LIFE SERIES FUND
BLUE CHIP
CASH MANAGEMENT
DISCOVERY
GOVERNMENT
GROWTH
HIGH YIELD
INTERNATIONAL SECURITIES
INVESTMENT GRADE
TARGET MATURITY 2007
TARGET MATURITY 2010
UTILITIES INCOME
SUPPLEMENT DATED JANUARY 28, 2000 TO
PROSPECTUS DATED APRIL 30, 1999
1. The Fund Management section beginning on page 49 is amended as follows:
All references to Dennis T. Fitzpatrick as Portfolio Manager of the
Blue Chip Fund are changed to Co-Portfolio Manager. Add Andrew
Wedeck as Co-Portfolio Manager of the Blue Chip Fund. From April
1999 to November 1999, Mr. Wedeck was a Research Analyst at Cramer
Rosenthal McGlynn. From April 1998 to March 1999, Mr. Wedeck was a
personal money management consultant for family members. From 1995
to March 1998, Mr. Wedeck was an Equity Analyst at Stechler &
Company.
2. The Prospectus is amended by deleting the last paragraph on page 49 and the
first paragraph on page 50 of the "Fund Management" section and replacing them
with the following:
As of January 1, 2000, Nancy W. Jones serves as Portfolio Manager
of the High Yield Fund. Ms. Jones also serves as Portfolio Manager
of certain other First Investors Funds. Ms. Jones joined FIMCO in
1983 as Director of Research in the High Yield Department.
As of January 1, 2000, George V. Ganter serves as Co-Portfolio
Manager of the Investment Grade Fund. Mr. Ganter also serves as
Co-Portfolio Manager of another First Investors Fund. Mr. Ganter
joined FIMCO in 1985 as a Senior Investment Analyst.
3. The Prospectus is amended by adding the following sentences after the third
sentence in the "Primary Investment Strategies" section of the Investment Grade
Fund appearing on page 32:
While the Fund primarily invests in investment grade bonds, it may
also invest to a limited extent in high yield, below investment grade
bonds (commonly called "high yield bonds" or "junk bonds"). The Fund's
investments will generally be in bonds of U.S. companies, but may
include bonds of foreign companies. The Fund's investments in foreign
companies are generally limited to bonds that are dollar-denominated
and traded in the U.S. (commonly called "Yankee bonds"). The Fund
selects bonds primarily on the basis of its own research and
investment analysis. The Fund also takes economic and interest rate
outlooks into consideration when selecting investments.
The Prospectus is amended by adding the following sentences after the fourth
sentence in the "Primary Risks" section of the Investment Grade Fund appearing
on page 32:
High yield bonds are subject to greater credit risk but slightly less
interest rate risk than investment grade bonds. High yield bonds are
also subject to greater market fluctuation.
<PAGE>
The Prospectus is amended by deleting the first paragraph of the "Principal
Investment Strategies" section of the Investment Grade Fund appearing on page 34
and replacing it with the following:
The Fund invests at least 65% of its total assets in corporate bonds
of companies that are rated investment grade by Moody's or S&P
("investment grade bonds"). These are bonds that are rated among the
four highest ratings categories by Moody's or S&P. Investment grade
bonds generally offer higher yields than Treasury securities of
comparable maturities to compensate investors for the risk of default.
While the Fund primarily invests in investment grade bonds, it may
invest up to 10% of its total assets in high yield, below investment
grade bonds. The Fund's investments will generally be in bonds of U.S.
companies, but may include bonds of foreign companies. The Fund's
investments in foreign companies are generally limited to bonds that
are dollar-denominated and traded in the U.S. (commonly called "Yankee
bonds"). The Fund's investments in Yankee bonds are limited to 10% of
its total assets.
The Prospectus is amended by deleting the paragraph entitled "Credit Risk" in
the "Principal Risks" section of the Investment Grade Fund appearing on pages
34-35 and replacing it with the following:
CREDIT RISK: This is the risk that an issuer of bonds will be unable
to pay interest or principal when due. The prices of bonds are
affected by the credit quality of the issuer. High yield bonds are
subject to greater credit risk than higher quality bonds because the
companies that issue them are not as financially strong as companies
with investment grade ratings. Changes in the financial condition of
an issuer, changes in general economic conditions, and changes in
specific economic conditions that affect a particular type of issuer
can impact the credit quality of an issuer. Such changes may weaken an
issuer's ability to make payments of principal or interest, or cause
an issuer of bonds to fail to make timely payments of interest or
principal. Lower quality bonds generally tend to be more sensitive to
these changes than higher quality bonds, but BBB-rated bonds may have
speculative characteristics as well. While credit ratings may be
available to assist in evaluating an issuer's credit quality, they may
not accurately predict an issuer's ability to make timely payment of
principal and interest.
The Prospectus is amended by adding the following paragraphs to the "Principal
Risks" section of the Investment Grade Fund appearing on pages 34-35:
LIQUIDITY RISK: High yield bonds tend to be less liquid than higher
quality bonds, meaning that it may be difficult to sell high yield
bonds at reasonable prices, particularly if there is a deterioration
in the economy or in the financial prospects of their issuers. As a
result, the prices of high yield bonds may be subject to wide price
fluctuations due to liquidity concerns.
FOREIGN ISSUERS RISK: Foreign investments involve additional risks,
including currency fluctuations, political instability, government
regulation, unfavorable political or legal developments, differences
in financial reporting standards, and less stringent regulation of
foreign securities markets.
LIFE0200
<PAGE>
FIRST INVESTORS LIFE SERIES FUND
SUPPLEMENT DATED JANUARY 28, 2000 TO
STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 30, 1999
1. The SAI is amended by deleting the fourth sentence of the first paragraph
in the Investment Strategies and Risks section for Investment Grade Fund
appearing on page 10 and replacing it with the following:
The Fund may invest up to 10% of its net assets in corporate or
government debt securities of foreign issuers which are U.S. dollar
denominated and traded in U.S. markets.
2. The SAI is amended by deleting the third sentence of the second paragraph
in the Investment Strategies and Risks section for Investment Grade Fund
appearing on page 10 and replacing it with the following:
Although up to 100% of the Fund's total assets can be invested in debt
securities rated at least Baa by Moody's or at least BBB by S&P, or
unrated debt securities deemed to be of comparable quality by the
Adviser, no more than 10% of the Fund's net assets may be invested in
debt securities rated lower than Baa by Moody's or BBB by S&P
(commonly referred to as "high yield bonds" or "junk bonds")
(including securities that have been downgraded), or if unrated,
deemed to be of comparable quality by the Adviser, or in any equity
securities of any issuer if a majority of the debt securities of such
issuer are rated lower than Baa by Moody's or BBB by S&P.
LSSAI001
