Portfolio Manager's Letter
FIRST INVESTORS BLUE CHIP SERIES
(A Series of First Investors Series Fund)
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
Gains in the equity markets in 1995 were fueled by investor confidence
in a continuing low growth, low inflation economy. Investor confidence
was bolstered by a favorable and improving interest rate environment.
Acquisition and merger activity, restructurings and announced cost
cutting plans also added to investor anticipation of continued improved
earnings throughout the year.
During 1995, the Blue Chip Series returned 34.0% on a net asset value
basis on Class A shares and 32.8% on Class B shares (first offered for
sale on January 12, 1995). The Series declared dividends from net
investment income of 19.5 cents per share on Class A shares and 15.7
cents per share on Class B shares. The Series also made a capital gains
distribution of 60.4 cents per share on both classes.
The Series was invested to take advantage of the surge in the financial,
technology and consumer non- durable sectors. The best performers were
direct beneficiaries of the favorable interest rate environment; banks
and select insurance companies such as Citicorp, AIG, Fannie Mae and
BankAmerica. Technology, spurred by continued industry automation and
general enthusiasm for new products, also performed strongly. The best
performers in the technology sector were Microsoft, Hewlett Packard,
Intel and Cisco Systems. Consumer non-durables benefited from a shift in
the second half of the year away from cyclical and growth issues. Coca
Cola, PepsiCo and Philip Morris along with a number of drug stocks
performed extremely well in 1995. The Blue Chip Series continued to
benefit from the opening of international borders worldwide by investing
in many companies with a substantial foreign presence.
Our outlook for the coming year calls for continued slow growth and low
inflation in a benign interest rate environment. Provided the economic
"soft landing" scenario continues to play out through 1996, equity
markets could continue to achieve new highs. However, unlike the year
just ended, broad sector gains may not fuel the new highs. Selectivity
may be the key to avoid getting stuck in the mud at the end of the "soft
landing".
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Patricia D. Poitra
Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS BLUE CHIP SERIES
(A Series of First Investors Series Fund)
Comparison of change in value of $10,000 investment in the First
Investors Blue Chip Series (Class A shares) and the Standard & Poor's
500 Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
BLUE CHIP GRAPH PLOTS
BLUE CHIP S & P 500
JAN 89 9,375 10,000
DEC 89 10,813 12,261
DEC 90 10,435 11,885
DEC 91 13,308 15,460
DEC 92 14,181 16,554
DEC 93 15,283 18,155
DEC 94 14,821 18,388
DEC 95 19,862 25,908
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
Class A shares N.A.V. Only S.E.C. Standardized
One Year 34.0% 25.6%
Five Years 13.7% 12.3%
Since Inception 11.3% 10.3%
Class B shares
Since Inception 32.8% 27.5%
The graph compares a $10,000 investment made in the First Investors Blue
Chip Series (Class A shares) on 1/3/89 (inception date) with a
theoretical investment in the S&P 500 Index. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses. For purposes of the graph and the
accompanying table, unless otherwise indicated, it has been assumed that
the maximum sales charge was deducted from the initial $10,000
investment in the Series and all dividends and distributions were
reinvested. Class B shares performance may be greater than or less than
that shown above based on differences in sales loads and fees paid by
shareholders investing in the different classes.
The S&P 500 Index is an unmanaged capitalization-weighted index of 500
stocks designed to measure performance of the broad domestic economy
through changes in the aggregate market value of such stocks, which
represent all major industries.
*Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93 and 12/4/89, the maximum sales charges were 6.9%
and 7.25%, respectively) and are higher than they would have been had
the sales charge not been reduced. Some or all of the expenses of the
Series were waived or assumed. If such expenses had been paid by the
Series, the Class A shares S.E.C. Standardized Average Annual Total
Return for One Year, Five Years and Since Inception would have been
25.2%, 11.8% and 9.7%, respectively. The returns for Class B shares
(first offered for sale on 1/12/95) are for the period 1/12/95 through
12/31/95. The Class B "S.E.C. Standardized" return is adjusted for the
applicable deferred sales charge (maximum of 4% in the first year).
Results represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. S&P 500 Index figures from Standard & Poor's and all
other figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT SERIES
(A Series of First Investors Series Fund)
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
The substantial decline in long-term interest rates during 1995 provided
municipal bond investors with historically high total returns. These
returns were achieved despite investor concern about tax reform; Orange
County, California's bankruptcy; and new issue supply which reached $156
billion due to a large number of refunding deals in the fourth quarter.
During 1995 First Investors Insured Intermediate Tax Exempt Series
returned 13.5% on Class A shares on a net asset value basis,
outperforming the average return on intermediate insured municipal bond
funds according to Lipper Analytical Services, Inc. Class B shares
(first offered for sale on January 12, 1995) returned 12.3% for the year
on the same basis. The large decline in long-term interest rates during
1995 provided investors with substantial capital appreciation in
addition to dividends from net investment income of 30 cents per Class A
share and 25.8 cents per Class B share. The Series' performance was
primarily attributable to two factors. First, the Series' duration, a
measurement of sensitivity to interest rates, was increased by 10% in
early 1995. Second, the Series' investment in noncallable bonds (which
appreciate in price faster than callable bonds during market rallies)
increased total return while locking in relatively high yields. As of
December 31, 1995, over 95% of the Series' assets were noncallable. The
Series remained fully invested throughout the year to maximize current
income.
Looking forward, the uncertainty of potential tax reform during the next
two years remains the main hurdle facing the tax exempt bond market.
This uncertainty continues to keep municipal bonds historically cheap to
taxable bonds. As investors recognize that major tax reform is
unlikely, municipal bonds are likely to outperform taxable bonds. Thus,
we continue to believe that municipal bonds represent an attractive
opportunity for long-term investors.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT SERIES
(A Series of First Investors Series Fund)
Comparison of change in value of $10,000 investment in the First
Investors Insured Intermediate Tax Exempt Series (Class A shares) and
the Lehman Brothers Municipal Bond Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
INSURED INTERMEDIATE GRAPH PLOTS
INS. INTERMEDIATE LEHMAN
NOV 1993 9,375 10,000
DEC 1993 9,375 10,211
DEC 1994 9,177 9,683
DEC 1995 10,416 11,373
** BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
Class A shares N.A.V. Only S.E.C. Standardized
One Year 13.5% 6.5%
Since Inception 5.2% 2.0%
S.E.C. 30-Day Yield 4.5%
Class B shares
Since Inception 12.3% 7.7%
S.E.C. 30-Day Yield 3.9%
The graph compares a $10,000 investment made in the First Investors
Insured Intermediate Tax Exempt Series (Class A shares) on 11/22/93
(inception date) with a theoretical investment in the Lehman Brothers
Municipal Bond Index. It is not possible to invest directly in this
Index. In addition, the Index does not take into account fees and
expenses or cost of insurance of the bonds held by an insured tax-exempt
bond fund. For purposes of the graph and the accompanying table, unless
otherwise indicated, it has been assumed that the maximum sales charge
was deducted from the initial $10,000 investment in the Series and all
dividends and distributions were reinvested. Class B shares performance
may be greater than or less than that shown above based on differences
in sales loads and fees paid by shareholders investing in the different
classes.
The Lehman Brothers Municipal Bond Index is a total return performance
benchmark for the long-term investment grade tax exempt bond market.
Returns and attributes for the Index are calculated semi-monthly using
approximately 21,000 municipal bonds which are priced by Muller Data
Corp.
*Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 1/12/95, the maximum sales charges was 3.5%). Some or
all of the expenses of the Series were waived or assumed. If such
expenses had been paid by the Series, the Class A shares S.E.C.
Standardized Average Annual Total Return for One Year and Since
Inception would have been 5.7% and .9%, respectively and the S.E.C. 30-
Day Yield for December 1995 would have been 4.0%. The returns For Class
B shares (first offered for sale on 1/12/95) are for the period 1/12/95
through 12/31/95. The Class B "S.E.C. Standardized" return is adjusted
for the applicable deferred sales charge (maximum of 4% in the first
year). Results represent past performance and do not indicate future
results. Investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more
or less than the original cost. Lehman Brothers Municipal Bond Index
figures from Lehman Brothers Inc. and all other figures from First
Investors Management Company, Inc.
Portfolio Manager's Letter
FIRST INVESTORS INVESTMENT GRADE SERIES
(A Series of First Investors Series Fund)
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
The investment grade corporate bond market's performance in 1995
paralleled the dramatic rise in Treasury bond prices. For the calendar
year, the Investment Grade Series returned 19.4% on a net asset value
basis on Class A shares and 18.1% on Class B shares (first offered for
sale on January 12, 1995). In comparison, the average investment grade
bond fund returned 20.1% as measured by Lipper Analytical Services, Inc.
Dividends paid from net investment income amounted to 64.3 cents per
Class A share and 54.5 cents per Class B share. The Series also
declared a capital gain distribution of .3 cents per share on both
classes.
The Investment Grade Series had a shorter duration than the average
investment grade bond fund. Duration is a measurement of interest rate
sensitivity and is an important factor in performance. We selected a
modestly shorter duration to combat the increased interest rate
volatility the market experienced toward the middle of the year. Along
with careful attention to credit quality and sector trends, this
strategy worked effectively to reduce volatility.
Selection and weighting of each sector also contributed to performance.
The Series had only a small exposure to retail companies, which as a
group experienced disappointing sales due to a slowdown in consumer
spending. Its large position in the industrial sector was positive
since it was one of the best performing portions of the investment grade
corporate bond universe. However, the underweighting of the Yankee bond
sector was a slight drag on total return as this sector was a strong
performer.
As the corporate markets' credit quality improved throughout 1995, the
Series benefitted from rating upgrades of several of its positions.
Additionally, the Series avoided companies which were downgraded into
sub-investment grade status such as Westinghouse Electric and Niagara
Mohawk. The Series did own Kmart bonds, but sold them before financial
and operating problems became apparent to the market.
Event risk continued to be a factor as acquisitions and consolidations
continued in the corporate market. Some recent examples of this
increasing trend are Lockheed Martin's $10 billion purchase of Loral
Corp. and Fleet Financial Group's $3.26 billion acquisition of National
Westminster's U.S. banking operations. In an increasingly competitive
market, firms are using these techniques to provide growth and to cut
costs in order to stay viable and strengthen their core businesses.
Certain industries, banks for example, tend to use equity financing to
accomplish acquisitions, while others have used additional debt. An
acquisition financed largely or wholly with debt subjects a company to
negative credit pressure. The Series strives to avoid companies that
increase their risk profiles in order to enhance shareholder value.
In 1996 we expect continued slow growth and low inflation, likely
resulting in additional easing by the Federal Reserve. Volatility will
probably continue if Congress and the President fail to agree on a
balanced-budget agreement. The Series will take advantage of such
market fluctuation to increase duration slightly, as we expect that
overall rates will continue to decline. We also expect to increase the
concentration of non-cyclical industries because such issues tend to
outperform in an economy with slow growth and low inflation. Our focus
on credit quality will remain at the forefront, as we attempt to predict
and avoid problem industries and credits. We view the risk/reward
tradeoff very seriously when looking at corporate bonds and believe that
it is better to err on the side of safety as opposed to stretching for
incremental yield.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Nancy W. Jones
Nancy W. Jones
Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS INVESTMENT GRADE SERIES
(A Series of First Investors Series Fund)
Comparison of change in value of $10,000 investment in the First
Investors Investment Grade Series (Class A shares), Lehman Brothers
Corporate Bond Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
INVESTMENT GRADE GRAPH PLOTS
INVESTMENT GRADE LEHMAN
FEB 91 9,375 10,000
DEC 91 10,623 17,702
DEC 92 11,501 12,719
DEC 93 12,859 14,266
DEC 94 12,265 13,705
DEC 95 14,645 16,754
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
Class A shares N.A.V. Only S.E.C. Standardized
One Year 19.4% 11.9%
Since Inception 9.6% 8.1%
S.E.C. 30-Day Yield 5.0%
Class B shares
Since Inception 18.1% 13.3%
S.E.C. 30-Day Yield 4.7%
The graph compares a $10,000 investment made in the First Investors
Investment Grade Series (Class A shares) on 2/19/91 (inception date)
with a theoretical investment in the Lehman Brothers Corporate Bond
Index. It is not possible to invest directly in this Index. In addition,
the Index does not take into account fees and expenses. For purposes of
the graph and the accompanying table, unless otherwise indicated, it has
been assumed that the maximum sales charge was deducted from the initial
$10,000 investment in the Series and all dividends and distributions
were reinvested. Class B shares performance may be greater than or less
than that shown above based on differences in sales loads and fees paid
by shareholders investing in the different classes.
The Lehman Brothers Corporate Bond Index includes all publicly issued,
fixed rate, nonconvertible investment grade dollar-denominated, S.E.C.-
registered corporate debt. All issues have at least one year to maturity
and an outstanding par value of at least $100 million.
*Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93, the maximum sales charge was 6.9%) and are
higher than they would have been had the sales charge not been reduced.
Some or all of the expenses of the Series were waived or assumed. If
such expenses had been paid by the Series, the Class A shares S.E.C.
Standardized Average Annual Total Return for One Year and Since
Inception would have been 4.9% and 5.4%, respectively and the Class A
shares S.E.C. 30-Day Yield for December 1995 would have been 4.7%. The
returns for Class B shares (first offered for sale on 1/12/95) are for
the period 1/12/95 through 12/31/95. The Class B "S.E.C. Standardized"
return is adjusted for the applicable deferred sales charge (maximum of
4% in the first year). Results represent past performance and do not
indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Corporate Bond Index figures from Lehman Brothers Inc. and all other
figures from First Investors Management Company, Inc.
Portfolio Manager's Letter
FIRST INVESTORS SPECIAL SITUATIONS SERIES
(A Series of First Investors Series Fund)
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
Surging corporate profits and falling interest rates drove the equity
markets to new highs in 1995. For the year, the Special Situations
Series returned 23.9% on a net asset value basis on Class A shares and
23.4% on Class B shares (first offered for sale on January 12, 1995).
The Series made a capital gains distribution of 73.1 cents per share on
both classes. Two sectors fueled the robust stock market performance:
technology and financial. While technology stocks turned choppy in July
and continued to be volatile throughout the year financial issues
remained strong, thanks to dramatically falling interest rates.
Your Series' performance was positively impacted by technology holdings
in various subsectors such as semiconductor equipment, non-commodity
semiconductor chips, FPGAs and database stocks. These stocks were the
beneficiaries of a new technology standard resulting in strong demand
and component shortages. When semiconductor related issues flagged in
the second half of the year, Internet stocks such as Cisco Systems,
Ascend Communications and NETCOM On-Line Communication Services came on
strong. Healthcare information systems stocks such as HCIA, Inc. and IDX
Systems also added to your Series' performance. This category was
supported by the medical community's recognition of the need to become
cost effective providers of healthcare.
Overall, however, the healthcare sector underperformed. Securities in
this sector, which we continue to own, include Value Health, Quantum
Health Resources, AHI Healthcare Systems and Future Healthcare. In the
communications sector, fourth quarter reports of weak cellular handset
sales put pressure on the stocks of Motorola, Nokia and L.M. Ericsson.
Relatively high cash holdings in your Series also hurt performance.
Our outlook for the coming year calls for continued slow growth and low
inflation in a benign interest rate environment. Provided the economic
"soft landing" scenario continues to play out through 1996, equity
markets could continue to achieve new highs. However, unlike the year
just ended, broad sector gains may not fuel the new highs. Selectivity
may be the key to avoid getting stuck in the mud at the end of the "soft
landing".
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Patricia D. Poitra
Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS SPECIAL SITUATIONS SERIES
(A Series of First Investors Series Fund)
Comparison of change in value of $10,000 investment in the First
Investors Special Situations Series (Class A shares), the Lipper Small
Company Growth Fund Index and the Russell 2000 Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
SPECIAL SITUATIONS GRAPH PLOTS
SPECIAL SITUATIONS LIPPER RUSSELL
SEP 90 9,375 10,000 10,000
DEC 90 9,741 10,500 10,754
DEC 91 14,657 15,326 16,214
DEC 92 17,186 18,155 17,853
DEC 93 20,714 21,606 20,776
DEC 94 19,955 20,919 20,624
DEC 95 24,730 26,401 27,106
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
Class A shares N.A.V. Only S.E.C. Standardized
One Year 23.9% 16.2%
Five Years 20.5% 18.9%
Since Inception 20.1% 18.7%
Class B shares
Since Inception 23.4% 18.5%
The graph compares a $10,000 investment made in the First Investors
Special Situations Series (Class A shares) on 9/18/90 (inception date)
with theoretical investments in the Lipper Small Company Growth Fund
Index and the Russell 2000 Index. It is not possible to invest directly
in these Indices. In addition, these Indices do not take into account
fees and expenses. For purposes of the graph and the accompanying table,
unless otherwise indicated, it has been assumed that the maximum sales
charge was deducted from the initial $10,000 investment in the Series
and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown above based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
The Lipper Small Company Growth Fund Index is a net value weighted index
of the 30 largest small company growth funds. It is calculated with
adjustments for income dividends and capital gains distributions as of
the ex-dividend dates. The Russell 2000 Index consists of the smallest
2,000 companies in the Russell 3000 Index (which represents
approximately 98% of the investable U.S. equity market). The Russell
2000 Index is an unmanaged index generally considered as the premier
measure of small capitalization stocks.
*Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93, the maximum sales charge was 6.9%) and are
higher than they would have been had the sales charge not been reduced.
Some or all of the expenses of the Series were waived or assumed. If
such expenses had been paid by the Series, the Class A shares "S.E.C.
Standardized" Average Annual Total Return for One Year, Five Years and
Since Inception would have been 15.7%, 18.1% and 17.9%, respectively.
The returns for Class B shares (first offered for sale on 1/12/95) are
for the period 1/12/95 through 12/31/95. The Class B "S.E.C.
Standardized" return is adjusted for the applicable deferred sales
charge (maximum of 4% in the first year). Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Lipper Small Company Growth Fund Index figures from Lipper Analytical
Services, Inc., Russell 2000 Index figures from Frank Russell and
Company and all other figures from First Investors Management Company,
Inc.
Portfolio Manager's Letter
FIRST INVESTORS TOTAL RETURN SERIES
(A Series of First Investors Series Fund)
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets.
The broad stock market averages repeatedly closed at record highs, and
bond prices surged as long-term interest rates fell almost two percent.
Several general factors contributed to this strong performance. First,
the U.S. economy grew at a moderate pace throughout the year. Second,
the rate of inflation declined, reaching its lowest level since the
1960s. Third, the Federal Reserve began lowering short-term interest
rates during the second half of the year. Finally, during the fourth
quarter, Congress and the President appeared close to reaching an
agreement to eliminate the Federal budget deficit over the next seven
years.
During 1995, the Total Return Series returned 26.7% on a net asset value
basis on Class A shares and 25.7% on Class B shares (first offered for
sale on January 12, 1995). The Series declared dividends from net
investment income of 36.5 cents per share on Class A shares and 32.5
cents per share on Class B shares as well as a capital gain distribution
of 43.7 cents per share on both classes.
The Series benefited from the strong performance of U.S. bond and stock
markets. Long-term bond yields fell almost 200 basis points (2%) as
economic growth moderated and inflation expectations declined. The
stock market responded positively to falling interest rates, strong
corporate earnings, record merger and acquisition activity, and
substantial cash flow into
mutual funds.
At the beginning of the year, the Series had 51% of its assets in
equities, 21% in corporate bonds and 28% in cash. As the bond market
rally intensified in January, the Series began to shift 15% of its
assets from cash to Treasury bonds. This asset allocation allowed the
Series to participate more fully throughout 1995 in the bond market's
rally. After the shift from cash to bonds, the Series' asset allocation
remained generally constant, ending the year with 51% of assets in
stocks, 42% in bonds, and 7% in cash.
Looking forward, the outlook for the financial markets appears benign.
The bond market should be supported by slowing economic growth, low
inflation, and continued Federal Reserve easing of monetary policy.
While a slowing economy could concern the stock market, lower interest
rates and strong demand for equities should result in annual returns
close to historical averages.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ Clark D. Wagner
Clark D. Wagner
Portfolio Manager
January 31, 1996
Cumulative Performance Information
FIRST INVESTORS TOTAL RETURN SERIES
(A Series of First Investors Series Fund)
Comparison of change in value of $10,000 investment in the First
Investors Total Return Series (Class A shares), Lehman Brothers
Government/Corporate Bond Index and the Standard & Poor's 500 Index.
As of December 31, 1995
[worm chart omitted the following figures were used to create this chart]
The following table is the source data for the line chart which appears at
this point in the printed document. This table is not part of the original
printed document and is shown for reference only. The same is also true
for this descriptive paragraph.
TOTAL RETURN GRAPH PLOTS
TOTAL RETURN LEHMAN S&P 500
APR 90 9,375 10,000 10,000
DEC 90 9,543 10,829 10,242
DEC 91 11,606 12,576 13,367
DEC 92 11,489 13,528 14,326
DEC 93 12,314 15,024 15,727
DEC 94 11,879 14,497 15,929
DEC 95 15,065 17,286 22,443
**BOXED INFORMATION INSIDE GRAPH
Average Annual Total Return*
Class A shares N.A.V. Only S.E.C. Standardized
One Year 26.8% 18.9%
Five Years 9.6% 8.2%
Since Inception 8.7% 7.5%
Class B shares
Since Inception 25.7% 20.8%
The graph compares a $10,000 investment made in the First Investors
Total Return Series (Class A shares) on 4/24/90 (inception date) with a
theoretical investment in the Lehman Brothers Government/Corporate Bond
Index and the S&P 500 Index. It is not possible to invest directly in
these Indices. In addition, these Indices do not take into account fees
and expenses. For purposes of the graph and the accompanying table,
unless otherwise indicated, it has been assumed that the maximum sales
charge was deducted from the initial $10,000 investment in the Series
and all dividends and distributions were reinvested. Class B shares
performance may be greater than or less than that shown above based on
differences in sales loads and fees paid by shareholders investing in
the different classes.
The Lehman Brothers Government/Corporate Bond Index combines the Lehman
Brothers Government Bond Index with the Lehman Brothers Corporate Bond
Index. The Government Bond Index is made up of the Treasury Bond Index
(all public obligations of the U.S. Treasury) and the Agency Bond Index
(all publicly issued debt of U.S. Government agencies and quasi-federal
corporations, and corporate debt guaranteed by the U.S. Government). The
Corporate Bond Index includes all publicly issued, fixed rate,
nonconvertible investment grade dollar-denominated, S.E.C.-registered
corporate debt. The S&P 500 Index is an unmanaged capitalization-
weighted index of 500 stocks designed to measure performance of the
broad domestic economy through changes in the aggregate market value of
such stocks, which represent all major industries.
*Average Annual Total Return figures (for the period ended 12/31/95)
include the reinvestment of all dividends and distributions. "N.A.V.
Only" returns are calculated without sales charges. The Class A "S.E.C.
Standardized" returns shown are based on the maximum sales charge of
6.25% (prior to 7/1/93, the maximum sales charge was 6.9%) and are
higher than they would have been had the sales charge not been reduced.
Some or all of the expenses of the Series were waived or assumed. If
such expenses had been paid by the Series, the Class A shares S.E.C.
Standardized Average Annual Total Return for One Year, Five Years and
Since Inception would have been 18.4%, 7.4% and 6.8%, respectively. The
returns for Class B shares (first offered for sale on 1/12/95) are for
the period 1/12/95 through 12/31/95. The Class B "S.E.C. Standardized"
return is adjusted for the applicable deferred sales charge (maximum of
4% in the first year). Results represent past performance and do not
indicate future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost. Lehman Brothers
Government/Corporate Bond Index figures from Lehman Brothers Inc., S&P
500 Index figures from Standard & Poor's and all other figures from
First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS BLUE CHIP SERIES
(A Series of First Investors Series Fund)
December 31, 1995
<TABLE>
<CAPTION>
- ---------------- ----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--94.7%
Basic Industry--4.0%
16,300 Alumax, Inc. $ 499,188 $ 28
14,900 Dow Chemical Company 1,048,588 60
20,200 Du Pont (E.I.) De Nemours & Company 1,411,475 80
23,700 Freeport McMoran Copper & Gold, Inc. - Class "B" 666,562 38
18,200 IMC Global, Inc. 743,925 42
10,800 James River Corporation of Virginia 260,550 15
10,400 Mead Corporation 543,400 31
16,100 Minnesota Mining & Manufacturing Company 1,066,625 61
12,100 Sigma-Aldrich Corporation 598,950 34
4,100 Temple-Inland, Inc. 180,913 10
- ------------------ ----------------------------------------------------------------------------------------------------------
7,020,176 399
- ------------------ ----------------------------------------------------------------------------------------------------------
Capital Goods--7.6%
14,100 Boeing Company 1,105,087 63
8,000 Browning-Ferris Industries, Inc. 236,000 13
16,500 Deere & Company 581,625 33
6,100 Eaton Corporation 327,113 19
8,200 Emerson Electric Company 670,350 38
6,600 Foster Wheeler Corporation 280,500 16
62,700 General Electric Company 4,514,400 256
15,000 Grainger (W.W.), Inc. 993,750 57
18,600 Ingersoll-Rand Company 653,325 37
8,700 Lockheed Martin Corporation 687,300 39
10,400 Loral Corporation 367,900 21
19,200 Raytheon Company 907,200 52
9,600 United Technologies Corporation 910,800 52
16,000 * Varity Corporation 594,000 34
21,100 WMX Technologies, Inc. 630,362 36
- ------------------ ----------------------------------------------------------------------------------------------------------
13,459,712 766
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Durables--1.7%
18,000 Corning, Inc. 576,000 33
4,000 Fleetwood Enterprises, Inc. 103,000 6
37,500 Ford Motor Company 1,087,500 62
13,350 Goodyear Tire & Rubber Company 605,755 34
19,600 Masco Corporation 614,950 35
- ------------------ ----------------------------------------------------------------------------------------------------------
2,987,205 170
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--22.3%
32,100 Abbott Laboratories 1,340,175 76
11,200 American Home Products Corporation 1,086,400 62
18,300 Anheuser-Busch Companies, Inc. 1,223,813 70
18,100 Astra AB (ADR) - Class "A" 724,000 41
19,500 Bristol-Myers Squibb Company 1,674,563 95
48,400 Coca-Cola Company 3,593,700 205
16,600 Columbia/HCA Healthcare Corporation 842,450 48
13,900 CPC International, Inc. 953,887 54
14,200 Eastman Kodak Company 951,400 54
22,400 Eli Lilly & Company 1,260,000 73
10,600 General Mills, Inc. 612,150 35
17,000 Gillette Company 886,125 50
26,250 Heinz (H.J.) Company 869,531 49
13,300 Hershey Foods Corporation 864,500 49
24,800 Johnson & Johnson 2,123,500 121
8,300 Kellogg Company 641,175 36
14,000 Kimberly-Clark Corporation 1,158,500 66
47,500 Merck & Company, Inc. 3,123,125 178
33,100 Newell Company 856,463 49
10,800 Nike, Inc. 751,950 43
35,300 PepsiCo, Inc. 1,972,387 112
24,300 Pfizer, Inc. 1,530,900 87
36,300 Philip Morris Companies, Inc. 3,285,150 187
26,400 Procter & Gamble Company 2,191,200 125
14,000 * Ralcorp Holdings, Inc. 339,500 19
14,200 Schering-Plough Corporation 777,450 44
21,300 Teva Pharmaceutical Industries Ltd. (ADR) 987,788 56
10,200 Unilever N.V. 1,435,650 82
10,800 United Healthcare Corporation 707,400 40
5,500 Warner-Lambert Company 534,187 30
- ------------------ ----------------------------------------------------------------------------------------------------------
39,299,019 2,236
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Services--11.1%
17,100 Brunswick Corporation 410,400 23
5,700 Capital Cities/ABC, Inc. 703,238 40
7,200 * CUC International, Inc. 245,700 14
10,600 * Darden Restaurants, Inc. 125,875 7
18,000 Gap, Inc. 756,000 43
11,500 * HFS, Inc. 940,125 53
17,600 Home Depot, Inc. 842,600 48
10,300 ITT Corporation 545,900 32
10,300 ITT Hartford Group, Inc. 498,263 28
10,300 ITT Industries, Inc. 247,200 14
15,700 * Kroger Company 588,750 33
11,300 Marriott International, Inc. 432,225 25
19,625 Mattel, Inc. 603,468 34
12,900 May Department Stores Company 545,025 31
27,200 McDonald's Corporation 1,227,400 70
7,600 McGraw-Hill Companies, Inc. 662,150 38
15,000 Nordstrom, Inc. 607,500 35
33,300 * Price/Costco, Inc. 507,825 29
14,100 Sears, Roebuck and Company 549,900 31
15,500 Talbots, Inc. 445,625 25
27,925 * Tele-Communications, Inc. Liberty Media Group - Class "A" 750,484 43
42,500 * Tele-Communications, Inc. TCI Group - Class "A" 844,687 48
14,200 Time Warner, Inc. 537,825 31
17,100 US West Media Group 324,900 18
13,300 * Viacom, Inc. - Class "B" 630,088 36
17,400 Vons Companies, Inc. 491,550 28
103,800 Wal-Mart Stores, Inc. 2,322,525 132
13,500 Walgreen Company 403,313 23
20,000 Walt Disney Company 1,180,000 67
36,600 * Woolworth Corporation 475,800 27
- ------------------ ----------------------------------------------------------------------------------------------------------
19,446,341 1,106
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--12.1%
10,200 Aluminum Company of America 539,325 31
18,900 Amoco Corporation 1,358,438 77
9,100 Atlantic Richfield Company 1,007,825 57
16,900 Avery Dennison Corporation 847,113 48
28,200 Baker Hughes, Inc. 687,375 39
27,000 Barrick Gold Corporation 712,125 41
7,100 Burlington Resources, Inc. 278,675 16
25,000 Chevron Corporation 1,312,500 75
26,900 Enron Corporation 1,025,563 58
47,700 Exxon Corporation 3,821,963 217
6,700 Kerr-McGee Corporation 425,450 24
15,200 Mobil Corporation 1,702,400 97
20,300 Morton International, Inc. 728,263 41
13,400 Pacific Enterprises 378,550 22
9,400 Phillips Petroleum Company 320,775 18
20,600 Royal Dutch Petroleum Company 2,907,175 165
11,200 Schlumberger, Ltd. 775,600 45
31,500 Sonat, Inc. 1,122,189 64
9,400 Texaco, Inc. 737,900 42
23,500 Unocal Corporation 684,438 39
- ------------------ ----------------------------------------------------------------------------------------------------------
21,373,642 1,216
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial--11.6%
18,100 American Express Company 748,888 43
18,300 American International Group, Inc. 1,692,750 96
18,300 American Re Corporation 748,013 42
39,400 Banc One Corporation 1,487,350 85
17,400 BankAmerica Corporation 1,126,650 64
12,100 Bank of New York Company, Inc. 589,875 33
31,200 Charles Schwab Corporation 627,900 36
11,300 Chase Manhattan Corporation 685,063 39
14,100 Chemical Banking Corporation 828,375 47
7,600 Chubb Corporation 735,300 42
24,200 Citicorp 1,627,450 92
14,500 Dean Witter Discover and Company 681,500 39
16,700 Federal National Mortgage Association 2,072,886 118
12,200 First Union Corporation 678,625 39
5,200 General Re Corporation 806,000 46
81,200 Hibernia Corporation - Class "A" 872,900 50
2,700 Marsh & McLennan Companies, Inc. 239,625 14
14,700 Mellon Bank Corporation 790,125 45
18,300 NationsBank Corporation 1,274,137 72
36,700 Norwest Corporation 1,211,100 69
23,400 Salomon, Inc. 830,700 47
- ------------------ ----------------------------------------------------------------------------------------------------------
20,355,212 1,158
- ------------------ ----------------------------------------------------------------------------------------------------------
Technology--14.0%
60,900 A T & T Corp. 3,943,275 224
24,000 * Airtouch Communications, Inc. 678,000 39
19,000 * Applied Materials, Inc. 748,125 43
10,800 * Ascend Communications, Inc. 876,150 50
5,000 Autodesk, Inc. 171,250 10
8,400 Automatic Data Processing, Inc. 623,700 35
25,600 * Cisco Systems, Inc. 1,910,400 109
5,600 Computer Associates International, Inc. 318,500 18
44,100 * EMC Corporation 678,036 39
22,200 First Data Corporation 1,484,625 84
20,400 Hewlett-Packard Company 1,708,500 97
30,600 Intel Corporation 1,736,550 99
23,500 International Business Machines Corporation 2,156,125 123
20,000 * LSI Logic Corporation 655,000 37
26,100 MCI Communications Corporation 681,863 39
22,500 * Microsoft Corporation 1,974,375 112
24,700 Motorola, Inc. 1,407,900 80
19,000 * National Semiconductor Corporation 422,750 24
29,550 * Oracle Corporation 1,252,180 72
21,600 * Premenos Technology Corporation 569,700 32
13,400 Sprint Corporation 534,325 30
- ------------------ ----------------------------------------------------------------------------------------------------------
24,531,329 1,396
- ------------------ ----------------------------------------------------------------------------------------------------------
Transportation--1.4%
11,800 * AMR Corporation 876,150 50
6,200 Burlington Northern, Inc. 483,600 27
15,600 Union Pacific Corporation 1,029,600 59
- ------------------ ----------------------------------------------------------------------------------------------------------
2,389,350 136
- ------------------ ----------------------------------------------------------------------------------------------------------
Utilities--8.9%
20,000 Ameritech Corporation 1,180,000 67
16,600 Bell Atlantic Corporation 1,110,125 63
42,600 BellSouth Corporation 1,853,100 105
23,000 Carolina Power & Light Company 793,500 45
40,000 Cinergy Corporation 1,225,000 70
23,000 Duke Power Company 1,089,625 63
28,200 FPL Group, Inc. 1,307,775 74
35,600 GTE Corporation 1,566,400 89
15,700 NYNEX Corporation 847,800 48
16,000 Pacific Telesis Group 538,000 31
26,000 PacifiCorp 552,500 31
16,300 Peco Energy Company 491,036 28
22,100 SBC Communications, Inc. 1,270,750 72
28,000 Texas Utilities Company 1,151,500 66
17,100 US West, Inc. 611,325 35
- ------------------ ----------------------------------------------------------------------------------------------------------
15,588,436 887
CONVERTIBLE BONDS--.6%
Consumer Services
1,500M Bell Sports Corporation, 4 1U4%, 11/15/2000 (cost $1,289,084) 1,050,000 60
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.5%
1,200M Dupont (E.I.) DeNemours & Co., 5.7%, 1/9/96 1,198,480 68
1,650M GTE Southwest, Inc., 5.75%, 1/16/96 1,646,047 94
1,500M Idaho Power Company, 5.75%, 1/12/96 1,497,365 85
1,800M Lubrizol Corporation , 5.74%, 1/5/96 1,798,852 103
1,800M Nestle Capital Corporation, 5.67%, 1/3/96 1,799,432 102
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $7,940,176) 7,940,176 452
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $136,898,998) 99.8% 175,440,598 9,982
Other Assets, Less Liabilities .2 312,218 18
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $ 175,752,816 10,000
================== ==========================================================================================================
* Non-income producing
</TABLE>
Portfolio of Investments
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT SERIES
(A Series of First Investors Series Fund)
December 31, 1995
<TABLE>
<CAPTION
- ------------------ ----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS--100.1%
Alaska--3.0%
$ 200M Anchorage General Obligation 6 1U2%, 7/1/2004 $ 225,000 $ 304
- ------------------ ----------------------------------------------------------------------------------------------------------
Arizona--12.3%
Maricopa County Unified School District General Obligation:
300M #11 (Peoria) 7%, 7/1/2001* 339,375 460
250M #80 (Chandler) 6.6%, 7/1/2006 286,875 387
250M Phoenix Civic Impt. Corp. Mun. Facs. Excise Tax Rev. 6 3U4%, 7/1/2004 284,375 384
- ------------------ ----------------------------------------------------------------------------------------------------------
910,625 1,231
- ------------------ ----------------------------------------------------------------------------------------------------------
Arkansas--3.0%
200M Arkansas St. Fin. Auth. Water Rev. 6.4%, 6/1/2002* 223,750 303
- ------------------ ----------------------------------------------------------------------------------------------------------
California--6.7%
150M Pittsburg Pub. Fing. Auth. Wastewater Rev. 6.8%, 6/1/2001 170,250 230
300M San Diego Pub. Fing. Auth. Sewer Rev. 6%, 5/15/2005 327,750 443
- ------------------ ----------------------------------------------------------------------------------------------------------
498,000 673
- ------------------ ----------------------------------------------------------------------------------------------------------
Illinois--23.5%
250M Chicago General Obligation 6 1U4%, 10/31/2001 271,875 368
250M Chicago Park District 6%, 1/1/2007 269,063 364
200M Chicago Wastewater Transmission Rev. 6 3U4%, 11/15/2000* 225,000 304
200M Cook County High School District General Obligation
250M Northwest Subn. Mun. Jt. Action Water Agy. 6.35%, 5/1/2006 277,812 376
400M Regional Transportation Authority 7 3U4%, 6/1/2003 478,500 647
- ------------------ ----------------------------------------------------------------------------------------------------------
1,735,500 2,347
- ------------------ ----------------------------------------------------------------------------------------------------------
Indiana--2.3%
150M Valparaiso Indpt. Multi-Schools Bldg. Corp. 6 5U8%, 7/1/2002* 170,437 230
- ------------------ ----------------------------------------------------------------------------------------------------------
Kentucky--3.7%
200M Louisville & Jefferson County Met. Sewer District 10%, 5/15/2004 270,250 365
- ------------------ ----------------------------------------------------------------------------------------------------------
Louisiana--2.7%
175M Louisiana General Obligation 7%, 5/1/2001 197,312 267
- ------------------ ----------------------------------------------------------------------------------------------------------
Michigan--10.4%
1,000M Brighton Area School District General Obligation Zero Cpn. 5/1/2005* 313,750 425
250M Grand Ledge School District 6.6%, 5/1/2004 288,750 390
150M Morley-Stanwood Cmnty. School 6 1U2%, 5/1/2005 168,563 229
- ------------------ ----------------------------------------------------------------------------------------------------------
771,063 1,044
- ------------------ ----------------------------------------------------------------------------------------------------------
New Jersey--3.1%
200M New Jersey Economic Dev. Auth. Mkt. Transition Fac. Rev. 7%, 7/1/2004 232,250 314
- ------------------ ----------------------------------------------------------------------------------------------------------
New York--10.4%
New York City General Obligati
150M 6 5U8%, 8/1/2002* 171,000 231
250M 8%, 8/1/2005 313,438 424
Niagara Falls Bridge Commission:
100M 6 1U8%, 10/1/2002 111,750 151
150M 6.3%, 10/1/2002* 169,125 229
- ------------------ ----------------------------------------------------------------------------------------------------------
765,313 1,035
- ------------------ ----------------------------------------------------------------------------------------------------------
Ohio--3.1%
200M Columbus City Sch. Dist. General Obligation 6.65%, 12/1/2002* 229,500 311
- ------------------ ----------------------------------------------------------------------------------------------------------
Pennsylvania- 3.1%
200M Pennsylvania Intergovernmental Coop. Auth. Special Tax Rev.
7%, 6/15/2004 229,750 311
- ------------------ ----------------------------------------------------------------------------------------------------------
Puerto Rico--1.9%
125M Puerto Rico Electrical Power Auth. Rev. 6 1U2%, 7/1/2005 142,031 192
- ------------------ ----------------------------------------------------------------------------------------------------------
Rhode Island--3.1%
200M Rhode Island Depositors Econ. Protection Corp. 7.1%, 8/1/2001* 230,000 311
- ------------------ ----------------------------------------------------------------------------------------------------------
Texas--4.6%
300M Harris County Toll Road General Obligation 6 1U2%, 8/15/2002* 339,375 459
Washington--3.2%
$ 200M Snohomish & Island Counties School District General Obligation
#401 (Stanwood), 7%, 12/15/2005 $235,000 $317
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $7,014,821) 100.1% 7,405,156 10,014
Excess of Liabilities Over Other Assets (.1) (10,215) (4)
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $7,394,941 $10,000
================== ==========================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded
</TABLE>
Portfolio of Investments
FIRSTINVESTORS INVESTMENT GRADE SERIES
(A Series of First Investgors Series Fund)
December 31, 1995
<TABLE>
<CAPTION
- ------------------ ----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS--100.1%
Alaska--3.0%
$ 200M Anchorage General Obligation 6 1U2%, 7/1/2004 $ 225,000 $ 304
- ------------------ ----------------------------------------------------------------------------------------------------------
Arizona--12.3%
Maricopa County Unified School District General Obligation:
300M #11 (Peoria) 7%, 7/1/2001* 339,375 460
250M #80 (Chandler) 6.6%, 7/1/2006 286,875 387
250M Phoenix Civic Impt. Corp. Mun. Facs. Excise Tax Rev. 6 3U4%, 7/1/2004 284,375 384
- ------------------ ----------------------------------------------------------------------------------------------------------
910,625 1,231
- ------------------ ----------------------------------------------------------------------------------------------------------
Arkansas--3.0%
200M Arkansas St. Fin. Auth. Water Rev. 6.4%, 6/1/2002* 223,750 303
- ------------------ ----------------------------------------------------------------------------------------------------------
California--6.7%
150M Pittsburg Pub. Fing. Auth. Wastewater Rev. 6.8%, 6/1/2001 170,250 230
300M San Diego Pub. Fing. Auth. Sewer Rev. 6%, 5/15/2005 327,750 443
- ------------------ ----------------------------------------------------------------------------------------------------------
498,000 673
- ------------------ ----------------------------------------------------------------------------------------------------------
Illinois--23.5%
250M Chicago General Obligation 6 1U4%, 10/31/2001 271,875 368
250M Chicago Park District 6%, 1/1/2007 269,063 364
200M Chicago Wastewater Transmission Rev. 6 3U4%, 11/15/2000* 225,000 304
200M Cook County High School District General Obligation
250M Northwest Subn. Mun. Jt. Action Water Agy. 6.35%, 5/1/2006 277,812 376
400M Regional Transportation Authority 7 3U4%, 6/1/2003 478,500 647
- ------------------ ----------------------------------------------------------------------------------------------------------
1,735,500 2,347
- ------------------ ----------------------------------------------------------------------------------------------------------
Indiana--2.3%
150M Valparaiso Indpt. Multi-Schools Bldg. Corp. 6 5U8%, 7/1/2002* 170,437 230
- ------------------ ----------------------------------------------------------------------------------------------------------
Kentucky--3.7%
200M Louisville & Jefferson County Met. Sewer District 10%, 5/15/2004 270,250 365
- ------------------ ----------------------------------------------------------------------------------------------------------
Louisiana--2.7%
175M Louisiana General Obligation 7%, 5/1/2001 197,312 267
- ------------------ ----------------------------------------------------------------------------------------------------------
Michigan--10.4%
1,000M Brighton Area School District General Obligation Zero Cpn. 5/1/2005* 313,750 425
250M Grand Ledge School District 6.6%, 5/1/2004 288,750 390
150M Morley-Stanwood Cmnty. School 6 1U2%, 5/1/2005 168,563 229
- ------------------ ----------------------------------------------------------------------------------------------------------
771,063 1,044
- ------------------ ----------------------------------------------------------------------------------------------------------
New Jersey--3.1%
200M New Jersey Economic Dev. Auth. Mkt. Transition Fac. Rev. 7%, 7/1/2004 232,250 314
- ------------------ ----------------------------------------------------------------------------------------------------------
New York--10.4%
New York City General Obligati
150M 6 5U8%, 8/1/2002* 171,000 231
250M 8%, 8/1/2005 313,438 424
Niagara Falls Bridge Commission:
100M 6 1U8%, 10/1/2002 111,750 151
150M 6.3%, 10/1/2002* 169,125 229
- ------------------ ----------------------------------------------------------------------------------------------------------
765,313 1,035
- ------------------ ----------------------------------------------------------------------------------------------------------
Ohio--3.1%
200M Columbus City Sch. Dist. General Obligation 6.65%, 12/1/2002* 229,500 311
- ------------------ ----------------------------------------------------------------------------------------------------------
Pennsylvania- 3.1%
200M Pennsylvania Intergovernmental Coop. Auth. Special Tax Rev.
7%, 6/15/2004 229,750 311
- ------------------ ----------------------------------------------------------------------------------------------------------
Puerto Rico--1.9%
125M Puerto Rico Electrical Power Auth. Rev. 6 1U2%, 7/1/2005 142,031 192
- ------------------ ----------------------------------------------------------------------------------------------------------
Rhode Island--3.1%
200M Rhode Island Depositors Econ. Protection Corp. 7.1%, 8/1/2001* 230,000 311
- ------------------ ----------------------------------------------------------------------------------------------------------
Texas--4.6%
300M Harris County Toll Road General Obligation 6 1U2%, 8/15/2002* 339,375 459
Washington--3.2%
$ 200M Snohomish & Island Counties School District General Obligation
#401 (Stanwood), 7%, 12/15/2005 $235,000 $317
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $7,014,821) 100.1% 7,405,156 10,014
Excess of Liabilities Over Other Assets (.1) (10,215) (14)
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $7,394,941 $10,000
================== ==========================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded
</TABLE>
Portfolio of Investments
FIRSTINVESTORS INVESTMENT GRADE SERIES
(A Series of First Investgors Series Fund)
December 31, 1995
<TABLE>
<CAPTION>
- ------------------ ----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS--86.9%
Aerospace/Defense--4.6%
$ 700M Boeing Co., 6.35%, 2003 $ 718,756 $ 140
750M Lockheed Corp., 6 3U4%, 2003 784,501 153
750M Rockwell International Corp., 8 3U8%, 2001 838,442 165
- ------------------ ----------------------------------------------------------------------------------------------------------
2,341,699 458
- ------------------ ----------------------------------------------------------------------------------------------------------
Apparel/Textiles--.6%
250M VF Corp., 9 1U2%, 2001 288,059 56
- ------------------ ----------------------------------------------------------------------------------------------------------
Building Materials--1.3%
600M Masco Corp., 9%, 2001 685,187 134
- ------------------ ----------------------------------------------------------------------------------------------------------
Chemicals--2.1%
250M Arco Chemical Co., 9.9%, 2000 293,743 57
700M Lubrizol Corp., 7 1U4%, 2025 770,027 151
- ------------------ ----------------------------------------------------------------------------------------------------------
1,063,770 208
- ------------------ ----------------------------------------------------------------------------------------------------------
Conglomerates--3.1%
700M Hanson Overseas, B.V., 7 3U8%, 2003 751,630 147
750M Tenneco, Inc., 7 7U8%, 2002 818,960 160
- ------------------ ----------------------------------------------------------------------------------------------------------
1,570,590 307
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.5%
700M American Home Products Corp., 7.9%, 2005 788,802 154
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Products--2.5%
1,250M Mattel, Inc., 6 3U4%, 2000 1,282,650 251
- ------------------ ----------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--12.7%
750M Baltimore Gas & Electric Co., 6 1U2%, 2003 769,550 150
800M Carolina Power & Light Co., 7 3U4%, 2003 820,695 160
600M Commonwealth Edison, 8 1U4%, 2006 684,422 134
1,000M Duke Power Co., 5 7U8%, 2003 978,202 191
800M Kansas Gas & Electric Co., 7.6%, 2003 862,753 169
525M Old Dominion Electric Cooperative, 7.97%, 2002 569,975 112
750M Philadelphia Electric Co., 8%, 2002 818,549 161
925M Southwestern Electric Power Co., 7%, 2007 988,547 194
- ------------------ ----------------------------------------------------------------------------------------------------------
6,492,693 1,271
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--1.5%
700M Baroid Corp., 8%, 2003 776,656 152
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial Services--16.4%
925M Banc One Corp., 7 1U4%, 2002 985,389 193
660M BankAmerica Corp., 9 1U2%, 2001 764,201 149
875M Barnett Banks, Inc., 8 1U2%, 1999 942,337 184
700M Chemical Bank, Inc., 7%, 2005 737,655 144
150M Citicorp, 10.15%, 1998 163,304 32
800M Citicorp, 8%, 2003 884,033 174
250M CoreStates Capital Corp., 9 3U8%, 2003 296,183 58
450M First Union Corp., 8 1U8%, 2002 497,867 97
750M Mellon Bank N.A., 6 1U2%, 2005 764,887 149
550M Meridian Bancorp, 7 7U8%, 2002 603,336 118
925M Morgan Guaranty Trust Co., 7 3U8%, 2002 993,287 194
700M NationsBank Corporation., 8 1U8%, 2002 773,500 151
- ------------------ ----------------------------------------------------------------------------------------------------------
8,405,979 1,643
- ------------------ ----------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--7.4%
750M Anheuser Busch Company, Inc., 7%, 2005 788,752 154
500M Coca-Cola Enterprises, Inc., 7 7U8%, 2002 549,840 107
700M Hershey Foods Corp., 6.7%, 2005 737,951 144
900M Philip Morris Cos., Inc., 7 1U8%, 2002 944,185 185
650M Universal Corp., 9 1U4%, 2001 743,375 145
- ------------------ ----------------------------------------------------------------------------------------------------------
3,764,103 735
- ------------------ ----------------------------------------------------------------------------------------------------------
Healthcare--1.5%
700M Columbia/HCA Healthcare, 7.69%., 2025 774,749 151
- -----------------------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--5.0%
700M Associates Corp. of North America, 7 7U8%, 2001 765,033 149
700M General Electric Capital Corp., 7 7U8%, 2006 801,092 157
700M General Motors Acceptance Corp., 7 1U8%, 1999 728,703 142
250M International Lease Finance Corp., 8 7U8%, 2001 282,050 55
- ------------------ ----------------------------------------------------------------------------------------------------------
2,576,878 503
- ------------------ ----------------------------------------------------------------------------------------------------------
Media/Cable Television--4.8%
700M New York Times Co., Inc., 7 5U8%, 2005 777,259 152
750M PanAmSat Capital Corp., 9 3U4%, 2000 791,250 155
800M Tele-Communications, Inc., 8 1U4%, 2003 870,871 170
- ------------------ ----------------------------------------------------------------------------------------------------------
2,439,380 477
- ------------------ ----------------------------------------------------------------------------------------------------------
Miscellaneous--.5%
250M Alco Standard Corp., 8 7U8%, 2001 283,041 55
- ------------------ ----------------------------------------------------------------------------------------------------------
Oil/Natural Gas--4.3%
750M BP America, Inc., 7 7U8%, 2002 829,797 162
700M Columbia Gas System, Inc., 6.8%, 2005 723,224 141
500M Mobil Corp., 8 5U8%, 2021 637,257 125
- ------------------ ----------------------------------------------------------------------------------------------------------
2,190,278 428
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Products--5.1%
500M MacMillan & Bloedel, Ltd., 8 1U2%, 2004 561,272 110
500M S.D. Warren Company, 12%, 2004 552,500 108
650M Stone Container Corp., 10 3U4%, 2002 675,188 132
750M Temple Inland, Inc., 9%, 2001 856,817 167
- ------------------ ----------------------------------------------------------------------------------------------------------
2,645,777 517
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail-General Merchandise--1.5%
750M Penney (J.C.) & Co., 6 1U8%, 2003 752,712 147
Technology--3.0%
750M International Business Machines Corp., 6 3U8%, 2000 768,870 150
725M Xerox Corp., 7.15%, 2004 772,680 151
- ------------------ ----------------------------------------------------------------------------------------------------------
1,541,550 301
- ------------------ ----------------------------------------------------------------------------------------------------------
Telephone--7.5%
500M GTE Corp., 8.85%, 1998 530,528 104
850M MCI Communication Corp., 7 1U2%, 2004 933,660 182
1,000M Pacific Bell Telephone Co., 7%, 2004 1,051,879 206
1,250M Southern Bell Telephone & Telegraph Co., Inc., 8 1U8%, 2017 1,296,739 253
- ---------------- ------------------------------------------------------------------------------------------------------------
3,812,806 745
- ------------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $41,846,181) 44,477,359 8,693
- ------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--7.8%
700M Federal Home Loan Mortgage Corp., 7.88%, 2004 715,988 140
3,000M United States Treasury Note, 7 3U4%, 2000 3,259,688 637
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $3,900,250) 3,975,676 777
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.0%
850M Gannett Company, 5.85%, 1/8/96 849,034 166
700M Home Depot Inc., 5.7%, 1/5/96 699,556 137
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,548,590) 1,548,590 303
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $47,295,021) 97.7% 50,001,625 9,773
Other Assets, Less Liabilities 2.3 1,161,815 227
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% $ 51,163,440 10,000
================== ==========================================================================================================
</TABLE>
See notes to financial statements
Portfolio of Investments
FIRST INVESTORS SPECIAL SITUATIONS SERIES
(A Series of First Investors Series Fund)
December 31, 1995
<TABLE>
<CAPTION>
- ------------------ ----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--84.8%
Basic Industry--2.0%
10,300 Chesapeake Corporation $ 305,137 $ 23
67,200 * Interpool, Inc. 1,201,200 93
75,000 * Repap Enterprises, Inc. 332,813 26
22,800 Schulman, Inc. - Class "A" 513,000 39
25,200 * Universal Stainless & Alloy Products, Inc. 267,750 21
- ------------------ ----------------------------------------------------------------------------------------------------------
2,619,900 202
- ------------------ ----------------------------------------------------------------------------------------------------------
Capital Goods--3.0%
28,200 AGCO Corporation 1,438,200 111
41,800 Case Corporation 1,912,350 147
63,400 Owosso Corporation 562,675 43
- ------------------ ----------------------------------------------------------------------------------------------------------
3,913,225 301
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Durables--1.1%
25,700 Falcon Products, Inc. 337,313 26
63,800 * National R.V. Holdings, Inc. 741,675 57
9,800 * Wolverine Tube, Inc. 367,500 28
- ------------------ ----------------------------------------------------------------------------------------------------------
1,446,488 111
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.5%
26,000 Dreyer's Grand Ice Cream, Inc. 864,500 67
45,000 * Ralcorp Holdings, Inc. 1,091,250 84
- ------------------ ----------------------------------------------------------------------------------------------------------
1,955,750 151
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Services--20.2%
29,500 Advo, Inc. 767,000 59
37,400 * Barnes & Noble, Inc. 1,084,600 83
79,700 * Bell Sport Corporation 637,600 49
119,300 * Cannondale Corporation 1,893,888 146
67,500 * Cinar Films, Inc. - Class "B" 1,020,937 79
46,500 * CUC International, Inc. 1,586,813 122
50,400 * Discount Auto Parts, Inc. 1,568,700 121
52,000 Equifax, Inc. 1,111,500 86
18,000 * Federated Department Stores, Inc. 495,000 38
54,900 * Franklin Electronic Publishers, Inc. 1,619,550 123
36,000 Gaylord Entertainment Company - Class "A" 999,000 77
63,000 * Home Shopping Network, Inc. 567,000 44
56,900 La Quinta Inns, Inc. 1,557,637 120
43,100 * Meyer (Fred), Inc. 969,750 75
49,700 * Monarch Casino & Resort, Inc. 173,950 13
36,100 * NHP, Inc. 667,850 51
31,400 * REX Stores Corporation 557,350 43
51,500 Rite Aid Corporation 1,763,875 136
14,400 * Studio Plus Hotel, Inc. 370,800 29
22,900 Talbots, Inc. 658,375 52
61,600 * Tele-Communications, TCI Group - Class "A" 1,224,300 94
110,400 * U.S. Office Products Company 2,511,600 193
90,000 * USCI, Inc. 888,750 68
33,000 * Viacom, Inc. - Class "B" 1,563,375 120
- ------------------ ----------------------------------------------------------------------------------------------------------
26,259,200 2,021
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--.9%
21,600 Snyder Oil Company 261,900 20
7,200 Sonat, Inc. 256,500 20
10,800 * Tejas Gas Corporation 571,050 44
- ------------------ ----------------------------------------------------------------------------------------------------------
1,089,450 84
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial--8.1%
37,100 * American Travellers Corporation 1,043,437 80
65,700 Amvestors Financial Corporation 771,975 59
15,500 Boatmens Bancshares, Inc. 633,563 49
4,400 Commercial Federal Corporation 166,100 13
26,500 First USA, Inc. 1,175,937 91
52,500 Independent Bank Corporation 387,188 30
37,500 Integon Corporation 773,438 60
16,500 Mark Twain Bancshares, Inc. 639,375 49
14,600 Mercantile Bancorporation 671,600 52
70,000 * Penn Treaty American Corporation 1,155,000 89
43,550 Reliance Group Holdings, Inc. 375,618 29
18,468 Southern National Corporation 484,785 37
54,000 Titan Holdings, Inc. 776,250 60
35,900 * WFS Financial, Inc. 700,050 54
64,000 Willis Corroon Group PLC (ADR) 744,000 57
- ------------------ ----------------------------------------------------------------------------------------------------------
10,498,316 809
- ------------------ ----------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--13.4%
21,600 AHI Healthcare System, Inc. 124,200 10
35,800 * American Medical Response, Inc. 1,163,500 90
14,400 * American Oncology Resources, Inc. 700,200 54
75,500 * Applied Bioscience International, Inc. 509,625 39
30,000 * Arbor Health Care Company 525,000 40
26,000 * Boston Scientific Corporation 1,274,000 98
28,000 Dentsply International, Inc. 1,120,000 86
86,500 * Ethical Holdings PLC (ADR) 778,500 60
38,200 Fisher Scientific International 1,274,925 98
26,000 * Health Care and Retirement Corporation 910,000 70
34,300 * Humana, Inc. 938,962 72
18,000 * InStent, Inc. 270,000 21
31,600 * Living Centers of America, Inc. 1,106,000 85
57,100 * Mid Atlantic Medical Services, Inc. 1,384,675 107
10,800 * Norland Medical System, Inc. 251,100 19
36,400 * Noven Pharmaceuticals, Inc. 409,500 32
21,600 * Orthologic Corporation 313,200 24
30,900 * Pacific Physicians Services, Inc. 556,200 43
32,000 * Pyxis Corporation 468,000 36
18,500 * Rural/Metro Corporation 418,563 32
18,000 * Tecnol Medical Products, Inc. 324,000 25
39,600 Teva Pharmaceutical Industries Ltd. (ADR) 1,836,450 141
74,900 * Vidamed, Inc. 711,550 55
- ------------------ ----------------------------------------------------------------------------------------------------------
17,368,150 1,337
- ------------------------------------------------------------------------------------------------------------------------------
Technology--26.8%
30,100 * Adaptec, Inc. 1,234,100 95
19,500 * Altera Corporation 970,125 75
28,800 * Applied Materials, Inc. 1,134,000 87
36,700 * Atmel Corporation 821,162 63
34,500 * BISYS Group, Inc. 1,060,875 82
32,600 * Broadway & Seymour, Inc. 529,750 41
36,000 * Catalyst International, Inc. 414,000 32
14,400 * Cerner Corporation 295,200 23
14,000 * Cisco System, Inc. 1,044,750 80
17,700 Computer Associates International, Inc. 1,006,687 78
36,000 Cornerstone Imaging, Inc. 522,000 40
39,600 * Data Works Corporation 499,950 38
36,000 * Davidson & Associates, Inc. 792,000 61
25,300 * Discreet Logic, Inc. 632,500 49
63,400 * EMC Corporation 974,775 75
19,650 * FileNet Corporation 923,550 71
52,900 * Fulcrum Technologies, Inc. 1,719,250 132
14,400 * HCIA, Inc. 673,200 52
36,000 * IDX Systems Corporation 1,251,000 96
17,000 * Informix Corporation 510,000 39
38,000 * Integrated Micro Products PLC (ADR) 703,000 54
60,700 * Intersolv 781,513 60
13,700 * Lam Research Corporation 626,775 48
46,200 * LSI Logic Corporation 1,513,050 117
28,800 * Mercury Interactive Corporation 525,600 41
32,900 * Metatec Corporation 361,900 28
50,300 * MySoftware Company 641,325 49
84,900 * National Semiconductor Corporation 1,889,025 146
37,200 * Oracle Corporation 1,576,350 121
140,500 * Plasma-Therm, Inc. 351,250 27
55,600 * Premenos Technology Corporation 1,466,450 113
32,100 Reynolds & Reynolds Company 1,247,887 96
46,800 * Saville Systems Ireland (ADR) 666,900 51
28,900 * Softkey International, Inc. 668,313 51
73,700 * Symantec Corporation 1,713,525 132
58,000 * Systems Soft Corporation 652,500 50
38,500 * Tower Semiconductor Ltd. 851,813 66
14,600 * Veritas Software Corporation 554,800 43
35,200 * VLSI Technology, Inc. 638,000 49
13,400 * Xilinx, Inc. 408,700 32
- ------------------ ----------------------------------------------------------------------------------------------------------
34,847,550 2,683
- ------------------ ----------------------------------------------------------------------------------------------------------
Telecommunications--6.9%
16,500 * Ascend Communications, Inc. 1,338,563 103
27,800 * Boston Technology, Inc. 354,450 27
48,600 ECI Telecommunications Limited Designs 1,108,686 86
42,000 Ericsson (L.M.) Telephone Company (ADR) 819,000 64
15,600 Motorola, Inc. 889,200 68
13,700 * NETCOM On-Line Communication Services, Inc. 493,200 38
23,100 Nokia Corporation (ADR) - Class "A" 898,013 69
35,800 * Octel Communications Corporation 1,154,550 89
12,900 * TCSI Corporation 238,650 18
61,500 * Tele-Communications, Inc. Liberty Media Group - Class "A" 1,652,813 127
- ------------------ ----------------------------------------------------------------------------------------------------------
8,947,125 689
- ------------------ ----------------------------------------------------------------------------------------------------------
Transportation--.9%
7,200 * Celadon Group, Inc. 64,800 5
126,400 * Transportacion Maritima Mexicana S.A. (ADR) 1,058,600 81
- ------------------ ----------------------------------------------------------------------------------------------------------
1,123,400 86
- ------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $90,301,263) 110,068,554 8,474
- ------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.3%
450M Pacific Physicians Services, Inc., 5 1/2%, 2003 (cost $450,000) 435,375 33
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--14.7%
2,800M B.A.T Capital Corporation, 5.75%, 1/12/96 2,795,080 215
5,300M Cargill Corporation, 5.66%, 1/16/96 5,287,500 407
1,200M Chevron Oil Corporation, 5.76%, 1/18/96 1,196,736 92
600M Ford Motor Credit Company, 5.70%, 1/11/96 599,050 46
500M Lubrizol Corporation, 5.74%, 1/5/96 499,680 39
500M Nestles Capital Corporation, 5.67%, 1/3/96 499,843 39
500M Pacific Bell, 5.65%, 1/22/96 498,352 38
4,850M Snap-On Tools Corporation, 5.90%, 1/5/96 4,846,821 373
2,900M Transamerica Finance Corporation, 5.76%, 1/11/96 2,895,362 223
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $19,118,424) 19,118,424 1,472
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $109,869,687) 99.8% 129,622,353 9,979
Other Assets, Less Liabilities .2 274,126 21
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% 129,896,479 10,000
================== ==========================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
Portfolio of Investments
FIRST INVESTORS TOTAL RETURN SERIES
(A Series of First Investors Series Fund)
December 31, 1995
<TABLE>
<CAPTION>
- ------------------ ----------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ------------------ ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--51.4%
Basic Industry--2.7%
2,600 Dow Chemical Company $ 182,975 $ 33
4,800 Du Pont (E.I.) De Nemours & Company 335,400 60
17,600 * Interpool, Inc. 314,600 56
4,100 Minnesota Mining & Manufacturing Company 271,625 49
3,400 Monsanto Company 416,500 74
- ------------------ ----------------------------------------------------------------------------------------------------------
1,521,100 272
- ------------------ ----------------------------------------------------------------------------------------------------------
Capital Goods--3.4%
3,200 Boeing Company 250,800 45
6,300 Deere & Company 222,075 40
2,100 Emerson Electric Company 171,675 31
16,200 General Electric Company 1,166,400 210
2,900 * Varity Corporation 107,663 19
- ------------------ ----------------------------------------------------------------------------------------------------------
1,918,613 345
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Durables--1.0%
9,600 Ford Motor Company 278,400 49
3,100 Goodyear Tire & Rubber Company 140,663 25
4,200 Masco Corporation 131,775 24
- ------------------ ----------------------------------------------------------------------------------------------------------
550,838 98
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--13.0%
7,900 Abbott Laboratories 329,825 59
2,700 American Home Products Corporation 261,900 47
5,000 Bristol-Myers Squibb Company 429,375 77
12,000 Coca-Cola Company 891,000 160
3,400 Columbia/HCA Healthcare Corporation 172,550 31
10,600 Dreyer's Grand Ice Cream, Inc. 352,450 63
3,300 Eastman Kodak Company 221,100 40
5,800 Eli Lilly & Company 326,250 60
4,200 Gillette Company 218,925 39
6,600 Johnson & Johnson 565,125 101
2,600 Kimberly-Clark Corporation 215,150 40
11,700 Merck & Company, Inc. 769,275 138
12,700 * Mid Atlantic Medical Services, Inc. 307,975 55
7,650 PepsiCo, Inc. 427,443 77
6,200 Pfizer, Inc. 390,600 70
4,100 Philip Morris Companies, Inc. 371,050 67
6,700 Procter & Gamble Company 556,100 100
3,600 Schering-Plough Corporation 197,100 35
1,500 Unilever N.V. 211,125 38
- ------------------ ----------------------------------------------------------------------------------------------------------
7,214,318 1,297
- ------------------ ----------------------------------------------------------------------------------------------------------
Consumer Services--4.7%
8,000 Gap, Inc. 336,000 60
4,400 Home Depot, Inc. 210,650 38
10,100 La Quinta Inns, Inc. 276,487 50
3,200 McDonald's Corporation 144,400 26
18,200 * REX Stores Corporation 323,050 58
8,000 Time Warner, Inc. 303,000 54
3,100 * Viacom, Inc. - Class "B" 146,863 26
17,300 Wal-Mart Stores, Inc. 387,088 69
7,300 Walgreen Company 218,088 39
4,700 Walt Disney Company 277,300 50
- ------------------ ----------------------------------------------------------------------------------------------------------
2,622,926 470
- ------------------ ----------------------------------------------------------------------------------------------------------
Energy--5.9%
5,000 Amoco Corporation 359,375 65
1,500 Atlantic Richfield Company 166,125 30
6,100 Chevron Corporation 320,250 57
11,900 Exxon Corporation 953,487 171
3,800 Mobil Corporation 425,600 76
5,000 Royal Dutch Petroleum Company 705,625 127
2,250 Schlumberger, Ltd. 155,813 28
2,500 Texaco, Inc. 196,250 35
- ------------------ ----------------------------------------------------------------------------------------------------------
3,282,525 589
- ------------------------------------------------------------------------------------------------------------------------------
- - Financial--4.9%
4,800 American Express Company 198,600 36
4,500 American International Group, Inc. 416,250 75
3,400 BankAmerica Corporation 220,150 40
6,000 Citicorp 403,500 72
2,400 Federal National Mortgage Association 297,900 53
5,600 NationsBank Corporation 389,900 70
19,525 Southern National Corporation 512,531 92
9,000 US Bancorp, Inc. 297,000 54
- ------------------ ----------------------------------------------------------------------------------------------------------
2,735,831 492
- ------------------ ----------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--.7%
8,100 Teva Pharmaceutical Industries Ltd. (ADR) 375,637 67
- ------------------ ----------------------------------------------------------------------------------------------------------
Technology--8.7%
15,100 A T & T Corp. 977,725 176
5,000 * Airtouch Communications, Inc. 141,250 25
4,400 * Cisco Systems, Inc. 328,350 59
4,400 Hewlett-Packard Company 368,500 66
4,400 International Business Machines Corporation 403,700 72
8,000 * LSI Logic Corporation 262,000 47
6,000 MCI Communications Corporation 156,750 28
5,400 * Microsoft Corporation 473,850 85
5,700 Motorola, Inc. 324,900 58
15,700 * National Semiconductor Corporation 349,325 63
14,250 * Oracle Corporation 603,843 109
17,800 * Premenos Technology Corporation 469,475 84
- ------------------ ----------------------------------------------------------------------------------------------------------
4,859,668 872
- ------------------ ----------------------------------------------------------------------------------------------------------
Telecommunications--2.8%
6,000 * Ascend Communications, Inc. 486,750 88
15,200 ECI Telecommunications Limited Designs 346,750 62
11,800 * Octel Communications Corporation 380,550 68
5,900 * Tele-Communications, Inc. Liberty Media Group - Class "A" 158,563 28
5,300 US West Communications Group 189,475 34
- ------------------ ----------------------------------------------------------------------------------------------------------
1,562,088 280
- ------------------------------------------------------------------------------------------------------------------------------
Utilities--3.6%
5,500 Ameritech Corporation 324,500 58
4,200 Bell Atlantic Corporation 280,875 50
9,600 BellSouth Corporation 417,600 76
9,400 GTE Corporation 413,600 74
4,000 NYNEX Corporation 216,000 39
6,100 SBC Communications, Inc. 350,750 63
- ------------------ ----------------------------------------------------------------------------------------------------------
2,003,325 360
- ------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $21,915,731) 28,646,869 5,142
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--18.5%
Chemicals--1.3%
$ 650M Rexene Corp., 11 3/4%, 2004 690,625 124
- ------------------ ----------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--2.2%
500M Commonwealth Edison, 8 1/4%, 2006 570,352 101
600M Old Dominion Electric Cooperative, 7.97%, 2002 651,400 118
- ------------------ ----------------------------------------------------------------------------------------------------------
1,221,752 219
- ------------------ ----------------------------------------------------------------------------------------------------------
Electric Power--1.3%
673M United Illuminating Corp., 9.76%, 2006 706,617 127
- ------------------ ----------------------------------------------------------------------------------------------------------
Electrical Equipment--1.1%
600M Essex Group, Inc., 10%, 2003 594,000 107
- ------------------ ----------------------------------------------------------------------------------------------------------
Financial Services--2.0%
500M First Union Corp., 8 1/8%, 2002 553,186 99
500M NationsBank Corp., 8 1/8%, 2002 552,500 99
- ------------------ ----------------------------------------------------------------------------------------------------------
1,105,686 198
- ------------------ ----------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--1.2%
600M Universal Corp., 9 1/4%, 2001 686,192 123
- ------------------------------------------------------------------------------------------------------------------------------
Healthcare--2.4%
600M Healthsouth Rehabilitation Corp., 9 1/2%, 2001 642,000 115
600M Ornda Healthcorp., 11 3/8%, 2004 678,000 122
- ------------------ ----------------------------------------------------------------------------------------------------------
1,320,000 237
- ------------------ ----------------------------------------------------------------------------------------------------------
Media/Cable Television--1.1%
600M Rogers Communication Inc., 10 7/8%, 2004 626,250 112
- ------------------ ----------------------------------------------------------------------------------------------------------
Paper/Forest Products--4.9%
800M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 883,000 158
800M S.D. Warren Company, 12%, 2004 884,000 160
1,000M Stone Container Corp., 9 7/8%, 2001 976,250 175
- ------------------ ----------------------------------------------------------------------------------------------------------
2,743,250 493
- ------------------ ----------------------------------------------------------------------------------------------------------
Retail-Food/Drug--1.0%
600M Penn Traffic Co., Inc., 10.65%, 2004 578,250 104
- ------------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $9,632,585) 10,272,622 1,844
- ------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--8.5%
Colorado--3.6%
El Paso County, Colorado School District General Obligation:
1,320M Zero Coupon 2014 442,200 79
1,420M Zero Coupon 2015 449,075 82
1,420M Zero Coupon 2016 418,900 75
1,420M Zero Coupon 2018 369,200 66
1,420M Zero Coupon 2019 346,125 62
- ------------------ ----------------------------------------------------------------------------------------------------------
2,025,500 364
- ------------------ ----------------------------------------------------------------------------------------------------------
New York--4.9%
2,725M New York City General Obligation, 6%, 2025 2,704,563 485
- ------------------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $4,597,911) 4,730,063 849
- ------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--15.0%
1,000M United States Treasury Notes, 6 7/8%, 2000 1,057,031 190
4,500M United States Treasury Notes, 6 1/4%, 2000 4,652,578 834
2,500M United States Treasury Notes, 6 1/2%, 2005 2,666,406 479
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $8,120,938) 8,376,015 1,503
- ------------------ ----------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.4%
1,200M Dresser Industries, 5.72%, 1/30/96 1,184,517 213
700M Lubrizol, 5.73%, 1/24/96 697,436 125
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $1,881,953) 1,881,953 338
- ------------------ ----------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $46,149,118) 96.8% 53,907,522 9,676
Other Assets, Less Liabilities 3.2 1,804,184 324
- ------------------ ----------------------------------------------------------------------------------------------------------
Net Assets 100.0% 55,711,706 10,000
================== ==========================================================================================================
* Non-income producing
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS SERIES FUND
December 31, 1995
- -----------------------------------------------------------------------------------------------------------------------
Insured
Intermediate Investment Special Total
Blue Chip Tax Exempt Grade Situations Return
Series Series Series Series Series
- -------------------------------------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities:
At identified cost 136,898,998 7,014,821 47,295,021 109,869,687 46,149,118
============ ========== =========== ============ ===========
At value (Note 1A) 175,440,598 7,405,156 50,001,625 129,622,353 53,907,522
Cash 330,859 28,926 221,518 355,194 191,372
Receivables:
Investment securities sold -- -- -- 90,000 1,319,304
Interest and dividends 273,470 107,455 945,631 25,465 388,170
Trust shares sold 706,460 3,695 181,039 647,379 50,217
Other assets 511 -- 64 32 394
------------ ---------- ------------ ------------ ------------
Total Assets 176,751,898 7,545,232 51,349,877 130,740,423 55,856,979
------------ ---------- ------------ ------------ ------------
Liabilities
Payables:
Dividends payable January 15, 1996 451,999 8,278 68,284 264,262 16,556
Trust shares redeemed 316,480 -- 70,371 392,391 39,879
Investment securities purchased -- 139,581 -- -- --
Accrued advisory fee 109,524 2,138 27,316 80,851 34,710
Accrued expenses 121,079 294 20,466 106,440 54,128
------------ ---------- ------------ ------------ ------------
Total Liabilities 999,082 150,291 186,437 843,944 145,273
------------ ---------- ------------ ------------ ------------
Net Assets $175,752,816 $7,394,941 $51,163,440 $129,896,479 $55,711,706
============ ========== =========== ============ ===========
Net Assets Consist of:
Capital paid in 136,917,426 7,213,817 48,444,877 110,143,813 47,765,707
Undistributed net investment income 293,790 2,168 36,959 -- 190,956
Accumulated net realized loss on
investment transactions -- (211,379) (25,000) -- (3,361)
Net unrealized appreciation in value
of investments 38,541,600 390,335 2,706,604 19,752,666 7,758,404
------------ ---------- ------------ ------------ ------------
Total 175,752,816 7,394,941 51,163,440 129,896,479 55,711,706
============ ========== ============ ============ ============
Trust shares outstanding (Note 2):
Class A 9,889,591 1,199,030 4,833,770 6,384,238 4,273,021
Class B 319,466 64,576 112,740 233,987 20,870
Net asset value and redemption
price per share--Class A $17.22 $5.85 $10.34 $19.63 $12.97
====== ===== ====== ====== ======
Maximum offering price per share--Class A
(Net asset value/.9375)* $18.37 $6.24 $11.03 $20.94 $13.83
====== ===== ====== ====== ======
Net asset value and offering price
per share--Class B $17.16 $5.85 $10.35 $19.51 $12.92
====== ===== ====== ====== ======
*On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS SERIES FUND
Year Ended December 31, 1995
- --------------------------------------------------------------------------------------------------------------------
Insured
Intermediate Investment Special Total
Blue Chip Tax Exempt Grade Situations Return
Series Series Series Series Series
- ------------------------------------ ------------ ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Interest $713,848 $360,538 $3,576,142 $1,334,007 $1,889,963
Dividends 3,310,436 -- -- 332,633 566,696
Consent fees -- -- 68,783 -- --
----------- -------- ---------- ----------- -----------
Total income 4,024,284 360,538 3,644,925 1,666,640 2,456,659
----------- -------- ---------- ----------- -----------
Expenses (Note 4):
Advisory fee 1,483,159 38,356 363,919 1,105,516 528,053
Shareholder servicing costs 476,636 7,523 135,205 458,571 185,483
Distribution plan expenses--Class A 438,127 18,835 144,194 325,418 158,092
Distribution plan expenses--Class B 22,735 1,143 4,572 20,788 1,076
Reports and notices to shareholders 75,194 701 10,859 82,274 30,332
Professional fees 33,525 8,446 12,507 19,957 19,156
Custodian fees 22,756 1,868 8,699 21,321 24,788
Other expenses 45,217 2,596 15,443 29,535 17,677
----------- -------- ---------- ----------- -----------
Total expenses 2,597,349 79,468 695,398 2,063,380 964,657
Less: Expenses waived or assumed (370,790) (55,950) (179,800) (276,379) (132,013)
Custodian fees paid indirectly (16,780) -- (8,270) (21,316) --
----------- -------- ---------- ----------- -----------
Net expenses 2,209,779 23,518 507,328 1,765,685 832,644
----------- -------- ---------- ----------- -----------
Net investment income (loss) 1,814,505 337,020 3,137,597 (99,045) 1,624,015
----------- -------- ---------- ----------- -----------
Realized and Unrealized Gain (Loss)
on Investments (Note 3):
Net realized gain (loss) on investments 5,979,563 (12) 67,631 4,776,742 1,809,004
Net unrealized appreciation
of investments 34,678,998 454,526 5,383,848 17,856,965 8,913,490
----------- -------- ---------- ----------- -----------
Net gain on investments 40,658,561 454,514 5,451,479 22,633,707 10,722,494
----------- -------- ---------- ----------- -----------
Net Increase in Net Assets Resulting
from Operations $42,473,066 $791,534 $8,589,076 $22,534,662 $12,346,509
=========== ======== ========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS SERIES FUND
- --------------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE
BLUE CHIP SERIES TAX EXEMPT SERIES
------------------------------------------------------------------
Year Ended December 31 1995 1994 1995 1994
- ------------------------------------------------ ------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $1,814,505 $969,020 $337,020 $204,046
Net realized gain (loss) on investments 5,979,563 12,824,558 (12) (211,367)
Net unrealized appreciation (depreciation) of investments 34,678,998 (17,486,358) 454,526 (64,191)
------------ ------------ ---------- ----------
Net increase (decrease) in net assets resulting
from operations 42,473,066 (3,692,780) 791,534 (71,512)
------------ ------------ ---------- ----------
Distributions to Shareholders:
From net investment income--Class A (1,794,647) (736,036) (330,471) (203,201)
From net investment income--Class B (28,155) -- (5,226) --
From net realized gain on investments--Class A (5,794,467) (12,824,558) -- --
From net realized gain on investments--Class B (185,096) -- -- --
In excess of realized gain from security
transactions--Class A -- -- -- --
In excess of realized gain from security
transactions--Class B -- -- -- --
------------ ------------ ---------- ----------
Total distributions (7,802,365) (13,560,594) (335,697) (203,201)
------------ ------------ ---------- ----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 30,855,778 28,516,378 1,707,243 5,941,925
Value of distributions reinvested 7,124,835 13,336,027 251,295 146,538
Cost of shares redeemed (25,713,861) (18,834,076) (1,080,698) (1,741,446)
------------ ------------ ---------- ----------
12,266,752 23,018,329 877,840 4,347,017
------------ ------------ ---------- ----------
Class B:
Proceeds from shares sold 5,044,595 -- 372,887 --
Value of distributions reinvested 211,655 -- 2,826 --
Cost of shares redeemed (134,770) -- (2,000) --
------------ ------------ ---------- ----------
5,121,480 -- 373,713 --
------------ ------------ ---------- ----------
Net increase (decrease) from trust share transactions 17,388,232 23,018,329 1,251,553 4,347,017
------------ ------------ ---------- ----------
Net increase (decrease) in net assets 52,058,933 5,764,955 1,707,390 4,072,304
Net Assets
Beginning of year 123,693,883 117,928,928 5,687,551 1,615,247
------------ ------------ ---------- ----------
End of year+ $175,752,816 $123,693,883 $7,394,941 $5,687,551
============ ============ ========== ==========
+Includes undistributed net investment income of 293,790 302,087 2,168 845
============ ============ ========== ==========
(a)Trust shares issued and redeemed
Class A:
Sold 1,958,324 1,859,807 298,216 1,055,065
Issued for distributions reinvested 408,815 987,102 43,763 26,577
Redeemed (1,667,553) (1,228,162) (189,523) (314,040)
------------ ------------ ---------- ----------
Net increase (decrease) in Class A shares outstanding 699,586 1,618,747 152,456 767,602
============ ============ ========== ==========
Class B:
Sold 315,310 -- 64,431 --
Issued for distributions reinvested 11,994 -- 489 --
Redeemed (7,838) -- (344) --
------------ ------------ ---------- ----------
Net increase in Class B shares outstanding 319,466 -- 64,576 --
============ ============ ========== ==========
<CAPTION>
Statement of Changes in Net Assets (Continued)
FIRST INVESTORS SERIES FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE SPECIAL SITUATION
SERIES SERIES
------------------------------------------------------------------
Year Ended December 31 1995 1994 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $3,137,597 $3,018,267 ($99,045) ($191,338)
Net realized gain (loss) on investments 67,631 (77,604) 4,776,742 4,914,240
Net unrealized appreciation (depreciation) of investments 5,383,848 (5,141,298) 17,856,965 (7,165,669)
----------- ----------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations 8,589,076 (2,200,635) 22,534,662 (2,442,767)
----------- ----------- ------------ -----------
Distributions to Shareholders:
From net investment income--Class A (3,128,539) (2,986,294) -- --
From net investment income--Class B (26,151) -- -- --
From net realized gain on investments--Class A -- -- (4,513,641) (4,722,934)
From net realized gain on investments--Class B -- -- (164,734) --
In excess of realized gain from security
transactions--Class A (14,684) -- -- --
In excess of realized gain from security
transactions--Class B (343) -- -- --
----------- ----------- ------------ -----------
Total distributions (3,169,717) (2,986,294) (4,678,375) (4,722,934)
----------- ----------- ------------ -----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 7,877,385 11,602,927 33,124,063 44,120,605
Value of distributions reinvested 2,435,394 2,283,004 4,251,850 4,695,874
Cost of shares redeemed (11,876,289) (11,027,449) (19,660,248) (10,892,979)
----------- ----------- ------------ -----------
(1,563,510) 2,858,482 17,715,665 37,923,500
----------- ----------- ------------ -----------
Class B:
Proceeds from shares sold 1,166,562 -- 4,418,828 --
Value of distributions reinvested 18,187 -- 162,263 --
Cost of shares redeemed (56,045) -- (162,649) --
----------- ----------- ------------ -----------
1,128,704 -- 4,418,442 --
----------- ----------- ------------ -----------
Net increase (decrease) from trust share transactions (434,806) 2,858,482 22,134,107 37,923,500
----------- ----------- ------------ -----------
Net increase (decrease) in net assets 4,984,553 (2,328,447) 39,990,394 30,757,799
Net Assets
Beginning of year 46,178,887 48,507,334 89,906,085 59,148,286
----------- ----------- ------------ -----------
End of year+ $51,163,440 $46,178,887 $129,896,479 $89,906,085
=========== =========== ============ ===========
+Includes undistributed net investment income of 36,959 54,052 -- --
=========== =========== ============ ===========
(a)Trust shares issued and redeemed
Class A:
Sold 798,381 1,196,162 1,771,857 2,520,975
Issued for distributions reinvested 245,208 238,751 211,325 285,811
Redeemed (1,206,098) (1,136,131) (1,071,368) (620,009)
----------- ----------- ------------ -----------
Net increase (decrease) in Class A shares outstanding (162,509) 298,782 911,814 2,186,777
=========== =========== ============ ===========
Class B:
Sold 116,443 -- 234,052 --
Issued for distributions reinvested 1,794 -- 8,109 --
Redeemed (5,497) -- (8,174) --
----------- ----------- ------------ -----------
Net increase in Class B shares outstanding 112,740 -- 233,987 --
=========== =========== ============ ===========
<CAPTION>
Statement of Changes in Net Assets (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN
SERIES
-----------------------------------
Year Ended December 31 1995 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $1,624,015 $1,050,441
Net realized gain (loss) on investments 1,809,004 1,748,894
Net unrealized appreciation (depreciation) of investments 8,913,490 (4,665,923)
----------- -----------
Net increase (decrease) in net assets resulting
from operations 12,346,509 (1,866,588)
----------- -----------
Distributions to Shareholders:
From net investment income--Class A (1,523,212) (881,057)
From net investment income--Class B (3,901) --
From net realized gain on investments--Class A (1,800,205) (1,748,894)
From net realized gain on investments--Class B (8,799) --
In excess of realized gain from security transactions--Class A (3,345) --
In excess of realized gain from security transactions--Class B (16) --
----------- -----------
Total distributions (3,339,478) (2,629,951)
----------- -----------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 3,426,577 5,931,145
Value of distributions reinvested 3,303,023 2,614,430
Cost of shares redeemed (10,998,541) (11,511,286)
----------- -----------
(4,268,941) (2,965,711)
----------- -----------
Class B:
Proceeds from shares sold 247,304 --
Value of distributions reinvested 12,704 --
Cost of shares redeemed -- --
----------- -----------
260,008 --
----------- -----------
Net increase (decrease) from trust share transactions (4,008,933) (2,965,711)
----------- -----------
Net increase (decrease) in net assets 4,998,098 (7,462,250)
Net Assets
Beginning of year 50,713,608 58,175,858
----------- -----------
End of year+ $55,711,706 $50,713,608
=========== ===========
+Includes undistributed net investment income of 190,956 123,612
=========== ===========
(a)Trust shares issued and redeemed
Class A:
Sold 279,476 509,492
Issued for distributions reinvested 252,244 237,905
Redeemed (913,524) (991,334)
----------- -----------
Net increase (decrease) in Class A shares outstanding (381,804) (243,937)
=========== ===========
Class B:
Sold 19,916 --
Issued for distributions reinvested 954 --
Redeemed -- --
----------- -----------
Net increase in Class B shares outstanding 20,870 --
=========== ===========
See notes to financial statements
</TABLE>
Notes to Financial Statements
FIRST INVESTORS SERIES FUND
1. Significant Accounting Policies--The Fund, a Massachusetts business
trust, is registered under the Investment Company Act of 1940 (the "1940
Act") as a diversified, open-end management investment company. The Fund
operates as a series fund, issuing shares of beneficial interest in the
Blue Chip, Insured Intermediate Tax Exempt, Investment Grade, Special
Situations and Total Return Series and accounts separately for the
assets, liabilities and operations of each Series. The objective of each
Series is as follows:
Blue Chip Series seeks to provide investors with high total investment
return consistent with the preservation of capital.
Insured Intermediate Tax Exempt Series seeks to provide a high level of
interest income which is exempt from federal income tax.
Investment Grade Series seeks to generate a maximum level of income
consistent with investment in investment grade debt securities.
Special Situations Series seeks long-term growth of capital.
Total Return Series seeks to provide investors with high long-term total
investment return consistent with moderate investment risk.
A. Security Valuation--Except as provided below, a security listed or
traded on an exchange or the
NASDAQ National Market System is valued at its last sale price on the
exchange or system where the security is principally traded, and lacking
any sales, the security is valued at the mean between the closing bid
and asked prices. Each security traded in the over-the-counter market
(including securities listed on exchanges whose primary market is
believed to be over-the-counter) is valued at the mean between the last
bid and asked prices based upon quotes furnished by a market maker for
such securities. 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 corporate notes which are purchased at a discount 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
Fund's officers in a manner specifically authorized by the trustees of
the Fund.
The municipal bonds in which the Insured Intermediate Tax Exempt Series
invests are traded primarily in the over-the-counter markets. Such
securities are valued daily on the basis of valuations provided by a
pricing service approved by the Board of Trustees. The pricing service
considers security type, rating, market condition and yield data, as
well as market quotations and prices provided by market makers in
determining value. "When Issued Securities" are reflected in the assets
of the Series as of the date the securities are purchased.
The municipal bonds held by the Insured Intermediate Tax Exempt Series
are insured as to payment of principal and interest by the issuer or
under insurance policies written by independent insurance companies. It
is the intention of the Series to retain any insured securities which
are in default or in significant risk of default and to place a value on
the defaulted securities equal to the value of similar securities which
are not in default. The Series may invest up to 20% of its assets in
portfolio securities not covered by the insurance feature.
B. Federal Income Taxes--No provision has been made for federal income
taxes on net income or capital gains since it is the policy of each
Series to continue to comply with the special provisions of the Internal
Revenue Code applicable to investment companies and to make sufficient
distributions of income and capital gains (in excess of any available
capital loss carryovers), to relieve it from all, or substantially all,
federal income taxes. At December 31, 1995, the Insured Intermediate Tax
Exempt Series had capital loss carryovers of $211,379, of which $160,056
expires in 2002 and $51,323 expires in 2003.
C. Distributions to Shareholders--Dividends from net investment income
of the Insured Intermediate Tax Exempt Series and the Investment Grade
Series are declared daily and paid monthly. Dividends from net
investment income of the Blue Chip Series and Total Return Series are
declared and paid quarterly and dividends from net investment income of
the Special Situations Series are declared and paid annually.
Distributions from net realized capital gains of all Series are normally
declared and paid annually. Income dividends and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments for net operating
losses, tax-exempt interest, capital loss carryforwards and post October
losses.
D. Expense Allocation--Expenses directly charged or attributable to a
Series are paid from the assets of that Series. General expenses of
First Investors Series Fund are allocated among and charged to the
assets of each Series on a fair and equitable basis, which may be based
on the relative assets of each Series or the nature of the services
performed and relative applicability to each Series.
E. 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 both financial
statement and federal income tax purposes. Dividend income is recorded
on the ex-dividend date. Interest income and estimated expenses are
accrued daily. The Series' Custodian, except for the Total Return
Series, has provided credits in the amount of $48,234 against custodian
charges based on the uninvested cash balances of the Series.
2. Capital--Each Series sells two classes of shares, Class A and Class
B, each with a public offering price that reflects different sales
charges and expense levels. Class A shares are sold with an initial
sales charge of up to 6.25% of the amount invested and together with the
Class B shares are subject to 12b-1 fees as described in Note 4. Class B
shares are sold without an initial sales charge, but are generally
subject to a contingent deferred sales charge which declines in steps
from 4% to 0% over a six-year period. Class B shares automatically
convert into Class A shares after eight years. Realized and unrealized
gains or losses, investment income and expenses (other than 12b-1 fees
and certain other class expenses) are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
The Fund has established an unlimited number of shares of beneficial
interest for both Class A and Class B shares.
3. Security Transactions--For the year ended December 31, 1995,
purchases and sales of securities and long-term U.S. Government
obligations, excluding U.S. Treasury bills and short-term corporate
notes, were as follows:
<TABLE>
<CAPTION>
Long-Term U.S.
Securities Government Obligations
-------------------------- ------------------------
Cost of Proceeds Cost of Proceeds
SERIES Purchases of Sales Purchases of Sales
- -------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
BLUE CHIP $50,645,807 $33,628,777 $ -- $ --
INSURED INTERMEDIATE
TAX EXEMPT 4,417,918 2,920,322 -- --
INVESTMENT GRADE 9,712,673 7,876,833 4,466,812 4,332,499
SPECIAL SITUATIONS 81,314,327 70,267,419 -- --
TOTAL RETURN 44,528,856 47,398,508 21,160,001 13,546,797
</TABLE>
<TABLE>
<CAPTION>
At December 31, 1995, aggregate cost and net unrealized appreciation of
securities for federal income tax purposes were as follows:
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
SERIES Cost Appreciation Depreciation Appreciation
- -------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
BLUE CHIP $136,898,998 $40,615,061 $2,073,461 $38,541,600
INSURED INTERMEDIATE
TAX EXEMPT 7,014,821 391,826 1,491 390,335
INVESTMENT GRADE 47,295,021 2,736,931 30,327 2,706,604
SPECIAL SITUATIONS 109,869,687 24,612,371 4,859,705 19,752,666
TOTAL RETURN 46,152,479 8,287,636 532,593 7,755,043
</TABLE>
4. Advisory Fee and Other Transactions With Affiliates --Certain
officers and trustees of the Fund are officers and directors of its
investment adviser, First Investors Management Company, Inc. ("FIMCO"),
its underwriter, First Investors Corporation ("FIC"), its transfer
agent, Administrative Data Management Corp. ("ADM") and/or First
Financial Savings Bank, S.L.A. ("FFS"), custodian of the Fund's
Individual Retirement Accounts. Officers and trustees of the Fund
received no remuneration from the Fund for serving in such capacities.
Their remuneration (together with certain other expenses of the Fund) is
paid by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO for
each Series other than the Insured Intermediate Tax Exempt Series and
the Investment Grade Series, an annual fee, payable monthly, at the rate
of 1% on the first $200 million of each Series' average daily net
assets, .75% on the next $300 million, declining by .03% on each $250
million thereafter, down to .66% on average daily net assets over $1
billion. The annual fee for the Insured Intermediate Tax Exempt Series
is payable monthly, at the rate of .60% of the Series' average daily net
assets. The annual fee for the Investment Grade Series is payable
monthly, at the rate of .75% on the first $300 million of the Series'
average daily net assets, .72% on the next $200 million, .69% on the
next $250 million, and .66% on average daily net assets over $750
million. Total advisory fees accrued to FIMCO for the year ended
December 31, 1995, were $3,519,003, of which $843,687 was waived. In
addition, expenses of the Insured Intermediate Tax Exempt and Investment
Grade Series amounting to $11,742 and $51,516, respectively, were
assumed by FIMCO.
Pursuant to certain state regulations, FIMCO has agreed to reimburse
each Series if and to the extent that the Series' aggregate operating
expenses, including advisory fees but generally excluding interest,
taxes, brokerage commissions and extraordinary expenses, exceed any
limitation on expenses applicable to each Series in those states (unless
waivers of such limitations have been obtained). The amount of any such
reimbursement is limited to each Series' yearly advisory fee. For the
year ended December 31, 1995, no reimbursement was required pursuant to
these provisions.
For the year ended December 31, 1995, FIC, as underwriter, received
$3,281,399 in commissions from the sale of Fund shares after allowing
$53,159 to other dealers. Shareholder servicing costs included $904,483
in transfer agent fees and out of pocket expenses accrued to ADM (of
which $54,409 was waived by ADM) and $358,935 in custodian fees accrued
to FFS (of which $32,875 was waived by FFS).
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940
Act, each Series is authorized to pay FIC a fee equal to .30% of the
average net assets of the Class A shares and 1% of the average net
assets of the Class B shares on an annualized basis each year, payable
monthly. The fee consists of a distribution fee and a service fee. The
service fee is paid for the ongoing servicing of clients who are
shareholders of that Series. Total 12b-1 fees accrued to FIC amounted to
$1,134,980 (of which $18,835 was waived).
This page intentionally left blank.
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS SERIES FUND
The following table sets forth the per share operating performance data for a share of beneficial
interest outstanding,total return, ratios to average net assets and other supplemental data for
each period indicated.
- ---------------------------------------------------------------------------------------------------
Per Share Data
-----------------------------------------------------------------------
Income from Investment Operations
-----------------------------------------------------------------------
Net Asset
Value Net Realized
------ Net and Unrealized Total from
Beginning Investment Gain (Loss) on Investment
of Period Income Investments Operations
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Blue Chip Series
- ----------------
Class A
- -------
1/3/89* to 12/31/89 $11.13 $.50 $1.18 $1.68
1990 12.41 .32 (.74) (.42)
1991 11.64 .21 2.96 3.17
1992 14.59 .13 .82 .95
1993 15.29 .10 1.08 1.18
1994 15.58 .11 (.58) (.47)
1995 13.46 .19 4.37 4.56
Class B
- -------
1/12/95* to 12/31/95 13.51 .10 4.31 4.41
Insured Intermediate
Tax exempt series
- -----------------
Class A
- -------
11/22/93* to 12/31/93 5.79 -- -- --
1994 5.79 .24 (.36) (.12)
1995 5.43 .30 .42 .72
Class B
1/12/95* to 12/31/95 5.45 .25 .41 .66
Investment Grade Series
- -----------------------
Class A
- -------
2/19/91* to 12/31/91 9.31 .57 .67 1.24
1992 9.93 .71 .04 .75
1993 9.90 .65 .50 1.15
1994 10.33 .62 (1.09) (.47)
1995 9.24 .64 1.10 1.74
Class B
- -------
1/12/95* to 12/31/95 9.26 .54 1.10 1.64
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------------------------
Less Distribution From
-----------------------------------------------------------------------
Net Asset
Value
Net Net Net -------
Investment Realized Total End of
Income Gains Distributions Period
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Blue Chip Series
- ----------------
Class A
- -------
1/3/89* to 12/31/89 $.40 $ -- $.40 $12.41
1990 .35 -- .35 11.64
1991 .22 -- .22 14.59
1992 .13 .12 .25 15.29
1993 .10 .79 .89 15.58
1994 .09 1.56 1.65 13.46
1995 .20 .60 .80 17.22
Class B
- -------
1/12/95* to 12/31/95 .16 .60 .76 17.16
Insured Intermediate
Tax exempt series
- -----------------
Class A
- -------
11/22/93* to 12/31/93 -- -- -- 5.79
1994 .24 -- .24 5.43
1995 .30 -- .30 5.85
Class B
1/12/95* to 12/31/95 .26 -- .26 5.85
Investment Grade Series
- -----------------------
Class A
- -------
2/19/91* to 12/31/91 .57 .05 .62 9.93
1992 .72 .06 .78 9.90
1993 .65 .07 .72 10.33
1994 .62 -- .62 9.24
1995 .64 -- .64 10.34
Class B
- -------
1/12/95* to 12/31/95 .55 -- .55 10.35
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------
Ratio to Average Net Assets++
-----------------------------------------------------------------------
Net
Total Net Assets Investment
Return** End of Period Expenses Income
(%) (in thousands) (%) (%)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Blue Chip Series
- ----------------
Class A
- -------
1/3/89* to 12/31/89 15.40 $ 27,212 $ .02 3.72
1990 (3.50) 55,816 .77 2.57
1991 27.52 79,932 1.28 1.63
1992 6.56 99,501 1.46 .95
1993 7.77 117,929 1.48 .66
1994 (3.02) 123,694 1.54 .80
1995 34.01 170,271 1.49 1.22
Class B
- -------
1/12/95* to 12/31/95 32.76 5,481 2.20+ .53+
Insured Intermediate
Tax exempt series
- -----------------
Class A
- -------
11/22/93* to 12/31/93 .00 1,615 -- .54+
1994 (2.05) 5,688 .14 4.52
1995 13.50 7,017 .35 5.29
Class B
- -------
1/12/95* to 12/31/95 12.27 378 1.35+ 4.44+
Investment Grade Series
- -----------------------
Class A
- -------
2/19/91* to 12/31/91 15.70+ 18,153 -- 7.79+
1992 7.83 37,922 .57 7.20
1993 11.82 48,507 .86 6.27
1994 (4.62) 46,179 .95 6.46
1995 19.40 49,997 1.10 6.41
Class B
- -------
1/12/95* to 12/31/95 18.08 1,167 1.80+ 5.91+
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------
Ratio to Average Net Assets Before Expenses
Waived or Assumed
-----------------------------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Blue Chip Series
- ----------------
Class A
- -------
1/3/89* to 12/31/89 1.48 2.26 49
1990 1.88 1.46 49
1991 1.78 1.14 31
1992 1.73 .67 44
1993 1.73 .41 39
1994 1.79 .55 82
1995 1.74 .97 25
Class B
- -------
1/12/95* to 12/31/95 2.46+ .26+ 25
Insured Intermediate
Tax exempt series
- -----------------
Class A
- -------
11/22/93* to 12/31/93 1.78+ (1.24)+ 0
1994 .96 3.70 210
1995 1.22 4.42 47
Class B
- -------
1/12/95* to 12/31/95 2.22+ 3.54+ 47
Investment Grade Series
- -----------------------
Class A
- -------
2/19/91* to 12/31/91 1.48+ 6.31+ 51
1992 1.41 6.36 44
1993 1.40 5.73 38
1994 1.47 5.94 17
1995 1.43 6.09 27
Class B
- -------
1/12/95* to 12/31/95 2.13+ 5.57+ 27
* Commencement of operations of Class A shares or date Class B shares first offered
** Calculated without sales charge
+ Annualized
++ Net of expenses waived or assumed by the investment adviser
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
FIRST INVESTORS SERIES FUND
The following table sets forth the per share operating performance data for a share of beneficial
interest outstanding,total return, ratios to average net assets and other supplemental data for
each period indicated.
- ---------------------------------------------------------------------------------------------------
Per Share Data
-----------------------------------------------------------------------
Income from Investment Operations
-----------------------------------------------------------------------
Net Asset
Value Net Realized
------ Net and Unrealized Total from
Beginning Investment Gain (Loss) on Investment
of Period Income Investments Operations
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special Situations Series
- -------------------------
Class A
- -------
9/18/90* to 12/31/90 $ 9.31 $.09 $ .27 $ .36
1991 9.58 .10 4.74 4.84
1992 13.99 -- 2.41 2.41
1993 15.62 (.08) 3.29 3.21
1994 18.00 (.04) (.62) (.66)
1995 16.43 (.01) 3.94 3.93
Class B
- -------
1/12/95* to 12/31/95 16.40 (.01) 3.85 3.84
Total Return Series
- -------------------
Class A
- -------
4/24/90* to 12/31/90 11.17 .32 (.12) .20
1991 11.05 .37 1.97 2.34
1992 12.93 .27 (.41) (.14)
1993 12.49 .26 .63 .89
1994 11.88 .21 (.62) (.41)
1995 10.89 .39 2.50 2.89
Class B
- -------
1/12/95* to 12/31/95 10.90 .25 2.54 2.79
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------------------------
Less Distribution From
-----------------------------------------------------------------------
Net Asset
Value
Net Net Net -------
Investment Realized Total End of
Income Gains Distributions Period
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special Situations Series
- -------------------------
Class A
- -------
9/18/90* to 12/31/90 $.09 $ -- $.09 $9.58
1991 .10 .33 .43 13.99
1992 -- .78 .78 15.62
1993 -- .83 .83 18.00
1994 -- .91 .91 16.43
1995 -- .73 .73 19.63
Class B
- -------
1/12/95* to 12/31/95 -- .73 .73 19.51
Total Return Series
- -------------------
Class A
- -------
4/24/90* to 12/31/90 .32 -- .32 11.05
1991 .34 .12 .46 12.93
1992 .30 -- .30 12.49
1993 .26 1.24 1.50 11.88
1994 .19 .39 .58 10.89
1995 .37 .44 .81 12.97
Class B
- -------
1/12/95* to 12/31/95 .33 .44 .77 12.92
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------
Ratio to Average Net Assets++
-----------------------------------------------------------------------
Net
Total Net Assets Investment
Return** End of Period Expenses Income
(%) (in thousands) (%) (%)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special Situations Series
- -------------------------
Class A
- -------
9/18/90* to 12/31/90 13.58+ $1,321 -- 3.93+
1991 50.47 9,183 -- 1.44
1992 17.26 25,814 1.06 (.05)
1993 20.52 59,148 1.55 (.63)
1994 (3.66) 89,906 1.65 (.26)
1995 23.92 125,331 1.60 (.10)
Class A
- -------
1/12/95* to 12/31/95 23.42 4,566 2.33+ (.86)+
Total Return Series
- -------------------
Class A
- -------
4/24/90* to 12/31/90 2.67+ 41,499 -- 5.85+
1991 21.51 60,888 .83 3.20
1992 (1.00) 65,537 1.29 2.25
1993 7.18 58,176 1.45 2.00
1994 (3.45) 50,714 1.63 1.91
1995 26.71 55,442 1.58 3.08
Class B
- -------
1/12/95* to 12/31/95 25.74 270 2.41+ 2.32+
<CAPTION>
Financial Highlights (Continued)
FIRST INVESTORS SERIES FUND
- ---------------------------------------------------------------------------------
Ratio to Average Net Assets Before Expenses
Waived or Assumed
-----------------------------------------------------
Net Portfolio
Investment Turnover
Expenses Income Rate
(%) (%) (%)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Special Situations Series
- -------------------------
Class A
- -------
9/18/90* to 12/31/90 2.74+ 1.19+ 0
1991 2.31 (.87) 86
1992 1.92 (.91) 88
1993 1.89 (.96) 71
1994 1.90 (.51) 53
1995 1.85 (.35) 80
Class B
- -------
1/12/95* to 12/31/95 2.59+ (1.12)+ 80
Total Return Series
- -------------------
Class A
- -------
4/24/90* to 12/31/90 2.11+ 3.74+ 13
1991 1.88 2.14 51
1992 1.78 1.76 75
1993 1.83 1.62 131
1994 1.88 1.66 124
1995 1.83 2.83 135
Class B
- -------
1/12/95* to 12/31/95 2.67+ 2.05+ 135
*Commencement of operations of Class A shares or date Class B shares first offered
**Calculated without sales charge
+Annualized
++Net of expenses waived or assumed by the investment adviser
See notes to financial statements
</TABLE>
Independent Auditor's Report
To the Shareholders and Trustees of
First Investors Series Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the Blue Chip, Insured
Intermediate Tax Exempt, Investment Grade, Special Situations and Total
Return Series (comprising First Investors Series Fund), as of December
31, 1995, the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the periods
indicated thereon. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is
to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the Blue Chip, Insured Intermediate Tax Exempt,
Investment Grade, Special Situations and Total Return Series of First
Investors Series Fund at December 31, 1995, and the results of their
operations, changes in their net assets and financial highlights for
the periods presented, in conformity with generally accepted accounting
principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 31, 1996
FIRST INVESTORS SERIES FUND
Trustees
- --------
James J. Coy
Roger L. Grayson
Glenn O. Head
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- --------
Glenn O. Head
President
Nancy W. Jones
Vice President
Patricia D. Poitra
Vice President
Clark D. Wagner
Vice President
Concetta Durso
Vice President and Secretary
Joseph I. Benedek
Treasurer
Carol Lerner Brown
Assistant Secretary
Shareholder Information
- -----------------------
Investment Adviser
First Investors
Management Company, Inc.
95 Wall Street
New York, NY 10005
Underwriter
First Investors Corporation
95 Wall Street
New York, NY 10005
Custodian
The Bank of New York
48 Wall Street
New York, NY 10286
Custodian (Total Return Series Only)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, PA 19102
It is the Fund's practice to mail only one copy of its annual and semi-
annual reports to any address at which more than one shareholder with
the same last name has indicated that mail is to be delivered.
Additional copies of the reports will be mailed if requested by any
shareholder in writing or by calling 800-423-4026. The Fund will ensure
that separate reports are sent to any shareholder who subsequently
changes his or her mailing address.
This report is authorized for distribution only to existing
shareholders, and, if given to prospective shareholders, must be
accompanied or preceded by the Fund's prospectus.
FIRST
INVESTORS
SERIES FUND
BLUE CHIP SERIES
INSURED INTERMEDIATE
TAX EXEMPT SERIES
INVESTMENT GRADE SERIES
SPECIAL SITUATIONS SERIES
TOTAL RETURN SERIES
ANNUAL
REPORT
DECEMBER 31, 1995
Vertically reading from bottom to top in center of the page the words
"FIRST INVESTORS" appear.
The following language appears to the left of the above language:
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO.1796" in
a box to the right of a circle containing the words "MAILED FROM
ZIP CODE 7379" appears on the righthand side.
The following appears on the lefthand side
FIRST INVESTORS SERIES FUND
95 WALL STREET
NEW YORK, NY 10005
The following appears on the bottom lefthand side
First Investors logo
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIBC103
