FIRST
INVESTORS
SERIES FUND
BLUE CHIP FUND
INSURED INTERMEDIATE
TAX EXEMPT FUND
INVESTMENT GRADE FUND
SPECIAL SITUATIONS FUND
TOTAL RETURN FUND
SEMI-
ANNUAL
REPORT
June 30, 1996
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Portfolio Manager's Letter
FIRST INVESTORS BLUE CHIP FUND
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue
to slow or even enter a recession. Instead the economy accelerated
throughout the first half of the year. After growing at an
annualized rate of only .5% in the fourth quarter of 1995, the
economy expanded at a 2.2% pace during the first quarter of this
year and at an estimated 3.5%-4.0% during the second quarter.
Concern that faster growth would lead to higher inflation
contributed to a sharp rise in interest rates with the yield on
long-term U.S. Treasury bonds increasing from 5.95% to 6.87%.
Despite higher interest rates the stock market continued to rally
with the broad stock market averages hitting record highs during the
second quarter.
The economy was driven by the consumer in the first six months of
1996. Despite early bleak economic forecasts and the continued fear
of job losses due to corporate mergers, acquisitions and downsizing,
consumers continued to spend. On a seasonally adjusted annual basis,
auto sales were at peak levels with a strong outlook for the
remainder of the year. In spite of higher interest rates, sales of
new and existing homes remained strong. The retail sector of the
economy was the strongest sector in the first half of the year,
despite concerns over increasing rates of personal bankruptcies and
credit card delinquencies. Sales at retail stores on all levels,
specialty, department and chain, grew at robust rates. The impact of
consumer spending was evident in the performance of retail and
consumer cyclical stocks in the first half of the year.
The Dow Jones Industrial Average outperformed the broader indices
for the first six months of 1996, reflecting investor preferences
for consistent proven earnings capabilities. For the first half of
the year the top performing sector was Specialty Retail, followed by
the Oil and Gas Drilling and Shoe Retail sectors, respectively.
Overall, the top twenty performers for the first six months of the
year in the S&P 500 were dominated by the retail sectors.
While the investment strategy of your Fund is sector neutral with a
broad representation of securities, stock selection remains the key
to good performance. For the first six months of 1996, stocks
selected as holdings for your Fund in the retail sector included
Talbots, The Gap, Sears, Home Depot, Price/Costco and Wal-Mart. The
Fund also has a solid position in Nike, the world's dominant
athletic shoe manufacturer. In the Oil and Gas Drilling sector the
Fund held positions in Schlumberger, Dresser and Halliburton. The
substantial returns generated by consumer oriented and oil and gas
drilling stocks were somewhat offset by the lackluster performance
of utilities and telecommunication stocks, specifically the Regional
Bell Companies. For the first six months of 1996, the Blue Chip Fund
was up on a net asset value basis 9.1% on Class A shares and 8.7% on
Class B shares compared to the Lipper Growth and Income Funds
Average of 9.2%. During this period, dividends from net investment
income amounted to 9 cents per share on Class A Shares and 3.8 cents
per share on Class B Shares.
The recent bull market in stocks has lasted 69 months, the second
longest bull market in the history of the U.S. stock market. While
investors have enjoyed these gains, it is important to remember that
the stock market tends to be cyclical with periods when stock prices
generally rise and periods when stock prices generally decline. As
well, certain sectors of the market, such as technology stocks, can
be more volatile than the general market, creating greater
opportunities but also greater risks. Investors should be aware of
these risks and recognize that successful investing generally
requires a long-term commitment to the market.
Looking forward, inflation shows few signs of accelerating, despite
the market's concern. In addition, the pace of economic growth is
likely to slow during the second half of the year. A combination of
stable inflation and moderate growth should provide a comfortable
environment for investors throughout the remainder of 1996.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
Patricia D. Poitra
Director of Equities
and Portfolio Manager
July 8, 1996
Portfolio Manager's Letter
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue
to slow or even enter a recession. Instead the economy accelerated
throughout the first half of the year. After growing at an
annualized rate of only .5% in the fourth quarter of 1995, the
economy expanded at a 2.2% pace during the first quarter of this
year and at an estimated 3.5%-4% during the second quarter. Concern
that faster growth would lead to higher inflation contributed to a
sharp rise in interest rates with the yield on long-term U.S.
Treasury bonds increasing from 5.95% to 6.87%. Despite higher
interest rates the stock market continued to rally with the broad
stock market averages hitting record highs during the second
quarter.
Faster economic growth, expectations of inflation, and the failure
of Congress and the President to agree on a balanced budget plan
contributed to a 50 basis point (.5%) increase in long-term
municipal bond yields during the first half of 1996. In comparison,
long-term Treasury bond yields rose almost 1% over the same time
period. The relatively strong performance of the municipal bond
market was attributable to two factors. First, municipal bonds began
the year at attractive levels relative to taxable bonds because of
concern over tax reform. As those concerns diminished, demand for
tax-exempt bonds increased. Second, rising yields increased demand
for municipal bonds as investors took advantage of the highest tax-
exempt interest rates available since August 1995.
During the first half of 1996 the Insured Intermediate Tax Exempt
Fund had a total return on a net asset value basis of -.1% on Class
A shares and -.7% on Class B shares. These returns are comparable to
the average return for intermediate municipal bond funds of -.3%
according to Lipper Analytical Services, Inc. The Fund distributed
dividends from net investment income of 14.2 cents per Class A share
and 11.2 cents per Class B share. Management of the Fund focused on
reducing interest rate exposure to protect the Fund's investments as
the market declined. The Fund accomplished this by slightly
increasing its cash position and by purchasing premium coupon bonds
whose greater income helped offset loss of principal due to rising
interest rates. While the Fund's return over the first half of the
year was slightly negative, investors benefited from the shorter
average maturity of an intermediate fund as compared to long-term
insured bond funds which declined on average 1.8% according to
Lipper Analytical Services, Inc.
Investors who buy bond funds -- whether for income or total return -
- - should be aware that the value of their investment fluctuates as
interest rates change. For example, a 100 basis point (or 1%)
increase in yield on a ten year bond results in roughly a 7%
decrease in that bond's price. In each of the last four years and
the first half of 1996, ten year Treasury bond yields have moved
more than 100 basis points. In addition, while the Fund's municipal
bonds are insured as to timely payment of principal and interest,
this insurance does not protect the bonds against changes in market
value. Investors should be aware of these risks and recognize that
successful investing generally requires a long-term commitment to
the market.
Looking forward, inflation shows few signs of accelerating, despite
the market's concern. In addition, the pace of economic growth is
likely to slow during the second half of the year. A combination of
stable inflation and moderate growth should provide a comfortable
environment for investors throughout the remainder of 1996.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
July 8, 1996
Portfolio Manager's Letter
FIRST INVESTORS INVESTMENT GRADE FUND
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue
to slow or even enter a recession. Instead the economy accelerated
throughout the first half of the year. After growing at an
annualized rate of only .5% in the fourth quarter of 1995, the
economy expanded at a 2.2% pace during the first quarter of this
year and at an estimated 3.5%-4% during the second quarter. Concern
that faster growth would lead to higher inflation contributed to a
sharp rise in interest rates with the yield on long-term U.S.
Treasury bonds increasing from 5.95% to 6.87%. Despite higher
interest rates the stock market continued to rally with the broad
stock market averages hitting record highs during the second
quarter.
The corporate bond market modestly outperformed the Treasury market
but still had a negative return for the six months ended June 30,
1996. The Investment Grade Fund performed on par with its peer group
by returning -2.2% on a net asset value basis on Class A shares and
- -2.6% on Class B shares. In comparison, the average investment grade
bond fund returned -2.3% as measured by Lipper Analytical Services,
Inc. Dividends paid from net investment income amounted to 31 cents
per Class A share and 27.2 cents per Class B share.
Duration is a measurement of interest rate sensitivity and is an
important factor in performance. During the first half of the year,
the Investment Grade Fund maintained a duration similar to that of
its peers. We felt this to be a prudent position given conflicting
economic reports. Longer duration portfolios declined further than
shorter ones.
Portfolio sector selection and credit quality weighting produced
mixed results. A drag on the Fund's return was a small overweighted
position in industrial bonds which underperformed other sectors.
Another modest negative was the smaller than average exposure to
Baa-rated bonds, which generally outperformed higher rated issues.
We chose to hold higher quality paper in the portfolio since spreads
between those and lower rated bonds are at historically tight levels
and we considered the small yield gain inadequate to cover increased
credit risk. These negatives were largely offset by a large
underweighting of Yankee bonds (dollar denominated bonds issued in
the U.S. by foreign countries and corporations), which were the
second worst performers in the corporate bond universe.
Event risk continues to be a major consideration in the evaluation
of individual bonds in the corporate market. Acquisitions and
consolidations have become more frequent and, if financed by debt,
can be detrimental to credit quality. Deconsolidations are another
factor to consider and are much more difficult to predict. Hanson
and Tenneco are two issuers the Fund owns that spun off or sold
major businesses. These transactions produced a slight negative in
the case of Hanson but had a positive impact on the Tenneco
position. Even absent a major event, companies which fail to meet
their own objectives can be downgraded, as in the case of
TeleCommunications, Inc. (TCI). The Fund owned TCI, but sold this
issue before Moody's lowered the company to junk bond status,
causing its value relative to Treasuries to fall dramatically.
The corporate market continues to do well as spreads remain
historically narrow and the market maintains a good supply/demand
relationship. Supply of new corporate issuance has come in
intermittent waves as companies try to obtain the lowest financing
costs. The market has absorbed these surges and occasional large
deals, such as Disney's $2.6 billion dollar issue, with little more
than a blink.
Constant evaluation of credit quality will remain the primary
investment philosophy of the Fund. We will continue to watch overall
economic trends, the underlying business prospects of each borrower,
and the motivation of managements to increase shareholder value
(perhaps at the expense of bondholders) as these are keys to good
credit management.
Investors who buy bond funds -- whether for income or total return -
- - should be aware that the value of their investment fluctuates as
interest rates change. For example, a 100 basis point (or 1%)
increase in yield on a ten year bond results in roughly a 7%
decrease in that bond's price. In each of the last four years and
the first half of 1996, ten year Treasury bond yields have moved
more than 100 basis points. In addition, the value of a fund can
fluctuate based on changes in the credit quality of the bonds which
it holds. Investors should be aware of these risks and recognize
that successful investing generally requires a long-term commitment
to the market.
Looking forward, inflation shows few signs of accelerating, despite
the market's concern. In addition, the pace of economic growth is
likely to slow during the second half of the year. A combination of
stable inflation and moderate growth should provide a comfortable
environment for investors throughout the remainder of 1996.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
Nancy W. Jones
Vice President
and Portfolio Manager
July 8, 1996
Portfolio Manager's Letter
FIRST INVESTORS SPECIAL SITUATIONS FUND
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue
to slow or even enter a recession. Instead the economy accelerated
throughout the first half of the year. After growing at an
annualized rate of only .5% in the fourth quarter of 1995, the
economy expanded at a 2.2% pace during the first quarter of this
year and at an estimated 3.5%-4% in the second quarter. Concern that
faster growth would lead to higher inflation contributed to a sharp
rise in interest rates with the yield on long-term U.S. Treasury
bonds increasing from 5.95% to 6.87%. Despite higher interest rates
the stock market continued to rally with the broad stock market
averages hitting record highs during the second quarter.
In the first half of 1996, the nebulous economic outlook focused
investor sentiment on companies with visible and consistent earnings
patterns. Many large-cap stocks were the beneficiaries of that
sentiment, allowing the large-cap indices to keep pace with those of
the smaller, growth oriented companies. While the Russell 2000
Index, a good measure of small-cap stock performance peaked in May
and ended the first half of the year up 10%, the S&P 500 Index, a
large-cap stock barometer, continued its steady climb finishing up
9% for the same period. As investors became increasingly concerned
over the specter of rising interest rates, many were unwilling to
continue supporting the valuations of some smaller, growth oriented
stocks.
For the six months ended June 30, 1996, the Special Situations Fund,
which primarily invests in small companies, produced a return on a
net asset value basis of 7.4% on Class A shares and 7.0% on Class B
shares versus 14.4% for the Lipper Small Company Growth Funds Index.
With the semiconductor industry facing increased competition and
drastically reduced pricing power, the semiconductor stocks in the
Fund suffered. The Fund was also underweighted in the retail and
energy sectors, both of which generated excellent returns for the
first half of 1996.
The Fund's performance was positively influenced by its holdings of
certain companies in the technology sector. Specifically, the Fund
benefitted from large holdings of companies such as SystemSoft
Corp., Saville Systems PLC and HBO & Co. In the health care area,
there were some tremendous performers, including Arbor Health Care
Co., American HomePatient Inc. and Noven Pharmaceuticals, Inc.
Finally, the Fund has successfully invested in companies that are
growing quickly through acquisitions. U.S. Office Products Co., in
the corporate office supply business, and Rural/Metro Corp., in the
emergency transportation area, are two examples.
The recent bull market in stocks has lasted 69 months, the second
longest bull market in the history of the U.S. stock market. While
investors have enjoyed these gains, it is important to remember that
the stock market tends to be cyclical with periods when stock prices
generally rise and periods when stock prices generally decline. As
well, certain sectors of the market, such as technology stocks, can
be more volatile than the general market, creating greater
opportunities but also greater risks. Investors should be aware of
these risks and recognize that successful investing generally
requires a long-term commitment to the market.
Looking forward, inflation shows few signs of accelerating, despite
the market's concern. In addition, the pace of economic growth is
likely to slow during the second half of the year. A combination of
stable inflation and moderate growth should provide a comfortable
environment for investors throughout the remainder of 1996.
As always, we appreciate the opportunity to serve your investment
needs.
Sincerely,
Patricia D. Poitra
Director of Equities
and Portfolio Manager
July 8, 1996
Portfolio Manager's Letter
FIRST INVESTORS TOTAL RETURN FUND
Dear Investor:
As 1996 began, most investors expected the U.S. economy to continue
to slow or even enter a recession. Instead the economy accelerated
throughout the first half of the year. After growing at an
annualized rate of only .5% in the fourth quarter of 1995, the
economy expanded at a 2.2% pace during the first quarter of this
year and at an estimated 3.5%-4.0% during the second quarter.
Concern that faster growth would lead to higher inflation
contributed to a sharp rise in interest rates with the yield on
long-term U.S. Treasury bonds increasing from 5.95% to 6.87%.
Despite higher interest rates the stock market continued to rally
with the broad stock market averages hitting record highs during the
second quarter.
The Total Return Fund ended the semi-annual reporting period with a
diversified portfolio consisting of 53% stocks, 38% bonds, and 9%
cash. The stock investments include both small and large
capitalization stocks, while the bond investments are diversified
among investment grade and high yield corporate debt, and U.S.
agency obligations. During the first six months of 1996, the Total
Return Fund returned 3.6% on Class A shares on a net asset value
basis and 3.2% on Class B shares. The Fund declared dividends from
net investment income of 18 cents per share on Class A shares and
14.6 cents per share on Class B shares. The average return for
flexible portfolio funds as measured by Lipper Analytical Services,
Inc. was 5.5% for the period. Generally, the Fund benefited from the
strong stock market, while the bond market's decline hampered
performance.
The stock market's performance during the first half of the year
reflected several positive factors. First, the economy and corporate
earnings generally supported higher stock prices. Second, demand for
stocks was extremely strong. Year-to-date through May, net sales of
stock mutual funds exceeded $120 billion, nearly matching net sales
for all of 1995! In addition, through mergers and stock repurchase
programs, corporations bought over $100 billion of stocks in the
first quarter alone.
In contrast to the stock market, investors sold bonds as
expectations of slower growth were dashed by the reality of a
healthy economy. While few signs of inflation were evident,
investors worried that low unemployment and high capacity
utilization would lead to inflation. The bond market's decline also
reflected the belief that the Federal Reserve -- which had begun the
year by lowering short-term interest rates -- would reverse course
and raise rates to prevent the economy from overheating. As a
result, both short and long-term interest rates rose approximately
1% during the first six months of 1996.
The recent bull market in stocks has lasted 69 months, the second
longest bull market in the history of the U.S. stock market. While
investors have enjoyed these gains, it is important to remember that
the stock market tends to be cyclical with periods when stock prices
generally rise and periods when stock prices generally decline. As
well, certain sectors of the market, such as technology stocks, can
be more volatile than the general market, creating greater
opportunities but also greater risks. The bond market can also be
volatile. For example, a 100 basis point (or 1%) increase in yield
on a ten year bond results in roughly a 7% decrease in that bond's
price. In each of the last four years and the first half of 1996,
ten year Treasury bond yields have moved more than 100 basis points.
In addition, the value of a bond can fluctuate based on changes in
its credit quality. Investors should be aware of these risks and
recognize that successful investing generally requires a long-term
commitment to the market.
Looking forward, inflation shows few signs of accelerating, despite
the market's concern. In addition, the pace of economic growth is
likely to slow during the second half of the year. A combination of
stable inflation and moderate growth should provide a comfortable
environment for investors throughout the remainder of 1996.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
Clark D. Wagner
Chief Investment Officer
July 8, 1996
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS BLUE CHIP FUND
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--88.3%
Basic Industry--5.2%
16,300 *Alumax, Inc. $ 495,113 $ 24
10,200 Aluminum Company of America 585,225 28
16,900 Avery Dennison Corporation 927,387 44
27,000 Barrick Gold Corporation 732,375 35
14,900 Dow Chemical Company 1,132,400 54
20,200 Du Pont (E.I.) de Nemours & Company 1,598,325 75
23,700 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 755,437 36
18,200 IMC Global, Inc. 684,775 33
10,400 Mead Corporation 539,500 26
16,100 Minnesota Mining & Manufacturing Company 1,110,900 53
16,500 Monsanto Company 536,250 26
20,300 Morton International, Inc. 756,175 36
9,500 Nucor Corporation 480,937 23
12,100 Sigma-Aldrich Corporation 647,350 31
- --------------------------------------------------------------------------------------------------------------------------------
10,982,149 524
- --------------------------------------------------------------------------------------------------------------------------------
Capital Goods--9.5%
14,100 Boeing Company 1,228,463 59
7,200 Caterpillar, Inc. 487,800 23
13,000 Danaher Corporation 565,500 27
6,100 Eaton Corporation 357,613 17
8,200 Emerson Electric Company 741,075 35
16,100 Fluor Corporation 1,052,537 50
66,000 General Electric Company 5,709,000 272
11,200 General Signal Corporation 424,200 20
15,000 Grainger (W.W.), Inc. 1,162,500 55
23,000 Harnischfeger Industries, Inc. 764,750 36
18,600 Ingersoll-Rand Company 813,750 39
49,000 Laidlaw, Inc. - Class "B" 496,125 24
8,700 Lockheed Martin Corporation 730,800 35
56,400 Loral Space & Communications 768,450 37
19,200 Raytheon Company 991,200 47
26,400 *Tyco International Ltd. 1,075,800 51
9,600 United Technologies Corporation 1,104,000 53
16,000 *Varity Corporation 770,000 37
23,200 WMX Technologies, Inc. 759,800 36
- --------------------------------------------------------------------------------------------------------------------------------
20,003,363 953
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Durables--2.5%
32,400 Corning, Inc. 1,243,350 59
42,500 Ford Motor Company 1,375,937 66
26,400 General Motors Corporation 1,382,700 66
13,350 Goodyear Tire & Rubber Company 644,137 31
19,600 Masco Corporation 592,900 28
- --------------------------------------------------------------------------------------------------------------------------------
5,239,024 250
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--18.1%
32,100 Abbott Laboratories 1,396,350 67
22,400 American Home Products Corporation 1,346,800 64
18,300 Anheuser-Busch Cos., Inc. 1,372,500 65
19,500 Bristol-Myers Squibb Company 1,755,000 84
100,800 Coca-Cola Company 4,926,600 235
16,600 Columbia/HCA Healthcare Corporation 886,025 42
13,900 CPC International, Inc. 1,000,800 48
14,200 Eastman Kodak Company 1,104,050 53
22,400 Eli Lilly & Company 1,456,000 69
10,600 General Mills, Inc. 577,700 28
18,000 Gillette Company 1,122,750 54
26,250 Heinz (H.J.) Company 797,343 38
49,600 Johnson & Johnson 2,455,200 116
8,300 Kellogg Company 607,975 29
14,000 Kimberly-Clark Corporation 1,081,500 52
10,000 Medtronic, Inc. 560,000 27
32,000 Merck & Company, Inc. 2,068,000 99
33,100 Newell Company 1,013,687 48
10,200 Nike, Inc. - Class "B" 1,048,050 50
72,600 PepsiCo, Inc. 2,568,225 121
22,900 Philip Morris Cos., Inc. 2,381,600 114
26,400 Procter & Gamble Company 2,392,500 114
14,200 Schering-Plough Corporation 891,050 42
23,500 *Tenet Healthcare Corporation 502,313 24
10,200 Unilever N.V. 1,480,275 71
10,800 United Healthcare Corporation 545,400 26
11,000 Warner-Lambert Company 605,000 29
- --------------------------------------------------------------------------------------------------------------------------------
37,942,693 1,809
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Services--10.3%
64,400 *Federated Department Stores, Inc. 2,197,650 105
17,600 Home Depot, Inc. 950,400 45
51,600 *Infinity Broadcasting Corporation 1,548,000 74
10,300 ITT Corporation 682,375 33
10,300 ITT Hartford Group, Inc. 548,475 26
15,700 *Kroger Company 620,150 30
11,300 Marriott International, Inc. 607,375 29
24,531 Mattel, Inc 702,200 33
27,200 McDonald's Corporation 1,271,600 60
15,200 McGraw-Hill Companies, Inc. 695,400 33
33,300 *Price/Costco, Inc. 720,113 34
14,100 Sears, Roebuck and Company 685,613 33
35,400 Talbots, Inc. 1,146,075 55
27,925 *Tele-Communications, Inc., Liberty Media Group - Class "A" 740,013 35
42,500 *Tele-Communications, Inc., TCI Group - Class "A" 770,313 37
14,200 Time Warner, Inc. 557,350 27
20,800 Tribune Company 1,510,600 72
13,300 *Viacom, Inc. - Class "B" 517,037 25
17,400 *Vons Companies, Inc. 650,325 31
60,800 Wal-Mart Stores, Inc. 1,542,800 74
13,500 Walgreen Company 452,250 22
25,700 Walt Disney Company 1,615,887 76
36,600 *Woolworth Corporation 823,500 39
- --------------------------------------------------------------------------------------------------------------------------------
21,555,501 1,028
- --------------------------------------------------------------------------------------------------------------------------------
Energy--9.5%
16,600 AlliedSignal, Inc. 948,275 45
18,900 Amoco Corporation 1,367,887 65
28,200 Baker Hughes, Inc. 927,075 44
7,100 Burlington Resources, Inc. 305,300 15
25,000 Chevron Corporation 1,475,000 70
16,000 Dresser Industries, Inc. 472,000 23
26,900 Enron Corporation 1,099,537 52
35,700 Exxon Corporation 3,101,438 148
8,600 Halliburton Company 477,300 23
12,300 Kerr-McGee Corporation 748,763 36
18,900 Mobil Corporation 2,119,163 101
20,600 Royal Dutch Petroleum Company 3,167,250 150
15,100 Schlumberger, Ltd. 1,272,175 61
20,700 Sonat, Inc. 931,500 44
9,400 Texaco, Inc. 788,425 38
23,500 Unocal Corporation 793,125 38
- --------------------------------------------------------------------------------------------------------------------------------
19,994,213 953
- --------------------------------------------------------------------------------------------------------------------------------
Financial--12.4%
18,100 American Express Company 807,713 39
21,200 American International Group, Inc. 2,090,850 100
24,700 American Re Corporation 1,108,413 53
43,340 Banc One Corporation 1,473,560 70
20,800 Bank of Boston Corporation 1,029,600 49
17,400 BankAmerica Corporation 1,318,050 63
31,200 Charles Schwab Corporation 764,400 36
25,852 Chase Manhattan Corporation 1,825,797 87
15,200 Chubb Corporation 758,100 36
24,200 Citicorp 1,999,525 95
14,500 Dean Witter Discover & Company 830,125 40
66,800 Federal National Mortgage Association 2,237,800 107
25,800 First Union Corporation 1,570,575 75
6,600 General Re Corporation 1,004,850 48
81,200 Hibernia Corporation - Class "A" 883,050 42
10,800 Merrill Lynch & Company, Inc. 703,350 34
18,300 NationsBank Corporation 1,512,037 72
36,700 Norwest Corporation 1,279,913 61
23,400 Salomon, Inc. 1,029,600 49
12,200 Torchmark Corporation 533,750 25
73,200 USF&G Corporation 1,198,650 57
- --------------------------------------------------------------------------------------------------------------------------------
25,959,708 1,238
- --------------------------------------------------------------------------------------------------------------------------------
Food Wholesalers--.5%
30,000 Sysco Corporation 1,027,500 49
- --------------------------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--1.0%
100,600 *Cardiovascular Dynamics, Inc. 1,232,350 59
18,300 *Nellcor Puritan Bennett, Inc. 887,550 42
- --------------------------------------------------------------------------------------------------------------------------------
2,119,900 101
- --------------------------------------------------------------------------------------------------------------------------------
Technology--12.3%
60,900 A T & T Corp. 3,775,800 180
19,800 *Adaptec, Inc. 938,025 45
24,000 *Airtouch Communications, Inc. 678,000 32
26,000 *Cisco Systems, Inc. 1,472,250 70
5,600 Computer Associates International, Inc. 399,000 19
22,200 First Data Corporation 1,767,675 84
20,400 Hewlett-Packard Company 2,032,350 97
30,600 Intel Corporation 2,247,187 107
23,500 International Business Machines Corporation 2,326,500 111
20,000 *LSI Logic Corporation 520,000 25
26,100 MCI Communications Corporation 668,813 32
22,500 *Microsoft Corporation 2,702,813 129
15,700 Motorola, Inc. 987,137 47
19,000 *National Semiconductor Corporation 294,500 14
44,325 *Oracle Corporation 1,748,067 83
16,500 *Seagate Technology, Inc. 742,500 35
13,400 Sprint Corporation 562,800 27
17,220 Vishay Intertechnology, Inc. 406,823 19
27,000 Xerox Corporation 1,444,500 69
- --------------------------------------------------------------------------------------------------------------------------------
25,714,740 1,225
- --------------------------------------------------------------------------------------------------------------------------------
Transportation--1.7%
11,800 *AMR Corporation 1,073,800 51
6,200 Burlington Northern, Inc. 501,425 24
1,000 *Genesee & Wyoming, Inc. - Class "A" 20,500 1
34,300 Ryder System, Inc. 964,687 46
15,600 Union Pacific Corporation 1,090,050 52
- --------------------------------------------------------------------------------------------------------------------------------
3,650,462 174
- --------------------------------------------------------------------------------------------------------------------------------
Utilities--5.3%
9,100 Bell Atlantic Corporation 580,125 28
23,200 BellSouth Corporation 983,100 47
23,000 Carolina Power & Light Company 874,000 42
40,000 CINergy Corporation 1,280,000 61
27,600 Duke Power Company 1,414,500 67
33,200 FPL Group, Inc. 1,527,200 73
35,600 GTE Corporation 1,593,100 75
9,700 NYNEX Corporation 460,750 22
26,000 PacifiCorp 578,500 28
12,900 SBC Communications, Inc. 635,325 30
28,000 Texas Utilities Company 1,197,000 57
- --------------------------------------------------------------------------------------------------------------------------------
11,123,600 530
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $136,704,080) 185,312,853 8,834
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--.5%
Consumer Services
$1,500M Bell Sports Corporation, 4 1/4%, 11/15/2000 (cost $1,307,160) $ 1,128,750 $ 54
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--8.9%
2,000M Alabama Power Co., 5.29%, 7/9/96 1,997,649 95
1,200M Bellsouth Telecommunications, Inc., 5.37%, 8/28/96 1,189,618 57
750M Dupont (E.I.) de Nemours & Co., 5.31%, 7/17/96 748,230 36
2,000M McGraw Hill, Inc., 5.4%, 9/24/96 1,974,500 94
4,000M National Rural Utilities Cooperative, 5.35%, 8/8/96 3,977,411 190
1,300M PepsiCo, Inc., 5.24%, 7/2/96 1,299,810 62
2,800M Pitney Bowes Credit Company, Inc., 5.39%, 8/28/96 2,775,686 132
515M Stanley Works, 5.33%, 7/15/96 513,933 24
3,500M Stanley Works, 5.35%, 7/30/96 3,484,915 166
650M Stanley Works, 5.37%, 8/19/96 645,249 31
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $18,607,001) 18,607,001 887
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $156,618,241) 97.7% 205,048,604 9,775
Other Assets, Less Liabilities 2.3 4,724,375 225
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $209,772,979 $10,000
================================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS--97.4%
Alaska--3.1%
$ 200M Anchorage General Obligation 6 1/2%, 7/1/2004 $ 218,500 $ 306
- --------------------------------------------------------------------------------------------------------------------------------
Arizona--7.8%
250M Maricopa County Uni. Sch. Dist. Gen. Oblig. #80 (Chandler) 6.6%, 7/1/2006 276,250 387
250M Phoenix Civic Impt. Corp. Mun. Facs. Excise Tax Rev. 6 3/4%, 7/1/2004 278,438 390
- --------------------------------------------------------------------------------------------------------------------------------
554,688 777
- --------------------------------------------------------------------------------------------------------------------------------
California--2.3%
150M Pittsburg Pub. Fing. Auth. Wastewater Rev. 6.8%, 6/1/2001* 166,125 232
- --------------------------------------------------------------------------------------------------------------------------------
Georgia--1.5%
100M Atlanta Airport Facilities Revenue 6%, 1/1/2003 105,250 147
- --------------------------------------------------------------------------------------------------------------------------------
Hawaii--4.4%
300M Honolulu City & County General Obligation 6%, 11/1/2010 313,875 439
- --------------------------------------------------------------------------------------------------------------------------------
Illinois--31.0%
250M Chicago Board of Education Chicago School Reform 6%, 12/1/2007 263,438 369
250M Chicago General Obligation 6 1/4%, 10/31/2001 267,187 374
250M Chicago Park District 6%, 1/1/2007 262,500 367
200M Chicago Wastewater Transmission Rev. 6 3/4%, 11/15/2000* 219,250 307
Cook County High School District General Obligation #205:
200M Series "A" 5.9%, 12/1/2001* 209,000 292
250M Series "B" 5.4%, 12/1/2001 257,813 361
250M Northwest Subn. Mun. Jt. Action Water Agy. 6.35%, 5/1/2006 269,063 376
400M Regional Transportation Authority 7 3/4%, 6/1/2003 464,000 649
- --------------------------------------------------------------------------------------------------------------------------------
2,212,251 3,095
- --------------------------------------------------------------------------------------------------------------------------------
Indiana--2.3%
150M Valparaiso Indpt. Multi-Schools Bldg. Corp. 6 5/8%, 7/1/2002* 165,562 232
- --------------------------------------------------------------------------------------------------------------------------------
Kentucky--3.7%
200M Louisville & Jefferson County Met. Sewer District 10%, 5/15/2004 262,750 368
- --------------------------------------------------------------------------------------------------------------------------------
Louisiana--2.7%
175M Louisiana General Obligation 7%, 5/1/2001 191,187 267
- --------------------------------------------------------------------------------------------------------------------------------
Michigan--9.6%
1,000M Brighton Area School District General Obligation Zero Cpn. 5/1/2005* 311,250 436
350M Greater Detroit Resources Recovery Authority Revenue 6 1/4%, 12/13/2007 371,875 520
- --------------------------------------------------------------------------------------------------------------------------------
683,125 956
- --------------------------------------------------------------------------------------------------------------------------------
New Jersey--3.1%
200M New Jersey Economic Dev. Auth. Mkt. Transition Fac. Rev. 7%, 7/1/2004 224,250 314
- --------------------------------------------------------------------------------------------------------------------------------
New York--8.8%
New York City General Obligation:
150M 6 5/8%, 8/1/2002* 165,562 232
250M 8%, 8/1/2005 302,500 423
150M Niagara Falls Bridge Commission 6.3%, 10/1/2002* 163,875 229
- --------------------------------------------------------------------------------------------------------------------------------
631,937 884
- --------------------------------------------------------------------------------------------------------------------------------
Ohio--3.1%
200M Columbus City Sch. Dist. General Obligation 6.65%, 12/1/2002* 223,250 312
- --------------------------------------------------------------------------------------------------------------------------------
Pennsylvania--3.1%
200M Pennsylvania Intergovernmental Coop. Auth. Special Tax Rev. 7%, 6/15/2004 225,250 315
- --------------------------------------------------------------------------------------------------------------------------------
Rhode Island--3.1%
200M Rhode Island Depositors Econ. Protection Corp. 7.1%, 8/1/2001* 223,750 313
- --------------------------------------------------------------------------------------------------------------------------------
Texas--4.6%
300M Harris County Toll Road General Obligation 6 1/2%, 8/15/2002* 329,625 461
- --------------------------------------------------------------------------------------------------------------------------------
Washington--3.2%
200M Snohomish & Island Counties School District General Obligation
#401 (Stanwood) 7%, 12/15/2005 227,250 318
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $6,752,358) 6,958,625 9,736
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--1.4 %
100M New York City General Obligation Adjustable Rate Note 3.75%
(cost $100,000)** 100,000 140
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Investments (cost $6,852,358) 98.8% 7,058,625 9,876
Other Assets, Less Liabilities 1.2 88,703 124
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $7,147,328 $10,000
================================================================================================================================
* Municipal Bonds which have been prerefunded are shown maturing at the prerefunded call date.
** Interest rates on Adjustable Rate Notes are determined and reset daily by the issuer. Interest rate shown is the rate in
effect at June 30, 1996.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS INVESTMENT GRADE FUND
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE BONDS--88.5%
Aerospace/Defense--4.6%
$ 700M Boeing Co., 6.35%, 2003 $ 677,421 $ 142
750M Lockheed Martin Corp., 7 1/4%, 2006 745,753 156
750M Rockwell International Corp., 8 3/8%, 2001 797,450 167
- --------------------------------------------------------------------------------------------------------------------------------
2,220,624 465
- --------------------------------------------------------------------------------------------------------------------------------
Apparel/Textiles--.6%
250M VF Corp., 9 1/2%, 2001 274,525 57
- --------------------------------------------------------------------------------------------------------------------------------
Building Materials--1.4%
600M Masco Corp., 9%, 2001 652,336 137
- --------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.7%
250M Arco Chemical Co., 9.9%, 2000 277,635 58
750M Du Pont (E.I.) de Nemours & Co., 8 1/8%, 2004 802,844 168
700M Lubrizol Corp., 7 1/4%, 2025 667,080 140
- --------------------------------------------------------------------------------------------------------------------------------
1,747,559 366
- --------------------------------------------------------------------------------------------------------------------------------
Conglomerates--3.1%
700M Hanson Overseas, B.V., 7 3/8%, 2003 702,660 147
750M Tenneco, Inc., 7 7/8%, 2002 772,871 162
- --------------------------------------------------------------------------------------------------------------------------------
1,475,531 309
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.5%
700M American Home Products Corp., 7.9%, 2005 733,571 154
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Products--2.6%
1,250M Mattel, Inc., 6 3/4%, 2000 1,242,885 260
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Services--1.4%
700M Walt Disney Co., 6 3/4%, 2006 677,989 142
- --------------------------------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--11.2%
750M Baltimore Gas & Electric Co., 6 1/2%, 2003 728,854 153
600M Commonwealth Edison, 8 1/4%, 2006 625,342 131
1,000M Duke Power Co., 5 7/8%, 2003 933,470 196
800M Kansas Gas & Electric Co., 7.6%, 2003 818,123 171
525M Old Dominion Electric Cooperative, 7.97%, 2002 541,706 113
750M Philadelphia Electric Co., 8%, 2002 779,324 163
925M Southwestern Electric Power Co., 7%, 2007 913,176 191
- --------------------------------------------------------------------------------------------------------------------------------
5,339,995 1,118
- --------------------------------------------------------------------------------------------------------------------------------
Energy--1.5%
700M Baroid Corp., 8%, 2003 739,196 155
- --------------------------------------------------------------------------------------------------------------------------------
Financial Services--16.7%
925M Banc One Corp., 7 1/4%, 2002 937,203 196
660M BankAmerica Corp., 9 1/2%, 2001 728,853 153
875M Barnett Banks, Inc., 8 1/2%, 1999 915,162 192
700M Chemical Bank, Inc., 7%, 2005 685,481 144
150M Citicorp, 10.15%, 1998 158,795 33
800M Citicorp, 8%, 2003 837,307 175
250M CoreStates Capital Corp., 9 3/8%, 2003 280,344 59
450M First Union Corp., 8 1/8%, 2002 473,598 99
750M Mellon Bank N.A., 6 1/2%, 2005 708,682 148
550M Meridian Bancorp, 7 7/8%, 2002 570,328 119
925M Morgan Guaranty Trust Co., 7 3/8%, 2002 944,523 198
700M NationsBank Corp., 8 1/8%, 2002 736,624 154
- --------------------------------------------------------------------------------------------------------------------------------
7,976,900 1,670
- --------------------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--7.4%
750M Anheuser Busch Cos., Inc., 7%, 2005 739,665 155
500M Coca-Cola Enterprises, Inc., 7 7/8%, 2002 522,501 109
700M Hershey Foods Corp., 6.7%, 2005 679,467 142
900M Philip Morris Cos., Inc., 7 1/8%, 2002 899,163 189
650M Universal Corp., 9 1/4%, 2001 703,342 147
- --------------------------------------------------------------------------------------------------------------------------------
3,544,138 742
- --------------------------------------------------------------------------------------------------------------------------------
Gas Transmission--1.4%
700M Enron Corp., 7 1/8%, 2007 686,127 144
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare--1.4%
700M Columbia/HCA Healthcare Corp., 7.69%, 2025 695,882 146
- --------------------------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--5.1%
700M Associates Corp. of North America, 7 7/8%, 2001 729,637 153
700M General Electric Capital Corp., 7 7/8%, 2006 735,987 154
700M General Motors Acceptance Corp., 7 1/8%, 1999 709,475 149
250M International Lease Finance Corp., 8 7/8%, 2001 268,118 56
- --------------------------------------------------------------------------------------------------------------------------------
2,443,217 512
- --------------------------------------------------------------------------------------------------------------------------------
Media/Cable Television--4.8%
700M New York Times Co., Inc., 7 5/8%, 2005 721,165 151
750M News America, 8 1/2%, 2005 790,817 166
750M PanAmSat Capital Corp., 9 3/4%, 2000 780,000 163
- --------------------------------------------------------------------------------------------------------------------------------
2,291,982 480
- --------------------------------------------------------------------------------------------------------------------------------
Miscellaneous--.6%
250M Alco Standard Corp., 8 7/8%, 2001 269,018 56
- --------------------------------------------------------------------------------------------------------------------------------
Oil/Natural Gas--2.6%
700M Columbia Gas System, Inc., 6.8%, 2005 671,325 141
500M Mobil Corp., 8 5/8%, 2021 565,047 118
- --------------------------------------------------------------------------------------------------------------------------------
1,236,372 259
- --------------------------------------------------------------------------------------------------------------------------------
Paper/Forest Products--5.3%
500M MacMillan Bloedel, Ltd., 8 1/2%, 2004 517,305 108
500M S. D. Warren Company, 12%, 2004 532,500 111
650M Stone Container Corp., 10 3/4%, 2002 658,937 138
750M Temple Inland, Inc., 9%, 2001 811,206 170
- --------------------------------------------------------------------------------------------------------------------------------
2,519,948 527
- --------------------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--1.5%
750M Penney (J.C.) & Co., 6 1/8%, 2003 706,559 148
- --------------------------------------------------------------------------------------------------------------------------------
Technology--3.1%
750M International Business Machines Corp., 6 3/8%, 2000 742,248 155
725M Xerox Corp., 7.15%, 2004 725,927 152
- --------------------------------------------------------------------------------------------------------------------------------
1,468,175 307
- --------------------------------------------------------------------------------------------------------------------------------
Telephone--7.0%
500M GTE Corp., 8.85%, 1998 518,904 109
850M MCI Communication Corp., 7 1/2%, 2004 868,565 182
500M MFS Communications Co., Inc., 0%-8 7/8%, 2006 306,250 64
700M New York Telephone Co., 7 1/4%., 2024 655,446 137
1,000M Pacific Bell Telephone Co., 7%, 2004 995,979 208
- --------------------------------------------------------------------------------------------------------------------------------
3,345,144 700
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $42,245,307) 42,287,673 8,854
- --------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--8.0%
700M Federal Home Loan Mortgage Corp., 7.88%, 2004 699,436 146
3,000M United States Treasury Note, 7 3/4%, 2000 3,126,562 655
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $3,900,250) 3,825,998 801
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--2.1%
250M Ameritech Capital Funding Corp., 5.39%, 7/16/96 249,439 52
750M Massachusetts Electric Co., 5.37%, 7/1/96 750,000 157
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $999,439) 999,439 209
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $47,144,996) 98.6% 47,113,110 9,864
Other Assets, Less Liabilities 1.4 650,348 136
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $47,763,458 $10,000
================================================================================================================================
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS SPECIAL SITUATIONS FUND
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--86.8%
Basic Industry--1.5%
49,500 *American Buildings Company $ 1,447,875 $ 94
75,000 *Repap Enterprises, Inc. 285,938 19
22,800 Schulman (A.), Inc. 558,600 36
- --------------------------------------------------------------------------------------------------------------------------------
2,292,413 149
- --------------------------------------------------------------------------------------------------------------------------------
Capital Goods--3.0%
35,800 Columbus McKinnon Corporation 559,375 36
28,800 *Jacobs Engineering Group, Inc. 759,600 49
21,600 Millipore Corporation 904,500 59
80,200 *Superior Services, Inc. 1,363,400 88
18,300 Tecumseh Products Company 983,625 64
- --------------------------------------------------------------------------------------------------------------------------------
4,570,500 296
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Durables--2.4%
24,000 Corning, Inc. 921,000 60
143,500 *Fortress Group, Inc. 1,255,625 81
35,800 *Innotech, Inc. 400,513 26
32,100 The Rival Company 738,300 48
25,200 Titan Wheel International, Inc. 403,200 26
- --------------------------------------------------------------------------------------------------------------------------------
3,718,638 241
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.4%
26,000 Dreyer's Grand Ice Cream, Inc. 819,000 53
39,600 Richfood Holdings, Inc. 1,287,000 83
- --------------------------------------------------------------------------------------------------------------------------------
2,106,000 136
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Services--15.8%
37,400 *Barnes & Noble, Inc. 1,341,725 87
51,000 *Bell Sports Corporation 369,750 24
35,800 *Buffets, Inc. 438,550 28
58,200 *Cannondale Corporation 1,178,550 76
60,200 *Cinar Films, Inc. - Class "B" 1,309,350 85
36,300 *CUC International, Inc. 1,288,650 83
52,000 Equifax, Inc. 1,365,000 88
14,400 *Evergreen Media Corporation - Class "A" 615,600 40
27,000 *Federated Department Stores, Inc. 921,375 60
53,400 *Franklin Electronic Publishers, Inc. 1,068,000 69
37,800 Gaylord Entertainment Company - Class "A" 1,067,850 69
24,600 *Gymboree Corporation 750,300 49
63,000 *Home Shopping Network, Inc. 756,000 49
47,700 *Prime Hospitality Corporation 787,050 51
51,500 Rite-Aid Corporation 1,532,125 99
27,000 *Scientific Games Holdings Corporation 783,000 51
22,900 Talbots, Inc. 741,387 48
61,500 *Tele-Communications, Inc., Liberty Media Group - Class "A" 1,629,750 106
95,800 *Tele-Communications, Inc., TCI Group - Class "A" 1,736,375 112
35,800 *Travis Boats & Motors, Inc. 326,675 21
74,600 *U.S. Office Products Company 3,133,200 203
33,000 *Viacom, Inc. - Class "B" 1,282,875 83
- --------------------------------------------------------------------------------------------------------------------------------
24,423,137 1,581
- --------------------------------------------------------------------------------------------------------------------------------
Financial--6.9%
67,800 Ambassador Apartments, Inc. 1,144,125 74
66,450 *American Travellers Corporation 1,528,350 99
15,500 Boatmen's Bancshares, Inc. 621,938 40
41,000 *Cal Fed Bancorp, Inc. 748,250 48
7,200 HUBCO, Inc. 152,100 10
52,500 Independent Bank Corporation 406,875 26
16,500 Mark Twain Bancshares, Inc. 610,500 40
14,600 Mercantile Bancorporation, Inc. 649,700 42
64,900 *NHP, Inc. 1,338,563 87
15,900 Redwood Trust, Inc. 445,200 29
43,550 Reliance Group Holdings, Inc. 326,625 21
18,468 Southern National Corporation 586,357 38
56,700 Titan Holdings, Inc. 793,800 51
29,000 USF&G Corporation 474,875 31
64,000 Willis Corroon Group PLC (ADR) 760,000 49
- --------------------------------------------------------------------------------------------------------------------------------
10,587,258 685
- --------------------------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--16.7%
14,400 *American HomePatient, Inc. 637,200 41
35,800 *American Medical Response, Inc. 1,261,950 83
35,800 *Anesta Corporation 438,550 28
75,500 *Applied Bioscience International, Inc. 792,750 51
30,000 *Arbor Health Care Company 817,500 53
53,800 *Atrix Laboratories, Inc. 538,000 35
2,200 *Biopsys Medical, Inc. 44,000 3
13,009 Cardinal Health, Inc. 938,274 61
21,500 *Cardiovascular Dynamics, Inc. 263,375 17
49,900 *CIMA Labs, Inc. 374,250 24
35,900 *Coventry Corporation 565,425 37
1,000 *CRA Managed Care, Inc. 44,750 3
28,000 Dentsply International, Inc. 1,190,000 77
10,700 *Endosonics Corporation 191,263 12
86,500 *Ethical Holdings PLC (ADR) 843,375 55
38,200 Fisher Scientific International 1,432,500 93
27,000 *GMIS, Inc. 324,000 21
39,000 *Health Care & Retirement Corporation 926,250 60
36,000 *HemaSure, Inc. 504,000 33
59,000 *ICU Medical, Inc. 811,250 53
36,000 *Ligand Pharmaceuticals - Class "B" 598,500 39
31,600 *Living Centers of America, Inc. 1,086,250 70
68,600 *Noven Pharmaceuticals, Inc. 1,097,600 71
17,900 *Pediatric Services of America, Inc. 407,225 26
33,900 *Perrigo Company 381,375 25
56,000 *Physician Support Systems, Inc. 1,267,000 82
18,500 *Rural/Metro Corporation 633,625 41
46,500 *Sunquest Information Systems, Inc. 697,500 45
39,600 Teva Pharmaceutical Industries Ltd. (ADR) 1,499,850 97
36,000 *Vencor, Inc. 1,098,000 71
113,500 *VidaMed, Inc. 1,447,125 94
44,500 *VISX, Inc. 1,518,563 98
26,900 *Watson Pharmaceuticals, Inc. 1,018,837 66
- --------------------------------------------------------------------------------------------------------------------------------
25,690,112 1,665
- --------------------------------------------------------------------------------------------------------------------------------
Technology--28.6%
18,000 *Acxiom Corporation 614,250 40
30,100 *Adaptec, Inc. 1,425,987 92
71,800 *Applied Microsystems Corporation 1,256,500 81
18,000 *Astea International, Inc. 436,500 28
31,000 AVX Corporation 573,500 37
34,500 *BISYS Group, Inc. 1,302,375 84
28,800 *Catalyst International, Inc. 331,200 21
35,800 *Checkfree Corporation 711,525 46
21,500 *CHS Electronics, Inc. 290,250 19
17,700 Computer Associates International, Inc. 1,261,125 82
30,400 *Control Data Systems, Inc. 649,800 42
37,200 *Cylink Corporation 641,700 42
52,200 *Discreet Logic, Inc. 352,350 23
63,400 *EMC Corporation 1,180,825 76
40,550 *FileNet Corporation 1,480,075 96
17,900 *Fourth Shift Corporation 118,587 8
77,200 *Fulcrum Technologies, Inc. 993,950 64
35,800 *Gandalf Technologies, Inc. 286,400 19
40,900 *GT Interactive Software Corporation 685,075 44
24,400 HBO & Company 1,653,100 107
14,400 *HCIA, Inc. 907,200 59
71,800 *Health Systems Design Corporation 1,059,050 69
18,900 *IDX Systems Corporation 737,100 48
37,500 *Informix Corporation 843,750 55
60,700 *INTERSOLV 561,475 36
7,200 *Itron, Inc. 204,300 13
59,200 *JDA Software Group, Inc. 1,221,000 79
46,200 *LSI Logic Corporation 1,201,200 78
28,800 *MEMC Electronic Materials, Inc. 1,116,000 72
12,900 *Metatec Corporation 132,225 9
13,600 *Microsoft Corporation 1,633,700 106
15,600 Motorola, Inc. 980,850 64
84,900 *National Semiconductor Corporation 1,315,950 85
25,300 *Optical Data Systems, Inc. 556,600 36
55,800 *Oracle Corporation 2,200,613 143
415 *Radius, Inc. 1,141 --
32,100 Reynolds & Reynolds Company 1,709,325 111
24,700 *Seagate Technology, Inc. 1,111,500 72
28,900 *SoftKey International, Inc. 547,294 35
61,200 *Softquad International, Inc. 339,470 22
7,200 *Stanford Telecommunications, Inc. 405,000 26
13,600 *Sterling Software, Inc. 1,047,200 68
13,100 *Sunguard Data Systems, Inc. 525,638 34
73,700 *Symantec Corporation 921,250 60
109,700 *SystemSoft Corporation 5,155,900 334
35,900 *ULTRADATA Corporation 278,225 18
28,900 *Veritas Software Corporation 1,242,700 80
- --------------------------------------------------------------------------------------------------------------------------------
44,200,730 2,863
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunications--5.9%
18,800 *Cisco Systems, Inc. 1,064,550 69
43,100 *Colonial Data Technologies Corporation 641,113 42
77,800 ECI Telecommunications Limited Designs 1,808,850 117
72,000 Ericsson (L.M.) Telephone Company (ADR) - Class "B" 1,548,000 100
71,600 *Octel Communications Corporation 1,414,100 92
61,000 *Saville Systems Ireland (ADR) 1,685,125 109
151,500 *USCI, Inc. 984,750 64
- --------------------------------------------------------------------------------------------------------------------------------
9,146,488 593
- --------------------------------------------------------------------------------------------------------------------------------
Transportation--3.5%
27,100 *Fritz Companies, Inc. 873,975 57
67,200 Interpool, Inc. 1,226,400 79
21,500 *Landstar System, Inc. 623,500 40
80,100 Stolt-Nielson, S.A. (ADR) 1,491,863 97
167,000 Transportacion Maritima Mexicana, S.A. de C.V. (ADR) 1,231,625 80
- --------------------------------------------------------------------------------------------------------------------------------
5,447,363 353
- --------------------------------------------------------------------------------------------------------------------------------
Utilities--1.1%
79,900 PacifiCorp 1,777,775 115
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $114,272,992) 133,960,414 8,677
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--9.4%
2,350M Echlin, Inc., 5.3%, 7/11/96 2,346,540 152
400M Ford Motor Credit Co., 5.36%, 7/30/96 398,273 26
1,000M Ford Motor Credit Co., 5.39%, 8/27/96 991,466 64
300M General Electric Capital Corp., 5.37%, 8/13/96 298,076 19
1,200M Nalco Chemical Co., 5.4%, 8/21/96 1,190,820 77
2,700M National Rural Utilities Cooperative, 5.35%, 8/5/96 2,685,956 175
1,200M PPG Industries, Inc., 5.33%, 7/22/96 1,196,269 77
1,200M Sandoz Corp., 5.3%, 7/10/96 1,997,350 129
2,300M Smithkline Beecham Corp., 5.28%, 7/16/96 2,294,940 149
1,135M Walt Disney Co., 5.28%, 8/19/96 1,126,843 73
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $14,526,533) 14,526,533 941
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $128,799,525) 96.2% 148,486,947 9,618
Other Assets, Less Liabilities 3.8 5,897,101 382
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $154,384,048 $10,000
================================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Portfolio of Investments
FIRST INVESTORS TOTAL RETURN FUND
June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS--53.1%
Basic Industry--2.6%
2,600 Dow Chemical Company $ 197,600 $ 36
4,800 Du Pont (E.I.) de Nemours & Company 379,800 69
4,100 Minnesota Mining & Manufacturing Company 282,900 51
17,000 Monsanto Company 552,500 101
- --------------------------------------------------------------------------------------------------------------------------------
1,412,800 257
- --------------------------------------------------------------------------------------------------------------------------------
Capital Goods--3.2%
5,400 AGCO Corporation 149,850 27
3,200 Boeing Company 278,800 51
2,100 Emerson Electric Company 189,787 35
6,700 General Electric Company 579,550 106
7,300 Laidlaw, Inc. - Class "B" 73,913 13
3,600 Tecumseh Products Company 193,500 35
5,000 *USA Waste Services, Inc. 148,125 27
2,900 *Varity Corporation 139,563 25
- --------------------------------------------------------------------------------------------------------------------------------
1,753,088 319
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Durables--2.2%
4,700 Corning, Inc. 180,363 33
9,600 Ford Motor Company 310,800 56
5,100 General Motors Corporation 267,113 49
3,100 Goodyear Tire & Rubber Company 149,575 27
4,200 Masco Corporation 127,050 23
10,300 Titan Wheel International, Inc. 164,800 30
- --------------------------------------------------------------------------------------------------------------------------------
1,199,701 218
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--11.4%
7,900 Abbott Laboratories 343,650 62
5,400 American Home Products Corporation 324,675 59
5,000 Bristol-Myers Squibb Company 450,000 82
13,200 Coca-Cola Company 645,150 117
3,400 Columbia/HCA Healthcare Corporation 181,475 33
10,600 Dreyer's Grand Ice Cream, Inc. 333,900 61
3,300 Eastman Kodak Company 256,575 47
5,800 Eli Lilly & Company 377,000 69
4,200 Gillette Company 261,975 48
13,200 Johnson & Johnson 653,400 118
2,600 Kimberly-Clark Corporation 200,850 37
6,700 Merck & Company, Inc. 432,987 79
15,300 PepsiCo, Inc. 541,237 98
2,000 Philip Morris Cos., Inc. 208,000 38
6,700 Procter & Gamble Company 607,188 110
3,600 Schering-Plough Corporation 225,900 41
1,500 Unilever N.V. 217,688 40
- --------------------------------------------------------------------------------------------------------------------------------
6,261,650 1,139
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Services--5.3%
8,500 *Brinker International, Inc. 127,500 23
25,000 *Chaus (Bernard), Inc. 81,250 15
5,300 *Federated Department Stores, Inc. 180,863 33
4,450 *Gymboree Corporation 135,725 25
4,400 Home Depot, Inc. 237,600 43
2,600 *ITT Corporation 172,250 31
5,400 Mattel, Inc. 154,575 28
3,200 McDonald's Corporation 149,600 27
5,900 *Tele-Communications, Inc., Liberty Media Group - Class "A" 156,350 28
8,000 Time Warner, Inc. 314,000 58
3,000 TJX Companies 101,250 18
3,100 *Viacom, Inc. - Class "B" 120,513 22
17,300 Wal-Mart Stores, Inc. 438,987 80
7,300 Walgreen Company 244,550 44
4,700 Walt Disney Company 295,512 54
- --------------------------------------------------------------------------------------------------------------------------------
2,910,525 529
- --------------------------------------------------------------------------------------------------------------------------------
Energy--5.5%
5,000 Amoco Corporation 361,875 66
6,100 Chevron Corporation 359,900 65
2,300 Dresser Industries, Inc. 67,850 12
6,400 Exxon Corporation 556,000 101
3,800 Mobil Corporation 426,075 77
10,800 Pacific Enterprises 319,950 58
3,600 Royal Dutch Petroleum Company 553,500 102
2,250 Schlumberger, Ltd. 189,562 34
2,500 Texaco, Inc. 209,687 38
- --------------------------------------------------------------------------------------------------------------------------------
3,044,399 553
- --------------------------------------------------------------------------------------------------------------------------------
Financial--5.0%
4,800 American Express Company 214,200 39
4,500 American International Group, Inc. 443,812 81
3,400 BankAmerica Corporation 257,550 47
4,600 Chase Manhattan Corporation 324,875 59
6,000 Citicorp 495,750 90
9,600 Federal National Mortgage Association 321,600 58
5,300 Innkeepers USA Trust 53,000 10
5,600 NationsBank Corporation 462,700 84
2,800 Redwood Trust, Inc. 78,400 14
5,500 The Money Store, Inc. 121,687 22
- --------------------------------------------------------------------------------------------------------------------------------
2,773,574 504
- --------------------------------------------------------------------------------------------------------------------------------
Health Care/Miscellaneous--1.2%
5,200 *CIMA Labs, Inc. 39,000 7
8,000 *ICU Medical, Inc. 110,000 20
2,600 Nellcor Puritan Bennett, Inc. 126,100 23
17,700 *Noven Pharmaceuticals, Inc. 283,200 51
2,600 *Watson Pharmaceuticals, Inc. 98,475 18
- --------------------------------------------------------------------------------------------------------------------------------
656,775 119
- --------------------------------------------------------------------------------------------------------------------------------
Technology--10.3%
8,500 A T & T Corp. 527,000 96
5,000 *Airtouch Communications, Inc. 141,250 26
8,200 *Cisco Systems, Inc. 464,325 84
4,000 *Control Data Systems, Inc. 85,500 16
3,400 *Cylink Corporation 58,650 11
5,000 *FileNet Corporation 182,500 33
4,800 HBO & Company 325,200 59
4,400 Hewlett-Packard Company 438,350 80
4,400 International Business Machines Corporation 435,600 79
8,000 *LSI Logic Corporation 208,000 38
6,000 MCI Communications Corporation 153,750 28
6,100 *MEMC Electronic Materials, Inc. 236,375 43
5,400 *Microsoft Corporation 648,675 118
5,700 Motorola, Inc. 358,387 65
13,000 *Optical Data Systems, Inc. 286,000 52
18,525 *Oracle Corporation 730,580 133
912 *Radius, Inc. 2,508 0
4,900 *Seagate Technology, Inc. 220,500 40
3,000 Xerox Corporation 160,500 29
- --------------------------------------------------------------------------------------------------------------------------------
5,663,650 1,030
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunications--2.0%
15,200 ECI Telecommunications Limited Designs 353,400 64
13,700 Ericsson (L.M.) Telephone Company (ADR) - Class "B" 294,550 54
16,200 *Octel Communications Corporation 319,950 58
24,500 *USCI, Inc. 159,250 29
- --------------------------------------------------------------------------------------------------------------------------------
1,127,150 205
- --------------------------------------------------------------------------------------------------------------------------------
Transportation--1.3%
1,600 Burlington Northern, Inc. 129,400 24
4,800 *Fritz Companies, Inc. 154,800 28
17,600 Interpool, Inc. 321,200 58
16,700 Transportacion Maritima Mexicana, S.A. de C.V. (ADR) 123,163 22
- --------------------------------------------------------------------------------------------------------------------------------
728,563 132
- --------------------------------------------------------------------------------------------------------------------------------
Utilities--3.1%
3,000 Bell Atlantic Corporation 191,250 35
5,100 BellSouth Corporation 216,112 39
5,800 Duke Power Company 297,250 54
6,400 FPL Group, Inc. 294,400 54
7,400 GTE Corporation 331,150 60
7,400 PacifiCorp 164,650 30
3,700 SBC Communications, Inc 182,225 33
- --------------------------------------------------------------------------------------------------------------------------------
1,677,037 305
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $22,105,978) 29,208,912 5,310
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--18.8%
Chemicals--1.2%
650M Rexene Corp., 11 3/4%, 2004 676,000 123
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.2%
600M Universal Corp., 9 1/4%, 2001 649,239 118
- --------------------------------------------------------------------------------------------------------------------------------
Electric & Gas Utilities--2.1%
500M Commonwealth Edison, 8 1/4%, 2006 521,118 95
600M Old Dominion Electric Cooperative, 7.97%, 2002 619,092 113
- --------------------------------------------------------------------------------------------------------------------------------
1,140,210 208
- --------------------------------------------------------------------------------------------------------------------------------
Electric Power--1.2%
630M United Illuminating Corp., 9.76%, 2006 669,652 122
- --------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--1.1%
600M Essex Group, Inc., 10%, 2003 606,000 110
- --------------------------------------------------------------------------------------------------------------------------------
Financial Services--1.9%
500M First Union Corp., 8 1/8%, 2002 526,221 96
500M NationsBank Corp., 8 1/8%, 2002 526,160 96
- --------------------------------------------------------------------------------------------------------------------------------
1,052,381 192
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare--2.3%
600M Healthsouth Rehabilitation Corp., 9 1/2%, 2001 621,000 113
600M Ornda Healthcorp., 11 3/8%, 2004 663,000 120
- -------------------------------------------------------------------------------------------------------------------------------
1,284,000 233
- --------------------------------------------------------------------------------------------------------------------------------
Media/Cable Television--1.1%
600M Rogers Communication, Inc., 10 7/8%, 2004 612,000 111
- --------------------------------------------------------------------------------------------------------------------------------
Paper/Forest Products--4.9%
800M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 842,000 153
800M S. D. Warren Company, 12%, 2004 852,000 155
1,000M Stone Container Corp., 9 7/8%, 2001 975,000 177
- --------------------------------------------------------------------------------------------------------------------------------
2,669,000 485
- --------------------------------------------------------------------------------------------------------------------------------
Retail-Food/Drug--1.0%
600M Penn Traffic Co., Inc., 10.65%, 2004 541,500 98
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunications--.8%
750M MFS Communications Co., Inc., 0%-8 7/8%, 2006 459,375 84
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $10,102,411) 10,359,357 1,884
- --------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--19.0%
10,000M Federal National Mortgage Association, 8 1/2%, 2005 (cost $10,575,179) 10,463,230 1,902
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--8.2%
1,250M Dresser Industries, Inc., 5.37%, 7/31/96 1,244,406 226
1,250M Home Depot, Inc,. 5.35%, 7/1/96 1,250,000 227
2,000M PepsiCo, Inc., 5.36%, 7/15/96 1,995,831 363
- -------- ------------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $4,490,237) 4,490,237 816
- --------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $47,273,805) 99.1% 54,521,736 9,912
Other Assets, Less Liabilities .9 483,823 88
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $55,005,559 $10,000
================================================================================================================================
* Non-income producing
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
FIRST INVESTORS SERIES FUND
June 30, 1996
- -----------------------------------------------------------------------------------------------------------------------
INSURED
INTERMEDIATE INVESTMENT
BLUE CHIP TAX EXEMPT GRADE
FUND FUND FUND
---------------- ---------------- ----------------
<S> <C> <C> <C>
Assets
Investments in securities:
At identified cost $ 156,618,241 $ 6,852,358 $ 47,144,996
================ ================ ================
At value (Note 1A) $ 205,048,604 $ 7,058,625 $ 47,113,110
Cash 3,178,547 282,833 39,834
Receivables:
Investment securities sold 1,732,654 -- --
Interest and dividends 213,619 98,850 943,997
Trust shares sold 708,057 699 84,383
Other assets 511 -- 64
---------------- ---------------- ----------------
Total Assets 210,881,992 7,441,007 48,181,388
---------------- ---------------- ----------------
Liabilities
Payables:
Investment securities purchased -- 105,059 --
Dividends payable July 15, 1996 489,039 28,888 248,788
Trust shares redeemed 368,329 154,674 116,195
Accrued advisory fee 129,882 2,412 25,770
Accrued expenses 121,763 2,646 27,177
---------------- ---------------- ----------------
Total Liabilities 1,109,013 293,679 417,930
---------------- ---------------- ----------------
Net Assets $ 209,772,979 $ 7,147,328 $ 47,763,458
================ ================ ================
Net Assets Consist of:
Capital paid in $ 154,971,919 $ 7,165,605 $ 47,750,989
Undistributed net investment income (deficit) 92,483 5,824 15,518
Accumulated net realized gain (loss) on
investment transactions 6,278,214 (230,368) 28,837
Net unrealized appreciation (depreciation)
in value of investments 48,430,363 206,267 (31,886)
---------------- ---------------- ----------------
Total $ 209,772,979 $ 7,147,328 $ 47,763,458
================ ================ ================
Trust shares outstanding (Note 2):
Class A 10,651,500 1,155,294 4,711,938
Class B 571,852 99,300 160,846
Net asset value and redemption
price per share--Class A $18.69 $5.70 $9.80
================ ================ ================
Maximum offering price per share--Class A
(Net asset value/.9375)* $19.94 $6.08 $10.45
================ ================ ================
Net asset value and offering price
per share--Class B $18.62 $5.70 $9.81
================ ================ ================
<CAPTION>
- ---------------------------------------------------------------------------------------------------
SPECIAL TOTAL
SITUATIONS RETURN
FUND FUND
---------------- ----------------
<S> <C> <C>
Assets
Investments in securities:
At identified cost $ 128,799,525 $ 47,273,805
================ ================
At value (Note 1A) $ 148,486,947 $ 54,521,736
Cash 5,762,509 13,824
Receivables:
Investment securities sold 1,650,649 3,121,128
Interest and dividends 48,435 591,580
Trust shares sold 464,338 63,554
Other assets 32 394
---------------- ----------------
Total Assets 156,412,910 58,312,216
---------------- ----------------
Liabilities
Payables:
Investment securities purchased 1,616,238 2,606,102
Dividends payable July 15, 1996 -- 372,686
Trust shares redeemed 216,734 249,350
Accrued advisory fee 98,517 34,728
Accrued expenses 97,373 43,791
---------------- ----------------
Total Liabilities 2,028,862 3,306,657
---------------- ----------------
Net Assets 154,384,048 55,005,559
================ ================
Net Assets Consist of:
Capital paid in $ 124,440,848 $ 45,798,175
Undistributed net investment income (deficit) (21,152) 313,020
Accumulated net realized gain (loss) on
investment transactions 10,276,930 1,646,433
Net unrealized appreciation (depreciation)
in value of investments 19,687,422 7,247,931
---------------- ----------------
Total $ 154,384,048 $ 55,005,559
================ ================
Trust shares outstanding (Note 2):
Class A 6,952,238 4,099,526
Class B 375,120 52,522
Net asset value and redemption
price per share--Class A $21.08 $13.25
================ ================
Maximum offering price per share--Class A
(Net asset value/.9375)* $22.49 $14.13
================ ================
Net asset value and offering price
per share--Class B $20.88 $13.19
================ ================
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
FIRST INVESTORS SERIES FUND
Six Months Ended June 30, 1996
- ----------------------------------------------------------------------------------------------------------------------------
INSURED
INTERMEDIATE INVESTMENT SPECIAL TOTAL
BLUE CHIP TAX EXEMPT GRADE SITUATIONS RETURN
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Interest $ 404,409 $ 201,256 $ 1,787,540 $ 517,949 $ 1,028,874
Dividends 1,765,833 -- -- 573,844 264,600
-------------- -------------- -------------- -------------- --------------
Total income 2,170,242 201,256 1,787,540 1,091,793 1,293,474
-------------- -------------- -------------- -------------- --------------
Expenses (Notes 1E and 4):
Advisory fee 968,320 22,162 185,785 711,856 278,589
Shareholder servicing costs 284,441 3,819 63,975 266,935 86,821
Distribution plan expenses--Class A 279,098 10,349 72,157 204,249 82,851
Distribution plan expenses--Class B 40,258 2,436 7,192 31,025 2,415
Reports and notices to shareholders 40,469 615 7,469 45,968 11,386
Professional fees 18,891 1,829 5,277 15,911 10,864
Custodian fees 12,032 963 4,052 12,842 11,525
Other expenses 18,651 1,904 6,310 14,965 5,131
-------------- -------------- -------------- -------------- --------------
Total expenses 1,662,160 44,077 352,217 1,303,751 489,582
Less: Expenses waived or assumed (240,381) (24,916) (72,730) (177,964) (69,647)
Custodian fees paid indirectly (11,204) (953) (1,967) (12,842) --
-------------- -------------- -------------- -------------- --------------
Net expenses 1,410,575 18,208 277,520 1,112,945 419,935
-------------- -------------- -------------- -------------- --------------
Net investment income (loss) 759,667 183,048 1,510,020 (21,152) 873,539
-------------- -------------- -------------- -------------- --------------
Realized and Unrealized Gain (Loss)
on Investments (Note 3):
Net realized gain (loss) on investments 6,278,214 (18,989) 53,837 10,276,930 1,649,794
Net unrealized appreciation (depreciation)
of investments 9,888,763 (184,068) (2,738,490) (65,244) (510,472)
-------------- -------------- -------------- -------------- --------------
Net gain (loss) on investments 16,166,977 (203,057) (2,684,653) 10,211,686 1,139,322
-------------- -------------- -------------- -------------- --------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 16,926,644 $ (20,009) $ (1,174,633) $ 10,190,534 $ 2,012,861
============== ============== ============== ============== ==============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
FIRST INVESTORS SERIES FUND
- -----------------------------------------------------------------------------------------------------------------
BLUE CHIP FUND
-------------------------------------
1/1/96 to
6/30/96 1995
------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $ 759,667 $ 1,814,505
Net realized gain (loss) on investments 6,278,214 5,979,563
Net unrealized appreciation (depreciation) of investments 9,888,763 34,678,998
------------- -------------
Net increase (decrease) in net assets resulting
from operations 16,926,644 42,473,066
------------- -------------
Distributions to Shareholders:
From net investment income--Class A (942,107) (1,794,647)
From net investment income--Class B (18,867) (28,155)
From net realized gain on investments--Class A -- (5,794,467)
From net realized gain on investments--Class B -- (185,096)
In excess of realized gain on investments--Class A -- --
In excess of realized gain on investments--Class B -- --
------------- -------------
Total distributions (960,974) (7,802,365)
------------- -------------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 27,795,285 30,855,778
Value of distributions reinvested 456,645 7,124,835
Cost of shares redeemed (14,721,014) (25,713,861)
------------- -------------
13,530,916 12,266,752
------------- -------------
Class B:
Proceeds from shares sold 4,915,937 5,044,595
Value of distributions reinvested 8,999 211,655
Cost of shares redeemed (401,359) (134,770)
------------- -------------
4,523,577 5,121,480
------------- -------------
Net increase (decrease) from trust share transactions 18,054,493 17,388,232
------------- -------------
Net increase (decrease) in net assets 34,020,163 52,058,933
Net Assets
Beginning of period 175,752,816 123,693,883
------------- -------------
End of period+ $ 209,772,979 $ 175,752,816
============= =============
+ Includes undistributed net investment income (deficit) of $ 92,483 $ 293,790
============= =============
(a)Trust Shares Issued and Redeemed
Class A:
Sold 1,552,516 1,958,324
Issued for distributions reinvested 25,049 408,815
Redeemed (815,656) (1,667,553)
------------- -------------
Net increase (decrease) in Class A shares outstanding 761,909 699,586
============= =============
Class B:
Sold 274,086 315,310
Issued for distributions reinvested 496 11,994
Redeemed (22,195) (7,838)
------------- -------------
Net increase in Class B shares outstanding 252,387 319,466
============= =============
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE
TAX EXEMPT FUND
------------------------------------
1/1/96 to
6/30/96 1995
------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $ 183,048 $ 337,020
Net realized gain (loss) on investments (18,989) (12)
Net unrealized appreciation (depreciation) of investments (184,068) 454,526
------------- -------------
Net increase (decrease) in net assets resulting
from operations (20,009) 791,534
------------- -------------
Distributions to Shareholders:
From net investment income--Class A (169,950) (330,471)
From net investment income--Class B (9,442) (5,226)
From net realized gain on investments--Class A -- --
From net realized gain on investments--Class B -- --
In excess of realized gain on investments--Class A -- --
In excess of realized gain on investments--Class B -- --
------------- -------------
Total distributions (179,392) (335,697)
------------- -------------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 481,041 1,707,243
Value of distributions reinvested 104,066 251,295
Cost of shares redeemed (834,975) (1,080,698)
------------- -------------
(249,868) 877,840
------------- -------------
Class B:
Proceeds from shares sold 199,344 372,887
Value of distributions reinvested 2,312 2,826
Cost of shares redeemed -- (2,000)
------------- -------------
201,656 373,713
------------- -------------
Net increase (decrease) from trust share transactions (48,212) 1,251,553
------------- -------------
Net increase (decrease) in net assets (247,613) 1,707,390
Net Assets
Beginning of period 7,394,941 5,687,551
------------- -------------
End of period+ $ 7,147,328 $ 7,394,941
============= =============
+ Includes undistributed net investment income (deficit) of $ 5,824 $ 2,168
============= =============
(a)Trust Shares Issued and Redeemed
Class A:
Sold 83,503 298,216
Issued for distributions reinvested 18,006 43,763
Redeemed (145,245) (189,523)
------------- -------------
Net increase (decrease) in Class A shares outstanding (43,736) 152,456
============= =============
Class B:
Sold 34,323 64,431
Issued for distributions reinvested 401 489
Redeemed -- (344)
------------- -------------
Net increase in Class B shares outstanding 34,724 64,576
============= =============
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE
FUND
------------------------------------
1/1/96 to
6/30/96 1995
------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $ 1,510,020 $ 3,137,597
Net realized gain (loss) on investments 53,837 67,631
Net unrealized appreciation (depreciation) of investments (2,738,490) 5,383,848
------------- -------------
Net increase (decrease) in net assets resulting
from operations (1,174,633) 8,589,076
------------- -------------
Distributions to Shareholders:
From net investment income--Class A (1,492,278) (3,128,539)
From net investment income--Class B (39,183) (26,151)
From net realized gain on investments--Class A -- --
From net realized gain on investments--Class B -- --
In excess of realized gain on investments--Class A -- (14,684)
In excess of realized gain on investments--Class B -- (343)
------------- -------------
Total distributions (1,531,461) (3,169,717)
------------- -------------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 4,348,292 7,877,385
Value of distributions reinvested 978,855 2,435,394
Cost of shares redeemed (6,507,756) (11,876,289)
------------- -------------
(1,180,609) (1,563,510)
------------- -------------
Class B:
Proceeds from shares sold 658,954 1,166,562
Value of distributions reinvested 25,697 18,187
Cost of shares redeemed (197,930) (56,045)
------------- -------------
486,721 1,128,704
------------- -------------
Net increase (decrease) from trust share transactions (693,888) (434,806)
------------- -------------
Net increase (decrease) in net assets (3,399,982) 4,984,553
Net Assets
Beginning of period 51,163,440 46,178,887
------------- -------------
End of period+ $ 47,763,458 $51,163,440
============= =============
+ Includes undistributed net investment income (deficit) of $ 15,518 $ 36,959
============= =============
(a)Trust Shares Issued and Redeemed
Class A:
Sold 433,353 798,381
Issued for distributions reinvested 97,896 245,208
Redeemed (653,081) (1,206,098)
------------- -------------
Net increase (decrease) in Class A shares outstanding (121,832) (162,509)
============= =============
Class B:
Sold 65,473 116,443
Issued for distributions reinvested 2,574 1,794
Redeemed (19,941) (5,497)
------------- -------------
Net increase in Class B shares outstanding 48,106 112,740
============= =============
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
SPECIAL SITUATIONS
FUND
------------------------------------
1/1/96 to
6/30/96 1995
------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $ (21,152) $ (99,045)
Net realized gain (loss) on investments 10,276,930 4,776,742
Net unrealized appreciation (depreciation) of investments (65,244) 17,856,965
------------- -------------
Net increase (decrease) in net assets resulting
from operations 10,190,534 22,534,662
------------- -------------
Distributions to Shareholders:
From net investment income--Class A -- --
From net investment income--Class B -- --
From net realized gain on investments--Class A -- (4,513,641)
From net realized gain on investments--Class B -- (164,734)
In excess of realized gain on investments--Class A -- --
In excess of realized gain on investments--Class B -- --
------------- -------------
Total distributions -- (4,678,375)
------------- -------------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 23,634,018 33,124,063
Value of distributions reinvested -- 4,251,850
Cost of shares redeemed (12,190,772) (19,660,248)
------------- -------------
11,443,246 17,715,665
------------- -------------
Class B:
Proceeds from shares sold 3,224,695 4,418,828
Value of distributions reinvested -- 162,263
Cost of shares redeemed (370,906) (162,649)
------------- -------------
2,853,789 4,418,442
------------- -------------
Net increase (decrease) from trust share transactions 14,297,035 22,134,107
------------- -------------
Net increase (decrease) in net assets 24,487,569 39,990,394
Net Assets
Beginning of period 129,896,479 89,906,085
------------- -------------
End of period+ $ 154,384,048 $ 129,896,479
============= =============
+ Includes undistributed net investment income (deficit) of $ (21,152) --
============= =============
(a)Trust Shares Issued and Redeemed
Class A:
Sold 1,171,325 1,771,857
Issued for distributions reinvested -- 211,325
Redeemed (603,325) (1,071,368)
------------- -------------
Net increase (decrease) in Class A shares outstanding 568,000 911,814
============= =============
Class B:
Sold 159,585 234,052
Issued for distributions reinvested -- 8,109
Redeemed (18,452) (8,174)
------------- -------------
Net increase in Class B shares outstanding 141,133 233,987
============= =============
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
FUND
------------------------------------
1/1/96 to
6/30/96 1995
------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations
Net investment income (loss) $ 873,539 $ 1,624,015
Net realized gain (loss) on investments 1,649,794 1,809,004
Net unrealized appreciation (depreciation) of investments (510,472) 8,913,490
------------- -------------
Net increase (decrease) in net assets resulting
from operations 2,012,861 12,346,509
------------- -------------
Distributions to Shareholders:
From net investment income--Class A (744,971) (1,523,212)
From net investment income--Class B (6,504) (3,901)
From net realized gain on investments--Class A -- (1,800,205)
From net realized gain on investments--Class B -- (8,799)
In excess of realized gain on investments--Class A -- (3,345)
In excess of realized gain on investments--Class B -- (16)
------------- -------------
Total distributions (751,475) (3,339,478)
------------- -------------
Trust Share Transactions (a)
Class A:
Proceeds from shares sold 2,668,383 3,426,577
Value of distributions reinvested 373,088 3,303,023
Cost of shares redeemed (5,422,141) (10,998,541)
------------- -------------
(2,380,670) (4,268,941)
------------- -------------
Class B:
Proceeds from shares sold 443,386 247,304
Value of distributions reinvested 2,774 12,704
Cost of shares redeemed (33,023) --
------------- -------------
413,137 260,008
------------- -------------
Net increase (decrease) from trust share transactions (1,967,533) (4,008,933)
------------- -------------
Net increase (decrease) in net assets (706,147) 4,998,098
Net Assets
Beginning of period 55,711,706 50,713,608
------------- -------------
End of period+ $ 55,005,559 $ 55,711,706
============= =============
+ Includes undistributed net investment income (deficit) of $ 313,020 $ 190,956
============= =============
(a)Trust Shares Issued and Redeemed
Class A:
Sold 209,689 279,476
Issued for distributions reinvested 28,372 252,244
Redeemed (411,556) (913,524)
------------- -------------
Net increase (decrease) in Class A shares outstanding (173,495) (381,804)
============= =============
Class B:
Sold 33,926 19,916
Issued for distributions reinvested 211 954
Redeemed (2,485) --
------------- -------------
Net increase in Class B shares outstanding 31,652 20,870
============= =============
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 Fund, Insured
Intermediate Tax Exempt Fund, Investment Grade Fund, Special
Situations Fund and Total Return Fund and accounts separately for
the assets, liabilities and operations of each Fund. The objective
of each Fund is as follows:
Blue Chip Fund seeks to provide investors with high total investment
return consistent with the preservation of capital.
Insured Intermediate Tax Exempt Fund seeks to provide a high level
of interest income which is exempt from federal income tax.
Investment Grade Fund seeks to generate a maximum level of income
consistent with investment in investment grade debt securities.
Special Situations Fund seeks long-term growth of capital.
Total Return Fund 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 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
Fund 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 Fund as of the date the securities are
purchased.
The municipal bonds held by the Insured Intermediate Tax Exempt Fund
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 Fund 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 Fund may invest up to 35%
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 Fund to continue to comply with the special provisions of
the Internal Revenue Code applicable to investment companies and to
make sufficient distributions of income and capital gains (in excess
of any available capital loss carryovers), to relieve it from all,
or substantially all, federal income taxes. At June 30, 1996, the
Insured Intermediate Tax Exempt Fund 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 to shareholders of the Insured Intermediate Tax Exempt Fund
and the Investment Grade Fund are declared daily and paid monthly.
Dividends from net investment income of the Blue Chip Fund and Total
Return Fund are declared and paid quarterly and dividends from net
investment income of the Special Situations Fund are declared and
paid annually. Distributions from net realized capital gains 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 Fund are paid from the assets of that Fund. General expenses of
First Investors Series Fund are allocated among and charged to the
assets of each Fund on a fair and equitable basis, which may be
based on the relative assets of each Fund or the nature of the
services performed and relative applicability to each Fund.
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 Bank of New York, custodian for the
Funds, other than the Total Return Fund, has provided credits in the
amount of $26,966 against custodian charges based on the uninvested
cash balances of these Funds.
2. Capital--Each Fund 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 six months ended June 30, 1996,
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>
<TABLE>
<CAPTION>
Long-Term U.S.
Securities Government Obligations
---------------------------- -------------------------
Cost of Proceeds Cost of Proceeds
Purchases of Sales Purchases of Sales
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
BLUE CHIP FUND $38,247,169 $35,472,966 $ -- $ --
INSURED INTERMEDIATE TAX EXEMPT FUND 2,372,514 2,615,988 -- --
INVESTMENT GRADE FUND 4,784,460 4,439,171 -- --
SPECIAL SITUATIONS FUND 82,419,133 69,174,334 -- --
TOTAL RETURN FUND 18,011,584 23,772,997 15,329,476 12,701,453
At June 30, 1996, aggregate cost and net unrealized appreciation (depreciation) of securities for
federal income tax purposes were as follows:
<CAPTION>
Net
Gross Gross Unrealized
Aggregate Unrealized Unrealized Appreciation
Cost Appreciation Depreciation (Depreciation)
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
BLUE CHIP FUND $156,618,241 $50,269,133 $1,838,770 $48,430,363
INSURED INTERMEDIATE TAX EXEMPT FUND. 6,852,358 225,561 19,294 206,267
INVESTMENT GRADE FUND 47,144,996 759,826 791,712 (31,886)
SPECIAL SITUATIONS FUND 128,799,525 28,900,510 9,213,088 19,687,422
TOTAL RETURN FUND 47,274,981 8,190,094 943,339 7,246,755
</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
Fund other than the Insured Intermediate Tax Exempt Fund and the Investment
Grade Fund, an annual fee, payable monthly, at the rate of 1% on the first
$200 million of each Funds' 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 Fund is payable monthly, at the rate of .60% of
the Fund's average daily net assets. The annual fee for the Investment Grade
Fund is payable monthly, at the rate of .75% on the first $300 million of
the Fund's 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 six months ended June 30, 1996,
were $2,166,712, of which $521,089 was waived. In addition, expenses of
$54,200 were assumed by FIMCO.
Pursuant to certain state regulations, FIMCO has agreed to reimburse each Fund
if and to the extent that the Fund's aggregate operating expenses, including
advisory fees but generally excluding interest, taxes, brokerage commissions
and extraordinary expenses, exceed any limitation on expenses applicable to
each Fund in those states (unless waivers of such limitations have been
obtained). The amount of any such reimbursement is limited to each Fund's
yearly advisory fee. For the six months ended June 30, 1996, no reimbursement
was required pursuant to these provisions.
For the six months ended June 30, 1996, FIC, as underwriter, received
$2,526,005 in commissions from the sale of Fund shares after allowing
$38,649 to other dealers. Shareholder servicing costs included $510,143
in transfer agent fees and out of pocket expenses accrued to ADM and
$195,848 in custodian fees accrued to FFS.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940 Act,
each Fund 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 Fund.
Total 12b-1 fees accrued to FIC amounted to $732,030 (of which $10,349
was waived).
[This page intentionally left blank]
<TABLE>
<CAPITON>
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 Less Distributions from
--------------------------------------- --------------------------
Net Realized
Net Asset and
Value Unrealized
-------------- Net Gain (Loss) Total from Net Net
Beginning Investment on Investment Investment Realized
of Period Income Investments Operations Income Gains
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Blue Chip Fund
Class A
1991 $ 11.64 $ .21 $ 2.96 $ 3.17 $ .22 $ --
1992 14.59 .13 .82 .95 .13 .12
1993 15.29 .10 1.08 1.18 .10 .79
1994 15.58 .11 (.58) (.47) .09 1.56
1995 13.46 .19 4.37 4.56 .20 .60
1/1/96 to 6/30/96 17.22 .07 1.49 1.56 .09 --
Class B
1/12/95* to 12/31/95 13.51 .10 4.31 4.41 .16 .60
1/1/96 to 6/30/96 17.16 .04 1.46 1.50 .04 --
Insured Intermediate
Tax Exempt Fund
Class A
11/22/93* to 12/31/93 5.79 -- -- -- -- --
1994 5.79 .24 (.36) (.12) .24 --
1995 5.43 .30 .42 .72 .30 --
1/1/96 to 6/30/96 5.85 .14 (.15) (.01) .14 --
Class B
1/12/95* to 12/31/95 5.45 .25 .41 .66 .26 --
1/1/96 to 6/30/96 5.85 .12 (.16) (.04) .11 --
Investment Grade Fund
Class A
2/19/91* to 12/31/91 9.31 .57 .67 1.24 .57 .05
1992 9.93 .71 .04 .75 .72 .06
1993 9.90 .65 .50 1.15 .65 .07
1994 10.33 .62 (1.09) (.47) .62 --
1995 9.24 .64 1.10 1.74 .64 --
1/1/96 to 6/30/96 10.34 .31 (.54) (.23) .31 --
Class B
1/12/95* to 12/31/95 9.26 .54 1.10 1.64 .55 --
1/1/96 to 6/30/96 10.35 .27 (.54) (.27) .27 --
<CAPTION>
- ------------------------------------------------------------------------------------------------
PER SHARE DATA
- ---------------------------------------------------------------------- ------------------------
Net Asset
Value
-------------- Total Net Assets
Total End of Return** End of Period
Distributions Period (%) (in thousands)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Blue Chip Fund
Class A
1991 $ .22 $ 14.59 27.52 $ 79,932
1992 .25 15.29 6.56 99,501
1993 .89 15.58 7.77 117,929
1994 1.65 13.46 (3.02) 123,694
1995 .80 17.22 34.01 170,271
1/1/96 to 6/30/96 .09 18.69 9.07 199,127
Class B
1/12/95* to 12/31/95 .76 17.16 32.76 5,481
1/1/96 to 6/30/96 .04 18.62 8.73 10,646
Insured Intermediate
Tax Exempt Fund
Class A
11/22/93* to 12/31/93 -- 5.79 -- 1,615
1994 .24 5.43 (2.05) 5,688
1995 .30 5.85 13.50 7,017
1/1/96 to 6/30/96 .14 5.70 (.14) 6,581
Class B
1/12/95* to 12/31/95 .26 5.85 12.27 378
1/1/96 to 6/30/96 .11 5.70 (.65) 566
Investment Grade Fund
Class A
2/19/91* to 12/31/91 .62 9.93 15.70+ 18,153
1992 .78 9.90 7.83 37,922
1993 .72 10.33 11.82 48,507
1994 .62 9.24 (4.62) 46,179
1995 .64 10.34 19.40 49,997
1/1/96 to 6/30/96 .31 9.80 (2.24) 46,186
Class B
1/12/95* to 12/31/95 .55 10.35 18.08 1,167
1/1/96 to 6/30/96 .27 9.81 (2.60) 1,578
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------
Ratio to Average Net Assets
Before Expenses
Ratio to Average Net Assets++ Waived or Assumed
--------------------------- -----------------------
Net Net Portfolio
Investment Investment Turnover
Expenses Income Expenses Income Rate
(%) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Blue Chip Fund
Class A
1991 1.28 1.63 1.78 1.14 31
1992 1.46 .95 1.73 .67 44
1993 1.48 .66 1.73 .41 39
1994 1.54 .80 1.79 .55 82
1995 1.49 1.23 1.74 .98 25
1/1/96 to 6/30/96 1.44+ .81+ 1.68+ .56+ 20
Class B
1/12/95* to 12/31/95 2.20+ .52+ 2.46+ .26+ 25
1/1/96 to 6/30/96 2.22+ .03+ 2.39+ (.15)+ 20
Insured Intermediate
Tax Exempt Fund
Class A
11/22/93* to 12/31/93 -- .54+ 1.78+ (1.24)+ --
1994 .14 4.52 .96 3.70 210
1995 .35 5.32 1.22 4.45 47
1/1/96 to 6/30/96 .45+ 5.02+ 1.12+ 4.35+ 33
Class B
1/12/95* to 12/31/95 1.35+ 4.32+ 2.22+ 3.45+ 47
1/1/96 to 6/30/96 1.50+ 3.98+ 2.21+ 3.27+ 33
Investment Grade Fund
Class A
2/19/91* to 12/31/91 -- 7.79+ 1.48+ 6.31+ 51
1992 .57 7.20 1.41 6.36 44
1993 .86 6.27 1.40 5.73 38
1994 .95 6.46 1.47 5.94 17
1995 1.10 6.43 1.43 6.10 27
1/1/96 to 6/30/96 1.11+ 6.12+ 1.40+ 5.83+ 9
Class B
1/12/95* to 12/31/95 1.80+ 5.73+ 2.13+ 5.40+ 27
1/1/96 to 6/30/96 1.81+ 5.41+ 2.22+ 5.00+ 9
* Commencement of operations of Class A shares or date Class B shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed (Note 4)
</TABLE>
<TABLE>
<CAPITON>
Financial Highlights (continued)
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 Less Distributions from
--------------------------------------- --------------------------
Net Realized
Net Asset and
Value Unrealized
-------------- Net Gain (Loss) Total from Net Net
Beginning Investment on Investment Investment Realized
of Period Income Investments Operations Income Gains
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Special Situations Fund
Class A
1991 $ 9.58 $ .10 $ 4.74 $ 4.84 $ 10 $ .33
1992 13.99 -- 2.41 2.41 -- .78
1993 15.62 (.08) 3.29 3.21 -- .83
1994 18.00 (.04) (.62) (.66) -- .91
1995 16.43 (.01) 3.94 3.93 -- .73
1/1/96 to 6/30/96 19.63 .02 1.43 1.45 -- --
Class B
1/12/95* to 12/31/95 16.40 (.01) 3.85 3.84 -- .73
1/1/96 to 6/30/96 19.51 (.05) 1.42 1.37 -- --
Total Return Fund
Class A
1991 11.05 .37 1.97 2.34 .34 .12
1992 12.93 .27 (.41) (.14) .30 --
1993 12.49 .26 .63 .89 .26 1.24
1994 11.88 .21 (.62) (.41) .19 .39
1995 10.89 .39 2.50 2.89 .37 .44
1/1/96 to 6/30/96 12.97 .20 .26 .46 .18 --
Class B
1/12/95* to 12/31/95 10.90 .25 2.54 2.79 .33 .44
1/1/96 to 6/30/96 12.92 .18 .24 .42 .15 --
<CAPTION>
- ------------------------------------------------------------------------------------------------
PER SHARE DATA
- ------------------------------------------------------------------------------------------------
Net Asset
Value
-------------- Total Net Assets
Total End of Return** End of Period
Distributions Period (%) (in thousands)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special Situations Fund
Class A
1991 $.43 $ 13.99 50.47 $ 9,183
1992 .78 15.62 17.26 25,814
1993 .83 18.00 20.52 59,148
1994 .91 16.43 (3.66) 89,906
1995 .73 19.63 23.92 125,331
1/1/96 to 6/30/96 -- 21.08 7.39 146,552
Class B
1/12/95* to 12/31/95 .73 19.51 23.42 4,566
1/1/96 to 6/30/96 -- 20.88 7.02 7,832
Total Return Fund
Class A
1991 .46 12.93 21.51 60,888
1992 .30 12.49 (1.00) 65,537
1993 1.50 11.88 7.18 58,176
1994 .58 10.89 (3.45) 50,714
1995 .81 12.97 26.71 55,442
1/1/96 to 6/30/96 .18 13.25 3.56 54,313
Class B
1/12/95* to 12/31/95 .77 12.92 25.74 270
1/1/96 to 6/30/96 .15 13.19 3.22 693
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------
Ratio to Average Net Assets
Before Expenses
Ratio to Average Net Assets++ Waived or Assumed
--------------------------- -----------------------
Net Net Portfolio
Investment Investment Turnover
Expenses Income Expenses Income Rate
(%) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Special Situations Fund
Class A
1991 -- 1.44 2.31 (.87) 86
1992 1.06 (.05) 1.92 (.91) 88
1993 1.55 (.63) 1.89 (.96) 71
1994 1.65 (.26) 1.90 (.51) 53
1995 1.60 (.08) 1.85 (.33) 80
1/1/96 to 6/30/96 1.55+ .00+ 1.80+ (.25)+ 56
Class B
1/12/95* to 12/31/95 2.33+ (.81)+ 2.59+ (1.07)+ 80
1/1/96 to 6/30/96 2.34+ (.79)+ 2.52+ (.97)+ 56
Total Return Fund
Class A
1991 .83 3.20 1.88 2.14 51
1992 1.29 2.25 1.78 1.76 75
1993 1.45 2.00 1.83 1.62 131
1994 1.63 1.91 1.88 1.66 124
1995 1.58 3.08 1.83 2.83 135
1/1/96 to 6/30/96 1.50+ 3.14+ 1.75+ 2.89+ 68
Class B
1/12/95* to 12/31/95 2.41+ 2.24+ 2.67+ 1.98+ 135
1/1/96 to 6/30/96 2.28+ 2.37+ 2.45+ 2.19+ 68
* Date shares first offered
** Calculated without sales charges
+ Annualized
++ Net of expenses waived or assumed (Note 4)
</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 Funds (comprising First Investors Series Fund), as of June 30, 1996,
the related statement of operations for the six months then ended, the
statement of changes in net assets for the six months ended June 30, 1996
and the year ended December 31, 1995, 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 June 30, 1996, 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 Funds of First Investors Series Fund at June
30, 1996, and the results of their operations, changes in their net assets
and financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
July 31, 1996
This page intentionally left blank.
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
Gregory R. Kingston
Assistant Treasurer
Mark S. Spencer
Assistant Treasurer
FIRST INVESTORS SERIES FUND
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 Fund Only)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data
Management Corp.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
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.
