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BLUE CHIP
CASH MANAGEMENT
DISCOVERY
FOCUSED EQUITY
GOVERNMENT
GROWTH
HIGH YIELD
INTERNATIONAL SECURITIES
INVESTMENT GRADE
TARGET MATURITY 2007
TARGET MATURITY 2010
TARGET MATURITY 2015
UTILITIES INCOME
SEMIANNUAL REPORT
June 30, 2000
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 Fund for the six-month period
ended June 30, 2000.*
The Economy
The U.S. economy, now in its tenth year of expansion, continued its
solid performance during the period, with the gross domestic product
(GDP) growing by 5.0% on an annualized basis. The unemployment rate fell
to 4.0% in June, near a 30-year low. Consumer confidence remained high
as personal income continued to grow. Durable goods orders (for
airplanes, computers, etc.) and industrial production continued to rise.
The rate of inflation began to trend slightly higher, although remaining
benign by historical standards. The consumer price index, a broad
inflation gauge, increased 3.7% during the 12 months ending June 2000,
but only 2.4% excluding the volatile food and energy components. The
primary inflation story was the approximately 45% increase in the price
of oil during the first six months of the year. In the labor market, the
inflationary impact of rising wages was largely offset by the continued
improvement in productivity that has characterized much of the current
economic expansion.
Against this backdrop, the Federal Reserve ("the Fed") continued to
tighten monetary policy based upon its concerns about the pace of
economic growth (fourth quarter 1999 and first quarter 2000 growth
exceeded 6.5%) and the tight labor market. In all, the Fed raised
short-term interest rates three times during the review period,
accounting for a total of 100 basis points (1%).
The Equity Market
The first three months of 2000 were very bumpy for equity investors.
Encouraged by the smooth transition into the new century, investors
flooded the market with cash that had been hoarded in anticipation of
Y2K computer difficulties. The market surged in early January, before
quickly coming back down to earth and ending the month with its worst
January performance since 1990. The market continued to gyrate up and
down for much of the first quarter of 2000, and ultimately posted a
positive return of 2.3% for the quarter, as measured by the Standard &
Poor's 500 Index. Investors continued to chase after technology stocks,
and the Nasdaq market again had strong returns, posting a 12.4% gain. As
remarkable as the first quarter volatility was, it seems merely to have
been a precursor of the three month roller coaster ride that took place
in the second quarter of 2000.
Market Overview (continued)
FIRST INVESTORS LIFE SERIES FUND
Macro-economic concerns, such as inflation and rising interest rates,
weighed heavily on the market during the second quarter. Amid the
volatility, investors initially gravitated toward safety, moving into
pharmaceutical, utilities, consumer and food stocks. Technology and
retail stocks, however, were shunned and did not fare as well. The
Nasdaq was particularly hard hit early in the second quarter. By May
20th, the Nasdaq Composite Index had fallen 37% from its March 10th high
of 5,048. It then reversed course and posted one of its best months ever
in June, gaining 16%. These short-term ups-and-downs resulted in a 13%
drop for the second quarter and a 2.5% decline for the first half of
2000. However, from a longer term viewpoint, the Nasdaq was up a very
strong 48% over the past 52 weeks. The broader Standard & Poor's 500
Index did not suffer the severe swings of the technology heavy Nasdaq,
but it did drop from its closing high of 1,527.46 on March 24, 2000 to
1,356.56 on April 14, 2000, a fall of 11%. The Index finished the
quarter off 3% and down 1% for the first half of 2000. Despite this
extreme volatility, the first-half of the year ended with the equity
market on an upswing, posting a strong performance in June as technology
stocks picked up some momentum.
The Bond Market
The economy's continued good health and the Fed's attempts to cool the
economy produced mixed results for the bond market during the first half
of the year. Short-term interest rates rose with two-year Treasury note
yields increasing from 6.21% at year-end to 6.36% on June 30. The
increase in rates was primarily attributable to the Fed's ongoing
tightening of the money supply. Conversely, long-term interest rates
fell slightly after reaching their highest level since 1997 in January.
The ten-year Treasury note yield dropped from 6.44% at year-end 1999 to
6.03% as of June 30. This rate decline occurred despite the solid
economy and the Fed's actions largely because of the U.S. budget
surplus. Driven by the strong economy of recent years, tax collections
have increased, producing a budget surplus estimated at $211 billion for
2000 and $1.3 trillion over the next ten years. The Federal government's
good fortune has helped shrink the supply of U.S. Treasury debt.
Issuance of new Treasury securities has slowed and the Treasury has
begun buying back debt in the open market. If the economy continues to
steam ahead, some optimistic analysts have predicted that all public
debt (U.S. Treasury and municipal bonds) could be eliminated by 2012.
The decrease in Treasury debt helped trigger an unusual occurrence in
the bond market. Normally, interest rates on bonds with longer
maturities are higher than interest rates on bonds with shorter
maturities due to the former's greater interest rate risk. However, in
recent months, the interest rates on longer maturity Treasury bonds have
fallen below those of shorter maturities, causing the yield curve to
invert. While the Fed has raised short-term rates, long-term Treasury
rates have fallen due to the scarcity of high-quality bonds. However,
the decline in long-term interest rates has been limited to public debt.
In the private debt markets (corporate bonds, mortgage-backed bonds,
etc.), long-term yields have remained high, reflecting the strong
economy and inflation concerns.
Among the different sectors of the bond market, Treasury securities
(particularly long-term debt) provided the highest returns during the
first six months. The municipal bond sector was the second best
performing sector, with new issuance down 22% versus the same period of
1999, as the strong economy helped decrease the need for municipalities
to issue debt. In the mortgage-backed bond sector, investors also
benefited from a decline in issuance as well as an excellent prepayment
environment, as refinancings declined but home sales remained high. In
the investment grade corporate bond sector, the active Fed, "event risk"
(mergers and other actions taken by companies to improve their stock
price), the inverted yield curve, and heavy supply (June was the
heaviest month in the history of corporate bond issuance) converged to
produce disappointing results. However, higher-rated issues fared better
than lower-rated credits. The high yield bond segment posted the weakest
returns in the bond market due to the factors which adversely affected
the investment grade corporate bond market, plus rising default rates
and lack of investor demand due to better returns in other asset
classes.
Looking Ahead
Going forward, the Fed may raise interest rates once or twice more in an
effort to slow the economy's momentum. The Fed took no action at its
meeting at the end of June, but maintained a bias to raise rates. For
the equity market, we remain optimistic that solid economic fundamentals
and healthy corporate profits may produce positive returns for the
second half of 2000. In the bond market, it appears that long-term rates
most likely peaked in January. Rates may move somewhat higher from
current levels until the Fed concludes its rate increases. The
conclusion of Fed tightening, coupled with a slowing economy, could
create a catalyst for a bond market rally by the end of the year.
Because it is impossible to predict the future direction of the markets,
even over the short term, there are certain basic investment principles
that we encourage our clients to follow to reduce exposure to risk.**
First, we encourage clients to take a long-term view, and to avoid
trying to time the market. Attempting to time the market is extremely
difficult, even for professional investors. Second, we encourage our
Market Overview (continued)
FIRST INVESTORS LIFE SERIES FUND
clients to diversify their portfolios among stock, bond and money market
portfolios. Third, we encourage our shareholders to follow a regular
investment plan, investing a specific amount of money at defined
intervals. This strategy is known as "dollar cost averaging." It may
help you to avoid getting caught up in the excitement of a rising market
and will reduce the risk of buying at high points.
Of course, no financial plan or program, no matter how well-designed, is
guaranteed to be successful. In addition, nothing eliminates the risk
associated with overall market trends. However, utilizing these various
strategies may help to minimize the risk by reducing the extent to which
an investor may be affected by a decline in any one security or segment
of the market. If you use dollar cost averaging, you should consider
your ability to continue purchases through periods of declining prices.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ PATRICIA D. POITRA
Patricia D. Poitra
Director of Equities
First Investors Management Company, Inc.
/S/ CLARK D. WAGNER
Clark D. Wagner
Chief Investment Officer
First Investors Management Company, Inc.
July 31, 2000
* The Funds are only available through the purchase of variable life
insurance policies and variable annuity contracts issued by First
Investors Life Insurance Company. The reports do not reflect the
additional expenses and charges that are applicable to variable life
insurance policies and variable annuity contracts.
** There are a variety of risks associated with investing in all
variable life and annuity subaccounts. For the stock subaccounts,
the risks include market risk (the risk that the entire stock market
will decline because of an event such as a deterioration in the
economy or a rise in interest rates), as well as special risks
associated with investing in certain types of stock subaccounts,
such as small-cap, global and international subaccounts. For the
bond subaccounts, the risks include interest rate risk and credit
risk. Interest rate risk is the risk that bonds will decrease in
value as interest rates rise. As a general matter, longer-term bonds
fluctuate more than shorter-term bonds in reaction to changes in
interest rates. Credit risk is the risk that bonds will decline in
value as the result of a decline in the credit rating of the bonds
or the economy as a whole. You should consult your prospectus for a
precise explanation of the risks associated with your subaccounts.
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--96.9%
Basic Materials--2.1%
60,200 Air Products & Chemicals, Inc. $ 1,854,913 $ 64
62,200 Alcoa, Inc. 1,803,800 62
24,800 Du Pont (E.I.) de Nemours & Company 1,085,000 37
35,300 Praxair, Inc. 1,321,544 45
--------------------------------------------------------------------------------------------------------
6,065,257 208
--------------------------------------------------------------------------------------------------------
Capital Goods--5.5%
204,000 General Electric Company 10,812,000 371
52,500 * Lear Corporation 1,050,000 36
51,400 Tyco International, Ltd. 2,435,075 84
29,500 United Technologies Corporation 1,736,813 60
--------------------------------------------------------------------------------------------------------
16,033,888 551
--------------------------------------------------------------------------------------------------------
Communication Services--5.4%
93,800 Bell Atlantic Corporation 4,766,212 164
31,400 GTE Corporation 1,954,650 67
56,400 * Qwest Communications International, Inc. 2,802,375 96
135,400 * WorldCom, Inc. 6,211,475 213
--------------------------------------------------------------------------------------------------------
15,734,712 540
--------------------------------------------------------------------------------------------------------
Consumer Cyclicals--5.8%
16,900 Circuit City Stores - Circuit City Group 560,868 19
58,000 * Costco Wholesale Corporation 1,914,000 66
51,600 Home Depot, Inc. 2,576,775 89
172,600 Mattel, Inc. 2,276,163 78
74,000 McGraw-Hill Companies, Inc. 3,996,000 137
97,900 Wal-Mart Stores, Inc. 5,641,488 194
--------------------------------------------------------------------------------------------------------
16,965,294 583
--------------------------------------------------------------------------------------------------------
Consumer Staples--11.3%
57,700 Anheuser-Busch Companies, Inc. 4,309,469 148
297,800 * AT&T Corporation - Liberty Media Group - Class "A" 7,221,650 248
56,700 * Clear Channel Communications, Inc. 4,252,500 146
62,600 McDonald's Corporation 2,061,888 71
107,800 PepsiCo, Inc. 4,790,362 165
35,300 * Safeway, Inc. 1,592,913 55
55,600 Time Warner, Inc. 4,225,600 145
29,100 * U.S. Home & Garden, Inc. 94,575 3
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Staples (continued)
21,300 Unilever NV - NY Shares (ADR) $ 915,900 $ 31
29,200 * Viacom, Inc. - Class "B" 1,991,075 68
39,800 Walt Disney Company 1,544,738 53
--------------------------------------------------------------------------------------------------------
33,000,670 1,133
--------------------------------------------------------------------------------------------------------
Energy--7.1%
14,100 Chevron Corporation 1,195,855 41
153,900 EOG Resources, Inc. 5,155,650 177
66,133 Exxon Mobil Corporation 5,191,441 178
50,000 Halliburton Company 2,359,375 81
24,300 Kerr-McGee Corporation 1,432,181 49
41,300 Noble Affiliates, Inc. 1,538,425 53
11,800 * Santa Fe Snyder Corporation 134,225 5
113,300 Union Pacific Resources Group, Inc. 2,492,600 86
44,000 USX-Marathon Group 1,102,750 38
--------------------------------------------------------------------------------------------------------
20,602,502 708
--------------------------------------------------------------------------------------------------------
Financial--9.8%
68,000 American International Group, Inc. 7,990,000 274
130,300 Capital One Financial Corporation 5,814,638 200
42,300 Charles Schwab Corporation 1,422,337 49
119,700 Citigroup, Inc. 7,211,925 248
21,000 Fannie Mae 1,095,938 38
36,800 Freddie Mac 1,490,400 51
41,200 Morgan Stanley Dean Witter & Company 3,429,900 118
--------------------------------------------------------------------------------------------------------
28,455,138 978
--------------------------------------------------------------------------------------------------------
Healthcare--8.8%
26,900 Abbott Laboratories 1,198,731 41
61,200 * Amgen, Inc. 4,299,300 148
23,800 Becton, Dickinson & Company 682,763 23
80,700 HCA - The Healthcare Corporation 2,451,263 84
36,700 Johnson & Johnson 3,738,813 128
71,800 Medtronic, Inc. 3,576,538 123
89,200 Merck & Company, Inc. 6,834,950 235
54,800 Schering-Plough Corporation 2,767,400 95
--------------------------------------------------------------------------------------------------------
25,549,758 877
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Technology--38.3%
58,000 * Advanced Micro Devices, Inc. $ 4,480,500 $ 154
9,500 * Agilent Technologies, Inc. 700,625 24
45,000 * Altera Corporation 4,587,188 158
34,800 * Analog Devices, Inc. 2,644,800 91
36,000 * Apple Computer, Inc. 1,885,500 65
60,600 * Applied Materials, Inc. 5,491,875 189
35,700 Autodesk, Inc. 1,238,344 43
16,100 * Catalina Marketing Corporation 1,642,200 56
35,500 * CIENA Corporation 5,917,406 203
133,400 * Cisco Systems, Inc. 8,479,238 291
57,000 Compaq Computer Corporation 1,457,062 50
59,100 * Dell Computer Corporation 2,914,368 100
62,000 * EMC Corporation 4,770,125 164
22,100 * Entrust Technologies, Inc. 1,828,775 63
37,100 Ericsson (L.M.) Telephone Company (ADR) - Class "B" 742,000 25
27,400 * Exodus Communications, Inc. 1,262,112 43
14,500 * Gateway, Inc. 822,875 28
67,300 Intel Corporation 8,997,169 308
29,300 International Business Machines Corporation 3,210,181 110
134,100 * Jabil Circuit, Inc. 6,654,713 229
74,700 * LSI Logic Corporation 4,043,137 139
29,000 Lucent Technologies, Inc. 1,718,250 59
63,800 * Microsoft Corporation 5,104,000 175
121,500 Nokia Corporation (ADR) - Class "A" 6,067,406 208
72,500 * Oracle Corporation 6,094,530 209
58,400 * PeopleSoft, Inc. 978,200 34
12,400 * PMC-Sierra, Inc. 2,203,325 76
116,000 * Robotic Vision System, Inc. 2,088,000 72
28,900 * Sun Microsystems, Inc. 2,628,094 90
51,400 * Sungard Data Systems, Inc. 1,593,400 55
65,600 * Symantec Corporation 3,538,300 122
62,200 * Teradyne, Inc. 4,571,700 157
14,500 * Vitesse Semiconductor Corporation 1,066,655 37
--------------------------------------------------------------------------------------------------------
111,422,053 3,827
--------------------------------------------------------------------------------------------------------
Transportation--.5%
58,400 Burlington Northern Santa Fe Corporation 1,339,550 46
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utilities--2.3%
107,200 Enron Corporation $ 6,914,400 $ 237
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $180,235,214) 282,083,222 9,688
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.5%
$ 4,300M Ford Motor Credit Co., 6.72%, 7/5/00
(cost $4,296,786) 4,296,786 148
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $184,532,000) 98.4% 286,380,008 9,836
Other Assets, Less Liabilities 1.6 4,760,296 164
--------------------------------------------------------------------------------------------------------
Net Assets 100.0 % $291,140,304 $10,000
========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
June 30, 2000
---------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE NOTES--90.8%
$ 400M Anheuser-Busch Cos., Inc., 9/11/00 6.53% $ 394,755 $ 479
440M Baltimore Gas & Electric Co., 8/3/00 6.60 437,338 531
250M Donnelley (R.R.) & Sons Co., 12/1/00 6.66 252,464 306
400M Du Pont (E.I.) de Nemours & Co., 7/20/00 6.50 398,622 484
400M Eastman Kodak Co., 7/27/00 6.55 398,092 483
250M Ford Motor Credit Co., 7/6/00 6.70 249,767 303
170M Ford Motor Credit Co., 11/8/00 6.52 169,812 206
400M General Electric Capital Corp., 8/18/00 6.54 396,501 481
300M Heinz, H.J. Co., 7/6/00 6.54 299,726 364
350M Illinois Tool Works, Inc., 7/27/00 6.54 348,344 423
250M International Business Machines Corp.,
8/7/00 6.25 249,933 30
315M Laclede Gas Co., 8/24/00 6.63 311,866 378
400M McCormick & Co., Inc., 7/5/00 6.54 399,709 485
100M McDonald's Corp., 11/15/00 6.74 100,703 122
400M McGraw-Hill, Inc., 7/31/00 6.56 397,800 483
300M Merrill Lynch & Co., Inc., 8/7/00 6.54 297,981 362
255M National Rural Utilities Cooperative
Finance Corp., 12/4/00 6.65 247,618 300
100M New York Times Co., Inc., 7/25/00 6.55 99,560 121
250M New York Times Co., Inc., 8/3/00 6.53 248,497 302
110M Paccar Financial Corp., 2/15/01 6.95 109,722 133
150M Paccar Financial Corp., 2/15/01 6.97 149,550 182
400M Prudential Funding Corp., 7/6/00 6.53 399,634 485
250M Sara Lee Corp., 7/14/00 6.40 249,931 303
325M Texaco, Inc., 7/7/00 6.52 324,645 394
351M Wal-Mart Stores, Inc., 7/15/00 6.18 351,362 426
200M Walt Disney Co., 3/30/01 7.40 198,524 241
---------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $7,482,456) 7,482,456 9,080
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.0%
$ 300M Freddie Mac, 1/26/01 7.11% $ 296,714 $ 360
200M Freddie Mac, 7/13/01 7.02 200,000 243
---------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $496,714) 496,714 603
---------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--9.7%
400M AT&T Corp., 3/8/01 6.58 399,973 485
400M First Union National Bank, 10/27/00 7.48 400,000 485
---------------------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $799,973) 799,973 970
---------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $8,779,143) 106.5% 8,779,143 10,653
Excess Of Liabilities Over Other Assets (6.5) (538,320) (653)
---------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $8,240,823 $10,000
=====================================================================================================================
* 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. The interest rates shown on the floating
rate notes are adjusted periodically; the interest rates shown are
the rates that were in effect at June 30, 2000.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--85.3%
Basic Materials--3.7%
32,600 * Astec Industries, Inc. $ 827,225 $ 50
60,300 Cabot Corporation 1,643,175 99
184,300 * ChiRex, Inc. 3,686,000 224
--------------------------------------------------------------------------------------------------------
6,156,400 373
--------------------------------------------------------------------------------------------------------
Capital Goods--3.4%
93,400 Applied Power, Inc. - Class "A" 3,128,900 189
32,500 * Benchmark Electronics, Inc. 1,188,280 72
59,400 Elcor Corporation 1,366,200 83
--------------------------------------------------------------------------------------------------------
5,683,380 344
--------------------------------------------------------------------------------------------------------
Communication Services--3.7%
32,600 * Allegiance Telecom, Inc. 2,086,400 126
26,000 * Commonwealth Telephone Enterprises, Inc. 1,223,625 74
60,700 * ICG Communications, Inc. 1,339,194 81
83,500 * US LEC Corporation - Class "A" 1,419,500 86
--------------------------------------------------------------------------------------------------------
6,068,719 367
--------------------------------------------------------------------------------------------------------
Consumer Cyclicals--8.4%
128,700 * Ames Department Stores, Inc. 997,425 60
85,500 * Electronics Boutique Holdings Corporation 1,400,062 85
39,550 * Fossil, Inc. 768,753 47
91,200 Fred's, Inc. - Class "A" 1,641,600 99
94,600 * Hibbett Sporting Goods, Inc. 2,223,100 135
73,900 * ITT Educational Services, Inc. 1,297,868 79
102,900 * Sunglass Hut International, Inc. 845,715 51
222,100 * THQ, Inc. 2,706,844 163
62,800 * Tuesday Morning Corporation 659,400 40
136,700 Wolverine World Wide, Inc. 1,349,913 82
--------------------------------------------------------------------------------------------------------
13,890,680 841
--------------------------------------------------------------------------------------------------------
Consumer Staples--8.3%
141,300 * AT&T Corporation - Liberty Media Group - Class "A" 3,426,525 208
64,500 * Cinar Corporation - Class "B" 350,718 21
48,800 * Citadel Communications Corporation 1,704,950 103
57,400 * Hain Celestial Group, Inc. 2,105,862 127
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Staples (continued)
69,300 * Suiza Foods Corporation $ 3,387,038 $ 205
67,400 * Whole Foods Market, Inc. 2,784,463 169
--------------------------------------------------------------------------------------------------------
13,759,556 833
--------------------------------------------------------------------------------------------------------
Energy--3.5%
70,800 * Newfield Exploration Company 2,770,050 168
86,400 Santa Fe International Corporation 3,018,600 183
--------------------------------------------------------------------------------------------------------
5,788,650 351
--------------------------------------------------------------------------------------------------------
Financial--4.0%
58,600 Chittenden Corporation 1,432,037 87
164,900 HCC Insurance Holdings, Inc. 3,112,488 188
76,600 Westamerica Bancorporation 2,001,175 121
--------------------------------------------------------------------------------------------------------
6,545,700 396
--------------------------------------------------------------------------------------------------------
Healthcare--25.6%
78,800 Bindley Western Industries, Inc. 2,083,275 126
41,900 * Celgene Corporation 2,466,863 149
29,700 * CONMED Corporation 768,488 47
151,200 Hooper Holmes, Inc. 1,209,600 73
76,400 * Impath, Inc. 4,144,700 252
27,700 * Invitrogen Corporation 2,083,125 126
55,100 * IVAX Corporation 2,286,650 138
40,700 Jones Pharma, Inc. 1,625,455 98
168,180 * Kensey Nash Corporation 1,871,003 113
64,400 * Medicis Pharmaceutical Corporation - Class "A" 3,670,800 223
41,000 * Molecular Devices Corporation 2,836,688 172
82,000 * Province Healthcare Company 2,962,250 179
92,800 * Renal Care Group, Inc. 2,269,248 137
111,300 * SangStat Medical Corporation 3,213,788 195
60,600 Teva Pharmaceutical Industries, Ltd. (ADR) 3,359,513 203
51,600 * Trigon Healthcare, Inc. - Class "A" 2,660,625 161
41,100 * Universal Health Services, Inc. - Class "B" 2,712,600 164
--------------------------------------------------------------------------------------------------------
42,224,671 2,556
--------------------------------------------------------------------------------------------------------
Technology--24.7%
53,900 * Alpha Industries, Inc. 2,374,969 144
21,300 * Anaren Microwave, Inc. 2,795,293 169
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Technology (continued)
55,800 * ASM International NV $ 1,478,700 $ 90
43,400 * Bottomline Technologies, Inc. 1,483,738 90
28,600 * Celeritek, Inc. 1,167,238 71
66,400 * CommScope, Inc. 2,722,400 165
22,100 * F.Y.I., Inc. 744,494 45
51,100 * Flextronics International, Ltd. 3,509,930 211
44,300 * Galileo Technology, Ltd. 952,450 58
37,000 * GSI Lumonics, Inc. 1,299,625 79
29,000 * Mercury Computer Systems, Inc. 937,063 57
46,800 * NICE Systems, Ltd. (ADR) 3,612,375 218
66,100 * Orckit Communications, Ltd. 1,991,263 121
19,500 * PRI Automation, Inc. 1,275,117 77
51,700 * QRS Corporation 1,269,881 77
184,600 * SAGA SYSTEMS, Inc. 2,295,963 139
44,300 * Symantec Corporation 2,389,431 145
53,000 * Synopsys, Inc. 1,831,813 111
121,700 * TeleTech Holdings, Inc. 3,780,305 228
37,600 W.W. Grainger, Inc. 1,158,550 70
37,300 * Zebra Technologies Corporation - Class "A" 1,652,855 100
--------------------------------------------------------------------------------------------------------
40,723,453 2,465
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $104,812,379) 140,841,209 8,526
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--12.7%
$7,500M Florida Power & Light Co., 6.60%, 7/24/00 7,468,369 452
6,000M Ford Motor Credit Co., 6.60%, 7/12/00 5,987,899 362
6,000M Prudential Funding Corp., 6.56%, 7/6/00 5,994,523 363
1,600M Walt Disney Co., 6.54%, 7/7/00 1,598,253 97
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $21,049,044) 21,049,044 1,274
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $125,861,423) 98.0% 161,890,253 9,800
Other Assets, Less Liabilities 2.0 3,304,351 200
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $165,194,604 $10,000
========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--76.5%
Capital Goods--9.1%
6,100 General Electric Company $ 323,300 $ 429
800 * General Motors Corporation - Class "H" 70,200 93
6,200 Tyco International, Ltd. 293,725 390
--------------------------------------------------------------------------------------------------------
687,225 912
--------------------------------------------------------------------------------------------------------
Communication Services--7.0%
1,900 * L-3 Communications Holdings, Inc. 108,419 144
3,100 * Nextel Communications, Inc. 189,681 252
5,000 * WorldCom, Inc. 229,375 304
--------------------------------------------------------------------------------------------------------
527,475 700
--------------------------------------------------------------------------------------------------------
Consumer Staples--29.0%
32,600 * AT&T Corporation - Liberty Media Group - Class "A" 790,550 1,050
7,700 * Clear Channel Communications, Inc. 577,500 766
6,000 * Comcast Corporation - Spec. Class "A" 243,000 322
4,000 * Infinity Broadcasting Corporation 145,750 193
6,291 * Viacom, Inc. - Class "B" 428,967 569
--------------------------------------------------------------------------------------------------------
2,185,767 2,900
--------------------------------------------------------------------------------------------------------
Financial--9.2%
6,375 American Express Company 332,297 442
1,400 American International Group, Inc. 164,500 218
1,800 Citigroup, Inc. 108,450 144
200 M & T Bank Corporation 90,000 119
--------------------------------------------------------------------------------------------------------
695,247 923
--------------------------------------------------------------------------------------------------------
Healthcare--8.3%
5,000 Baxter International, Inc. 351,563 467
1,500 Eli Lilly & Company 149,813 199
2,500 Pfizer Corporation 120,000 159
--------------------------------------------------------------------------------------------------------
621,376 825
--------------------------------------------------------------------------------------------------------
Technology--13.9%
5,700 * America Online, Inc. 300,675 399
1,000 Intel Corporation 133,687 177
1,800 Lucent Technologies, Inc. 106,650 142
2,000 * Microsoft Corporation 160,000 212
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Technology (continued)
3,600 Nokia Corporation (ADR) - Class "A" $ 179,775 $ 239
500 * Oracle Corporation 42,031 56
1,800 Texas Instruments, Inc. 123,638 164
--------------------------------------------------------------------------------------------------------
1,046,456 1,389
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $5,423,495) 5,763,546 7,649
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--14.5%
$150M U.S. Treasury Bills, 5.87%, 7/6/00 149,882 199
100M U.S. Treasury Bills, 5.66%, 7/27/00 99,600 132
200M U.S. Treasury Bills, 6.089%, 8/10/00 198,702 264
250M U.S. Treasury Bills, 5.69%, 8/24/00 248,007 329
250M U.S. Treasury Bills, 5.73%, 9/7/00 247,410 328
150M U.S. Treasury Bills, 5.67%, 9/21/00 148,120 197
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $1,091,416) 1,091,721 1,449
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $6,514,911) 91.0% 6,855,267 9,098
Other Assets, Less Liabilities 9.0 680,216 902
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $7,535,483 $10,000
========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE GOVERNMENT FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED CERTIFICATES--64.6%
Federal Home Loan Mortgage Corporation--7.6%
$ 809M 8.50%, 7/1/2022-9/1/2024 $ 829,711 $ 764
Federal National Mortgage Association --22.5%
1,442M 9%, 6/1/2015-11/1/2026 1,487,442 1,371
877M 11%, 10/1/2015 951,030 876
Government National Mortgage Association I
Program --34.5%
996M 7.50%, 2/15/2030 989,883 912
1,248M 8%, 7/15/2018 1,271,156 1,171
1,228M 10%, 5/15/2019-8/15/2019 1,286,300 1,185
178M 11.50%, 10/15/2012-5/15/2015 195,059 180
--------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $7,186,737) 7,010,581 6,459
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--17.7%
1,000M Federal Home Loan Bank, 5.80%, 9/2/2008 916,900 845
1,000M Tennessee Valley Authority Power Board,
7.125%, 5/1/2030 1,001,080 922
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $1,940,964) 1,917,980 1,767
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--12.2%
1,000M U.S. Treasury Notes, 5.25%, 11/15/2028 885,313 815
500M U.S. Treasury Notes, 5.25%, 2/15/2029 443,750 409
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $1,319,759) 1,329,063 1,224
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.9%
120M Ford Motor Credit Co., 6.73%, 7/5/2000 119,910 110
300M General Electric Capital Corp., 6.81%, 7/7/2000 299,660 277
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $419,570) 419,570 387
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $10,867,030) 98.4% 10,677,194 9,837
Other Assets, Less Liabilities 1.6 177,407 163
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $10,854,601 $10,000
========================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE GROWTH FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--97.0%
Aerospace/Defense--.5%
23,400 United Technologies Corporation $ 1,377,675 $ 47
--------------------------------------------------------------------------------------------------------
Banks--2.9%
70,498 Citigroup, Inc. 4,247,505 145
21,400 State Street Corporation 2,269,738 77
66,000 U.S. Bancorp 1,270,500 43
9,700 Westamerica Bancorporation 253,413 9
7,900 Wilmington Trust Corporation 337,725 12
--------------------------------------------------------------------------------------------------------
8,378,881 286
--------------------------------------------------------------------------------------------------------
Business Services--3.3%
25,700 G&K Sevices, Inc. 644,105 22
30,400 Herman Miller, Inc. 786,600 27
26,800 * IONICS, Inc. 820,750 28
87,100 * Iron Mountain, Inc. 2,961,400 101
64,200 Manpower, Inc. 2,054,400 70
19,650 * Tetra Tech, Inc. 449,494 15
46,756 * United Rentals, Inc. 800,697 27
65,400 Waste Management, Inc. 1,242,600 42
--------------------------------------------------------------------------------------------------------
9,760,046 332
--------------------------------------------------------------------------------------------------------
Chemicals--.7%
31,300 Du Pont (E.I.) de Nemours & Company 1,369,375 46
12,600 Minerals Technologies, Inc. 579,600 20
--------------------------------------------------------------------------------------------------------
1,948,975 66
--------------------------------------------------------------------------------------------------------
Communications Equipment--8.1%
45,900 Bell Atlantic Corporation 2,332,294 80
107,600 * Cisco Systems, Inc. 6,839,325 232
20,200 * CommScope, Inc. 828,200 28
8,000 Corning, Inc. 2,159,000 74
19,800 * Digital Microwave Corporation 754,875 26
9,400 * JDS Uniphase Corporation 1,126,825 38
49,536 Lucent Technologies, Inc. 2,935,008 100
63,300 Motorola, Inc. 1,839,655 63
55,200 Nokia Corporation (ADR) - Class "A" 2,756,550 94
15,800 Nortel Networks Corporation 1,078,350 37
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Communications Equipment (continued)
16,800 * Tellabs, Inc. $ 1,149,750 $ 39
--------------------------------------------------------------------------------------------------------
23,799,832 811
--------------------------------------------------------------------------------------------------------
Computers & Office Equipment--3.7%
10,200 * Affiliated Computer Services, Inc. 337,237 11
32,900 * Dell Computer Corporation 1,622,380 55
29,800 * EMC Corporation 2,292,738 78
18,600 Hewlett Packard Company 2,322,675 79
32,800 International Business Machines Corporation 3,593,650 123
12,350 Symbol Technologies, Inc. 666,900 23
--------------------------------------------------------------------------------------------------------
10,835,580 369
--------------------------------------------------------------------------------------------------------
Drugs--8.4%
13,000 * ALZA Corporation 768,625 26
61,300 American Home Products Corporation 3,601,375 123
59,200 * Genzyme Corporation 3,518,700 120
99,000 * Immunex Corporation 4,894,313 167
21,300 Johnson & Johnson 2,169,938 74
38,600 Merck & Company, Inc. 2,957,725 101
68,475 Pfizer Corporation 3,286,800 112
64,900 Pharmacia Corporation 3,354,519 114
--------------------------------------------------------------------------------------------------------
24,551,995 837
--------------------------------------------------------------------------------------------------------
Electric Utilities--.3%
22,200 Montana Power Company 783,938 27
--------------------------------------------------------------------------------------------------------
Electrical Equipment--2.7%
126,000 General Electric Company 6,678,000 228
22,700 * Littlefuse, Inc. 1,112,300 38
--------------------------------------------------------------------------------------------------------
7,790,300 266
--------------------------------------------------------------------------------------------------------
Electronics--8.8%
18,900 * Analog Devices, Inc. 1,436,400 49
25,600 * Applied Materials, Inc. 2,320,000 79
9,800 * Broadcom Corporation - Class "A" 2,145,588 73
7,900 * Burr-Brown Corporation 684,830 23
22,600 Dallas Semiconductor Corporation 920,950 31
43,800 * Flextronics International, Ltd. 3,008,513 103
44,800 Intel Corporation 5,989,200 205
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Electronics (continued)
9,800 * Lattice Semiconductor Corporation $ 677,425 $ 23
45,600 * Micron Technology, Inc. 4,015,650 137
45,400 * Novellus Systems, Inc. 2,567,938 88
17,700 * Solectron Corporation 741,188 25
20,500 Texas Instruments, Inc. 1,408,094 48
--------------------------------------------------------------------------------------------------------
25,915,776 884
--------------------------------------------------------------------------------------------------------
Energy Services--2.4%
13,000 * Hanover Compressor Company 494,000 17
153,500 * R&B Falcon Corporation 3,616,844 124
37,900 Schlumberger, Ltd. 2,828,288 96
--------------------------------------------------------------------------------------------------------
6,939,132 237
--------------------------------------------------------------------------------------------------------
Energy Sources--2.4%
51,900 Exxon Mobil Corporation 4,074,150 140
10,500 Murphy Oil Corporation 624,094 21
39,300 Royal Dutch Petroleum Company - NY Shares (ADR) 2,419,405 82
--------------------------------------------------------------------------------------------------------
7,117,649 243
--------------------------------------------------------------------------------------------------------
Entertainment--.2%
28,400 * Speedway Motorsports, Inc. 653,200 22
--------------------------------------------------------------------------------------------------------
Financial Services--2.6%
78,500 Associates First Capital Corporation 1,751,530 60
25,000 Goldman Sachs Group, Inc. 2,371,875 81
17,000 * Investment Technology Group, Inc. 723,563 25
25,100 Merrill Lynch & Company, Inc. 2,886,500 98
--------------------------------------------------------------------------------------------------------
7,733,468 264
--------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.9%
19,000 * Beringer Wine Estates Holdings, Inc. - Class "B" 670,938 23
30,700 Coca-Cola Company 1,763,330 60
17,300 Pepsi Bottling Group, Inc. 504,944 17
56,900 PepsiCo, Inc. 2,528,494 86
--------------------------------------------------------------------------------------------------------
5,467,706 186
--------------------------------------------------------------------------------------------------------
Health Services--2.9%
27,200 Cardinal Health, Inc. 2,012,800 69
29,300 IMS Health, Inc. 527,400 18
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Health Services (continued)
29,600 * Laboratory Corporation of America Holdings $ 2,282,848 $ 78
34,300 * Quest Diagnostics, Inc. 2,454,594 84
11,300 Shared Medical System Corporation 824,194 28
7,000 * Trigon Healthcare, Inc. - Class "A" 360,938 12
--------------------------------------------------------------------------------------------------------
8,462,774 289
--------------------------------------------------------------------------------------------------------
Household Products--.9%
38,000 Gillette Company 1,327,625 45
24,000 Procter & Gamble Company 1,374,000 47
--------------------------------------------------------------------------------------------------------
2,701,625 92
--------------------------------------------------------------------------------------------------------
Insurance--3.5%
78,300 ACE, Ltd. 2,192,400 75
31,116 American International Group, Inc. 3,656,130 125
32,800 Marsh & McLennan Companies, Inc. 3,425,550 117
33,500 Reinsurance Group of America, Inc. 1,009,187 34
--------------------------------------------------------------------------------------------------------
10,283,267 351
--------------------------------------------------------------------------------------------------------
Machinery & Manufacturing--1.3%
24,800 Illinois Tool Works, Inc. 1,413,600 48
8,000 Nordson Corporation 405,000 14
43,500 Tyco International, Ltd. 2,060,813 70
--------------------------------------------------------------------------------------------------------
3,879,413 132
--------------------------------------------------------------------------------------------------------
Media--10.7%
28,000 * Acxiom Corporation 763,000 26
65,200 * America Online, Inc. 3,439,300 117
109,500 * American Tower Corporation - Class "A" 4,564,781 156
148,400 * AT&T Corporation - Liberty Media Group - Class "A" 3,598,700 123
8,000 * Catalina Marketing Corporation 816,000 28
37,100 * Crown Castle International Corporation 1,354,150 46
29,000 Gannett Company, Inc. 1,734,563 59
20,500 * General Motors Corporation - Class "H" 1,798,875 61
1,700 * Nextel Partners, Inc. 55,356 2
38,400 * Sprint Corporation 2,284,800 78
70,500 * Telecorp PCS, Inc. 2,842,031 97
10,100 * TMP Worldwide, Inc. 745,506 25
51,103 * Viacom, Inc. - Class "B" 3,484,585 119
17,300 * VoiceStream Wireless Corporation 2,011,935 69
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Media (continued)
48,400 Walt Disney Company $ 1,878,525 $ 64
--------------------------------------------------------------------------------------------------------
31,372,107 1,070
--------------------------------------------------------------------------------------------------------
Medical Products--3.2%
52,300 Abbott Laboratories 2,330,619 79
11,700 Bausch & Lomb, Inc. 905,288 31
29,200 Baxter International, Inc. 2,053,125 70
14,000 Biomet, Inc. 538,125 18
28,400 * Waters Corporation 3,544,675 122
--------------------------------------------------------------------------------------------------------
9,371,832 320
--------------------------------------------------------------------------------------------------------
Paper/Forest Products--.6%
23,200 Bemis Company, Inc. 780,100 27
25,800 Weyerhauser Company 1,109,400 37
--------------------------------------------------------------------------------------------------------
1,889,500 64
--------------------------------------------------------------------------------------------------------
Retail--4.8%
46,800 CVS Corporation 1,872,000 64
106,718 Dollar General Corporation 2,081,000 71
37,300 Family Dollar Stores, Inc. 729,680 25
55,400 Home Depot, Inc. 2,766,538 94
36,000 Target Corporation 2,088,000 71
72,300 Wal-Mart Stores, Inc. 4,166,288 142
10,600 * Whole Foods Market, Inc. 437,913 15
--------------------------------------------------------------------------------------------------------
14,141,419 482
--------------------------------------------------------------------------------------------------------
Software/Services--14.5%
21,500 * American Management Systems, Inc. 705,804 24
52,000 Automatic Data Processing, Inc. 2,785,250 95
105,800 * Ceridian Corporation 2,545,813 87
28,900 * Computer Sciences Corporation 2,158,469 74
8,200 * DST Systems, Inc. 624,225 21
7,200 * eBay, Inc. 391,050 13
15,200 Electronic Data Systems Corporation 627,000 21
36,300 First Data Corporation 1,801,388 61
10,900 * Fiserv, Inc. 471,425 16
56,800 * Intuit, Inc. 2,350,100 80
44,600 * Macromedia, Inc. 4,312,263 147
75,900 * Microsoft Corporation 6,072,000 207
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Software/Services (continued)
27,400 * NOVA Corporation $ 765,488 $ 26
12,700 * Oracle Corporation 1,067,594 36
4,000 * Phone.com, Inc. 260,500 9
50,100 * Rational Software Corporation 4,656,169 159
14,000 * Sungard Data Systems, Inc. 434,000 15
25,800 * Systems & Computer Technology Corporation 516,000 18
33,002 * Verisign, Inc. 5,824,853 199
15,900 * Verity, Inc. 604,200 21
70,100 * Vignette Corporation 3,646,294 124
--------------------------------------------------------------------------------------------------------
42,619,885 1,453
--------------------------------------------------------------------------------------------------------
Telephone--4.5%
25,800 * Allegiance Telecom, Inc. 1,651,200 56
60,000 AT&T Corporation 1,897,500 65
26,700 * Global Crossing, Ltd. 702,544 24
132,300 * McLeodUSA, Inc. 2,736,955 93
58,300 SBC Communications, Inc. 2,521,475 86
79,650 * WorldCom, Inc. 3,653,944 125
--------------------------------------------------------------------------------------------------------
13,163,618 449
--------------------------------------------------------------------------------------------------------
Travel & Leisure--1.2%
31,900 * AMR Corporation 843,355 29
54,500 McDonald's Corporation 1,795,094 61
28,200 * Ryanair Holdings PLC ( ADR) 1,029,300 35
--------------------------------------------------------------------------------------------------------
3,667,749 125
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $184,173,161) 284,607,342 9,704
--------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--2.9%
$8,380M SBC Warburg Dillion Read, Inc., 6.60%, 7/3/00
(collateralized by U.S. Treasury Bonds, due 2/15/20,
valued at $8,541,076) (cost $8,380,000) 8,380,000 286
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $192,553,161) 99.9% 292,987,342 9,990
Other Assets, Less Liabilities .1 306,486 10
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $293,293,828 $10,000
========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--87.4%
Apparel/Textiles--1.5%
$ 1,100M Polymer Group, Inc., 9%, 2007 $ 940,500 $ 153
--------------------------------------------------------------------------------------------------------
Automotive --3.5%
1,000M Collins & Aikman Products Co., 11.50%, 2006 960,000 157
950M Exide Corp., 10%, 2005 840,750 137
1,000M Special Devices, Inc., 11.375%, 2008 355,000 58
--------------------------------------------------------------------------------------------------------
2,155,750 352
--------------------------------------------------------------------------------------------------------
Chemicals--3.0%
600M Huntsman Polymers Corp., 11.75%, 2004 612,000 100
700M Hydrochem Industrial Services, Inc., 10.375%, 2007 535,500 87
700M Lyondell Chemical Co., 9.625%, 2007 693,875 113
--------------------------------------------------------------------------------------------------------
1,841,375 300
--------------------------------------------------------------------------------------------------------
Consumer Products--2.3%
970M Corning Consumer Products Co., 9.625%, 2008 654,750 107
700M Herff Jones, Inc., 11%, 2005 732,375 119
--------------------------------------------------------------------------------------------------------
1,387,125 226
--------------------------------------------------------------------------------------------------------
Containers/Packaging--.8%
500M Tekni-Plex, Inc., 12.75%, 2010 + 501,250 82
--------------------------------------------------------------------------------------------------------
Durable Goods Manufacturing--1.7%
750M Clark Material Handling, Inc., 10.75%, 2006 ++ 127,500 21
1,040M Columbus McKinnon Corp., 8.50%, 2008 920,400 150
--------------------------------------------------------------------------------------------------------
1,047,900 171
--------------------------------------------------------------------------------------------------------
Electrical Equipment--1.2%
750M Amphenol Corp., 9.875%, 2007 761,250 124
--------------------------------------------------------------------------------------------------------
Energy--4.4%
950M Giant Industries, Inc., 9.75%, 2003 934,563 152
750M Gulf Canada Resources, Ltd., 9.625%, 2005 760,312 124
1,000M Veritas DGC, Inc., 9.75%, 2003 1,015,000 166
--------------------------------------------------------------------------------------------------------
2,709,875 442
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Entertainment/Leisure--1.8%
$ 1,000M Carmike Cinemas, Inc., 9.375%, 2009 $ 560,000 $ 92
700M Loews Cineplex Entertainment Corp., 8.875%, 2008 332,500 54
375M Outboard Marine Corp., 10.75%, 2008 193,125 31
--------------------------------------------------------------------------------------------------------
1,085,625 177
--------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--3.7%
1,300M Canandaigua Brands, Inc., 8.50%, 2009 1,189,500 194
1,000M International Home Foods, Inc., 10.375%, 2006 1,075,000 175
--------------------------------------------------------------------------------------------------------
2,264,500 369
--------------------------------------------------------------------------------------------------------
Gaming/Lodging--4.3%
1,000M Hollywood Park, Inc., 9.25%, 2007 1,000,000 163
1,000M Isle of Capri Casinos, Inc., 8.75%, 2009 930,000 152
700M Park Place Entertainment Corp., 9.375%, 2007 703,500 115
--------------------------------------------------------------------------------------------------------
2,633,500 430
--------------------------------------------------------------------------------------------------------
Healthcare--6.4%
700M CONMED Corp., 9%, 2008 639,625 104
500M Fisher Scientific International, Inc., 7.125%, 2005 460,649 75
950M Fisher Scientific International, Inc., 9%, 2008 871,625 142
600M Genesis Health Ventures, Inc., 9.75%, 2005 ++ 69,000 11
350M Integrated Health Services, Inc., 9.50%, 2007 ++ 11,812 2
1,000M Packard Bioscience, Inc., 9.375%, 2007 915,000 149
1,000M Tenet Healthcare Corp., 8.625%, 2007 955,000 157
--------------------------------------------------------------------------------------------------------
3,922,711 640
--------------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--3.1%
600M ChipPac International, Ltd., 12.75%, 2009 653,250 107
700M Exodus Communications, Inc., 10.75%, 2009 677,250 110
200M Exodus Communications, Inc., 11.625%, 2010 201,500 33
500M Rhythyms NetConnections, Inc., 12.75%, 2009 355,000 58
--------------------------------------------------------------------------------------------------------
1,887,000 308
--------------------------------------------------------------------------------------------------------
Media (Cable TV/Broadcasting)--8.8%
1,000M Charter Communications Holdings, LLC, 10%, 2009 972,500 159
1,100M Diva Systems Corp., 0%-12.625%, 2008 588,500 96
800M Echostar DBS, 9.375%, 2009 776,000 127
700M NTL, Inc., 11.50%, 2008 707,000 115
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Media (Cable TV/Broadcasting) (continued)
$ 1,000M Rogers Communications, Inc., 8.875%, 2007 $ 985,000 $ 160
700M Sinclair Broadcasting Group, Inc., 10%, 2005 666,750 109
700M Star Choice Communications, Inc., 13%, 2005 721,875 118
--------------------------------------------------------------------------------------------------------
5,417,625 884
--------------------------------------------------------------------------------------------------------
Media (Other)--2.9%
1,000M Garden State Newspapers, Inc., 8.625%, 2011 885,000 145
1,000M Mail-Well I Corp., 8.75%, 2008 855,000 139
--------------------------------------------------------------------------------------------------------
1,740,000 284
--------------------------------------------------------------------------------------------------------
Mining/Metals--3.8%
900M Commonwealth Aluminum Corp., 10.75%, 2006 868,500 141
1,000M CSN Iron, SA, 9.125%, 2007 + 810,000 132
1,000M Wheeling-Pittsburgh Corp., 9.25%, 2007 655,000 107
--------------------------------------------------------------------------------------------------------
2,333,500 380
--------------------------------------------------------------------------------------------------------
Miscellaneous--6.4%
1,150M Allied Waste NA, Inc., 10%, 2009 971,750 158
1,000M Iron Mountain, Inc., 8.25%, 2011 880,000 143
1,250M Kindercare Learning Centers, Inc., 9.50%, 2009 1,156,250 189
950M Loomis Fargo & Co., 10%, 2004 912,000 149
--------------------------------------------------------------------------------------------------------
3,920,000 639
--------------------------------------------------------------------------------------------------------
Paper/Forest Products--6.7%
500M Container Corp., 11.25%, 2004 510,000 83
1,050M Packaging Corporation of America, 9.625%, 2009 1,039,500 169
1,000M Riverwood International Corp., 10.25%, 2006 961,250 157
501M S.D. Warren Company, Inc., 14%, 2006 555,644 91
1,000M Stone Container Corp., 10.75%, 2002 1,013,750 165
--------------------------------------------------------------------------------------------------------
4,080,144 665
--------------------------------------------------------------------------------------------------------
Real Estate Construction--.7%
800M Cathay International, Ltd., 13%, 2008 + 420,000 68
--------------------------------------------------------------------------------------------------------
Telecommunications--19.1%
1,500M E. Spire Communications, Inc., 0%-13%, 2005 720,000 117
1,000M Global Crossing Holdings, Ltd., 9.125%, 2006 965,000 157
1,000M Level 3 Communications, Inc., 9.125%, 2008 898,750 147
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Principal Invested
Amount, For Each
Shares or $10,000 of
Warrants Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Telecommunications (continued)
$ 1,000M McCaw International, Ltd., 0%-13%, 2007 $ 770,000 $ 126
1,250M Netia Holdings BV, 0%-11.25%, 2007 837,500 137
1,000M NEXTLINK Communications, Inc., 9%, 2008 910,000 148
1,150M Pac-West Telecommunications, Inc., 13.50%, 2009 1,167,250 190
1,100M PowerTel, Inc., 0%-12%, 2006 1,039,500 169
1,000M Qwest Communications International, Inc.,
0%-9.47%, 2007 822,500 134
1,200M RCN Corp., 0%-11%, 2008 666,000 109
1,500M Viatel, Inc., 0%-12.50%, 2008 678,750 111
750M VoiceStream Wireless Corp., 0%-11.875%, 2009 495,000 81
500M Williams Communications Group, Inc., 10.875%, 2009 491,250 80
1,400M World Access, Inc., 13.25%, 2008 1,260,000 205
--------------------------------------------------------------------------------------------------------
11,721,500 1,911
--------------------------------------------------------------------------------------------------------
Transportation--1.3%
1,000M American Commercial Lines, LLC, 10.25%, 2008 820,000 134
--------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $61,641,332) 53,591,130 8,739
--------------------------------------------------------------------------------------------------------
COMMON STOCKS--.8%
Media (Cable TV/Broadcasting)--.5%
8,636 * Echostar Communications Corp. - Class "A" 285,933 47
--------------------------------------------------------------------------------------------------------
Media (Other)--.2%
1,000 * MediaNews Group, Inc. - Class "A" 125,000 20
--------------------------------------------------------------------------------------------------------
Telecommunications--.1%
4,399 * World Access, Inc. 48,664 8
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $88,011) 459,597 75
--------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.5%
Miscellaneous
391 Day International Group, Inc., 12.25%, PIK
(cost 376,483) 290,065 47
--------------------------------------------------------------------------------------------------------
WARRANTS--.2%
Media (Cable TV/Broadcasting)--.2%
3,300 * Diva Systems Corp. (expiring 3/1/08) + 59,400 10
16,212 * Star Choice Communications, Inc. (expiring 12/15/05) + 42,556 7
--------------------------------------------------------------------------------------------------------
101,956 17
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mining/Metals--.0%
800 * Gulf State Steel Aquisition Corp. (expiring 4/15/03) + $ 8 $ --
--------------------------------------------------------------------------------------------------------
Telecommunications--.0%
1,500 * E. Spire Communications, Inc. (expiring 11/1/05) 16,500 3
1,000 * McCaw International, Ltd. (expiring 4/15/07) + 2,500 --
--------------------------------------------------------------------------------------------------------
19,000 3
--------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $2,500) 120,964 20
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.6%
$1,000M U.S. Treasury Notes, 6.125%, 2007 (cost $1,092,969) 994,375 162
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--7.5%
2,825M CSW Credit, Inc., 6.87%, 7/7/00 2,821,765 460
1,800M General Electric Capital Corp., 6.81%, 7/7/00 1,797,956 293
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $4,619,721) 4,619,721 753
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $67,821,016) 98.0% 60,075,852 9,796
Other Assets, Less Liabilities 2.0 1,253,504 204
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $61,329,356 $10,000
========================================================================================================
* Non-income producing
+ See Note 5
++ In default as to principal and/or interest.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--89.7%
United States--30.1%
21,850 Abbott Laboratories $ 973,691 $ 74
3 * Agilent Technologies, Inc. 221 --
14,800 Alcoa, Inc. 429,200 33
12,100 * America Online, Inc. 638,275 49
13,100 American Home Products Corporation 769,625 59
12,247 American International Group, Inc. 1,439,023 110
10,225 AT&T Corporation 323,366 25
19,400 * AT&T Corporation - Liberty Media Group - Class "A" 470,450 36
7,100 Caterpillar, Inc. 240,513 18
8,800 Chevron Corporation 746,350 57
33,300 * Cisco Systems, Inc. 2,116,631 162
23,437 Citigroup, Inc. 1,412,079 108
3,100 Corning, Inc. 836,612 64
13,900 CVS Corporation 556,000 42
11,807 Du Pont (E.I.) de Nemours & Company 516,556 39
18,400 Exxon Mobil Corporation 1,444,400 110
10,600 Gannett Company, Inc. 634,013 48
23,400 General Electric Company 1,240,200 95
2,600 * General Motors Corporation - Class "H" 228,150 17
10,200 Gillette Company 356,363 27
4,300 * Guidant Corporation 212,850 16
10,370 Hewlett-Packard Company 1,294,954 99
15,950 Home Depot, Inc. 796,503 61
10,300 Honeywell International, Inc. 346,981 27
12,620 Intel Corporation 1,687,136 129
8,800 International Business Machines Corporation 964,150 74
1,700 * JDS Uniphase Corporation 203,787 16
11,550 Johnson & Johnson 1,176,656 90
6,750 Kimberly-Clark Corporation 387,281 30
4,100 Lucent Technologies, Inc. 242,925 19
7,800 Marsh & McLennan Companies, Inc. 814,613 62
20,700 McDonald's Corporation 681,806 52
5,200 Merrill Lynch & Company, Inc. 598,000 46
17,100 * Microsoft Corporation 1,368,000 104
7,600 * Oracle Corporation 638,875 49
16,500 PepsiCo, Inc. 733,219 56
30,662 Pfizer, Inc. 1,471,776 112
16,814 Pharmacia Corporation 869,074 66
5,900 Praxair, Inc. 220,881 17
8,485 Procter & Gamble Company 485,766 37
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
United States (continued)
17,180 SBC Communications, Inc. $ 743,035 $ 57
8,030 Schlumberger, Ltd. 599,239 46
40,125 Southwest Airlines Company 759,867 58
8,800 * Sprint Corporation 523,600 40
14,475 State Street Corporation 1,535,255 117
16,800 Texas Instruments, Inc. 1,153,950 88
1,554 Transocean Sedco Forex, Inc. 83,042 6
12,152 * Viacom, Inc. - Class "B" 828,615 63
16,400 Wal-Mart Stores, Inc. 945,050 72
5,700 Weyerhauser Company 245,100 19
31,275 * WorldCom, Inc. 1,434,741 110
--------------------------------------------------------------------------------------------------------
39,418,445 3,011
--------------------------------------------------------------------------------------------------------
United Kingdom--11.1%
23,700 3i Group PLC 487,601 37
44,000 Abbey National PLC 526,232 40
31,900 AstraZeneca PLC 1,489,852 114
4,500 AstraZeneca PLC (ADR) 209,250 16
29,600 Barclays PLC 736,252 56
159,426 BP Amoco PLC 1,530,191 117
131,000 British Airways PLC 753,619 58
2,200 British Airways PLC (ADR) 126,500 10
40,800 British American Tobacco PLC 272,393 21
55,048 Cable & Wireless PLC 932,543 71
29,524 * Colt Telecom Group PLC 983,320 75
84,000 Invensys PLC 315,376 24
22,567 Lloyds TSB Group PLC 213,184 16
44,900 Marconi PLC 584,577 45
51,661 Prudential Corporation PLC 757,069 58
38,555 Psion PLC 372,974 28
198,200 Smith & Nephew PLC 732,134 56
28,900 SmithKline Beecham PLC 378,452 29
11,100 SmithKline Beecham PLC (ADR) 723,581 55
68,102 Standard Chartered PLC 848,510 65
345,591 Vodafone AirTouch PLC 1,396,918 107
3,300 Vodafone AirTouch PLC (ADR) 136,744 10
--------------------------------------------------------------------------------------------------------
14,507,272 1,108
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Japan--10.2%
13,000 Canon, Inc. $ 648,741 $ 50
25,000 Dai Nippon Printing Company, Ltd. 441,614 34
28,000 Fujisawa Pharmaceutical Company, Inc. 1,135,296 87
9,000 Hoya Corporation 808,090 62
8,600 Matsumotokiyoshi Company, Ltd. 903,851 68
3,000 Matsushita Communication Industrial Company, Ltd. 351,023 27
21,000 Minebea Company, Inc. 263,976 20
32,000 Mitsubishi Electric Corporation 347,205 27
21,000 NEC Corporation 660,933 50
38,000 Nikko Securities Company, Ltd. 377,109 29
76 Nippon Telegraph & Telephone Corporation 1,012,807 76
9 NTT Mobile Communications Network, Inc. 244,128 19
27,000 Omron Corporation 734,937 56
7,700 Promise Company, Ltd. 609,858 47
44,000 Ricoh Company, Ltd. 933,604 71
2,900 * Softbank Corporation 394,688 30
4,700 Sony Corporation 439,771 34
19,000 Takeda Chemical Industries, Ltd. 1,249,846 95
68,000 Toshiba Corporation 769,302 59
8,100 Uni-Charm Corporation 491,489 38
11,000 Yamanouchi Pharmaceutical Company, Ltd. 601,956 46
--------------------------------------------------------------------------------------------------------
13,420,224 1,025
--------------------------------------------------------------------------------------------------------
France--7.8%
5,390 Air Liquide SA 705,792 54
13,100 Alcatel 862,711 66
26,286 Aventis SA 1,926,369 147
7,420 AXA-Uap 1,173,614 90
8,222 Banque Nationale de Paris 794,466 61
1,344 Canal Plus 226,751 17
3,000 France Telecom SA 421,017 32
500 L'Oreal SA 434,725 33
4,000 Pinault-Printemps-Redoute SA 892,265 68
14,341 Total Fina SA - Class "B" 2,208,870 169
7,100 Vivendi SA 629,220 48
--------------------------------------------------------------------------------------------------------
10,275,800 785
--------------------------------------------------------------------------------------------------------
Netherlands--5.4%
13,000 Aegon NV 464,451 35
21,300 Fortis (NL) NV 622,550 48
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Netherlands (continued)
2,558 Heineken NV $ 156,321 $ 12
11,671 ING Groep NV 792,098 60
5,000 Koninklijke KPN NV 224,552 17
3,022 Koninklijke KPN NV (ADR) 135,801 10
37,296 Koninklijke Philips Electronics NV 1,766,146 136
23,800 Royal Dutch Petroleum Company 1,485,236 114
12,000 Royal Dutch Petroleum Company - NY Shares (ADR) 738,750 56
4,700 STMicroelectronics NV 297,358 23
12,300 * United Pan-Europe Communications NV - Class "A" (ADR) 332,100 25
--------------------------------------------------------------------------------------------------------
7,015,363 536
--------------------------------------------------------------------------------------------------------
Germany--4.3%
26,463 BASF AG 1,076,847 82
21,800 Bayerische Motoren Werke (BMW) AG 660,360 50
7,900 Deutsche Bank AG 654,302 50
7,100 * Infineon Technologies AG 564,903 43
9,192 Linde AG 367,438 28
8,400 RWE AG 283,439 22
13,660 Siemens AG 2,062,380 158
--------------------------------------------------------------------------------------------------------
5,669,669 433
--------------------------------------------------------------------------------------------------------
Spain--3.5%
18,100 Banco Popular Espanol SA 562,161 43
102,800 Banco Santander Central Hispano SA 1,088,912 84
36,500 Endesa SA 709,925 54
39,700 Endesa SA (ADR) 774,150 59
3,038 * Promotora de Informaciones SA 70,767 5
17,600 Repsol SA 351,768 27
15,567 * Telefonica SA (ADR) 997,261 76
--------------------------------------------------------------------------------------------------------
4,554,944 348
--------------------------------------------------------------------------------------------------------
Italy--2.6%
82,900 ENI SpA 480,781 37
24,689 Mediaset SpA 378,670 29
45,000 San Paolo - IMI SpA 801,917 61
105,900 Telecom Italia Mobile SpA 1,086,218 83
42,933 Telecom Italia SpA 592,640 45
--------------------------------------------------------------------------------------------------------
3,340,226 255
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Switzerland--2.4%
300 Holderbank Financiere Glarus AG $ 368,981 $ 28
1,112 Nestle AG 2,232,753 171
340 Novartis AG - Reg. Shs. 540,287 41
--------------------------------------------------------------------------------------------------------
3,142,021 240
--------------------------------------------------------------------------------------------------------
Canada--2.1%
37,700 Alcan Aluminum, Ltd. 1,171,685 89
22,600 Nortel Networks Corporation 1,548,573 119
--------------------------------------------------------------------------------------------------------
2,720,258 208
--------------------------------------------------------------------------------------------------------
Sweden--1.7%
89,890 Skandinaviska Enskilda Banken - Class "A" 1,070,973 82
55,020 Telefonaktiebolaget L.M. Ericsson - Class "B" 1,094,629 83
--------------------------------------------------------------------------------------------------------
2,165,602 165
--------------------------------------------------------------------------------------------------------
Hong Kong--1.5%
108,800 Cable & Wireless HKT, Ltd. 239,365 18
94,000 Cheung Kong Holdings, Ltd. 1,040,050 80
16,300 * PetroChina Company, Ltd. (ADR) 341,281 26
40,000 * Sun Hung Kai Properties, Ltd. 287,353 22
--------------------------------------------------------------------------------------------------------
1,908,049 146
--------------------------------------------------------------------------------------------------------
Finland--1.1%
24,440 Nokia OYJ - Class "A" 1,252,236 96
9,400 Upm-Kymmene Corporation 234,282 18
--------------------------------------------------------------------------------------------------------
1,486,518 114
--------------------------------------------------------------------------------------------------------
South Korea--.9%
3,570 Samsung Electronics 1,181,435 90
--------------------------------------------------------------------------------------------------------
Mexico--.9%
8,100 * Grupo Financiero Banamex Accival SA de CV 34,561 3
7,200 Telefonos De Mexico SA (ADR) 411,300 31
300,500 * Wal-Mart de Mexico SA de CV 705,191 54
--------------------------------------------------------------------------------------------------------
1,151,052 88
--------------------------------------------------------------------------------------------------------
Belgium--.8%
25,000 * Lernout & Hauspie Speech Products NV 1,101,562 84
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
China--.7%
26,500 * China Mobile, Ltd. $ 233,715 $ 18
31,000 * China Unicom, Ltd. (ADR) 658,750 50
--------------------------------------------------------------------------------------------------------
892,465 68
--------------------------------------------------------------------------------------------------------
Australia--.7%
16,000 News Corporation, Ltd. (ADR) 872,000 67
--------------------------------------------------------------------------------------------------------
Bermuda--.6%
5,800 * Global Crossing, Ltd. 152,613 12
14,000 Tyco International, Ltd. 663,250 50
--------------------------------------------------------------------------------------------------------
815,863 62
--------------------------------------------------------------------------------------------------------
Singapore--.5%
46,200 Overseas Chinese Banking Corporation, Ltd. 317,976 24
79,940 Overseas Union Bank, Ltd. 309,773 24
--------------------------------------------------------------------------------------------------------
627,749 48
--------------------------------------------------------------------------------------------------------
India--.3%
10,700 ICICI, Ltd. (ADR) 200,625 15
13,100 Videsh Sanchar Nigam, Ltd. (GDR)+ 185,038 14
--------------------------------------------------------------------------------------------------------
385,663 29
--------------------------------------------------------------------------------------------------------
Thailand--.2%
7,500 * Siam Cement Public Company, Ltd. 140,727 11
228,200 * Thai Farmers Bank Public Company, Ltd. 191,985 14
--------------------------------------------------------------------------------------------------------
332,712 25
--------------------------------------------------------------------------------------------------------
Ireland--.2%
36,412 Allied Irish Banks PLC 327,405 25
--------------------------------------------------------------------------------------------------------
Luxembourg--.1%
1,100 RTL Group 142,352 11
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $87,951,161) 117,454,649 8,971
--------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.1%
Germany--.1%
531 SAP AG 98,495 7
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Shares, Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Brazil--.0%
5,000 * Vale Do Rio Doce - Class "B" $ -- $ --
--------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $140,066) 98,495 7
--------------------------------------------------------------------------------------------------------
WARRANTS--0%
Thailand
1,500 * Siam Commercial Bank (expiring 12/31/02) (cost $0) 164 --
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--.2%
$ 110M U.S. Treasury Bills, 5.87%, 7/6/2000++ 109,912 8
50M U.S. Treasury Bills, 6.09%, 8/10/2000++ 49,669 4
100M U.S. Treasury Bills, 5.86%, 8/31/2000++ 99,086 8
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $258,611) 258,667 20
--------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES--6.4%
Germany
Euro 8,765M Bundesschatzanweisungen, 3.25%, 9/15/2000
(cost $8,361,262) 8,379,023 640
--------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.6%
$2,066M SBC Warburg Dillon Read, Inc. 6.60%, 7/3/00,
(collateralized by U.S. Treasury Note, due
11/15/12, valued at $2,096,262)
(cost $2,066,000) 2,066,000 158
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $98,777,100) 98.0% 128,256,998 9,796
Other Assets, Less Liabilities 2.0 2,673,250 204
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $130,930,248 $10,000
========================================================================================================
* Non-income producing
+ See Note 5
++ See Note 6
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2000
Sector diversification of the portfolio was as follows:
--------------------------------------------------------------------------
Percentage
Sector of Net Assets Value
--------------------------------------------------------------------------
<S> <C> <C>
Drugs 9.6% $ 12,542,020
Banks 8.9 11,626,732
Telephone 7.6 9,941,726
Communication Equipment 6.9 9,093,706
Media 6.9 9,020,722
Energy Sources 6.9 8,986,345
Electronics 6.5 8,459,923
Insurance 4.6 6,063,417
Retail 3.7 4,798,861
Electrical Equipment 3.3 4,352,893
Computers & Office Equipment 2.8 3,677,146
Software/Services 2.6 3,437,935
Food/Beverage/Tobacco 2.6 3,394,686
Medical Products 2.1 2,726,765
Chemicals 1.9 2,520,077
Travel & Leisure 1.8 2,321,793
Household Products 1.6 2,155,624
Metals & Minerals 1.6 2,110,592
Financial Services 1.6 2,072,568
Electric Utilities 1.3 1,767,514
Entertainment Products 1.0 1,373,376
Machinery & Manufacturing 1.0 1,271,200
Business Services .8 1,040,050
Energy Services .8 1,023,562
Automotive .5 660,360
Paper/Forest Products .4 479,382
Aerospace & Defense .3 346,981
Real Estate Companies .2 287,352
U.S. Government Obligations .2 258,667
Foreign Government and Agency Securities 6.4 8,379,023
Repurchase Agreement 1.6 2,066,000
--------------------------------------------------------------------------
Total Value of Investments 98.0 128,256,998
Other Assets, Less Liabilities 2.0 2,673,250
--------------------------------------------------------------------------
Net Assets 100.0% $130,930,248
==========================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--83.5%
Aerospace/Defense--5.4%
$ 300M Precision Castparts Corp., 8.75%, 2005 $ 303,317 $ 150
300M Raytheon Co., 6.15%, 2008 266,672 132
250M Rockwell International Corp., 8.375%, 2001 252,325 125
300M Thiokol Corp., 6.625%, 2008 273,855 135
--------------------------------------------------------------------------------------------------------
1,096,169 542
--------------------------------------------------------------------------------------------------------
Automotive--4.7%
250M DaimlerChrysler NA Holdings Corp., 8%, 2010 254,742 126
200M Goodyear Tire & Rubber Co., 8.50%, 2007 205,444 102
250M Lear Corp., 7.96%, 2005 235,224 116
270M Navistar International Corp., 8%, 2008 249,075 123
--------------------------------------------------------------------------------------------------------
944,485 467
--------------------------------------------------------------------------------------------------------
Chemicals--2.7%
250M Du Pont (E.I.) de Nemours & Co., 8.125%, 2004 258,007 127
300M Lubrizol Corp., 7.25%, 2025 287,587 143
--------------------------------------------------------------------------------------------------------
545,594 270
--------------------------------------------------------------------------------------------------------
Conglomerates--1.5%
300M Hanson Overseas BV, 7.375%, 2003 298,783 148
--------------------------------------------------------------------------------------------------------
Consumer Products--1.7%
100M Dial Corp., 6.50%, 2008 91,339 45
265M Mattel, Inc., 6%, 2003 245,877 122
--------------------------------------------------------------------------------------------------------
337,216 167
--------------------------------------------------------------------------------------------------------
Electric Utilities--6.7%
265M Consumers Energy Co., 6.375%, 2008 238,777 117
200M Emerson Electric Co., 7.875%, 2005 205,825 102
200M Kansas Gas & Electric Co., 7.60%, 2003 191,747 95
209M Niagara Mohawk Holdings, Inc., 7.625%, 2005 206,055 102
275M Northwestern Public Service Co., 7.10%, 2005 271,820 132
42M Old Dominion Electric Cooperative, 7.97%, 2002 42,127 21
200M Southwestern Electric Power Co., 7%, 2007 193,955 96
--------------------------------------------------------------------------------------------------------
1,350,306 665
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energy--4.0%
$ 315M Baroid Corp., 8%, 2003 $ 323,685 $ 160
275M Occidental Petroleum Corp., 6.40%, 2003 263,750 130
250M Phillips Petroleum Co., 7.20%, 2023 214,460 106
--------------------------------------------------------------------------------------------------------
801,895 396
--------------------------------------------------------------------------------------------------------
Entertainment/Leisure--2.1%
150M Time Warner, Inc., 6.875%, 2018 133,425 66
300M Walt Disney Co., 7.30%, 2005 300,443 148
--------------------------------------------------------------------------------------------------------
433,868 214
--------------------------------------------------------------------------------------------------------
Financial Services--9.4%
300M Bank of America Corp., 7.80%, 2010 298,910 149
300M Chemical Bank NY, 7%, 2005 295,475 146
200M Citicorp, 8%, 2003 202,380 100
200M First Union Corp., 7.70%, 2005 199,123 98
250M Fleet Capital Trust II, 7.92%, 2026 219,170 108
225M Huntington National Bank, 8%, 2010 223,295 110
250M Republic NY Corp., 7.75%, 2009 247,567 122
225M Washington Mutual, Inc., 8.25%, 2010 222,370 110
--------------------------------------------------------------------------------------------------------
1,908,290 943
--------------------------------------------------------------------------------------------------------
Food/Beverages/Tobacco--5.5%
250M Anheuser-Busch Cos., Inc., 7%, 2005 246,140 122
225M Coca-Cola Enterprises, Inc., 7.875%, 2002 227,740 113
300M Hershey Foods Corp., 6.70%, 2005 294,733 145
275M Pepsi Bottling Group, Inc., 7%, 2029 247,437 122
100M Philip Morris Cos., Inc., 7.125%, 2002 98,260 49
--------------------------------------------------------------------------------------------------------
1,114,310 551
--------------------------------------------------------------------------------------------------------
Gas Transmission--2.9%
300M Columbia Energy Group, 6.80%, 2005 289,497 143
300M Enron Corp., 7.125%, 2007 290,207 143
--------------------------------------------------------------------------------------------------------
579,704 286
--------------------------------------------------------------------------------------------------------
Healthcare--3.9%
275M Johnson & Johnson, 6.625%, 2009 266,565 132
250M Tenet Healthcare Corp., 8.625%, 2007 238,750 118
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Healthcare (continued)
$ 300M Warner-Lambert Co., 6%, 2008 $ 276,564 $ 136
--------------------------------------------------------------------------------------------------------
781,879 386
--------------------------------------------------------------------------------------------------------
Information Technology/Office Equipment--1.2%
275M Xerox Corp., 7.20%, 2016 246,155 122
--------------------------------------------------------------------------------------------------------
Investment/Finance Companies--5.7%
300M Associates Corp. of North America, 7.875%, 2001 301,370 149
250M Ford Motor Credit Co., 7.50%, 2005 248,873 123
300M General Electric Capital Corp., 7.875%, 2006 308,780 153
300M General Motors Acceptance Corp., 6.625%, 2005 287,704 142
--------------------------------------------------------------------------------------------------------
1,146,727 567
--------------------------------------------------------------------------------------------------------
Media--5.3%
250M Cox Enterprises, Inc., 8%, 2007 + 248,093 123
300M New York Times Co., Inc., 7.625%, 2005 307,949 152
250M News America Holdings, Inc., 8.50%, 2005 256,510 127
300M PanAmSat Corp., 6.375%, 2008 267,624 132
--------------------------------------------------------------------------------------------------------
1,080,176 534
--------------------------------------------------------------------------------------------------------
Miscellaneous--.8%
200M Allied Waste NA, Inc., 7.625%, 2006 175,000 86
--------------------------------------------------------------------------------------------------------
Paper/Forest Products--1.5%
300M International Paper Co., 8.125%, 2005 + 302,954 150
--------------------------------------------------------------------------------------------------------
Retail - Food/Drug--2.2%
300M Kroger Co., 7%, 2018 262,292 130
195M Safeway, Inc., 7.25%, 2004 192,918 95
--------------------------------------------------------------------------------------------------------
455,210 225
--------------------------------------------------------------------------------------------------------
Retail - General Merchandise--2.9%
300M Federated Department Stores, Inc., 7.45%, 2017 274,935 136
300M Wal-Mart Stores, Inc., 8%, 2006 312,407 154
--------------------------------------------------------------------------------------------------------
587,342 290
--------------------------------------------------------------------------------------------------------
Telecommunications--11.0%
300M Deutsche Telekom AG, 8%, 2010 303,043 150
275M Global Crossing Holdings, Ltd., 9.125%, 2006 265,375 131
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Telecommunications (continued)
$ 275M Metromedia Fiber Network, Inc., 10%, 2009 $ 272,250 $ 135
275M MetroNet Communications Corp., 0%-9.95%, 2008 219,313 108
300M New York Telephone Co., 7.25%, 2024 269,880 133
100M Pacific Bell Telephone Co., 7%, 2004 99,124 49
275M Sprint Capital Corp., 6.125%, 2008 245,418 121
250M Vodafone AirTouch PLC, 7.75%, 2010 + 248,277 123
305M WorldCom, Inc., 8.875%, 2006 314,622 156
--------------------------------------------------------------------------------------------------------
2,237,302 1,106
--------------------------------------------------------------------------------------------------------
Transportation--2.4%
200M Eletson Holdings, Inc., 9.25%, 2003 187,000 92
300M Norfolk Southern Corp., 7.35%, 2007 291,754 145
--------------------------------------------------------------------------------------------------------
478,754 237
--------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $17,499,324) 16,902,119 8,352
--------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--1.4%
Housing
335M Virginia State Housing Dev. Auth., 6.51%, 2019
(cost $288,656) 291,869 144
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--1.3%
250M Federal Home Loan Banks, 8%, 2010 (cost $250,000) 250,455 124
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--7.7%
500M U.S. Treasury Notes, 7.875%, 2004 529,375 262
1,000M U.S. Treasury Notes, 6.625%, 2007 1,020,938 504
--------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $1,545,977) 1,550,313 766
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.8%
225M Ford Motor Credit Co., 6.73%, 7/5/00 224,832 111
550M General Electric Capital Corp., 6.81%, 7/7/00 549,375 272
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $774,207) 774,207 383
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $20,358,164) 97.7% 19,768,963 9,769
Other Assets, Less Liabilities 2.3 467,777 231
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $20,236,740 $10,000
========================================================================================================
+ See Note 5
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
June 30, 2000
----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS--65.1%
Agency For International Development - Israel:
$ 570M 2/15/2007 6.55% $ 371,923 $ 144
119M 3/15/2007 6.55 77,229 30
1,513M 8/15/2007 6.53 957,466 370
1,000M 11/15/2007 6.49 624,345 241
980M 2/15/2008 6.57 598,780 231
493M Federal Judiciary Office Building,
2/15/2007 6.93 314,025 121
Federal National Mortgage Association:
525M 10/8/2007 6.71 324,820 125
719M 11/29/2007 6.71 440,890 170
558M 2/1/2008 6.89 333,694 129
1,134M 8/1/2008 6.90 655,385 253
Government Trust Certificate - Israel Trust:
307M 10/1/2007 6.80 188,994 73
6,904M 11/15/2007 6.72 4,239,587 1,636
Government Trust Certificate - Turkey Trust:
766M 11/15/2007 6.72 470,382 181
586M International Bank for Reconstruction &
Development, 8/15/2007 7.13 355,618 137
6,456M Resolution Funding Corporation,
10/15/2007 6.51 4,046,756 1,563
Tennessee Valley Authority:
1,166M 5/1/2007 7.17 720,340 278
2,600M 11/1/2007 7.11 1,557,460 601
1,000M 4/15/2008 7.17 577,463 223
----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero
Coupon Obligations (cost $17,059,152) 16,855,157 6,506
----------------------------------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--34.6%
200M Treasury Investors Growth Receipts,
11/15/2007 6.42 125,471 48
13,800M U.S. Treasury Strips, 11/15/2007 6.12 8,845,069 3,415
----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Treasury Zero Coupon Obligations
(cost $8,625,002) 8,845,069 3,463
----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $25,684,154) 99.7% 25,825,697 9,969
Other Assets, Less Liabilities 0.3 80,564 31
----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $25,906,261 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the
effective yields at June 30, 2000.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
June 30, 2000
---------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS--64.0%
Agency For International Development - Israel:
$ 1,303M 8/15/2010 6.64% $ 672,824 $ 734
495M 9/15/2010 6.63 254,304 277
Federal National Mortgage Association:
925M 8/7/2010 6.96 463,525 506
700M 10/8/2010 6.83 351,076 383
600M 11/29/2010 6.83 298,097 325
921M 2/1/2011 6.97 445,998 486
200M Government Trust Certificate - Israel
Trust, 11/15/2010 6.83 99,692 109
1,700M Government Trust Certificate - Turkey
Trust, 11/15/2010 6.83 847,380 924
Resolution Funding Corporation:
650M 10/15/2010 6.63 332,240 362
2,998M 1/15/2011 6.64 1,506,198 1,644
1,250M Tennessee Valley Authority, 11/1/2010 7.23 599,935 654
---------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero
Coupon Obligations (cost $5,989,091) 5,871,269 6,404
---------------------------------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--36.0%
6,230M U.S. Treasury Strips, 11/15/2010
(cost $3,168,825) 6.23 3,298,168 3,598
---------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $9,157,916) 100.0% 9,169,437 10,002
Excess of Liabilities Over Other Assets .0 (1,747) (2)
---------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,167,690 $10,000
=====================================================================================================================
+ The effective yields shown for the zero coupon obligations are the
effective yields at June 30, 2000.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2015 FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS--54.6%
$ 300M Agency For International Development -
Israel, 3/15/2016 6.72% $ 106,163 $ 652
550M Federal Home Loan Mortgage Corporation,
3/15/2015 7.05 198,612 1,219
Federal National Mortgage Association:
150M 2/12/2015 7.05 54,462 334
156M 8/12/2015 7.05 54,756 336
300M 9/23/2015 6.95 105,969 650
210M Government Trust Certificate - Turkey
Trust, 5/15/2015 6.91 76,489 469
200M International Bank for Reconstruction &
Development, 2/15/2015 7.35 69,565 427
Resolution Funding Corporation:
300M 10/15/2015 6.70 109,458 672
320M 1/15/2016 6.72 114,569 703
---------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero
Coupon Obligations (cost $881,372) 890,043 5,462
---------------------------------------------------------------------------------------------------------------------
U.S. TREASURY ZERO COUPON OBLIGATIONS--38.8%
1,635M U.S. Treasury Strips, 11/15/2015
(cost $579,982) 6.29 631,247 3,874
---------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $1,461,354) 93.4% 1,521,290 9,336
Other Assets, Less Liabilities 6.6 108,155 664
---------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,629,445 $10,000
=====================================================================================================================
+ The effective yields shown for the zero coupon obligations are
the effective yields at June 30, 2000.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS LIFE UTILITIES FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--94.3%
Communication Services--44.7%
15,100 * Allegiance Telecom, Inc. $ 966,400 $ 122
19,500 ALLTEL Corporation 1,207,781 152
33,800 * AT&T Canada, Inc. - Class "B" 1,121,738 141
18,300 AT&T Corporation 578,737 73
30,800 Bell Atlantic Corporation 1,565,025 197
31,900 BellSouth Corporation 1,359,738 171
64,791 * Broadwing, Inc. 1,680,516 212
17,900 Cable & Wireless PLC (ADR) 896,119 113
41,475 CenturyTel, Inc. 1,192,406 150
27,000 * FLAG Telecom Holdings, Ltd. 401,625 51
17,400 * Focal Communications Corporation 622,050 78
60,555 * Global Crossing, Ltd. 1,593,353 201
61,100 * Global TeleSystems, Inc. 737,019 93
11,900 GTE Corporation 740,775 93
40,000 * ICG Communications, Inc. 882,500 111
73,800 * McLeodUSA, Inc. - Class "A" 1,526,738 192
37,684 * Metromedia Fiber Network, Inc. 1,495,584 188
14,341 * MGC Communications, Inc. 859,564 108
31,397 * NEXTLINK Communications, Inc. - Class "A" 1,191,124 150
30,300 * Primus Telecommunications Group, Inc. 753,712 95
34,822 * Qwest Communications International, Inc. 1,730,218 218
32,920 Royal PTT Nederland NV 1,479,342 186
54,000 SBC Communications, Inc. 2,335,500 295
30,400 Sprint Corporation 1,550,400 195
13,600 Telephone & Data Systems, Inc. 1,363,400 172
20,800 US West, Inc. 1,783,600 225
35,924 * Viatel, Inc. 1,026,079 129
12,900 Vodafone AirTouch PLC (ADR) 534,544 67
7,600 * Western Wireless Corporation - Class "A" 414,200 52
40,929 * WorldCom, Inc. 1,877,618 237
--------------------------------------------------------------------------------------------------------
35,467,405 4,467
--------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--1.2%
18,100 Health Care Property Investors, Inc. 493,225 62
27,900 Healthcare Realty Trust, Inc. 476,044 60
--------------------------------------------------------------------------------------------------------
969,269 122
--------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utilities--48.4%
79,655 Avista Corporation $ 1,388,984 $ 175
92,800 * Azurix Corporation 725,000 91
28,000 Cascade Natural Gas Corporation 467,250 59
40,900 CMS Energy Corporation 904,912 114
27,100 Coastal Corporation 1,649,712 208
54,100 Conectiv, Inc. - Class "A" 841,931 106
35,500 CP&L Energy, Inc. 1,133,781 143
31,050 DQE, Inc. 1,228,416 155
24,500 Duke Energy Corporation 1,381,187 174
43,775 Dynegy, Inc. - Class "A" 2,990,380 377
40,100 Enron Corporation 2,586,450 326
8,800 FPL Group, Inc. 435,600 55
41,200 IPALCO Enterprises, Inc. 829,150 104
53,900 Kansas City Power & Light Company 1,212,750 153
44,400 MDU Resources Group, Inc. 960,150 121
19,600 Midcoast Energy Resources, Inc. 308,700 39
37,800 Montana Power Company 1,334,812 168
14,300 National Fuel Gas Company 697,125 88
37,300 New Century Energies, Inc. 1,119,000 141
14,500 New Jersey Resources Corporation 551,906 70
82,400 * Niagara Mohawk Holdings, Inc. 1,148,450 145
16,800 NICOR, Inc. 548,100 69
43,200 Northeast Utilities 939,600 118
19,859 NSTAR 808,013 102
56,000 OGE Energy Corporation 1,036,000 130
24,200 ONEOK, Inc. 627,688 79
17,100 Peoples Energy Corporation 553,613 70
58,000 Potomac Electric Power Company 1,450,000 183
39,800 Questar Corporation 771,125 97
27,500 Reliant Energy, Inc. 812,969 102
33,306 SCANA Corporation 803,507 101
24,018 ScottishPower PLC (ADR) 803,102 101
68,124 Sierra Pacific Resources 855,808 108
70,000 UtiliCorp United, Inc. 1,391,250 175
4,800 Washington Gas Light Company 115,500 15
52,900 Western Resources, Inc. 819,950 103
53,000 Williams Companies, Inc. 2,209,438 278
--------------------------------------------------------------------------------------------------------
38,441,309 4,843
--------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $62,057,669) 74,877,983 9,432
--------------------------------------------------------------------------------------------------------
<CAPTION>
Portfolio of Investments (continued)
FIRST INVESTORS LIFE UTILITIES FUND
June 30, 2000
--------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONVERTIBLE PREFERRED STOCKS--.5%
Communication Services
7,400 MGC Communications, Inc., 7.25%, PIK
(cost $331,788) $ 384,800 $ 48
--------------------------------------------------------------------------------------------------------
CORPORATE BONDS--.2%
Utilities
$ 200M NorthWestern Corporation, 7.10%, 2005
(cost $195,311) 197,688 25
--------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.2%
1,700M Ford Motor Credit Co., 6.56%, 7/5/00 1,698,759 214
1,600M Ford Motor Credit Co., 6.72%, 7/5/00 1,598,804 201
--------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $3,297,563) 3,297,563 415
--------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $65,882,331) 99.2% 78,758,034 9,920
Other Assets, Less Liabilities .8 632,286 80
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $79,390,320 $10,000
========================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
This page intentionally left blank.
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
June 30, 2000
--------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT
--------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities:
At identified cost $184,532,000 $8,779,143
============= =============
At value (Note 1A) $286,380,008 $8,779,143
Cash 233,818 31,518
Receivables:
Investment securities sold 5,742,509 --
Interest and dividends 89,864 54,856
Trust shares sold 482,571 --
------------- -------------
Total Assets 292,928,770 8,865,517
------------- -------------
Liabilities
Payables:
Investment securities purchased 1,461,179 200,000
Trust shares redeemed 148,541 370,128
Dividend payable -- 40,816
Accrued advisory fees 178,595 4,104
Accrued expenses 151 9,646
------------- -------------
Total Liabilities 1,788,466 624,694
------------- -------------
Net Assets $291,140,304 $8,240,823
============= =============
Net Assets Consist of:
Capital paid in $179,826,388 $8,240,823
Undistributed net investment income
(deficit) 35,285 --
Accumulated net realized gain (loss) on
investments 9,430,623 --
Net unrealized appreciation (depreciation)
of investments 101,848,008 --
------------- -------------
Total $291,140,304 $8,240,823
============= =============
Shares of beneficial interest outstanding
(Note 2) 9,400,944 8,240,823
============= =============
Net asset value, offering and redemption price
per share (Net assets divided by shares
outstanding) $30.97 $1.00
------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (continued)
FIRST INVESTORS LIFE SERIES FUND
June 30, 2000
-------------------------------------------------------------------------------------------------------------------------
FOCUSED
DISCOVERY EQUITY GOVERNMENT GROWTH HIGH YIELD
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $125,861,423 $6,514,911 $10,867,030 $192,553,161 $67,821,016
============= ============= ============= ============= =============
At value (Note 1A) $161,890,253 $6,855,267 $10,677,194 $292,987,342 $60,075,852
Cash 482,202 77,799 539,850 126,631 164,402
Receivables:
Investment securities sold 3,059,549 753,383 -- 1,315,754 --
Interest and dividends 17,229 60 103,830 93,099 1,399,842
Trust shares sold 344,375 92,490 834 428,278 65,576
------------- ------------- ------------- ------------- -------------
Total Assets 165,793,608 7,778,999 11,321,708 294,951,104 61,705,672
------------- ------------- ------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased 468,160 238,399 446,718 1,403,939 200,000
Trust shares redeemed 23,768 -- 11,255 66,971 125,678
Dividend payable -- -- -- -- --
Accrued advisory fees 99,769 4,327 5,297 176,164 37,644
Accrued expenses 7,307 790 3,837 10,202 12,994
------------- ------------- ------------- ------------- -------------
Total Liabilities 599,004 243,516 467,107 1,657,276 376,316
------------- ------------- ------------- ------------- -------------
Net Assets $165,194,604 $7,535,483 $10,854,601 $293,293,828 $61,329,356
============= ============= ============= ============= =============
Net Assets Consist of:
Capital paid in $120,918,350 $7,311,590 $11,519,012 $175,479,426 $66,613,529
Undistributed net investment income
(deficit) (228,835) (2,769) 377,223 (19,415) 3,170,421
Accumulated net realized gain (loss) on
investments 8,476,259 (113,694) (851,798) 17,399,636 (709,430)
Net unrealized appreciation (depreciation)
of investments 36,028,830 340,356 (189,836) 100,434,181 (7,745,164)
------------- ------------- ------------- ------------- -------------
Total $165,194,604 $7,535,483 $10,854,601 $293,293,828 $61,329,356
============= ============= ============= ============= =============
Shares of beneficial interest outstanding
(Note 2) 5,039,024 727,068 1,138,985 6,857,081 6,161,537
============= ============= ============= ============= =============
Net asset value, offering and redemption price
per share (Net assets divided by shares
outstanding) $32.78 $10.36 $9.53 $42.77 $9.95
------------- ------------- ------------- ------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (continued)
FIRST INVESTORS LIFE SERIES FUND
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT
SECURITIES GRADE
--------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in securities:
At identified cost $ 98,777,100 $20,358,164
============= =============
At value (Note 1A) $128,256,998 $19,768,963
Cash 203,967 142,448
Receivables:
Investment securities sold 3,877,278 250,587
Interest and dividends 440,472 366,415
Trust shares sold 206,209 29,516
Variation margin (Note 6) 29,670 --
------------- -------------
Total Assets 133,014,594 20,557,929
------------- -------------
Liabilities
Payables:
Investment securities purchased 1,825,154 298,971
Trust shares redeemed 116,970 9,378
Forward currency contracts (Note 6) 20,925 --
Accrued advisory fees 80,026 9,895
Accrued expenses 41,271 2,945
------------- -------------
Total Liabilities 2,084,346 321,189
------------- -------------
Net Assets $130,930,248 $20,236,740
============= =============
Net Assets Consist of:
Capital paid in $ 94,162,497 $20,670,399
Undistributed net investment income 480,753 691,789
Accumulated net realized gain (loss)
on investments, futures contracts and
foreign currency transactions 6,795,656 (536,247)
Net unrealized appreciation (depreciation)
of investments, futures contracts and
foreign currency transactions 29,491,342 (589,201)
------------- -------------
Total $130,930,248 $20,236,740
============= =============
Shares of beneficial interest outstanding
(Note 2) 5,957,863 1,915,538
============= =============
Net asset value, offering and redemption price
per share (Net assets divided by shares
outstanding) $21.98 $10.56
------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (continued)
FIRST INVESTORS LIFE SERIES FUND
June 30, 2000
----------------------------------------------------------------------------------------------------------
TARGET TARGET TARGET UTILITIES
MATURITY 2007 MATURITY 2010 MATURITY 2015 INCOME
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost $25,684,154 $9,157,916 $1,461,354 $65,882,331
============= ============= ============= =============
At value (Note 1A) $25,825,697 $9,169,437 $1,521,290 $78,758,034
Cash 110,348 31,525 93,522 654,063
Receivables:
Investment securities sold -- -- -- --
Interest and dividends -- -- -- 117,703
Trust shares sold 8,482 1,700 16,415 163,590
Variation margin (Note 6) -- -- -- --
------------- ------------- ------------- -------------
Total Assets 25,944,527 9,202,662 1,631,227 79,693,390
------------- ------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased -- -- -- 246,298
Trust shares redeemed 14,534 27,190 -- --
Forward currency contracts (Note 6) -- -- -- --
Accrued advisory fees 12,553 4,511 752 50,385
Accrued expenses 11,179 3,271 1,030 6,387
------------- ------------- ------------- -------------
Total Liabilities 38,266 34,972 1,782 303,070
------------- ------------- ------------- -------------
Net Assets $25,906,261 $9,167,690 $1,629,445 $79,390,320
============= ============= ============= =============
Net Assets Consist of:
Capital paid in $25,232,930 $8,996,331 $1,539,997 $61,729,898
Undistributed net investment income 737,796 261,658 33,431 760,588
Accumulated net realized gain (loss) on
investments, futures contracts and
foreign currency transactions (206,008) (101,820) (3,919) 4,024,131
Net unrealized appreciation (depreciation) of
investments, futures contracts and
foreign currency transactions 141,543 11,521 59,936 12,875,703
------------- ------------- ------------- -------------
Total $25,906,261 $9,167,690 $1,629,445 $79,390,320
============= ============= ============= =============
Shares of beneficial interest outstanding
(Note 2) 2,176,354 761,420 154,571 4,615,316
============= ============= ============= =============
Net asset value, offering and redemption price
per share (Net assets divided by shares
outstanding) $11.90 $12.04 $10.54 $17.20
------------- ------------- ------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
CASH
BLUE CHIP MANAGEMENT
--------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Income:
Interest $ 314,900 $266,658
Dividends 815,594 --
------------- -------------
Total Income 1,130,494 266,658
------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 1,053,152 32,200
Professional fees 17,608 1,402
Custodian fees and expenses 16,345 3,527
Reports and notices to shareholders 2,362 389
Other expenses 12,529 1,456
------------- -------------
Total expenses 1,101,996 38,974
Less: Expenses waived or assumed -- (8,002)
Custodian fees paid indirectly (8,550) (895)
------------- -------------
Net expenses 1,093,446 30,077
------------- -------------
Net investment income (loss) 37,048 236,581
------------- -------------
Realized and Unrealized Gain (Loss) on
Investments (Note 3):
Net realized gain (loss) on investments 9,450,924 --
Net unrealized appreciation (depreciation)
of investments (1,983,414) --
------------- -------------
Net gain (loss) on investments 7,467,510 --
------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $7,504,558 $236,581
============= =============
(a) See Note 1H
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations (continued)
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 2000
---------------------------------------------------------------------------------------------------------------------------
FOCUSED
DISCOVERY EQUITY GOVERNMENT GROWTH HIGH YIELD
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Interest $ 273,619 $ 12,921 $415,097 $ 293,600 $3,405,677
Dividends 139,729 4,570 -- 777,566 25,925(a)
------------- ------------- ------------- ------------- -------------
Total Income 413,348 17,491 415,097 1,071,166 3,431,602
------------- ------------- ------------- ------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 601,500 19,132 39,843 1,014,785 238,826
Professional fees 12,949 1,001 1,883 20,843 3,947
Custodian fees and expenses 13,704 296 2,570 28,579 6,376
Reports and notices to shareholders 7,525 44 199 9,667 2,490
Other expenses 12,250 83 3,203 21,991 10,154
------------- ------------- ------------- ------------- -------------
Total expenses 647,928 20,556 47,698 1,095,865 261,793
Less: Expenses waived or assumed -- -- (7,969) -- --
Custodian fees paid indirectly (5,745) (296) (2,362) (3,353) (3,044)
------------- ------------- ------------- ------------- -------------
Net expenses 642,183 20,260 37,367 1,092,512 258,749
------------- ------------- ------------- ------------- -------------
Net investment income (loss) (228,835) (2,769) 377,730 (21,346) 3,172,853
------------- ------------- ------------- ------------- -------------
Realized and Unrealized Gain (Loss) on
Investments (Note 3):
Net realized gain (loss) on investments 8,802,569 (84,271) (206,628) 17,868,880 (143,061)
Net unrealized appreciation (depreciation)
of investments 2,189,793 248,938 152,389 2,393,389 (3,856,495)
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments 10,992,362 164,667 (54,239) 20,262,269 (3,999,556)
------------- ------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $10,763,527 $161,898 $323,491 $20,240,923 $ (826,703)
============= ============= ============= ============= =============
(a) See Note 1H
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations (continued)
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL INVESTMENT
SECURITIES GRADE
--------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Income:
Interest $ 205,569 $758,732
Dividends 826,316(b) --
------------- -------------
Total Income 1,031,885 758,732
------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 477,922 75,365
Professional fees 8,823 3,156
Custodian fees and expenses 109,588 2,955
Reports and notices to shareholders 3,538 1,069
Other expenses 14,063 2,686
------------- -------------
Total expenses 613,934 85,231
Less: Expenses waived or assumed -- (15,073)
Custodian fees paid indirectly -- (2,917)
------------- -------------
Net expenses 613,934 67,241
------------- -------------
Net investment income 417,951 691,491
------------- -------------
Realized and Unrealized Gain (Loss) on
Investments, Futures Contracts and
Foreign Currency Transactions (Notes 3 and 6):
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions 7,091,205 (465,221)
Net unrealized appreciation (depreciation) of
investments, futures contracts and foreign
currency transactions (9,643,182) 350,106
------------- -------------
Net gain (loss) on investments, futures
contracts and foreign currency transactions (2,551,977) (115,115)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $(2,134,026) $576,376
============= =============
(a) See Note 1H
(b) Net of $99,299 foreign taxes withheld.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations (continued)
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 2000
-------------------------------------------------------------------------------------------------------------
TARGET TARGET TARGET UTILITIES
MATURITY 2007 MATURITY 2010 MATURITY 2015 INCOME
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Income:
Interest $827,219 $294,089 $ 38,444 $ 87,664
Dividends -- -- -- 946,411(a)
------------- ------------- ------------- -------------
Total Income 827,219 294,089 38,444 1,034,075
------------- ------------- ------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 93,667 33,211 4,623 291,425
Professional fees 3,662 2,579 224 6,513
Custodian fees and expenses 2,409 878 101 7,989
Reports and notices to shareholders 728 615 29 2,783
Other expenses 8,172 2,288 1,047 7,836
------------- ------------- ------------- -------------
Total expenses 108,638 39,571 6,024 316,546
Less: Expenses waived or assumed (18,734) (6,642) (925) (37,732)
Custodian fees paid indirectly (611) (827) (101) (7,147)
------------- ------------- ------------- -------------
Net expenses 89,293 32,102 4,998 271,667
------------- ------------- ------------- -------------
Net investment income 737,926 261,987 33,446 762,408
------------- ------------- ------------- -------------
Realized and Unrealized Gain (Loss) on
Investments, Futures Contracts and
Foreign Currency Transactions (Notes 3 and 6):
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions (58,432) (13,086) (3,919) 4,064,341
Net unrealized appreciation (depreciation) of
investments, futures contracts and foreign
currency transactions 705,187 411,424 92,323 (2,004,089)
------------- ------------- ------------- -------------
Net gain (loss) on investments, futures
contracts and foreign currency transactions 646,755 398,338 88,404 2,060,252
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $1,384,681 $660,325 $121,850 $2,822,660
============= ============= ============= =============
(a) See Note 1H
(b) Net of $99,299 foreign taxes withheld.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
------------------------------------------------- ----------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
---------------------------- ----------------------------
1/1/00 to 1/1/99 to 1/1/00 to 1/1/99 to
6/30/00 12/31/99 6/30/00 12/31/99
------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 37,048 $ 1,052,332 $ 236,581 $ 373,085
Net realized gain (loss) on investments 9,450,924 16,725,036 -- --
Net unrealized appreciation (depreciation)
of investments (1,983,414) 36,956,916 -- --
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations 7,504,558 54,734,284 236,581 373,085
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (1,046,930) (1,406,535) (236,581) (373,085)
Net realized gains (16,716,269) (3,358,300) -- --
------------- ------------- ------------- -------------
Total distributions (17,763,199) (4,764,835) (236,581) (373,085)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 13,178,081 23,483,446 1,449,494 6,920,626
Reinvestment of distributions 17,763,199 4,764,835 195,765 373,085
Cost of shares redeemed (4,641,981) (8,370,104) (3,422,235) (4,192,303)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share
transactions 26,299,299 19,878,177 (1,776,976) 3,101,408
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 16,040,658 69,847,626 (1,776,976) 3,101,408
Net Assets
Beginning of period 275,099,646 205,252,020 10,017,799 6,916,391
------------- ------------- ------------- -------------
End of period+ $291,140,304 $275,099,646 $8,240,823 $10,017,799
============= ============= ============= =============
+ Includes undistributed net investment
income (deficit) of $ 35,285 $ 1,045,167 $ -- $ --
============= ============= ============= =============
* Trust Shares Issued and Redeemed
Sold 422,811 851,225 1,449,494 6,920,626
Issued for distributions reinvested 566,067 186,272 195,765 373,085
Redeemed (147,658) (297,283) (3,422,235) (4,192,303)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares
outstanding 841,220 740,214 (1,776,976) 3,101,408
============= ============= ============= =============
** Commencement of operations.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
------------------------------------------------- ----------------------------------------------------------
DISCOVERY FOCUSED EQUITY
---------------------------- ----------------------------
1/1/00 to 1/1/99 to 1/1/00 to 1/1/99 to
6/30/00 12/31/99 6/30/00 12/31/99
------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ (228,835) $ (263,888) $ (2,769) $ (1,855)
Net realized gain (loss) on investments 8,802,569 17,778,995 (84,271) (29,423)
Net unrealized appreciation (depreciation)
of investments 2,189,793 14,572,652 248,938 91,418
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations 10,763,527 32,087,759 161,898 60,140
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income -- (377,623) -- --
Net realized gains (17,614,673) (437,699) -- --
------------- ------------- ------------- -------------
Total distributions (17,614,673) (815,322) -- --
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 9,021,324 9,277,546 5,538,601 1,936,584
Reinvestment of distributions 17,614,673 815,322 -- --
Cost of shares redeemed (2,320,199) (7,463,280) (161,647) (93)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share
transactions 24,315,798 2,629,588 5,376,954 1,936,491
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 17,464,652 33,902,025 5,538,852 1,996,631
Net Assets
Beginning of period 147,729,952 113,827,927 1,996,631 --
------------- ------------- ------------- -------------
End of period+ $165,194,604 $147,729,952 $7,535,483 $1,996,631
============= ============= ============= =============
+ Includes undistributed net investment
income (deficit) of $ (228,835) $ -- $ (2,769) $ --
============= ============= ============= =============
* Trust Shares Issued and Redeemed
Sold 269,653 337,310 548,301 194,745
Issued for distributions reinvested 487,266 32,810 -- --
Redeemed (68,182) (276,716) (15,969) (9)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares
outstanding 688,737 93,404 532,332 194,736
============= ============= ============= =============
** Commencement of operations.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
------------------------------------------------- ----------------------------------------------------------
GOVERNMENT GROWTH
---------------------------- ----------------------------
1/1/00 to 1/1/99 to 1/1/00 to 1/1/99 to
6/30/00 12/31/99 6/30/00 12/31/99
------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 377,730 $ 672,899 $ (21,346) $ 314,527
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions (206,628) (104,877) 17,868,880 19,501,310
Net unrealized appreciation (depreciation) of
investments, futures contracts and
currency transactions 152,389 (447,008) 2,393,389 33,554,328
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 323,491 121,014 20,240,923 53,370,165
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (721,400) (630,932) (302,458) (525,165)
Net realized gains -- -- (19,974,547) (8,683,787)
------------- ------------- ------------- -------------
Total distributions (721,400) (630,932) (20,277,005) (9,208,952)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 579,429 1,353,106 14,769,083 27,557,752
Reinvestment of distributions 721,400 630,932 20,277,005 9,208,952
Cost of shares redeemed (928,093) (1,585,411) (4,050,161) (5,497,675)
------------- ------------- ------------- -------------
Net increase from trust share transactions 372,736 398,627 30,995,927 31,269,029
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (25,173) (111,291) 30,959,845 75,430,242
Net Assets
Beginning of period 10,879,774 10,991,065 262,333,983 186,903,741
------------- ------------- ------------- -------------
End of period+ $10,854,601 $10,879,774 $293,293,828 $262,333,983
============= ============= ============= =============
+ Includes undistributed net investment
income (deficit) of $ 377,223 $ 720,893 $ (19,415) $ 304,389
============= ============= ============= =============
* Trust Shares Issued and Redeemed
Sold 61,203 135,499 355,053 743,411
Issued for distributions reinvested 77,653 64,184 507,433 269,899
Redeemed (96,604) (158,848) (97,340) (145,387)
------------- ------------- ------------- -------------
Net increase in trust shares outstanding 42,252 40,835 765,146 867,923
------------- ------------- ------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
------------------------------------------------- ----------------------------------------------------------
HIGH YIELD INTERNATIONAL SECURITIES
---------------------------- ----------------------------
1/1/00 to 1/1/99 to 1/1/00 to 1/1/99 to
6/30/00 12/31/99 6/30/00 12/31/99
------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 3,172,853 $ 6,526,478 $ 417,951 $ 788,158
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions (143,061) (566,369) 7,091,205 11,046,404
Net unrealized appreciation (depreciation) of
investments, futures contracts and
currency transactions (3,856,495) (2,750,171) (9,643,182) 17,977,373
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations (826,703) 3,209,938 (2,134,026) 29,811,935
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (6,526,280) (5,672,750) (659,072) (586,561)
Net realized gains -- (87,371) (11,402,990) (151,528)
------------- ------------- ------------- -------------
Total distributions (6,526,280) (5,760,121) (12,062,062) (738,089)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 1,173,859 4,901,483 8,310,846 9,519,344
Reinvestment of distributions 6,526,280 5,760,121 12,062,062 738,089
Cost of shares redeemed (6,541,593) (5,933,449) (2,112,765) (4,644,977)
------------- ------------- ------------- -------------
Net increase from trust share transactions 1,158,546 4,728,155 18,260,143 5,612,456
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (6,194,437) 2,177,972 4,064,055 34,686,302
Net Assets
Beginning of period 67,523,793 65,345,821 126,866,193 92,179,891
------------- ------------- ------------- -------------
End of period+ $61,329,356 $67,523,793 $130,930,248 $126,866,193
============= ============= ============= =============
+ Includes undistributed net investment
income (deficit) of $ 3,170,421 $ 6,523,848 $ 480,753 $ 721,874
============= ============= ============= =============
* Trust Shares Issued and Redeemed
Sold 114,217 444,510 365,847 458,672
Issued for distributions reinvested 646,167 539,843 532,071 39,576
Redeemed (634,260) (533,816) (92,687) (227,256)
------------- ------------- ------------- -------------
Net increase in trust shares outstanding 126,124 450,537 805,231 270,992
------------- ------------- ------------- -------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
------------------------------------------------- ----------------------------------------------------------
INVESTMENT GRADE TARGET MATURITY 2007
---------------------------- ----------------------------
1/1/00 to 1/1/99 to 1/1/00 to 1/1/99 to
6/30/00 12/31/99 6/30/00 12/31/99
------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 691,491 $ 1,318,407 $ 737,926 $ 1,412,071
Net realized loss on investments (465,221) (71,026) (58,432) (37,844)
Net unrealized appreciation (depreciation)
of investments 350,106 (1,782,681) 705,187 (3,928,595)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 576,376 (535,300) 1,384,681 (2,554,368)
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (1,316,246) (1,148,146) (1,412,041) (1,196,679)
Net realized gains -- (122,095) -- --
------------- ------------- ------------- -------------
Total distributions (1,316,246) (1,270,241) (1,412,041) (1,196,679)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 719,478 2,451,424 935,009 3,410,248
Reinvestment of distributions 1,316,246 1,270,241 1,412,041 1,196,679
Cost of shares redeemed (1,954,525) (2,529,317) (1,634,319) (2,107,583)
------------- ------------- ------------- -------------
Net increase from trust share transactions 81,199 1,192,348 712,731 2,499,344
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (658,671) (613,193) 685,371 (1,251,703)
Net Assets
Beginning of period 20,895,411 21,508,604 25,220,890 26,472,593
------------- ------------- ------------- -------------
End of period+ $20,236,740 $20,895,411 $25,906,261 $25,220,890
============= ============= ============= =============
+ Includes undistributed net investment
income of $ 691,789 $ 1,316,544 $ 737,796 $ 1,411,911
============= ============= ============= =============
* Trust Shares Issued and Redeemed
Sold 68,277 218,876 79,892 272,882
Issued for distributions reinvested 127,791 114,954 124,080 96,273
Redeemed (185,009) (226,736) (140,023) (170,841)
------------- ------------- ------------- -------------
Net increase in trust shares outstanding 11,059 107,094 63,949 198,314
============= ============= ============= =============
** Commencement of operations.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
------------------------------------------------- ----------------------------------------------------------
TARGET MATURITY 2010 TARGET MATURITY 2015
---------------------------- ----------------------------
1/1/00 to 1/1/99 to 1/1/00 to 1/1/99 to
6/30/00 12/31/99 6/30/00 12/31/99
------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 261,987 $ 494,689 $ 33,446 $ 3,730
Net realized loss on investments (13,086) (88,734) (3,919) --
Net unrealized appreciation (depreciation)
of investments 411,424 (1,517,508) 92,323 (32,387)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 660,325 (1,111,553) 121,850 (28,657)
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (494,395) (351,025) (3,745) --
Net realized gains -- -- -- --
------------- ------------- ------------- -------------
Total distributions (494,395) (351,025) (3,745) --
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 1,012,651 2,281,849 641,062 899,858
Reinvestment of distributions 494,395 351,025 3,745 --
Cost of shares redeemed (1,105,916) (1,600,065) (4,633) (35)
------------- ------------- ------------- -------------
Net increase from trust share transactions 401,130 1,032,809 640,174 899,823
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 567,060 (429,769) 758,279 871,166
Net Assets
Beginning of period 8,600,630 9,030,399 871,166 --
------------- ------------- ------------- -------------
End of period+ $9,167,690 $8,600,630 $1,629,445 $871,166
============= ============= ============= =============
+ Includes undistributed net investment
income of $ 261,658 $ 494,066 $ 33,431 $ 3,730
============= ============= ============= =============
* Trust Shares Issued and Redeemed
Sold 86,073 181,022 63,051 91,603
Issued for distributions reinvested 42,954 27,925 368 --
Redeemed (93,392) (129,451) (448) (3)
------------- ------------- ------------- -------------
Net increase in trust shares outstanding 35,635 79,496 62,971 91,600
============= ============= ============= =============
** Commencement of operations.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (continued)
FIRST INVESTORS LIFE SERIES FUND
--------------------------------------------------- --------------------------
UTILITIES INCOME
--------------------------
1/1/00 to 1/1/99 to
6/30/00 12/31/99
--------------------------------------------------- --------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets From Operations
Net investment income $ 762,408 $ 1,261,286
Net realized gain on investments 4,064,341 3,549,763
Net unrealized appreciation (depreciation)
of investments (2,004,089) 5,102,784
----------- -----------
Net increase in net assets resulting
from operations 2,822,660 9,913,833
----------- -----------
Distributions to Shareholders
Net investment income (1,243,663) (1,089,081)
Net realized gains (3,526,438) (1,669,489)
----------- -----------
Total distributions (4,770,101) (2,758,570)
----------- -----------
Trust Share Transactions*
Proceeds from shares sold 7,426,839 12,526,086
Reinvestment of distributions 4,770,101 2,758,570
Cost of shares redeemed (1,349,305) (2,381,542)
----------- -----------
Net increase from trust share transactions 10,847,635 12,903,114
----------- -----------
Net increase in net assets 8,900,194 20,058,377
Net Assets
Beginning of period 70,490,126 50,431,749
----------- -----------
End of period+ 79,390,320 70,490,126
=========== ===========
+ Includes undistributed net investment income of $ 760,588 $ 1,241,843
=========== ===========
* Trust Shares Issued and Redeemed
Sold 436,694 785,742
Issued for distributions reinvested 236,832 192,503
Redeemed (73,985) (147,855)
----------- -----------
Net increase in trust shares outstanding 599,541 830,390
=========== ===========
See notes to financial statements
</TABLE>
This page intentionally left blank.
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 an 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,
Focused Equity, Government, Growth, High Yield, International
Securities, Investment Grade, Target Maturity 2007, Target Maturity
2010, Target Maturity 2015, 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.
Focused Equity Fund seeks capital appreciation.
Government Fund seeks to achieve a significant level of current income
which is consistent with security and liquidity of principal.
Growth Fund seeks long-term capital appreciation.
High Yield Fund primarily seeks 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, Target Maturity 2010 and Target Maturity 2015 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 valued based upon quotes furnished by market makers 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 Tax--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.
Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
At December 31, 1999, capital loss carryovers were as follows:
Year Capital Loss Carryovers Expire
----------------------------------------------------
Fund Total 2002 2003 2004 2007
---------------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Focused Equity $ 29,423 $ -- $ -- $ -- $ 29,423
Government 633,029 264,105 228,020 -- 140,904
High Yield 566,369 -- -- -- 566,369
Investment Grade 71,026 -- -- -- 71,026
Target Maturity 2007 112,118 -- -- 82,126 29,992
Target Maturity 2010 88,734 -- -- -- 88,734
</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.
The International Securities Fund does not isolate that portion of gains
and losses on investment 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, 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 and Utilities Income Fund are recognized as dividend income and
recorded at the market value of the shares received. For the six months
ended June 30, 2000, the High Yield Fund and Utilities Income Fund
recognized $25,925 and $6,909, respectively, from these taxable
"pay-in-kind" distributions. Interest income and estimated expenses
are accrued daily. For the six months ended June 30, 2000, the Bank
of New York, custodian for all the Funds, except the International
Securities Fund, has provided credits in the amount of $35,848 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.
Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUND
3. Security Transactions--For the six months ended June 30, 2000,
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
------------------------------ ------------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases from Sales Purchases from Sales
---- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Blue Chip $155,199,353 $147,692,485 $ -- $ --
Discovery 71,648,551 74,226,378 -- --
Focused Equity 9,919,895 5,745,047 -- --
Government -- -- 7,567,910 7,885,373
Growth 103,121,177 95,918,488 -- --
High Yield 9,948,025 14,474,458 -- --
International Securities 81,904,103 74,690,213 -- --
Investment Grade 5,924,130 6,282,050 1,795,977 2,373,340
Target Maturity 2007 -- -- 1,473,158 2,238,631
Target Maturity 2010 -- -- 470,820 554,618
Target Maturity 2015 -- -- 949,969 174,509
Utilities Income 24,264,387 17,988,061 -- --
</TABLE>
<TABLE>
<CAPTION>
At June 30, 2000, aggregate cost and net unrealized appreciation
(depreciation) of securities for federal income tax purposes were as
follows:
Net
Gross Gross Unrealized
Aggregate Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
---- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Blue Chip $184,553,353 $105,584,517 $3,757,862 $101,826,655
Cash Management 8,779,143 -- -- --
Discovery 126,186,699 44,972,842 9,269,288 35,703,554
Focused Equity 6,515,144 435,079 94,956 340,123
Government 10,879,171 26,259 228,236 (201,977)
Growth 193,022,044 107,811,674 7,846,376 99,965,298
High Yield 67,821,016 1,003,159 8,748,323 (7,745,164)
International Securities 98,809,980 33,938,330 4,491,312 29,447,018
Investment Grade 20,358,164 85,164 674,365 (589,201)
Target Maturity 2007 25,719,612 427,514 321,429 106,085
Target Maturity 2010 9,157,916 188,584 177,063 11,521
Target Maturity 2015 1,461,354 65,548 5,612 59,936
Utilities Income 65,924,022 17,119,687 4,285,675 12,834,012
</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, 2000, total trustees fees accrued by the
Funds amounted to $29,100.
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, 2000, total
advisory fees accrued to FIMCO were $3,975,651, of which $93,515 was
waived by the investment adviser. In addition, $1,562 of expenses were
assumed by FIMCO.
Arnhold and S. Bleichroeder, Inc. serves as investment subadviser to the
Focused Equity Fund. Wellington Management Company, LLP serves as
investment subadviser to the Growth Fund and the International
Securities Fund. The subadvisers are 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, 2000, the High Yield Fund held seven 144A securities with an
aggregate value of $1,835,714 representing 3.0% of the Fund's net
assets, International Securities Fund held one 144A security with a
value of $185,038 representing .1% of the Fund's net assets and the
Investment Grade Fund held three 144A securities with an aggregate value
of $799,324 representing 3.9% of the Fund's net assets. These securities
are valued as set forth in Note 1A.
6. Forward Currency Contracts and Future Contracts--A forward currency
contract is an obligation to purchase or sell a specific currency for an
agreed-upon price at a future date. When the International Securities
Fund purchases or sells foreign securities it customarily enters into a
forward currency contract to minimize foreign exchange risk between the
trade date and the settlement date of such transactions. The
International Securities Fund could be exposed to risk if
counter-parties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably.
The International Securities Fund had the following forward currency
contracts outstanding at June 30, 2000:
Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUND
<TABLE>
<CAPTION>
Contracts to Buy Unrealized
Foreign Currency In Exchange for Settlement Date Gain (Loss)
----------------------------- --------------- ---------------- ----------
<S> <C> <C> <C>
1,206,702 Swiss Francs US$ 738,044 7/4/00 US$ 4,040
110,520 British Pounds 167,155 7/5/00 160
430,580 British Pounds 654,223 7/6/00 (2,369)
--------------- ----------
$1,559,422 $ 1,831
=============== ----------
<CAPTION>
Contracts to Sell
Foreign Currency In Exchange for Settlement Date
----------------------------- --------------- ----------------
<S> <C> <C> <C>
425,242 Euro US$ 399,983 7/3/00 (7,654)
1,585,455 Hong Kong Dollars 203,381 7/3/00 (5)
8,491,525 Japanese Yen 80,444 7/3/00 188
419,310 Euro 399,527 7/4/00 (2,424)
55,359,412 Japanese Yen 527,589 7/4/00 4,368
7,183,781 Swedish Krona 810,646 7/4/00 (8,392)
42,790,045 Japanese Yen 403,385 7/5/00 (1,039)
119,660 Swiss Francs 73,411 7/5/00 (176)
61,766 British Pounds 93,690 7/7/00 183
378,873 Euro 355,383 7/31/00 (7,805)
--------------- ----------
$3,395,427 (22,756)
=============== ----------
Net Unrealized Loss on Forward Currency Contracts $(20,925)
==========
</TABLE>
Initial margin deposits required upon entering into futures contracts
are satisfied by the segregation of specific securities or cash, and/or
by securing a standby letter of credit from a major commercial bank, as
collateral, for the account of the broker (the International Securities
Fund's agent in acquiring the futures position). During the period the
futures contract is open, changes in the value of the contract are
recognized as unrealized gains or losses by "marking to market" on a
daily basis to reflect the market value of the contract at the end of
each day's trading. Variation margin payments are made or received
depending upon whether unrealized gains or losses are incurred. When the
contract is closed, the International Securities Fund records a realized
gain or loss equal to the difference between the proceeds from (or cost
of) the closing transaction and the International Securities Fund's
basis in the contract. The International Securities Fund may purchase or
sell stock index future contracts as a hedge against changes in market
conditions. Risks of entering into futures contracts include the
possibility of an illiquid market and that a change in the value of the
contract may not correlate with changes in the securities being hedged.
At June 30, 2000, the market value of $258,667 of the U.S. Treasury
Bills was pledged to cover margin requirements for futures contracts.
Open futures contracts at June 30, 2000 were:
<TABLE>
<CAPTION>
Unrealized
Appreciation
Contracts/Delivery Month/Commitment (Depreciation)
------------------------------------ --------------
<S> <C>
15 CAC 40 Index/September 2000/Buy $(21,696)
3 DAX 30 Index/September 2000/Buy (22,635)
3 IBEX PLUS/July 2000/Buy (6,943)
2 MIB 30/September 2000/Buy 3,513
10 S&P CAN 60/September 2000/Buy 55,011
2 TSE Index/September 2000/Buy 9,302
--------------
Total Net Unrealized
Appreciation on Futures Contracts $ 16,552
==============
</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.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for a share outstanding,
total return, ratios to average net assets and other supplemental data for each period indicated.
---------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-------------------------------------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Asset
Value Net Realized Value
---------- Net and Unrealized Total from Net Net ------------
Beginning Investment Gain (Loss) on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gain Distributions Period
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
--------------
1995 $13.75 $ .26 $4.11 $4.37 $ .19 $ .95 $1.14 $16.98
1996 16.98 .22 3.31 3.53 .25 .49 .74 19.77
1997 19.77 .19 4.88 5.07 .22 .91 1.13 23.71
1998 23.71 .17 4.05 4.22 .19 1.49 1.68 26.25
1999 26.25 .12 6.38 6.50 .18 .43 .61 32.14
2000** 32.14 -- .88 .88 .12 1.93 2.05 30.97
---------------------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
--------------------
1995 $1.00 $.054 $ -- $.054 $.054 $ -- $.054 $ 1.00
1996 1.00 .049 -- .049 .049 -- .049 1.00
1997 1.00 .050 -- .050 .050 -- .050 1.00
1998 1.00 .049 -- .049 .049 -- .049 1.00
1999 1.00 .046 -- .046 .046 -- .046 1.00
2000** 1.00 .027 -- .027 .027 -- .027 1.00
---------------------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
--------------
1995 $19.86 $ .11 $4.62 $4.73 $ .06 $1.26 $1.32 $23.27
1996 23.27 .13 2.66 2.79 .11 .89 1.00 25.06
1997 25.06 .08 3.93 4.01 .14 1.16 1.30 27.77
1998 27.77 .09 .79 .88 .08 1.83 1.91 26.74
1999 26.74 (.06) 7.47 7.41 .09 .10 .19 33.96
2000** 33.96 (.05) 2.88 2.83 -- 4.01 4.01 32.78
---------------------------------------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
-------------------
11/8/99* to
12/31/99 $10.00 $(.01) $ .26 $ .25 $ -- $ -- $ -- $10.25
2000** 10.25 -- .11 .11 -- -- -- 10.36
---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
---------------
1995 $9.70 $ .66 $ .78 $1.44 $ .62 $ -- $ .62 $10.52
1996 10.52 .68 (.33) .35 .68 -- .68 10.19
1997 10.19 .72 .11 .83 .69 -- .69 10.33
1998 10.33 .66*** .08 .74 .66 -- .66 10.41
1999 10.41 .61 (.51) .10 .59 -- .59 9.92
2000** 9.92 .35 (.06) .29 .68 -- .68 9.53
---------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND
-----------
1995 $16.73 $ .18 $3.94 $4.12 $ .09 $ .29 $ .38 $20.47
1996 20.47 .18 4.68 4.86 .18 .59 .77 24.56
1997 24.56 .15 6.57 6.72 .18 1.86 2.04 29.24
1998 29.24 .10 7.69 7.79 .15 1.10 1.25 35.78
1999 35.78 .05 8.97 9.02 .10 1.64 1.74 43.06
2000** 43.06 -- 3.00 3.00 .05 3.24 3.29 42.77
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets+ Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return++ End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
--------------
1995 34.00 $ 67 .86 1.91 N/A N/A 26
1996 21.52 100 .84 1.39 N/A N/A 45
1997 26.72 154 .81 .99 N/A N/A 63
1998 18.66 205 .82 .79 N/A N/A 91
1999 25.32 275 .81 .45 N/A N/A 91
2000** 2.67 291 .78(a) .02(a) N/A N/A 54
------------------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
--------------------
1995 5.51 $ 4 .60 5.36 1.10 4.86 N/A
1996 5.00 4 .60 4.89 1.11 4.38 N/A
1997 5.08 5 .70 4.97 1.06 4.61 N/A
1998 5.02 7 .70 4.89 .99 4.60 N/A
1999 4.67 10 .70 4.61 .91 4.40 N/A
2000** 2.78 8 .70(a) 5.48(a) .90(a) 5.28(a) N/A
------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
--------------
1995 25.23 $ 51 .87 .63 N/A N/A 78
1996 12.48 71 .85 .63 N/A N/A 98
1997 16.84 100 .82 .34 N/A N/A 85
1998 3.05 114 .83 .36 N/A N/A 121
1999 27.97 148 .83 (.24) N/A N/A 109
2000** 7.24 165 .80(a) (.29)(a) N/A N/A 48
------------------------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
-------------------
11/8/99* to
12/31/99 2.50 $ 2 1.59(a) (1.39)(a) N/A N/A 12
2000** 1.07 8 .80(a) (.12)(a) N/A N/A 132
------------------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
---------------
1995 15.63 $ 10 .40 6.79 .93 6.26 198
1996 3.59 9 .60 6.75 .94 6.41 199
1997 8.61 9 .60 6.95 .92 6.63 134
1998 7.54 11 .70 6.59 .87 6.42 107
1999 1.05 11 .76 6.07 .91 5.92 69
2000** 3.08 11 .74(a) 7.03(a) .89(a) 6.88(a) 73
------------------------------------------------------------------------------------------------------------------
GROWTH FUND
-----------
1995 25.12 $ 51 .88 1.11 N/A N/A 64
1996 24.45 79 .85 .92 N/A N/A 49
1997 29.28 128 .82 .64 N/A N/A 27
1998 27.35 187 .82 .34 N/A N/A 26
1999 26.47 262 .81 .14 N/A N/A 38
2000** 7.49 293 .80(a) (.02)(a) N/A N/A 36
------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUND
---------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-------------------------------------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Asset
Value Net Realized Value
---------- Net and Unrealized Total from Net Net ------------
Beginning Investment Gain (Loss) on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gain Distributions Period
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HIGH YIELD FUND
---------------
1995 $10.58 $1.00 $ .95 $1.95 $ .96 $ -- $ .96 $11.57
1996 11.57 1.02 .35 1.37 1.01 -- 1.01 11.93
1997 11.93 .98 .41 1.39 1.02 -- 1.02 12.30
1998 12.30 1.00 (.62) .38 .98 -- .98 11.70
1999 11.70 1.09 (.56) .53 1.02 .02 1.04 11.19
2000** 11.19 .54 (.67) (.13) 1.11 -- 1.11 9.95
---------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
-----------------------------
1995 $13.51 $ .19 $2.25 $2.44 $ .12 $ .25 $ .37 $15.58
1996 15.58 .18 2.12 2.30 .19 .50 .69 17.19
1997 17.19 .18 1.26 1.44 .20 1.52 1.72 16.91
1998 16.91 .12 2.87 2.99 .16 .86 1.02 18.88
1999 18.88 .15 5.74 5.89 .12 .03 .15 24.62
2000** 24.62 .07 (.40) (.33) .13 2.18 2.31 21.98
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
---------------------
1995 $10.31 $ .67 $1.28 $1.95 $ .53 $ -- $ .53 $11.73
1996 11.73 .72 (.42) .30 .67 -- .67 11.36
1997 11.36 .74 .31 1.05 .74 -- .74 11.67
1998 11.67 .68*** .33 1.01 .71 -- .71 11.97
1999 11.97 .69 (.98) (.29) .70 .01 .71 10.97
2000** 10.97 .38 (.08) .30 .71 -- .71 10.56
---------------------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
-------------------------
4/26/95* to
12/31/95 $10.00 $ .26 $2.00 $2.26 $ -- $ -- $ -- $12.26
1996 12.26 .56 (.83) (.27) .23 .05 .28 11.71
1997 11.71 .59 .90 1.49 .57 -- .57 12.63
1998 12.63 .61 1.20 1.81 .61 -- .61 13.83
1999 13.83 .66 (1.93) (1.27) .62 -- .62 11.94
2000** 11.94 .35 .29 .64 .68 -- .68 11.90
---------------------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
-------------------------
4/30/96* to
12/31/96 $10.00 $ .26 $ .90 $1.16 $ -- $ -- $ -- $11.16
1997 11.16 .45 1.29 1.74 .20 -- .20 12.70
1998 12.70 .51 1.25 1.76 .48 .01 .49 13.97
1999 13.97 .65 (2.26) (1.61) .51 -- .51 11.85
2000** 11.85 .34 .53 .87 .68 -- .68 12.04
---------------------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2015 FUND
-------------------------
11/8/99* to
12/31/99 $10.00 $ .04 $(.53) $(.49) $ -- $ -- $ -- $ 9.51
2000** 9.51 .21 .85 1.06 .03 -- .03 10.54
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets+ Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return++ End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
HIGH YIELD FUND
---------------
1995 19.82 $ 42 .87 9.86 N/A N/A 57
1996 12.56 49 .85 9.43 N/A N/A 34
1997 12.47 60 .83 8.88 N/A N/A 40
1998 3.15 65 .83 8.93 N/A N/A 42
1999 4.95 68 .82 9.83 N/A N/A 33
2000** (1.30) 61 .82(a) 9.90(a) N/A N/A 17
------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
-----------------------------
1995 18.70 $ 41 1.02 1.42 N/A N/A 45
1996 15.23 58 1.12 1.25 N/A N/A 67
1997 9.09 74 1.13 1.15 N/A N/A 71
1998 18.18 92 1.15 .75 N/A N/A 109
1999 31.46 127 .98 .76 N/A N/A 118
2000** (1.64) 131 .96(a) .65(a) N/A N/A 60
------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
---------------------
1995 19.69 $ 16 .51 6.80 .91 6.40 26
1996 2.84 16 .60 6.47 .88 6.19 19
1997 9.81 17 .60 6.54 .87 6.27 41
1998 9.15 22 .68 5.97 .84 5.81 60
1999 (2.53) 21 .68 6.12 .83 5.97 27
2000** 2.89 20 .69(a) 6.82(a) .84(a) 6.67(a) 31
------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
-------------------------
4/26/95* to
12/31/95 22.60 $ 10 .04(a) 6.25(a) .87(a) 5.42(a) 28
1996 (2.16) 15 .60 6.05 .82 5.83 13
1997 13.38 20 .60 5.91 .82 5.69 1
1998 14.97 26 .67 5.18 .83 5.02 1
1999 (9.39) 25 .69 5.47 .84 5.32 2
2000** 5.61 26 .72(a) 5.87(a) .87(a) 5.72(a) 6
------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
-------------------------
4/30/96* to
12/31/96 11.60 $ 2 .60(a) 6.05(a) .98(a) 5.67(a) 0
1997 15.86 5 .60 5.88 .87 5.61 13
1998 14.36 9 .67 4.90 .82 4.75 0
1999 (11.73) 9 .71 5.48 .86 5.33 9
2000** 7.57 9 .74(a) 5.86(a) .89(a) 5.71(a) 5
------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2015 FUND
-------------------------
11/8/99* to
12/31/99 (4.90) $ 1 1.38(a) 4.24(a) 1.64(a) 3.98(a) 0
2000** 11.19 2 .82(a) 5.38(a) .97(a) 5.23(a) 15
------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUND
---------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
-------------------------------------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
---------------------------------------- -------------------------
Net Asset Net Asset
Value Net Realized Value
---------- Net and Unrealized Total from Net Net ------------
Beginning Investment Gain (Loss) on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gain Distributions Period
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
UTILITIES INCOME FUND
---------------------
1995 $ 9.19 $ .28 $2.46 $2.74 $ .19 $ -- $ .19 $11.74
1996 11.74 .32 .78 1.10 .27 -- .27 12.57
1997 12.57 .37 2.64 3.01 .36 .27 .63 14.95
1998 14.95 .32 1.46 1.78 .35 .55 .90 15.83
1999 15.83 .31 2.25 2.56 .33 .51 .84 17.55
2000** 17.55 .16 .65 .81 .30 .86 1.16 17.20
---------------------------------------------------------------------------------------------------------------------------------
(a) Annualized
* Commencement of operations
** For the period January 1, 2000 to June 30, 2000
*** 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, 2000 (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
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
------------------------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets+ Waived or Assumed
----------------------- -----------------------
Net Net Portfolio
Total Net Assets Investment Investment Turnover
Return++ End of Period Expenses Income Expenses Income Rate
(%) (in millions) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITIES INCOME FUND
---------------------
1995 30.26 $ 15 .41 4.23 .91 3.73 17
1996 9.57 24 .60 3.48 .86 3.22 45
1997 25.07 34 .67 3.12 .85 2.94 64
1998 12.58 50 .73 2.61 .85 2.49 105
1999 17.41 70 .65 2.12 .80 1.97 53
2000** 4.33 79 .71(a) 1.93(a) .81(a) 1.83(a) 24
------------------------------------------------------------------------------------------------------------------
</TABLE>
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 thirteen Funds
comprising First Investors Life Series Fund as of June 30, 2000, 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,
2000 and the year ended December 31, 1999 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, 2000, by correspondence
with the custodians 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 thirteen Funds comprising First
Investors Life Series Fund at June 30, 2000, and the results of their
operations for the six months then ended, changes in their net assets
and financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
July 31, 2000
FIRST INVESTORS LIFE SERIES FUND
Trustees
--------------------------------
James J. Coy (Emeritus)
Robert M. Grohol
Glenn O. Head
Kathryn S. Head
Larry R. Lavoie
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
--------------------------------
Glenn O. Head
President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Mark S. Spencer
Assistant Treasurer
Carol Lerner Brown
Assistant Secretary
The Cash Management Fund is a money market fund and seeks to maintain a
stable net asset value of $1.00 per share. However, there can be no
assurance that the Fund will be able to do so or achieve its investment
objective. An investment in the Fund is neither insured nor guaranteed
by the U.S. Government.
FIRST INVESTORS LIFE SERIES FUND
Shareholder Information
--------------------------------
Investment Adviser
First Investors Management Company, Inc.
95 Wall Street
New York, NY 10005
Subadviser (Focused Equity Fund only)
Arnhold and S. Bleichroeder, Inc.
1345 Avenue of the Americas
New York, NY 10105
Subadviser (Growth Fund and International
Securities Fund only)
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Custodian (International Securities Fund only)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Eight Penn Center Plaza
Philadelphia, PA 19103
It is the Fund's practice to mail only one copy of its annual and
semi-annual reports to any address at which more than one shareholder
with the same last name has indicated that mail is to be delivered.
Additional copies of the reports will be mailed if requested by any
shareholder in writing or by calling 800-423-4026. The Funds 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.
