- .53
1996 11.73 .72 (.42) .30 .67 -- .67
TARGET MATURITY 2007
4/26/95* to 12/31/95 10.00 .26 2.00 2.26 -- -- --
1996 12.26 .56 (.83) (.27) .23 .05 .28
TARGET MATURITY 2010
4/30/96* to 12/31/96 10.00 .26 .90 1.16 -- -- --
UTILITIES INCOME
11/15/93* to 12/31/93 10.00 .01 (.07) (.06) -- -- --
1994 9.94 .24 (.96) (.72) .03 -- .03
1995 9.19 .28 2.46 2.74 .19 -- .19
1996 11.74 .32 .78 1.10 .27 -- .27
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
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 R A T I O S / S U P P L E M E N T A L D A T A
-------------- -----------------------------------------------------------------------------------------------
Ratio to Average
Net Assets
Ratio to Average Before Expenses
Net Assets+ Waived or Assumed
Net Asset ------------------- ---------------------
Value Net Net Portfolio
--------- Total Net Assets Investment Investment Turnover Average
End of Return++ End of Period Expenses Income Expenses Income Rate Commission
Period (%) (in thousands) (%) (%) (%) (%) (%) Rate+++
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL SECURITIES
4/16/90* to 12/31/90 $10.37 5.21(a) $3,946 -- .99(a) 3.43(a) (2.43)(a) 29 $N/A
1991 11.87 15.24 8,653 1.70 .75 2.27 .18 70 N/A
1992 11.37 (1.13) 12,246 1.03 1.55 1.38 1.20 36 N/A
1993 13.74 22.17 21,009 1.14 .97 N/A N/A 37 N/A
1994 13.51 (1.29) 31,308 1.03 1.22 N/A N/A 36 N/A
1995 15.58 18.70 41,012 1.02 1.42 N/A N/A 45 N/A
1996 17.19 15.23 57,955 1.12 1.25 N/A N/A 67 .0093
INVESTMENT GRADE
1/7/92* to 12/31/92 10.53 8.91(a) 4,707 .23(a) 6.16(a) .93(a) 5.46(a) 72 N/A
1993 10.95 10.93 10,210 .35 6.32 .85 5.82 64 N/A
1994 10.31 (3.53) 11,602 .37 6.61 .92 6.06 15 N/A
1995 11.73 19.69 16,262 .51 6.80 .91 6.40 26 N/A
1996 11.36 2.84 16,390 .60 6.47 .88 6.19 19 N/A
TARGET MATURITY 2007
4/26/95* to 12/31/95 12.26 22.60 9,860 .04(a) 6.25(a) .87(a) 5.42(a) 28 N/A
1996 11.71 (2.16) 14,647 .60 6.05 .82 5.83 13 N/A
TARGET MATURITY 2010
4/30/96* to 12/31/96 11.16 11.60 2,195 .60(a) 6.05(a) .98(a) 5.67(a) 0 N/A
UTILITIES INCOME
11/15/93* to 12/31/93 9.94 (4.66)(a) 494 -- 1.46(a) 3.99(a) (2.52)(a) 0 N/A
1994 9.19 (7.24) 4,720 .17 4.13 .95 3.35 31 N/A
1995 11.74 30.26 14,698 .41 4.23 .91 3.73 17 N/A
1996 12.57 9.57 24,108 .60 3.48 .86 3.22 45 .0707
* Commencement of operations
+ Some or all expenses have been waived or assumed by the investment adviser from commencement of operations through
December 31, 1996 (Note 5).
++ The effect of fees and charges incurred at the separate account level are not reflected in these
performance figures.
+++ Average commission rate (per share of security) as required by amended disclosure requirements effective for
fiscal years beginning on or after September 1, 1995.
(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 eleven Funds comprising
First Investors Life Series Fund as of December 31, 1996, 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, 1996, 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 eleven Funds comprising First
Investors Life Series Fund as of December 31, 1996, and the results of
their operations, changes in their net assets and financial highlights
for the periods presented, in conformity with generally accepted
accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1997
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
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
The Cash Management Fund is a money market fund and seeks 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.
FIRST INVESTORS LIFE SERIES FUND
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.
