<PAGE>
CHIEF INVESTMENT OFFICER'S MARKET OVERVIEW LETTER
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 and
UTILITIES INCOME FUND
Dear Investor:
We are pleased to present the semi-annual report for the funds of First
Investors Life Series Fund ("Funds") for the six months ended June 30, 1998. The
Funds are available only through the purchase of variable life insurance and
variable annuity contracts issued by First Investors Life Insurance Company. The
report does not include information concerning expenses and charges to which a
policyowner or contractowner would be subject. These charges will differ for
variable life insurance policyholders based upon age, gender and risk
classification at time of policy issue.
Although both the bond and stock markets suffered setbacks at times during the
first six months of the year, the combination of moderate growth, low inflation,
and respectable corporate earnings reports helped provide a positive environment
for investors in most types of funds.
The U.S. economy remained strong for the first half of 1998, with sustained,
moderate growth and low levels of inflation and unemployment. Inflation remained
low, as the Consumer Price Index rose just 1.7% for the twelve months ended June
30. The unemployment rate continued to be low, at 4.5% as of June 30, 1998.
Consumer confidence remained high, encouraged by the robust domestic economy and
rising income levels.
In general, our long-term outlook for the financial markets continues to be
positive. The economy appears to be growing moderately, inflation remains
subdued and the Federal Reserve appears unlikely to tolerate unsustainably fast
economic growth. In regard to the stock market, we are encouraged by the
underlying fundamentals of the U.S. economy. However, we are cautioned by a
number of situations, including the struggles in Asia. We are concerned about
the effect this region's difficulties may have on U.S. growth and corporate
earnings. We are also concerned about the relative lack of pricing power and the
prospects that the lofty level of gains posted year-to-date can continue into
the second half of 1998.
With regard to the bond market, interest rates continue to remain in a tight
range; we believe the Federal Reserve is likely to maintain current interest
rates. Continued weak Asian markets, low inflation in the U.S. and the Federal
budget surplus should support an environment of low interest rates and high bond
prices. However, the continued strength of the U.S. economy could result in
higher interest rates and inflation, notwithstanding Asia. In this event, bond
fund values would decline.
Thank you for your continued confidence in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Clark D. Wagner
Chief Investment Officer
First Investors Management Company, Inc.
July 31, 1998
1
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--92.8%
BASIC MATERIALS--2.7%
18,000 Allegheny Teledyne, Inc. $ 411,750 $ 22
32,700 *Bethlehem Steel Corporation 406,706 22
19,900 Bowater, Inc. 940,275 50
24,300 Du Pont (E.I.) de Nemours & Company 1,813,387 96
17,100 Ecolab, Inc. 530,100 28
16,800 Monsanto Company 938,700 50
- ---------------------------------------------------------------------------------------
5,040,918 268
- ---------------------------------------------------------------------------------------
CAPITAL GOODS--9.2%
24,200 AMP, Inc. 831,875 44
21,300 Avery Dennison Corporation 1,144,875 61
15,700 Corning, Inc. 545,575 29
9,600 Emerson Electric Company 579,600 31
61,300 General Electric Company 5,578,300 296
35,900 Ingersoll-Rand Company 1,581,844 84
4,200 Lockheed Martin Corporation 444,675 24
8,000 Minnesota Mining and Manufacturing Company 657,500 35
14,200 Pitney-Bowes, Inc. 683,375 36
15,600 Textron, Inc. 1,118,325 59
25,200 Tyco International, Ltd. 1,587,600 84
4,900 United Technologies Corporation 453,250 24
41,500 *Waste Management, Inc. 2,049,062 109
- ---------------------------------------------------------------------------------------
17,255,856 916
- ---------------------------------------------------------------------------------------
COMMUNICATION SERVICES--5.1%
39,000 *AirTouch Communications, Inc. 2,279,062 121
33,400 Bell Atlantic Corporation 1,523,875 81
10,000 Century Telephone Enterprises, Inc. 458,750 24
20,600 GTE Corporation 1,145,875 61
7,100 MCI Communications Corporation 412,687 22
39,527 *Qwest Communications International, Inc. 1,378,504 73
- ---------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMUNICATION SERVICES (continued)
38,000 SBC Communications, Inc. $ 1,520,000 $ 80
19,800 *WorldCom, Inc. 959,062 51
- ---------------------------------------------------------------------------------------
9,677,815 513
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICALS--9.5%
14,200 *CompUSA, Inc. 256,487 14
27,400 *Costco Companies, Inc. 1,727,912 92
9,900 Federal-Mogul Corporation 668,250 35
25,300 *Federated Department Stores, Inc. 1,361,456 72
23,900 Hilton Hotels Corporation 681,150 36
14,650 Home Depot, Inc. 1,216,866 64
37,000 *Lear Corporation 1,898,562 101
24,100 Masco Corporation 1,458,050 77
28,200 Mattel, Inc. 1,193,212 63
14,000 McGraw-Hill Companies, Inc. 1,141,875 60
24,400 New York Times Company - Class "A" 1,933,700 102
20,900 Ogden Corporation 578,669 31
22,800 Omnicom Group, Inc. 1,137,150 60
46,000 Wal-Mart Stores, Inc. 2,794,500 148
- ---------------------------------------------------------------------------------------
18,047,839 955
- ---------------------------------------------------------------------------------------
CONSUMER STAPLES--13.6%
27,700 Anheuser-Busch Companies, Inc. 1,307,094 69
32,200 *Apollo Group, Inc. 1,064,612 56
25,800 Bestfoods 1,498,012 79
21,500 *Chancellor Media Corporation 1,067,610 57
25,000 Coca-Cola Company 2,137,500 113
13,100 Comcast Corporation - Special Class "A" 531,779 28
14,000 Fort James Corporation 623,000 33
37,200 General Mills, Inc. 2,543,550 135
39,000 *Host Marriott Corporation 694,687 37
11,500 Kimberly-Clark Corporation 527,562 28
28,400 *Outback Steakhouse, Inc. 1,107,600 59
26,100 Procter & Gamble Company 2,376,731 126
- ---------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
29,000 Rite Aid Corporation $ 1,089,312 $ 58
14,300 Rubbermaid, Inc. 474,581 25
19,780 *Safeway, Inc. 804,799 43
26,900 Sara Lee Corporation 1,504,719 80
24,805 *Tele-Communications, Inc. Liberty Media Group
- Series "A" 962,744 51
22,900 Time Warner, Inc. 1,956,519 104
18,400 Unilever, N.V. 1,452,450 77
27,000 *USA Networks, Inc. 678,375 36
12,300 Walt Disney Company 1,292,269 68
- ---------------------------------------------------------------------------------------
25,695,505 1,362
- ---------------------------------------------------------------------------------------
ENERGY--6.8%
19,400 Amoco Corporation 807,525 43
13,200 Chevron Corporation 1,096,425 58
28,300 ENSCO International, Inc. 491,712 26
49,900 Exxon Corporation 3,558,494 188
4,800 Kerr-McGee Corporation 277,800 15
22,600 Mobil Corporation 1,731,725 92
41,700 Royal Dutch Petroleum Company 2,285,681 121
9,800 Schlumberger, Ltd. 669,462 35
12,800 Texaco, Inc. 764,000 40
42,400 Tosco Corporation 1,245,500 66
- ---------------------------------------------------------------------------------------
12,928,324 684
- ---------------------------------------------------------------------------------------
FINANCIAL--16.6%
14,800 Allstate Corporation 1,355,125 72
9,300 American Express Company 1,060,200 56
14,500 American International Group, Inc. 2,117,000 112
13,900 Banc One Corporation 775,794 41
8,500 Bank of New York Company, Inc. 515,844 27
13,600 BankAmerica Corporation 1,175,550 62
41,800 BankBoston Corporation 2,325,125 123
25,600 Chase Manhattan Corporation 1,932,800 102
9,900 Citicorp 1,477,575 78
- ---------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
28,400 Conseco, Inc. $ 1,327,700 $ 70
23,700 Fannie Mae 1,439,775 76
17,700 Fifth Third Bancorp 1,115,100 59
6,500 First Chicago NBD Corporation 576,063 30
35,300 First Union Corporation 2,056,225 109
31,600 Freddie Mac 1,487,175 79
9,900 Golden West Financial Corporation 1,052,494 56
18,150 Jefferson-Pilot Corporation 1,051,566 56
15,200 Merrill Lynch & Company, Inc. 1,402,200 74
9,800 Morgan Stanley, Dean Witter, Discover and Company 895,475 47
14,500 NationsBank Corporation 1,109,250 59
56,300 Norwest Corporation 2,104,213 111
21,300 TIG Holdings, Inc. 489,900 26
28,600 Travelers Group, Inc. 1,733,875 92
8,500 Wachovia Corporation 718,250 38
- ---------------------------------------------------------------------------------------
31,294,274 1,655
- ---------------------------------------------------------------------------------------
HEALTHCARE--10.9%
25,800 Abbott Laboratories 1,054,575 56
19,200 American Home Products Corporation 993,600 53
11,900 Baxter International, Inc. 640,369 34
21,300 Bristol-Myers Squibb Company 2,448,169 130
14,100 *Genentech, Inc. 957,038 51
24,050 *Health Management Associates, Inc. - Class "A" 804,172 43
30,000 *Healthsouth Corporation 800,625 42
25,400 Johnson & Johnson 1,873,250 99
21,300 Medtronic, Inc. 1,357,875 72
25,900 Merck & Company, Inc. 3,464,125 183
16,300 Pfizer, Inc. 1,771,606 94
11,300 *Tenet Healthcare Corporation 353,125 19
40,300 *Total Renal Care Holdings, Inc. 1,390,350 74
12,000 United Healthcare Corporation 762,000 40
26,100 Warner-Lambert Company 1,810,688 96
- ---------------------------------------------------------------------------------------
20,481,567 1,086
- ---------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY--14.6%
34,100 *Advanced-Micro Devices, Inc. $ 581,831 $ 31
28,700 *Altera Corporation 848,444 45
8,600 *ASM Lithography Holding, N.V. 249,938 13
14,300 *Bay Networks, Inc. 461,175 24
42,600 *Cadence Design Systems, Inc. 1,331,250 71
21,500 *Cisco Systems, Inc. 1,979,344 105
56,400 Comdisco, Inc. 1,071,600 57
34,000 Compaq Computer Corporation 964,750 51
7,100 *Dell Computer Corporation 658,969 35
55,900 First Data Corporation 1,862,169 99
28,400 *Fore Systems, Inc. 752,600 40
11,800 Grainger (W.W.), Inc. 587,788 31
28,400 HBO & Company 1,001,100 53
28,900 Intel Corporation 2,142,213 113
20,000 International Business Machines Corporation 2,296,250 122
25,600 Lucent Technologies, Inc. 2,129,600 113
20,600 *Microsoft Corporation 2,232,525 118
12,400 Northern Telecom, Ltd. 703,700 37
7,500 Raytheon Company - Class "B" 443,438 23
28,400 *Seagate Technology, Inc. 676,275 36
33,100 *Sterling Commerce, Inc. 1,605,350 85
14,000 *Tellabs, Inc. 1,002,750 53
18,900 Xerox Corporation 1,920,713 102
- ---------------------------------------------------------------------------------------
27,503,772 1,457
- ---------------------------------------------------------------------------------------
UTILITIES--3.8%
17,100 *AES Corporation 898,819 48
17,700 Duke Energy Corporation 1,048,725 56
35,400 Enron Corporation 1,913,813 101
22,000 FPL Group, Inc. 1,386,000 73
57,500 Williams Companies, Inc. 1,940,625 103
- ---------------------------------------------------------------------------------------
7,187,982 381
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $122,451,531) 175,113,852 9,277
- ---------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--6.4%
$ 3,100M Bell Atlantic Financial Corp., 5.51%, 7/10/98 $ 3,094,034 $ 164
2,000M Chevron USA, Inc., 5.51%, 7/30/98 1,991,123 105
4,400M Kellogg Company, 5.52%, 7/28/98 4,381,784 232
2,000M MetLife Funding, Inc., 5.51%, 7/17/98 1,995,102 106
600M National Rural Utilities Coop. Fin. Corp., 5.50%,
7/17/98 598,533 32
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$12,060,576) 12,060,576 639
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $134,512,107) 99.2% 187,174,428 9,916
OTHER ASSETS, LESS LIABILITIES .8 1,581,348 84
- ---------------------------------------------------------------------------------------
NET ASSETS 100.0% $188,755,776 $10,000
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
June 30, 1998
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL INTEREST $10,000 OF
AMOUNT SECURITY RATE* VALUE NET ASSETS
- -----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE NOTES--81.5%
$ 100M Archer-Daniels-Midland Co., 8/21/98 5.52% $99,218 $ 219
20M Associates Corp. of North America, 9/1/98 5.25 19,959 44
145M BellSouth Telecommunications, Inc., 7/28/98 5.51 144,401 319
215M Carolina Power & Light Co., 7/17/98 5.52 214,473 474
100M Chevron USA, Inc., 8/13/98 5.50 99,343 220
110M Chevron USA, Inc., 8/24/98 5.48 109,096 241
100M Coca-Cola Co., 8/5/98 5.51 99,464 220
110M Consolidated Natural Gas Co., 7/6/98 5.54 109,915 243
150M Eastman Kodak Co., 8/3/98 5.51 149,242 330
182M Florida Power Corp., 8/3/98 5.53 181,077 401
50M Ford Motor Credit Corp., 8/6/98 5.51 49,724 110
200M General Electric Capital Corp., 7/30/98 5.51 199,111 440
215M Idaho Power Co., 7/23/98 5.60 214,264 474
150M J.P. Morgan & Co., 11/15/98 5.77 150,870 334
200M Laclede Gas Co., 7/24/98 5.55 199,291 441
200M Lubrizol Corp., 8/10/98 5.50 198,778 440
200M McGraw-Hill, Inc., 7/27/98 5.50 199,206 441
150M National Rural Utilities Coop. Fin. Corp.,
9/17/98 5.50 148,213 328
200M Prudential Funding Corp., 9/11/98 5.50 197,800 437
200M Schering Corp., 7/6/98 5.80 199,839 442
155M South Califonia Edison Co., 12/15/98 5.60 154,871 343
210M Texaco, Inc., 7/27/98 5.50 209,166 464
200M The Stanley Works, 9/22/98 5.52 197,455 438
140M Winn Dixie Stores, Inc., 7/14/98 5.51 139,722 309
- -----------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE NOTES (cost $3,684,498) 3,684,498 8,152
- -----------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--11.0%
200M Federal Home Loan Banks, 7/8/98 5.52 200,016 442
100M Federal Home Loan Mortgage Corp., 9/22/98 5.50 99,950 221
200M Federal National Mortgage Association, 7/15/98 5.24 199,954 441
- -----------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY OBLIGATIONS
(cost $499,920) 499,920 1,104
- -----------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL INTEREST $10,000 OF
AMOUNT SECURITY RATE* VALUE NET ASSETS
- -----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
VARIABLE RATE NOTES--11.1%
$ 200M IBM Credit Corp., 7/6/98 5.73% $199,998 $ 443
100M Key Bank N.A., 3/4/99 5.65 100,026 221
200M PNC Bank N.A., 9/18/98 5.74 199,974 442
- -----------------------------------------------------------------------------------------------
TOTAL VALUE OF VARIABLE RATE NOTES (cost
$499,998) 499,998 1,106
- -----------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $4,684,416) 103.6% 4,684,416 10,362
EXCESS OF LIABILITIES OVER OTHER ASSETS (3.6) (163,466) (362)
- -----------------------------------------------------------------------------------------------
NET ASSETS 100.0% 4,$520,950 $ 10,000
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
</TABLE>
* The interest rates shown for the corporate notes and U.S. Government agency
obligations are the effective rates at the time of purchase by the Fund. The
interest rates shown on variable rate notes are adjusted periodically; the
interest rates shown are the rates that were in effect at June 30, 1998.
See notes to financial statements
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--88.2%
BASIC MATERIALS--4.1%
32,632 Birmingham Steel Corporation $ 403,821 $ 36
23,622 Boise Cascade Corporation 773,620 69
19,500 *ChiRex, Inc. 342,469 31
18,900 *Corn Products International, Inc. 640,237 57
9,700 Crompton & Knowles Corporation 244,319 22
7,900 Dexter Corporation 251,319 22
44,100 *Gaylord Container Corporation - Class "A" 339,019 30
16,456 Lilly Industries, Inc. - Class "A" 355,861 32
24,867 Louisiana-Pacific Corporation 453,823 41
10,673 Schulman (A.), Inc. 208,791 19
8,300 Southdown, Inc. 592,412 53
- ---------------------------------------------------------------------------------------
4,605,691 412
- ---------------------------------------------------------------------------------------
CAPITAL GOODS--4.4%
26,521 *Checkpoint Systems, Inc. 374,609 33
17,400 Columbus McKinnon Corporation 452,400 40
13,400 *Eastern Environmental Services, Inc. 455,600 41
35,700 Gleason Corporation 1,004,062 90
31,700 *ITEQ, Inc. 235,769 21
7,900 JLG Industries, Inc. 159,975 14
58,760 *Newpark Resources, Inc. 653,705 58
18,724 *Sanmina Corporation 812,153 73
24,352 Titan International, Inc. 413,984 37
8,700 *Tower Automotive, Inc. 373,012 33
- ---------------------------------------------------------------------------------------
4,935,269 440
- ---------------------------------------------------------------------------------------
COMMUNICATION SERVICES--5.4%
19,200 Cincinnati Bell, Inc. 549,600 49
23,000 *Commonwealth Telephone Enterprises, Inc. 606,625 54
32,238 ECI Telecommunications, Ltd. (ADR) 1,221,014 109
22,800 *ICG Communications, Inc. 833,625 74
19,939 *IXC Communications, Inc. 967,041 86
21,800 *Tel-Save Holdings, Inc. 321,550 29
- ---------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMUNICATION SERVICES (continued)
14,800 *Western Wireless Corporation - Class "A" $ 295,075 $ 26
26,630 *WorldCom, Inc. 1,289,891 115
- ---------------------------------------------------------------------------------------
6,084,421 542
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICALS--15.8%
16,000 *American Skiing Company 208,000 19
7,800 *Budget Group, Inc. - Class "A" 249,112 22
25,550 *Building Materials Holding Corporation 352,909 32
6,200 *Champion Enterprises, Inc. 182,125 16
9,000 *Children's Place Retail Stores, Inc. 88,312 8
2,400 Dover Downs Entertainment, Inc. 74,400 7
24,600 *Eagle Hardware & Garden, Inc. 568,875 51
17,600 Ethan Allen Interiors, Inc. 878,900 79
14,850 *Fossil, Inc. 369,394 33
16,300 Fred's, Inc. 415,650 37
16,400 Interface, Inc. 331,075 30
39,600 *International Comfort Products Corporation 480,150 43
17,900 *Just For Feet, Inc. 510,150 46
6,700 Kellwood Company 239,525 21
4,800 *Lamar Advertising Company 172,200 15
17,750 *NCO Group, Inc. 390,500 35
34,110 Oakwood Homes Corporation 1,023,300 91
30,612 *OfficeMax, Inc. 505,098 45
40,200 Ogden Corporation 1,113,037 99
33,049 *PETsMART, Inc. 330,490 30
8,200 Pillowtex Corporation 329,025 29
35,693 *Prime Hospitality Corporation 622,397 56
13,000 *Proffitt's, Inc. 524,875 47
38,400 *Royal Group Technologies, Ltd. 1,113,600 99
48,900 *Saks Holdings, Inc. 1,350,862 121
20,300 St. John Knits, Inc. 784,087 70
17,300 *StaffMark, Inc. 633,612 57
17,800 *Stage Stores, Inc. 805,450 72
16,400 Talbots, Inc. 429,475 38
- ---------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER CYCLICALS (continued)
5,900 *Tech Data Corporation $ 252,962 $ 23
9,400 *Tractor Supply Company 233,825 21
30,900 *Travis Boats & Motors, Inc. 757,050 68
8,397 *U.S. Office Products Company 163,741 15
52,900 Wolverine World Wide, Inc. 1,147,269 102
- ---------------------------------------------------------------------------------------
17,631,432 1,577
- ---------------------------------------------------------------------------------------
CONSUMER STAPLES--13.2%
29,969 Apple South, Inc. 391,470 35
13,900 *Beringer Wine Estates Holdings, Inc. - Class "B" 612,469 55
14,600 *Chancellor Media Corporation 724,982 65
61,000 *Cinar Films, Inc. - Class "B" 1,189,500 106
4,355 *Clear Channel Communications 475,239 42
10,700 Comcast Corporation - Special Class "A" 434,354 39
14,900 Earthgrains Company 832,537 74
14,700 *Emmis Broadcasting Corporation - Class "A" 702,844 63
79,194 *Four Media Company 692,947 62
50,300 *Global-Tech Appliances, Inc. 723,062 65
26,100 *Jones Intercable, Inc. - Class "A" 652,500 58
64,501 *Metromedia International Group, Inc. 769,981 69
13,700 *Pre-Paid Legal Services, Inc. 432,406 39
27,806 Richfood Holdings, Inc. 575,237 51
48,216 Rite Aid Corporation 1,811,113 162
26,000 *Sinclair Broadcast Group, Inc. - Class "A" 747,500 67
25,200 *Steiner Leisure, Ltd. 762,300 68
58,474 *Tele-Communications, Inc. Liberty Media Group -
Series "A" 2,269,522 203
- ---------------------------------------------------------------------------------------
14,799,963 1,323
- ---------------------------------------------------------------------------------------
ENERGY--3.4%
10,900 *EVI Weatherford, Inc. 404,662 36
29,100 *Nabors Industries, Inc. 576,544 52
35,400 *Precision Drilling Corporation - Class "A" 694,725 62
23,900 *R&B Falcon Corporation 540,737 48
9,900 *Stolt Comex Seaway SA 191,812 17
- ---------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY (continued)
4,950 *Stolt Comex Seaway SA (ADR) $ 86,625 $ 8
15,000 Tosco Corporation 440,625 39
16,100 *Veritas DGC, Inc. 803,994 72
- ---------------------------------------------------------------------------------------
3,739,724 334
- ---------------------------------------------------------------------------------------
FINANCIAL--13.6%
8,300 Astoria Financial Corporation 444,050 40
63,000 Cash America International, Inc. 960,750 86
13,400 Centura Banks, Inc. 837,500 75
32,570 Charter One Financial, Inc. 1,097,202 98
25,150 Commercial Federal Corporation 795,369 71
16,244 Conseco, Inc. 759,407 68
15,100 Dime Bancorp, Inc. 452,056 40
16,300 ESG Re, Ltd. 352,488 31
21,393 Excel Realty Trust, Inc. 616,386 55
14,600 First Tennessee National Corporation 460,813 41
18,000 GreenPoint Financial Corporation 677,250 60
16,689 *HealthCare Financial Partners, Inc. 1,023,244 91
42,800 *Imperial Credit Industries, Inc. 1,005,800 90
27,000 Innkeepers USA Trust 340,875 30
23,200 *LINC Capital, Inc. 410,350 37
32,900 Manufactured Home Communities, Inc. 793,713 71
8,100 Medallion Financial Corporation 222,750 20
21,682 Mercantile Bancorporation, Inc. 1,092,231 98
19,200 Peoples Heritage Financial Group, Inc. 453,600 41
31,113 Resource Bancshares Mortgage Group, Inc. 579,480 52
7,800 *Sunterra Corporation 128,700 11
25,900 TCF Financial Corporation 764,050 68
14,660 Washington Federal, Inc. 404,983 36
30,900 Westfield America, Inc. 567,788 51
- ---------------------------------------------------------------------------------------
15,240,835 1,361
- ---------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE--10.1%
63,600 *American Oncology Resources, Inc. $ 777,116 $ 69
32,800 *CardioVascular Dynamics, Inc. 182,450 16
11,500 *Centocor, Inc. 416,875 37
34,300 *Dura Pharmaceuticals, Inc. 767,463 69
7,400 *Epix Medical, Inc. 75,850 7
24,900 *Gilead Sciences, Inc. 798,356 71
11,950 *Health Care and Retirement Corporation 471,278 42
32,400 *Health Systems Design Corporation 231,861 21
59,300 *IDEXX Laboratories, Inc. 1,475,088 132
6,600 *IMPATH, Inc. 160,463 14
33,800 Jones Pharma, Inc. 1,119,625 100
38,980 *Kensey Nash Corporation 370,310 33
29,500 *Medicis Pharmaceutical Corporation - Class "A" 1,076,750 96
35,188 Mylan Laboratories, Inc. 1,057,839 94
20,022 *Pediatric Services of America, Inc. 310,341 28
69,900 *PharMerica, Inc. 843,169 75
16,400 *Quorum Health Group, Inc. 434,600 39
32,800 *Simione Central Holdings, Inc. 223,450 20
54,800 *Vysis, Inc. 548,000 49
- ---------------------------------------------------------------------------------------
11,340,884 1,012
- ---------------------------------------------------------------------------------------
TECHNOLOGY--16.2%
11,700 *Altera Corporation 345,881 31
10,200 *Ascend Communications, Inc. 505,538 45
13,700 *Cisco Systems, Inc. 1,261,256 113
36,600 *Condor Technology Solutions, Inc. 539,850 48
42,500 *EMC Corporation 1,904,531 170
13,100 *Envoy Corporation 620,613 55
16,900 *Etec Systems, Inc. 594,669 53
8,500 *Exodus Communications, Inc. 380,375 34
32,600 *Fore Systems, Inc. 863,900 77
26,750 *Information Management Resources, Inc. 904,484 81
5,890 Intel Corporation 436,596 39
3,300 *Lycos, Inc. 248,738 22
- ---------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
16,803 National Data Corporation $ 735,131 $ 66
17,000 *Network Appliance, Inc. 661,938 59
42,638 *PairGain Technologies, Inc. 743,500 66
23,400 *Platinum Technology, Inc. 668,363 60
19,600 *Powerwave Technologies, Inc. 328,300 29
22,600 *PRI Automation, Inc. 385,613 34
13,200 *Rambus, Inc. 806,850 72
29,900 *Remedy Corporation 508,300 45
17,200 *Saville Systems Ireland PLC (ADR) 862,150 77
31,873 *Sterling Commerce, Inc. 1,545,841 138
13,900 *Synopsys, Inc. 635,925 57
81,200 *TCSI Corporation 477,050 43
27,900 *Verilink Corporation 230,175 21
10,800 *Wind River Systems, Inc. 387,450 35
14,700 *Xilinx, Inc. 499,800 45
- ---------------------------------------------------------------------------------------
18,082,817 1,615
- ---------------------------------------------------------------------------------------
TRANSPORTATION--1.1%
5,840 *FDX Corporation 366,460 33
79,500 *Transportacion Maritima Mexicana SA de C.V. -
Class "L" (ADR) 526,688 47
20,100 *U S Xpress Enterprises, Inc. 336,675 30
- ---------------------------------------------------------------------------------------
1,229,823 110
- ---------------------------------------------------------------------------------------
UTILITIES--.9%
33,100 Houston Industries, Inc. 1,021,963 91
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $80,550,003) 98,712,822 8,817
- ---------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--11.7%
$ 800M Associates Corp. of North America, 5.51%, 7/14/98 $ 798,409 $ 71
700M Avnet, Inc., 5.53%, 8/17/98 694,946 62
1,300M BellSouth Corp., 5.50%, 8/25/98 1,289,076 115
1,100M Carolina Power & Light Co., 5.52%, 7/17/98 1,097,301 98
3,600M Dupont (E.I.) de Nemours & Co., 5.50%, 7/8/98 3,596,150 321
500M Dupont (E.I.) de Nemours & Co., 5.50%, 7/14/98 499,007 45
600M Eastman Kodak Co., 5.55%, 7/23/98 597,965 54
800M General Motors Acceptance Corp., 5.52%, 7/15/98 798,283 71
600M Lubrizol Corp., 5.50%, 8/10/98 596,333 53
1,200M Sharp Electronics Corp., 5.60%, 8/13/98 1,191,973 107
2,000M Winn Dixie Stores, Inc., 5.51%, 7/28/98 1,991,735 178
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$13,151,178) 13,151,178 1,175
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $93,701,181) 99.9% 111,864,000 9,992
OTHER ASSETS, LESS LIABILITIES .1 87,352 8
- ---------------------------------------------------------------------------------------
NET ASSETS 100.0% $111,951,352 $10,000
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
16
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GOVERNMENT FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED CERTIFICATES--72.7%
Federal National Mortgage Association:
$ 1,222M 9%, 6/1/2015 $1,292,647 $ 1,321
1,006M 11%, 10/1/2015 1,130,937 1,155
440M 9%, 10/1/2020 469,843 480
203M 7%, 1/1/2026 206,313 211
751M 7%, 2/1/2026 762,779 779
Government National Mortgage Association I
Program:
107M 11.50%, 10/15/2012 121,534 124
136M 11.50%, 5/15/2015 155,949 159
878M 7.50%, 8/15/2026 903,946 923
246M 7.50%, 9/15/2027 253,134 259
248M 7.50%, 3/15/2028 254,820 260
499M 7.50%, 4/15/2028 513,509 525
1,022M Federal Home Loan Mortgage Corp., 7.50%, 5/1/2024 1,049,256 1,072
- -------------------------------------------------------------------------------------
TOTAL VALUE OF MORTGAGE-BACKED CERTIFICATES (cost
$7,021,449) 7,114,667 7,268
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--10.6%
1,000M Tennessee Valley Authority Power Board, 6.375%,
6/15/2005
(cost $1,004,832) 1,039,950 1,062
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--11.0%
750M U.S. Treasury Bonds, 6.375%, 8/15/2027 824,062 842
250M U.S. Treasury Notes, 5.625%, 12/31/1999 250,391 256
- -------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT OBLIGATIONS (cost
$1,051,504) 1,074,453 1,098
- -------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.8%
475M Merrill Lynch & Co., Inc., 5.82%, 7/6/98 (cost
$474,616) 474,616 485
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $9,552,401) 99.1% 9,703,686 9,913
OTHER ASSETS, LESS LIABILITIES .9 85,299 87
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $9,788,985 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
17
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--97.1%
AEROSPACE/DEFENSE--1.5%
26,000 Boeing Company $ 1,158,625 $ 71
10,000 *General Motors Corporation - Class "H" 471,250 29
9,000 United Technologies Corporation 832,500 51
- ---------------------------------------------------------------------------------------
2,462,375 151
- ---------------------------------------------------------------------------------------
AUTOMOTIVE--.4%
10,000 Goodyear Tire & Rubber Company 644,375 40
- ---------------------------------------------------------------------------------------
BANKS--6.9%
18,950 Associated Banc-Corp 712,994 44
14,800 Citicorp 2,208,900 136
37,200 First Union Corporation 2,166,900 133
20,000 Mercantile Bankshares Corporation 696,250 43
18,400 NationsBank Corporation 1,407,600 87
15,300 State Street Corporation 1,063,350 65
44,900 U.S. Bancorp 1,930,700 119
16,000 Wilmington Trust Corporation 974,000 60
- ---------------------------------------------------------------------------------------
11,160,694 687
- ---------------------------------------------------------------------------------------
BUSINESS SERVICES--3.2%
28,000 *Barnett, Inc. 567,000 35
31,000 Dames & Moore Group 399,125 25
26,000 G & K Services, Inc. - Class "A" 1,134,250 70
15,000 Hertz Corporation - Class "A" 664,687 41
18,000 *Ionics, Inc. 663,750 41
30,000 *Tetra Tech, Inc. 727,500 45
25,000 *U.S. Rentals, Inc. 985,937 61
- ---------------------------------------------------------------------------------------
5,142,249 318
- ---------------------------------------------------------------------------------------
CHEMICALS--1.3%
14,000 Du Pont (E.I.) de Nemours & Company 1,044,750 64
20,800 Minerals Technologies, Inc. 1,058,200 65
- ---------------------------------------------------------------------------------------
2,102,950 129
- ---------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMUNICATIONS EQUIPMENT--3.6%
14,000 *3Com Corporation $ 429,625 $ 26
6,000 *Black Box Corporation 199,125 12
8,000 *Ciena Corporation 557,000 34
27,000 *Cisco Systems, Inc. 2,485,687 153
17,768 Lucent Technologies, Inc. 1,478,075 91
14,000 Motorola, Inc. 735,875 45
- ---------------------------------------------------------------------------------------
5,885,387 361
- ---------------------------------------------------------------------------------------
COMPUTERS & OFFICE EQUIPMENT--3.5%
28,300 Compaq Computer Corporation 803,012 49
36,000 *EMC Corporation 1,613,250 99
18,600 Hewlett-Packard Company 1,113,675 68
19,100 International Business Machines Corporation 2,192,919 135
- ---------------------------------------------------------------------------------------
5,722,856 351
- ---------------------------------------------------------------------------------------
DRUGS--8.1%
24,000 American Home Products Corporation 1,242,000 76
45,100 *Covance, Inc. 1,014,750 62
35,000 *Genzyme Corporation (General Division) 894,687 55
15,500 Johnson & Johnson 1,143,125 70
10,000 Merck & Company, Inc. 1,337,500 82
25,000 Pfizer, Inc. 2,717,187 167
40,000 Pharmacia & Upjohn, Inc. 1,845,000 113
24,300 Warner-Lambert Company 1,685,812 104
29,100 Zeneca Group PLC (ADR) 1,276,762 79
- ---------------------------------------------------------------------------------------
13,156,823 808
- ---------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--3.0%
45,000 General Electric Company 4,095,000 252
31,000 *Littlefuse, Inc. 782,750 48
- ---------------------------------------------------------------------------------------
4,877,750 300
- ---------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRONICS--3.2%
42,700 *Analog Devices, Inc. $ 1,048,819 $ 64
32,000 *Applied Materials, Inc. 944,000 58
16,700 Dallas Semiconductor Corporation 517,700 32
25,600 Intel Corporation 1,897,600 117
14,400 Texas Instruments, Inc. 839,700 52
- ---------------------------------------------------------------------------------------
5,247,819 323
- ---------------------------------------------------------------------------------------
ENERGY SERVICES--1.2%
13,000 Diamond Offshore Drilling, Inc. 520,000 32
21,000 Schlumberger, Ltd. 1,434,562 88
- ---------------------------------------------------------------------------------------
1,954,562 120
- ---------------------------------------------------------------------------------------
ENERGY SOURCES--3.0%
6,700 *Barrett Resources Corporation 250,831 15
16,500 Chevron Corporation 1,370,531 84
19,000 Exxon Corporation 1,354,937 83
33,700 Royal Dutch Petroleum Company 1,847,181 114
- ---------------------------------------------------------------------------------------
4,823,480 296
- ---------------------------------------------------------------------------------------
ENTERTAINMENT PRODUCTS--.4%
24,700 *Speedway Motorsports, Inc. 631,394 39
- ---------------------------------------------------------------------------------------
FINANCIAL SERVICES--5.4%
20,000 American Express Company 2,280,000 140
16,000 Associates First Capital Corporation 1,230,000 76
33,280 Fannie Mae 2,021,760 124
15,300 Merrill Lynch & Company, Inc. 1,411,425 87
20,385 Morgan Stanley, Dean Witter, Discover and Company 1,862,679 115
- ---------------------------------------------------------------------------------------
8,805,864 542
- ---------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--5.8%
12,000 *Beringer Wine Estates Holdings, Inc. - Class "B" 528,750 33
16,500 Coca-Cola Company 1,410,750 87
11,000 General Mills, Inc. 752,125 46
- ---------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
FOOD/BEVERAGE/TOBACCO (continued)
20,000 *Landry's Seafood Restaurants, Inc. $ 361,876 $ 22
25,000 McDonald's Corporation 1,725,000 106
39,100 PepsiCo, Inc. 1,610,431 99
38,000 Philip Morris Companies, Inc. 1,496,250 92
27,000 Sara Lee Corporation 1,510,312 93
- ---------------------------------------------------------------------------------------
9,395,494 578
- ---------------------------------------------------------------------------------------
HEALTH SERVICES--2.3%
40,650 Columbia/HCA Healthcare Corporation 1,183,931 73
13,000 Servicemaster Company 494,813 30
16,000 Shared Medical System Corporation 1,175,000 72
14,000 United Healthcare Corporation 889,000 55
- ---------------------------------------------------------------------------------------
3,742,744 230
- ---------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--3.5%
18,000 *Bush Boake Allen, Inc. 527,625 32
8,900 Estee Lauder Companies, Inc. - Class "A" 620,219 38
23,000 Gillette Company 1,303,813 80
25,000 Kimberly-Clark Corporation 1,146,875 71
24,000 Procter & Gamble Company 2,185,500 134
- ---------------------------------------------------------------------------------------
5,784,032 355
- ---------------------------------------------------------------------------------------
INSURANCE--6.4%
45,000 Ace, Ltd. 1,755,000 108
17,000 Allstate Corporation 1,556,563 96
12,262 American International Group, Inc. 1,790,252 110
33,000 Frontier Insurance Group, Inc. 744,563 46
21,000 Marsh & McLennan Companies, Inc. 1,269,188 78
16,000 Reinsurance Group of America 946,000 58
38,299 Travelers Group, Inc. 2,321,877 143
- ---------------------------------------------------------------------------------------
10,383,443 639
- ---------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
MACHINERY & MANUFACTURING--1.2%
25,000 Donaldson Company, Inc. $ 590,625 $ 36
10,000 Minnesota Mining and Manufacturing Company 821,875 51
8,000 Nordson Corporation 376,000 23
9,000 W.H. Brady Company 250,313 15
- ---------------------------------------------------------------------------------------
2,038,813 125
- ---------------------------------------------------------------------------------------
MEDIA--5.5%
10,000 *ADVO, Inc. 281,875 17
18,300 *AirTouch Communications, Inc. 1,069,406 66
8,000 *America Online, Inc. 848,000 52
25,800 CBS Corporation 819,150 50
33,400 *Cox Communications, Inc. - Class "A" 1,617,813 99
29,000 Gannett Company, Inc. 2,060,813 127
8,800 *Tele-Communications, Inc. Liberty Media Group -
Series "A" 341,550 21
7,500 Time-Warner, Inc. 640,781 39
12,000 Walt Disney Company 1,260,750 78
- ---------------------------------------------------------------------------------------
8,940,138 549
- ---------------------------------------------------------------------------------------
MEDICAL PRODUCTS--2.2%
32,000 Abbott Laboratories 1,308,000 80
17,000 Biomet, Inc. 562,063 35
25,000 Life Technologies, Inc. 784,375 48
14,200 Perkin-Elmer Corporation 883,063 54
- ---------------------------------------------------------------------------------------
3,537,501 217
- ---------------------------------------------------------------------------------------
MISCELLANEOUS--1.1%
10,800 Ethan Allen Interiors, Inc. 539,325 33
27,900 Service Corporation International 1,196,213 74
- ---------------------------------------------------------------------------------------
1,735,538 107
- ---------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.3%
12,000 Bemis Company, Inc. 490,500 30
- ---------------------------------------------------------------------------------------
PIPELINE--.1%
7,000 MCN Energy Group, Inc. 174,125 11
- ---------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
RETAIL--7.1%
19,500 *Barnes & Noble, Inc. $ 730,031 $ 45
41,300 CVS Corporation 1,608,119 99
36,000 Dayton Hudson Corporation 1,746,000 107
26,000 Home Depot, Inc. 2,159,625 133
46,000 *OfficeMax, Inc. 759,000 47
26,000 *Petco Animal Supplies, Inc. 518,375 32
27,500 *Staples, Inc. 795,781 49
32,000 *Stein Mart, Inc. 432,000 27
40,000 Wal-Mart Stores, Inc. 2,430,000 149
19,200 *West Marine, Inc. 345,600 21
- ---------------------------------------------------------------------------------------
11,524,531 709
- ---------------------------------------------------------------------------------------
SOFTWARE/SERVICES--9.9%
25,000 *American Management Systems, Inc. 748,438 46
26,000 Automatic Data Processing, Inc. 1,894,750 116
20,000 *BISYS Group, Inc. 820,000 50
30,000 *Computer Sciences Corporation 1,920,000 118
19,300 *DST Systems, Inc. 1,080,800 66
35,000 First Data Corporation 1,165,938 72
33,000 *Microsoft Corporation 3,576,375 220
26,000 *PeopleSoft, Inc. 1,222,000 75
29,800 *Policy Management Systems Corporation 1,169,650 72
44,700 *Sterling Software, Inc. 1,321,444 81
16,000 *Synopsys, Inc. 732,000 45
18,000 *Systems & Computer Technology Corporation 486,000 30
- ---------------------------------------------------------------------------------------
16,137,395 991
- ---------------------------------------------------------------------------------------
TELEPHONE--3.9%
38,000 Bell Atlantic Corporation 1,733,750 107
9,000 Century Telephone Enterprises, Inc. 412,875 25
54,100 SBC Communications, Inc. 2,164,000 133
40,700 *WorldCom, Inc. 1,971,406 121
- ---------------------------------------------------------------------------------------
6,282,031 386
- ---------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--1.3%
23,750 Air Express International Corporation $ 635,313 $ 39
20,000 C.H. Robinson Worldwide, Inc. 497,500 31
12,000 Union Pacific Corporation 529,500 33
22,500 Werner Enterprises, Inc. 428,906 26
- ---------------------------------------------------------------------------------------
2,091,219 129
- ---------------------------------------------------------------------------------------
TRAVEL & LEISURE--1.8%
18,000 *Mesaba Holdings, Inc. 414,000 25
40,000 *Mirage Resorts, Inc. 852,500 52
60,000 Southwest Airlines Company 1,777,500 109
- ---------------------------------------------------------------------------------------
3,044,000 186
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $104,761,189) 157,920,082 9,707
- ---------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--2.8%
$ 4,575M Paine Webber, Inc., 5.75%, 7/1/98 (collateralized
by U.S. Treasury Bond, 8.75%, 8/15/20, valued
at $4,687,317)(cost $4,575,000) 4,575,000 281
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $109,336,189) 99.9% 162,495,082 9,988
OTHER ASSETS, LESS LIABILITIES .1 195,232 12
- ---------------------------------------------------------------------------------------
NET ASSETS 100.0% $162,690,314 $10,000
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
24
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--91.7%
APPAREL/TEXTILES--2.3%
$ 350M Pillowtex Corp., 9%, 2007 $ 361,812 $ 55
1,100M Polymer Group, Inc., 9%, 2007 1,113,750 170
- -------------------------------------------------------------------------------------
1,475,562 225
- -------------------------------------------------------------------------------------
AUTOMOTIVE--2.2%
700M Collins & Aikman Products Co., 11.50%, 2006 777,000 119
700M Walbro Corp., 9.875%, 2005 684,250 105
- -------------------------------------------------------------------------------------
1,461,250 224
- -------------------------------------------------------------------------------------
BUILDING MATERIALS--.8%
500M Falcon Building Products Corp., 9.50%, 2007 493,750 76
- -------------------------------------------------------------------------------------
CHEMICALS--2.6%
600M Huntsman Polymers Corp., 11.75%, 2004 657,000 100
1,025M Hydrochem Industrial Services, Inc., 10.375%,
2007 1,045,500 160
- -------------------------------------------------------------------------------------
1,702,500 260
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS--3.5%
700M Commemorative Brands, Inc., 11%, 2007 709,625 109
800M Corning Consumer Products Co., 9.625%, 2008 + 796,000 122
700M Herff Jones, Inc., 11%, 2005 763,000 117
- -------------------------------------------------------------------------------------
2,268,625 348
- -------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--3.0%
1,000M Radnor Holdings, Inc., 10%, 2003 + 1,045,000 160
900M Tekni-Plex, Inc., 9.25%, 2008 900,000 138
- -------------------------------------------------------------------------------------
1,945,000 298
- -------------------------------------------------------------------------------------
DURABLE GOODS MANUFACTURING--3.2%
750M Clark Material Handling, Inc., 10.75%, 2006 811,875 124
800M Columbus McKinnon Corp., 8.50%, 2008 + 794,000 121
500M Numatics, Inc., 9.625%, 2008 + 507,500 78
- -------------------------------------------------------------------------------------
2,113,375 323
- -------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRIC & GAS UTILITIES--1.5%
$ 1,000M AES Corp., 8.50%, 2007 $ 1,012,500 $ 155
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--.9%
550M Amphenol Corp., 9.875%, 2007 578,875 89
- -------------------------------------------------------------------------------------
ENERGY--5.2%
800M Chesapeake Energy Corp., 9.625%, 2005 + 802,000 123
800M Giant Industries, Inc., 9.75%, 2003 834,000 128
1,000M Veritas DGC, Inc., 9.75%, 2003 1,092,500 167
650M Vintage Petroleum, Inc., 9%, 2005 671,125 103
- -------------------------------------------------------------------------------------
3,399,625 521
- -------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--1.5%
1,000M Outboard Marine Corp., 10.75%, 2008 + 1,010,000 154
- -------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--4.0%
320M Doane Products Co., 10.625%, 2006 348,800 53
1,000M International Home Foods, Inc., 10.375%, 2006 1,090,000 167
600M Van de Kamps, Inc., 12%, 2005 684,000 105
500M Windy Hill Pet Food Co., 9.75%, 2007 525,000 80
- -------------------------------------------------------------------------------------
2,647,800 405
- -------------------------------------------------------------------------------------
GAMING/LODGING--2.7%
750M Casino America, Inc., 12.50%, 2003 846,562 129
900M Empress Entertainment, Inc., 8.125%, 2006 + 902,250 138
- -------------------------------------------------------------------------------------
1,748,812 267
- -------------------------------------------------------------------------------------
HEALTHCARE--6.9%
700M Dade International, Inc., 11.125%, 2006 780,500 119
700M Fisher Scientific International, Inc., 9%, 2008 693,000 106
900M Genesis Health Ventures, Inc., 9.75%, 2005 931,500 142
600M ICN Pharmaceuticals, Inc., 9.25%, 2005 636,000 97
400M Integrated Health Services, Inc., 10.25%, 2006 428,500 66
1,000M Tenet Healthcare Corp., 8.625%, 2007 1,032,500 158
- -------------------------------------------------------------------------------------
4,502,000 688
- -------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
INFORMATION TECHNOLOGY/OFFICE EQUIPMENT--1.2%
$ 750M General Binding Corp., 9.375%, 2008 + $ 761,250 $ 116
- -------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--11.5%
500M Diamond Cable Communications PLC, 0% - 11.75%,
2005 412,500 63
1,075M Echostar Communications Corp., 0% - 12.875%, 2004 1,048,125 160
500M Grupo Televisa, SA, 11.875%, 2006 557,500 85
500M Rogers Cablesystems, Inc., 10%, 2005 557,500 85
1,000M Salem Communications Corp., 9.50%, 2007 1,046,250 160
500M Sinclair Broadcasting Group, Inc., 9%, 2007 518,125 79
700M Star Choice Communications, Inc., 13%, 2005 717,500 110
1,000M Sullivan Broadcasting Co., Inc., 10.25%, 2005 1,140,000 174
900M TCI Satellite Entertainment, Inc., 10.875%, 2007 897,750 137
600M World Color Press, Inc., 9.125%, 2003 622,500 95
- -------------------------------------------------------------------------------------
7,517,750 1,148
- -------------------------------------------------------------------------------------
MEDIA (OTHER)--3.9%
1,500M Affiliated Newspaper Investments, Inc.,
0% - 13.25%, 2006 1,470,000 225
500M Garden State Newspapers, Inc., 12%, 2004 555,000 85
500M Outdoor Systems, Inc., 8.875%, 2007 518,750 79
- -------------------------------------------------------------------------------------
2,543,750 389
- -------------------------------------------------------------------------------------
MINING/METALS--6.6%
900M Commonwealth Aluminum Corp., 10.75%, 2006 949,500 145
1,000M CSN Iron, SA, 9.125%, 2007 + 812,500 124
750M WCI Steel, Inc., 10%, 2004 770,625 118
700M Wells Aluminum Corp., 10.125%, 2005 738,500 113
1,000M Wheeling-Pittsburgh Corp., 9.25%, 2007 1,020,000 156
- -------------------------------------------------------------------------------------
4,291,125 656
- -------------------------------------------------------------------------------------
MISCELLANEOUS--3.6%
800M Allied Waste North America, Inc., 10.25%, 2006 879,000 134
950M Loomis Fargo & Co., 10%, 2004 954,750 146
450M Pierce-Leahy Corp., 11.125%, 2006 505,125 77
- -------------------------------------------------------------------------------------
2,338,875 357
- -------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
PAPER/FOREST PRODUCTS--4.8%
$ 500M Container Corp., 11.25%, 2004 $ 547,500 $ 84
650M Riverwood International Corp., 10.25%, 2006 667,063 102
800M S.D. Warren Co., Inc., 12%, 2004 886,000 135
1,000M Stone Container Corp., 10.75%, 2002 1,063,750 163
- -------------------------------------------------------------------------------------
3,164,313 484
- -------------------------------------------------------------------------------------
REAL ESTATE/CONSTRUCTION--1.1%
800M Cathay International, Ltd., 13%, 2008 + 696,000 106
- -------------------------------------------------------------------------------------
RESTAURANTS--.8%
500M Perkins Family Restaurants, L.P., 10.125%, 2007 529,375 81
- -------------------------------------------------------------------------------------
RETAIL-FOOD/DRUG--2.9%
1,000M Randall's Food Markets, Inc., 9.375%, 2007 1,057,500 162
820M Stater Brothers Holdings, Inc., 9%, 2004 840,500 129
- -------------------------------------------------------------------------------------
1,898,000 291
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS--13.5%
650M 21st Century Telecommunications Group, Inc.,
0% - 12.25%, 2008 + 368,875 56
1,000M Comcast Cellular Holdings, Inc., 9.50%, 2007 1,042,500 159
1,500M E Spire Communications, Inc., 0% - 13%, 2005 1,248,750 191
1,000M McCaw International, Ltd., 0% - 13%, 2007 666,250 102
1,500M McLeodUSA, Inc., 0% - 10.50%, 2007 1,123,125 172
1,250M Netia Holdings BV, 0% - 11.25%, 2007 828,125 127
800M Nextlink Communications, LLC, 9%, 2008 + 801,000 122
700M Paging Network, Inc., 10%, 2008 726,250 111
1,100M Powertel, Inc., 0% - 12%, 2006 847,000 130
1,000M Qwest Communications International, Inc.,
0% - 9.47%, 2007 750,000 115
700M RCN Corp., 0% - 11%, 2008 419,125 64
- -------------------------------------------------------------------------------------
8,821,000 1,349
- -------------------------------------------------------------------------------------
TRANSPORTATION--1.5%
1,000M American Commercial Lines, LLC, 10.25%, 2008 + 1,016,250 155
- -------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $58,026,217) 59,937,362 9,165
- -------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
SHARES FOR EACH
OR $10,000 OF
WARRANTS SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--.2%
MEDIA (CABLE TV/BROADCASTING)--.1%
2,100 *Echostar Communications Corp. - Class "A" $ 50,531 $ 7
- -------------------------------------------------------------------------------------
MEDIA (OTHER)--.1%
1,000 *Affiliated Newspaper Investments, Inc. 90,000 14
- -------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $20,963) 140,531 21
- -------------------------------------------------------------------------------------
PREFERRED STOCKS--2.7%
DURABLE GOODS MANUFACTURING--.5%
300 Day International Group, Inc., 12.25% 305,250 47
- -------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--1.4%
830 Time Warner, Inc., 10.25%, PIK, Series "K" 926,488 142
- -------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.8%
10,800 S.D. Warren Co., Inc., 14%, Series "B" 540,000 82
- -------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $1,417,107) 1,771,738 271
- -------------------------------------------------------------------------------------
WARRANTS--.5%
GAMING/LODGING--.0%
200 *Goldriver Finance Corp., Liquidating Trust 200 --
- -------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--.1%
16,212 *Star Choice Communications, Inc. (expiring
12/15/05) + 42,557 6
- -------------------------------------------------------------------------------------
MINING/METALS--.0%
800 *Gulf State Steel Acquisition Corp. (expiring
4/15/03) + 8 --
- -------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.1%
10,800 *S.D. Warren Co., Inc. (expiring 12/15/06) + 54,000 8
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.3%
1,500 *E Spire Communications, Inc. (expiring 11/1/05)
+ 232,500 36
1,000 *McCaw International, Ltd. (expiring 4/15/07) + 5,000 1
- -------------------------------------------------------------------------------------
237,500 37
- -------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $2,500) 334,265 51
- -------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
UNITS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITS--.8%
MEDIA (CABLE TV/BROADCASTING)
1,100 Diva Systems Corp. (cost $610,188) (a)+ $ 511,500 $ 78
- -------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.2%
$ 1,200M Ford Motor Credit Corp., 5.61%, 7/2/98 1,199,813 184
250M General Electric Capital Corp., 5.70%, 7/2/98 249,960 38
- -------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$1,449,773) 1,449,773 222
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $61,526,748) 98.1% 64,145,169 9,808
OTHER ASSETS, LESS LIABILITIES 1.9 1,252,698 192
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $65,397,867 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
+ See Note 4
(a) Each unit consists of one 0%-12.625% senior discount note due 2008 and three
warrants to buy three shares of common stock.
See notes to financial statements
30
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--91.4%
UNITED STATES--30.9%
14,150 Abbott Laboratories $ 578,381 $ 64
11,550 American Express Company 1,316,700 147
6,132 American International Group, Inc. 895,272 100
16,100 *Analog Devices, Inc. 395,456 44
16,600 *Cisco Systems, Inc. 1,528,237 170
3,010 Citicorp 449,243 50
8,450 Coca-Cola Company 722,475 80
13,000 CVS Corporation 506,188 56
6,750 Duke Energy Corporation 399,938 45
11,700 Exxon Corporation 834,356 93
13,100 Fannie Mae 795,825 89
7,525 First Data Corporation 250,677 28
10,000 Gannett Company, Inc. 710,625 79
14,700 General Electric Company 1,337,700 149
10,560 Gillette Company 598,620 67
7,675 Hertz Corporation - Class "A" 340,098 38
11,870 Hewlett-Packard Company 710,716 79
9,750 Home Depot, Inc. 809,859 90
6,010 Intel Corporation 445,491 50
10,950 Johnson & Johnson 807,563 90
6,850 Kimberly-Clark Corporation 314,244 35
7,458 Lucent Technologies, Inc. 620,412 69
13,750 McDonald's Corporation 948,750 106
9,500 MCI Communications Corporation 552,188 62
8,250 *Microsoft Corporation 894,094 100
8,700 *Mirage Resorts, Inc. 185,419 21
9,750 Nabisco Holdings Corporation - Class "A" 351,609 39
10,000 *PeopleSoft, Inc. 470,000 52
4,400 Pfizer, Inc. 478,225 53
17,780 Pharmacia & Upjohn, Inc. 820,103 91
8,085 Procter & Gamble Company 736,240 82
16,880 SBC Communications, Inc. 675,200 75
7,930 Schlumberger, Ltd. 541,718 60
- -------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED STATES (continued)
17,100 Southwest Airlines Company $ 506,588 $ 56
15,475 State Street Corporation 1,075,513 120
9,100 Travelers Group, Inc. 551,688 61
12,200 US Bancorp 524,600 58
21,550 Wal-Mart Stores, Inc. 1,309,163 146
4,780 Walt Disney Company 502,199 56
18,450 Warner-Lambert Company 1,279,969 143
- -------------------------------------------------------------------------------------
27,771,342 3,093
- -------------------------------------------------------------------------------------
UNITED KINGDOM--11.4%
27,000 B.A.T Industries PLC 270,297 30
38,746 Bass PLC 725,992 81
31,021 BOC Group PLC 423,384 47
49,983 British Petroleum PLC 728,882 81
63,050 BTR PLC 178,835 20
41,500 Compass Group PLC 477,080 53
13,961 Cookson Group PLC 47,985 5
56,716 Diageo PLC 671,875 75
30,100 Great Universal Stores PLC 396,751 44
31,000 HSBC Holdings PLC 751,025 84
23,700 Marks & Spencer PLC 215,708 24
40,613 PowerGen PLC 562,429 63
35,579 Reckitt & Colman PLC 679,118 76
51,409 Royal & Sun Alliance Insurance Group PLC 524,516 58
32,000 Royal Bank of Scotland Group PLC 555,277 62
7,500 Seibe PLC 149,789 17
72,675 Smithkline Beecham PLC 886,998 99
29,000 Standard Chartered PLC 329,510 37
69,200 WPP Group PLC 453,468 51
27,800 Zeneca Group PLC 1,193,004 133
- -------------------------------------------------------------------------------------
10,221,923 1,140
- -------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
FRANCE--9.3%
3,940 Alcatel Alsthom $ 802,203 $ 89
6,513 Assurances Generales de France 368,522 41
6,380 Axa-Uap 717,562 80
14,542 Banque Nationale de Paris 1,188,176 132
2,559 Compagnie de Saint Gobain 474,466 53
7,400 Michelin (C.D.G.E.) - Class "B" 427,156 48
6,699 Rhone-Poulenc SA - Series "A" 377,828 42
5,268 Societe Generale Paris 1,095,244 122
7,000 Societe Nationale Elf Aquitaine SA 984,117 110
5,894 Total SA - Class "B" 766,235 85
5,450 Vivendi 1,163,730 130
- -------------------------------------------------------------------------------------
8,365,239 932
- -------------------------------------------------------------------------------------
GERMANY--8.1%
1,500 Adidas-Salomon AG 259,275 29
32,190 Bayer AG 1,660,293 185
14,020 Dresdner Bank AG 755,744 84
9,520 Hoechst AG 475,199 53
2,280 Karstadt AG 1,101,452 123
2,540 MAN AG 987,837 110
9,900 Mannesmann AG 1,004,241 112
180 SAP AG 109,195 12
5,830 Siemens AG 354,638 39
8,900 Veba AG 606,470 68
- -------------------------------------------------------------------------------------
7,314,344 815
- -------------------------------------------------------------------------------------
NETHERLANDS--5.5%
18,271 ING Groep NV 1,196,376 133
6,700 Koninklijke KPN NV 257,892 29
13,700 Philips Electronics NV 1,151,644 128
5,833 PolyGram NV 297,639 33
14,600 Royal Dutch Petroleum Company - NY Shares 800,262 89
- -------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS (continued)
6,700 *TNT Post Group NV $ 171,269 $ 19
13,000 Unilever NV-CVA 1,031,450 115
- -------------------------------------------------------------------------------------
4,906,532 546
- -------------------------------------------------------------------------------------
JAPAN--5.2%
13,000 Dai Nippon Printing Company, Ltd. 207,479 23
60,000 Daiwa Securities Company, Ltd. 258,096 29
14,000 Eisai Company, Ltd. 190,653 21
9,000 Fuji Machine Manufacturing Company 238,642 27
10,000 Fuji Photo Film 348,020 39
26,000 JUSCO Company, Ltd. 476,780 53
5,600 Mabuchi Motor Company, Ltd. 355,081 40
7,200 Matsumotokiyoshi Company, Ltd. 253,168 28
20,000 Matsushita Electric Industrial Company, Ltd. 321,360 36
56 Nippon Telegraph & Telephone Corporation 464,027 52
2,000 Rohm Company, Ltd. 205,353 23
22,000 Sanwa Bank, Ltd. 196,720 22
6,400 Sony Corporation 551,068 61
300 Square Company, Ltd. 7,998 1
40,000 Takashimaya Company, Ltd. 301,472 34
43,000 Toshiba Corporation 175,672 20
4,000 Uni-Charm Corporation 148,142 16
- -------------------------------------------------------------------------------------
4,699,731 525
- -------------------------------------------------------------------------------------
SWITZERLAND--3.0%
100 Compagnie Financiere Richemont AG 130,867 15
2,240 Credit Suisse Group 498,414 56
580 Holderbank Financiere Glarus AG 737,995 82
457 Nestle AG Regd 977,987 109
220 Novartis AG 366,374 41
- -------------------------------------------------------------------------------------
2,711,637 303
- -------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
AUSTRALIA--2.7%
60,690 *AMP, Ltd. $ 710,297 $ 79
62,500 Australian & New Zealand Banking Group, Ltd. 431,150 48
83,714 CSR, Ltd. 241,565 27
309 Goodman Fielder, Ltd. 450 --
100,126 News Corporation, Ltd. 817,187 91
64,411 WMC, Ltd. 193,845 22
- -------------------------------------------------------------------------------------
2,394,494 267
- -------------------------------------------------------------------------------------
SPAIN--2.2%
4,700 Banco Popular Espanol SA 401,568 45
16,200 Banco Santander SA 415,337 46
25,000 Endesa SA 547,880 61
4,472 Telefonica SA (ADR) 621,887 69
- -------------------------------------------------------------------------------------
1,986,672 221
- -------------------------------------------------------------------------------------
SWEDEN--2.2%
6,600 ForeningsSparbanken AB - Class "A" 198,622 22
124,400 *Nordbanken Holding AB 912,524 102
10,090 Pharmacia & Upjohn, Inc. 464,333 52
12,410 Volvo AB 369,578 41
- -------------------------------------------------------------------------------------
1,945,057 217
- -------------------------------------------------------------------------------------
CANADA--1.9%
13,400 Canadian Imperial Bank of Commerce 434,662 48
10,100 Canadian National Railway Company 536,562 60
25,700 Canadian Pacific, Ltd. 729,237 81
- -------------------------------------------------------------------------------------
1,700,461 189
- -------------------------------------------------------------------------------------
FINLAND--1.6%
43,730 Metsa-Serla OY - Class "B" 422,436 47
9,900 Nokia Corporation - Class "A" (ADR) 718,369 80
4,700 Nokia OYJ - Class "A" 345,658 38
- -------------------------------------------------------------------------------------
1,486,463 165
- -------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
ITALY--1.5%
180,433 Telecom Italia SpA $ 1,328,203 $ 148
- -------------------------------------------------------------------------------------
DENMARK--1.4%
3,810 Novo - Nordisk A/S 525,210 59
8,450 Unidanmark A/S - Class "A" Regd 759,355 85
- -------------------------------------------------------------------------------------
1,284,565 144
- -------------------------------------------------------------------------------------
IRELAND--1.1%
44,802 Allied Irish Banks PLC 647,725 72
124,331 Jefferson Smurfit Group PLC 374,435 42
- -------------------------------------------------------------------------------------
1,022,160 114
- -------------------------------------------------------------------------------------
MEXICO--1.1%
107,900 *Banacci - Class "B" 204,363 23
65,200 Coca-Cola Femsa SA - Series "L" 114,054 13
14,500 *Grupo Televisa SA 273,012 30
78,000 Kimberly Clark de Mexico - Class "A" 270,816 30
2,200 Telefonos de Mexico SA - Series "L" (ADR) 105,737 12
- -------------------------------------------------------------------------------------
967,982 108
- -------------------------------------------------------------------------------------
NEW ZEALAND--.5%
19,200 Telecom Corporation of New Zealand - I/R 41,061 5
26,740 Telecom Corporation of New Zealand, Ltd. 110,209 12
8,450 Telecom Corporation of New Zealand, Ltd. (ADR) 276,737 31
- -------------------------------------------------------------------------------------
428,007 48
- -------------------------------------------------------------------------------------
HONG KONG--.4%
69,000 Cheung Kong Holdings, Ltd. 339,273 38
- -------------------------------------------------------------------------------------
SINGAPORE--.3%
129,000 Overseas Union Bank, Ltd. Foreign Regd 282,510 31
- -------------------------------------------------------------------------------------
ARGENTINA--.3%
8,200 Telefonica de Argentina SA - Class "B" (ADR) 265,987 30
- -------------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
NORWAY--.3%
15,420 Saga Petroleum ASA - Series "A" $ 237,121 $ 26
- -------------------------------------------------------------------------------------
CHILE--.1%
5,000 Cia de Telecomunicaciones de Chile SA (ADR) 101,562 11
- -------------------------------------------------------------------------------------
SOUTH KOREA--.1%
6,600 Pohang Iron & Steel Company, Ltd. 79,200 9
- -------------------------------------------------------------------------------------
TAIWAN--.1%
3,600 *Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) 60,750 7
- -------------------------------------------------------------------------------------
PHILIPPINES--.1%
187,200 Ayala Land, Inc. 53,857 6
- -------------------------------------------------------------------------------------
INDIA--.1%
3,200 Ranbaxy Laboratories, Ltd. (GDR) 51,200 6
- -------------------------------------------------------------------------------------
THAILAND--.0%
18,500 Thai Farmers Bank Public Company, Ltd. Foreign
Regd 16,291 2
- -------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $61,751,063) 82,022,563 9,141
- -------------------------------------------------------------------------------------
PREFERRED STOCKS--2.7%
BRAZIL--1.5%
535,900 Banco Itau SA 303,480 34
293,000 Companhia Cervejaria Brahma 181,244 20
7,774,138 Companhia Energetic de Minas Gerais (CEMIG) 240,221 27
1,168,400 Petroleo Brasileiro SA - Petrobras 217,089 24
3,193,000 Telecomunicacoes Brasileiras SA 351,868 39
962,100 *Telesp Celular SA - Class "B" 80,624 9
5,000 *Vale Do Rio Doce - Class "B" -- --
- -------------------------------------------------------------------------------------
1,374,526 153
- -------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
SHARES, AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
GERMANY--1.2%
5,290 Henkel KGaA $ 526,059 $ 59
3,750 Hornbach Holdings AG 343,830 39
240 SAP AG 163,144 18
- -------------------------------------------------------------------------------------
1,033,033 116
- -------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $2,335,900) 2,407,559 269
- -------------------------------------------------------------------------------------
WARRANTS--.0%
FRANCE--.0%
233 *AGF (Allianz) BCVG AGF (expiring 6/15/00) 1,355 --
- -------------------------------------------------------------------------------------
THAILAND--.0%
1,500 *Siam Commercial Bank (expiring 12/31/02) -- --
- -------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $0) 1,355 --
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--4.4%
$ 400M U.S. Treasury Bills, 4.99%, 7/23/98 (cost
$3,949,951) 3,949,951 440
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.8%
1,632M J.P. Morgan Securities, Inc., 5.75%, 7/1/98
(collateralized by U.S. Treasury Securities,
due 2/15/06, valued at $1,671,230) (cost
$1,632,000) 1,632,000 182
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $69,668,914) 100.3% 90,013,428 10,032
EXCESS OF LIABILITIES OVER OTHER ASSETS (.3) (285,645) (32)
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 89,727,783 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
38
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1998
Sector diversification of the portfolio was as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
PERCENTAGE
SECTOR OF NET ASSETS VALUE
- -------------------------------------------------------------------
<S> <C> <C>
Banks.................................. 13.9% $12,427,053
Drugs.................................. 10.7 9,576,952
Retail................................. 6.4 5,714,371
Food/Beverage/Tobacco.................. 5.8 5,178,300
Telephone.............................. 5.7 5,152,558
Energy Sources......................... 5.1 4,568,062
Insurance.............................. 4.7 4,255,291
Communication Equipment................ 4.5 4,014,879
Media.................................. 3.7 3,342,233
Household Products..................... 3.6 3,273,239
Electronics............................ 2.9 2,580,054
Machinery & Manufacturing.............. 2.7 2,409,555
Financial Services..................... 2.6 2,370,621
Electric Utilities..................... 2.6 2,356,938
Electrical Equipment................... 2.4 2,197,208
Travel & Leisure....................... 2.4 2,117,837
Software Services...................... 2.1 1,895,108
Business Services...................... 2.0 1,802,502
Metals & Minerals...................... 1.7 1,485,506
Transportation......................... 1.4 1,265,799
Pipeline............................... 1.3 1,163,730
Entertainment Products................. 1.3 1,158,363
Computers & Office Equipment........... 1.0 934,373
Paper/Forest Products.................. .9 796,871
Automotive............................. .9 796,734
Medical Products....................... .6 578,381
Energy Services........................ .6 541,718
Chemicals.............................. .5 423,384
Real Estate Companies.................. .1 53,857
U.S. Treasury Bills.................... 4.4 3,949,951
Repurchase Agreement................... 1.8 1,632,000
- -------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS 100.3 90,013,428
EXCESS OF LIABILITIES OVER OTHER ASSETS (.3) (285,645)
- -------------------------------------------------------------------
NET ASSETS 100.0% $89,727,783
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
See notes to financial statements
39
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--88.2%
AEROSPACE/DEFENSE--4.5%
$ 250M Lockheed Martin Corp., 7.25%, 2006 $ 265,844 $ 142
250M Rockwell International Corp., 8.375%, 2001 264,391 141
300M Thiokol Corp., 6.625%, 2008 302,148 162
- --------------------------------------------------------------------------------------
832,383 445
- --------------------------------------------------------------------------------------
APPAREL/TEXTILES--1.4%
260M Westpoint Stevens, Inc., 7.875%, 2008 + 262,925 141
- --------------------------------------------------------------------------------------
AUTOMOTIVE--1.3%
250M Navistar International, Inc., 7%, 2003 250,625 134
- --------------------------------------------------------------------------------------
CHEMICALS--3.2%
250M Du Pont (E.I.) de Nemours & Co., 8.125%, 2004 276,111 148
300M Lubrizol Corp., 7.25%, 2025 330,850 177
- --------------------------------------------------------------------------------------
606,961 325
- --------------------------------------------------------------------------------------
CONGLOMERATES--3.2%
300M Hanson Overseas BV, 7.375%, 2003 316,008 169
250M Tenneco, Inc., 7.875%, 2027 281,026 150
- --------------------------------------------------------------------------------------
597,034 319
- --------------------------------------------------------------------------------------
CONSUMER PRODUCTS--1.4%
250M Mattel, Inc., 6.75%, 2000 252,778 135
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--1.6%
300M Kroger Co., 7%, 2018 308,446 165
- --------------------------------------------------------------------------------------
ELECTRIC & GAS UTILITIES--10.0%
250M Baltimore Gas and Electric Co., 6.50%, 2003 255,184 136
265M Consumers Energy Co., 6.375%, 2008 + 264,195 141
250M Duke Energy Corp., 5.875%, 2003 249,495 133
200M Kansas Gas & Electric Co., 7.60%, 2003 212,941 114
150M Niagara Mohawk Power Corp., 7.625%, 2005 153,000 82
75M Old Dominion Electric Cooperative, 7.97%, 2002 78,506 42
- --------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRIC & GAS UTILITIES (continued)
$ 300M Pennsylvania Power & Light Co., 6.875%, 2003 $ 309,475 $ 166
250M Philadelphia Electric Co., 8%, 2002 265,144 142
75M Southwestern Electric Power Co., 7%, 2007 79,573 43
- --------------------------------------------------------------------------------------
1,867,513 999
- --------------------------------------------------------------------------------------
ENERGY--4.7%
315M Baroid Corp., 8%, 2003 340,343 182
275M Occidental Petroleum Corp., 6.50%, 2005 277,155 148
250M Phillips Petroleum Co., 7.20%, 2023 252,795 135
- --------------------------------------------------------------------------------------
870,293 465
- --------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--1.7%
300M Walt Disney Company, 6.75%, 2006 313,770 168
- --------------------------------------------------------------------------------------
FINANCIAL SERVICES--12.8%
40M BankAmerica Corp., 9.50%, 2001 43,494 23
300M Chemical Bank, Inc., 7%, 2005 313,949 168
200M Citicorp, 8%, 2003 214,978 115
300M First Union Corp., 8.125%, 2002 321,577 172
250M Fleet Capital, 7.92%, 2026 270,991 145
300M Key Corp., 7.50%, 2006 322,508 172
250M Mellon Bank NA, 6.50%, 2005 255,871 137
50M Meridian Bancorp, 7.875%, 2002 53,162 28
75M Morgan Guaranty Trust Co., 7.375%, 2002 78,283 42
200M NationsBank Corp., 8.50%, 1999 203,312 109
300M NationsBank Corp., 8.125%, 2002 322,333 172
- --------------------------------------------------------------------------------------
2,400,458 1,283
- --------------------------------------------------------------------------------------
FOOD SERVICE--1.4%
250M McDonald's Corporation, 6.625%, 2005 256,751 137
- --------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--4.3%
250M Anheuser-Busch Cos., Inc., 7%, 2005 256,891 137
25M Coca-Cola Enterprises, Inc., 7.875%, 2002 26,439 14
- --------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
FOOD/BEVERAGE/TOBACCO (continued)
$ 300M Hershey Foods Corp., 6.70%, 2005 $ 311,921 $ 167
200M Philip Morris Cos., Inc., 7.125%, 2002 205,882 110
- --------------------------------------------------------------------------------------
801,133 428
- --------------------------------------------------------------------------------------
GAS TRANSMISSION--3.3%
300M Columbia Gas System, Inc., 6.80%, 2005 308,738 165
300M Enron Corp., 7.125%, 2007 314,285 168
- --------------------------------------------------------------------------------------
623,023 333
- --------------------------------------------------------------------------------------
HEALTHCARE--1.6%
300M Warner-Lambert Co., 6%, 2008 300,542 161
- --------------------------------------------------------------------------------------
INSURANCE--1.4%
250M First Colony Corp., 6.625%, 2003 257,322 138
- --------------------------------------------------------------------------------------
INVESTMENT/FINANCE COMPANIES--5.2%
300M Associates Corp. of North America, 7.875%, 2001 316,951 170
300M General Electric Capital Corp., 7.875%, 2006 337,444 180
300M General Motors Acceptance Corp., 6.625%, 2005 309,166 165
- --------------------------------------------------------------------------------------
963,561 515
- --------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--4.8%
300M New York Times Co., Inc., 7.625%, 2005 326,212 174
250M News America Holdings, Inc., 8.50%, 2005 277,230 148
300M PanAmSat Corp., 6.375%, 2008 + 298,653 160
- --------------------------------------------------------------------------------------
902,095 482
- --------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--1.4%
250M Temple Inland, Inc., 9%, 2001 269,387 144
- --------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--3.5%
300M Federated Department Stores, Inc., 7.45%, 2017 323,338 173
300M Wal-Mart Stores, Inc., 8%, 2006 338,951 181
- --------------------------------------------------------------------------------------
662,289 354
- --------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY--3.6%
$ 250M International Business Machines Corp., 7%, 2025 $ 267,651 $ 143
100M Raytheon Co., 6.55%, 2010 101,106 54
275M Xerox Corp., 7.20%, 2016 299,014 160
- --------------------------------------------------------------------------------------
667,771 357
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS--10.2%
350M MCI Communication Corp., 7.50%, 2004 372,460 199
250M New Jersey Bell Telephone Co., 7.375%, 2012 254,609 136
300M New York Telephone Co., 7.25%, 2024 311,085 166
200M Pacific Bell Telephone Co., 7%, 2004 209,225 112
300M TCI Communications, Inc., 6.375%, 2003 302,708 162
300M Teleport Communications Group, Inc., 0% -
11.125%, 2007 256,500 137
184M WorldCom, Inc., 8.875%, 2006 200,100 107
- --------------------------------------------------------------------------------------
1,906,687 1,019
- --------------------------------------------------------------------------------------
TRANSPORTATION--1.7%
300M Norfolk Southern Corp., 7.35%, 2007 322,216 172
- --------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $15,989,291) 16,495,963 8,819
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--8.0%
1,500M U.S. Treasury Note, 5.50%, 2003 (cost $1,496,367) 1,500,470 802
- --------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--1.6%
$ 100M Ford Motor Credit Corp., 5.61%, 7/2/98 $ 99,984 $ 53
200M Merrill Lynch & Co., Inc., 5.82%, 7/7/98 199,806 107
- --------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$299,790) 299,790 160
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $17,785,448) 97.8% 18,296,223 9,781
OTHER ASSETS, LESS LIABILITIES 2.2 409,957 219
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $18,706,180 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
+ See Note 4
See notes to financial statements
44
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL EFFECTIVE $10,000 OF
AMOUNT SECURITY YIELD* VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS--53.3%
Agency For International Development-Israel:
$ 570M 2/15/2007 5.74% $ 349,874 $ 154
119M 3/15/2007 5.74 72,685 32
1,513M 8/15/2007 5.73 903,592 399
1,000M 11/15/2007 5.73 588,906 260
980M 2/15/2008 5.76 567,382 251
493M Federal Judiciary Office Building, 2/15/2007 5.91 298,263 132
Federal National Mortgage Association:
215M 2/1/2008 5.88 123,415 54
1,030M 8/1/2008 5.90 572,994 253
Government Trust Certificate-Israel Trust:
181M 10/1/2007 5.75 107,034 47
1,566M 11/15/2007 5.75 920,550 406
3,304M 11/15/2007 5.75 1,942,207 858
Government Trust Certificate-Turkey Trust:
584M 11/15/2007 5.75 343,295 152
182M 11/15/2007 5.75 106,986 47
586M International Bank for Reconstruction &
Development, 8/15/2007 5.94 343,477 152
4,600M Resolution Funding Corporation, 10/15/2007 5.67 2,735,744 1,208
Tennessee Valley Authority:
2,600M 11/1/2007 5.77 1,528,418 675
1,000M 4/15/2008 5.82 570,212 252
- ----------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS (cost $10,999,751) 12,075,034 5,332
- ----------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL EFFECTIVE $10,000 OF
AMOUNT SECURITY YIELD* VALUE NET ASSETS
- ----------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. TREASURY ZERO COUPON OBLIGATIONS-- 45.9%
$ 200M Treasury Investors Growth Receipts, 11/15/2007 5.68% $ 118,320 $ 52
17,200M U.S. Treasury Strips, 11/15/2007 5.58 10,268,641 4,535
- ----------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. TREASURY ZERO COUPON
OBLIGATIONS (cost $9,524,698) 10,386,961 4,587
- ----------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $20,524,449) 99.2% 22,461,995 9,919
OTHER ASSETS, LESS LIABILITIES .8 184,400 81
- ----------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $22,646,395 $ 10,000
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>
* The effective yields shown for the zero coupon obligations are the effective
yields at June 30, 1998.
See notes to financial statements
46
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
June 30, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF
PRINCIPAL EFFECTIVE NET
AMOUNT SECURITY YIELD* VALUE ASSETS
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS--54.2%
Agency For International Development-Israel:
$ 603M 8/15/2010 5.86% $ 299,356 $ 425
495M 9/15/2010 5.86 244,478 347
Federal National Mortgage Association:
700M 10/8/2010 5.98 339,869 482
600M 11/29/2010 5.98 288,780 410
400M 2/1/2011 5.98 190,541 270
200M Government Trust Certificate-Israel Trust,
11/15/2010 5.89 97,525 138
1,300M Government Trust Certificate-Turkey Trust,
11/15/2010 5.89 633,914 900
2,300M Resolution Funding Corporation, 1/15/2011 5.82 1,120,268 1,590
1,250M Tennessee Valley Authority, 11/1/2010 5.93 607,827 863
- ----------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS (cost $3,408,434) 3,822,558 5,425
- ----------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--45.3%
6,400M U.S. Treasury Strips, 11/15/2010 (cost
$2,875,613) 5.71 3,189,114 4,526
- ----------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $6,284,047) 99.5% 7,011,672 9,951
OTHER ASSETS, LESS LIABILITIES .5 34,635 49
----------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 7,046,307 $10,000
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
</TABLE>
* The effective yields shown for the zero coupon obligations are the effective
yields at June 30, 1998.
See notes to financial statements
47
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE UTILITIES INCOME FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--90.9%
CAPITAL GOODS--.7%
3,100 General Electric Company $ 282,100 $ 68
- --------------------------------------------------------------------------------------
COMMUNICATION SERVICES--29.2%
4,000 *AirTouch Communications, Inc. 233,750 56
6,100 A T & T Corporation 348,462 84
35,200 Bell Atlantic Corporation 1,606,000 385
11,100 BellSouth Corporation 745,087 179
4,400 *Cable & Wireless Communications, PLC (ADR) 220,000 53
16,950 Century Telephone Enterprises, Inc. 777,581 186
5,600 Cia. de Telecomunicaciones de Chile SA (ADR) 113,750 27
354 *Cia. de Telecomunicaciones de Chile SA (ADR) -
Rights 122 --
8,300 Cincinnati Bell, Inc. 237,587 57
2,300 Frontier Corporation 72,450 17
21,900 GTE Corporation 1,218,187 292
2,300 *IDT Corporation 69,144 17
12,800 *Intermedia Communications, Inc. 536,800 129
3,500 MCI Communications Corporation 203,437 49
2,300 Portugal Telecom SA (ADR) 121,756 29
16,861 *Qwest Communications International, Inc. 588,027 141
8,800 *RCN Corporation 170,500 41
33,800 SBC Communications, Inc. 1,352,000 324
4,700 Sprint Corporation 331,350 79
8,285 *Star Telecommunications, Inc. 185,377 44
13,300 *Tel-Save Holdings, Inc. 196,175 47
4,200 Telefonica SA (ADR) 584,062 140
2,300 *Teleport Communications Group, Inc. - Class "A" 124,775 30
400 *Teligent, Inc. - Class "A" 11,775 3
20,900 US West, Inc. 982,300 236
17,700 *Viatel, Inc. 300,900 72
17,400 *WorldCom, Inc. 842,812 202
- --------------------------------------------------------------------------------------
12,174,166 2,919
- --------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY--5.9%
5,000 Amoco Corporation $ 208,125 $ 50
3,200 Ashland, Inc. 165,200 40
2,300 Atlantic Richfield Company 179,687 43
1,500 British Petroleum Co. Ltd. (ADR) 132,375 32
4,600 Burlington Resources, Inc. 198,087 47
2,300 Exxon Corporation 164,019 39
1,500 Halliburton Company 66,844 16
2,300 Murphy Oil Corporation 116,581 28
1,100 Phillips Petroleum Company 53,006 13
5,500 *Seagull Energy Corporation 91,094 22
32,900 *Sempra Energy 912,975 219
2,300 *Tesoro Petroleum Corporation 36,512 9
2,300 Texaco, Inc. 137,281 33
- --------------------------------------------------------------------------------------
2,461,786 591
- --------------------------------------------------------------------------------------
FINANCIAL--1.3%
11,200 Innkeepers USA Trust 141,400 34
21,100 Westfield America, Inc. 387,712 93
- --------------------------------------------------------------------------------------
529,112 127
- --------------------------------------------------------------------------------------
TECHNOLOGY--2.5%
2,300 Ericsson (L.M.) Telephone Co. - Class "B" (ADR) 65,837 16
8,200 Lucent Technologies, Inc. 682,137 164
2,300 Motorola, Inc. 120,894 29
4,600 *Newsedge Corporation 45,425 11
4,500 *PairGain Technologies, Inc. 78,469 19
1,100 *TCSI Corporation 6,462 1
4,500 *Verilink Corporation 37,125 9
- --------------------------------------------------------------------------------------
1,036,349 249
- --------------------------------------------------------------------------------------
UTILITIES--51.3%
8,400 *AES Corporation 441,525 106
5,700 AGL Resources, Inc. 113,287 27
7,658 Ameren Corporation 304,405 73
- --------------------------------------------------------------------------------------
</TABLE>
49
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE UTILITIES INCOME FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
6,200 American Electric Power Company, Inc. $ 281,325 $ 67
8,600 American Water Works Company, Inc. 266,600 64
12,600 Baltimore Gas and Electric Company 391,387 94
9,700 BEC Energy 402,550 97
4,500 California Water Service Group 113,062 27
1,100 Carolina Power & Light Company 47,713 11
11,200 Central & South West Corporation 301,000 72
6,900 Cinergy Corporation 241,500 58
13,500 CMS Energy Corporation 594,000 142
8,800 Coastal Corporation 614,350 147
3,600 Columbia Energy Group 200,250 48
13,700 Consolidated Edison, Inc. 631,056 151
7,400 Dominion Resources, Inc. 301,550 72
16,550 DQE, Inc. 595,800 143
4,400 DTE Energy Company 177,650 43
11,400 El Paso Natural Gas Company 436,050 105
13,300 Endesa SA (ADR) 287,613 69
5,800 Energen Corporation 116,725 28
4,500 Energy East Corporation 187,313 45
11,800 Enron Corporation 637,939 153
16,600 Florida Progress Corporation 682,675 164
16,600 FPL Group, Inc. 1,045,800 251
11,000 GPU, Inc. 415,938 100
2,300 Hawaiian Electric Industries, Inc. 91,281 22
20,900 Houston Industries, Inc. 645,288 155
7,400 K N Energy, Inc. 400,988 96
2,200 Kansas City Power & Light Company 63,800 15
1,200 Lakehead Pipe Line Partners, L.P. 57,825 14
1,400 Maine Public Service Company 19,950 5
4,700 MarketSpan Corporation 140,706 34
18,900 MCN Energy Group, Inc. 470,138 113
11,000 MDU Resources Group, Inc. 392,563 94
2,200 MidAmerican Energy Holdings Company 47,575 11
4,700 Montana Power Company 163,325 39
- --------------------------------------------------------------------------------------
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
5,000 Nevada Power Company $ 128,750 $ 31
15,200 New Century Energies, Inc. 690,650 166
8,300 New Jersey Resources Corporation 296,206 71
3,500 NICOR, Inc. 140,438 34
18,300 NIPSCO Industries, Inc. 512,400 123
14,100 Northern States Power Company 403,613 97
500 Northwest Natural Gas Company 13,984 3
28,800 OGE Energy Corporation 777,600 186
8,000 Oneok, Inc. 319,000 76
6,900 Piedmont Natural Gas Company, Inc. 232,013 56
2,100 Public Service Enterprise Group, Inc. 72,319 17
16,600 Questar Corporation 325,775 78
20,000 SCANA Corporation 596,250 143
10,300 Sierra Pacific Resources 374,019 90
6,500 Sonat, Inc. 251,063 60
15,300 Southern Company 423,619 102
19,500 Texas Utilities Company 811,688 195
9,700 UGI Corporation 241,288 58
10,200 Unicom Corporation 357,638 86
15,900 United Water Resources, Inc. 286,200 69
11,300 UtiliCorp United, Inc. 425,869 102
8,200 Washington Gas Light Company 219,350 53
9,400 Westcoast Energy, Inc. 209,738 50
24,800 Williams Companies, Inc. 837,000 201
4,400 Wisconsin Energy Corporation 133,650 32
- --------------------------------------------------------------------------------------
21,402,622 5,134
- --------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $30,995,863) 37,886,135 9,088
- --------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE UTILITIES INCOME FUND
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--5.2%
$ 1,200M Albertsons, Inc., 5.50%, 7/20/98 $ 1,196,485 $ 287
1,000M Dupont (E.I.) de Nemours & Co., 5.75%, 7/9/98 998,711 239
- --------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$2,195,196) 2,195,196 526
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $33,191,059) 96.1% 40,081,331 9,614
OTHER ASSETS, LESS LIABILITIES 3.9 1,607,410 386
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $41,688,741 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
52
<PAGE>
(This page has been left blank intentionally.)
53
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS LIFE SERIES FUND
June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $134,512,107 $4,684,416 $ 93,701,181 $9,552,401
------------ ---------- ------------ ----------
------------ ---------- ------------ ----------
At value (Note 1A)................... $187,174,428 $4,684,416 $111,864,000 $9,703,686
Cash................................... 621,940 14,580 444,237 36,756
Receivables:
Investment securities sold........... 339,989 -- 932,802 --
Interest and dividends............... 119,252 21,583 81,822 69,034
Forward currency contracts (Note
6)................................. -- -- -- --
Trust shares sold.................... 632,821 -- 423,987 2,704
------------ ---------- ------------ ----------
Total Assets........................... 188,888,430 4,720,579 113,746,848 9,812,180
------------ ---------- ------------ ----------
LIABILITIES
Payables:
Investment securities purchased...... -- -- 1,698,032 --
Dividend payable..................... -- 18,521 -- --
Trust shares redeemed................ 18,673 174,025 22,469 16,719
Accrued advisory fee................... 113,981 2,275 68,286 4,883
Accrued expenses....................... -- 4,808 6,709 1,593
------------ ---------- ------------ ----------
Total Liabilities...................... 132,654 199,629 1,795,496 23,195
------------ ---------- ------------ ----------
NET ASSETS............................. $188,755,776 $4,520,950 $111,951,352 $9,788,985
------------ ---------- ------------ ----------
------------ ---------- ------------ ----------
NET ASSETS CONSIST OF:
Capital paid in........................ $126,855,375 $4,520,950 $ 90,542,124 $9,931,140
Undistributed net investment income.... 712,090 -- 214,012 318,375
Accumulated net realized gain (loss) on
investment transactions and foreign
currency transactions................ 8,525,990 -- 3,032,397 (611,815)
Net unrealized appreciation of
investments and foreign currency
transactions......................... 52,662,321 -- 18,162,819 151,285
------------ ---------- ------------ ----------
Total.................................. $188,755,776 $4,520,950 $111,951,352 $9,788,985
------------ ---------- ------------ ----------
------------ ---------- ------------ ----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING (Note 2)................. 7,538,402 4,520,950 4,114,287 976,141
------------ ---------- ------------ ----------
------------ ---------- ------------ ----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (Net
assets divided by shares
outstanding)......................... $ 25.04 $ 1.00 $ 27.21 $ 10.03
------ ----- ------ ----------
------ ----- ------ ----------
</TABLE>
See notes to financial statements
54
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT TARGET TARGET
GROWTH HIGH YIELD SECURITIES GRADE MATURITY 2007 MATURITY 2010
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $109,336,189 $61,526,748 $ 69,668,914 $17,785,448 $ 20,524,449 $ 6,284,047
------------ ---------- ------------- ---------- ------------- -------------
------------ ---------- ------------- ---------- ------------- -------------
At value (Note 1A)................... $162,495,082 $64,145,169 $ 90,013,428 $18,296,223 $ 22,461,995 $ 7,011,672
Cash................................... 114,004 167,485 10,607 156,376 183,475 36,349
Receivables:
Investment securities sold........... 394,277 -- 581,911 -- -- --
Interest and dividends............... 87,422 1,117,060 405,386 288,643 -- --
Forward currency contracts (Note
6)................................. -- -- 1,583 -- -- --
Trust shares sold.................... 584,137 160,423 333,892 28,375 41,836 2,896
------------ ---------- ------------- ---------- ------------- -------------
Total Assets........................... 163,674,922 65,590,137 91,346,807 18,769,617 22,687,306 7,050,917
------------ ---------- ------------- ---------- ------------- -------------
LIABILITIES
Payables:
Investment securities purchased...... 858,285 79,014 1,449,719 -- -- --
Dividend payable..................... -- -- -- -- -- --
Trust shares redeemed................ 23,901 60,172 32,348 50,815 25,916 --
Accrued advisory fee................... 97,861 40,629 54,955 9,334 11,178 3,474
Accrued expenses....................... 4,561 12,455 82,002 3,288 3,817 1,136
------------ ---------- ------------- ---------- ------------- -------------
Total Liabilities...................... 984,608 192,270 1,619,024 63,437 40,911 4,610
------------ ---------- ------------- ---------- ------------- -------------
NET ASSETS............................. $162,690,314 $65,397,867 $ 89,727,783 $18,706,180 $ 22,646,395 $ 7,046,307
------------ ---------- ------------- ---------- ------------- -------------
------------ ---------- ------------- ---------- ------------- -------------
NET ASSETS CONSIST OF:
Capital paid in........................ $104,960,663 $59,922,255 $ 68,355,143 $17,514,909 $ 20,244,104 $ 6,156,991
Undistributed net investment income.... 246,248 2,714,015 544,826 572,814 579,582 161,855
Accumulated net realized gain (loss) on
investment transactions and foreign
currency transactions................ 4,324,510 143,176 485,796 107,682 (114,837) (164)
Net unrealized appreciation of
investments and foreign currency
transactions......................... 53,158,893 2,618,421 20,342,018 510,775 1,937,546 727,625
------------ ---------- ------------- ---------- ------------- -------------
Total.................................. $162,690,314 $65,397,867 $ 89,727,783 $18,706,180 $ 22,646,395 $ 7,046,307
------------ ---------- ------------- ---------- ------------- -------------
------------ ---------- ------------- ---------- ------------- -------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING (Note 2)................. 4,965,673 5,516,666 4,779,907 1,637,151 1,782,263 543,018
------------ ---------- ------------- ---------- ------------- -------------
------------ ---------- ------------- ---------- ------------- -------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (Net
assets divided by shares
outstanding)......................... $ 32.76 $ 11.85 $ 18.77 $ 11.43 $ 12.71 $ 12.98
------ ---------- ------ ---------- ------ ------
------ ---------- ------ ---------- ------ ------
<CAPTION>
UTILITIES
INCOME
- ----------------------------------------------------------------
<S> <C>
ASSETS
Investment in securities:
At identified cost................... $33,191,059
-----------
-----------
At value (Note 1A)................... $40,081,331
Cash................................... 495,842
Receivables:
Investment securities sold........... 1,484,997
Interest and dividends............... 78,885
Forward currency contracts (Note
6)................................. --
Trust shares sold.................... 114,705
-----------
Total Assets........................... 42,255,760
-----------
LIABILITIES
Payables:
Investment securities purchased...... 540,105
Dividend payable..................... --
Trust shares redeemed................ 6,431
Accrued advisory fee................... 20,483
Accrued expenses....................... --
-----------
Total Liabilities...................... 567,019
-----------
NET ASSETS............................. $41,688,741
-----------
-----------
NET ASSETS CONSIST OF:
Capital paid in........................ $32,458,947
Undistributed net investment income.... 486,564
Accumulated net realized gain (loss) on
investment transactions and foreign
currency transactions................ 1,852,958
Net unrealized appreciation of
investments and foreign currency
transactions......................... 6,890,272
-----------
Total.................................. $41,688,741
-----------
-----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING (Note 2)................. 2,809,905
-----------
-----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (Net
assets divided by shares
outstanding)......................... $ 14.84
-----------
-----------
</TABLE>
See notes to financial statements
55
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY GOVERNMENT
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest....................... $ 344,447 $ 127,683 $ 363,181 $ 348,980
Dividends...................... 1,028,928 -- 284,960 --
Consent fees................... -- -- -- --
--------- ---------- --------- ----------
Total income..................... 1,373,375 127,683 648,141 348,980
--------- ---------- --------- ----------
Expenses (Notes 1 and 5):
Advisory fee................... 644,526 16,940 403,207 35,782
Reports and notices to
shareholders................. 6,913 354 6,126 213
Professional fees.............. 9,231 1,354 8,667 727
Custodian fees................. 11,437 2,169 11,405 1,984
Other expenses................. 816 -- 13,645 3,519
--------- ---------- --------- ----------
Total expenses................... 672,923 20,817 443,050 42,225
Less: Expenses waived or
assumed........................ -- (4,984) -- (10,002)
Custodian fees paid
indirectly................ (11,437) (151) (11,405) (1,967)
--------- ---------- --------- ----------
Expenses - net................... 661,486 15,682 431,645 30,256
--------- ---------- --------- ----------
Net investment income............ 711,889 112,001 216,496 318,724
--------- ---------- --------- ----------
REALIZED AND UNREALIZED
GAIN(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
(Note 3):
Net realized gain on investments
and foreign currency
transactions................... 8,527,160 -- 3,035,660 9,838
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................... 11,764,565 -- 1,583,358 6,635
--------- ---------- --------- ----------
Net gain (loss) from investments
and foreign currency
transactions................... 20,291,725 -- 4,619,018 16,473
--------- ---------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $21,003,614 $ 112,001 $4,835,514 $ 335,197
--------- ---------- --------- ----------
--------- ---------- --------- ----------
</TABLE>
(a) Net of $5,905 foreign taxes withheld
(b) Includes net realized loss of $3,188 on foreign currency transactions
(c) Includes $714 of net unrealized depreciation on translation of assets in
foreign currencies
See notes to financial statements
56
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT TARGET TARGET UTILITIES
GROWTH HIGH YIELD SECURITIES GRADE MATURITY 2007 MATURITY 2010 INCOME
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest....................... $ 155,103 $2,878,415 $ 131,588 $ 625,520 $ 647,770 $ 181,611 $ 59,872
Dividends...................... 686,444 24,156 925,126(a) -- -- -- 548,477
Consent fees................... -- 70,250 -- 5,000 -- -- --
----------- ---------- ------------- ---------- ------------- ------------- ---------
Total income..................... 841,547 2,972,821 1,056,714 630,520 647,770 181,611 608,349
----------- ---------- ------------- ---------- ------------- ------------- ---------
Expenses (Notes 1 and 5):
Advisory fee................... 548,745 236,130 310,091 67,953 80,434 22,918 141,565
Reports and notices to
shareholders................. 6,175 2,761 3,878 347 362 212 1,405
Professional fees.............. 7,608 7,270 8,084 1,642 2,544 13 2,730
Custodian fees................. 14,788 4,860 177,354 1,879 1,486 466 5,998
Other expenses................. 16,551 8,384 8,545 2,140 3,639 1,122 2,428
----------- ---------- ------------- ---------- ------------- ------------- ---------
Total expenses................... 593,867 259,405 507,952 73,961 88,465 24,731 154,126
Less: Expenses waived or
assumed........................ -- -- -- (14,607) (18,972) (4,812) (28,313)
Custodian fees paid
indirectly................ (1,704) (3,234) -- (1,879) (1,448) (456) (4,885)
----------- ---------- ------------- ---------- ------------- ------------- ---------
Expenses - net................... 592,163 256,171 507,952 57,475 68,045 19,463 120,928
----------- ---------- ------------- ---------- ------------- ------------- ---------
Net investment income............ 249,384 2,716,650 548,762 573,045 579,725 162,148 487,421
----------- ---------- ------------- ---------- ------------- ------------- ---------
REALIZED AND UNREALIZED
GAIN(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
(Note 3):
Net realized gain on investments
and foreign currency
transactions................... 4,325,306 667,364 488,293(b) 111,598 996 -- 1,852,886
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................... 17,364,191 (684,431) 11,951,467(c) 57,679 591,366 221,333 (319,929)
----------- ---------- ------------- ---------- ------------- ------------- ---------
Net gain (loss) from investments
and foreign currency
transactions................... 21,689,497 (17,067) 12,439,760 169,277 592,362 221,333 1,532,957
----------- ---------- ------------- ---------- ------------- ------------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $21,938,881 $2,699,583 $ 12,988,522 $ 742,322 $ 1,172,087 $ 383,481 $2,020,378
----------- ---------- ------------- ---------- ------------- ------------- ---------
----------- ---------- ------------- ---------- ------------- ------------- ---------
</TABLE>
(a) Net of $5,905 foreign taxes withheld
(b) Includes net realized loss of $3,188 on foreign currency transactions
(c) Includes $714 of net unrealized depreciation on translation of assets in
foreign currencies
See notes to financial statements
57
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
-------------------------- -----------------------
1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO
6/30/98 12/31/97 6/30/98 12/31/97
- --------------------------------- ------------ ------------ ---------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.......... $ 711,889 $ 1,276,800 $ 112,001 $ 226,647
Net realized gain on
investments.................. 8,527,160 9,946,550 -- --
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................. 11,764,565 17,961,543 -- --
------------ ------------ ---------- -----------
Net increase in net assets
resulting from
operations................. 21,003,614 29,184,893 112,001 226,647
------------ ------------ ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......... (1,263,750) (1,146,250) (112,001) (226,647)
Net realized gains............. (9,930,418) (4,741,304) -- --
------------ ------------ ---------- -----------
Total distributions.......... (11,194,168) (5,887,554) (112,001) (226,647)
------------ ------------ ---------- -----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold...... 14,961,910 26,984,341 634,309 3,084,309
Reinvestment of
distributions................ 11,194,168 5,887,554 93,480 226,647
Cost of shares redeemed........ (1,335,619) (2,121,391) (966,729) (2,847,598)
------------ ------------ ---------- -----------
Net increase (decrease) from
trust share transactions..... 24,820,459 30,750,504 (238,940) 463,358
------------ ------------ ---------- -----------
Net increase (decrease) in
net assets................. 34,629,905 54,047,843 (238,940) 463,358
NET ASSETS
Beginning of period............ 154,125,871 100,078,028 4,759,890 4,296,532
------------ ------------ ---------- -----------
End of period+................. $188,755,776 $154,125,871 $4,520,950 $ 4,759,890
------------ ------------ ---------- -----------
------------ ------------ ---------- -----------
+Includes undistributed net
investment income of............ $ 712,090 $ 1,263,951 -- --
------------ ------------ ---------- -----------
------------ ------------ ---------- -----------
(a)TRUST SHARES ISSUED AND
REDEEMED
Sold........................... 615,791 1,238,452 634,309 3,084,309
Issued for distributions
reinvested................... 477,160 294,820 93,480 226,647
Redeemed....................... (55,281) (94,839) (966,729) (2,847,598)
------------ ------------ ---------- -----------
Net increase (decrease) in
trust shares oustanding...... 1,037,670 1,438,433 (238,940) 463,358
------------ ------------ ---------- -----------
------------ ------------ ---------- -----------
</TABLE>
See notes to financial statements
58
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
DISCOVERY GOVERNMENT GROWTH HIGH YIELD
------------------------- ----------------------- -------------------------- -----------
1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO 1/1/98 TO
6/30/98 12/31/97 6/30/98 12/31/97 6/30/98 12/31/97 6/30/98
- --------------------------------- ------------ ----------- ---------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.......... $ 216,496 $ 293,544 $ 318,724 $ 627,424 $ 249,384 $ 662,530 $ 2,716,650
Net realized gain on
investments.................. 3,035,660 6,771,658 9,838 29,320 4,325,306 4,950,237 667,364
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................. 1,583,358 5,866,659 6,635 87,654 17,364,191 20,037,061 (684,431)
------------ ----------- ---------- ----------- ------------ ------------ -----------
Net increase in net assets
resulting from
operations................. 4,835,514 12,931,861 335,197 744,398 21,938,881 25,649,828 2,699,583
------------ ----------- ---------- ----------- ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......... (282,385) (392,698) (591,713) (596,590) (654,069) (596,375) (4,824,396)
Net realized gains............. (6,711,235) (3,359,761) -- -- (4,932,403) (6,162,537) --
------------ ----------- ---------- ----------- ------------ ------------ -----------
Total distributions.......... (6,993,620) (3,752,459) (591,713) (596,590) (5,586,472) (6,758,912) (4,824,396)
------------ ----------- ---------- ----------- ------------ ------------ -----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold...... 9,110,406 17,633,092 863,272 933,756 14,262,578 24,410,876 4,768,247
Reinvestment of
distributions................ 6,993,620 3,752,459 591,713 596,590 5,586,472 6,758,912 4,824,396
Cost of shares redeemed........ (1,524,497) (1,934,034) (529,217) (1,582,844) (1,095,695) (1,282,464) (1,688,758)
------------ ----------- ---------- ----------- ------------ ------------ -----------
Net increase (decrease) from
trust share transactions..... 14,579,529 19,451,517 925,768 (52,498) 18,753,355 29,887,324 7,903,885
------------ ----------- ---------- ----------- ------------ ------------ -----------
Net increase (decrease) in
net assets................. 12,421,423 28,630,919 669,252 95,310 35,105,764 48,778,240 5,779,072
NET ASSETS
Beginning of period............ 99,529,929 70,899,010 9,119,733 9,024,423 127,584,550 78,806,310 59,618,795
------------ ----------- ---------- ----------- ------------ ------------ -----------
End of period+................. $111,951,352 $99,529,929 $9,788,985 $ 9,119,733 $162,690,314 $127,584,550 $65,397,867
------------ ----------- ---------- ----------- ------------ ------------ -----------
------------ ----------- ---------- ----------- ------------ ------------ -----------
+Includes undistributed net
investment income of........... $ 214,012 $ 279,901 $ 318,375 $ 591,364 $ 246,248 $ 650,933 $ 2,714,015
------------ ----------- ---------- ----------- ------------ ------------ -----------
------------ ----------- ---------- ----------- ------------ ------------ -----------
(a)TRUST SHARES ISSUED AND
REDEEMED
Sold........................... 328,853 670,839 85,428 93,360 455,147 917,303 397,094
Issued for distributions
reinvested................... 257,308 158,198 60,564 62,210 182,445 284,586 414,467
Redeemed....................... (55,499) (74,661) (52,672) (158,149) (35,284) (47,245) (140,327)
------------ ----------- ---------- ----------- ------------ ------------ -----------
Net increase (decrease) in
trust shares oustanding...... 530,662 754,376 93,320 (2,579) 602,308 1,154,644 671,234
------------ ----------- ---------- ----------- ------------ ------------ -----------
------------ ----------- ---------- ----------- ------------ ------------ -----------
<CAPTION>
- ----------------------------------------------------------------------------
1/1/97 TO
12/31/97
- --------------------------------- -----------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.......... $ 4,828,181
Net realized gain on
investments.................. 1,155,537
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................. 488,433
-----------
Net increase in net assets
resulting from
operations................. 6,472,151
-----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......... (4,259,486)
Net realized gains............. --
-----------
Total distributions.......... (4,259,486)
-----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold...... 7,042,988
Reinvestment of
distributions................ 4,259,486
Cost of shares redeemed........ (3,369,888)
-----------
Net increase (decrease) from
trust share transactions..... 7,932,586
-----------
Net increase (decrease) in
net assets................. 10,145,251
NET ASSETS
Beginning of period............ 49,473,544
-----------
End of period+................. $59,618,795
-----------
-----------
+Includes undistributed net
investment income of........... $ 4,821,761
-----------
-----------
(a)TRUST SHARES ISSUED AND
REDEEMED
Sold........................... 606,213
Issued for distributions
reinvested................... 381,333
Redeemed....................... (287,780)
-----------
Net increase (decrease) in
trust shares oustanding...... 699,766
-----------
-----------
</TABLE>
See notes to financial statements
59
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
INTERNATIONAL
SECURITIES INVESTMENT GRADE
------------------------ ------------------------
1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO
6/30/98 12/31/97 6/30/98 12/31/97
- --------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.......... $ 548,762 $ 789,144 $ 573,045 $ 1,076,444
Net realized gain (loss) on
investments.................. 488,293 3,702,768 111,598 60,576
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................. 11,951,467 832,056 57,679 417,171
----------- ----------- ----------- -----------
Net increase in net assets
resulting from
operations................. 12,988,522 5,323,968 742,322 1,554,191
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......... (705,530) (671,803) (1,073,499) (1,040,936)
Net realized gains............. (3,773,055) (5,219,395) -- --
----------- ----------- ----------- -----------
Total distributions.......... (4,478,585) (5,891,198) (1,073,499) (1,040,936)
----------- ----------- ----------- -----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold...... 4,869,293 13,088,361 1,557,150 1,562,904
Reinvestment of
distributions................ 4,478,585 5,891,198 1,073,499 1,040,936
Cost of shares redeemed........ (2,592,720) (1,904,255) (812,809) (2,287,154)
----------- ----------- ----------- -----------
Net increase from trust share
transactions................. 6,755,158 17,075,304 1,817,840 316,686
----------- ----------- ----------- -----------
Net increase in net assets... 15,265,095 16,508,074 1,486,663 829,941
NET ASSETS
Beginning of period............ 74,462,688 57,954,614 17,219,517 16,389,576
----------- ----------- ----------- -----------
End of period+................. $89,727,783 $74,462,688 $18,706,180 $17,219,517
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
+Includes undistributed net
investment income of........... $ 544,826 $ 701,594 $ 572,814 $ 1,073,268
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
(a)TRUST SHARES ISSUED AND
REDEEMED
Sold........................... 267,608 767,110 135,790 140,313
Issued for distributions
reinvested................... 256,212 375,475 96,974 97,649
Redeemed....................... (146,325) (111,951) (71,279) (205,347)
----------- ----------- ----------- -----------
Net increase in trust shares
oustanding................... 377,495 1,030,634 161,485 32,615
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements
60
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
TARGET TARGET UTILITIES
MATURITY 2007 MATURITY 2010 INCOME
------------------------ ---------------------- ------------------------
1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO 1/1/98 TO 1/1/97 TO
6/30/98 12/31/97 6/30/98 12/31/97 6/30/98 12/31/97
- --------------------------------- ----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.......... $ 579,725 $ 1,000,543 $ 162,148 $ 210,000 $ 487,421 $ 847,751
Net realized gain (loss) on
investments.................. 996 (4,036) -- 3,786 1,852,886 1,309,881
Net unrealized appreciation
(depreciation) of investments
and foreign currency
transactions................. 591,366 1,286,771 221,333 414,843 (319,929) 4,449,509
----------- ----------- ---------- ---------- ----------- -----------
Net increase in net assets
resulting from
operations................. 1,172,087 2,283,278 383,481 628,629 2,020,378 6,607,141
----------- ----------- ---------- ---------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......... (996,667) (745,063) (209,363) (51,234) (847,987) (692,647)
Net realized gains............. -- -- (3,950) -- (1,305,513) (517,046)
----------- ----------- ---------- ---------- ----------- -----------
Total distributions.......... (996,667) (745,063) (213,313) (51,234) (2,153,500) (1,209,693)
----------- ----------- ---------- ---------- ----------- -----------
TRUST SHARE TRANSACTIONS (a)
Proceeds from shares sold...... 2,282,179 4,604,910 1,574,805 3,021,064 6,064,081 4,789,797
Reinvestment of
distributions................ 996,667 745,063 213,313 51,234 2,153,500 1,209,693
Cost of shares redeemed........ (1,107,587) (1,235,132) (120,639) (635,808) (372,282) (1,528,352)
----------- ----------- ---------- ---------- ----------- -----------
Net increase from trust share
transactions................. 2,171,259 4,114,841 1,667,479 2,436,490 7,845,299 4,471,138
----------- ----------- ---------- ---------- ----------- -----------
Net increase in net assets... 2,346,679 5,653,056 1,837,647 3,013,885 7,712,177 9,868,586
NET ASSETS
Beginning of period............ 20,299,716 14,646,660 5,208,660 2,194,775 33,976,564 24,107,978
----------- ----------- ---------- ---------- ----------- -----------
End of period+................. $22,646,395 $20,299,716 $7,046,307 $5,208,660 $41,688,741 $33,976,564
----------- ----------- ---------- ---------- ----------- -----------
----------- ----------- ---------- ---------- ----------- -----------
+Includes undistributed net
investment income of........... $ 579,582 $ 996,524 $ 161,855 $ 209,070 $ 486,564 $ 847,130
----------- ----------- ---------- ---------- ----------- -----------
----------- ----------- ---------- ---------- ----------- -----------
(a)TRUST SHARES ISSUED AND
REDEEMED
Sold........................... 181,849 395,345 124,912 266,975 411,932 374,184
Issued for distributions
reinvested................... 82,165 67,549 17,385 4,766 151,335 100,724
Redeemed....................... (88,693) (106,979) (9,490) (58,264) (25,316) (120,432)
----------- ----------- ---------- ---------- ----------- -----------
Net increase in trust shares
oustanding................... 175,321 355,915 132,807 213,477 537,951 354,476
----------- ----------- ---------- ---------- ----------- -----------
----------- ----------- ---------- ---------- ----------- -----------
</TABLE>
See notes to financial statements
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS LIFE SERIES FUND
1. SIGNIFICANT ACCOUNTING POLICIES--First Investors Life Series Fund (the "Life
Series Fund"), a Massachusetts business trust, is registered under the
Investment Company Act of 1940, as a diversified, open-end management investment
company. The Life Series 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 (each a "Fund") 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 growth of capital without regard to dividend or
interest income.
GOVERNMENT FUND seeks to achieve a significant level of current income which is
consistent with the security and liquidity of principal.
GROWTH FUND seeks long-term capital appreciation.
HIGH YIELD FUND seeks to earn a high level of current income and secondarily to
seek capital appreciation.
INTERNATIONAL SECURITIES FUND seeks long-term capital growth and secondarily 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 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 primarily 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
Stock Market is valued at its last sale price on the exchange or market 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
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 Funds may also use prices provided by a pricing
service. The pricing service uses quotations obtained from investment dealers or
brokers, and other available information in determining value. Short-term debt
securities that mature in 60 days or less are valued on the amortized cost
method which approximates market 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
Life Series Fund's officers in the manner specifically authorized by the Board
of Trustees of the Life Series Fund.
The Cash Management Fund values its portfolio securities in accordance with the
amortized cost method of valuation under Rule 2a-7 under the
62
<PAGE>
1940 Act. Amortized cost is an approximation of market value of an instrument,
whereby the difference between its acquisition cost and value at maturity is
amortized on a straight-line basis over the remaining life of the instrument.
The effect of changes in the market value of a security as a result of
fluctuating interest rates is not taken into account and thus the amortized cost
method of valuation may result in the value of a security being higher or lower
than its actual market value.
B. Federal Income Taxes--No provision has been made for federal income taxes on
net income or capital gains since it is the policy of each Fund to continue to
comply with the special provisions of the Internal Revenue Code applicable to
investment companies, and to make sufficient distributions of income and capital
gains (in excess of any available capital loss carryovers), to relieve each Fund
from all, or substantially all, federal income taxes. At June 30, 1998, capital
loss carryovers were as follows:
<TABLE>
<CAPTION>
Year Capital Loss Carryovers
Expire
----------------------------
<S> <C> <C> <C> <C>
Fund Total 2002 2003 2004
- --------------------------------------- -------- -------- -------- --------
Government............................. $621,653 $393,633 $ -- $228,020
High Yield............................. 524,188 -- 80,783 443,405
Investment Grade....................... 3,916 -- 3,916 --
Target Maturity 2007................... 88,227 -- -- 88,227
</TABLE>
C. Foreign Currency Translations--For valuation purposes, quotations of foreign
securities in foreign currency are translated to U.S. dollar equivalents using
the foreign exchange quotation in effect. Portfolio securities and other assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars at the date of valuation. 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 (loss) on foreign currency transactions
includes gains and losses from the sales of foreign currency, forward currency
contracts, and gains and losses on accrued foreign dividends and related
withholding taxes.
D. Distributions to Shareholders--Distributions to shareholders from net
investment income and net realized capital gains are declared and paid annually
on all Funds except for the Cash Management Fund which declares dividends from
net investment income 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.
63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS LIFE SERIES FUND
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. Interest income and
estimated expenses are accrued daily. For the six months ended June 30, 1998,
Bank of New York, custodian for all the Funds, except the International
Securities Fund, has provided credits in the amount of $38,566 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. SECURITY TRANSACTIONS--For the six months ended June 30, 1998, purchases and
sales of securities and long-term U.S. Government obligations, excluding
foreign currencies and short-term securities were as follows:
<TABLE>
<CAPTION>
Long-Term U.S.
Securities Government Obligations
------------------------ ----------------------
<S> <C> <C> <C> <C>
Cost of Proceeds Cost of Proceeds
Fund Purchases from Sales Purchases from Sales
- --------------------------------------- ----------- ----------- ---------- ----------
Blue Chip.............................. $70,579,956 $58,533,866 $ -- $ --
Discovery.............................. 40,219,614 32,793,959 -- --
Government............................. -- -- 2,693,601 2,414,708
Growth................................. 34,587,818 19,293,563 -- --
High Yield............................. 16,791,537 11,154,734 -- --
International Securities............... 33,688,696 31,474,902 -- --
Investment Grade....................... 9,026,261 7,845,384 -- --
Target Maturity 2007................... -- -- 1,073,432 57,808
Target Maturity 2010................... -- -- 1,482,055 --
Utilities Income....................... 20,943,242 17,218,770 -- --
</TABLE>
64
<PAGE>
At June 30, 1998, aggregate cost and net unrealized appreciation of securities
for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Net Unrealized
Fund Aggregate Cost Appreciation Depreciation Appreciation
- --------------------------------------- -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Blue Chip.............................. $ 134,512,107 $ 54,883,158 $ 2,220,837 $ 52,662,321
Cash Management........................ 4,684,416 -- -- --
Discovery.............................. 93,707,983 22,649,788 4,493,771 18,156,017
Government............................. 9,552,401 165,874 14,589 151,285
Growth................................. 109,342,005 54,811,915 1,658,838 53,153,077
High Yield............................. 61,526,748 3,131,415 512,994 2,618,421
International Securities............... 69,668,914 22,324,020 1,979,506 20,344,514
Investment Grade....................... 17,785,448 584,638 73,863 510,775
Target Maturity 2007................... 20,552,055 1,909,940 -- 1,909,940
Target Maturity 2010................... 6,284,047 727,625 -- 727,625
Utilities Income....................... 33,209,697 7,460,856 589,222 6,871,634
</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 resold to qualified institutional investors. At June 30, 1998, the High
Yield Fund and Investment Grade Fund held nineteen and three 144A securities,
respectively, with aggregate values of $11,158,190 and $825,773, respectively.
The securities represent 17.1% and 4.4%, respectively, of the Funds' net assets
and are valued as set forth in Note 1A.
5. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
trustees of the Life Series Fund are officers and directors of its investment
adviser, First Investors Management Company, Inc. ("FIMCO") and/or its transfer
agent, Administrative Data Management Corp. Trustees of the Life Series Fund who
are not "interested persons" of the Life Series Fund as defined in the 1940 Act
are remunerated by the Funds. For the six months ended June 30, 1998, total
trustees fees accrued by the Funds amounted to $22,575.
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
six months ended June 30, 1998, total advisory fees were $2,508,291 of which
$73,118 was waived by the investment adviser. In addition, $8,572 of expenses
were assumed by FIMCO.
Wellington Management Company, LLP 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. FORWARD CURRENCY CONTRACTS--A forward currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future date.
When the International Securities Fund purchases or sells foreign securities it
customarily enters into a forward currency contract to minimize foreign exchange
risk between the trade date and
65
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS LIFE SERIES FUND
the settlement date of such transactions. The International Securities Fund
could be exposed to risk if counterparties to the contracts are unable to meet
the terms of their contracts or if the value of the foreign currency changes
unfavorably. The International Securities Fund had the following forward
currency contracts outstanding at June 30, 1998:
<TABLE>
<CAPTION>
Contracts to Buy Foreign Unrealized
Currency In Exchange for Settlement Date Gain (Loss)
- -------------------------- --------------- --------------- -----------
<C> <S> <C> <C> <C>
452,380 Deutsche Marks U.S. $249,617 7/1/98 U.S. $1,005
99,766 Swiss Francs 65,348 7/1/98 426
169,926 Dutch Gilders 83,420 7/2/98 114
81,747 British Pounds 136,722 7/2/98 (327)
98,132 Swiss Francs 64,323 7/2/98 373
51,491 British Pounds 85,841 7/7/98 71
3,775,852 French Francs 623,735 7/31/98 783
--------------- -----------
$1,309,006 $2,445
--------------- -----------
</TABLE>
<TABLE>
<CAPTION>
Contracts to Sell Foreign Unrealized
Currency In Exchange for Settlement Date Gain (Loss)
- -------------------------- --------------- --------------- -----------
<C> <S> <C> <C> <C>
50,118 British Pounds U.S. $83,601 7/1/98 U.S. $(20)
370,674 Japanese Yen 2,597 7/1/98 (74)
117,164 Mexican Pesos 12,989 7/1/98 (49)
287,384 Mexican Pesos 32,020 7/2/98 39
35,802 British Pounds 59,478 7/3/98 (257)
144,012 British Pounds 239,794 7/6/98 (490)
74,198 French Francs 12,261 7/31/98 (11)
--------------- -----------
$442,740 $(862)
--------------- -----------
Unrealized Gain on Forward
Currency Contracts $1,583
-----------
-----------
</TABLE>
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 risks of loss of income and principal than
lower yielding, higher rated, fixed income securities. The risk of loss due to
default by the issuer may be significantly greater for the holders of high
yielding securities, because such securities are generally unsecured and are
often subordinated to other creditors of the issuer.
66
<PAGE>
(This page has been left blank intentionally.)
67
<PAGE>
FINANCIAL HIGHLIGHTS
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
NET REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE UNREALIZED ----------------------
--------- NET GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP
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
1997........... 19.77 .19 4.88 5.07 .22 .91 1.13
1/1/98 to
6/30/98...... 23.71 .09 2.92 3.01 .19 1.49 1.68
- ----------------------------------------------------------------------------------------------------------
CASH MANAGEMENT
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
1997........... 1.00 .050 -- .050 .050 -- .050
1/1/98 to
6/30/98...... 1.00 .025 -- .025 .025 -- .025
- ----------------------------------------------------------------------------------------------------------
DISCOVERY
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
1997........... 25.06 .08 3.93 4.01 .14 1.16 1.30
1/1/98 to
6/30/98...... 27.77 .05 1.30 1.35 .08 1.83 1.91
- ----------------------------------------------------------------------------------------------------------
GOVERNMENT
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
1997........... 10.19 .72 .11 .83 .69 -- .69
1/1/98 to
6/30/98...... 10.33 .31 .05 .36 .66 -- .66
- ----------------------------------------------------------------------------------------------------------
</TABLE>
68
<PAGE>
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
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 RATIO TO AVERAGE NET ASSETS
BEFORE
ASSETS+ EXPENSES WAIVED OR ASSUMED
NET ASSET NET ASSETS ------------------------ ---------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ++ (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) THOUSANDS) (%) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP
1993........... $ 14.21 8.51 $ 34,030 .88 1.27 N/A N/A 37
1994........... 13.75 (1.45) 41,424 .88 1.49 N/A N/A 82
1995........... 16.98 34.00 66,900 .86 1.91 N/A N/A 26
1996........... 19.77 21.52 100,078 .84 1.39 N/A N/A 45
1997........... 23.71 26.72 154,126 .81 .99 N/A N/A 63
1/1/98 to
6/30/98...... 25.04 13.19 188,756 .78(a) .83(a) N/A N/A 37
- --------------------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT
1993........... $ 1.00 2.70 $ 4,243 .60 2.67 1.05 2.22 N/A
1994........... 1.00 3.77 3,929 .60 3.69 1.04 3.25 N/A
1995........... 1.00 5.51 4,162 .60 5.36 1.10 4.87 N/A
1996........... 1.00 5.00 4,297 .60 4.89 1.11 4.38 N/A
1997........... 1.00 5.08 4,760 .70 4.97 1.06 4.61 N/A
1/1/98 to
6/30/98...... 1.00 2.51 4,521 .70(a) 4.96(a) .92(a) 4.74(a) N/A
- --------------------------------------------------------------------------------------------------------------------------------
DISCOVERY
1993........... $ 21.36 22.20 $ 21,221 .87 (.03) N/A N/A 69
1994........... 19.86 (2.53) 30,244 .88 .36 N/A N/A 53
1995........... 23.27 25.23 50,900 .87 .63 N/A N/A 78
1996........... 25.06 12.48 70,899 .85 .63 N/A N/A 98
1997........... 27.77 16.84 99,530 .82 .34 N/A N/A 85
1/1/98 to
6/30/98...... 27.21 4.86 111,951 .82(a) .40(a) N/A N/A 35
- --------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT
1993........... $ 10.42 6.35 $ 8,234 .35 6.60 .84 6.11 525
1994........... 9.70 (4.10) 7,878 .35 6.74 .90 6.19 457
1995........... 10.52 15.63 9,500 .40 6.79 .93 6.26 198
1996........... 10.19 3.59 9,024 .60 6.75 .94 6.41 199
1997........... 10.33 8.61 9,120 .60 6.95 .92 6.63 134
1/1/98 to
6/30/98...... 10.03 3.61 9,789 .68(a) 6.68(a) .89(a) 6.47(a) 26
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
69
<PAGE>
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------
NET REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE UNREALIZED ----------------------
--------- NET GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
GROWTH
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
1997..................... 24.56 .15 6.57 6.72 .18 1.86 2.04
1/1/98 to 6/30/98........ 29.24 .05 4.72 4.77 .15 1.10 1.25
- --------------------------------------------------------------------------------------------------------------------
HIGH YIELD
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
1997..................... 11.93 .98 .41 1.39 1.02 -- 1.02
1/1/98 to 6/30/98........ 12.30 .48 .05 .53 .98 -- .98
- --------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES
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
1997..................... 17.19 .18 1.26 1.44 .20 1.52 1.72
1/1/98 to 6/30/98........ 16.91 .12 2.76 2.88 .16 .86 1.02
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE
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
1997..................... 11.36 .74 .31 1.05 .74 -- .74
1/1/98 to 6/30/98........ 11.67 .33 .14 .47 .71 -- .71
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
70
<PAGE>
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
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 RATIO TO AVERAGE NET ASSETS
BEFORE
ASSETS+ EXPENSES WAIVED OR ASSUMED
NET ASSET NET ASSETS ------------------------ -----------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ++ (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) THOUSANDS) (%) (%) (%) (%) (%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH
1993..................... $ 17.45 6.00 $ 25,658 .91 .43 N/A N/A 51
1994..................... 16.73 (2.87) 32,797 .90 .60 N/A N/A 40
1995..................... 20.47 25.12 51,171 .88 1.11 N/A N/A 64
1996..................... 24.56 24.45 78,806 .85 .92 N/A N/A 49
1997..................... 29.24 29.28 127,585 .82 .64 N/A N/A 27
1/1/98 to 6/30/98........ 32.76 16.60 162,690 .81(a) .34(a) N/A N/A 14
- -----------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD
1993..................... $ 11.16 18.16 $ 30,593 .91 9.49 N/A N/A 96
1994..................... 10.58 (1.56) 32,285 .88 9.43 N/A N/A 50
1995..................... 11.57 19.82 41,894 .87 9.86 N/A N/A 57
1996..................... 11.93 12.56 49,474 .85 9.43 N/A N/A 34
1997..................... 12.30 12.47 59,619 .83 8.88 N/A N/A 40
1/1/98 to 6/30/98........ 11.85 4.47 65,398 .82(a) 8.63(a) N/A N/A 19
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES
1993..................... $ 13.74 22.17 $ 21,009 1.14 .97 N/A N/A 37
1994..................... 13.51 (1.29) 31,308 1.03 1.22 N/A N/A 36
1995..................... 15.58 18.70 41,012 1.02 1.42 N/A N/A 45
1996..................... 17.19 15.23 57,955 1.12 1.25 N/A N/A 67
1997..................... 16.91 9.09 74,463 1.13 1.15 N/A N/A 71
1/1/98 to 6/30/98........ 18.77 17.49 89,728 1.23(a) 1.32(a) N/A N/A 40
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE
1993..................... $ 10.95 10.93 $ 10,210 .35 6.32 .85 5.82 64
1994..................... 10.31 (3.53) 11,602 .37 6.61 .92 6.06 15
1995..................... 11.73 19.69 16,262 .51 6.80 .91 6.40 26
1996..................... 11.36 2.84 16,390 .60 6.47 .88 6.19 19
1997..................... 11.67 9.81 17,220 .60 6.54 .87 6.27 41
1/1/98 to 6/30/98........ 11.43 4.23 18,706 .66(a) 6.32(a) .82(a) 6.16(a) 46
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
71
<PAGE>
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.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------
NET
REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE UNREALIZED ----------------------
--------- NET GAIN (LOSS) TOTAL FROM NET NET
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
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
1997................ 11.71 .59 .90 1.49 .57 -- .57
1/1/98 to 6/30/98... 12.63 .31 .38 .69 .61 -- .61
- ----------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010
4/30/96* to
12/31/96.......... $ 10.00 $ .26 $ .90 $ 1.16 $ -- $ -- $ --
1997................ 11.16 .45 1.29 1.74 .20 -- .20
1/1/98 to 6/30/98... 12.70 .27 .50 .77 .48 .01 .49
- ----------------------------------------------------------------------------------------------------------------
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
1997................ 12.57 .37 2.64 3.01 .36 .27 .63
1/1/98 to 6/30/98... 14.95 .15 .64 .79 .35 .55 .90
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations
(a) Annualized
+ Some or all expenses have been waived or assumed by the investment adviser
from commencement of operations through June 30, 1998 (Note 5).
++ The effect of fees and charges incurred at the separate account level are not
reflected in these performance figures.
See notes to financial statements
72
<PAGE>
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
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
RATIO TO AVERAGE NET ASSETS BEFORE
EXPENSES WAIVED OR
NET ASSETS+ ASSUMED
NET ASSET ASSETS ----------------------- -------------------------
VALUE TOTAL END OF NET NET PORTFOLIO
--------- RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
END ++ (IN EXPENSES INCOME EXPENSES INCOME RATE
OF PERIOD (%) THOUSANDS) (%) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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
1996................ 11.71 (2.16) 14,647 .60 6.05 .82 5.83 13
1997................ 12.63 13.38 20,300 .60 5.91 .82 5.69 1
1/1/98 to 6/30/98... 12.71 5.66 22,646 .65(a) 5.41(a) .82(a) 5.24(a) 0
- --------------------------------------------------------------------------------------------------------------------------------
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
1997................ 12.70 15.86 5,209 .60 5.88 .87 5.61 13
1/1/98 to 6/30/98... 12.98 6.25 7,046 .65(a) 5.31(a) .81(a) 5.15(a) 0
- --------------------------------------------------------------------------------------------------------------------------------
UTILITIES INCOME
11/15/93* to
12/31/93.......... $ 9.94 (4.66)(a) $ 494 -- 1.46(a) 3.98(a) (2.52)(a) 0
1994................ 9.19 (7.24) 4,720 .17 4.13 .95 3.35 31
1995................ 11.74 30.26 14,698 .41 4.23 .91 3.73 17
1996................ 12.57 9.57 24,108 .60 3.48 .86 3.22 45
1997................ 14.95 25.07 33,977 .67 3.12 .85 2.94 64
1/1/98 to 6/30/98... 14.84 5.54 41,689 .67(a) 2.58(a) .82(a) 2.43(a) 49
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations
(a) Annualized
+ Some or all expenses have been waived or assumed by the investment adviser
from commencement of operations through June 30, 1998 (Note 5).
++ The effect of fees and charges incurred at the separate account level are not
reflected in these performance figures.
See notes to financial statements
73
<PAGE>
INDEPENDENT AUDITORS' 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 June 30, 1998, and the related statement of operations
for the six months then ended, the statement of changes in net assets for the
six months ended June 30, 1998 and the year ended December 31, 1997 and
financial highlights for each of the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Life Series
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1998, 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 at June 30,
1998, 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
July 31, 1998
74
<PAGE>
FIRST INVESTORS LIFE SERIES FUND
TRUSTEES
- -------------------------------------------
JAMES J. COY (Emeritus)
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
REX R. REED
HERBERT RUBINSTEIN
NANCY S. SCHAENEN
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 TO MAINTAIN A STABLE
NET ASSET VALUE OF $1.00 PER SHARE. HOWEVER, THERE CAN BE NO ASSURANCE THAT THE
FUND WILL BE ABLE TO DO SO OR ACHIEVE ITS INVESTMENT OBJECTIVE. AN INVESTMENT IN
THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
SHAREHOLDER INFORMATION
- -------------------------------------------
INVESTMENT ADVISER
FIRST INVESTORS MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
SUBADVISER
(Growth Fund and International Securities Fund Only)
WELLINGTON MANAGEMENT COMPANY, LLP
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
Eight Penn Center Plaza
Philadelphia, PA 19103
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.
75
<PAGE>
FIRST INVESTORS LIFE SERIES FUND
95 WALL STREET
NEW YORK, NY 10005
First Investors Logo
Logo is described as follows: The arabic numeral one separated into seven
vertical segments followed by the words "First Investors."
A MEMBER OF THE
FIRST INVESTORS FINANCIAL NETWORK
LIFE310
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" appear in a box to the
right of a circle containing the words "MAILED FROM ZIP CODE 11201" which
appears to the right of the above language in the printed piece.
Vertically reading from bottom to top in the center of the page the words "FIRST
INVESTORS" appear in the printed piece.
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
SEMI-
ANNUAL
REPORT
JUNE 30, 1998
