<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS GROWTH & INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
Dear Investor:
We are pleased to present to you the semi-annual report of the First Investors
Growth & Income Fund. For the six months ended April 30, 1995, the Fund
outperformed the Lipper Growth and Income Fund Average (consisting of 432
funds), on a net asset value basis. The general market's advance, as measured by
the S&P 500 Index, in the past six month time period, has been fairly narrow,
led by low yielding areas like technology and consumer non-durables, as well as
interest rate sensitive issues.
The U.S. equity market has staged a remarkable turnaround over the past six
months, buoyed by signs of moderating economic activity, falling bond yields and
continued strong earnings growth. Contributing to the Fund's investment results
were exposures to the health care, finance, materials and energy sectors.
Specifically, PFIZER INC., one of the world's largest pharmaceutical companies,
SONAT OFFSHORE DRILLING, a leader in the deep water drilling industry, and
ENGELHARD, the dominant catalyst producer, positively influenced the Fund's
performance. In contrast, positions in retail such as JC PENNEY CO., telephone
utilities such as AT&T CORP., and selected industrial holdings such as UNION
PACIFIC limited investment results.
The First Investors Growth & Income Fund remains broadly diversified, holding 75
different securities as of April 30, 1995, with 10% of the Fund invested in
convertible securities. In terms of the Fund's portfolio strategy, we continue
to emphasize the capital goods and industrial sectors, focusing on companies in
the chemical, paper, electrical equipment and machinery areas that also have
sizable operations outside the U.S. We believe that earnings expectations for
many U.S. industrial companies are still too low as margins have room to expand
further. The Fund's holdings are diversified to include specialty niche
companies such as LOCTITE CORP., as well as commodity producers such as
INTERNATIONAL PAPER. Concerning the defensive areas of the market, the Fund
remains underweighted in the consumer discretionary sector, and we are reluctant
to initiate new commitments as valuations are stretched and pricing power
remains highly uncertain. The Fund retains a slightly overweighted position in
healthcare, with a particular focus on companies noted for their product
innovation such as JOHNSON & JOHNSON and ABBOTT LABORATORIES. Finance and energy
are also modest overweights as relative valuations and yields remain quite
attractive. We continue to significantly overweight the Fund in the media
sector, emphasizing companies that we believe will benefit from the changing
competitive landscape. The Fund's holdings include newspaper publishers such as
GANNETT CO., technology vendors such as GENERAL INSTRUMENT (via a convertible
bond issue) and content providers such as VIACOM INC.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Laura J. Allen
Laura J. Allen
Portfolio Manager
May 31, 1995
1
<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS MADE IN THE U.S.A. FUND
(A Series of First Investors Series Fund II, Inc.)
Dear Investor:
We are pleased to present the semi-annual report of the First Investors Made In
The U.S.A. Fund. The U.S. equity market has staged a remarkable turnaround over
the past six months, buoyed by signs of moderating economic activity. Declining
interest rates have sparked a bond market rally, which, in turn, has ignited the
stock market to break through its previous record high. In fact, all major stock
indexes have advanced as corporate earnings continued to surprise on the upside.
Overall, from October 31, 1994 through April 30, 1995, the Fund's performance,
on a net asset value basis, outpaced the Russell 1000 Growth Index as well as
the small and mid-cap indices, including the Russell 2000 Index, the Nasdaq
Composite Index, the Nasdaq Industrial Index and the S&P 400 Midcap Index.
The Fund's objective is long-term capital growth. We seek to achieve this
objective by investing primarily in companies that (1) have at least two-thirds
of their employees located in the United States, or (2) produce in the United
States at least two-thirds of the value of the parts constituting the products
sold by the issuer, or (3) provide in the United States at least two-thirds of
the value of the services provided by the issuer. We continually review
securities in an effort to ensure that fundamentals remain sound and that the
criteria established within the investment specifications are being met. The
Fund is well diversified among the various industries and sectors of the market,
with an emphasis on those companies that we believe benefit from moderate
economic improvement. We also focus on companies with an above market average
five year earnings growth rate trading at attractive price-earnings valuations.
To capitalize on these positive trends, the Made In The U.S.A. Fund focused on
companies that we believed would continue to report strong earnings, offered
above-average earnings growth potential and had favorable relative valuations.
The Fund, in seeking to further diversify its holdings, added several new
companies during the first six months of its fiscal year. Exposure to small and
mid-capitalization companies, especially in the technology sector, positively
affected performance. Holdings include VLSI Technology, Intel, Adaptec and
Microsoft. Fund performance was hampered by declines in some of the healthcare
stocks held in the portfolio, especially in the HMO industry. These included Mid
Atlantic Medical Services, Quantum Health Resources and Living Centers of
America.
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
May 31, 1995
2
<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS UTILITIES INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
Dear Investor:
Your Fund ended its semi-annual reporting period on April 30, 1995. During this
period, dividends from net investment income of 11.9 cents per share were paid
out on the Class A shares. On the Class B shares, which were first offered for
sale on January 12, 1995, the dividends paid amounted to 5.5 cents per share.
During this period, your Fund outperformed the average of its respective Lipper
peer group of 86 funds, on a net asset value basis. Historically, utilities
perform well in a declining interest rate environment and slowing economy.
Recent economic data suggest the economy is slowing and interest rates are in a
declining mode. Both of these factors should continue to bode well for
utilities.
The Utilities Income Fund remains well diversified among electric, natural gas
and telephone companies. It continues to invest in utility companies which offer
the investor high earnings and dividend growth potential. Within the electric
sector of the market, the Fund's strategy is to: 1) avoid high dividend payout
electric companies with little growth potential, which are the most susceptible
to dividend reductions; 2) invest in electric companies that provide low cost
power in their respective geographic areas of service (such as, Duke Power,
Pacificorp, Southern Company and American Electric Power); 3) invest in electric
companies with successful non-utility earnings (such as, Baltimore Gas and
Electric, Duke Power and TECO Energy); 4) invest in electric companies located
in states that have constructive regulatory climates, such as Florida and
Wisconsin; and 5) invest in electric companies that are located in the fastest
growing areas in the United States, such as Florida, Colorado, Oregon and
Arizona.
In the telephone area of the market, the Fund focuses on companies which we feel
are best preparing for the future world of competition, as well as companies
that exhibit strong earnings growth. The Fund invests in telephone companies
with above average volume, minutes-of-use and cellular subscriber growth rates,
such as: Ameritech, SBC Communications and BellSouth. In the natural gas area,
the Fund emphasizes companies which in our opinion exhibit good dividend growth
potential and strong earnings growth prospects, such as: Enron Corp. and Pacific
Enterprise.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
/s/ Margaret R. Haggerty
Margaret R. Haggerty
Portfolio Manager
May 31, 1995
3
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--80.5%
BANKS--6.9%
18,000 Crestar Financial Corp. $ 810,000 $ 167
12,000 First Fidelity Bancorporation 579,000 120
27,000 Green Point Financial Corp. 646,312 133
11,500 J.P. Morgan & Co. 754,688 156
12,000 Republic New York Corp. 574,500 119
- ------------------------------------------------------------------------------------------------
3,364,500 695
- ------------------------------------------------------------------------------------------------
BUSINESS SERVICES--.7%
12,000 Sysco Corp. 336,000 69
- ------------------------------------------------------------------------------------------------
CHEMICALS--7.0%
13,000 Air Products & Chemicals Inc. 654,875 135
10,000 Du Pont (E.I.) De Nemours & Co. 658,750 136
30,000 Engelhard Corp. 1,151,250 238
10,000 Loctite Corp. 497,500 103
15,000 Witco Chemical Corp. 429,375 88
- ------------------------------------------------------------------------------------------------
3,391,750 700
- ------------------------------------------------------------------------------------------------
COMPUTER & OFFICE EQUIPMENT--1.4%
10,000 Hewlett-Packard Co. 661,250 137
- ------------------------------------------------------------------------------------------------
DRUGS--8.1%
9,500 American Home Products Corp. 732,687 151
10,000 Bristol Myers Squibb Co. 651,250 134
8,000 Johnson & Johnson 520,000 107
9,600 Pfizer Inc. 831,600 172
12,000 Smithkline Beecham PLC (ADR) Equity Unit 466,500 96
16,238 Zeneca Group PLC (ADR) 708,383 146
- ------------------------------------------------------------------------------------------------
3,910,420 806
- ------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.2%
10,000 DQE Inc. 337,500 70
27,000 Pacific Gas & Electric Co. 725,625 150
- ------------------------------------------------------------------------------------------------
1,063,125 220
- ------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRICAL EQUIPMENT--2.7%
10,000 General Electric Company $ 560,000 $ 116
18,000 York International Corp. 738,000 152
- ------------------------------------------------------------------------------------------------
1,298,000 268
- ------------------------------------------------------------------------------------------------
ELECTRONICS--.9%
10,000 AMP Inc. 427,500 88
- ------------------------------------------------------------------------------------------------
ENERGY SERVICES--3.9%
33,000 Dresser Industries Inc. 721,875 149
10,000 Schlumberger, Ltd. 628,750 130
20,000 Sonat Offshore Drilling Inc. 540,000 111
- ------------------------------------------------------------------------------------------------
1,890,625 390
- ------------------------------------------------------------------------------------------------
ENERGY SOURCES--4.8%
12,000 Amoco Corp. 787,500 163
12,000 Exxon Corp. 835,500 172
25,000 Unocal Corp. 718,750 148
- ------------------------------------------------------------------------------------------------
2,341,750 483
- ------------------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--1.2%
20,000 Cadbury Schweppes PLC (ADR) 575,000 119
- ------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--5.0%
10,000 Avon Products Inc. 632,500 131
33,000 Dial Corp. 796,125 164
18,000 Kimberly Clark Corporation 1,019,250 210
- ------------------------------------------------------------------------------------------------
2,447,875 505
- ------------------------------------------------------------------------------------------------
INSURANCE--3.5%
21,000 Ace Ltd. 556,500 115
5,500 American International Group Inc. 587,125 121
7,000 Marsh & McLennan Companies, Inc. 548,625 113
- ------------------------------------------------------------------------------------------------
1,692,250 349
- ------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MACHINERY & MANUFACTURING--3.4%
10,000 Illinois Tool Works Inc. $ 501,250 $ 103
12,000 Ingersoll-Rand Co. 429,000 89
12,000 Minnesota Mining & Manufacturing Company 715,500 148
- ------------------------------------------------------------------------------------------------
1,645,750 340
- ------------------------------------------------------------------------------------------------
MEDIA--6.4%
16,000 Gannett Co., Inc. 842,000 174
12,000 Knight-Ridder Inc. 651,000 134
10,000 *Scholastic Corp. 560,000 116
12,000 *Viacom Inc.-Class "B" 550,500 114
15,000 Vodafone Group PLC (ADR) 478,125 99
- ------------------------------------------------------------------------------------------------
3,081,625 637
- ------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS--1.2%
15,000 Abbott Laboratories 590,625 122
- ------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--2.5%
6,600 Georgia-Pacific Corp. 523,875 108
9,000 International Paper Co. 693,000 143
- ------------------------------------------------------------------------------------------------
1,216,875 251
- ------------------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS--1.6%
30,000 Mark Centers Trust 378,750 78
13,300 Storage USA Inc. 380,713 79
- ------------------------------------------------------------------------------------------------
759,463 157
- ------------------------------------------------------------------------------------------------
RETAIL--4.3%
22,000 May Department Stores Co. 797,500 165
18,000 Penney (J.C.) Co. Inc. 787,500 162
17,000 Talbots, Inc. 516,375 107
- ------------------------------------------------------------------------------------------------
2,101,375 434
- ------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
SOFTWARE & SERVICES--2.7%
6,000 Automatic Data Processing, Inc. $ 385,500 $ 79
15,000 *BMC Software Inc. 933,750 193
- ------------------------------------------------------------------------------------------------
1,319,250 272
- ------------------------------------------------------------------------------------------------
TELEPHONE--7.2%
16,500 A T & T Corp. 837,375 173
10,000 BCE Incorporated 317,500 66
15,000 NYNEX Corp. 613,125 127
16,000 SBC Communications Inc. 706,000 146
24,500 US West, Inc. 1,013,687 209
- ------------------------------------------------------------------------------------------------
3,487,687 721
- ------------------------------------------------------------------------------------------------
TRANSPORTATION--2.0%
30,000 Canadian Pacific Limited 457,500 94
9,000 Union Pacific Corp. 493,875 102
- ------------------------------------------------------------------------------------------------
951,375 196
- ------------------------------------------------------------------------------------------------
TRAVEL & LEISURE--.9%
12,000 McDonald's Corp. 420,000 87
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $34,993,602) 38,974,070 8,046
- ------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--5.2%
AUTOMOTIVE--1.1%
6,000 Ford Motor Co. Series "A" 4.2% 528,750 109
- ------------------------------------------------------------------------------------------------
ENERGY SOURCES--1.2%
5,000 Unocal Corp. 7% (Note 5) 272,500 56
7,000 Valero Energy Corp. 6 1/4% 328,125 68
- ------------------------------------------------------------------------------------------------
600,625 124
- ------------------------------------------------------------------------------------------------
HEALTH SERVICES--1.1%
9,000 Beverly Enterprises Inc. 5 1/2% 519,750 107
- ------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS--1.0%
18,000 US Surgical Corp. 9.76% 477,000 99
- ------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
AMOUNT
INVESTED
FOR EACH
SHARES OR $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS--.8%
18,000 Security Capital Pacific Trust "A" 7% $ 405,000 $ 84
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF CONVERTIBLE PREFERRED STOCKS (cost
$2,664,163) 2,531,125 523
- ------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--4.7%
COMMUNICATIONS EQUIPMENT--1.6%
$ 130M Ericsson (L.M.) Telephone Co. (American Dep. Deb.), 4 1/4%,
6/30/00 284,375 59
350M General Instrument Corp., 5%, 6/15/00 516,688 107
- ------------------------------------------------------------------------------------------------
801,063 166
- ------------------------------------------------------------------------------------------------
ENERGY SOURCES--1.1%
550M Noble Affiliates, 4 1/4%, 11/1/03 521,125 107
- ------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS--1.0%
485M McKesson Corp., 4 1/2%, 3/1/04 475,300 98
- ------------------------------------------------------------------------------------------------
TRAVEL & LEISURE--1.0%
500M AMR Corp., 6 1/8%, 11/1/24 485,000 100
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF CONVERTIBLE BONDS (cost $2,127,859) 2,282,488 471
- ------------------------------------------------------------------------------------------------
EQUITY-LINKED SECURITIES--.2%
COMPUTERS & OFFICE EQUIPMENT
1,000 Salomon Inc. (Hewlett-Packard) 5 1/4%, 1/1/97 (cost $76,375) 94,625 20
- ------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--8.4%
$ 4,080M Morgan (J.P.) & Co. Inc., 5.90%, 5/1/95 (collateralized by
$3,775M
U.S. Treasury Note, 8 7/8%, 11/15/98) (cost $4,080,000) 4,080,000 842
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $43,941,999) 99.0% 47,962,308 9,902
OTHER ASSETS, LESS LIABILITIES 1.0 476,415 98
- ------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $48,438,723 $10,000
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
<FN>
*Non-income producing
</TABLE>
See notes to financial statements
8
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS MADE IN THE U.S.A. FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--78.1%
BASIC INDUSTRY--3.9%
9,200 *Interpool, Inc. $ 135,700 $ 170
5,600 Schulman (A) Inc. 175,700 220
- ------------------------------------------------------------------------------------------------
311,400 390
- ------------------------------------------------------------------------------------------------
CAPITAL GOODS--4.1%
6,400 Case Corporation 162,400 203
3,900 *Varity Corp. 164,775 207
- ------------------------------------------------------------------------------------------------
327,175 410
- ------------------------------------------------------------------------------------------------
CONSUMER DURABLES--7.1%
5,600 Harley-Davidson, Inc. 133,700 167
7,000 Juno Lighting Inc. 145,250 182
5,500 Kimball International Inc. 145,750 183
5,500 Masco Corporation 140,250 176
- ------------------------------------------------------------------------------------------------
564,950 708
- ------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--4.2%
3,000 Eastman Kodak Co. 172,500 216
6,800 Newell Company 160,650 202
- ------------------------------------------------------------------------------------------------
333,150 418
- ------------------------------------------------------------------------------------------------
CONSUMER SERVICES--10.8%
1,700 *Ann Taylor Stores, Inc. 42,713 54
1,300 Dayton-Hudson Corp. 87,263 109
3,100 Disney (Walt) Company 171,662 215
4,400 *Fred Meyer, Inc. 137,500 172
8,500 *Home Shopping Network, Inc. 58,437 73
2,500 Rite Aid Corp. 58,125 73
4,200 Time Warner Inc. 153,825 193
3,300 *Viacom Inc.-Class "B" 151,388 190
- ------------------------------------------------------------------------------------------------
860,913 1,079
- ------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS MADE IN THE U.S.A. FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL--4.3%
2,000 Federal National Mortgage Association $ 176,500 $ 221
4,000 MGIC Investment Corporation 169,500 213
- ------------------------------------------------------------------------------------------------
346,000 434
- ------------------------------------------------------------------------------------------------
HEALTH CARE/MISCELLANEOUS--18.4%
4,200 Dentsply International Inc. 148,050 186
3,300 Ivax Corp. 85,387 107
4,200 *Living Centers of America, Inc. 119,175 149
6,100 *Mid Atlantic Medical Services, Inc. 105,225 132
10,800 *Pacific Physicians Services, Inc. 197,100 247
5,200 *Quantum Health Resources, Inc. 84,500 106
8,000 *Respironics Inc. 117,000 147
4,000 Stryker Corp. 180,500 226
5,600 Teva Pharmaceutical Industries Ltd. (ADR) 191,800 240
2,600 *Value Health, Inc. 89,700 112
1,900 Warner-Lambert Company 151,525 190
- ------------------------------------------------------------------------------------------------
1,469,962 1,842
- ------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
SHARES OR $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TECHNOLOGY--25.3%
3,000 A T & T Corp. $ 152,250 $ 191
4,900 *Adaptec, Inc. 156,800 197
5,600 *Atmel Corporation 246,400 309
3,500 Autodesk Inc. 119,219 149
2,400 Automatic Data Processing, Inc. 154,200 193
2,000 Computer Associates International, Inc. 128,750 161
3,000 *Electroglas, Inc. 130,500 164
4,300 *EMC Corporation 84,925 106
3,950 *Filenet Corp. 132,325 166
2,200 Intel Corporation 225,225 282
3,900 *Intersolv 53,625 67
2,600 *Microsoft Corp. 212,550 266
2,800 Nokia Corp - (ADR) "A" 114,800 144
5,000 *VLSI Technology Inc. 106,562 134
- ------------------------------------------------------------------------------------------------
2,018,131 2,529
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $5,317,890) 6,231,681 7,810
- ------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--16.3%
$ 200M BellSouth Telecommunications Inc., 5.98%, 5/4/95 199,930 250
500M Ford Motor Credit Co., 5.96%, 5/19/95 498,510 625
100M General Electric Capital Corp., 5.95%, 6/6/95 99,405 125
500M Pitney Bowes Credit Corp., 6%, 5/4/95 499,750 626
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $1,297,595) 1,297,595 1,626
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $6,615,485) 94.4% 7,529,276 9,436
OTHER ASSETS, LESS LIABILITIES 5.6 450,055 564
- ------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 7,979,331 $10,000
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
<FN>
*Non-income producing
</TABLE>
See notes to financial statements
11
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS UTILITIES INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--86.2%
ELECTRIC POWER--45.1%
35,000 American Electric Power Co. $1,146,250 $ 158
50,000 Baltimore Gas & Electric Company 1,181,250 162
25,000 Boston Edison Company 596,875 82
30,000 Carolina Power & Light Co. 825,000 114
55,000 Cinergy Corp. 1,381,875 190
30,000 Detroit Edison Company 847,500 116
65,000 DPL Inc. 1,356,875 186
35,000 DQE Inc. 1,181,250 162
40,000 Duke Power Company 1,580,000 217
45,000 Eastern Utilities Association 1,074,375 148
10,000 Empresa Nacional De Electricidad (ADR) 470,000 65
50,000 FPL Group, Inc. 1,837,500 252
45,000 General Public Utilities Corp. 1,282,500 176
30,000 Houston Industries Inc. 1,185,000 163
40,000 Illinova Corp. 930,000 128
30,000 New England Electric System 903,750 124
30,000 Nipsco Industries, Inc. 967,500 133
35,000 Northeast Utilities 765,625 105
30,000 Northern States Power Co. 1,327,500 182
70,000 Pacificorp 1,330,000 183
30,000 Peco Energy Co. 772,500 106
30,000 Pinnacle West Capital Corp. 645,000 89
35,000 Portland General Corp. 726,250 100
50,000 Public Service Company of Colorado 1,506,250 207
40,000 Public Service Enterprise Group Inc. 1,100,000 151
45,000 SCE Corp. 753,750 104
60,000 Southern Co. 1,237,500 170
55,000 TECO Energy, Inc. 1,168,750 161
25,000 Texas Utilities Co. 815,625 112
30,000 Unicom Corp. 787,500 108
40,000 Wisconsin Energy Co. 1,110,000 153
- ------------------------------------------------------------------------------------------------
32,793,750 4,507
- ------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
OF NET
SHARES SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY--6.4%
35,000 Enron Corp. $1,190,000 $ 164
30,000 NICOR Inc. 742,500 102
55,000 Pacific Enterprises 1,354,375 186
30,000 Panhandle Eastern Corp. 720,000 99
5,000 Royal Dutch Petroleum Co. 620,000 85
- ------------------------------------------------------------------------------------------------
4,626,875 636
- ------------------------------------------------------------------------------------------------
LONG DISTANCE/TELECOMMUNICATIONS--2.1%
20,000 A T & T Corp. 1,015,000 139
25,000 MCI Communications Corp. 543,750 75
- ------------------------------------------------------------------------------------------------
1,558,750 214
- ------------------------------------------------------------------------------------------------
NATURAL GAS--12.6%
30,000 Atlanta Gas Light Co. 1,095,000 150
30,000 Brooklyn Union Gas Co. 727,500 100
45,000 MCN Corp. 866,250 119
25,000 National Fuel Gas Co. 721,875 99
40,000 New Jersey Resources Corp. 900,000 123
35,000 Piedmont Natural Gas Company, Inc. 713,125 98
25,000 Questar Corp. 740,625 102
30,000 Sonat Inc. 911,250 125
15,000 Tenneco, Inc. 688,125 95
45,000 UGI Corporation 871,875 120
25,000 Washington Energy Company 371,875 51
20,000 WICOR, Inc. 550,000 76
- ------------------------------------------------------------------------------------------------
9,157,500 1,258
- ------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS UTILITIES INCOME FUND
(A Series of First Investors Series Fund II, Inc.)
April 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
SHARES OR $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TELEPHONE/UTILITIES--20.0%
25,000 Alltel Corp. $ 618,750 $ 85
45,000 Ameritech Corp. 2,025,000 278
40,000 Bell Atlantic Corp. 2,195,000 301
35,000 BellSouth Corp. 2,143,750 294
30,000 Frontier Corp. 603,750 83
65,000 GTE Corp. 2,218,125 305
25,000 NYNEX Corp. 1,021,875 140
40,000 SBC Communications Inc. 1,765,000 243
7,500 Tele Danmark A/S (ADR) 196,875 27
15,000 Telefonica De Espana (ADR) 551,250 76
30,000 US West, Inc. 1,241,250 171
- ------------------------------------------------------------------------------------------------
14,580,625 2,003
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $62,842,793) 62,717,500 8,618
- ------------------------------------------------------------------------------------------------
CORPORATE BONDS--7.1%
ELECTRIC & GAS UTILITIES--4.8%
$ 500M Baltimore Gas & Electric Co., 7.52%, 2000 500,145 69
500M Consolidated Edison Co. of New York, 6 5/8%, 2002 477,181 66
500M Duke Power Co., 5 7/8%, 2003 450,699 62
500M Idaho Power Co., 6.4%, 2003 462,796 64
700M Pennsylvania Power & Light Co., 6 7/8%, 2003 662,660 91
500M SCE Capital Corp., 7 3/8%, 2003 486,487 67
500M Union Electric Co., 6 3/4%, 2008 462,027 63
- ------------------------------------------------------------------------------------------------
3,501,995 482
- ------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG DISTANCE/TELECOMMUNICATIONS--.7%
$ 500M A T & T Corp., 7 1/2%, 2006 $ 498,475 $ 68
- ------------------------------------------------------------------------------------------------
TELEPHONE--1.6%
500M BellSouth Telecommunications Inc., 6 3/8%, 2004 465,919 64
250M Southern Bell Telephone & Telegraph Co., Inc., 8 1/8%, 2017 249,312 34
500M United Telephone of Florida, 6 1/4%, 2003 460,874 63
- ------------------------------------------------------------------------------------------------
1,176,105 161
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $5,543,843) 5,176,575 711
- ------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--6.1%
600M Browning-Ferris Industries Inc., 6%, 5/9/95 599,200 82
250M Ford Motor Credit Co., 5.97%, 6/16/95 248,093 34
1,200M Prudential Funding Corp., 5.95%, 5/2/95 1,199,801 165
2,400M Sara Lee Corp., 5.93%, 5/17/95 2,393,675 329
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost $4,440,769) 4,440,769 610
- ------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $72,827,405) 99.4% 72,334,844 9,939
OTHER ASSETS, LESS LIABILITIES .6 446,784 61
- ------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $72,781,628 $10,000
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS SERIES FUND II, INC.
April 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIRST INVESTORS
---------------------------------------------------------
GROWTH & MADE IN THE UTILITIES
INCOME FUND U.S.A. FUND INCOME FUND
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities:
At identified cost.................................................. $ 43,941,999 $ 6,615,485 $ 72,827,405
------------------ ----------------- ------------------
------------------ ----------------- ------------------
At value (Note 1A).................................................. $ 47,962,308 $ 7,529,276 $ 72,334,844
Cash.................................................................. 65,261 421,468 327,273
Receivables:
Capital shares sold................................................. 576,785 74,330 783,412
Dividends and interest.............................................. 137,650 4,968 552,653
Investment securities sold.......................................... -- -- 84,197
Investment adviser.................................................. 10,852 -- 7,781
Deferred organization expenses (Note 1E).............................. 10,750 12,083 8,750
------------------ ----------------- ------------------
Total Assets.......................................................... 48,763,606 8,042,125 74,098,910
------------------ ----------------- ------------------
LIABILITIES
Payables:
Investment securities purchased..................................... 166,100 -- 1,063,437
Capital shares redeemed............................................. 91,101 44,276 152,055
Accrued expenses.................................................... 44,250 13,601 71,953
Accrued advisory fee................................................ 23,432 4,917 29,837
------------------ ----------------- ------------------
Total Liabilities..................................................... 324,883 62,794 1,317,282
------------------ ----------------- ------------------
NET ASSETS............................................................ $ 48,438,723 $ 7,979,331 $ 72,781,628
------------------ ----------------- ------------------
------------------ ----------------- ------------------
NET ASSETS CONSIST OF:
Capital paid in....................................................... $ 44,905,183 $ 7,338,986 $ 77,521,620
Undistributed net investment income................................... 131,465 14,576 363,604
Accumulated net realized loss on investment transactions.............. (618,234) (288,022) (4,611,035)
Net unrealized appreciation (depreciation) in value of investments.... 4,020,309 913,791 (492,561)
------------------ ----------------- ------------------
Total................................................................. $ 48,438,723 $ 7,979,331 $ 72,781,628
------------------ ----------------- ------------------
------------------ ----------------- ------------------
CAPITAL SHARES OUTSTANDING (Note 4):
Class A............................................................. 6,603,532 599,039 13,562,428
Class B............................................................. 184,465 9,085 217,848
Net asset value and redemption price per share--Class A............... $7.14 $13.12 $5.28
Maximum offering price per share--Class A*............................ $7.62 $13.99 $5.63
Net asset value and offering price per share--Class B................. $7.12 $13.10 $5.26
<FN>
*On purchases of $25,000 or more, the sales charge is reduced.
</TABLE>
16 See notes to financial statements
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS SERIES FUND II, INC.
Six Months Ended April 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIRST INVESTORS
---------------------------------------------------------
GROWTH & MADE IN THE UTILITIES
INCOME FUND U.S.A. FUND INCOME FUND
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Dividends........................................................... $ 596,643 $ 34,151 $ 1,606,741
Interest............................................................ 138,802 29,735 281,098
------------------ -------- ------------------
Total income.......................................................... 735,445 63,886 1,887,839
------------------ -------- ------------------
Expenses:
Advisory fee (Note 3)............................................... 149,628 37,181 246,317
Shareholder servicing costs (Note 3)................................ 80,298 22,289 129,072
Distribution plan expenses--Class A (Note 3)........................ 59,414 11,124 98,136
Distribution plan expenses--Class B (Note 3)........................ 1,458 101 1,299
Professional fees................................................... 17,315 13,698 24,522
Reports and notices to shareholders................................. 14,055 5,797 23,678
Amortization of organization expenses (Note 1E)..................... 1,500 2,500 1,500
Other expenses...................................................... 12,121 5,977 17,973
------------------ -------- ------------------
Total expenses........................................................ 335,789 98,667 542,497
Less: Expenses waived or assumed (Note 3)............................. 151,075 61,196 234,018
------------------ -------- ------------------
Net expenses.......................................................... 184,714 37,471 308,479
------------------ -------- ------------------
Net investment income................................................. 550,731 26,415 1,579,360
------------------ -------- ------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (Note 2):
Net realized gain (loss) on investments............................... (446,802) 410,577 (534,323)
Net unrealized appreciation of investments............................ 3,488,461 401,968 3,158,053
------------------ -------- ------------------
Net gain on investments............................................... 3,041,659 812,545 2,623,730
------------------ -------- ------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $ 3,592,390 $ 838,960 $ 4,203,090
------------------ -------- ------------------
------------------ -------- ------------------
</TABLE>
See notes to financial statements 17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS SERIES FUND II, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
F I R S T
---------------------------
GROWTH &
INCOME FUND
---------------------------
11/1/94 to 11/1/93 to
4/30/95 10/31/94
<S> <C> <C>
- -----------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income......... $ 550,731 $ 472,794
Net realized gain (loss) on
investments................. (446,802) (171,432)
Net unrealized appreciation
(depreciation) of
investments................. 3,488,461 531,848
------------ ------------
Net increase (decrease) in net
assets resulting from
operations.................. 3,592,390 833,210
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income--Class
A........................... (527,845) (363,271)
Net investment income--Class
B........................... (3,694) --
Net realized gains--Class A... -- --
------------ ------------
Total dividends and
distributions............... (531,539) (363,271)
------------ ------------
CAPITAL SHARE TRANSACTIONS(a)
Class A:
Proceeds from shares sold... 11,969,633 32,133,753
Value of distributions
reinvested................ 516,654 356,387
Cost of shares redeemed..... (2,867,239) (1,877,923)
------------ ------------
9,619,048 30,612,217
------------ ------------
Class B:
Proceeds from shares sold... 1,266,439 --
Value of distributions
reinvested................ 3,687 --
Cost of shares redeemed..... (700) --
------------ ------------
1,269,426 --
------------ ------------
Net increase (decrease) from
capital share
transactions................ 10,888,474 30,612,217
------------ ------------
Net increase (decrease) in net
assets...................... 13,949,325 31,082,156
NET ASSETS
Beginning of period........... 34,489,398 3,407,242
------------ ------------
End of period+................ $48,438,723 $34,489,398
------------ ------------
------------ ------------
+Includes undistributed net
investment income of........ $ 131,465 $ 112,273
------------ ------------
------------ ------------
(a)Capital Shares Issued and
Redeemed
Class A:
Sold........................ 1,795,166 4,869,140
Issued for distributions
reinvested................ 77,335 54,795
Redeemed.................... (427,117) (285,184)
------------ ------------
Net increase (decrease) in
Class A shares
outstanding............... 1,445,384 4,638,751
------------ ------------
------------ ------------
Class B:
Sold........................ 184,033 --
Issued for distributions
reinvested................ 531 --
Redeemed.................... (99) --
------------ ------------
Net increase in Class B
shares outstanding........ 184,465 --
------------ ------------
------------ ------------
</TABLE>
18 See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
I N V E S T O R S
---------------------------------------------------------
MADE IN THE UTILITIES
U.S.A. FUND INCOME FUND
--------------------------- ---------------------------
11/1/94 to 11/1/93 to 11/1/94 to 11/1/93 to
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
---------------------------------------------------------
$ 26,415 $ 47,052 $ 1,579,360 $ 2,822,358
410,577 78,601 (534,323) (4,076,712)
401,968 (529,046) 3,158,053 (5,288,144)
------------ ------------ ------------ ------------
838,960 (403,393) 4,203,090 (6,542,498)
------------ ------------ ------------ ------------
(47,511) (133,361) (1,522,252) (2,645,975)
-- -- (7,635) --
-- -- -- (144,159)
------------ ------------ ------------ ------------
(47,511) (133,361) (1,529,887) (2,790,134)
------------ ------------ ------------ ------------
778,352 690,866 10,829,589 23,969,216
47,031 132,333 1,446,275 2,643,337
(1,406,718) (8,221,415) (5,975,081) (12,981,948)
------------ ------------ ------------ ------------
(581,335) (7,398,216) 6,300,783 13,630,605
------------ ------------ ------------ ------------
117,754 -- 1,129,512 --
-- -- 7,323 --
-- -- (150) --
------------ ------------ ------------ ------------
117,754 -- 1,136,685 --
------------ ------------ ------------ ------------
(463,581) (7,398,216) 7,437,468 13,630,605
------------ ------------ ------------ ------------
327,868 (7,934,970) 10,110,671 4,297,973
7,651,463 15,586,433 62,670,957 58,372,984
------------ ------------ ------------ ------------
$7,979,331 $ 7,651,463 $72,781,628 $62,670,957
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
$ 14,576 $ 35,672 $ 363,604 $ 314,131
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
61,307 59,608 2,103,815 4,434,791
3,962 11,130 285,376 509,896
(115,719) (703,703) (1,170,906) (2,454,714)
------------ ------------ ------------ ------------
(50,450) (632,965) 1,218,285 2,489,973
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
9,085 -- 216,460 --
-- -- 1,417 --
-- -- (28) --
------------ ------------ ------------ ------------
9,085 -- 217,849 --
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS SERIES FUND II, INC.
1. SIGNIFICANT ACCOUNTING POLICIES--First Investors Series Fund II, Inc. (the
"Fund"), a Maryland corporation, is registered under the Investment Company Act
of 1940 (the "1940 Act") as a diversified, open-end management investment
company. The Fund consists of three Series, First Investors Growth & Income
Fund, First Investors Made In The U.S.A. Fund and First Investors Utilities
Income Fund, and accounts separately for the assets, liabilities and operations
of each Series.
A. Security Valuation--Except as provided below, a security listed or traded on
an exchange or the NASDAQ National Market System is valued at its last sale
price on the exchange or system where the security is principally traded, and
lacking any sales, the security is valued at the mean between the closing bid
and asked prices. Each security traded in the over-the-counter market (including
securities listed on exchanges whose primary market is believed to be
over-the-counter) is valued at the mean between the last bid and asked prices
based upon quotes furnished by a market maker for such securities. Securities
may also be priced by a pricing service. The pricing service uses quotations
obtained from investment dealers or brokers, information with respect to market
transactions in comparable securities and other available information in
determining value. Short-term corporate notes which are purchased at a discount
are valued at amortized cost. Securities for which market quotations are not
readily available and other assets are valued on a consistent basis at fair
value as determined in good faith by or under the supervision of the Fund's
officers in a manner specifically authorized by the Board of Directors.
B. Federal Income Taxes--No provision has been made for federal income taxes on
net income or capital gains, since it is the policy of each Series to continue
to comply with the special provisions of the Internal Revenue Code applicable to
investment companies and to make sufficient distributions of income and capital
gains (in excess of any available capital loss carryovers) to relieve it from
all, or substantially all, such taxes. At April 30, 1995, capital loss
carryovers were as follows:
<TABLE>
<CAPTION>
Year Capital
Loss Carryovers
Expire
--------------------
Total 2001 2002
--------- --------- ---------
<S> <C> <C> <C>
GROWTH &
INCOME FUND................. $ 171,432 $ -- $ 171,432
MADE IN THE
U.S.A. FUND................. 698,598 698,598 --
UTILITIES
INCOME FUND................. 3,991,114 -- 3,991,114
</TABLE>
C. Distributions to Shareholders--Dividends from net investment income of the
Growth & Income Fund and Utilities Income Fund are declared and paid quarterly
and dividends from net investment income of the Made In The U.S.A. Fund are
declared and paid annually. Distributions from net realized capital gains of all
Series are normally declared and paid annually. Income dividends and capital
gain distributions are determined in accordance with income tax regulations,
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments for capital loss
carryforwards, deferral of wash sales and amortization of deferred organization
expenses.
D. Expense Allocation--Expenses directly charged or attributable to a Series are
paid from the assets of that Series. General expenses of the Fund are allocated
among and charged to the assets of each Series on a fair and equitable basis,
which may be based on the relative assets of each Series or the nature of the
services performed and relative applicability to each Series.
E. Deferred Organization Expenses--The Class A shares of each Series have
assumed the expenses
20
<PAGE>
incurred in connection with the Series organization. The organization expenses
of each Series are being amortized over a five year period. Investors purchasing
Class A shares of a Series bear such expenses only as they are amortized against
the investment income of the Class A shares of that Series.
First Investors Management Company, Inc. ("FIMCO"), the Fund's investment
adviser, has agreed that in the event any of the initial Class A shares of a
Series purchased by FIMCO are redeemed during the amortization period, the
redemption proceeds will be reduced by a pro rata portion of any unamortized
organization expenses in the same proportion as the number of initial Class A
shares of the Series being redeemed bears to the number of initial Class A
shares of the Series outstanding at the time of redemption.
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 and distributions to shareholders are recorded on the
ex-dividend date. Interest income and estimated expenses are accrued daily.
2. PURCHASES AND SALES OF SECURITIES--For the six months ended April 30, 1995,
purchases and sales of securities, excluding U.S. Treasury Bills and short-term
corporate notes, were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases of Sales
---------- ---------
<S> <C> <C>
GROWTH & INCOME FUND............................................................... $13,977,511 $4,944,450
MADE IN THE U.S.A. FUND............................................................ 3,699,456 5,614,322
UTILITIES INCOME FUND.............................................................. 12,556,600 6,055,788
</TABLE>
At April 30, 1995, aggregate cost and net unrealized appreciation (depreciation)
of securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Aggregate Unrealized Unrealized Appreciation
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
GROWTH & INCOME FUND....................................... $43,941,999 $ 4,531,932 $ 511,623 $ 4,020,309
MADE IN THE U.S.A. FUND.................................... 6,615,485 1,148,853 235,062 913,791
UTILITIES INCOME FUND...................................... 72,902,164 1,981,461 2,548,781 (567,320)
</TABLE>
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
directors of the Fund are officers and directors of its investment adviser,
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 directors of the Fund received no remuneration from the Fund for
serving in such capacities. Their remuneration (together with certain other
expenses of the Fund) is paid by FIMCO or FIC.
The Investment Advisory Agreement provides as compensation to FIMCO for each
Series other than the Made In The U.S.A. Fund, an annual fee, payable monthly,
at the rate of .75% on the first $300 million of each Series' average daily net
assets, .72% on the next $200 million, .69% on the next $250 million and .66% on
average daily net assets over $750 million. The annual fee for the Made In The
U.S.A. Fund is payable monthly, at the rate of 1.00% on the first $200 million
of the Series' average daily net assets, .75% on the next $300 million,
declining by .03% on each $250 million thereafter, down to .66% on average daily
net
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS SERIES FUND II, INC.
assets over $1 billion. The investment adviser has agreed to waive .25% of the
annual fee for the Made In The U.S.A. Fund for a minimum period ending October
31, 1995. For the six months ended April 30, 1995, total advisory fees accrued
to FIMCO were $433,126 of which $194,074 was waived. In addition, expenses of
$198,716 were assumed by FIMCO.
Pursuant to certain state regulations, FIMCO has agreed to reimburse each Series
if and to the extent that the Series' aggregate operating expenses, including
advisory fees but generally excluding interest, taxes, brokerage commissions and
extraordinary expenses, exceed any limitation on expenses applicable to that
Series in those states (unless waivers of such limitations have been obtained).
The amount of any such reimbursement is limited to the Series' yearly advisory
fee. For the six months ended April 30, 1995, no reimbursement was required
pursuant to these provisions.
For the six months ended April 30, 1995, FIC, as underwriter, received
$2,589,122 in commissions from the sale of Fund shares, after allowing $7,732 to
other dealers. Shareholder servicing costs included $170,361 in transfer agent
fees and out of pocket expenses accrued to ADM and $61,298 in custodian fees
paid to FFS.
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940 Act, each
Series is authorized to pay FIC a fee equal to .30% of the average net assets of
the Class A shares and 1% of the average net assets of the Class B shares on an
annualized basis each fiscal year, payable monthly. The fee consists of a
distribution fee and a service fee. The service fee is paid for the ongoing
servicing of clients who are shareholders of that Series. For the six months
ended April 30, 1995, these fees on the Class A shares amounted to $168,674 (of
which $53,499 was waived by FIC) and $2,858 on the Class B shares.
Wellington Management Company serves as an investment subadviser to the Growth &
Income Fund. The subadviser is paid by FIMCO and not by the Series.
4. CAPITAL--Each Series sells two classes of shares, Class A and Class B, each
with a public offering price that reflects different sales charges and expense
levels. Class A shares are sold with an initial sales charge of up to 6.25% of
the amount invested and pay a 12b-1 fee at the annual rate of .30% of each
Series' average daily net assets attributable to Class A shares. 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% during a
six-year period and pay a 12b-1 fee at the annual rate of 1.00% of each Series'
average daily net assets attributable to Class B shares. Class B shares
automatically convert into Class A shares after eight years. Realized and
unrealized gains or losses, investment income and expenses (other than 12b-1
fees and certain other class expenses) are allocated daily to each class of
shares based upon the relative proportion of net assets of each class. The Fund
has allocated 100,000,000 shares to each Series, 50,000,000 shares designated as
Class A and 50,000,000 shares designated as Class B.
5. RULE 144A SECURITIES--Rule 144A provides a non-exclusive safe harbor
exemption from the registration requirements of the Securities Act of 1933 for
specified resales of restricted securities to qualified investors. At April 30,
1995, the Growth & Income Fund held one 144A security with a value of $272,500,
representing less than 1% of the Series' net assets. This security is valued as
disclosed in Note 1A.
22
<PAGE>
(This page has been left blank intentionally.)
23
<PAGE>
FINANCIAL HIGHLIGHTS
FIRST INVESTORS SERIES FUND II, INC.
The following table sets forth the per share operating performance data for a
share outstanding, total return, ratios to average net assets and other
supplemental data for each period indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE DATA
---------------------------------------------------------------------------------------------------------
Income from Investment Operations
----------------------------------
Net
Realized
Net Asset and Less Distributions From Net Asset
Value Unrealized Total ------------------------ Value
----------- Net Gain from Net Net ------------
Beginning Investment (Loss) on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME
FUND
- ------------------
CLASS A
- ------------------
10/4/93* to
10/31/93.......... $6.56 $ .005 $ -- $ .005 $.005 $ -- $ .005 $ 6.56
11/1/93 to
10/31/94.......... 6.56 .128 .109 .237 .107 -- .107 6.69
11/1/94 to
4/30/95........... 6.69 .086 .452 .538 .088 -- .088 7.14
CLASS B
- ------------------
1/12/95** to
4/30/95........... 6.43 .027 .699 .726 .036 -- .036 7.12
- ----------------------------------------------------------------------------------------------------------------------------
MADE IN THE U.S.A.
FUND
- ------------------
CLASS A
- ------------------
8/24/92* to
10/31/92.......... $11.64 $ .036 $ .050 $ .086 $.026 $ -- $ .026 $ 11.70
11/1/92 to
10/31/93.......... 11.70 .122 .373 .495 .045 -- .045 12.15
11/1/93 to
10/31/94.......... 12.15 .078 (.326) (.248) .122 -- .122 11.78
11/1/94 to
4/30/95........... 11.78 .048 1.371 1.419 .079 -- .079 13.12
CLASS B
- ------------------
1/12/95** to
4/30/95........... 12.03 (.001) 1.071 1.070 -- -- -- 13.10
- ----------------------------------------------------------------------------------------------------------------------------
UTILITIES INCOME
FUND
- ------------------
CLASS A
- ------------------
2/22/93* to
10/31/93.......... $5.59 $ .118 $ .317 $ .435 $.105 $ -- $ .105 $ 5.92
11/1/93 to
10/31/94.......... 5.92 .239 (.839) (.600) .227 .013 .240 5.08
11/1/94 to
4/30/95........... 5.08 .121 .198 .319 .119 -- .119 5.28
CLASS B
- ------------------
1/12/95** to
4/30/95........... 4.95 .044 .321 .365 .055 -- .055 5.26
- ----------------------------------------------------------------------------------------------------------------------------
<FN>
(a)Annualized
*Commencement of operations
**Date shares first offered
+Calculated without sales charge
++Some or all expenses have been waived or assumed from commencement of
operations through April 30, 1995 (See Note 3).
</TABLE>
See notes to financial statements
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA Ratio to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------
Ratio to Average Net Before
Assets++ Expenses Waived or Assumed
Net Assets ---------------------------- ---------------------------
End of Net Net Portfolio
Total Period Investment Investment Turnover
Return+ (in Expenses Income Expenses Income Rate
(%) thousands) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
.99(a) $ 3,407 -- 1.02(a) 1.37(a) (.35)(a) 0
3.67 34,489 .67 2.26 1.83 1.11 6
8.14 47,125 .92(a) 2.77(a) 1.68(a) 2.02(a) 14
11.31 1,314 1.77(a) 1.34(a) 2.71(a) 0.40(a) 14
- ---------------------------------------------------------------------------------------------------------------
3.86(a) $ 8,150 .06(a) 1.87(a) 2.64(a) (.72)(a) 0
4.23 15,586 .81 .96 2.03 (.26) 52
(2.05) 7,651 .90 .45 2.32 (.97) 29
12.12 7,860 1.01(a) .71(a) 2.65(a) (.93)(a) 59
8.89 119 1.95(a) (.07)(a) 4.41(a) (2.53)(a) 59
- ---------------------------------------------------------------------------------------------------------------
11.28(a) $ 58,373 .35(a) 3.84(a) 1.80(a) 2.39(a) 17
(10.15) 62,671 .80 4.59 1.59 3.80 58
6.39 71,636 .94(a) 4.81(a) 1.65(a) 4.10(a) 10
7.39 1,146 1.72(a) 4.09(a) 2.59(a) 3.21(a) 10
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and Board of Directors of
First Investors Series Fund II, Inc.
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of First Investors Growth & Income Fund, First
Investors Made In The U.S.A. Fund and First Investors Utilities Income Fund
(comprising First Investors Series Fund II, Inc.), as of April 30, 1995, and the
related statement of operations for the six months then ended, the statement of
changes in net assets for the six months ended April 30, 1995 and the year ended
October 31, 1994 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 April 30, 1995,
by correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of First
Investors Growth & Income Fund, First Investors Made In The U.S.A. Fund and
First Investors Utilities Income Fund as of April 30, 1995, and the results of
their operations, changes in their net assets and financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
May 31, 1995
26
<PAGE>
FIRST INVESTORS SERIES FUND II, INC.
DIRECTORS
- -------------------------------------------
JAMES J. COY
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
F. WILLIAM ORTMAN, JR.
REX R. REED
HERBERT RUBINSTEIN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- -------------------------------------------
GLENN O. HEAD
President
MARGARET R. HAGGERTY
Vice President
PATRICIA D. POITRA
Vice President
CONCETTA DURSO
Vice President and Secretary
JOSEPH I. BENEDEK
Treasurer
CAROL LERNER BROWN
Assistant Secretary
SHAREHOLDER INFORMATION
- -------------------------------------------
INVESTMENT ADVISER
FIRST INVESTORS
MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
SUBADVISER (Growth & Income Fund only)
WELLINGTON MANAGEMENT COMPANY
75 State Street
Boston, MA 02109
UNDERWRITER
FIRST INVESTORS CORPORATION
95 Wall Street
New York, N.Y. 10005
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
TRANSFER AGENT
ADMINISTRATIVE DATA
MANAGEMENT CORP.
10 Woodbridge Center Drive
Woodbridge, NJ 07095-1198
LEGAL COUNSEL
KIRKPATRICK & LOCKHART, LLP
1800 M Street, N.W.
Washington, DC 20036
AUDITORS
TAIT, WELLER & BAKER
Two Penn Center Plaza
Philadelphia, PA 19102-1707
It is each Series' 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 in writing or by telephone by any
shareholder. Each Series 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.
27
<PAGE>
FIRST INVESTORS SERIES FUND II, INC.
95 WALL STREET
NEW YORK, NY 10005
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7393" in a box to
the right of a circle containing the words "MAILED FROM ZIP CODE
11201" appear on the upper righthand side.
The following appears on the bottom lefthand side:
First Investors Logo, which is described as follows: the arabic
numeral one separated into seven vertical segments followed by the
word "First Investors."
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIUSA 03
Vertically reading from bottom to top in the center of the page the
words "FIRST INVESTORS" appear.
FIRST
INVESTORS
SERIES FUND II, INC.
GROWTH & INCOME FUND
MADE IN THE U.S.A. FUND
UTILITIES INCOME FUND
SEMI-
ANNUAL
REPORT
APRIL 30, 1995
