<PAGE>
First Investors Logo
BLUE CHIP
CASH MANAGEMENT
DISCOVERY
GOVERNMENT
GROWTH
HIGH YIELD
INTERNATIONAL SECURITIES
INVESTMENT GRADE
TARGET MATURITY 2007
TARGET MATURITY 2010
UTILITIES INCOME
LIFE SERIES FUNDS
SEMI - ANNUAL REPORT
JUNE 30, 1999
<PAGE>
MARKET OVERVIEW
FIRST INVESTORS LIFE SERIES FUND
Dear Investor:
We are pleased to present this Market Overview for the semi-annual report for
the First Investors Life Series funds for the six month period ended June 30,
1999. The period under review was characterized by a strong U.S. economy, rising
interest rates and a climbing stock market.
THE ECONOMY
The U.S. economy, now in its ninth year of expansion, continued its remarkable
performance. Economic growth in the first quarter of 1999 was strong, with the
Gross Domestic Product (GDP) growing by 4.3% on an annualized basis. The
momentum continued into the second quarter, with growth of 2.3% on an annualized
basis. Although the economy continued to expand, inflation stayed under control.
As of June 30, the rate of inflation for the previous 12 months was 2% as
measured by the Consumer Price Index (CPI). The unemployment rate remained near
its lowest level in 30 years at 4.3%. Rising personal income, high consumer
confidence, wealth from stock market gains and home price appreciation combined
to power economic growth.
THE EQUITY MARKET
During the reporting period, most sectors of the equity market posted strong
gains, driven largely by the vibrant domestic economy, healthy corporate
earnings and subsiding concerns about inflation. There was a dramatic rotation
among equity sectors during the period, as investors responded to perceived
economic changes.
As the first quarter of 1999 began, investors were concerned about a possible
slowing economy and a deteriorating corporate profit outlook for the year.
Investors gravitated toward "growth" stocks, placing their bets on promising
companies that they felt had the potential to grow at a rate faster than that of
the economy. Early in the year, high-flying Internet stocks led the equity
rally. Prominent technology companies continued to flourish as investors
theorized that they would be able to post strong earnings despite an economic
slowdown. The continued growth of Internet-related businesses helped boost the
performances of providers of telecommunications services by fueling the need for
greater bandwidth. In addition, leading hardware, software and networking
companies' strong gains were propelled by the Internet phenomenon. In general,
the returns of stocks of large capitalization companies outpaced those of medium
capitalization and small capitalization companies for the first quarter.
In the second quarter of 1999, a number of economic influences triggered a
pronounced shift in the equity environment. Economic data showed that earlier
fears of sluggish growth were unjustified and that the U.S. economy remained
surprisingly strong. In the international arena, economies throughout the world
were generally healthy thanks to the stabilization of many emerging markets and
central bank intervention aimed to keep interest rates and inflation low. Amid
this good news,
1
<PAGE>
MARKET OVERVIEW (continued)
FIRST INVESTORS LIFE SERIES FUND
concerns mounted that the strong economic climate would spur inflation and raise
interest rates. This boosted the stock performances of old-line industries whose
sales jump when the economy booms and inflation rises.
The stocks of once lagging sectors such as metals, energy, basic materials,
chemicals, paper and other classic cyclicals produced strong gains. The rising
interest rate environment caused investors to pull away from growth-oriented and
technology/ Internet-related companies whose high price to earnings ratio made
them appear overvalued. In a stunning reversal, the stocks of small-cap
companies outpaced large-and mid-cap firms. Their gains were powered by strong
earnings reports and heavy mergers and acquisition activity, as promising small
companies were absorbed by larger firms.
THE BOND MARKET
During the first half of 1999, interest rates moved sharply higher, causing bond
prices to decline. The 30-year U.S. Treasury rate rose from 5.10% on December 31
to 5.96% on June 30. The bellwether rate reached a high of 6.16% in June. This
rising interest rate environment was driven by a number of factors, including
the improvement of economies around the globe. With foreign economies and
markets recovering from last year's financial markets crisis, the "flight to
safety" which had benefited U.S. Treasuries reversed, as investors returned to
riskier asset classes.
As well, the Federal Reserve became concerned that the continued strength of the
U.S. economy, particularly when combined with tight labor markets, would lead to
inflation. In an effort to preempt inflation, the Fed raised the Federal Funds
rate 25 basis points (.25%), to 5%, on June 30. This tightening of monetary
policy was a partial unwinding of last Fall's 75 basis point (.75%) decrease in
the Federal Funds rate. Although the Fed has currently adopted a neutral stance
toward interest rates, it remains alert to developments that may require further
rate increases.
Among bond sectors, the high yield bond market provided the highest total
returns over the past six months, as companies benefited from the strong economy
and healthy earnings. The mortgage-backed bond market was the second best
performing bond sector as higher rates substantially reduced prepayment risk.
Treasury securities and investment grade corporate bonds had the lowest total
returns among bond sectors, in large part due to heavy issuance of U.S. agency
and corporate debt. Lastly, in June, long-term municipal bond yields rose to
their highest level in over 18 months.
LOOKING AHEAD
Going forward, we remain optimistic that the equity market could produce
positive gains for the remainder of the year. However, we are watchful that an
economic downturn could negatively affect investor sentiment. As the year
progresses, Year 2000 issues will increasingly hang over some stocks and
industries. Overall, we are
2
<PAGE>
encouraged by the healthy fundamentals of the domestic economy and promising
corporate earnings, which should create a positive backdrop for the equity
market.
We anticipate that the bond market will remain stable, at best, for the next
three to six months. The domestic economy remains strong, although inflation is
not yet apparent. The Fed should remain vigilant in its mission to keep
inflation under control. To this end, one or two additional interest rate hikes
over the next six months are possible. The bond markets can potentially perform
better in the next six to nine months if the economy slows, inflation remains
low and the Fed is satisfied with the economic outlook.
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.
[SIGNATURE]
Patricia D. Poitra
Director of Equities
First Investors Management Company, Inc.
July 30, 1999
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--94.7%
BASIC MATERIALS--2.1%
7,200 Alcoa, Inc. $ 445,500 $ 19
7,600 Du Pont (E.I.) de Nemours & Company 519,175 22
27,800 Ecolab, Inc. 1,212,775 51
67,400 Mead Corporation 2,813,950 119
--------------------------------------------------------------------------------------
4,991,400 211
--------------------------------------------------------------------------------------
CAPITAL GOODS--9.1%
17,400 Deere & Company 689,475 29
43,500 Ford Motor Company 2,455,031 104
66,900 General Electric Company 7,559,700 321
55,100 Ingersoll-Rand Company 3,560,838 151
22,800 Pitney Bowes, Inc. 1,464,900 62
60,600 Tyco International, Ltd. 5,741,850 244
--------------------------------------------------------------------------------------
21,471,794 911
--------------------------------------------------------------------------------------
COMMUNICATION SERVICES--5.4%
48,600 Bell Atlantic Corporation 3,177,225 135
31,400 GTE Corporation 2,378,550 101
70,900 *MCI WorldCom, Inc. 6,115,125 260
29,300 *Qwest Communications International, Inc. 968,731 41
--------------------------------------------------------------------------------------
12,639,631 537
--------------------------------------------------------------------------------------
CONSUMER CYCLICALS--8.8%
29,200 *Abercrombie & Fitch Company - Class "A" 1,401,600 59
14,400 *Best Buy Company, Inc. 972,000 41
50,400 *Costco Companies, Inc. 4,035,150 171
34,400 Home Depot, Inc. 2,216,650 94
57,900 Masco Corporation 1,671,862 71
48,800 McGraw-Hill Companies, Inc. 2,632,150 112
21,750 *Office Depot, Inc. 479,859 20
34,000 Tribune Company 2,962,250 126
92,000 Wal-Mart Stores, Inc. 4,439,000 188
--------------------------------------------------------------------------------------
20,810,521 882
--------------------------------------------------------------------------------------
CONSUMER STAPLES--14.0%
52,800 Anheuser-Busch Companies, Inc. 3,745,500 159
121,600 *AT&T Corp. - Liberty Media Group - Class "A" 4,468,800 190
--------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
51,800 Bergen Brunswig Corporation - Class "A" $ 893,550 $ 38
29,000 Bestfoods 1,435,500 61
29,300 *Clear Channel Communications, Inc. 2,019,869 86
37,200 General Mills, Inc. 2,989,950 127
40,200 *Kroger Company 1,123,087 48
107,800 PepsiCo, Inc. 4,170,512 177
27,100 Procter & Gamble Company 2,418,675 103
62,000 *Safeway, Inc. 3,069,000 130
61,200 Time Warner, Inc. 4,498,200 191
16,428 Unilever NV - NY Shares (ADR) 1,145,853 49
21,900 *Viacom, Inc. - Class "B" 963,600 41
--------------------------------------------------------------------------------------
32,942,096 1,400
--------------------------------------------------------------------------------------
ENERGY--4.8%
64,000 Baker Hughes, Inc. 2,144,000 91
13,200 Chevron Corporation 1,256,475 53
54,700 Exxon Corporation 4,218,737 179
5,800 Mobil Corporation 574,200 24
19,300 Royal Dutch Petroleum Company - NY Shares (ADR) 1,162,825 49
64,100 Sunoco, Inc. 1,935,019 82
--------------------------------------------------------------------------------------
11,291,256 478
--------------------------------------------------------------------------------------
FINANCIAL--16.4%
9,300 American Express Company 1,210,162 51
34,400 American International Group, Inc. 4,026,950 171
79,600 Banc One Corporation 4,741,175 201
29,889 Bank of America Corporation 2,191,237 93
20,800 Capital One Financial Corporation 1,158,300 49
56,400 Chase Manhattan Corporation 4,885,650 207
70,350 Citigroup, Inc. 3,341,625 142
21,000 Fannie Mae 1,435,875 61
63,800 First Union Corporation 2,998,600 127
33,700 Freddie Mac 1,954,600 83
54,700 Hartford Financial Services Group, Inc. 3,189,694 135
18,150 Jefferson-Pilot Corporation 1,201,303 51
72,900 MBNA Corporation 2,232,563 95
14,700 Merrill Lynch & Company, Inc. 1,175,081 50
--------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
7,100 Morgan Stanley Dean Witter & Company $ 727,750 $ 31
46,300 SLM Holding Corporation 2,121,119 90
--------------------------------------------------------------------------------------
38,591,684 1,637
--------------------------------------------------------------------------------------
HEALTHCARE--11.1%
26,900 Abbott Laboratories 1,223,950 52
103,900 American Home Products Corporation 5,974,250 254
40,300 Bristol-Myers Squibb Company 2,838,631 120
19,300 Cardinal Health, Inc. 1,237,613 53
25,200 Eli Lilly and Company 1,804,950 77
26,100 Johnson & Johnson 2,557,800 109
21,500 Medtronic, Inc. 1,674,313 71
48,300 Merck & Company, Inc. 3,574,200 152
16,300 Pfizer, Inc. 1,788,925 76
51,300 Warner-Lambert Company 3,558,938 151
--------------------------------------------------------------------------------------
26,233,570 1,115
--------------------------------------------------------------------------------------
TECHNOLOGY--21.1%
4,400 *America Online, Inc. 486,200 21
30,800 *Applied Materials, Inc. 2,275,350 97
66,700 *Cisco Systems, Inc. 4,302,150 183
41,100 *Compuware Corporation 1,307,494 55
202,800 Ericsson (L.M.) Telephone Company (ADR) - Class
"B" 6,679,725 283
20,400 Hewlett-Packard Company 2,050,200 87
68,300 Intel Corporation 4,063,850 172
19,400 International Business Machines Corporation 2,507,450 106
32,800 *Jabil Circuit, Inc. 1,480,100 63
15,300 *Litton Industries, Inc. 1,097,775 47
57,900 *LSI Logic Corporation 2,670,638 113
46,400 Lucent Technologies, Inc. 3,129,100 133
49,000 *Metzler Group, Inc. 1,353,625 57
43,000 *Microsoft Corporation 3,878,063 165
13,600 Nortel Networks Corporation 1,180,650 50
37,200 *Oracle Corporation 1,381,050 59
29,300 *Sequent Computer Systems, Inc. 520,075 22
15,600 *Sun Microsystems, Inc. 1,074,450 46
190,900 *Symantec Corporation 4,867,950 207
- ---------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
44,800 Xerox Corporation $ 2,646,000 $ 112
13,000 *Xilinx, Inc. 744,250 32
--------------------------------------------------------------------------------------
49,696,145 2,110
--------------------------------------------------------------------------------------
UTILITIES--1.9%
53,600 Enron Corporation 4,381,800 186
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $149,752,005) 223,049,897 9,467
--------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.5%
$ 2,000M Eastman Kodak Co., 5.40%, 7/16/99 1,995,499 85
6,800M Florida Power Corp., 5.18%, 7/14/99 6,787,269 288
1,800M New York Times Co., 4.97%, 7/13/99 1,797,011 76
--------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $10,579,779) 10,579,779 449
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $160,331,784) 99.2% 233,629,676 9,916
OTHER ASSETS, LESS LIABILITIES .8 1,983,853 84
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $235,613,529 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
June 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL INTEREST $10,000 OF
AMOUNT SECURITY RATE* VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE NOTES--91.0%
$ 100M Alabama Power Co., 8/1/99 5.20% $ 100,092 $ 128
350M Archer-Daniels-Midland Co., 7/13/99 4.80 349,438 448
260M Associates Corp., N.A., 9/1/99 5.20 260,858 334
300M Chevron USA, Inc., 7/7/99 5.11 299,744 384
220M Eastman Kodak Co., 7/1/99 4.96 220,000 282
230M Exxon Capital Corp., 7/15/99 5.00 230,116 295
250M Florida Power Corp., 7/16/99 5.00 249,478 320
111M Ford Motor Co., 11/15/99 5.10 111,919 143
250M Gannett Co., Inc., 5/1/00 5.80 250,162 321
300M General Electric Co., 8/3/99 5.19 298,573 383
300M General Mills, Inc., 7/20/99 5.15 299,184 383
200M Halliburton Co., 7/13/99 5.10 199,660 256
325M Heinz, H.J. Co., 10/15/99 5.15 326,443 418
250M IBM Credit Corp., 8/3/99 4.98 248,856 319
300M Kellogg Co., 7/20/99 4.95 299,215 383
300M Laclede Gas Co., 7/19/99 5.15 299,227 383
200M Nalco Chemical Co., 8/5/99 4.86 199,050 255
200M National Rural Utilities Cooperative Finance
Corp., 8/20/99 5.00 198,609 255
300M New York Times Co., 7/19/99 4.85 299,270 384
320M Paccar Financial Corp., 7/9/99 4.90 319,651 410
200M PepsiCo, Inc., 9/1/99 5.18 200,299 257
100M PepsiCo, Inc., 9/1/99 5.40 100,171 128
200M Pitney Bowes Credit Corp., 7/15/99 5.00 200,111 256
224M Procter & Gamble Co., 7/12/99 4.90 223,664 287
320M Schering-Plough Corp., 7/27/99 4.86 318,872 409
220M Shell Oil Co., 7/1/99 5.00 220,000 282
100M Shell Oil Co., 7/1/99 5.45 100,000 128
100M Southwestern Bell Telephone Co., 8/20/99 5.20 100,167 128
130M Walt Disney Co., 7/27/99 5.20 129,512 166
200M Walt Disney Co., 4/17/00 5.68 199,776 256
240M Xerox Corp., 3/15/00 5.45 246,977 316
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE NOTES (cost $7,099,094) 7,099,094 9,097
- ------------------------------------------------------------------------------------------------------
</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>
U.S. GOVERNMENT AGENCY OBLIGATIONS--9.8%
$ 200M Federal Farm Credit Bank, 10/1/99 5.10% $ 201,693 $ 259
250M Federal Home Loan Bank, 10/28/99 5.00 249,957 320
200M Federal National Mortgage Association, 8/10/99 4.81 198,927 255
120M Federal National Mortgage Association, 8/10/99 5.08 120,146 154
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY OBLIGATIONS
(cost $770,723) 770,723 988
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $7,869,817) 100.8% 7,869,817 10,085
EXCESS OF LIABILITIES OVER OTHER ASSETS (0.8) (66,086) (85)
- ------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $7,803,731 $10,000
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
</TABLE>
* THE INTEREST RATES SHOWN FOR THE CORPORATE NOTES AND THE U.S. GOVERNMENT
AGENCY OBLIGATIONS ARE THE EFFECTIVE RATES AT THE TIME OF PURCHASE BY THE
FUND.
See notes to financial statements
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--92.3%
BASIC MATERIALS--2.3%
85,100 *ChiRex, Inc. $ 2,733,837 $ 228
--------------------------------------------------------------------------------------
CAPITAL GOODS--3.0%
38,200 *CommScope, Inc. 1,174,650 98
43,100 *Flextronics International, Ltd. 2,392,050 200
--------------------------------------------------------------------------------------
3,566,700 298
--------------------------------------------------------------------------------------
COMMUNICATION SERVICES--8.9%
41,200 *Allegiance Telecom, Inc. 2,260,850 189
33,200 *Commonwealth Telephone Enterprise, Inc. 1,342,525 112
104,400 *ICG Communications, Inc. 2,231,550 186
42,000 *ITC/DeltaCom, Inc. 1,176,000 98
99,500 *US LEC Corporation - Class "A" 2,238,750 187
28,600 *WinStar Communications, Inc. 1,394,250 116
--------------------------------------------------------------------------------------
10,643,925 888
--------------------------------------------------------------------------------------
CONSUMER CYCLICALS--9.1%
25,100 *Fossil, Inc. 1,214,212 101
87,400 Fred's, Inc. 1,365,625 114
59,200 *Hibbett Sporting Goods, Inc. 1,302,400 109
172,800 Interface, Inc. 1,490,400 124
19,200 Kellwood Company 520,800 43
33,600 *NCO Group, Inc. 1,276,800 107
44,000 *Travis Boats & Motors, Inc. 638,000 53
48,800 *Tuesday Morning Corporation 1,244,400 104
129,800 Wolverine World Wide, Inc. 1,817,200 152
--------------------------------------------------------------------------------------
10,869,837 907
--------------------------------------------------------------------------------------
CONSUMER STAPLES--15.5%
42,800 *AT&T Corp. - Liberty Media Group - Class "A" 1,572,900 131
27,100 *Beringer Wine Estates Holdings, Inc. - Class
"B" 1,132,273 95
113,100 *Cinar Corporation - Class "B" 2,770,950 231
61,400 *Citadel Communications Corporation 2,221,912 186
70,100 Earthgrains Company 1,809,456 151
166,794 *Four Media Company 1,084,161 91
35,200 *Jones Intercable, Inc. - Class "A" 1,724,800 144
93,300 *Packaged Ice, Inc. 553,969 46
--------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
62,800 *Suiza Foods Corporation $ 2,629,750 $ 220
64,200 *Whole Foods Market, Inc. 3,085,612 258
--------------------------------------------------------------------------------------
18,585,783 1,553
--------------------------------------------------------------------------------------
ENERGY--1.6%
65,500 *Newfield Exploration Company 1,862,656 156
--------------------------------------------------------------------------------------
FINANCIAL--4.2%
55,800 Chittenden Corporation 1,743,750 146
74,900 HCC Insurance Holdings, Inc. 1,699,294 142
43,800 Westamerica Bancorporation 1,598,700 133
--------------------------------------------------------------------------------------
5,041,744 421
--------------------------------------------------------------------------------------
HEALTHCARE--17.5%
81,000 Hooper Holmes, Inc. 1,650,375 138
92,900 *Impath, Inc. 2,508,300 209
78,100 Jones Pharma, Inc. 3,075,187 257
177,680 *Kensey Nash Corporation 1,421,440 119
61,000 *Molecular Devices Corporation 2,287,500 191
132,300 *Province Healthcare Company 2,579,850 215
109,000 *SangStat Medical Corporation 1,880,250 157
24,200 Teva Pharmaceutical Industries, Ltd. (ADR) 1,185,800 99
46,700 *Trigon Healthcare, Inc. 1,698,712 142
221,668 *US Oncology, Inc. 2,660,016 222
--------------------------------------------------------------------------------------
20,947,430 1,749
--------------------------------------------------------------------------------------
TECHNOLOGY--30.2%
33,100 *Alpha Industries, Inc. 1,576,387 132
37,600 *Amdocs, Ltd. 855,400 71
29,200 *Comverse Technology, Inc. 2,204,600 184
107,500 *Condor Technology Solutions, Inc. 503,906 42
5,200 *Cree Research, Inc. 400,075 33
58,300 *DII Group, Inc. 2,175,319 182
35,900 *Etec Systems, Inc. 1,193,675 100
17,800 *Exodus Communications, Inc. 2,134,888 178
32,700 *Galileo Technology, Ltd. 1,481,719 124
7,900 *Go2Net, Inc. 725,813 61
103,100 *IMRglobal Corporation 1,984,675 166
9,900 *Inktomi Corporation 1,292,569 108
--------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
20,700 *KLA-Tencor Corporation $ 1,342,913 $ 112
82,600 *N I C E Systems, Ltd. (ADR) 2,276,663 190
130,900 *Orckit Communications, Ltd. 3,239,775 271
75,300 *Peapod, Inc. 597,694 50
53,400 *Preview Travel, Inc. 1,171,463 98
38,300 *PRI Automation, Inc. 1,388,375 116
27,600 *RF Micro Devices, Inc. 2,059,650 172
193,500 *Saga Systems, Inc. 2,467,125 206
73,600 *Symantec Corporation 1,876,800 157
30,200 *Synopsys, Inc. 1,666,663 139
66,600 *Take-Two Interactive Software, Inc. 507,825 42
95,000 *ViewCast.com, Inc. 638,286 53
10,200 *WebTrends Corporation 470,475 39
--------------------------------------------------------------------------------------
36,232,733 3,026
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $87,027,689) 110,484,645 9,226
--------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--8.7%
$ 3,700M Alabama Power Co., 5%, 7/12/99 3,694,340 308
1,350M Eastman Kodak Co., 5.28%, 7/9/99 1,348,415 113
1,000M Florida Power Corp., 4.98%, 7/13/99 998,338 83
4,400M Kellogg Co., 5.07%, 7/28/99 4,383,252 366
--------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$10,424,345) 10,424,345 870
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $97,452,034) 101.0% 120,908,990 10,096
EXCESS OF LIABILITIES OVER OTHER ASSETS (1.0) (1,152,022) (96)
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $119,756,968 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
12
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GOVERNMENT FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED CERTIFICATES--59.3%
Federal Home Loan Mortgage Corporation--8.7%
$ 902M 8.50%, 7/1/2022-9/1/2024 $ 946,999 $ 867
Federal National Mortgage Association--28.8%
1,968M 9%, 6/1/2015-11/1/2026 2,088,325 1,912
944M 11%, 10/1/2015 1,059,598 970
Government National Mortgage Association I
Program--21.8%
1,276M 8%, 7/15/2018 1,326,168 1,214
788M 10%, 5/15/2019 850,173 778
184M 11.50%, 10/15/2012-5/15/2015 208,480 192
- --------------------------------------------------------------------------------------
TOTAL VALUE OF MORTGAGE-BACKED CERTIFICATES (cost
$6,497,304) 6,479,743 5,933
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--13.6%
500M Federal Home Loan Mortgage Corporation, 5.75%,
4/15/2008 476,060 436
1,000M Tennessee Valley Authority Power Board, 6.375%,
6/15/2005 1,004,408 919
- --------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY OBLIGATIONS
(cost $1,501,853) 1,480,468 1,355
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--22.4%
2,000M United States Treasury Notes, 5.625%, 5/15/2008 1,959,376 1,794
500M United States Treasury Notes, 5.50%, 5/15/2009 488,437 447
- --------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT OBLIGATIONS (cost
$2,555,542) 2,447,813 2,241
- --------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.3%
250M Eastman Kodak Co., 5.28%, 7/9/1999 (cost
$249,707) 249,707 229
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $10,804,406) 97.6% 10,657,731 9,758
OTHER ASSETS, LESS LIABILITIES 2.4 264,848 242
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $10,922,579 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
13
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--97.1%
AEROSPACE/DEFENSE--.9%
14,000 *General Motors Corporation - Class "H" $ 787,500 $ 35
18,000 United Technologies Corporation 1,290,375 57
--------------------------------------------------------------------------------------
2,077,875 92
--------------------------------------------------------------------------------------
BANKS--5.4%
102,898 Citigroup, Inc. 4,887,655 218
37,200 First Union Corporation 1,748,400 78
20,000 Mercantile Bankshares Corporation 707,500 31
6,000 National Commerce Bancorporation 131,250 6
19,100 State Street Corporation 1,630,662 73
44,900 U.S. Bancorp 1,526,600 68
15,200 Westamerica Bancorporation 554,800 25
16,000 Wilmington Trust Corporation 918,000 41
--------------------------------------------------------------------------------------
12,104,867 540
--------------------------------------------------------------------------------------
BUSINESS SERVICES--2.4%
9,600 *Barnett, Inc. 72,000 3
23,600 G&K Services, Inc. - Class "A" 1,236,050 55
28,900 Herman Miller, Inc. 606,900 27
22,200 *IONICS, Inc. 810,300 36
4,000 *Lason, Inc. 198,500 9
31,500 Manpower, Inc. 712,687 32
9,100 *Robert Half International, Inc. 236,600 11
24,750 *Tetra Tech, Inc. 408,375 18
36,156 *United Rentals, Inc. 1,066,602 47
--------------------------------------------------------------------------------------
5,348,014 238
--------------------------------------------------------------------------------------
CHEMICALS--2.4%
27,300 Du Pont (E.I.) de Nemours & Company 1,864,931 83
25,400 Minerals Technologies, Inc. 1,417,637 63
42,600 Praxair, Inc. 2,084,737 93
--------------------------------------------------------------------------------------
5,367,305 239
--------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.5%
14,300 *Black Box Corporation 716,787 32
73,500 *Cisco Systems, Inc. 4,740,750 211
47,036 Lucent Technologies, Inc. 3,171,990 141
--------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMUNICATIONS EQUIPMENT (continued)
14,000 Motorola, Inc. $ 1,326,500 $ 59
26,000 Nokia Corporation (ADR) - Class "A" 2,380,625 106
--------------------------------------------------------------------------------------
12,336,652 549
--------------------------------------------------------------------------------------
COMPUTERS & OFFICE EQUIPMENT--5.3%
42,600 *EMC Corporation 2,343,000 104
18,600 Hewlett-Packard Company 1,869,300 83
38,200 International Business Machines Corporation 4,937,350 220
10,700 Symbol Technologies, Inc. 394,562 18
38,100 Xerox Corporation 2,250,281 100
--------------------------------------------------------------------------------------
11,794,493 525
--------------------------------------------------------------------------------------
DRUGS--7.6%
50,500 American Home Products Corporation 2,903,750 129
29,100 AstraZeneca Group PLC (ADR) 1,140,356 51
19,300 *Genzyme Corporation 936,050 42
3,454 *Genzyme Surgical Products 15,219 1
19,900 Johnson & Johnson 1,950,200 87
31,300 Merck & Company, Inc. 2,316,200 103
9,400 PE Corp. - PE Biosystems Group 1,078,650 48
18,600 Pfizer, Inc. 2,041,350 91
40,000 Pharmacia & Upjohn, Inc. 2,272,500 101
34,200 Warner-Lambert Company 2,372,625 106
--------------------------------------------------------------------------------------
17,026,900 759
--------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.8%
50,400 General Electric Company 5,695,200 254
35,000 *Littlefuse, Inc. 673,750 30
--------------------------------------------------------------------------------------
6,368,950 284
--------------------------------------------------------------------------------------
ELECTRONICS--5.6%
42,700 *Analog Devices, Inc. 2,143,006 95
27,100 *Applied Materials, Inc. 2,002,012 89
24,500 Dallas Semiconductor Corporation 1,237,250 55
54,500 Intel Corporation 3,242,750 144
19,800 *Micron Technology, Inc. 798,187 36
--------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRONICS (continued)
16,400 Texas Instruments, Inc. $ 2,378,000 $ 106
14,000 *Xilinx, Inc. 801,500 36
--------------------------------------------------------------------------------------
12,602,705 561
--------------------------------------------------------------------------------------
ENERGY SERVICES--1.1%
7,100 *Hanover Compressor Company 228,088 10
34,400 Schlumberger, Ltd. 2,190,850 98
--------------------------------------------------------------------------------------
2,418,938 108
--------------------------------------------------------------------------------------
ENERGY SOURCES--3.1%
6,400 *Barrett Resources Corporation 245,600 11
19,400 Chevron Corporation 1,846,638 82
31,600 Exxon Corporation 2,437,150 108
39,300 Royal Dutch Petroleum Company - NY Shares (ADR) 2,367,825 105
--------------------------------------------------------------------------------------
6,897,213 306
--------------------------------------------------------------------------------------
ENTERTAINMENT PRODUCTS--.5%
27,000 *Speedway Motorsports, Inc. 1,061,438 47
--------------------------------------------------------------------------------------
FINANCIAL SERVICES--4.4%
78,500 Associates First Capital Corporation - Class "A" 3,478,531 155
33,280 Fannie Mae 2,275,520 101
13,300 FINOVA Group, Inc. 699,913 31
31,600 Franklin Resources, Inc. 1,283,750 57
27,500 Merrill Lynch & Company, Inc. 2,198,281 98
--------------------------------------------------------------------------------------
9,935,995 442
--------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--2.4%
21,500 *Beringer Wine Estates Holdings, Inc. - Class
"B" 898,298 40
19,500 Coca-Cola Company 1,218,750 54
39,100 PepsiCo, Inc. 1,512,681 67
43,700 Philip Morris Companies, Inc. 1,756,194 78
--------------------------------------------------------------------------------------
5,385,923 239
--------------------------------------------------------------------------------------
HEALTH SERVICES--3.0%
35,000 Cardinal Health, Inc. 2,244,375 100
49,450 Columbia/HCA Healthcare Corporation 1,128,078 50
--------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTH SERVICES (continued)
46,100 *Covance, Inc. $ 1,103,519 $ 49
32,000 *Henry Schein, Inc. 1,014,000 45
20,200 Shared Medical Systems Corporation 1,318,050 59
--------------------------------------------------------------------------------------
6,808,022 303
--------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--2.4%
12,200 *Bush Boake Allen, Inc. 356,850 16
20,500 Colgate-Palmolive Company 2,024,375 90
23,000 Gillette Company 943,000 42
24,000 Procter & Gamble Company 2,142,000 95
--------------------------------------------------------------------------------------
5,466,225 243
--------------------------------------------------------------------------------------
HOUSING--.4%
23,000 Ethan Allen Interiors, Inc. 868,250 39
--------------------------------------------------------------------------------------
INSURANCE--3.8%
45,000 Ace, Ltd. 1,271,250 57
24,893 American International Group, Inc. 2,914,037 130
34,500 Frontier Insurance Group, Inc. 530,438 24
40,000 Marsh & McLennan Companies, Inc. 3,020,000 134
23,100 Reinsurance Group of America, Inc. 814,275 36
--------------------------------------------------------------------------------------
8,550,000 381
--------------------------------------------------------------------------------------
MACHINERY & MANUFACTURING--3.4%
16,000 Corning, Inc. 1,122,000 50
25,000 Donaldson Company, Inc. 612,500 27
10,100 Eaton Corporation 929,200 41
15,000 Illinois Tool Works, Inc. 1,230,000 55
5,000 MacDermid, Inc. 232,500 10
29,300 *MSC Industrial Direct Co., Inc. - Class "A" 300,325 13
11,000 Nordson Corporation 673,750 30
27,600 Tyco International, Ltd. 2,615,100 116
--------------------------------------------------------------------------------------
7,715,375 342
--------------------------------------------------------------------------------------
MEDIA--7.4%
23,500 *Acxiom Corporation 586,031 26
2,400 *ADVO, Inc. 49,800 2
14,400 *America Online, Inc. 1,591,200 71
70,700 *American Tower Corporation - Class "A" 1,696,800 76
--------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDIA (continued)
74,200 *AT&T Corp.-Liberty Media Group - Class "A" $ 2,726,850 $ 121
10,500 *Catalina Marketing Corporation 966,000 43
25,800 *CBS Corporation 1,120,688 50
51,400 *Cox Communications, Inc. - Class "A" 1,892,163 84
29,000 Gannett Company, Inc. 2,069,875 92
24,600 Time Warner, Inc. 1,808,100 80
7,400 *Univision Communications, Inc. - Class "A" 488,400 22
52,700 Walt Disney Company 1,623,819 72
--------------------------------------------------------------------------------------
16,619,726 739
--------------------------------------------------------------------------------------
MEDICAL PRODUCTS--2.3%
42,800 Abbott Laboratories 1,947,400 87
29,200 Baxter International, Inc. 1,770,250 79
27,600 *Boston Scientific Corporation 1,212,675 54
5,200 *Waters Corporation 276,250 12
--------------------------------------------------------------------------------------
5,206,575 232
--------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.3%
15,500 Bemis Company, Inc. 616,125 27
--------------------------------------------------------------------------------------
PIPELINE--.1%
5,000 American Water Works Co., Inc. 153,750 7
--------------------------------------------------------------------------------------
RETAIL--7.0%
4,000 *Bed Bath & Beyond, Inc. 154,000 7
46,800 CVS Corporation 2,392,650 107
36,000 Dayton Hudson Corporation 2,340,000 104
42,275 Dollar General Corporation 1,225,975 55
56,200 Home Depot, Inc. 3,621,388 161
41,250 *Staples, Inc. 1,276,172 57
80,000 Wal-Mart Stores, Inc. 3,860,000 172
18,000 *Whole Foods Market, Inc. 865,125 38
--------------------------------------------------------------------------------------
15,735,310 701
--------------------------------------------------------------------------------------
SOFTWARE/SERVICES--9.2%
20,400 *American Management Systems, Inc. 654,075 29
52,000 Automatic Data Processing, Inc. 2,288,000 102
18,300 *BISYS Group, Inc. 1,070,550 48
33,000 *Computer Sciences Corporation 2,283,188 102
--------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
SOFTWARE/SERVICES (continued)
21,000 *DST Systems, Inc. $ 1,320,375 $ 59
40,000 First Data Corporation 1,957,500 87
1,800 *Juniper Networks, Inc. 268,200 12
73,200 *Microsoft Corporation 6,601,725 294
33,000 *Policy Management Systems Corporation 990,000 44
18,400 *Sterling Commerce, Inc. 671,600 30
50,500 *Sterling Software, Inc. 1,347,719 60
14,700 *Synopsys, Inc. 811,256 36
28,400 *Systems & Computer Technology Corporation 413,575 18
--------------------------------------------------------------------------------------
20,677,763 921
--------------------------------------------------------------------------------------
TELEPHONE--5.3%
30,300 AT&T Corporation 1,691,119 75
45,900 Bell Atlantic Corporation 3,000,713 134
40,700 *MCI WorldCom, Inc. 3,510,375 156
11,700 *McLeodUSA, Inc. - Class "A" 643,500 29
54,100 SBC Communications, Inc. 3,137,800 140
--------------------------------------------------------------------------------------
11,983,507 534
--------------------------------------------------------------------------------------
TRANSPORTATION--1.0%
22,750 Air Express International Corporation 577,281 26
30,900 C.H. Robinson Worldwide, Inc. 1,135,575 51
22,500 Werner Enterprises, Inc. 466,875 21
--------------------------------------------------------------------------------------
2,179,731 98
--------------------------------------------------------------------------------------
TRAVEL & LEISURE--2.1%
54,500 McDonald's Corporation 2,251,531 100
25,000 *Mesaba Holdings, Inc. 318,750 14
71,300 Southwest Airlines Company 2,219,213 99
--------------------------------------------------------------------------------------
4,789,494 213
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $133,606,941) 218,097,121 9,709
--------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENT--2.2%
$ 4,940M Lehman Brothers, Inc., 4.85%, 7/1/99
(collateralized by U.S. Treasury Strips, due
5/15/10, valued at $5,221,463)(cost $4,940,000) $ 4,940,000 $ 220
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $138,546,941) 99.3% 223,037,121 9,929
OTHER ASSETS, LESS LIABILITIES .7 1,597,747 71
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $224,634,868 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
20
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--92.3%
APPAREL/TEXTILES--3.0%
$ 900M Pillowtex Corp., 10%, 2006 $ 906,750 $ 136
1,100M Polymer Group, Inc., 9%, 2007 1,058,750 159
- -------------------------------------------------------------------------------------
1,965,500 295
- -------------------------------------------------------------------------------------
AUTOMOTIVE--5.6%
1,000M Collins & Aikman Products Co., 11.50%, 2006 1,012,500 152
950M Exide Corp., 10%, 2005 957,125 144
1,100M Special Devices, Inc., 11.375%, 2008 + 995,500 150
700M Walbro Corp., 9.875%, 2005 757,750 114
- -------------------------------------------------------------------------------------
3,722,875 560
- -------------------------------------------------------------------------------------
BUILDING MATERIALS--.7%
500M Falcon Building Products, Inc., 9.50%, 2007 476,250 72
- -------------------------------------------------------------------------------------
CHEMICALS--2.4%
600M Huntsman Polymers Corp., 11.75%, 2004 639,000 96
1,025M Hydrochem Industrial Services, Inc., 10.375%,
2007 927,625 140
- -------------------------------------------------------------------------------------
1,566,625 236
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS--2.4%
970M Corning Consumer Products Co., 9.625%, 2008 851,175 128
700M Herff Jones, Inc., 11%, 2005 752,500 113
- -------------------------------------------------------------------------------------
1,603,675 241
- -------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--4.1%
725M Plastic Containers, Inc., 10%, 2006 801,125 120
1,000M Radnor Holdings Corp., 10%, 2003 1,010,000 152
900M Tekni-Plex, Inc., 9.25%, 2008 882,000 133
- -------------------------------------------------------------------------------------
2,693,125 405
- -------------------------------------------------------------------------------------
DURABLE GOODS MANUFACTURING--4.1%
750M Clark Material Handling Co., 10.75%, 2006 663,750 100
1,240M Columbus McKinnon Corp., 8.50%, 2008 1,209,000 182
1,000M Numatics, Inc., 9.625%, 2008 815,000 123
- -------------------------------------------------------------------------------------
2,687,750 405
- -------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRICAL EQUIPMENT--1.9%
$ 1,250M Amphenol Corp., 9.875%, 2007 $ 1,275,000 $ 192
- -------------------------------------------------------------------------------------
ENERGY--4.8%
800M Chesapeake Energy Corp., 9.625%, 2005 752,000 113
800M Giant Industries, Inc., 9.75%, 2003 776,000 117
1,000M Veritas DGC, Inc., 9.75%, 2003 1,027,500 155
650M Vintage Petroleum, Inc., 9%, 2005 646,750 97
- -------------------------------------------------------------------------------------
3,202,250 482
- -------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--2.8%
1,100M Loews Cineplex Entertainment Corp., 8.875%, 2008 1,062,875 160
1,200M Outboard Marine Corp., 10.75%, 2008 822,000 124
- -------------------------------------------------------------------------------------
1,884,875 284
- -------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--3.5%
1,300M Canandaigua Brands, Inc., 8.50%, 2009 1,257,750 189
1,000M International Home Foods, Inc., 10.375%, 2006 1,060,000 159
- -------------------------------------------------------------------------------------
2,317,750 348
- -------------------------------------------------------------------------------------
GAMING/LODGING--2.9%
1,000M Hollywood Park, Inc., 9.25%, 2007 985,000 148
1,000M Isle of Capri Casinos, Inc., 8.75%, 2009 + 942,500 142
- -------------------------------------------------------------------------------------
1,927,500 290
- -------------------------------------------------------------------------------------
HEALTHCARE--6.4%
500M Fisher Scientific International, Inc., 7.125%,
2005 462,619 70
700M Fisher Scientific International, Inc., 9%, 2008 675,500 102
900M Genesis Health Ventures, Inc., 9.75%, 2005 738,000 111
350M Integrated Health Services, Inc., 9.50%, 2007 253,312 38
1,000M Packard Bioscience, Inc., 9.375%, 2007 947,500 142
1,200M Tenet Healthcare Corp., 8.625%, 2007 1,176,000 177
- -------------------------------------------------------------------------------------
4,252,931 640
- -------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--8.7%
1,100M Diva Systems Corp., 0% - 12.625%, 2008 323,125 49
1,100M Echostar DBS Corp., 9.375%, 2009 + 1,122,000 169
1,000M Grupo Televisa SA, 11.875%, 2006 1,031,250 155
500M Rogers Cablesystems, Ltd., 10%, 2005 538,750 81
- -------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDIA (CABLE TV/BROADCASTING) (continued)
$ 1,000M Salem Communications Corp., 9.50%, 2007 $ 1,055,000 $ 159
1,000M Sinclair Broadcasting Group, Inc., 9%, 2007 992,500 149
700M Star Choice Communications, Inc., 13%, 2005 731,500 110
- -------------------------------------------------------------------------------------
5,794,125 872
- -------------------------------------------------------------------------------------
MEDIA (OTHER)--1.4%
1,000M Garden State Newspapers, Inc., 8.625%, 2011 + 947,500 143
- -------------------------------------------------------------------------------------
MINING/METALS--6.1%
900M Commonwealth Aluminum Corp., 10.75%, 2006 896,625 135
1,000M CSN Iron SA, 9.125%, 2007 + 765,000 115
750M WCI Steel, Inc., 10%, 2004 766,875 115
700M Wells Aluminum Corp., 10.125%, 2005 689,500 104
1,000M Wheeling-Pittsburgh Corp., 9.25%, 2007 950,000 143
- -------------------------------------------------------------------------------------
4,068,000 612
- -------------------------------------------------------------------------------------
MISCELLANEOUS--5.1%
500M Iron Mountain, Inc., 8.25%, 2011 + 477,500 72
1,050M Kindercare Learning Centers, Inc., 9.50%, 2009 1,008,000 152
950M Loomis Fargo & Co., 10%, 2004 940,500 141
886M Pierce Leahy Corp., 11.125%, 2006 965,740 145
- -------------------------------------------------------------------------------------
3,391,740 510
- -------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--7.1%
500M Container Corp. of America, 11.25%, 2004 522,500 79
1,050M Packaging Corp. of America, 9.625%, 2009 + 1,071,000 161
650M Riverwood International Corp., 10.25%, 2006 662,188 100
800M S.D. Warren Co., 12%, 2004 854,000 128
501M S.D. Warren Co., 14%, 2006 573,164 86
1,000M Stone Container Corp., 10.75%, 2002 1,038,750 156
- -------------------------------------------------------------------------------------
4,721,602 710
- -------------------------------------------------------------------------------------
REAL ESTATE/CONSTRUCTION--.5%
800M Cathay International, Ltd., 13%, 2008 + 312,000 47
- -------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
PRINCIPAL INVESTED
AMOUNT FOR EACH
OR $10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
RETAIL - FOOD/DRUG--2.8%
$ 1,000M Randall's Food Markets, Inc., 9.375%, 2007 $ 1,065,000 $ 160
820M Stater Brothers Holdings, Inc., 9%, 2004 791,300 119
- -------------------------------------------------------------------------------------
1,856,300 279
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS--14.5%
650M 21st Century Telecommunications Group, Inc.,
0% - 12.25%, 2008 281,125 42
1,000M Comcast Cellular Holdings, Inc., 9.50%, 2007 1,125,000 169
1,500M E. Spire Communications, Inc., 0% - 13%, 2005 888,750 134
1,200M Facilicom International, Inc., 10.50%, 2008 936,000 141
1,000M McCaw International, Ltd., 0% - 13%, 2007 620,000 93
1,250M Netia Holdings BV, 0% - 11.25%, 2007 784,375 118
1,000M Nextlink Communications, Inc., 9%, 2008 943,750 142
1,000M Pac-West Telecommunications, Inc., 13.50%, 2009 + 1,002,500 151
1,100M PowerTel, Inc., 0% - 12%, 2006 885,500 133
1,000M Qwest Communications International, Inc.,
0% - 9.47%, 2007 772,500 116
700M RCN Corp., 0% - 11%, 2008 435,750 66
1,500M Viatel, Inc., 0% - 12.50%, 2008 963,750 145
- -------------------------------------------------------------------------------------
9,639,000 1,450
- -------------------------------------------------------------------------------------
TRANSPORTATION--1.5%
1,000M American Commercial Lines LLC, 10.25%, 2008 1,007,500 152
- -------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $64,373,900) 61,313,873 9,225
- -------------------------------------------------------------------------------------
COMMON STOCKS--.7%
MEDIA (CABLE TV/BROADCASTING)--.5%
2,100 *Echostar Communications Corp. 322,219 49
- -------------------------------------------------------------------------------------
MEDIA (OTHER)--.2%
1,000 *Affiliated Newspapers Investment, Inc. 125,000 19
- -------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $20,963) 447,219 68
- -------------------------------------------------------------------------------------
PREFERRED STOCKS--.4%
MISCELLANEOUS
347 Day International Group, Inc., 12.25% (cost
$342,332) 287,142 43
- -------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS--.2%
MEDIA (CABLE TV/BROADCASTING)--.1%
3,300 *Diva Systems Corp. (expiring 3/1/08) + $ 39,600 $ 6
16,212 *Star Choice Communications, Inc. (expiring
12/15/05) + 42,557 7
- -------------------------------------------------------------------------------------
82,157 13
- -------------------------------------------------------------------------------------
MINING/METALS--.0%
800 *Gulf States Steel Aquisition Corp. (expiring
4/15/03) + 8 --
- -------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.1%
10,800 *S.D. Warren Co. (expiring 12/15/06) + 54,000 8
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.0%
1,500 *E. Spire Communications, Inc. (expiring 11/1/05) 15,000 2
1,000 *McCaw International, Ltd. (expiring 4/15/07) + 2,500 --
- -------------------------------------------------------------------------------------
17,500 2
- -------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $2,500) 153,665 23
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.5%
$ 1,000M United States Treasury Notes, 6.125%, 2007 (cost
$1,092,969) 1,011,250 152
- -------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.6%
250M Eastman Kodak Co., 5.10%, 7/8/99 249,752 38
1,500M Eastman Kodak Co., 5.28%, 7/9/99 1,498,239 225
- -------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$1,747,991) 1,747,991 263
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $67,580,655) 97.7% 64,961,140 9,774
OTHER ASSETS, LESS LIABILITIES 2.3 1,504,620 226
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $66,465,760 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
+ See Note 5
See notes to financial statements
25
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--89.5%
UNITED STATES--32.7%
14,250 Abbott Laboratories $ 648,375 $ 63
7,400 Alcoa, Inc. 457,875 44
10,300 Allied Signal, Inc. 648,900 63
4,150 American General Corporation 312,806 30
9,798 American International Group, Inc. 1,146,978 111
10,225 AT&T Corporation 570,771 55
7,500 Baxter International, Inc. 454,688 44
8,800 Chevron Corporation 837,650 81
24,950 *Cisco Systems, Inc. 1,609,275 156
23,437 Citigroup, Inc. 1,113,258 108
10,700 Columbia/HCA Healthcare Corporation 244,094 24
13,900 CVS Corporation 710,638 69
8,750 Du Pont (E.I.) de Nemours & Company 597,734 58
12,200 Exxon Corporation 940,925 91
7,925 First Data Corporation 387,830 38
10,600 Gannett Company, Inc. 756,575 73
7,800 General Electric Company 881,400 86
5,575 Hartford Financial Services Group, Inc. 325,092 32
12,070 Hewlett-Packard Company 1,213,035 118
19,100 Home Depot, Inc. 1,230,756 120
12,620 Intel Corporation 750,890 73
8,800 International Business Machines Corporation 1,137,400 110
11,550 Johnson & Johnson 1,131,900 110
6,750 Kimberly Clark Corporation 384,750 37
563 *LifePoint Hospitals, Inc. 7,565 1
7,800 Marsh & McLennan Companies, Inc. 588,900 57
20,700 McDonald's Corporation 855,169 83
12,917 *MCI WorldCom, Inc. 1,114,091 108
17,100 *Microsoft Corporation 1,542,206 150
14,130 Pharmacia & Upjohn, Inc. 802,761 78
7,800 Philip Morris Companies, Inc. 313,463 30
5,900 Praxair, Inc. 288,731 28
8,485 Procter & Gamble Company 757,286 74
17,180 SBC Communications, Inc. 996,440 97
8,030 Schlumberger, Ltd. 511,411 50
12,100 Servicemaster Company 226,875 22
26,750 Southwest Airlines Company 832,594 81
16,275 State Street Corporation 1,389,478 135
4,200 Texas Instruments, Inc. 609,000 59
--------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED STATES (continued)
563 *Triad Hospitals, Inc. $ 7,601 $ 1
7,000 Tyco International, Ltd. 663,250 64
12,500 U.S. Bancorp 425,000 41
29,500 Wal-Mart Stores, Inc. 1,423,375 138
23,540 Walt Disney Company 725,326 70
11,150 Warner-Lambert Company 773,531 75
5,700 Weyerhaeuser Company 391,875 38
--------------------------------------------------------------------------------------
33,739,523 3,274
--------------------------------------------------------------------------------------
FRANCE--8.5%
3,900 Accor SA 979,374 95
2,430 Alcatel 342,077 33
9,500 Alstom 298,819 29
4,220 AXA-Uap 514,852 50
6,222 Banque Nationale de Paris 518,473 50
2,280 Casino Guichard Perrachon 199,866 19
3,500 Compagnie de Saint Gobain 557,675 54
12,600 Michelin (CGDE) - Class "B" 515,487 50
8,320 Paribas 932,691 91
3,700 Societe Generale 652,122 63
4,270 Societe Nationale Elf Aquitaine SA 626,640 61
5,320 Suez Lyonnaise des Eaux 959,592 93
7,194 Total SA - Class "B" 928,138 90
9,090 Vivendi SA 736,368 72
--------------------------------------------------------------------------------------
8,762,174 850
--------------------------------------------------------------------------------------
UNITED KINGDOM--8.4%
13,600 Barclays PLC 395,740 38
91,013 BP Amoco PLC 1,631,183 158
25,500 British Airways PLC 175,956 17
18,969 British Telecommunications PLC 317,846 31
31,000 Cadbury Schweppes PLC 197,416 19
28,816 Diageo PLC 300,925 29
15,253 Granada Group PLC 282,990 28
6,400 HSBC Holdings PLC 233,435 23
9,500 HSBC Holdings PLC (75P) 336,485 33
10,800 Imperial Chemical Industries PLC 106,741 10
79,300 Invensys PLC 375,314 36
25,800 National Westminster Bank PLC 546,992 53
31,600 Prudential Corporation PLC 465,235 45
--------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
UNITED KINGDOM (continued)
47,600 Scottish Power PLC $ 411,175 $ 40
77,974 Smith & Nephew PLC 237,217 23
116,445 Smithkline Beecham PLC 1,513,388 147
56,714 Vodafone Airtouch PLC 1,117,479 109
--------------------------------------------------------------------------------------
8,645,517 839
--------------------------------------------------------------------------------------
JAPAN--8.1%
13,000 Bridgestone Corporation 393,093 38
19,000 Dai Nippon Printing, Ltd. 303,743 30
29,000 Eisai Company, Ltd. 571,423 56
11,000 Fujitsu, Ltd. 221,290 22
25,000 Hitachi, Ltd. 234,427 23
2,400 Mabuchi Motor Company, Ltd. 223,067 22
7,200 Matsumotokiyoshi Company, Ltd. 431,262 42
5,000 Matsushita Commnunication Industrial Company,
Ltd. 357,320 35
38,000 Nikko Securities, Ltd. 245,192 24
52 Nippon Telegraph & Telephone Corporation 605,750 59
55 NTT Mobile Communications Network, Inc. 745,208 72
39,000 Olympus Optical Company, Ltd. 576,429 56
2,000 Rohm Company, Ltd. 313,120 30
8,500 Sony Corporation 916,433 89
12,000 Takeda Chemical Industries, Ltd. 556,180 54
8,100 Takefuji Corporation 837,170 81
79,000 Toshiba Corporation 563,260 55
6,000 Yamanouchi Pharmaceutical Company, Ltd. 229,511 22
--------------------------------------------------------------------------------------
8,323,878 810
--------------------------------------------------------------------------------------
GERMANY--6.2%
1,760 Allianz AG 488,259 47
23,240 Bayer AG 968,283 94
6,520 DaimlerChrysler AG 564,822 55
6,000 Deutsche Bank AG 366,008 36
13,910 Hoechst AG 629,762 61
6,661 Mannesmann AG 994,015 97
2,500 Munchener Ruckver AG 462,796 45
15,910 Siemens AG 1,227,317 119
11,200 Veba AG 658,382 64
--------------------------------------------------------------------------------------
6,359,644 618
--------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS--4.5%
17,471 ING Groep NV $ 945,937 $ 92
16,246 Koninklijke Ahold NV 559,600 54
9,339 Koninklijke KPN NV 438,225 43
8,924 *Koninklijke Philips Electronics NV 880,298 86
5,700 Royal Dutch Petroleum Company 333,894 32
22,010 Unilever NV - CVA 1,483,374 144
--------------------------------------------------------------------------------------
4,641,328 451
--------------------------------------------------------------------------------------
SWITZERLAND--3.8%
210 Alusuisse Lonza Holdings, Ltd. 244,770 24
4,070 Credit Suisse Group - Reg. Shs. 704,252 68
310 Holderbank Financiere Glarus AG 365,914 36
662 Nestle AG 1,192,758 116
390 Novartis AG - Reg. Shs. 569,471 55
30 Roche Holdings AG - Genusscheine 308,375 30
1,340 Swisscom AG 504,245 49
--------------------------------------------------------------------------------------
3,889,785 378
--------------------------------------------------------------------------------------
SPAIN--3.3%
9,600 Banco Popular Espanol SA 690,558 67
21,200 Endesa SA 452,138 44
17,000 Endesa SA (ADR) 361,250 35
23,900 Repsol SA 488,032 47
11,736 Telefonica SA 565,347 55
5,545 Telefonica SA (ADR) 815,808 79
--------------------------------------------------------------------------------------
3,373,133 327
--------------------------------------------------------------------------------------
AUSTRALIA--2.9%
70,262 Australia & New Zealand Banking Group, Ltd. 516,640 50
69,631 Broken Hill Properties, Ltd. 806,553 78
50,732 News Corporation, Ltd. 432,840 42
5,100 News Corporation, Ltd. (ADR) 180,094 18
525,568 Pasminco, Ltd. 580,253 56
87,610 Telstra Corporation, Ltd. I/R 502,011 49
--------------------------------------------------------------------------------------
3,018,391 293
--------------------------------------------------------------------------------------
CANADA--2.3%
25,200 Alcan Aluminum, Ltd. 796,811 77
19,400 Canadian Imperial Bank of Commerce 461,374 45
--------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
CANADA (continued)
10,100 Canadian National Railway Company $ 676,700 $ 66
15,400 *Newbridge Networks Corporation 436,998 42
--------------------------------------------------------------------------------------
2,371,883 230
--------------------------------------------------------------------------------------
HONG KONG--1.4%
86,000 Cheung Kong Holdings, Ltd. 764,799 74
114,500 *China Telecom, Ltd. 318,019 31
92,000 New World Development Company, Ltd. 275,683 27
11,000 Sun Hung Kai Properties 100,304 10
--------------------------------------------------------------------------------------
1,458,805 142
--------------------------------------------------------------------------------------
FINLAND--1.6%
14,160 Nokia OYJ - Class "A" 1,241,273 121
13,000 Upm - Kymmene Corporation 372,712 36
--------------------------------------------------------------------------------------
1,613,985 157
--------------------------------------------------------------------------------------
SWEDEN--1.5%
8,360 Hennes & Mauritz AB - Class "B" 206,493 20
65,580 Nordbanken Holdings AB 383,360 37
7,250 Pharmacia & Upjohn (Swedish Dep. Shs.) 400,788 39
16,060 Telefonaktiebolaget L.M. Ericsson - Class "B" 514,744 50
--------------------------------------------------------------------------------------
1,505,385 146
--------------------------------------------------------------------------------------
ITALY--1.2%
97,033 Telecom Italia SpA 1,008,707 98
49,400 Unicredito Italiano SpA 217,031 21
--------------------------------------------------------------------------------------
1,225,738 119
--------------------------------------------------------------------------------------
BRAZIL--.7%
12,100 Embratel Participacoes SA (ADR) 167,887 16
3,800 *Telecomunicacoes Brasileiras SA (ADR) 342,712 33
8,700 Telesp Participacoes SA (ADR) 199,012 19
--------------------------------------------------------------------------------------
709,611 68
--------------------------------------------------------------------------------------
IRELAND--.6%
47,502 Allied Irish Banks PLC 628,970 61
--------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEXICO--.5%
6,700 *Grupo Televisa SA $ 300,244 $ 29
11,200 Panamerican Beverages, Inc. (ADR) Class "A" 266,700 26
--------------------------------------------------------------------------------------
566,944 55
--------------------------------------------------------------------------------------
SINGAPORE--.5%
44,000 Overseas Chinese Banking Corporation 366,990 36
41,000 Overseas Union Bank 197,474 19
--------------------------------------------------------------------------------------
564,464 55
--------------------------------------------------------------------------------------
DENMARK--.4%
6,690 Unidanmark A/S - Class "A" 446,496 43
--------------------------------------------------------------------------------------
NEW ZEALAND--.4%
11,000 Telecom Corporation of New Zealand, Ltd. (ADR) 384,313 37
--------------------------------------------------------------------------------------
SOUTH KOREA--.0%
400 Korea Telecom Corporation 26,540 3
--------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $68,193,321) 92,256,507 8,956
--------------------------------------------------------------------------------------
PREFERRED STOCKS--.6%
BRAZIL--.5%
433,700 Companhia Cervejaria Brahma 238,743 23
1,620,600 Petroleo Brasileiros SA - Petrobras 249,534 24
3,800 Telecomunicacoes Brasileiras SA (ADR) 237 --
5,000 *Vale Do Rio Doce - Class "B" -- --
--------------------------------------------------------------------------------------
488,514 47
--------------------------------------------------------------------------------------
NETHERLANDS--.1%
16,700 *Unilever NV 89,558 9
--------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $564,380) 578,072 56
--------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS--.0%
THAILAND
1,500 *Siam Commercial Bank (expring 12/31/02)
(cost $0) $ -- $ --
--------------------------------------------------------------------------------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES--8.1%
GERMANY--7.1%
EUR 1,850M Bundesobligation, 6.75%, 9/15/99 1,923,264 186
EUR 5,210M Bundesschatzanweisugen, 4%, 9/17/99 5,387,312 523
--------------------------------------------------------------------------------------
7,310,576 709
--------------------------------------------------------------------------------------
CANADA--1.0%
CAD 1,525M Canadian Treasury Bill, Zero Coupon, 10/28/99 1,016,869 99
--------------------------------------------------------------------------------------
TOTAL VALUE OF FOREIGN GOVERNMENT AND AGENCY
SECURITIES (cost $8,440,120) 8,327,445 808
--------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--2.5%
$2,582M Paribas Corp., 4.83%, 7/1/99 (collaterized by
U.S. Treasury Note, due 7/15/06, valued at
$2,638,562) (cost $2,582,000) 2,582,000 251
--------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $79,779,821) 100.7% 103,744,024 10,071
EXCESS OF LIABILITIES OVER OTHER ASSETS (.7) (729,784) (71)
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $103,014,240 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
Currency Abbreviations:
EUR - Euro
CAD - Canadian Dollar
See notes to financial statements
32
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 1999
Sector diversification of the portfolio was as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PERCENTAGE OF
SECTOR NET ASSETS VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Banks.................................. 11.2% $ 11,522,827
Telephone.............................. 8.3 8,559,942
Drugs.................................. 8.2 8,455,373
Energy Sources......................... 5.9 6,035,996
Media.................................. 5.7 5,873,543
Insurance.............................. 5.1 5,250,855
Retail................................. 4.6 4,761,990
Communication Equipment................ 4.4 4,501,687
Metals & Minerals...................... 3.7 3,809,851
Travel & Leisure....................... 3.0 3,126,083
Electronics............................ 2.9 3,009,025
Computers & Office Equipment........... 2.8 2,913,695
Household Products..................... 2.6 2,714,968
Electrical Equipment................... 2.6 2,707,098
Food/Beverage/Tobacco.................. 2.4 2,510,005
Software Services...................... 1.9 1,930,036
Medical Products....................... 1.9 1,916,709
Pipeline............................... 1.6 1,695,960
Electric Utilities..................... 1.5 1,521,695
Automotive............................. 1.4 1,473,402
Financial Services..................... 1.1 1,082,362
Chemicals.............................. 1.0 993,206
Machinery & Manufacturing.............. .9 962,069
Entertainment Products................. .9 916,433
Business Services...................... .7 764,799
Paper/Forest Products.................. .7 764,587
Transportation......................... .7 676,700
Aerospace/Defense...................... .6 648,900
Energy Services........................ .5 511,411
Health Services........................ .5 486,135
Real Estate Companies.................. .4 375,987
Utilities.............................. .4 361,250
Foreign Government and Agency
Securities........................... 8.1 8,327,445
Repurchase Agreement................... 2.5 2,582,000
- --------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS 100.7 103,744,024
EXCESS OF LIABILITIES OVER OTHER ASSETS (.7) (729,784)
- --------------------------------------------------------------------
NET ASSETS 100.0% $103,014,240
- --------------------------------------------------------------------
- --------------------------------------------------------------------
</TABLE>
See notes to financial statements
33
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--82.8%
AEROSPACE/DEFENSE--5.5%
$ 250M Lockheed Martin Corp., 7.25%, 2006 $ 249,778 $ 117
300M Raytheon Co., 6.15%, 2008 282,703 132
100M Raytheon Co., 6.55%, 2010 96,217 45
250M Rockwell International Corp., 8.375%, 2001 257,940 120
300M Thiokol Corp., 6.625%, 2008 281,353 131
- --------------------------------------------------------------------------------------
1,167,991 545
- --------------------------------------------------------------------------------------
APPAREL/TEXTILES--1.2%
260M Westpoint Stevens, Inc., 7.875%, 2008 251,550 117
- --------------------------------------------------------------------------------------
BASIC MATERIALS--1.2%
270M Navistar International Corp., 8%, 2008 265,950 124
- --------------------------------------------------------------------------------------
CHEMICALS--2.7%
250M Du Pont (E.I.) de Nemours & Co., 8.125%, 2004 267,058 125
300M Lubrizol Corp., 7.25%, 2025 302,626 141
- --------------------------------------------------------------------------------------
569,684 266
- --------------------------------------------------------------------------------------
CONGLOMERATES--2.6%
300M Hanson Overseas BV, 7.375%, 2003 306,250 143
250M Tenneco, Inc., 7.875%, 2027 243,318 114
- --------------------------------------------------------------------------------------
549,568 257
- --------------------------------------------------------------------------------------
CONSUMER PRODUCTS--2.3%
250M Dial Corp., 6.50%, 2008 238,305 111
265M Mattel, Inc., 6%, 2003 258,553 121
- --------------------------------------------------------------------------------------
496,858 232
- --------------------------------------------------------------------------------------
ELECTRIC & GAS UTILITIES--7.5%
250M Baltimore Gas & Electric Co., 6.50%, 2003 250,303 117
265M Consumers Energy Co., 6.375%, 2008 250,013 117
350M Duke Energy Co., 5.875%, 2003 350,843 164
200M Kansas Gas & Electric Co., 7.60%, 2003 206,027 96
150M Niagara Mohawk Power Co., 7.625%, 2005 152,054 71
62M Old Dominion Electric Cooperative, 7.97%, 2002 63,803 30
- --------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRIC & GAS UTILITIES (continued)
$ 250M Philadelphia Electric Co., 8%, 2002 $ 258,973 $ 121
75M Southwestern Electric Power Co., 7%, 2007 75,343 35
- --------------------------------------------------------------------------------------
1,607,359 751
- --------------------------------------------------------------------------------------
ENERGY--3.9%
315M Baroid Corp., 8%, 2003 331,321 155
275M Occidental Petroleum Corp., 6.40%, 2013 268,289 125
250M Phillips Petroleum Co., 7.20%, 2023 232,559 108
- --------------------------------------------------------------------------------------
832,169 388
- --------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--2.1%
150M Time Warner, Inc., 6.875%, 2018 139,893 65
300M Walt Disney Co., 6.75%, 2006 302,869 141
- --------------------------------------------------------------------------------------
442,762 206
- --------------------------------------------------------------------------------------
FINANCIAL SERVICES--9.7%
300M Chemical Bank NY, 7%, 2005 305,836 143
200M Citicorp, 8%, 2003 209,117 98
300M First Union Corp., 8.125%, 2002 313,170 146
250M Fleet Capital Trust II, 7.92%, 2026 250,117 117
300M KeyCorp, 7.50%, 2006 309,083 144
250M Mellon Bank NA, 6.50%, 2005 246,382 115
50M Meridian Bancorp, 7.875%, 2002 51,903 24
75M Morgan Guaranty Trust Co. NY, 7.375%, 2002 76,704 36
300M NationsBank Corp., 8.125%, 2002 314,237 147
- --------------------------------------------------------------------------------------
2,076,549 970
- --------------------------------------------------------------------------------------
FOOD SERVICE--1.2%
250M McDonald's Corp., 6.625%, 2005 251,264 117
- --------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--5.8%
250M Anheuser-Busch Companies, Inc., 7%, 2005 251,025 117
225M Coca-Cola Enterprises, Inc., 7.875%, 2002 234,082 109
300M Hershey Foods Corp., 6.70%, 2005 300,502 140
275M Pepsi Bottling Group, Inc., 7%, 2029 257,834 120
200M Philip Morris Companies, Inc., 7.125%, 2002 202,537 94
- --------------------------------------------------------------------------------------
1,245,980 580
- --------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
GAS TRANSMISSION--2.8%
$ 300M Columbia Energy Group, 6.80%, 2005 $ 295,616 $ 138
300M Enron Corp., 7.125%, 2007 298,850 139
- --------------------------------------------------------------------------------------
594,466 277
- --------------------------------------------------------------------------------------
HEALTHCARE--2.5%
275M Merck & Co., Inc., 5.95%, 2028 241,579 113
300M Warner-Lambert Co., 6%, 2008 291,910 136
- --------------------------------------------------------------------------------------
533,489 249
- --------------------------------------------------------------------------------------
INSURANCE--1.2%
250M First Colony Corp., 6.625%, 2003 251,555 117
- --------------------------------------------------------------------------------------
INVESTMENT/FINANCE COMPANIES--4.3%
300M Associates Corp. of North America, 7.875%, 2001 310,217 145
300M General Electric Capital Corp., 7.875%, 2006 319,661 149
300M General Motors Acceptance Corp., 6.625%, 2005 296,723 138
- --------------------------------------------------------------------------------------
926,601 432
- --------------------------------------------------------------------------------------
MEDIA (CABLE TV/BROADCASTING)--4.0%
300M New York Times Co., Inc., 7.625%, 2005 314,325 147
250M News America Holdings, Inc., 8.50%, 2005 264,545 123
300M PanAmSat Corp., 6.375%, 2008 283,723 132
- --------------------------------------------------------------------------------------
862,593 402
- --------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--1.2%
250M Temple Inland, Inc., 9%, 2001 259,786 121
- --------------------------------------------------------------------------------------
RETAIL - FOOD/DRUG--1.3%
300M Kroger Co., 7%, 2018 280,388 131
- --------------------------------------------------------------------------------------
RETAIL - GENERAL MERCHANDISE--2.9%
300M Federated Department Stores, Inc., 7.45%, 2017 301,461 141
300M Wal-Mart Stores, Inc., 8%, 2006 325,891 152
- --------------------------------------------------------------------------------------
627,352 293
- --------------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY--2.3%
$ 250M International Business Machines Corp., 5.375%,
2009 $ 228,643 $ 107
275M Xerox Corp., 7.20%, 2016 274,346 128
- --------------------------------------------------------------------------------------
502,989 235
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS--11.8%
275M AT&T Corp., 6%, 2009 258,574 121
300M Cable & Wireless Communications PLC, 6.75%, 2008 289,897 135
350M MCI Communications Corp., 7.50%, 2004 362,033 169
250M New Jersey Bell Telephone Co., 7.375%, 2012 247,211 115
300M New York Telephone Co., 7.25%, 2024 291,066 136
200M Pacific Bell Telephone Co., 7%, 2004 203,750 95
275M Sprint Capital Corp., 6.125%, 2008 256,731 120
300M TCI Communications, Inc., 6.375%, 2003 298,565 139
305M WorldCom, Inc., 8.875%, 2006 323,717 151
- --------------------------------------------------------------------------------------
2,531,544 1,181
- --------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
300M Norfolk Southern Corp., 7.35%, 2007 306,289 143
- --------------------------------------------------------------------------------------
UTILITIES--1.4%
300M Pennsylvania Power & Light Co., 6.875%, 2003 303,605 142
- --------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $17,998,085) 17,738,341 8,276
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--9.1%
2,000M United States Treasury Notes, 5.625%, 2008
(cost $2,046,875) 1,959,376 914
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--2.2%
500M Federal National Mortgage Association, 5.75%,
2008
(cost $500,747) 477,988 223
- --------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--4.0%
$ 350M Eastman Kodak Co., 5.10%, 7/8/99 $ 349,653 $ 163
500M Eastman Kodak Co., 5.28%, 7/9/99 499,413 233
- --------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$849,066) 849,066 396
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $21,394,773) 98.1% 21,024,771 9,809
OTHER ASSETS, LESS LIABILITIES 1.9 408,942 191
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $21,433,713 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
38
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
June 30, 1999
<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--56.4%
Agency For International Development -
Israel:
$ 570M 2/15/2007 6.21% $ 357,586 $ 139
119M 3/15/2007 6.21 74,262 29
1,513M 8/15/2007 6.21 920,583 358
1,000M 11/15/2007 6.22 598,805 233
980M 2/15/2008 6.28 574,946 223
493M Federal Judiciary Office Building, 2/15/2007 6.37 305,586 119
Federal National Mortgage Association:
525M 10/8/2007 6.39 312,158 121
719M 11/29/2007 6.40 423,311 164
558M 2/1/2008 6.44 323,786 126
1,134M 8/1/2008 6.48 635,382 247
766M Government Trust Certificate - Turkey Trust,
11/15/2007 6.30 455,710 177
Government Trust Certificate - Israel Trust:
307M 10/1/2007 6.20 185,511 72
6,154M 11/15/2007 6.30 3,661,150 1,422
586M International Bank for Reconstruction &
Development, 8/15/2007 6.87 338,475 131
5,390M Resolution Funding Corporation,
10/15/2007 6.16 3,259,743 1,266
Tennessee Valley Authority:
2,600M 11/1/2007 6.41 1,536,930 597
1,000M 4/15/2008 6.48 570,745 222
- ----------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS (cost $14,247,382) 14,534,669 5,646
- ----------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
June 30, 1999
<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--42.4%
$ 200M Treasury Investors Growth Receipts, 11/15/2007 6.13% $ 120,640 $ 47
17,750M U.S. Treasury Strips, 11/15/2007 6.03 10,794,023 4,193
- ----------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. TREASURY ZERO COUPON
OBLIGATIONS (cost $10,508,873) 10,914,663 4,240
- ----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.0%
250M Chevron USA, Inc., 5.18%, 7/7/99 (cost $249,784) 249,784 97
- ----------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $25,006,039) 99.8% 25,699,116 9,983
OTHER ASSETS, LESS LIABILITIES .2 43,595 17
- ----------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $25,742,711 $ 10,000
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>
* THE EFFECTIVE YIELDS SHOWN FOR THE ZERO COUPON OBLIGATIONS ARE THE EFFECTIVE
YIELDS AT JUNE 30, 1999.
See notes to financial statements
40
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
June 30, 1999
<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--55.8%
Agency For International Development - Israel:
$ 603M 8/15/2010 6.43% $ 298,197 $ 341
495M 9/15/2010 6.43 243,403 278
Federal National Mortgage Association:
700M 10/8/2010 6.62 336,135 385
600M 11/29/2010 6.62 285,326 326
921M 2/1/2011 6.62 433,153 495
200M Government Trust Certificate - Israel, 11/15/2010 6.52 96,416 110
1,700M Government Trust Certificate - Turkey, 11/15/2010 6.52 819,536 937
Resolution Funding Corporation:
650M 10/15/2010 6.40 319,193 365
2,998M 1/15/2011 6.41 1,447,281 1,655
1,250M Tennessee Valley Authority, 11/1/2010 6.63 596,929 683
- -----------------------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS (cost $4,844,831) 4,875,569 5,575
- -----------------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--41.6%
7,330M U.S. Treasury Strips, 11/15/2010
(cost $3,549,520) 6.25 3,640,349 4,163
- -----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.3%
200M Chevron USA, Inc., 5.18%, 7/7/99
(cost $199,827) 199,827 228
- -----------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $8,594,178) 99.7% 8,715,745 9,966
OTHER ASSETS, LESS LIABILITIES .3 29,780 34
- -----------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $8,745,525 $10,000
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</TABLE>
* THE EFFECTIVE YIELDS SHOWN FOR THE ZERO COUPON OBLIGATIONS ARE THE EFFECTIVE
YIELDS AT JUNE 30, 1999.
See notes to financial statements
41
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS LIFE UTILITIES INCOME FUND
June 30, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--93.1%
CAPITAL GOODS--1.1%
5,800 General Electric Company $ 655,400 $ 108
- -----------------------------------------------------------------------------------------
COMMUNICATION SERVICES--39.5%
8,200 ALLTEL Corporation 586,300 97
16,000 *AT&T Canada, Inc. - Class "B" 1,025,000 169
12,800 AT&T Corporation 714,400 118
13,400 BCE, Inc. 660,787 109
29,000 Bell Atlantic Corporation 1,895,875 313
27,800 Bellsouth Corporation 1,303,125 215
32,175 CenturyTel, Inc. 1,278,956 211
20,500 Frontier Corporation 1,209,500 200
6,400 GTE Corporation 484,800 80
42,200 *ICG Communications, Inc. 902,025 149
45,300 *Intermedia Communications, Inc. 1,359,000 224
23,000 *IXC Communications, Inc. 904,187 149
13,704 KPN NV (ADR) 657,792 109
25,653 *MCI WorldCom, Inc. 2,212,571 365
14,200 *McLeodUSA, Inc. - Class "A" 781,000 129
26,000 *Primus Telecommunications Group, Inc. 583,375 96
39,522 *Qwest Communications International, Inc. 1,306,696 216
31,700 SBC Communications, Inc. 1,838,600 303
19,400 Sprint Corporation 1,024,562 169
6,400 Telecomunicacoes Brasileiras SA (ADR) 577,200 95
16,600 Telephone and Data Systems, Inc. 1,212,837 200
18,700 US West, Inc. 1,098,625 181
7,000 *WinStar Communications, Inc. 341,250 56
- -----------------------------------------------------------------------------------------
23,958,463 3,953
- -----------------------------------------------------------------------------------------
FINANCIAL--1.6%
20,100 Health Care REIT, Inc. 467,325 77
24,800 Nationwide Health Properties, Inc. 472,750 78
- -----------------------------------------------------------------------------------------
940,075 155
- -----------------------------------------------------------------------------------------
UTILITIES--50.9%
21,200 BEC Energy 874,500 144
14,900 Carolina Power & Light Company 637,906 105
22,500 Coastal Corporation 900,000 148
4,300 Columbia Energy Group 269,556 44
- -----------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
16,600 Consolidated Edison, Inc. $ 751,150 $ 124
26,000 DPL, Inc. 477,750 79
36,550 DQE, Inc. 1,466,569 242
14,500 Duke Energy Corporation 788,437 130
49,200 Dynegy, Inc. 1,002,450 165
16,800 El Paso Energy Corporation 591,150 98
16,700 Endesa SA (ADR) 354,875 59
19,200 Enron Corporation 1,569,600 259
21,400 FPL Group, Inc. 1,168,975 193
37,800 Illinova Corporation 1,030,050 170
21,800 MDU Resources Group, Inc. 497,312 82
31,600 MidAmerican Energy Holdings Company 1,094,150 181
14,200 Midcoast Energy Resources, Inc. 228,975 38
10,600 Montana Power Company 747,300 123
10,400 National Fuel Gas Company 504,400 83
23,400 New Century Energies, Inc. 908,212 150
10,500 New Jersey Resources Corporation 393,094 65
53,500 *Niagara Mohawk Holdings, Inc. 859,344 142
9,400 NICOR, Inc. 357,788 59
4,400 NiSource, Inc. 113,575 19
19,100 NUI Corporation 477,500 79
44,900 OGE Energy Corporation 1,066,375 176
32,100 PacifiCorp 589,838 97
15,000 Peoples Energy Corporation 565,313 93
22,900 Pinnacle West Capital Corporation 921,725 152
28,900 Potomac Electric Power Company 850,744 140
39,600 Public Service Company of New Mexico 787,050 130
25,800 Reliant Energy, Inc. 712,725 118
6,700 RGS Energy Group, Inc. 177,969 29
38,100 SCANA Corporation 890,588 147
41,500 Sempra Energy 938,938 155
14,600 Sierra Pacific Resources 531,075 88
23,100 Texas Utilities Company 952,875 157
35,000 UtiliCorp United, Inc. 850,938 140
16,900 Washington Gas Light Company 439,400 72
30,800 Western Resources, Inc. 820,050 135
39,800 Williams Companies, Inc. 1,693,988 279
- -----------------------------------------------------------------------------------------
30,854,209 5,089
- -----------------------------------------------------------------------------------------
56,408,147 9,305
TOTAL VALUE OF COMMON STOCKS (cost $44,147,414)
- -----------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
FIRST INVESTORS LIFE UTILITIES INCOME FUND
June 30, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
AMOUNT
INVESTED
SHARES OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONVERTIBLE PREFERRED STOCKS--1.7%
UTILITIES
61,400 Avista Corporation, $1.24, 11/1/2001
(cost $1,166,952) $ 1,043,800 $ 172
- -----------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.6%
$ 2,800M Gannett Co., Inc., 5.05%, 7/8/99 (cost
$2,797,248) 2,797,248 461
- -----------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $48,111,614) 99.4% 60,249,195 9,938
OTHER ASSETS, LESS LIABILITIES .6 375,596 62
- -----------------------------------------------------------------------------------------
NET ASSETS 100.0% $60,624,791 $10,000
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
</TABLE>
* NON-INCOME PRODUCING
See notes to financial statements
44
<PAGE>
This page intentionally left blank.
45
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS LIFE SERIES FUND
June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $160,331,784 $7,869,817 $ 97,452,034
------------ ---------- ------------
------------ ---------- ------------
At value (Note 1A)................... $233,629,676 $7,869,817 $120,908,990
Cash................................... 220,637 81,336 846,786
Receivables:
Investment securities sold........... 5,131,229 -- 1,612,554
Interest and dividends............... 128,051 77,088 10,951
Trust shares sold.................... 273,780 -- 61,446
------------ ---------- ------------
Total Assets........................... 239,383,373 8,028,241 123,440,727
------------ ---------- ------------
LIABILITIES
Payables:
Investment securities purchased...... 3,576,522 202,457 3,557,534
Trust shares redeemed................ 39,539 9,593 50,128
Forward currency contracts (Note
6)................................. -- -- --
Accrued advisory fee................... 152,973 3,331 75,087
Accrued expenses....................... 810 9,129 1,010
------------ ---------- ------------
Total Liabilities...................... 3,769,844 224,510 3,683,759
------------ ---------- ------------
NET ASSETS............................. $235,613,529 $7,803,731 $119,756,968
------------ ---------- ------------
------------ ---------- ------------
NET ASSETS CONSIST OF:
Capital paid in........................ $147,671,037 $7,803,731 $ 94,658,432
Accumulated net investment income
(loss)............................... 639,770 -- (162,582)
Accumulated net realized gain (loss) on
investments and foreign currency
transactions......................... 14,004,830 -- 1,804,162
Net unrealized appreciation
(depreciation) of investments and
foreign currency transactions........ 73,297,892 -- 23,456,956
------------ ---------- ------------
Total.................................. $235,613,529 $7,803,731 $119,756,968
------------ ---------- ------------
------------ ---------- ------------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING (Note 2)................. 8,350,154 7,803,731 4,283,246
------------ ---------- ------------
------------ ---------- ------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (Net
assets divided by shares
outstanding)......................... $ 28.22 $ 1.00 $ 27.96
------ ----- ------
------ ----- ------
</TABLE>
See notes to financial statements
46
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT
GOVERNMENT GROWTH HIGH YIELD SECURITIES GRADE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $10,804,406 $138,546,941 $67,580,655 $ 79,779,821 $21,394,773
----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ------------ -----------
At value (Note 1A)................... $10,657,731 $223,037,121 $64,961,140 $103,744,024 $21,024,771
Cash................................... 151,361 1,304,320 164,961 10,966 44,065
Receivables:
Investment securities sold........... -- 556,624 -- 3,069,639 --
Interest and dividends............... 78,412 114,148 1,406,227 352,633 355,411
Trust shares sold.................... 41,434 212,055 8,914 77,898 24,006
----------- ----------- ----------- ------------ -----------
Total Assets........................... 10,928,938 225,224,268 66,541,242 107,255,160 21,448,253
----------- ----------- ----------- ------------ -----------
LIABILITIES
Payables:
Investment securities purchased...... -- 416,048 -- 4,104,530 --
Trust shares redeemed................ -- 18,904 18,355 20,152 540
Forward currency contracts (Note
6)................................. -- -- -- 5,887 --
Accrued advisory fee................... 5,837 145,045 44,941 68,307 11,544
Accrued expenses....................... 522 9,403 12,186 42,044 2,456
----------- ----------- ----------- ------------ -----------
Total Liabilities...................... 6,359 589,400 75,482 4,240,920 14,540
----------- ----------- ----------- ------------ -----------
NET ASSETS............................. $10,922,579 $224,634,868 $66,465,760 $103,014,240 $21,433,713
----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ------------ -----------
NET ASSETS CONSIST OF:
Capital paid in........................ $11,265,855 $134,788,926 $66,117,589 $ 72,350,196 $21,162,045
Accumulated net investment income
(loss)............................... 318,012 140,383 3,066,416 580,752 531,543
Accumulated net realized gain (loss) on
investments and foreign currency
transactions......................... (514,613) 5,215,379 (98,730) 6,131,429 110,127
Net unrealized appreciation
(depreciation) of investments and
foreign currency transactions........ (146,675) 84,490,180 (2,619,515) 23,951,863 (370,002)
----------- ----------- ----------- ------------ -----------
Total.................................. $10,922,579 $224,634,868 $66,465,760 $103,014,240 $21,433,713
----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ------------ -----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING (Note 2)................. 1,108,647 5,834,491 6,095,548 4,986,897 1,956,463
----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ------------ -----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (Net
assets divided by shares
outstanding)......................... $ 9.85 $ 38.50 $ 10.90 $ 20.66 $ 10.96
----- ----------- ----------- ------ -----------
----- ----------- ----------- ------ -----------
</TABLE>
See notes to financial statements
47
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS LIFE SERIES FUND
June 30, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
TARGET TARGET
MATURITY MATURITY UTILITIES
2007 2010 INCOME
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $25,006,039 $8,594,178 $48,111,614
----------- ---------- -----------
----------- ---------- -----------
At value (Note 1A)................... $25,699,116 $8,715,745 $60,249,195
Cash................................... 53,610 20,635 151,588
Receivables:
Investment securities sold........... -- -- 1,395,145
Interest and dividends............... -- -- 140,314
Trust shares sold.................... 4,922 14,320 47,746
----------- ---------- -----------
Total Assets........................... 25,757,648 8,750,700 61,983,988
----------- ---------- -----------
LIABILITIES
Payables:
Investment securities purchased...... -- -- 1,285,431
Trust shares redeemed................ 331 332 28,832
Accrued advisory fee................... 13,794 4,659 32,444
Accrued expenses....................... 812 184 12,490
----------- ---------- -----------
Total Liabilities...................... 14,937 5,175 1,359,197
----------- ---------- -----------
NET ASSETS............................. $25,742,711 $8,745,525 $60,624,791
----------- ---------- -----------
----------- ---------- -----------
NET ASSETS CONSIST OF:
Capital paid in........................ $24,483,531 $8,433,253 $45,793,662
Undistributed net investment income.... 688,325 236,767 588,424
Accumulated net realized gain (loss) on
investments.......................... (122,222) (46,062) 2,105,124
Net unrealized appreciation of
investments.......................... 693,077 121,567 12,137,581
----------- ---------- -----------
Total.................................. $25,742,711 $8,745,525 $60,624,791
----------- ---------- -----------
----------- ---------- -----------
SHARES OF BENEFICIAL INTEREST
OUTSTANDING (Note 2)................. 2,109,073 712,034 3,700,934
----------- ---------- -----------
----------- ---------- -----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (Net
assets divided by shares
outstanding)......................... $ 12.21 $ 12.28 $ 16.38
----------- ---------- -----------
----------- ---------- -----------
</TABLE>
See notes to financial statements
48
<PAGE>
This page intentionally left blank.
49
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT DISCOVERY
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest................................... $ 211,850 $ 181,470 $ 141,545
Dividends.................................. 1,287,617 -- 149,549
------------ --------- -----------
Total income................................. 1,499,467 181,470 291,094
------------ --------- -----------
Expenses (Notes 1 and 4):
Advisory fee............................... 818,672 27,059 414,090
Reports and notices to shareholders........ 6,000 400 3,000
Professional fees.......................... 9,360 3,556 10,304
Custodian fees............................. 18,199 3,113 15,517
Other expenses............................. 9,913 612 14,488
------------ --------- -----------
Total expenses............................... 862,144 34,740 457,399
Less: Expenses waived or assumed............. -- (9,413) --
Custodian fees paid indirectly.......... (9,612) (311) (9,505)
------------ --------- -----------
Expenses - net............................... 852,532 25,016 447,894
------------ --------- -----------
Net investment income (loss)................. 646,935 156,454 (156,800)
------------ --------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS (Note 3):
Net realized gain (loss) on investments and
foreign currency transactions.............. 14,033,898 -- 2,025,124
Net unrealized appreciation (depreciation) of
investments and foreign currency
transactions............................... 6,423,386 -- 4,190,571
------------ --------- -----------
Net gain (loss) from investments and foreign
currency transactions...................... 20,457,284 -- 6,215,695
------------ --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. $ 21,104,219 $ 156,454 $ 6,058,895
------------ --------- -----------
------------ --------- -----------
</TABLE>
(a) See note 1H
(b) Net of $79,193 foreign taxes withheld.
See notes to financial statements
50
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT
GOVERNMENT GROWTH HIGH YIELD SECURITIES GRADE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest................................... $ 356,479 $ 130,633 $ 3,295,536 $ 150,682 $ 718,307
Dividends.................................. -- 834,499 38,769(a) 898,185(b) --
----------- ------------ --------------- ------------- ------------
Total income................................. 356,479 965,132 3,334,305 1,048,867 718,307
----------- ------------ --------------- ------------- ------------
Expenses (Notes 1 and 4):
Advisory fee............................... 41,118 760,722 248,459 365,271 80,983
Reports and notices to shareholders........ 675 10,448 3,000 4,000 1,000
Professional fees.......................... 2,303 9,855 5,042 8,935 1,963
Custodian fees............................. 1,922 15,680 6,677 81,114 2,148
Other expenses............................. 2,204 20,204 4,657 10,174 2,902
----------- ------------ --------------- ------------- ------------
Total expenses............................... 48,222 816,909 267,835 469,494 88,996
Less: Expenses waived or assumed............. (8,223) -- -- -- (16,197)
Custodian fees paid indirectly.......... (1,705) (2,298) (1,244) -- (947)
----------- ------------ --------------- ------------- ------------
Expenses - net............................... 38,294 814,611 266,591 469,494 71,852
----------- ------------ --------------- ------------- ------------
Net investment income (loss)................. 318,185 150,521 3,067,714 579,373 646,455
----------- ------------ --------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS (Note 3):
Net realized gain (loss) on investments and
foreign currency transactions.............. (22,488) 5,211,386 (97,398) 6,138,055 (2,921)
Net unrealized appreciation (depreciation) of
investments and foreign currency
transactions............................... (251,458) 20,003,716 (1,481,017) 2,794,712 (1,213,376)
----------- ------------ --------------- ------------- ------------
Net gain (loss) from investments and foreign
currency transactions...................... (273,946) 25,215,102 (1,578,415) 8,932,767 (1,216,297)
----------- ------------ --------------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. $ 44,239 $ 25,365,623 $ 1,489,299 $ 9,512,140 $ (569,842)
----------- ------------ --------------- ------------- ------------
----------- ------------ --------------- ------------- ------------
</TABLE>
(a) See note 1H
(b) Net of $79,193 foreign taxes withheld.
See notes to financial statements
51
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
TARGET TARGET
MATURITY MATURITY UTILITIES
2007 2010 INCOME
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest................................... $ 771,018 $ 267,738 $ 42,683
Dividends.................................. -- -- 734,104
------------ ------------ -----------
Total income................................. 771,018 267,738 776,787
------------ ------------ -----------
Expenses (Notes 1 and 4):
Advisory fee............................... 97,608 33,891 203,382
Reports and notices to shareholders........ 900 400 1,000
Professional fees.......................... 3,286 2,062 5,032
Custodian fees............................. 1,824 857 6,590
Other expenses............................. 221 773 183
------------ ------------ -----------
Total expenses............................... 103,839 37,983 216,187
Less: Expenses waived or assumed............. (19,522) (6,778) (40,676)
Custodian fees paid indirectly.......... (1,784) (857) (6,590)
------------ ------------ -----------
Expenses - net............................... 82,533 30,348 168,921
------------ ------------ -----------
Net investment income........................ 688,485 237,390 607,866
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 3):
Net realized gain (loss) on investments...... (12,491) (46,062) 2,168,659
Net unrealized appreciation (depreciation) of
investments................................ (2,671,874) (996,038) 2,360,573
------------ ------------ -----------
Net gain (loss) from investments............. (2,684,365) (1,042,100) 4,529,232
------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. $ (1,995,880) $ (804,710) $ 5,137,098
------------ ------------ -----------
------------ ------------ -----------
</TABLE>
(a) See note 1H
(b) Net of $79,193 foreign taxes withheld.
See notes to financial statements
52
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
-------------------------- ------------------------
1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO
6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income...................... $ 646,935 $ 1,399,170 $ 156,454 $ 252,286
Net realized gain on investments........... 14,033,898 3,330,401 -- --
Net unrealized appreciation of
investments.............................. 6,423,386 25,976,750 -- --
------------ ------------ ----------- -----------
Net increase in net assets resulting from
operations............................. 21,104,219 30,706,321 156,454 252,286
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................... (1,406,535) (1,263,751) (156,454) (252,286)
Net realized gains......................... (3,358,300) (9,930,417) -- --
------------ ------------ ----------- -----------
Total distributions...................... (4,764,835) (11,194,168) (156,454) (252,286)
------------ ------------ ----------- -----------
TRUST SHARE TRANSACTIONS*
Proceeds from shares sold.................. 12,531,098 25,456,684 2,498,081 4,428,716
Reinvestment of distributions.............. 4,764,835 11,194,168 156,454 252,286
Cost of shares redeemed.................... (3,273,808) (5,036,856) (1,767,195) (2,524,501)
------------ ------------ ----------- -----------
Net increase from trust share
transactions............................. 14,022,125 31,613,996 887,340 2,156,501
------------ ------------ ----------- -----------
Net increase in net assets............... 30,361,509 51,126,149 887,340 2,156,501
NET ASSETS
Beginning of period........................ 205,252,020 154,125,871 6,916,391 4,759,890
------------ ------------ ----------- -----------
End of period+............................. $235,613,529 $205,252,020 $ 7,803,731 $ 6,916,391
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
+Includes undistributed net investment
income of................................ $ 639,770 $ 1,399,370 -- --
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
*TRUST SHARES ISSUED AND REDEEMED
Sold....................................... 465,429 1,058,051 2,498,081 4,428,716
Issued for distributions reinvested........ 186,272 477,160 156,454 252,286
Redeemed................................... (121,057) (216,433) (1,767,195) (2,524,501)
------------ ------------ ----------- -----------
Net increase in trust shares outstanding... 530,644 1,318,778 887,340 2,156,501
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
See notes to financial statements
53
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
DISCOVERY GOVERNMENT
-------------------------- ------------------------
1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO
6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)............... $ (156,800) $ 374,325 $ 318,185 $ 659,776
Net realized gain (loss) on investments and
foreign currency transactions............ 2,025,124 220,000 (22,488) 100,859
Net unrealized appreciation (depreciation)
of investments and foreign currency
transactions............................. 4,190,571 2,686,924 (251,458) (39,867)
------------ ------------ ----------- -----------
Net increase in net assets resulting from
operations............................. 6,058,895 3,281,249 44,239 720,768
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................... (377,623) (282,385) (630,931) (591,713)
Net realized gains......................... (437,699) (6,711,235) -- --
------------ ------------ ----------- -----------
Total distributions...................... (815,322) (6,993,620) (630,931) (591,713)
------------ ------------ ----------- -----------
TRUST SHARE TRANSACTIONS*
Proceeds from shares sold.................. 3,852,678 14,683,013 718,822 2,561,318
Reinvestment of distributions.............. 815,322 6,993,620 630,931 591,713
Cost of shares redeemed.................... (3,982,532) (3,666,264) (831,547) (1,410,754)
------------ ------------ ----------- -----------
Net increase from trust share
transactions............................. 685,468 18,010,369 518,206 1,742,277
------------ ------------ ----------- -----------
Net increase (decrease) in net assets.... 5,929,041 14,297,998 (68,486) 1,871,332
NET ASSETS
Beginning of period........................ 113,827,927 99,529,929 10,991,065 9,119,733
------------ ------------ ----------- -----------
End of period+............................. $119,756,968 $113,827,927 $10,922,579 $10,991,065
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
+Includes accumulated net investment income
(loss) of................................ $ (162,582) $ 371,841 $ 318,012 $ 630,758
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
*TRUST SHARES ISSUED AND REDEEMED
Sold....................................... 150,123 565,739 71,450 251,092
Issued for distributions reinvested........ 32,810 257,308 64,184 60,564
Redeemed................................... (156,570) (149,789) (82,885) (138,579)
------------ ------------ ----------- -----------
Net increase in trust shares outstanding... 26,363 673,258 52,749 173,077
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
See notes to financial statements
54
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES
GROWTH HIGH YIELD
-------------------------- ------------------------ -------------------------
1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO
6/30/99 12/31/98 6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------------- ------------ ------------ ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)............... $ 150,521 $ 518,164 $ 3,067,714 $ 5,672,755 $ 579,373 $ 627,757
Net realized gain (loss) on investments and
foreign currency transactions............ 5,211,386 8,688,575 (97,398) 611,559 6,138,055 111,518
Net unrealized appreciation (depreciation)
of investments and foreign currency
transactions............................. 20,003,716 28,691,762 (1,481,017) (4,441,350) 2,794,712 12,766,600
------------ ------------ ----------- ----------- ------------ -----------
Net increase in net assets resulting from
operations............................. 25,365,623 37,898,501 1,489,299 1,842,964 9,512,140 13,505,875
------------ ------------ ----------- ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................... (525,165) (654,070) (5,671,418) (4,824,396) (586,561) (705,531)
Net realized gains......................... (8,683,787) (4,932,402) (88,703) -- (151,528) (3,773,054)
------------ ------------ ----------- ----------- ------------ -----------
Total distributions...................... (9,208,952) (5,586,472) (5,760,121) (4,824,396) (738,089) (4,478,585)
------------ ------------ ----------- ----------- ------------ -----------
TRUST SHARE TRANSACTIONS*
Proceeds from shares sold.................. 14,349,961 24,961,026 2,835,869 7,629,469 3,954,787 9,229,799
Reinvestment of distributions.............. 9,208,952 5,586,472 5,760,121 4,824,396 738,089 4,478,585
Cost of shares redeemed.................... (1,984,457) (3,540,336) (3,205,229) (3,745,407) (2,632,578) (5,018,471)
------------ ------------ ----------- ----------- ------------ -----------
Net increase from trust share
transactions............................. 21,574,456 27,007,162 5,390,761 8,708,458 2,060,298 8,689,913
------------ ------------ ----------- ----------- ------------ -----------
Net increase (decrease) in net assets.... 37,731,127 59,319,191 1,119,939 5,727,026 10,834,349 17,717,203
NET ASSETS
Beginning of period........................ 186,903,741 127,584,550 65,345,821 59,618,795 92,179,891 74,462,688
------------ ------------ ----------- ----------- ------------ -----------
End of period+............................. $224,634,868 $186,903,741 $66,465,760 $65,345,821 $103,014,240 $92,179,891
------------ ------------ ----------- ----------- ------------ -----------
------------ ------------ ----------- ----------- ------------ -----------
+Includes accumulated net investment income
(loss) of................................ $ 140,383 $ 515,027 $ 3,066,416 $ 5,670,120 $ 580,752 $ 587,940
------------ ------------ ----------- ----------- ------------ -----------
------------ ------------ ----------- ----------- ------------ -----------
*TRUST SHARES ISSUED AND REDEEMED
Sold....................................... 394,852 794,414 255,503 645,767 199,320 512,858
Issued for distributions reinvested........ 269,899 182,445 539,842 414,467 39,576 256,212
Redeemed................................... (54,272) (116,212) (284,673) (320,790) (133,639) (289,842)
------------ ------------ ----------- ----------- ------------ -----------
Net increase in trust shares outstanding... 610,479 860,647 510,672 739,444 105,257 479,228
------------ ------------ ----------- ----------- ------------ -----------
------------ ------------ ----------- ----------- ------------ -----------
</TABLE>
See notes to financial statements
55
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
TARGET
INVESTMENT GRADE MATURITY 2007
------------------------ ------------------------
1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO
6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income...................... $ 646,455 $ 1,146,513 $ 688,485 $ 1,196,662
Net realized gain (loss) on investments.... (2,921) 126,011 (12,491) 6,102
Net unrealized appreciation (depreciation)
of investments........................... (1,213,376) 390,278 (2,671,874) 2,018,771
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............. (569,842) 1,662,802 (1,995,880) 3,221,535
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................... (1,261,195) (1,073,498) (1,196,679) (996,667)
Net realized gains......................... (9,047) -- -- --
----------- ----------- ----------- -----------
Total distributions...................... (1,270,242) (1,073,498) (1,196,679) (996,667)
----------- ----------- ----------- -----------
TRUST SHARE TRANSACTIONS*
Proceeds from shares sold.................. 1,423,246 4,619,860 2,042,291 5,123,567
Reinvestment of distributions.............. 1,270,242 1,073,498 1,196,679 996,667
Cost of shares redeemed.................... (928,295) (1,993,575) (776,293) (2,172,225)
----------- ----------- ----------- -----------
Net increase from trust share
transactions............................. 1,765,193 3,699,783 2,462,677 3,948,009
----------- ----------- ----------- -----------
Net increase (decrease) in net assets.... (74,891) 4,289,087 (729,882) 6,172,877
NET ASSETS
Beginning of period........................ 21,508,604 17,219,517 26,472,593 20,299,716
----------- ----------- ----------- -----------
End of period+............................. $21,433,713 $21,508,604 $25,742,711 $26,472,593
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
+Includes undistributed net investment
income of................................ $ 531,543 $ 1,146,283 $ 688,325 $ 1,196,519
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
*TRUST SHARES ISSUED AND REDEEMED
Sold....................................... 125,295 396,824 159,887 392,375
Issued for distributions reinvested........ 114,954 96,974 96,273 82,165
Redeemed................................... (81,171) (172,079) (61,178) (167,391)
----------- ----------- ----------- -----------
Net increase in trust shares outstanding... 159,078 321,719 194,982 307,149
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements
56
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
TARGET
MATURITY 2010 UTILITIES INCOME
---------------------- ------------------------
1/1/99 TO 1/1/98 TO 1/1/99 TO 1/1/98 TO
6/30/99 12/31/98 6/30/99 12/31/98
- --------------------------------------------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income...................... $ 237,390 $ 350,859 $ 607,866 $ 1,070,493
Net realized gain (loss) on investments.... (46,062) -- 2,168,659 1,605,884
Net unrealized appreciation (depreciation)
of investments........................... (996,038) 611,313 2,360,573 2,566,807
---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............. (804,710) 962,172 5,137,098 5,243,184
---------- ---------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................... (351,025) (209,527) (1,089,080) (847,985)
Net realized gains......................... -- (3,786) (1,669,489) (1,305,515)
---------- ---------- ----------- -----------
Total distributions...................... (351,025) (213,313) (2,758,569) (2,153,500)
---------- ---------- ----------- -----------
TRUST SHARE TRANSACTIONS*
Proceeds from shares sold.................. 1,186,712 3,140,304 5,875,626 12,377,174
Reinvestment of distributions.............. 351,025 213,313 2,758,569 2,153,500
Cost of shares redeemed.................... (666,876) (280,737) (819,682) (1,165,173)
---------- ---------- ----------- -----------
Net increase from trust share
transactions............................. 870,861 3,072,880 7,814,513 13,365,501
---------- ---------- ----------- -----------
Net increase (decrease) in net assets.... (284,874) 3,821,739 10,193,042 16,455,185
NET ASSETS
Beginning of period........................ 9,030,399 5,208,660 50,431,749 33,976,564
---------- ---------- ----------- -----------
End of period+............................. $8,745,525 $9,030,399 $60,624,791 $50,431,749
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
+Includes undistributed net investment
income of................................ $ 236,767 $ 350,402 $ 588,424 $ 1,069,638
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
*TRUST SHARES ISSUED AND REDEEMED
Sold....................................... 90,379 239,826 376,332 841,969
Issued for distributions reinvested........ 27,925 17,385 192,503 151,335
Redeemed................................... (52,559) (21,133) (53,286) (79,873)
---------- ---------- ----------- -----------
Net increase in trust shares outstanding... 65,745 236,078 515,549 913,431
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
</TABLE>
See notes to financial statements
57
<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 its assets, liabilities and operations. 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 security and liquidity of principal.
GROWTH FUND seeks long-term capital appreciation.
HIGH YIELD FUND seeks to earn high current income and secondarily seeks capital
appreciation.
INTERNATIONAL SECURITIES FUND primarily seeks long-term capital growth and
secondarily a reasonable level of current income.
INVESTMENT GRADE FUND seeks to generate 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 and secondarily long-
term capital appreciation.
A. Security Valuation--Except as provided below 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 ("OTC") market (including
securities listed on exchanges whose primary market is believed to be OTC) are
valued at the mean between the last bid and asked prices prior to the time when
assets are
58
<PAGE>
valued based upon quotes furnished by a market maker for such securities.
Securities may also be priced by a pricing service. The pricing service uses
quotations obtained from investment dealers or brokers, information with respect
to market transactions in comparable securities and other available information
in determining value. Short-term debt securities that mature in 60 days or less
are valued at amortized cost. Securities for which market quotations are not
readily available and 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. For valuation purposes, where applicable, quotations of
foreign securities in foreign currencies are translated to U.S. dollar
equivalents using the foreign exchange quotation in effect.
The Cash Management Fund values its portfolio securities in accordance with the
amortized cost method of valuation under Rule 2a-7 under the 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
regulated investment companies, and to make sufficient distributions of income
and capital gains (in excess of any available capital loss carryovers), to
relieve each Fund from all, or substantially all, federal income taxes. At
December 31, 1998, capital loss carryovers were as follows:
<TABLE>
<CAPTION>
Year Capital Loss
Carryovers Expire
----------------------------
<S> <C> <C> <C>
Fund Total 2002 2004
- --------------------------------------- -------- -------- --------
Government............................. $492,125 $264,105 $228,020
Target Maturity 2007................... 82,126 -- 82,126
</TABLE>
C. Foreign Currency Translations--The accounting records of International
Securities Fund are maintained in U.S. dollars. 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.
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
FIRST INVESTORS LIFE SERIES FUND
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 gains and losses on foreign currency transactions
includes gains and losses from the sales of foreign currency 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
the total of net investment income (plus or minus all realized short term gains
and losses on investments) daily and pays monthly. Dividends from net investment
income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, capital loss carryforwards and deferral of wash sales.
E. Expense Allocation--Expenses directly charged or attributable to a Fund are
paid from the assets of that Fund. General expenses of the Life Series Fund are
allocated among and charged to the assets of each Fund on a fair and equitable
basis, which may be based on the relative assets of each Fund or the nature of
the services performed and relative applicability to each Fund.
F. Repurchase Agreements--Securities pledged as collateral for repurchase
agreements are held by the Fund's custodian until maturity of the repurchase
agreement. The agreements provide that the Fund will receive, as collateral,
securities with a market value which will at all times be at least equal to 100%
of the amount invested by the Fund.
G. Use of Estimates--The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
H. Other--Security transactions are accounted for on the date the securities are
purchased or sold. Cost is determined and gains and losses are based, on the
identified cost basis for securities and the amortized cost basis for short-term
securities, for both financial statement and federal income tax purposes.
Dividend income is recorded on the ex-dividend date. Shares of stock received in
lieu of cash dividends on certain preferred stock holdings of the High Yield
Fund are recognized as dividend income and recorded at the market value of the
shares
60
<PAGE>
received. For the six months ended June 30, 1999, the High Yield Fund recognized
$17,500 from these taxable "pay-in-kind" distributions. Interest income and
estimated expenses are accrued daily. For the six months ended June 30, 1999,
The Bank of New York, custodian for all the Funds, except the International
Securities Fund, has provided credits in the amount of $34,853 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, 1999, 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.............................. $113,962,310 $105,574,776 $ -- $ --
Discovery.............................. 68,070,603 70,167,898 -- --
Government............................. -- -- 2,722,562 2,517,679
Growth................................. 37,018,781 27,058,732 -- --
High Yield............................. 14,367,189 10,986,034 -- --
International Securities............... 59,203,252 58,015,497 -- --
Investment Grade....................... 3,782,076 3,031,444 -- --
Target Maturity 2007................... -- -- 1,163,146 185,310
Target Maturity 2010................... -- -- 676,805 399,497
Utilities Income....................... 22,708,748 17,578,549 -- --
</TABLE>
At June 30, 1999, aggregate cost and net unrealized appreciation (depreciation)
of securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Aggregate Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
- --------------------------------------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Blue Chip.............................. $160,360,287 $ 74,464,050 $ 1,194,661 $ 73,269,389
Cash Management........................ 7,869,817 -- -- --
Discovery.............................. 97,675,928 27,173,430 3,940,368 23,233,062
Government............................. 10,804,406 12,886 159,561 (146,675)
</TABLE>
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Aggregate Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
- --------------------------------------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Growth................................. $138,552,321 $ 86,440,852 $ 1,956,052 $ 84,484,800
High Yield............................. 67,580,655 577,421 3,196,936 (2,619,515)
International Securities............... 79,779,821 25,395,065 1,430,862 23,964,203
Investment Grade....................... 21,394,773 146,717 516,719 (370,002)
Target Maturity 2007................... 25,033,645 776,414 110,943 665,471
Target Maturity 2010................... 8,594,178 219,177 97,610 121,567
Utilities Income....................... 48,191,015 12,630,281 572,101 12,058,180
</TABLE>
4. 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, 1999, total
trustees fees accrued by the Funds amounted to $23,699.
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, 1999, total advisory fees accrued to FIMCO were
$3,091,255 of which $96,808 was waived by the investment adviser. In addition,
$4,001 of expenses were assumed by FIMCO.
Wellington Management company, serves as investment subadviser to the Growth
Fund and the International Securities Fund. The subadviser is paid by FIMCO and
not by the Funds.
5. RULE 144A SECURITIES--Under Rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and may
only be resold to qualified institutional investors. At June 30, 1999, the High
Yield Fund held fourteen 144A securities with an aggregate value of $7,774,165.
The securities represent approximately 11.7% of the Fund's net assets and are
valued as set forth in Note 1A.
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 the settlement date of such transactions. The
International Securities Fund could be exposed to risk if counter-parties to the
62
<PAGE>
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, 1999.
<TABLE>
<CAPTION>
Contracts to Buy Settlement Unrealized
Foreign Currency In Exchange for Date Loss
<C> <S> <C> <C> <C> <C> <C>
- ---------------------------- -------------------------- ---------- ----------------------
27,373 British Pounds U.S. $ 43,472 7/1/99 U.S. $ (324)
158,190 British Pounds 251,491 7/2/99 (2,135)
209,629 Euro 216,853 7/2/99 (662)
5,702,537 Japanese Yen 47,144 7/5/99 (31)
Australian
222,835 Dollars 147,517 7/5/99 (22)
60,427 Euro 62,517 7/5/99 (199)
41,191 British Pounds 64,937 7/6/99 (8)
2,896,911 Euro 2,993,407 7/6/99 (5,823)
--------------- -----------
$ 3,827,338 $ (9,204)
--------------- -----------
--------------- -----------
<CAPTION>
Contracts to Sell Settlement Unrealized Gain (Loss)
Foreign Currency In Exchange for Date
<C> <S> <C> <C> <C> <C> <C>
- ---------------------------- -------------------------- ---------- ----------------------
895,309 Canadian Dollars U.S. $ 605,798 7/5/99 U.S. $ 900
29,621 British Pounds 46,933 7/5/99 242
198,590 Euro 205,456 7/5/99 650
162,343 British Pounds 255,861 7/7/99 (41)
230,162 Euro 238,932 7/30/99 1,566
--------------- -----------
$ 1,352,980 $ 3,317
--------------- -----------
---------------
Net Unrealized Loss on Forward Currency Contracts $ (5,887)
-----------
-----------
</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.
63
<PAGE>
FINANCIAL HIGHLIGHTS
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for a
trust share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
NET ASSET ---------------------------------------------------- LESS DISTRIBUTIONS FROM
VALUE NET REALIZED -----------------------
--------- NET AND UNREALIZED TOTAL FROM NET NET
BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
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
1998........... 23.71 .17 4.05 4.22 .19 1.49 1.68
1999**......... 26.25 .08 2.50 2.58 .18 .43 .61
- ---------------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
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
1998........... 1.00 .049 -- .049 .049 -- .049
1999**......... 1.00 .022 -- .022 .022 -- .022
- ---------------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
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
1998........... 27.77 .09 .79 .88 .08 1.83 1.91
1999**......... 26.74 (.04) 1.45 1.41 .09 .10 .19
- ---------------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
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
1998........... 10.33 .66*** .08*** .74*** .66 -- .66
1999**......... 10.41 .28 (.25) .03 .59 -- .59
- ---------------------------------------------------------------------------------------------------------------------------
GROWTH FUND
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
1998........... 29.24 .10 7.69 7.79 .15 1.10 1.25
1999**......... 35.78 .02 4.44 4.46 .10 1.64 1.74
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
64
<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 ASSETS BEFORE EXPENSES
NET NET ASSETS+ WAIVED OR 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 (%) MILLIONS) (%) (%) (%) (%) (%)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
1994........... $ 13.75 (1.45) $ 41 .88 1.49 N/A N/A 82
1995........... 16.98 34.00 67 .86 1.91 N/A N/A 26
1996........... 19.77 21.52 100 .84 1.39 N/A N/A 45
1997........... 23.71 26.72 154 .81 .99 N/A N/A 63
1998........... 26.25 18.66 205 .82 .79 N/A N/A 91
1999**......... 28.22 10.04 236 .79(a) .59(a) N/A N/A 51
- -------------------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
1994........... $ 1.00 3.77 $ 4 .60 3.69 1.04 3.25 N/A
1995........... 1.00 5.51 4 .60 5.36 1.10 4.86 N/A
1996........... 1.00 5.00 4 .60 4.89 1.11 4.38 N/A
1997........... 1.00 5.08 5 .70 4.97 1.06 4.61 N/A
1998........... 1.00 5.02 7 .70 4.89 .99 4.60 N/A
1999**......... 1.00 2.19 8 .70(a) 4.34(a) .96(a) 4.08(a) N/A
- -------------------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
1994........... $ 19.86 (2.53) $ 30 .88 .36 N/A N/A 53
1995........... 23.27 25.23 51 .87 .63 N/A N/A 78
1996........... 25.06 12.48 71 .85 .63 N/A N/A 98
1997........... 27.77 16.84 100 .82 .34 N/A N/A 85
1998........... 26.74 3.05 114 .83 .36 N/A N/A 121
1999**......... 27.96 5.36 120 .83(a) (.28)(a) N/A N/A 64
- -------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
1994........... $ 9.70 (4.10) $ 8 .35 6.74 .90 6.19 457
1995........... 10.52 15.63 10 .40 6.79 .93 6.26 198
1996........... 10.19 3.59 9 .60 6.75 .94 6.41 199
1997........... 10.33 8.61 9 .60 6.95 .92 6.63 134
1998........... 10.41 7.54 11 .70 6.59 .87 6.42 107
1999**......... 9.85 .34 11 .73(a) 5.81(a) .84(a) 5.70(a) 24
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND
1994........... $ 16.73 (2.87) $ 33 .90 .60 N/A N/A 40
1995........... 20.47 25.12 51 .88 1.11 N/A N/A 64
1996........... 24.56 24.45 79 .85 .92 N/A N/A 49
1997........... 29.24 29.28 128 .82 .64 N/A N/A 27
1998........... 35.78 27.35 187 .82 .34 N/A N/A 26
1999**......... 38.50 13.08 225 .80(a) .15(a) N/A N/A 14
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
65
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
NET ASSET ---------------------------------------------------- LESS DISTRIBUTIONS FROM
VALUE NET REALIZED -----------------------
--------- NET AND UNREALIZED TOTAL FROM NET NET
BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
HIGH YIELD FUND
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
1998........... 12.30 1.00 (.62) .38 .98 -- .98
1999**......... 11.70 .51 (.27) .24 1.02 .02 1.04
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
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
1998........... 16.91 .12 2.87 2.99 .16 .86 1.02
1999**......... 18.88 .12 1.81 1.93 .12 .03 .15
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
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
1998........... 11.67 .68*** .33*** 1.01*** .71 -- .71
1999**......... 11.97 .33 (.63) (.30) .70 .01 .71
- ---------------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
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
1998........... 12.63 .61 1.20 1.81 .61 -- .61
1999**......... 13.83 .32 (1.32) (1.00) .62 -- .62
- ---------------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
4/30/96* to
12/31/96..... $ 10.00 $ .26 $ .90 $ 1.16 $ -- $ -- $ --
1997........... 11.16 .45 1.29 1.74 .20 -- .20
1998........... 12.70 .51 1.25 1.76 .48 .01 .49
1999**......... 13.97 .30 (1.48) (1.18) .51 -- .51
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
66
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------
--------
RATIO TO AVERAGE NET
NET RATIO TO AVERAGE ASSETS BEFORE EXPENSES
ASSET NET NET ASSETS+ WAIVED OR ASSUMED
VALUE ASSETS -------------------------- ---------------------------
-------- TOTAL END OF NET NET PORTFOLIO
END RETURN PERIOD INVESTMENT INVESTMENT TURNOVER
OF ++ (IN EXPENSES INCOME EXPENSES INCOME RATE
PERIOD (%) MILLIONS) (%) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HIGH YIELD FUND
1994........... $ 10.58 (1.56) $ 32 .88 9.43 N/A N/A 50
1995........... 11.57 19.82 42 .87 9.86 N/A N/A 57
1996........... 11.93 12.56 49 .85 9.43 N/A N/A 34
1997........... 12.30 12.47 60 .83 8.88 N/A N/A 40
1998........... 11.70 3.15 65 .83 8.93 N/A N/A 42
1999**......... 10.90 2.23 66 .81(a) 9.27(a) N/A N/A 18
- ---------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
1994........... $ 13.51 (1.29) $ 31 1.03 1.22 N/A N/A 36
1995........... 15.58 18.70 41 1.02 1.42 N/A N/A 45
1996........... 17.19 15.23 58 1.12 1.25 N/A N/A 67
1997........... 16.91 9.09 74 1.13 1.15 N/A N/A 71
1998........... 18.88 18.18 92 1.15 .75 N/A N/A 109
1999**......... 20.66 10.31 103 .96(a) 1.19(a) N/A N/A 62
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
1994........... $ 10.31 (3.53) $ 12 .37 6.61 .92 6.06 15
1995........... 11.73 19.69 16 .51 6.80 .91 6.40 26
1996........... 11.36 2.84 16 .60 6.47 .88 6.19 19
1997........... 11.67 9.81 17 .60 6.54 .87 6.27 41
1998........... 11.97 9.15 22 .68 5.97 .84 5.81 60
1999**......... 10.96 (2.62) 21 .67(a) 5.98(a) .80(a) 5.85(a) 15
- ---------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
4/26/95* to
12/31/95..... $ 12.26 22.60 $ 10 .04(a) 6.25(a) .87(a) 5.42(a) 28
1996........... 11.71 (2.16) 15 .60 6.05 .82 5.83 13
1997........... 12.63 13.38 20 .60 5.91 .82 5.69 1
1998........... 13.83 14.97 26 .67 5.18 .83 5.02 1
1999**......... 12.21 (7.34) 26 .65(a) 5.29(a) .78(a) 5.16(a) 1
- ---------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
4/30/96* to
12/31/96..... $ 11.16 11.60 $ 2 .60(a) 6.05(a) .98(a) 5.67(a) 0
1997........... 12.70 15.86 5 .60 5.88 .87 5.61 13
1998........... 13.97 14.36 9 .67 4.90 .82 4.75 0
1999**......... 12.28 (8.52) 9 .69(a) 5.24(a) .82(a) 5.11(a) 4
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
67
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
-----------------------------------------
NET REALIZED
NET ASSET AND LESS DISTRIBUTIONS 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>
UTILITIES INCOME FUND
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
1998........... 14.95 .32 1.46 1.78 .35 .55 .90
1999**......... 15.83 .16 1.23 1.39 .33 .51 .84
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized
* Commencement of operations
** For the period January 1, 1999 to June 30, 1999
*** Based on average shares outstanding during the year
+Some or all expenses have been waived or assumed by the investment adviser from
commencement of operations through June 30, 1999 (Note 4)
++The effect of fees and charges incurred at the separate account level are not
reflected in these performance figures
See notes to financial statements
68
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET
RATIO TO AVERAGE ASSETS BEFORE EXPENSES
NET NET ASSETS+ WAIVED OR 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 (%) MILLIONS) (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
UTILITIES INCOME FUND
1994........... $ 9.19 (7.24) $ 5 .17 4.13 .95 3.35 31
1995........... 11.74 30.26 15 .41 4.23 .91 3.73 17
1996........... 12.57 9.57 24 .60 3.48 .86 3.22 45
1997........... 14.95 25.07 34 .67 3.12 .85 2.94 64
1998........... 15.83 12.58 50 .73 2.61 .85 2.49 105
1999**......... 16.38 9.58 61 .62(a) 2.27(a) .74(a) 2.15(a) 34
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized
* Commencement of operations
** For the period January 1, 1999 to June 30, 1999
*** Based on average shares outstanding during the year
+Some or all expenses have been waived or assumed by the investment adviser from
commencement of operations through June 30, 1999 (Note 4)
++The effect of fees and charges incurred at the separate account level are not
reflected in these performance figures
See notes to financial statements
69
<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, 1999, 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, 1999 and the year ended December 31, 1998 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, 1999 by correspondence with the custodian and brokers. Where brokers have
not replied to our confirmation requests, we have carried out other appropriate
auditing procedures. 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,
1999, 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 30, 1999
70
<PAGE>
FIRST INVESTORS LIFE SERIES FUND
TRUSTEES
- -------------------------------
JAMES J. COY (Emeritus)
GLENN O. HEAD
KATHRYN S. HEAD
LARRY R. LAVOIE
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
71
<PAGE>
FIRST INVESTORS LIFE SERIES FUND
SHAREHOLDER INFORMATION
- ---------------------------------------
INVESTMENT ADVISER
FIRST INVESTORS MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
SUBADVISER (Growth Fund and International Securities Fund Only)
WELLINGTON MANAGEMENT COMPANY, 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
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.
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.
72
<PAGE>
[logo] First Investors
95 WALL STREET
NEW YORK, NEW YORK 10005
LIFE310
