<PAGE>
PORTFOLIO MANAGERS' LETTER
FIRST INVESTORS BLUE CHIP FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Blue Chip
Fund for the six months ended June 30, 1997. During the period, the Fund's
return on a net asset value basis was 16.4% on Class A shares and 16.0% on Class
B shares compared to a return of 15.5% for the Lipper Growth and Income Average.
At the beginning of the year, stock market observers were anticipating either a
slowdown in the economy or a series of interest rate hikes by the Federal
Reserve that might slow or end the current bull market. However, the economy, as
measured by the gross domestic product, expanded at an annual rate of 4.9% in
the first quarter with few signs of inflation contained in the economic
indicators and statistics. The outlook on inflation may keep the Federal Reserve
from taking any action on interest rates over the next few months. As the main
beneficiaries of the continued solid economic performance, U.S. companies posted
sound earnings and profit growth. The solid profit growth achieved by many
companies, coupled with expectations for continued growth, drove the stock
market to record levels during the first half of 1997.
The Blue Chip Fund's performance was driven by above-average returns from major
pharmaceutical companies such as Warner-Lambert, Eli Lilly, Bristol-Myers
Squibb, and Smithkline Beecham. Select technology companies such as Microsoft,
Sun Microsystems, and L.M. Ericsson, also contributed to the Fund's performance.
Many of the household name securities held in the Fund like General Electric,
Merrill Lynch, DuPont, Allstate, Procter & Gamble, Gillette and Wal-Mart, also
performed well in the first half of the year. The six month performance of the
Fund was held back by the performance of its holdings in select technology
companies such as Seagate, Intel and Hewlett-Packard which underperformed during
the period. The Fund's holdings in the electric utility sector such as FPL
Group, Sierra Pacific and Duke Energy, also underperformed during the period.
The Fund will continue to take a bottom up strategy while remaining sector
neutral and will maintain a long-term horizon. We will continue to focus on
companies with growth opportunities selling at price to earnings multiples in a
reasonable relationship to that growth. We will also continue to invest in
companies that can combine the growth attributes we seek with an income stream
in the form of dividends.
While we believe the economic fundamentals supporting continued solid
performance of the stock market remain in place, investors in equity securities
should be aware of the risks. The current bull market is in its seventh year and
valuations, as determined by price to earnings multiples, are at historic highs.
Substantive indications of a slowdown in the growth of profits could lead to a
reduction in market values. Another cause for concern is that the Federal
Reserve might raise interest rates to combat perceived inflationary pressures.
Higher interest rates could hurt corporate profits, reduce valuations, and
increase the attractiveness of alternative investments. In addition, the
possibility of an external, unanticipated event causing a market downturn is
always a risk. While these risks are real, market fundamentals appear strong and
our outlook for the stock market remains positive.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Patricia D. Poitra
Patricia D. Poitra
Directors of Equities
and Co-Portfolio Manager
/s/ Dennis T. Fitzpatrick
Dennis T. Fitzpatrick
Co-Portfolio Manager
July 28, 1997
1
<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Insured
Intermediate Tax Exempt Fund for the six months ended June 30, 1997. During the
period, the Fund declared dividends from net investment income of 14.4 cents per
share on Class A shares and 11.4 cents per share on Class B shares. For the same
period, the Fund's return on a net asset value basis was 2.5% on Class A shares
and 2.0% on Class B shares compared to the average return of 2.5% for
intermediate maturity municipal bond funds as reported by Lipper Analytical
Services, Inc.
The first half of 1997 ended with an ideal economy: sustained, moderate growth
with little inflation. Early in the year it appeared that the economy might be
growing too fast as gross domestic product expanded at a 4.9% annual rate during
the first quarter. Concerned by the economy's strength, the Federal Reserve
raised short-term interest rates in March for the first time in over two years
as an "insurance policy" in case faster growth led to higher inflation. The
Federal Reserve's action subsequently appeared to be unnecessary as the economy
slowed down significantly in the second quarter and consumer price inflation in
fact decelerated to an annual rate of less than 2.5%.
Although both the bond and stock markets suffered setbacks at times during the
first six months of the year, the combination of moderate growth and low
inflation ultimately provided a positive environment for investors. The markets
were also buoyed by an agreement between the President and Congress to eliminate
the Federal budget deficit over the next five years. Lastly, the markets
benefited from substantial demand for both stocks and bonds throughout the first
half of 1997.
Like most of the financial markets, the municipal bond market was characterized
by strong demand from investors throughout the first half of the year. Despite
issuance of close to $94 billion, the market rarely had trouble distributing
supply due to demand from individuals, insurance companies and non-traditional
buyers of municipal bonds. The strength of this demand is best indicated by the
fact that, during the first six months of 1997, long-term municipal bond prices
rose while long-term Treasury bond prices fell. As a result, tax exempt bonds
provided after-tax returns that significantly surpassed those on taxable bonds
for most investors.
In order to enhance the performance of the Insured Intermediate Tax Exempt Fund,
approximately 25% of its assets were actively managed to improve total return.
The Fund accomplished this goal by taking advantage of short-term inefficiencies
in the municipal bond market. The remaining portion of the Fund continued to
hold its core position of premium non-callable bonds to maximize current yield
and reduce interest rate volatility.
Investors who buy bond funds--whether for income or total return--should be
aware that the value of their investments fluctuates as interest rates change.
For example, a 100 basis point (or 1%) increase in yield on a ten-year Treasury
bond results in roughly a 7% decrease in that bond's price. In each of the last
five years, 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, the insurance does not protect the bonds against
changes in
2
<PAGE>
market value. Investors should be aware of these risks and recognize that
successful investing generally requires a long-term commitment to the market.
The outlook for the financial markets continues to be positive. The economy is
growing moderately, inflation is subdued and the Federal Reserve is unlikely to
tolerate unsustainably fast economic growth. Demand for financial assets is
likely to remain strong both here and overseas. While the sizable recent returns
in some markets are not likely to continue, the factors which might cause a
sustained downturn are not readily apparent. Despite this optimistic outlook,
investors should keep in mind that a diversified portfolio provides the best
insurance against unexpected changes in the financial markets.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
July 28, 1997
3
<PAGE>
PORTFOLIO MANAGERS' LETTER
FIRST INVESTORS INVESTMENT GRADE FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Investment
Grade Fund for the six months ended June 30, 1997. During the period, the Fund
declared dividends from net investment income of 30.6 cents per share on Class A
shares and 27.3 cents per share on Class B shares. For the same period, the
Fund's return on a net asset value basis was 2.6% on Class A shares and 2.3% on
Class B shares compared to 3.2% for the average investment grade bond fund as
measured by Lipper Analytical Services, Inc.
The first half of 1997 ended with an ideal economy: sustained, moderate growth
with little inflation. Early in the year it appeared that the economy might be
growing too fast as gross domestic product expanded at a 4.9% annual rate during
the first quarter. Concerned by the economy's strength, the Federal Reserve
raised short-term interest rates in March for the first time in over two years
as an "insurance policy" in case faster growth led to higher inflation. The
Federal Reserve's action subsequently appeared to be unnecessary as the economy
slowed down significantly in the second quarter and consumer price inflation in
fact decelerated to an annual rate of less than 2.5%.
Although both the bond and stock markets suffered setbacks at times during the
first six months of the year, the combination of moderate growth and low
inflation ultimately provided a positive environment for investors. The markets
were also buoyed by an agreement between the President and Congress to eliminate
the Federal budget deficit over the next five years. Lastly, the markets
benefited from substantial demand for both stocks and bonds throughout the first
half of 1997.
The investment grade corporate bond market outperformed the Treasury market in
the first half of 1997. The year started a bit weak for corporate bonds as
investors feared the Federal Reserve would implement a series of rate hikes.
This, combined with increased new issuance, caused corporate spreads to widen
slightly. However, economic data reassured participants that additional
near-term rate hikes were unlikely. Subsequently, market activity increased to
absorb a new spate of supply, causing spreads to rebound. The strong performance
of corporate bonds has been the key factor in maintaining strong investor
interest in the investment grade market.
In the first quarter of this year, we held the Investment Grade Fund's duration
shorter than our peer group because we felt interest rates would increase.
Initially, this hampered performance, but when the Federal Reserve raised rates
in March, the Fund responded well. Then, amid signs of slowing economic growth
and lack of inflationary pressures, we lengthened the duration in the second
quarter. This change was favorable as the bond market rallied and the Fund
participated in the corresponding price increases. Duration is an important
factor in performance and we constantly evaluate its effect on the Fund.
Credit quality and sector selection also influenced performance. We believe
credit quality is more important than reaching for incremental yield with lower
rated issues. We sacrificed some performance by taking this conservative
position. On the other hand, the portfolio's weighting of different sectors
benefited the Fund's performance. The Fund was overweighted in industrial and
utility bonds, two of
4
<PAGE>
the top performing sectors. We also were underweighted in Yankee bonds (dollar
denominated bonds issued by foreign entities that are registered with the
Securities and Exchange Commission) which had the lowest return for the first
six months of the year.
Merger activity continues to be a prime force in the corporate marketplace and
can have a major impact on credit quality. Even though mergers have risen to
record levels, companies have not overextended their balance sheets. Many of
these transactions have been completed using equity. In a robust stock market,
equity financing is a cheaper form of "currency". Corporate credit quality,
therefore, has remained relatively stable. As always, credit evaluation remains
a primary investment philosophy of the Fund.
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 1% increase in yield on a ten-year Treasury bond results in
roughly a 7% decrease in that bond's price. In each of the last five years, ten-
year Treasury bond yields have moved more than 1%. In addition, the value of a
fund can fluctuate based on changes in the credit quality of the bonds which it
holds. In particular, investments in higher yielding lower-rated debt
obligations are more sensitive than higher-rated investments to adverse economic
changes or individual corporate developments, and thus can be subject to a
higher incidence of default. Investors should be aware of these risks and
recognize that successful investing generally requires a long-term commitment to
the market.
The outlook for the financial markets continues to be positive. The economy is
growing moderately, inflation is subdued and the Federal Reserve is unlikely to
tolerate unsustainably fast economic growth. Demand for financial assets is
likely to remain strong both here and overseas. While the sizable recent returns
in some markets are not likely to continue, the factors which might cause a
sustained downturn are not readily apparent. Despite this optimistic outlook,
investors should keep in mind that a diversified portfolio provides the best
insurance against unexpected changes in the financial markets.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Nancy W. Jones
Nancy W. Jones
Vice President
and Co-Portfolio Manager
/s/ Clark D. Wagner
Clark D. Wagner
Vice President
and Co-Portfolio Manager
July 28, 1997
5
<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS SPECIAL SITUATIONS FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Special
Situations Fund for the six months ended June 30, 1997. During the period, the
Fund's return on a net asset value basis was 7.9% on Class A shares and 7.5% on
Class B shares compared to a 9.0% return for the average small-cap company
growth fund as tracked by Lipper Analytical Services, Inc.
At the beginning of the year, stock market observers were anticipating either a
slowdown in the economy or a series of interest rate hikes by the Federal
Reserve that might slow or end the current bull market. However, the economy, as
measured by the gross domestic product, expanded at an annual rate of 4.9% in
the first quarter with few signs of inflation contained in the economic
indicators and statistics. The outlook on inflation may keep the Federal Reserve
from taking any action on interest rates over the next few months. As the main
beneficiaries of the continued solid economic performance, U.S. companies posted
sound earnings and profit growth. The solid profit growth achieved by many
companies, coupled with expectations for continued growth, drove the stock
market to record levels during the first half of 1997.
The Fund held positions in a number of sectors which produced superior
performance relative to the market. The communications equipment industry
subsector of the technology sector benefited from legislative changes. Globally,
state-owned telecommunication systems are being privatized and opened for
competition which creates the need for new, better, and more advanced equipment.
Our holdings in this sector include ACE*COMM Corp., ECI Telecommunications, L.M.
Ericsson Telephone Co., Motorola Inc., Nokia Corp., and Scientific-Atlanta, Inc.
The energy sector, especially oil service companies, has also yielded strong
returns. Driven by an ever-increasing demand for energy from countries with
expanding economies like China and India, as well as Japan, whose economy is
starting to turn around and strengthen, global exploration and production
continues at a vibrant pace. Improved technology has also lowered the cost of
exploration, thus also contributing to more activity in the sector. The Fund has
positions in a variety of oil service companies which perform various functions
along the different stages of oil exploration and production from pre-drilling
3-D seismic testing to the construction of platforms to transport the oil/ gas
after it has been discovered. These holdings include Veritas DGC, Inc., EVI,
Inc., Patterson Energy, Inc., Falcon Drilling Company, Inc., Precision Drilling
Corporation and Global Industries Ltd., many of which have substantially
outperformed the market.
While the financial sector as a whole performed well, our overweighting in the
consumer finance subsector hindered performance. The concern over rising
consumer debt levels and personal bankruptcies hurt such companies as Aames
Financial Corporation and Imperial Credit Industries, Inc., both of which are
down year-to-date, as well as The Money Store, Inc., whose stock has appreciated
year-to-date, but less than the market itself. The Fund has selectively added to
the financial sector to improve performance by establishing positions in Centura
Banks, Inc., North American Mortgage Company, Resource Bancshares Mortgage
Group, Inc., and Charter One Financial Inc.
6
<PAGE>
Companies in various subsectors of technology did not keep pace with the market
as a whole. These included computer networking and peripherals stocks such as
Cisco Systems, Inc. and Network Appliance, Inc. Other technology stocks which
hampered Fund performance were computer software and services companies such as
Network General Corporation, SystemSoft Corporation, and Atmel Corporation, a
semiconductor manufacturer.
Healthcare stocks also generally underperformed the small cap market. Specific
issues which hindered the Fund's performance were companies with new and
emerging products, drugs, and services such as: Kensey Nash Corporation, which
designs, develops, and makes absorbable medical devices for the sealing of
arterial punctures during diagnostic and therapeutic cardiovascular procedures;
VidaMed, Inc., a company that designs, develops, makes, and sells advanced cost
effective systems for the treatment of enlarged prostate glands; Ethical
Holdings Ltd., which develops and licenses products based on drug delivery
technologies such as transdermal patches; Physician Support Systems, Inc., which
provides business management services to hospitals and hospital affiliated
physicians; and Physicians Resource Group Inc., which provides physician
practice management services to ophthalmic and optometric practices. Our
expectations for healthcare stocks remain positive as the industry is
experiencing legislative changes and fundamental changes in the method of
delivering healthcare.
The Fund will continue to take a bottom up strategy while remaining well
diversified and will maintain a long-term investment horizon. We will continue
to focus on companies with growth opportunities selling at reasonable
valuations, however, depending on a company's particular stage of development
(e.g., early stage, rapid growth, or no earnings), its stock may look expensive
when compared to more traditional valuation measures.
While we believe the economic fundamentals supporting continued solid
performance of the stock market remain in place, investors in equity securities
should be aware of the risks. The current bull market is in its seventh year and
valuations, as determined by price to earnings multiples, are at historic highs.
Substantive indications of a slowdown in the growth of profits could lead to a
reduction in market values. Another cause for concern is that the Federal
Reserve might raise interest rates to combat perceived inflationary pressures.
Higher interest rates could hurt corporate profits, reduce valuations, and
increase the attractiveness of alternative investments. In addition, the
possibility of an external, unanticipated event causing a market downturn is
always a risk. Additional risks particular to small cap stocks are liquidity and
the lack of market makers which can make it more difficult to build or exit a
position. While these risks are real, market fundamentals appear strong and our
outlook for the stock market remains positive.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Patricia D. Poitra
Patricia D. Poitra
Director of Equities
and Portfolio Manager
July 28, 1997
7
<PAGE>
CHIEF INVESTMENT OFFICER'S LETTER
FIRST INVESTORS TOTAL RETURN FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Total
Return Fund for the six months ended June 30, 1997. During the period, the
Fund's return on a net asset value basis was 12.0% on Class A shares and 11.6%
on Class B shares compared to a return of 10.6% for the average flexible fund as
measured by Lipper Analytical Services, Inc.
The first half of 1997 ended with an ideal economy: sustained, moderate growth
with little inflation. Early in the year it appeared that the economy might be
growing too fast as gross domestic product expanded at a 4.9% annual rate during
the first quarter. Concerned by the economy's strength, the Federal Reserve
raised short-term interest rates in March for the first time in over two years
as an "insurance policy" in case faster growth led to higher inflation. The
Federal Reserve's action subsequently appeared to be unnecessary as the economy
slowed down significantly in the second quarter and consumer price inflation in
fact decelerated to an annual rate of less than 2.5%.
Although both the bond and stock markets suffered setbacks at times during the
first six months of the year, the combination of moderate growth and low
inflation ultimately provided a positive environment for investors. The markets
were also buoyed by an agreement between the President and Congress to eliminate
the Federal budget deficit over the next five years. Lastly, the markets
benefited from substantial demand for both stocks and bonds throughout the first
half of 1997.
The Total Return Fund benefited primarily from the strong performance of the
U.S. stock market and secondarily from positive bond market returns,
particularly in the high yield bond sector. Key to the Fund's performance was
the decision during the fourth quarter of 1996 to increase significantly the
Fund's allocation to stocks and decrease its positions in both bonds and cash.
Thus, the Fund was well positioned for the continuation of the stock market's
rally during the first half of 1997. The Total Return Fund ended the semi-annual
reporting period with a diversified portfolio consisting of 66% stocks, 24%
bonds, and 10% cash. The stock investments are divided between medium and large
capitalization stocks, while the bond investments are diversified among
investment grade and high yield corporate debt, and U.S. Treasury obligations.
While we believe the economic fundamentals supporting continued solid
performance of the stock market remain in place, investors in equity securities
should be aware of the risks. The current bull market is in its seventh year and
valuations, as determined by price to earnings multiples, are at historic highs.
Substantive indications of a slowdown in the growth of profits could lead to a
reduction in market values. Another cause for concern is that the Federal
Reserve might raise interest rates to combat perceived inflationary pressures.
Higher interest rates could hurt corporate profits, reduce valuations, and
increase the attractiveness of alternative investments. In addition, the
possibility of an external, unanticipated event which causes a market downturn
is always a risk. The bond market can also be volatile. For example, a 100 basis
point (or 1%) increase in yield on a ten-year Treasury bond results in roughly a
7% decrease in that bond's price. In each of the last five years, ten-year
Treasury bond yields have moved more than 100 basis points. In addition, the
value of a bond can
8
<PAGE>
fluctuate based on changes in its credit quality. In particular, investments in
higher yielding lower-rated debt obligations are more sensitive than higher-
rated investments to adverse economic changes or individual corporate
developments, and thus can be subject to a higher incidence of default.
Investors should be aware of these risks and recognize that successful investing
generally requires a long-term commitment to the market.
The outlook for the financial markets continues to be positive. The economy is
growing moderately, inflation is subdued and the Federal Reserve is unlikely to
tolerate unsustainably fast economic growth. Demand for financial assets is
likely to remain strong here and overseas. While sizable recent returns in some
markets are not likely to continue, the factors which might cause a sustained
downturn are not readily apparent. Despite this optimistic outlook, investors
should keep in mind that a diversified portfolio provides the best insurance
against unexpected changes in the financial markets.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Clark D. Wagner
Clark D. Wagner
Chief Investment Officer
July 28, 1997
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS BLUE CHIP FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--93.7%
BASIC MATERIALS--5.5%
16,400 Aluminum Company of America $ 1,236,150 $ 38
90,600 Du Pont (E.I.) de Nemours & Company 5,696,475 173
11,800 *FMC Corporation 937,362 29
23,700 Freeport-McMoRan Copper & Gold, Inc. - Class "B" 737,662 22
32,100 International Paper Company 1,558,856 47
35,600 James River Corporation of Virginia 1,317,200 40
53,500 Monsanto Company 2,303,844 70
36,400 Morton International, Inc. 1,098,825 33
10,300 Pioneer Hi-Bred International, Inc. 824,000 25
24,200 Sigma-Aldrich Corporation 848,512 26
31,500 Weyerhauser Company 1,638,000 50
- ---------------------------------------------------------------------------------------
18,196,886 553
- ---------------------------------------------------------------------------------------
CAPITAL GOODS--11.6%
26,700 AlliedSignal, Inc. 2,242,800 68
38,700 Avery Dennison Corporation 1,552,837 47
30,600 Boeing Company 1,623,712 49
39,500 Corning, Inc. 2,197,187 67
28,600 Emerson Electric Company 1,574,787 48
14,200 Fluor Corporation 783,662 24
16,500 Foster Wheeler Corporation 668,250 20
143,500 General Electric Company 9,381,312 286
51,100 Ingersoll-Rand Company 3,155,425 96
19,400 Lockheed Martin Corporation 2,009,112 61
96,900 *Philip Services Corporation 1,538,287 47
35,500 Tenneco, Inc. 1,604,156 49
39,200 Textron, Inc. 2,601,900 79
24,900 Thomas & Betts Corporation 1,308,806 40
26,400 Tyco International Ltd. 1,836,450 56
28,400 United Technologies Corporation 2,357,200 72
45,700 *USA Waste Services, Inc. 1,765,162 54
- ---------------------------------------------------------------------------------------
38,201,045 1,163
- ---------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMUNICATION SERVICES--4.3%
68,400 A T & T Corporation $ 2,398,275 $ 73
24,000 *AirTouch Communications, Inc. 657,000 20
32,100 Bell Atlantic Corporation 2,435,587 74
47,100 BellSouth Corporation 2,184,262 67
63,600 GTE Corporation 2,790,450 85
26,100 MCI Communications Corporation 999,142 30
33,200 SBC Communications, Inc. 2,054,250 63
13,400 Sprint Corporation 705,175 21
- ---------------------------------------------------------------------------------------
14,224,141 433
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICALS--8.5%
25,700 Adidas AG (ADR) (Note 5) 1,423,243 43
33,300 *Costco Companies, Inc. 1,094,737 33
66,900 *CUC International, Inc. 1,726,856 53
64,400 *Federated Department Stores, Inc. 2,237,900 68
13,350 Goodyear Tire & Rubber Company 845,222 26
53,850 Hasbro, Inc. 1,527,994 47
53,500 Hilton Hotels Corporation 1,421,094 43
31,900 Home Depot, Inc. 2,199,106 67
68,300 *Lear Corporation 3,030,812 92
19,600 Masco Corporation 818,300 25
15,200 McGraw-Hill Companies, Inc. 893,950 27
45,700 Ogden Corporation 993,975 30
88,200 *PETsMART, Inc. 1,014,300 31
45,000 *Staples, Inc. 1,046,250 32
64,400 Tribune Company 3,095,225 94
29,900 Unifi, Inc. 1,117,512 34
96,300 Wal-Mart Stores, Inc. 3,256,144 99
- ---------------------------------------------------------------------------------------
27,742,620 844
- ---------------------------------------------------------------------------------------
CONSUMER STAPLES--12.7%
69,600 Anheuser-Busch Companies, Inc. 2,918,850 89
14,200 Clorox Company 1,874,400 57
63,900 Coca-Cola Company 4,313,250 131
- ---------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS BLUE CHIP FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
36,400 ConAgra, Inc. $ 2,334,150 $ 71
25,300 CPC International, Inc. 2,335,506 71
42,100 Gillette Company 3,988,975 121
100,000 *Host Marriott Corporation 1,781,250 54
34,800 Kimberly-Clark Corporation 1,731,300 53
130,900 PepsiCo, Inc. 4,916,931 150
21,300 Philip Morris Companies, Inc. 945,188 29
30,100 Procter & Gamble Company 4,251,625 129
22,100 Rite Aid Corporation 1,102,238 34
24,795 *Safeway, Inc. 1,143,669 35
47,500 *Steiner Leisure Ltd. 1,324,063 40
41,887 *Tele-Communications, Inc. Liberty Media Group -
Series "A" 994,816 30
14,200 Time Warner, Inc. 685,150 21
11,600 Unilever N.V. 2,528,800 77
30,800 Walt Disney Company 2,471,700 75
- ---------------------------------------------------------------------------------------
41,641,861 1,267
- ---------------------------------------------------------------------------------------
ENERGY--8.5%
18,900 Amoco Corporation 1,643,119 50
40,600 Baker Hughes, Inc. 1,570,713 48
7,100 Burlington Resources, Inc. 313,288 10
30,500 Chevron Corporation 2,255,094 69
36,200 Dresser Industries, Inc. 1,348,450 41
71,400 Exxon Corporation 4,391,100 134
12,300 Kerr-McGee Corporation 779,513 24
37,800 Mobil Corporation 2,641,275 80
64,100 *Oryx Energy Company 1,354,113 41
87,200 Royal Dutch Petroleum Company 4,741,500 144
15,100 Schlumberger Ltd. 1,887,500 57
13,700 Texaco, Inc. 1,489,875 45
23,500 Unocal Corporation 912,094 28
55,000 Williams Companies, Inc. 2,406,250 73
- ---------------------------------------------------------------------------------------
27,733,884 844
- ---------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL--13.1%
22,200 Allstate Corporation $ 1,620,600 $ 49
23,500 American Express Company 1,750,750 53
22,700 American International Group, Inc. 3,390,813 103
34,800 BankAmerica Corporation 2,246,775 68
42,200 BankBoston Corporation 3,041,038 93
37,500 Chase Manhattan Corporation 3,639,844 111
38,500 Citicorp 4,641,656 141
66,800 Fannie Mae 2,914,150 89
25,800 First Union Corporation 2,386,500 73
50,900 Freddie Mac 1,749,688 53
30,600 Jefferson-Pilot Corporation 2,138,175 65
24,000 Marshall & Ilsley Corporation 975,000 30
31,200 Merrill Lynch & Company, Inc. 1,860,300 57
34,400 NationsBank Corporation 2,218,800 68
50,500 Norwest Corporation 2,840,625 87
107,200 The Money Store, Inc. 3,075,300 94
12,100 Travelers Group, Inc 763,056 23
73,200 USF&G Corporation 1,756,800 54
- ---------------------------------------------------------------------------------------
43,009,870 1,311
- ---------------------------------------------------------------------------------------
HEALTHCARE--11.8%
32,700 Abbott Laboratories 2,182,725 66
41,300 American Home Products Corporation 3,159,450 96
28,400 *Amgen, Inc. 1,650,750 50
30,000 Baxter International, Inc. 1,567,500 48
60,300 Bristol-Myers Squibb Company 4,884,300 149
71,700 *Cardiovascular Dynamics, Inc. 564,638 17
46,600 Eli Lilly & Company 5,093,963 155
49,600 Johnson & Johnson 3,193,000 97
71,300 *MedPartners, Inc. 1,541,863 47
21,200 Medtronic, Inc. 1,717,200 52
51,400 Merck & Company, Inc. 5,319,900 162
78,400 Pharmacia & Upjohn, Inc. 2,724,400 83
42,900 *RoTech Medical Corporation 860,681 26
- ---------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS BLUE CHIP FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE (continued)
18,500 SmithKline Beecham PLC - Class "A" (ADR) $ 1,695,063 $ 52
21,800 Warner-Lambert Company 2,708,650 83
- ---------------------------------------------------------------------------------------
38,864,083 1,183
- ---------------------------------------------------------------------------------------
TECHNOLOGY--15.6%
46,700 *Adaptec, Inc. 1,622,825 49
71,300 *Atmel Corporation 1,996,400 61
37,100 *Cadence Design Systems, Inc. 1,242,850 38
34,700 *Cisco Systems, Inc. 2,329,238 71
53,400 Comdisco, Inc. 1,388,400 42
14,200 Eastman Kodak Company 1,089,850 33
111,000 Ericsson (L.M.) Telephone Co. - Class "B" (ADR) 4,370,625 133
44,400 First Data Corporation 1,950,825 59
15,000 Grainger (W.W.), Inc. 1,172,813 36
10,700 *Hadco Corporation 700,850 21
40,800 Hewlett-Packard Company 2,284,800 70
25,600 Intel Corporation 3,630,400 111
20,000 *LSI Logic Corporation 640,000 20
55,100 *Micron Technology, Inc. 2,200,556 67
33,500 *Microsoft Corporation 4,233,563 129
53,300 Motorola, Inc. 4,050,800 123
43,300 *Newbridge Networks Corporation 1,883,550 57
45,800 Nokia Corporation - Class "A" (ADR) 3,377,750 103
21,700 *Oracle Corporation 1,093,138 33
19,200 Raytheon Company 979,200 30
22,900 *Seagate Technology, Inc. 805,794 25
41,700 *Sterling Commerce, Inc. 1,370,888 42
79,000 *Sun Microsystems, Inc. 2,940,285 90
28,500 *Synopsys, Inc. 1,047,375 32
128,700 *SystemSoft Corporation 1,383,525 42
17,900 Texas Instruments, Inc. 1,504,719 46
- ---------------------------------------------------------------------------------------
51,291,019 1,563
- ---------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--.5%
17,800 Burlington Northern Santa Fe $ 1,599,775 $ 49
- ---------------------------------------------------------------------------------------
UTILITIES--1.6%
44,400 Duke Energy Corporation 2,128,425 65
33,200 FPL Group, Inc. 1,529,275 47
53,500 Sierra Pacific Resources 1,712,000 52
- ---------------------------------------------------------------------------------------
5,369,700 164
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $216,969,404) 307,874,884 9,374
- ---------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.9%
$ 1,250M Golden Peanut, 5.52%, 7/24/97 1,245,471 38
4,000M Potomac Electric & Power Co., 5.53%, 7/25/97 3,985,675 121
2,500M Prudential Funding Corp., 5.54%, 7/29/97 2,489,228 76
5,000M Union Electric Co., 5.55%, 7/17/97 4,984,563 152
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$12,704,937) 12,704,937 387
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $229,674,341) 97.6% 320,579,821 9,761
OTHER ASSETS, LESS LIABILITIES 2.4 7,844,397 239
- ---------------------------------------------------------------------------------------
NET ASSETS 100.0% $328,424,218 $10,000
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
15
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
June 30, 1997
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS--96.9%
ALASKA--2.7%
$ 200M Anchorage General Obligation, 6.50%, 7/1/2004 $ 221,500 $ 275
- -------------------------------------------------------------------------------------
ARIZONA--16.6%
255M Apache Junction Water District, 5%, 7/1/2003 261,056 324
250M Maricopa County Uni. Sch. Dist. Gen. Oblig. #80
(Chandler), 6.60%, 7/1/2006 283,437 352
250M Phoenix Civic Impt. Corp. Mun. Facs. Excise Tax
Rev., 6.75%, 7/1/2004 280,312 348
300M Pima County Indl. Dev. Auth. Healthpartners, 5%,
4/1/2004 305,250 379
200M Yuma County Indl. Dev. Auth. Reg. Med. Ctr., 5%,
8/1/2002 204,500 254
- -------------------------------------------------------------------------------------
1,334,555 1,657
- -------------------------------------------------------------------------------------
CALIFORNIA--2.1%
150M Pittsburgh Pub. Fing. Auth. Wastewater Rev.,
6.80%, 6/1/2001 * 165,750 206
- -------------------------------------------------------------------------------------
HAWAII--3.1%
250M Hawaii General Obligation, 5%, 3/1/2004 254,085 315
- -------------------------------------------------------------------------------------
ILLINOIS--21.7%
Cook County High School District General
Obligation #205:
250M 5.40%, 12/1/2001 259,375 322
200M 5.90%, 12/1/2003 211,250 262
250M Chicago Board of Education, 6%, 12/1/2007 272,500 338
250M Chicago General Obligation, 6.25%, 10/31/2001 267,187 332
250M Northwest Subn. Mun. Jt. Action Water Agy.,
6.35%, 5/1/2006 276,875 344
400M Regional Transportation Authority, 7.75%,
6/1/2003 462,500 574
- -------------------------------------------------------------------------------------
1,749,687 2,172
- -------------------------------------------------------------------------------------
INDIANA--2.1%
150M Valparaiso Indpt. Multi-Schools Bldg. Corp.,
6.625%, 7/1/2002* 166,125 206
- -------------------------------------------------------------------------------------
KENTUCKY--3.2%
200M Louisville & Jefferson County Met. Sewer
District, 10%, 5/15/2004 259,750 322
- -------------------------------------------------------------------------------------
LOUISIANA--2.4%
175M Louisiana General Obligation, 7%, 5/1/2001 190,402 236
- -------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
MICHIGAN--13.2%
$ 300M Allegan Pub. Schl. Dist. Gen. Oblig., 6.50%,
5/1/2007 $ 337,125 $ 419
1,000M Brighton Area Schl. Dist. Gen. Oblig., Zero
Coupon, 5/1/2005* 336,250 417
350M Greater Detroit Resources Recovery Authority
Revenue, 6.25%, 12/13/2007 387,187 481
- -------------------------------------------------------------------------------------
1,060,562 1,317
- -------------------------------------------------------------------------------------
NEW JERSEY--2.8%
200M New Jersey Econ. Dev. Auth. Mkt. Transition Fac.
Rev., 7%, 7/1/2004* 226,750 281
- -------------------------------------------------------------------------------------
NEW YORK--9.7%
New York City General Obligation:
150M 6.625%, 8/1/2002 166,125 206
150M 5%, 8/1/2005 151,313 188
250M 8%, 8/1/2005 300,938 374
150M Niagara Falls Bridge Commission, 6.30%,
10/1/2002* 164,813 205
- -------------------------------------------------------------------------------------
783,189 973
- -------------------------------------------------------------------------------------
OHIO--2.8%
200M Columbus City Sch. Dist. Gen. Oblig., 6.65%,
12/1/2002* 224,000 278
- -------------------------------------------------------------------------------------
OREGON--2.0%
150M Tillamook General Obligation, 5.75%, 1/15/2002 157,500 196
- -------------------------------------------------------------------------------------
PENNSYLVANIA--2.8%
200M Pennsylvania Intergovernmental Coop. Auth. Spec.
Tax Rev., 7%, 6/15/2004 226,250 281
- -------------------------------------------------------------------------------------
RHODE ISLAND--2.8%
200M Rhode Island Depositors Econ. Protection Corp.,
7.10%, 8/1/2001 * 222,750 277
- -------------------------------------------------------------------------------------
TEXAS--4.1%
300M Harris County Toll Road Gen. Oblig., 6.50%,
8/15/2002* 331,125 411
- -------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS INSURED INTERMEDIATE TAX EXEMPT FUND
June 30, 1997
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
WASHINGTON--2.8%
$ 200M Snohomish & Island Counties Schl. Dist. Gen.
Oblig. #401 (Stanwood), 7%, 12/15/2005 $ 229,250 $ 285
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $7,476,515) 96.9% 7,803,230 9,688
OTHER ASSETS, LESS LIABILITIES 3.1 251,374 312
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $8,054,604 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Municipal Bonds which have been prerefunded are shown at the prerefunded call
date.
See notes to financial statements
18
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS INVESTMENT GRADE FUND
June 30, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--92.4%
AEROSPACE/DEFENSE--4.8%
$ 700M Boeing Co., 6.35%, 2003 $ 689,149 $ 148
750M Lockheed Martin Corp., 7.25%, 2006 759,847 164
750M Rockwell International Corp., 8.375%, 2001 793,549 171
- --------------------------------------------------------------------------------------
2,242,545 483
- --------------------------------------------------------------------------------------
AGRICULTURAL PRODUCTS--1.5%
700M Archer-Daniels-Midland Co., 7.125%, 2013 707,793 153
- --------------------------------------------------------------------------------------
APPAREL/TEXTILES--.6%
250M VF Corp., 9.50%, 2001 274,010 59
- --------------------------------------------------------------------------------------
BUILDING MATERIALS--1.4%
600M Masco Corp., 9%, 2001 647,938 140
- --------------------------------------------------------------------------------------
CHEMICALS--3.2%
750M Du Pont (E.I.) de Nemours & Co., 8.125%, 2004 806,914 174
700M Lubrizol Corp., 7.25%, 2025 678,492 146
- --------------------------------------------------------------------------------------
1,485,406 320
- --------------------------------------------------------------------------------------
CONGLOMERATES--3.2%
700M Hanson Overseas, B.V., 7.375%, 2003 715,053 154
750M Tenneco, Inc., 7.875%, 2027 776,959 167
- --------------------------------------------------------------------------------------
1,492,012 321
- --------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--1.6%
700M American Home Products Corp., 7.90%, 2005 743,235 160
- --------------------------------------------------------------------------------------
CONSUMER PRODUCTS--2.2%
1,000M Mattel, Inc., 6.75%, 2000 1,001,465 216
- --------------------------------------------------------------------------------------
ELECTRIC & GAS UTILITIES--10.3%
750M Baltimore Gas & Electric Co., 6.50%, 2003 739,720 159
1,000M Duke Energy Corp., 5.875%, 2003 951,918 205
800M Kansas Gas & Electric Co., 7.60%, 2003 825,452 178
525M Old Dominion Electric Cooperative, 7.97%, 2002 542,554 117
- --------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS INVESTMENT GRADE FUND
June 30, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRIC & GAS UTILITIES (continued)
$ 750M Philadelphia Electric Co., 8%, 2002 $ 783,601 $ 169
925M Southwestern Electric Power Co., 7%, 2007 926,646 200
- --------------------------------------------------------------------------------------
4,769,891 1,028
- --------------------------------------------------------------------------------------
ENERGY--2.8%
700M Baroid Corp., 8%, 2003 739,007 159
500M Mobil Corp., 8.625%, 2021 575,146 124
- --------------------------------------------------------------------------------------
1,314,153 283
- --------------------------------------------------------------------------------------
ENERGY EXPLORATION/PRODUCTS--1.6%
750M Phillips Petroleum Co., 7.20%, 2023 721,350 155
- --------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--1.5%
700M Walt Disney Co., 6.75%, 2006 693,274 149
- --------------------------------------------------------------------------------------
FINANCIAL SERVICES--18.2%
660M BankAmerica Corp., 9.50%, 2001 719,681 155
875M Barnett Banks, Inc., 8.50%, 1999 904,501 195
700M Chemical Bank, Inc., 7%, 2005 699,265 151
800M Citicorp, 8%, 2003 842,574 182
800M First Union Corp., 8.125%, 2002 841,936 181
750M Fleet Capital, 7.92%, 2026 739,011 159
700M Key Corp., 7.50%, 2006 715,136 154
750M Mellon Bank N.A., 6.50%, 2005 721,531 155
550M Meridian Bancorp, 7.875%, 2002 573,947 124
925M Morgan Guaranty Trust Co., 7.375%, 2002 946,848 204
700M NationsBank Corp., 8.125%, 2002 738,073 159
- --------------------------------------------------------------------------------------
8,442,503 1,819
- --------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--7.7%
750M Anheuser-Busch Cos., Inc., 7%, 2005 751,729 162
500M Coca-Cola Enterprises, Inc., 7.875%, 2002 522,963 113
700M Hershey Foods Corp., 6.70%, 2005 686,801 148
- --------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
FOOD/BEVERAGE/TOBACCO (continued)
$ 900M Philip Morris Cos., Inc., 7.125%, 2002 $ 907,921 $ 196
650M Universal Corp., 9.25%, 2001 697,661 150
- --------------------------------------------------------------------------------------
3,567,075 769
- --------------------------------------------------------------------------------------
GAS TRANSMISSION--3.0%
700M Columbia Gas System, Inc., 6.80%, 2005 690,080 149
700M Enron Corp., 7.125%, 2007 702,679 151
- --------------------------------------------------------------------------------------
1,392,759 300
- --------------------------------------------------------------------------------------
HEALTHCARE--1.0%
425M Tenet Healthcare Corp., 10.125%, 2005 463,250 100
- --------------------------------------------------------------------------------------
INVESTMENT/FINANCE COMPANIES--5.3%
700M Associates Corp. of North America, 7.875%, 2001 729,401 157
700M General Electric Capital Corp., 7.875%, 2006 747,983 161
700M General Motors Acceptance Corp., 7.125%, 1999 709,523 153
250M International Lease Finance Corp., 8.875%, 2001 267,937 58
- --------------------------------------------------------------------------------------
2,454,844 529
- --------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--5.0%
700M New York Times Co., Inc., 7.625%, 2005 724,869 156
750M News America Holdings, Inc., 8.50%, 2005 800,689 173
750M PanAmSat Capital Corp., 9.75%, 2000 785,625 169
- --------------------------------------------------------------------------------------
2,311,183 498
- --------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--1.7%
750M Temple Inland, Inc., 9%, 2001 808,392 174
- --------------------------------------------------------------------------------------
RETAIL-FOOD/DRUG--1.6%
700M Kroger Co., 8.50%, 2003 734,710 158
- --------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--1.6%
700M Wal-Mart Stores, Inc., 8%, 2006 757,336 163
- --------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS INVESTMENT GRADE FUND
June 30, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY--3.1%
$ 750M International Business Machines Corp., 7%, 2025 $ 711,374 $ 153
725M Xerox Corp., 7.15%, 2004 734,487 158
- --------------------------------------------------------------------------------------
1,445,861 311
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS--8.0%
750M GTE Corp., 7.90%, 2027 759,719 164
850M MCI Communication Corp., 7.50%, 2004 884,966 191
500M MFS Communications Co., Inc., 0%-8.875%, 2006 396,875 86
700M New York Telephone Co., 7.25%, 2024 666,903 144
1,000M Pacific Bell Telephone Co., 7%, 2004 1,007,964 217
- --------------------------------------------------------------------------------------
3,716,427 802
- --------------------------------------------------------------------------------------
TRANSPORTATION--1.5%
700M Norfolk Southern Corp., 7.35%, 2007 716,274 154
- --------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $42,533,822) 42,903,686 9,244
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--4.4%
2,100M United States Treasury Bond, 6.625%, 2027 (cost
$2,006,156) 2,054,718 443
- --------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.1%
500M McCormick & Company, Inc., 6.05%, 7/1/97 (cost
$500,000) 500,000 108
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $45,039,978) 97.9% 45,458,404 9,795
OTHER ASSETS, LESS LIABILITIES 2.1 951,530 205
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $46,409,934 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
22
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS SPECIAL SITUATIONS FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--87.6%
BASIC MATERIALS--2.3%
38,500 Boise Cascade Corporation $ 1,359,531 $ 74
14,500 ChemFirst, Inc. 393,312 21
34,300 *ChiRex, Inc. 407,312 22
34,300 *Gaylord Container Corporation - Class "A" 263,681 14
34,300 Lilly Industries, Inc. - Class "A" 690,287 38
26,100 Louisiana-Pacific Corporation 551,362 30
22,800 Schulman (A.), Inc. 561,450 31
- ---------------------------------------------------------------------------------------
4,226,935 230
- ---------------------------------------------------------------------------------------
CAPITAL GOODS--10.1%
69,400 AGCO Corporation 2,494,062 136
10,400 AMCOL International Corporation 188,500 10
43,200 *American Residential Services, Inc. 1,004,400 55
55,800 *Checkpoint Systems, Inc. 896,287 49
35,800 Columbus McKinnon Corporation 680,200 37
40,600 Corning, Inc. 2,258,375 123
69,100 *Corporate Express, Inc. 997,631 54
27,600 *Eastern Environmental Services, Inc. 441,600 24
22,800 *EVI, Inc. 957,600 52
13,800 GenCorp, Inc. 319,125 17
69,000 *ITEQ, Inc. 655,500 36
42,700 *Jacobs Engineering Group, Inc. 1,147,562 62
21,600 Millipore Corporation 950,400 52
1,944 *Motivepower Industries, Inc. 31,104 2
41,400 *Newpark Resources, Inc. 1,397,250 76
56,100 *Philip Services Corporation 890,587 48
54,200 *U.S. Office Products Company 1,656,487 90
58,600 *US Filter Corporation 1,596,850 87
- ---------------------------------------------------------------------------------------
18,563,520 1,010
- ---------------------------------------------------------------------------------------
COMMUNICATION SERVICES--.1%
3,200 *Brooks Fiber Properties, Inc. 108,000 6
- ---------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS SPECIAL SITUATIONS FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER CYCLICALS--14.4%
32,200 Adidas AG (ADR) (Note 5) $ 1,783,207 $ 97
53,300 *BMC West Corporation 652,925 36
95,900 *Checkfree Corporation 1,690,237 92
55,300 *CUC International, Inc. 1,427,431 78
10,300 *Dress Barn, Inc. 200,850 11
54,200 *Eagle Hardware & Garden, Inc. 1,239,825 67
63,400 *Extended Stay America, Inc. 998,550 54
27,000 *Federated Department Stores, Inc. 938,250 51
43,100 *Friedman's, Inc. - Class "A" 985,912 54
28,200 *Hibbett Sporting Goods, Inc. 507,600 28
52,500 *Homegate Hospitality, Inc. 511,875 28
65,100 Innkeepers USA Trust 976,500 53
112,700 *Lithia Motors, Inc. - Class "A" 1,239,700 67
53,000 Oakwood Homes Corporation 1,272,000 69
49,800 *OfficeMax, Inc. 718,987 39
88,900 Ogden Corporation 1,933,575 105
67,700 *PETsMART, Inc. 778,550 42
47,700 *Prime Hospitality Corporation 942,075 51
13,700 *Proffitt's, Inc. 601,087 33
32,400 *Saks Holdings, Inc. 810,000 44
47,700 *Scientific Games Holdings Corporation 983,812 53
76,000 *The Finish Line, Inc. - Class "A" 1,111,500 60
50,700 *The Neiman Marcus Group, Inc. 1,330,875 72
28,400 TJ International, Inc. 667,400 36
71,300 *Travis Boats & Motors, Inc. 935,812 51
173,900 *USCI, Inc. 695,600 38
35,200 *Vans, Inc. 532,400 29
- ---------------------------------------------------------------------------------------
26,466,535 1,438
- ---------------------------------------------------------------------------------------
CONSUMER STAPLES--8.4%
17,800 *American Radio Systems Corporation 709,775 39
34,400 Apple South, Inc. 524,600 29
60,200 *Cinar Films, Inc. - Class "B" 1,956,500 106
21,600 *Evergreen Media Corporation - Class "A" 963,900 52
- ---------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
166,400 *Four Media Corporation $ 1,289,600 $ 70
37,800 Gaylord Entertainment Company - Class "A" 871,762 47
86,900 *Metromedia International Group 1,097,112 60
59,400 Richfood Holdings, Inc. 1,544,400 84
51,500 Rite Aid Corporation 2,568,562 140
38,000 *Steiner Leisure Ltd. 1,059,250 58
92,250 *Tele-Communications, Inc. Liberty Media Group -
Series "A" 2,190,937 119
46,300 The Rival Company 682,925 37
- ---------------------------------------------------------------------------------------
15,459,323 841
- ---------------------------------------------------------------------------------------
ENERGY--6.1%
39,000 *Cliffs Drilling Company 1,423,500 77
24,900 *Falcon Drilling Company, Inc. 1,434,862 78
40,700 *Global Industries Ltd. 950,728 52
62,300 *Nabors Industries, Inc. 1,557,500 85
49,800 *Patterson Energy, Inc. 2,259,675 123
31,400 *Precision Drilling Corporation - Class "A" 1,518,975 83
35,600 *Trico Marine Services, Inc. 776,525 42
58,800 *Veritas DGC, Inc. 1,323,000 72
- ---------------------------------------------------------------------------------------
11,244,765 612
- ---------------------------------------------------------------------------------------
FINANCIAL--12.8%
25,350 Aames Financial Corporation 468,975 25
89,000 Ambassador Apartments, Inc. 2,213,875 120
7,400 *AmeriCredit Corporation 155,400 8
27,600 Centura Banks, Inc. 1,266,150 69
31,900 Charter One Financial, Inc. 1,718,613 93
34,500 Commercial Federal Corporation 1,280,813 70
34,060 Conseco, Inc. 1,260,220 69
52,100 *HealthCare Financial Partners, Inc. 1,061,538 58
89,100 *Imperial Credit Industries, Inc. 1,832,119 100
100,800 Interpool, Inc. 1,486,800 81
30,308 Mercantile Bancorporation, Inc. 1,841,211 100
17,200 *New Century Financial Corporation 249,400 14
- ---------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS SPECIAL SITUATIONS FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
64,900 *NHP, Inc. $ 1,460,250 $ 79
31,400 North American Mortgage Company 743,788 40
18,000 Redwood Trust, Inc. 841,500 46
51,500 Resources Bancshares Mortgage Group, Inc. 1,017,125 55
44,600 The Money Store, Inc. 1,279,463 70
50,100 Titan International, Inc. 883,013 48
29,000 USF&G Corporation 696,000 38
27,500 Washington Federal Savings & Loan Associaton 706,406 38
69,100 Westfield America, Inc. 1,166,063 63
- ---------------------------------------------------------------------------------------
23,628,722 1,284
- ---------------------------------------------------------------------------------------
HEALTHCARE--9.6%
53,800 *Atrix Laboratories, Inc. 659,050 36
16,400 *Centocor, Inc. 509,425 28
49,900 *CIMA Labs, Inc. 205,838 11
20,600 *Cohr, Inc. 386,250 21
28,000 DENTSPLY International, Inc. 1,372,000 75
75,600 *FPA Medical Management, Inc. 1,790,775 97
33,000 *Genesis Health Ventures, Inc. 1,113,750 61
69,900 *Gensia Sicor, Inc. 310,181 17
31,400 *HCIA, Inc. 1,051,900 57
39,000 *Health Care and Retirement Corporation 1,301,625 71
71,800 *Health Systems Design Corporation 475,675 26
60,200 *Kensey Nash Corporation 647,150 35
36,000 *Ligand Pharmaceuticals - Class "B" 463,500 25
41,200 *Norland Medical Systems, Inc. 448,050 24
43,200 *Pediatric Services of America, Inc. 869,400 47
56,000 *Physician Support Systems, Inc. 686,000 37
58,000 *Physicians Resource Group, Inc. 522,000 28
5,200 *Quintiles Transnational Corporation 362,050 20
45,100 *RoTech Medical Corporation 904,819 49
46,500 *Sunquest Information Systems, Inc. 697,500 38
52,300 *US Bioscience, Inc. 503,388 27
- ---------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE (continued)
42,600 *Vencor, Inc. $ 1,799,850 $ 98
108,200 *VidaMed, Inc. 547,763 30
- ---------------------------------------------------------------------------------------
17,627,939 958
- ---------------------------------------------------------------------------------------
TECHNOLOGY--22.9%
53,300 *ACE*COMM Corporation 1,046,013 57
60,200 *Adaptec, Inc. 2,091,950 114
44,800 *Alliance Semiconductor Corporation 366,800 20
26,600 *Altera Corporation 1,343,300 73
19,100 *Ascend Communications, Inc. 752,063 41
33,100 *Atmel Corporation 926,800 50
34,500 *BISYS Group, Inc. 1,440,375 78
13,800 *CFM Technologies, Inc. 451,950 25
18,800 *Cisco Systems, Inc. 1,261,950 69
46,700 *Credence Systems Corporation 1,398,081 76
27,500 *Cylink Corporation 312,813 17
67,800 ECI Telecommunications 2,017,050 110
24,800 *Elexsys International, Inc. 415,400 23
51,000 *EMC Corporation 1,989,000 108
46,300 Ericsson (L.M.) Telephone Co. - Class "B" (ADR) 1,823,063 99
34,700 *Etec Systems, Inc. 1,487,763 81
20,600 *Hadco Corporation 1,349,300 73
38,200 *Integrated Device Technology, Inc. 401,100 22
8,000 Intel Corporation 1,134,500 62
38,000 *Kent Electronics Corporation 1,394,125 76
10,300 *Microsoft Corporation 1,301,663 71
15,900 *MicroTouch Systems, Inc. 365,700 20
24,300 Motorola, Inc. 1,846,800 100
17,800 *Network Appliance, Inc. 676,400 37
66,700 *Network General Corporation 992,163 54
22,200 Nokia Corporation - Class "A" (ADR) 1,637,250 89
30,700 *Octel Communications Corporation 719,531 39
31,125 *Oracle Corporation 1,567,922 85
31,900 *PairGain Technologies, Inc. 494,450 27
- ---------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS SPECIAL SITUATIONS FUND
June 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
SHARES FOR EACH
OR $10,000 OF
WARRANTS SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
17,300 *Proxim, Inc. $ 419,525 $ 23
42,200 *Saville Systems Ireland PLC (ADR) 2,194,400 119
60,400 Scientific-Atlanta, Inc. 1,321,250 72
27,500 *Sterling Commerce, Inc. 904,063 49
28,600 *Synopsys, Inc. 1,051,050 57
166,700 *SystemSoft Corporation 1,792,025 97
20,600 *Versant Object Technology Corporation 123,600 7
31,900 *XcelleNet, Inc. 522,363 28
44,800 *Xylan Corporation 761,600 41
- ---------------------------------------------------------------------------------------
42,095,151 2,289
- ---------------------------------------------------------------------------------------
TRANSPORTATION--.9%
21,500 *Landstar System, Inc. 604,688 33
167,000 Transportacion Maritima Mexicana SA de C.V. -
Class "L" (ADR) 1,033,313 56
- ---------------------------------------------------------------------------------------
1,638,001 89
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $129,543,747) 161,058,891 8,757
- ---------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--.8%
FINANCIAL
52,700 Excel Realty Trust, Inc., "A" $2.125 (cost
$1,317,500) 1,436,075 78
- ---------------------------------------------------------------------------------------
WARRANTS--.0%
CAPITAL GOODS
307 *Morrison Knudsen Corporation (expiring 3/11/03)
(cost $0) 1,919 --
- ---------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM CORPORATE NOTES--11.2%
$ 4,100M Carolina Power & Light Co., 5.53%, 7/24/97 $ 4,085,514 $ 222
2,000M Dow Chemical Co., 5.50%, 7/11/97 1,996,945 109
3,500M NYNEX Credit Corp., 5.52%, 7/25/97 3,487,120 190
6,000M Potomac Electric & Power Co., 5.45%, 7/25/97 5,977,880 325
5,200M Prudential Funding Corp., 5.54%, 7/29/97 5,177,592 281
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$20,725,051) 20,725,051 1,127
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $151,586,298) 99.6% 183,221,936 9,962
OTHER ASSETS, LESS LIABILITIES .4 691,134 38
- ---------------------------------------------------------------------------------------
NET ASSETS 100.0% $183,913,070 $10,000
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
29
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS TOTAL RETURN FUND
June 30, 1997
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--65.8%
BASIC MATERIALS--1.6%
10,200 Du Pont (E.I.) de Nemours & Company $ 641,325 $ 101
17,200 Louisiana-Pacific Corporation 363,350 57
- -------------------------------------------------------------------------------------
1,004,675 158
- -------------------------------------------------------------------------------------
CAPITAL GOODS--9.8%
11,800 AGCO Corporation 424,062 67
4,400 Boeing Company 233,475 37
23,100 *Checkpoint Systems, Inc. 371,044 59
9,200 Corning, Inc. 511,750 81
23,500 *Corporate Express, Inc. 339,281 54
10,100 Foster Wheeler Corporation 409,050 65
14,600 General Electric Company 954,475 151
30,400 *Miller Industries, Inc. 486,400 77
8,000 Millipore Corporation 352,000 56
396 *Motivepower Industries, Inc. 6,336 1
8,100 Thomas & Betts Corporation 425,756 67
3,800 Tyco International Ltd. 264,337 42
3,200 United Technologies Corporation 265,600 42
7,800 *US Filter Corporation 212,550 34
15,900 *USA Waste Services, Inc. 614,137 97
7,000 York International Corporation 322,000 51
- -------------------------------------------------------------------------------------
6,192,253 981
- -------------------------------------------------------------------------------------
COMMUNICATION SERVICES--2.4%
4,000 A T & T Corporation 140,250 22
5,100 Bell Atlantic Corporation 386,962 61
7,300 BellSouth Corporation 338,537 54
7,000 GTE Corporation 307,125 49
6,000 SBC Communications, Inc. 371,250 59
- -------------------------------------------------------------------------------------
1,544,124 245
- -------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER CYCLICALS--8.7%
3,700 Adidas AG (ADR) (Note 5) $ 204,903 $ 32
16,500 *Bed Bath & Beyond, Inc. 501,187 79
25,900 *Checkfree Corporation 456,487 72
11,700 *Coldwater Creek, Inc. 304,200 48
8,600 *Federated Department Stores, Inc. 298,850 47
7,050 Hasbro, Inc. 200,044 32
4,300 Home Depot, Inc. 296,431 47
67,100 *Homegate Hospitality, Inc. 654,225 103
29,400 Innkeepers USA Trust 441,000 70
9,300 *Lear Corporation 412,687 65
7,300 Masco Corporation 304,775 48
19,700 Ogden Corporation 428,475 68
25,300 *Prime Hospitality Corporation 499,675 79
5,400 Tribune Company 259,537 41
6,800 Wal-Mart Stores, Inc. 229,925 36
- -------------------------------------------------------------------------------------
5,492,401 867
- -------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--.5%
9,875 *Consolidated Stores Corporation 343,156 54
- -------------------------------------------------------------------------------------
CONSUMER STAPLES--9.2%
5,200 Anheuser-Busch Companies, Inc. 218,075 35
8,600 Coca-Cola Company 580,500 92
4,000 ConAgra, Inc. 256,500 41
2,800 CPC International, Inc. 258,475 41
5,700 Gillette Company 540,075 85
4,200 Kimberly-Clark Corporation 208,950 33
10,100 McCormick & Company, Inc. 255,025 40
14,700 PepsiCo, Inc. 552,169 87
3,400 Procter & Gamble Company 480,250 76
12,600 Richfood Holdings, Inc. 327,600 52
5,300 *Steiner Leisure Ltd. 147,737 23
11,650 *Tele-Communications, Inc. Liberty Media Group -
Series "A" 276,687 44
5,400 Time Warner, Inc. 260,550 41
1,500 Unilever N.V. 327,000 52
- -------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS TOTAL RETURN FUND
June 30, 1997
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
13,700 *US West Media Group $ 277,425 $ 44
4,900 Walt Disney Company 393,225 62
17,900 Whitman Corporation 429,600 68
- -------------------------------------------------------------------------------------
5,789,843 916
- -------------------------------------------------------------------------------------
ENERGY--4.0%
2,500 Amoco Corporation 217,344 34
4,100 Chevron Corporation 303,144 48
8,000 Exxon Corporation 492,000 78
5,400 Mobil Corporation 377,325 60
11,600 Royal Dutch Petroleum Company 630,750 100
2,150 Schlumberger Ltd. 268,750 43
6,050 Williams Companies, Inc. 264,687 42
- -------------------------------------------------------------------------------------
2,554,000 405
- -------------------------------------------------------------------------------------
FINANCIAL--11.4%
18,400 Aames Financial Corporation 340,400 54
12,500 Ambassador Apartments, Inc. 310,937 49
3,400 American Express Company 253,300 40
11,800 American Financial Group, Inc. 500,763 79
3,200 American International Group, Inc. 478,000 76
5,000 BankAmerica Corporation 322,813 51
3,000 BankBoston Corporation 216,188 34
4,900 Chase Manhattan Corporation 475,606 75
4,800 Citicorp 578,700 92
6,600 Conseco, Inc. 244,200 39
16,300 Fannie Mae 711,088 112
3,700 First Union Corporation 342,250 54
5,700 Freddie Mac 195,938 31
15,500 *Imperial Credit Industries, Inc. 318,719 50
5,700 Norwest Corporation 320,625 51
8,000 Redwood Trust, Inc. 374,000 59
- -------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
25,500 The Money Store, Inc. $ 731,531 $ 116
20,800 USF&G Corporation 499,200 79
- -------------------------------------------------------------------------------------
7,214,258 1,141
- -------------------------------------------------------------------------------------
HEALTHCARE--6.8%
4,600 Abbott Laboratories 307,050 49
3,800 American Home Products Corporation 290,700 46
3,600 Amgen, Inc. 209,250 33
6,100 Bristol-Myers Squibb Company 494,100 78
7,100 DENTSPLY International, Inc. 347,900 55
7,200 Eli Lilly & Company 787,050 124
9,800 *Genesis Health Ventures, Inc. 330,750 52
5,600 Johnson & Johnson 360,500 57
4,600 Merck & Company, Inc. 476,100 75
7,400 *Vencor, Inc. 312,650 49
2,900 Warner-Lambert Company 360,325 57
- -------------------------------------------------------------------------------------
4,276,375 675
- -------------------------------------------------------------------------------------
TECHNOLOGY--10.1%
12,000 *Adaptec, Inc. 417,000 66
13,500 AVX Corporation 364,500 58
2,000 *Cadence Design Systems, Inc. 67,000 11
3,900 *Cisco Systems, Inc. 261,788 41
14,500 *Credence Systems Corporation 434,094 69
9,900 *EMC Corporation 386,100 61
10,800 Ericsson (L.M.) Telephone Co. - Class "B" (ADR) 425,250 67
5,000 First Data Corporation 219,688 35
4,600 Hewlett-Packard Company 257,600 41
3,400 Intel Corporation 482,163 76
10,100 *Kent Electronics Corporation 370,544 59
6,200 *Micron Technology, Inc. 247,613 39
5,500 *Microsoft Corporation 695,063 110
7,200 Motorola, Inc. 547,200 87
5,600 Nokia Corporation - Class "A" (ADR) 413,000 65
- -------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS TOTAL RETURN FUND
June 30, 1997
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY (continued)
8,900 *Sun Microsystems, Inc. $ 331,247 $ 52
28,100 *SystemSoft Corporation 302,075 48
1,900 Texas Instruments, Inc. 159,719 25
- -------------------------------------------------------------------------------------
6,381,644 1,010
- -------------------------------------------------------------------------------------
UTILITIES--1.3%
4,700 FPL Group, Inc. 216,494 34
18,700 Sierra Pacific Resources 598,400 95
- -------------------------------------------------------------------------------------
814,894 129
- -------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $31,106,537) 41,607,623 6,581
- -------------------------------------------------------------------------------------
CORPORATE BONDS--11.4%
AUTOMOTIVE--.8%
$ 500M Titan Wheel International, Inc., 8.75%, 2007 515,000 81
- -------------------------------------------------------------------------------------
CHEMICALS--1.2%
650M Rexene Corp., 11.75%, 2004 737,750 117
- -------------------------------------------------------------------------------------
CONTAINERS/PACKAGING--.8%
500M PrintPack, Inc., 9.875%, 2004 522,500 83
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.0%
600M Essex Group, Inc., 10%, 2003 630,000 100
- -------------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--1.6%
1,000M AMC Entertainment, Inc., 9.50%, 2009 1,022,500 162
- -------------------------------------------------------------------------------------
FINANCIAL SERVICES--.8%
500M NationsBank Corp., 8.125%, 2002 527,195 83
- -------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--1.0%
600M Universal Corp., 9.25%, 2001 643,994 102
- -------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
AMOUNT
PRINCIPAL INVESTED
AMOUNT FOR EACH
OR $10,000 OF
WARRANTS SECURITY VALUE NET ASSETS
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE--1.8%
$ 600M Healthsouth Rehabilitation Corp., 9.50%, 2001 $ 633,000 $ 100
425M Tenet Healthcare Corp., 10.125%, 2005 463,250 73
- -------------------------------------------------------------------------------------
1,096,250 173
- -------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--1.0%
600M Rogers Communication, Inc., 10.875%, 2004 631,500 100
- -------------------------------------------------------------------------------------
MISCELLANEOUS--.4%
250M Iron Mountain, Inc., 10.125%, 2006 265,625 42
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.0%
750M MFS Communications Co., Inc., 0%-8.875%, 2006 595,313 94
- -------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $6,842,416) 7,187,627 1,137
- -------------------------------------------------------------------------------------
WARRANTS--.0%
CAPITAL GOODS
62 *Morrison Knudsen Corporation (expiring 3/11/03)
(cost $0) 387 --
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--12.7%
$ 7,000M United States Treasury Note, 6.50%, 2002 7,028,434 1,112
1,000M United States Treasury Note, 6.625%, 2002 1,009,375 159
- -------------------------------------------------------------------------------------
TOTAL VALUE OF U.S. GOVERNMENT OBLIGATIONS (cost
$8,005,352) 8,037,809 1,271
- -------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--9.5%
1,800M Dresser Industries, Inc., 5.53%, 7/18/97 1,795,300 284
1,200M HJ Heinz Co., 5.55%, 7/24/97 1,195,745 189
1,200M NYNEX, 5.55%, 7/2/97 1,199,815 190
1,800M Southern California Edison Co., 5.52%, 7/25/97 1,793,376 284
- -------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$5,984,236) 5,984,236 947
- -------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $51,938,541) 99.4% 62,817,682 9,936
OTHER ASSETS, LESS LIABILITIES .6 403,899 64
- -------------------------------------------------------------------------------------
NET ASSETS 100.0% $63,221,581 $10,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
35
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS SERIES FUND
June 30, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
INSURED
INTERMEDIATE INVESTMENT SPECIAL TOTAL
BLUE CHIP TAX EXEMPT GRADE SITUATIONS RETURN
FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $229,674,341 $ 7,476,515 $ 45,039,978 $151,586,298 $ 51,938,541
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
At value (Note 1A)................... $320,579,821 $ 7,803,230 $ 45,458,404 $183,221,936 $ 62,817,682
Cash................................... 8,165,761 195,110 259,204 899,297 185,193
Receivables:
Interest and dividends............... 199,580 106,382 862,471 121,474 228,152
Trust shares sold.................... 1,265,713 703 189,301 518,906 198,811
Investment securities sold........... 927,574 -- -- 644,183 --
Other assets........................... 511 -- 64 32 394
------------ ------------ ------------ ------------ ------------
Total Assets........................... 331,138,960 8,105,425 46,769,444 185,405,828 63,430,232
------------ ------------ ------------ ------------ ------------
LIABILITIES
Payables:
Trust shares redeemed................ 422,154 11,300 85,793 386,901 139,275
Investment securities purchased...... 2,007,540 -- -- 933,451 --
Dividend payable..................... -- 31,858 231,490 -- --
Accrued advisory fee................... 200,685 3,293 25,213 111,653 38,949
Accrued expenses....................... 84,363 4,370 17,014 60,753 30,427
------------ ------------ ------------ ------------ ------------
Total Liabilities...................... 2,714,742 50,821 359,510 1,492,758 208,651
------------ ------------ ------------ ------------ ------------
NET ASSETS............................. $328,424,218 $ 8,054,604 $ 46,409,934 $183,913,070 $ 63,221,581
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
NET ASSETS CONSIST OF:
Capital paid in........................ $220,674,673 $ 7,949,554 $ 45,990,338 $142,921,679 $ 49,314,495
Undistributed net investment income
(deficit)............................ 415,799 4,534 16,279 (430,275) 391,800
Accumulated net realized gain (loss) on
investment transactions.............. 16,428,266 (226,199) (15,109) 9,786,028 2,636,145
Net unrealized appreciation in value of
investments.......................... 90,905,480 326,715 418,426 31,635,638 10,879,141
------------ ------------ ------------ ------------ ------------
Total.................................. $328,424,218 $ 8,054,604 $ 46,409,934 $183,913,070 $ 63,221,581
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
NET ASSETS:
Class A.............................. $301,830,672 $ 7,320,464 $ 43,841,610 $171,698,551 $ 61,643,331
Class B.............................. $ 26,593,546 $ 734,140 $ 2,568,324 $ 12,214,519 $ 1,578,250
TRUST SHARES OUTSTANDING (Note 4):
Class A.............................. 13,336,529 1,263,842 4,436,748 7,677,357 4,320,196
Class B.............................. 1,184,038 126,618 259,698 555,733 111,554
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE - CLASS A.................. $ 22.63 $ 5.79 $ 9.88 $ 22.36 $ 14.27
------ ----- ----- ------ ------
------ ----- ----- ------ ------
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A
(Net asset value/.9375)*............. $ 24.14 $ 6.18 $ 10.54 $ 23.85 $ 15.22
------ ----- ------ ------ ------
------ ----- ------ ------ ------
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - CLASS B (Note 4)............. $ 22.46 $ 5.80 $ 9.89 $ 21.98 $ 14.15
------ ----- ----- ------ ------
------ ----- ----- ------ ------
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
36
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS SERIES FUND
Six Months Ended June 30, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
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............................. $ 724,652 $ 221,580 $1,721,360 $ 426,320 $ 683,862
Dividends............................ 2,037,082 -- -- 490,560 305,427
----------- ------------ ---------- ---------- ----------
Total income........................... 2,761,734 221,580 1,721,360 916,880 989,289
----------- ------------ ---------- ---------- ----------
Expenses (Notes 1 and 3):
Advisory fee......................... 1,446,110 24,132 176,250 845,942 296,802
Shareholder servicing costs.......... 441,385 4,724 72,383 368,725 103,621
Distribution plan expenses - Class
A.................................. 401,745 11,078 66,825 237,730 87,099
Distribution plan expenses - Class
B.................................. 106,960 3,289 12,248 53,509 6,476
Reports and notices to
shareholders....................... 31,620 182 2,491 20,806 5,359
Professional fees.................... 20,920 1,670 5,146 14,024 9,565
Custodian fees....................... 15,810 1,046 7,341 12,489 20,870
Other expenses....................... 38,742 1,740 6,334 17,905 2,268
----------- ------------ ---------- ---------- ----------
Total expenses......................... 2,503,292 47,861 349,018 1,571,130 532,060
Less: Expenses waived or assumed....... (361,528) (23,409) (80,531) (211,486) (74,201)
Custodian fees paid indirectly.... (15,810) (1,046) (1,383) (12,489) (1,290)
----------- ------------ ---------- ---------- ----------
Net expenses........................... 2,125,954 23,406 267,104 1,347,155 456,569
----------- ------------ ---------- ---------- ----------
Net investment income (loss)........... 635,780 198,174 1,454,256 (430,275) 532,720
----------- ------------ ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 2):
Net realized gain (loss) on
investments.......................... 16,428,266 (1,179) (15,109) 9,897,519 2,662,463
Net unrealized appreciation
(depreciation) of investments........ 27,335,025 1,522 (233,976) 3,956,812 3,591,416
----------- ------------ ---------- ---------- ----------
Net gain (loss) on investments......... 43,763,291 343 (249,085) 13,854,331 6,253,879
----------- ------------ ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............ $44,399,071 $ 198,517 $1,205,171 $13,424,056 $6,786,599
----------- ------------ ---------- ---------- ----------
----------- ------------ ---------- ---------- ----------
</TABLE>
See notes to financial statements
37
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS SERIES FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
INSURED
BLUE CHIP INTERMEDIATE
FUND TAX EXEMPT FUND
-------------------------- ----------------------
1/1/97 TO 1/1/96 TO 1/1/97 TO 1/1/96 TO
6/30/97 12/31/96 6/30/97 12/31/96
- ---------------------------------------- ------------ ------------ ---------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss).......... $ 635,780 $ 1,571,720 $ 198,174 $ 369,402
Net realized gain (loss) on
investments......................... 16,428,266 13,853,283 (1,179) (13,642)
Net unrealized appreciation
(depreciation) of investments....... 27,335,025 25,028,855 1,522 (65,142)
------------ ------------ ---------- ----------
Net increase in net assets resulting
from operations................... 44,399,071 40,453,858 198,517 290,618
------------ ------------ ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A....... (255,555) (1,797,674) (183,443) (348,573)
Net investment income - Class B....... -- (32,262) (12,945) (20,249)
Net realized gains - Class A.......... -- (12,932,431) -- --
Net realized gains - Class B.......... -- (920,852) -- --
------------ ------------ ---------- ----------
Total distributions................. (255,555) (15,683,219) (196,388) (368,822)
------------ ------------ ---------- ----------
TRUST SHARE TRANSACTIONS(a)
Class A:
Proceeds from shares sold............. 41,398,971 59,240,476 830,762 1,414,425
Value of distributions reinvested..... 252,367 14,593,546 106,831 259,914
Cost of shares redeemed............... (20,535,435) (27,930,727) (1,033,378) (1,203,575)
------------ ------------ ---------- ----------
21,115,903 45,903,295 (95,785) 470,764
------------ ------------ ---------- ----------
Class B:
Proceeds from shares sold............. 7,629,301 10,411,903 122,975 341,636
Value of distributions reinvested..... -- 949,486 6,169 8,017
Cost of shares redeemed............... (1,327,727) (924,914) (9,231) (108,807)
------------ ------------ ---------- ----------
6,301,574 10,436,475 119,913 240,846
------------ ------------ ---------- ----------
Net increase (decrease) from trust
share transactions.................. 27,417,477 56,339,770 24,128 711,610
------------ ------------ ---------- ----------
Net increase (decrease) in net
assets............................ 71,560,993 81,110,409 26,257 633,406
NET ASSETS
Beginning of period................... 256,863,225 175,752,816 8,028,347 7,394,941
------------ ------------ ---------- ----------
End of period+........................ $328,424,218 $256,863,225 $8,054,604 $8,028,347
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
+Includes undistributed net investment
income (deficit) of.................... $ 415,799 $ 35,574 $ 4,534 $ 2,748
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
(a)TRUST SHARES ISSUED AND REDEEMED
Class A:
Sold.................................. 1,993,108 3,180,586 144,360 245,693
Issued for distributions reinvested... 12,675 752,243 18,554 45,078
Redeemed.............................. (990,122) (1,501,552) (179,638) (209,235)
------------ ------------ ---------- ----------
Net increase (decrease) in Class A
shares outstanding.................. 1,015,661 2,431,277 (16,724) 81,536
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
Class B:
Sold.................................. 370,033 559,282 21,363 58,860
Issued for distributions reinvested... -- 49,071 1,071 1,391
Redeemed.............................. (64,375) (49,439) (1,602) (19,041)
------------ ------------ ---------- ----------
Net increase in Class B shares
outstanding......................... 305,658 558,914 20,832 41,210
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
</TABLE>
See notes to financial statements
38
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE SPECIAL SITUATIONS TOTAL RETURN
FUND FUND FUND
------------------------ -------------------------- ------------------------
1/1/97 TO 1/1/96 TO 1/1/97 TO 1/1/96 TO 1/1/97 TO 1/1/96 TO
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
- ---------------------------------------- ----------- ----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss).......... $ 1,454,256 $ 3,033,842 $ (430,275) $ (248,261) $ 532,720 $ 1,630,129
Net realized gain (loss) on
investments......................... (15,109) 108,990 9,897,519 9,162,648 2,662,463 4,564,414
Net unrealized appreciation
(depreciation) of investments....... (233,976) (2,054,202) 3,956,812 7,926,160 3,591,416 (470,679)
----------- ----------- ------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations................... 1,205,171 1,088,630 13,424,056 16,840,547 6,786,599 5,723,864
----------- ----------- ------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A....... (1,379,610) (2,965,537) -- -- (238,695) (1,672,752)
Net investment income - Class B....... (67,661) (95,970) -- -- (3,748) (20,249)
Net realized gains - Class A.......... -- (79,969) -- (8,473,398) -- (4,504,684)
Net realized gains - Class B.......... -- (4,021) -- (552,560) -- (82,687)
----------- ----------- ------------ ------------ ----------- -----------
Total distributions................. (1,447,271) (3,145,497) -- (9,025,958) (242,443) (6,280,372)
----------- ----------- ------------ ------------ ----------- -----------
TRUST SHARE TRANSACTIONS(a)
Class A:
Proceeds from shares sold............. 2,856,695 8,590,879 17,914,989 41,811,559 3,794,610 5,275,595
Value of distributions reinvested..... 890,433 2,386,687 -- 8,052,244 236,085 6,135,139
Cost of shares redeemed............... (6,068,345) (12,567,534) (17,087,526) (24,410,399) (5,317,444) (9,794,345)
----------- ----------- ------------ ------------ ----------- -----------
(2,321,217) (1,589,968) 827,463 25,453,404 (1,286,749) 1,616,389
----------- ----------- ------------ ------------ ----------- -----------
Class B:
Proceeds from shares sold............. 349,214 1,459,481 2,249,940 5,717,918 504,506 746,950
Value of distributions reinvested..... 38,732 78,964 -- 551,266 3,748 102,924
Cost of shares redeemed............... (143,872) (325,873) (1,156,566) (865,479) (105,760) (59,781)
----------- ----------- ------------ ------------ ----------- -----------
244,074 1,212,572 1,093,374 5,403,705 402,494 790,093
----------- ----------- ------------ ------------ ----------- -----------
Net increase (decrease) from trust
share transactions.................. (2,077,143) (377,396) 1,920,837 30,857,109 (884,255) 2,406,482
----------- ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net
assets............................ (2,319,243) (2,434,263) 15,344,893 38,671,698 5,659,901 1,849,974
NET ASSETS
Beginning of period................... 48,729,177 51,163,440 168,568,177 129,896,479 57,561,680 55,711,706
----------- ----------- ------------ ------------ ----------- -----------
End of period+........................ $46,409,934 $48,729,177 $183,913,070 $168,568,177 $63,221,581 $57,561,680
----------- ----------- ------------ ------------ ----------- -----------
----------- ----------- ------------ ------------ ----------- -----------
+Includes undistributed net investment
income (deficit) of................... $ 16,279 $ 9,294 $ (430,275) $ -- $ 391,800 $ 101,523
----------- ----------- ------------ ------------ ----------- -----------
----------- ----------- ------------ ------------ ----------- -----------
(a)TRUST SHARES ISSUED AND REDEEMED
Class A:
Sold.................................. 290,796 863,456 872,635 2,056,926 284,791 403,915
Issued for distributions reinvested... 90,767 240,179 -- 388,434 18,488 476,189
Redeemed.............................. (617,691) (1,264,529) (831,761) (1,193,114) (399,172) (737,036)
----------- ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in Class A
shares outstanding.................. (236,128) (160,894) 40,874 1,252,246 (95,893) 143,068
----------- ----------- ------------ ------------ ----------- -----------
----------- ----------- ------------ ------------ ----------- -----------
Class B:
Sold.................................. 35,575 147,002 111,445 282,350 38,265 56,645
Issued for distributions reinvested... 3,946 7,948 -- 26,957 296 8,057
Redeemed.............................. (14,610) (32,903) (56,618) (42,387) (8,111) (4,468)
----------- ----------- ------------ ------------ ----------- -----------
Net increase in Class B shares
outstanding......................... 24,911 122,047 54,827 266,920 30,450 60,234
----------- ----------- ------------ ------------ ----------- -----------
----------- ----------- ------------ ------------ ----------- -----------
</TABLE>
See notes to financial statements
39
<PAGE>
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 (each a "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 and is not an item of tax
preference for purposes of the federal alternative minimum 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 Stock Market is valued at its last sale price on the
exchange 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 which 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
40
<PAGE>
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, 1997, the Insured
Intermediate Tax Exempt Fund had capital loss carryovers of $225,020, of which
$160,056 expires in 2002 and $51,323 expires in 2003 and $13,641 expires in
2004.
C. Distributions to Shareholders--Dividends from net investment income to
shareholders of the Insured Intermediate Tax Exempt Fund and the Investment
Grade Fund are generally declared daily and paid monthly. Dividends from net
investment income of the Blue Chip Fund and Total Return Fund are generally
declared and paid quarterly. Dividends from net investment income of the Special
Situations Fund, if any, are generally declared and paid annually. Distributions
from net realized capital gains, if any, are 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 the 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. Use of Estimates--The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
F. 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, has provided credits in the amount of $32,018 against custodian
charges based on the uninvested cash balances of these Funds.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS SERIES FUND
2. SECURITY TRANSACTIONS--For the six months ended June 30, 1997, purchases and
sales of securities and long-term U.S. Government obligations, excluding U.S.
Treasury bills and short-term corporate notes, were as follows:
<TABLE>
<CAPTION>
Long-Term U.S.
Securities Government Obligations
------------------------- -----------------------
Cost of Proceeds Cost of Proceeds
Purchases of Sales Purchases of Sales
------------ ----------- ----------- ----------
<S> <C> <C> <C> <C>
Blue Chip Fund......................... $124,964,889 $94,725,732 $ -- $ --
Insured Intermediate Tax Exempt Fund... 2,483,032 2,629,051 -- --
Investment Grade Fund.................. 6,709,509 6,609,528 2,006,155 3,728,125
Special Situations Fund................ 65,515,365 75,485,714 -- --
Total Return Fund...................... 27,976,681 37,475,490 13,174,545 6,247,500
</TABLE>
At June 30, 1997, aggregate cost and net unrealized appreciation of securities
for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
Cost Appreciation Depreciation Appreciation
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Blue Chip Fund......................... $229,674,341 $ 92,900,224 $ 1,994,744 $ 90,905,480
Insured Intermediate Tax Exempt Fund... 7,476,515 347,603 20,888 326,715
Investment Grade Fund.................. 45,039,978 810,321 391,895 418,426
Special Situations Fund................ 151,586,298 39,639,264 8,003,626 31,635,638
Total Return Fund...................... 51,938,541 11,678,920 799,779 10,879,141
</TABLE>
3. 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
42
<PAGE>
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, 1997 were $2,789,236 of which $678,758 was waived. In addition,
expenses of $61,319 were assumed by FIMCO.
For the six months ended June 30, 1997, FIC, as underwriter, received $2,740,907
in commissions from the sale of Fund shares, after allowing $25,540 to other
dealers. Shareholder servicing costs included $688,575 in transfer agent fees
accrued to ADM and $214,463 in IRA custodian fees accrued to FFS.
Pursuant to Distribution Plans 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 distribution plan fees accrued
to FIC amounted to $986,959 (of which $11,078 was waived).
4. 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
distribution plan fees as described in Note 3. 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
distribution plan fees) 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.
5. RULE 144A SECURITIES--Under Rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and may
only be sold to qualified institutional investors. At June 30, 1997, the Blue
Chip, Special Situations and Total Return Funds each held one 144A security,
with values of $1,423,243, $1,783,207 and $204,903, respectively. These
securities represent .4%, 1.0% and .3% of the respective Fund's net assets and
are valued as set forth in Note 1A.
43
<PAGE>
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
--------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------
NET
REALIZED
AND LESS DISTRIBUTIONS
NET ASSET UNREALIZED FROM
VALUE GAIN -----------------------
--------- NET (LOSS) TOTAL FROM NET NET
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
CLASS A
1992.................................... $ 14.59 $ .13 $ .82 $ .95 $ .13 $ .12 $ .25
1993.................................... 15.29 .10 1.08 1.18 .10 .79 .89
1994.................................... 15.58 .11 (.58) (.47) .09 1.56 1.65
1995.................................... 13.46 .19 4.37 4.56 .20 .60 .80
1996.................................... 17.22 .14 3.39 3.53 .17 1.11 1.28
1/1/97 to 6/30/97....................... 19.47 .05 3.13 3.18 .02 -- .02
CLASS B
1/12/95* to 12/31/95.................... 13.51 .10 4.31 4.41 .16 .60 .76
1996.................................... 17.16 .06 3.32 3.38 .06 1.11 1.17
1/1/97 to 6/30/97....................... 19.37 (.01) 3.10 3.09 -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
CLASS A
11/22/93* to 12/31/93................... $ 5.79 $ -- $ -- $ -- $ -- $ -- $ --
1994.................................... 5.79 .24 (.36) (.12) .24 -- .24
1995.................................... 5.43 .30 .42 .72 .30 -- .30
1996.................................... 5.85 .29 (.06) .23 .29 -- .29
1/1/97 to 6/30/97....................... 5.79 .15 (.01) .14 .14 -- .14
CLASS B
1/12/95* to 12/31/95.................... 5.45 .25 .41 .66 .26 -- .26
1996.................................... 5.85 .23 (.05) .18 .23 -- .23
1/1/97 to 6/30/97....................... 5.80 .12 (.01) .11 .11 -- .11
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
CLASS A
1992.................................... $ 9.93 $ .71 $ .04 $ .75 $ .72 $ .06 $ .78
1993.................................... 9.90 .65 .50 1.15 .65 .07 .72
1994.................................... 10.33 .62 (1.09) (.47) .62 -- .62
1995.................................... 9.24 .64 1.10 1.74 .64 -- .64
1996.................................... 10.34 .62 (.39) .23 .62 .02 .64
1/1/97 to 6/30/97....................... 9.93 .31 (.05) .26 .31 -- .31
CLASS B
1/12/95* to 12/31/95.................... 9.26 .54 1.10 1.64 .55 -- .55
1996.................................... 10.35 .55 (.39) .16 .55 .02 .57
1/1/97 to 6/30/97....................... 9.94 .27 (.05) .22 .27 -- .27
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
---------------------------------------------------------------------------
---------
RATIO TO AVERAGE NET RATIO TO AVERAGE NET
ASSETS BEFORE EXPENSES
ASSETS++ WAIVED OR ASSUMED
NET ASSET ----------------------- -----------------------
VALUE TOTAL NET NET
--------- RETURN NET ASSETS INVESTMENT INVESTMENT
END ** END OF PERIOD EXPENSES INCOME EXPENSES INCOME
OF PERIOD (%) (IN THOUSANDS) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
CLASS A
1992.................................... $ 15.29 6.56 $ 99,501 1.46 .95 1.73 .67
1993.................................... 15.58 7.77 117,929 1.48 .66 1.73 .41
1994.................................... 13.46 (3.02) 123,694 1.54 .80 1.79 .55
1995.................................... 17.22 34.01 170,271 1.49 1.23 1.74 .98
1996.................................... 19.47 20.55 239,851 1.44 .78 1.67 .55
1/1/97 to 6/30/97....................... 22.63 16.35 301,831 1.43+ .49+ 1.68+ .24+
CLASS B
1/12/95* to 12/31/95.................... 17.16 32.76 5,481 2.20+ .52+ 2.46+ .26+
1996.................................... 19.37 19.71 17,012 2.22 -- 2.37 (.16)
1/1/97 to 6/30/97....................... 22.46 15.95 26,594 2.13+ (.21)+ 2.38+ (.46)+
- --------------------------------------------------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
CLASS A
11/22/93* to 12/31/93................... $ 5.79 .00 $ 1,615 -- .54+ 1.78+ (1.24)+
1994.................................... 5.43 (2.05) 5,688 .14 4.52 .96 3.70
1995.................................... 5.85 13.50 7,017 .35 5.32 1.22 4.45
1996.................................... 5.79 4.07 7,415 .49 5.05 1.24 4.30
1/1/97 to 6/30/97....................... 5.79 2.52 7,320 .50+ 5.04+ 1.13+ 4.41+
CLASS B
1/12/95* to 12/31/95.................... 5.85 12.27 378 1.35+ 4.32+ 2.22+ 3.45+
1996.................................... 5.80 3.17 613 1.49 4.05 1.94 3.60
1/1/97 to 6/30/97....................... 5.80 1.99 734 1.50+ 4.04+ 1.83+ 3.71+
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
CLASS A
1992.................................... $ 9.90 7.83 $ 37,922 .57 7.20 1.41 6.36
1993.................................... 10.33 11.82 48,507 .86 6.27 1.40 5.73
1994.................................... 9.24 (4.62) 46,179 .95 6.46 1.47 5.94
1995.................................... 10.34 19.40 49,997 1.10 6.43 1.43 6.10
1996.................................... 9.93 2.39 46,396 1.11 5.96 1.42 5.65
1/1/97 to 6/30/97....................... 9.88 2.64 43,842 1.10+ 6.23+ 1.45+ 5.88+
CLASS B
1/12/95* to 12/31/95.................... 10.35 18.08 1,167 1.80+ 5.73+ 2.13+ 5.40+
1996.................................... 9.94 1.64 2,333 1.81 5.26 2.12 4.95
1/1/97 to 6/30/97....................... 9.89 2.29 2,568 1.80+ 5.53+ 2.15+ 5.18+
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PORTFOLIO AVERAGE
TURNOVER COMMISSION
RATE RATE
(%) +++
- --------------------------------------------------------------------------
<S> <C> <C>
BLUE CHIP FUND
CLASS A
1992.................................... 44 $ --
1993.................................... 39 --
1994.................................... 82 --
1995.................................... 25 --
1996.................................... 45 .0689
1/1/97 to 6/30/97....................... 37 .0666
CLASS B
1/12/95* to 12/31/95.................... 25 --
1996.................................... 45 .0689
1/1/97 to 6/30/97....................... 37 .0666
- --------------------------------------------------------------------------------------
INSURED INTERMEDIATE TAX EXEMPT FUND
CLASS A
11/22/93* to 12/31/93................... 0 $ --
1994.................................... 210 --
1995.................................... 47 --
1996.................................... 82 --
1/1/97 to 6/30/97....................... 32 --
CLASS B
1/12/95* to 12/31/95.................... 47 --
1996.................................... 82 --
1/1/97 to 6/30/97....................... 32 --
- --------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
CLASS A
1992.................................... 44 $ --
1993.................................... 38 --
1994.................................... 17 --
1995.................................... 27 --
1996.................................... 22 --
1/1/97 to 6/30/97....................... 19 --
CLASS B
1/12/95* to 12/31/95.................... 27 --
1996.................................... 22 --
1/1/97 to 6/30/97....................... 19 --
- --------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
FIRST INVESTORS SERIES FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
------------------------------------
NET
REALIZED LESS DISTRIBUTIONS
NET ASSET AND FROM
VALUE UNREALIZED TOTAL ------------------------
--------- NET GAIN FROM NET NET
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SPECIAL SITUATIONS FUND
CLASS A
1992.................................... $ 13.99 $ -- $ 2.41 $ 2.41 $ -- $ .78 $ .78
1993.................................... 15.62 (.08) 3.29 3.21 -- .83 .83
1994.................................... 18.00 (.04) (.62) (.66) -- .91 .91
1995.................................... 16.43 (.01) 3.94 3.93 -- .73 .73
1996.................................... 19.63 (.01) 2.28 2.27 -- 1.17 1.17
1/1/97 to 6/30/97....................... 20.73 (.05) 1.68 1.63 -- -- --
CLASS B
1/12/95* to 12/31/95.................... 16.40 (.01) 3.85 3.84 -- .73 .73
1996.................................... 19.51 (.14) 2.25 2.11 -- 1.17 1.17
1/1/97 to 6/30/97....................... 20.45 (.10) 1.63 1.53 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN FUND
CLASS A
1992.................................... $ 12.93 $ .27 $ (.41) $ (.14) $ .30 $ -- $ .30
1993.................................... 12.49 .26 .63 .89 .26 1.24 1.50
1994.................................... 11.88 .21 (.62) (.41) .19 .39 .58
1995.................................... 10.89 .39 2.50 2.89 .37 .44 .81
1996.................................... 12.97 .39 .97 1.36 .41 1.12 1.53
1/1/97 to 6/30/97....................... 12.80 .12 1.41 1.53 .06 -- .06
CLASS B
1/12/95* to 12/31/95.................... 10.90 .25 2.54 2.79 .33 .44 .77
1996.................................... 12.92 .32 .94 1.26 .34 1.12 1.46
1/1/97 to 6/30/97....................... 12.72 .10 1.37 1.47 .04 -- .04
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* 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 3)
+++ Average commission rate (per share of security) as required by amended
disclosure requirements effective in 1996
See notes to financial statements
46
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
--------------------------------------------------------------------------------
------
RATIO TO AVERAGE NET RATIO TO AVERAGE NET
NET ASSETS BEFORE EXPENSES
ASSET NET ASSETS++ WAIVED OR ASSUMED
VALUE ASSETS ------------------------- ------------------------
------ TOTAL END OF NET NET
END RETURN PERIOD INVESTMENT INVESTMENT
OF ** (IN EXPENSES INCOME EXPENSES INCOME
PERIOD (%) THOUSANDS) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SPECIAL SITUATIONS FUND
CLASS A
1992.................................... $15.62 17.26 $ 25,814 1.06 (.05) 1.92 (.91)
1993.................................... 18.00 20.52 59,148 1.55 (.63) 1.89 (.96)
1994.................................... 16.43 (3.66) 89,906 1.65 (.26) 1.90 (.51)
1995.................................... 19.63 23.92 125,331 1.60 (.08) 1.85 (.33)
1996.................................... 20.73 11.56 158,326 1.59 (.13) 1.84 (.38)
1/1/97 to 6/30/97....................... 22.36 7.86 171,699 1.56+ (.46)+ 1.81+ (.71)+
CLASS B
1/12/95* to 12/31/95.................... 19.51 23.42 4,566 2.33+ (.81)+ 2.59+ (1.07)+
1996.................................... 20.45 10.81 10,242 2.38 (.92) 2.55 (1.09)
1/1/97 to 6/30/97....................... 21.98 7.48 12,215 2.26+ (1.16)+ 2.51+ (1.41)+
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN FUND
CLASS A
1992.................................... $12.49 (1.00) $ 65,537 1.29 2.25 1.78 1.76
1993.................................... 11.88 7.18 58,176 1.45 2.00 1.83 1.62
1994.................................... 10.89 (3.45) 50,714 1.63 1.91 1.88 1.66
1995.................................... 12.97 26.71 55,442 1.58 3.08 1.83 2.83
1996.................................... 12.80 10.62 56,530 1.53 2.93 1.78 2.68
1/1/97 to 6/30/97....................... 14.27 11.96 61,643 1.53+ 1.81+ 1.78+ 1.56+
CLASS B
1/12/95* to 12/31/95.................... 12.92 25.74 270 2.41+ 2.24+ 2.67+ 1.98+
1996.................................... 12.72 9.86 1,032 2.32 2.14 2.49 1.97
1/1/97 to 6/30/97....................... 14.15 11.57 1,578 2.23+ 1.11+ 2.48+ .86+
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PORTFOLIO AVERAGE
TURNOVER COMMISSION
RATE RATE
(%) +++
- --------------------------------------------------------------------------
<S> <C> <C>
SPECIAL SITUATIONS FUND
CLASS A
1992.................................... 88 $ --
1993.................................... 71 --
1994.................................... 53 --
1995.................................... 80 --
1996.................................... 99 .0689
1/1/97 to 6/30/97....................... 44 .0644
CLASS B
1/12/95* to 12/31/95.................... 80 --
1996.................................... 99 .0689
1/1/97 to 6/30/97....................... 44 .0644
- --------------------------------------------------------------------------------------
TOTAL RETURN FUND
CLASS A
1992.................................... 75 $ --
1993.................................... 131 --
1994.................................... 124 --
1995.................................... 135 --
1996.................................... 146 .0691
1/1/97 to 6/30/97....................... 78 .0690
CLASS B
1/12/95* to 12/31/95.................... 135 --
1996.................................... 146 .0691
1/1/97 to 6/30/97....................... 78 .0690
- --------------------------------------------------------------------------------------------------
</TABLE>
* 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 3)
+++ Average commission rate (per share of security) as required by amended
disclosure requirements effective in 1996
See notes to financial statements
47
<PAGE>
(This page has been left blank intentionally.)
49
<PAGE>
INDEPENDENT AUDITORS' 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, 1997, 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, 1997 and the year ended December 31, 1996, 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, 1997, 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 (comprising First Investors Series Fund) at June 30,
1997, and the results of their operations, changes in their net assets and
financial highlights for the respective periods presented, in conformity with
generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
July 31, 1997
48
<PAGE>
FIRST INVESTORS SERIES FUND
DIRECTORS
- -------------------------------------------
JAMES J. COY (Emeritus)
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
REX R. REED
HERBERT RUBINSTEIN
NANCY S. SCHAENEN
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
50
<PAGE>
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
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.
51
<PAGE>
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, 1997
Vertically reading from bottom to top in the center of the page the words "FIRST
INVESTORS" appear.
The following appears in a box to the left of the above language:
First Investors Logo (as described above)
NEED SERVICE?
If you have questions about your account...or would like information regarding
other products or services...please contact your representative or call our
Shareholder Services Department at...
(800) 423-4026
The following appears in a box within the above box:
OUR BUSINESS IS...putting investors first
The following appears on the bottom lefthand side:
FIBC103
