<PAGE>
PORTFOLIO MANAGERS' LETTER
FIRST INVESTORS GROWTH & INCOME FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Growth &
Income Fund for the six months ended April 30, 1998. At April 30, 1998, the
Fund's net asset value per share was $13.63 for Class A shares and $13.47 for
Class B shares. During the period, the Fund declared dividends from net
investment income of 1.5 cents per share on Class A shares. The Fund also
declared a capital gain distribution of 27.4 cents per share on Class A and
Class B shares. For the period, the Fund returned 20.4% on Class A shares and
20.0% on Class B shares on a net asset value basis.
Your Fund's performance was aided by a continuing strong U.S. economy. While the
Asian economic crisis continues to date, its overall impact on the performance
of the U.S. economy and the stock market has been negligible. The Asian
situation has been a benefit to the American consumer by keeping a lid on
inflation and lowering certain commodity prices. The growth in the gross
domestic product, fueled by strength in consumer spending, was 4.2% on an
annualized basis in the first quarter of 1998 and was the sixth consecutive
quarter of annualized growth in excess of 3%.
The Growth & Income Fund's performance was driven by strong returns in the
technology sector. At the beginning of the period the technology sector came
under pressure due to concerns of a slowdown in Asia, which had been a
significant growth driver for the industry. The group rallied in the later part
of the period as earnings reports showed strong demand for networking and
computer services. Within this group our best performers were EMC Corporation,
Microsoft and Cisco, which rose 65%, 39% and 34%, respectively.
The Fund was also aided by holdings in health care. This group has been a solid
performer driven by favorable demographic trends, minimal Asian exposure, a
stable regulatory environment and industry consolidation. Stocks such as Pfizer,
Zeneca, Pharmacia & Upjohn, and Warner-Lambert performed strongly during the
period.
The Fund's largest sector, financials, also contributed favorably to results
during the period. The group continues to benefit from low interest rates,
industry consolidation, better capital allocation and a strong domestic economy.
We have added selectively to this group during the period with new positions in
St. Paul Companies and Reliance Group Holdings.
The six month performance of the Fund was held back by disappointing returns in
the Fund's transportation and energy sectors. The Fund's holdings in the energy
sector such as Royal Dutch Petroleum, Chevron and Amoco, underperformed during
the period due to weak oil prices. The crisis in Asia combined with an ill-timed
move by OPEC to raise production levels drove oil prices to one of the lowest
levels in the past 10 years.
Concerning investment strategy, the Fund continues to look for companies which
offer growth at a reasonable price. We continue to focus on sectors and
companies with stable, domestic growth characteristics such as health care,
telecommunications and financials.
The latest data show consumer confidence is high, the unemployment levels are
the lowest in a generation, the inflation outlook is good and the interest rate
environment remains favorable. The Federal Government is expected to generate a
budget surplus, which reduces the need for Treasury financing and increases the
amount of funds available to be put to work elsewhere.
While all this bodes well for the stock market, there are concerns on the
horizon for the near-term. The estimated earnings growth rate for the S&P 500 is
6.5% for 1998, down from the 11% growth rate in
1
<PAGE>
PORTFOLIO MANAGERS' LETTER (continued)
FIRST INVESTORS GROWTH & INCOME FUND
1997. There is also increasing concern that rising wages and employee benefits,
which corporations have been reluctant to pass through to consumers in the form
of price increases, will put additional pressure on corporate profit margins.
Asia continues to be a concern for various industries such as technology,
engineering and construction, major oil companies and oil service entities.
Other signs point to problems for the stock market as well. Valuations, by most
measures, are at historic highs. The acceleration of mergers and acquisitions in
the past has been taken as an indication of a possible market top. Finally, the
Federal Reserve, which has maintained a steady monetary policy to date, may
raise interest rates if the continued economic expansion points to the
re-acceleration of inflation.
For long-term investors, these concerns should not pose a problem. We believe
that the economy remains healthy and that the outlook for stocks remains
attractive relative to other asset classes over the long-term.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Dennis T. Fitzpatrick
Co-Portfolio Manager
[SIGNATURE]
Kimberly C. Speegle
Co-Portfolio Manager
May 29, 1998
2
<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Mid-Cap
Opportunity Fund for the six months ended April 30, 1998. At April 30, 1998, the
Fund's net asset value per share was $18.86 for Class A shares and $18.44 for
Class B shares. During the period, the Fund declared a capital gain distribution
of $1.179 per share on both classes. For the period, the Fund returned 8.5% on
Class A shares and 8.1% on Class B shares on a net asset value basis.
Your Fund's performance was aided by a continuing strong U.S. economy. While the
Asian economic crisis continues, to date its overall impact on the performance
of the U.S. economy and the stock market has been negligible. The Asian
situation has been a benefit to the American consumer by keeping a lid on
inflation and lowering certain commodity prices. The growth in the gross
domestic product, fueled by strength in consumer spending, was 4.2% on an
annualized basis in the first quarter of 1998 and was the sixth consecutive
quarter of annualized growth in excess of 3%.
The Fund's investments in oil service stocks were a drag on performance. The
first half of your Fund's fiscal 1998 began at the height of the Asian economic
crisis. Oil service stocks, which had been strong performers during the second
half of fiscal 1997, began to reverse their upward trend in response to reduced
oil demand in Asia. OPEC's decision to increase production and the United
Nations support of the "food for oil" agreement with Iraq put additional
pressure on the price of oil. The imbalance in the supply and demand for oil put
significant pressure on the energy stocks in the Fund's portfolio during the
period: EVI Inc., Nabors Industries, R&B Falcon, and Patterson Energy. However,
Veritas DGC Inc., a 3-D seismic exploration company, appreciated 32% despite the
overall harsh environment for energy stocks.
Unlike energy stocks, consumer cyclical stocks benefited from the Asian economic
crisis and performed well during the period. The American consumer benefited
from the strong U.S. dollar and low interest rates. The strong dollar lowered
the price of imported goods and kept inflation at bay. Attractive interest
rates, lowering monthly credit payments, along with soaring consumer confidence
fueled consumer spending. As a result, the Fund's holdings in Bed Bath & Beyond,
Children's Place, Hibbett, Fred Meyers, Stage Stores, and Staples were solid
performers.
Technology produced above-average returns. In general, the sector benefited from
the need for greater computing power and storage space, the year 2000 problem,
and the need for servicing and outsourcing. EMC Corporation, the leading
supplier of data storage capabilities in both the mainframe and disk array
segment, is an example of a company benefiting from the demand for greater
computing power. Compuware Inc., a provider of software products and
professional services designed to increase productivity of information systems
organizations, is an example of a beneficiary of outsourcing. Other technology
investments such as Symbol Technologies, Comdisco, Sterling Commerce, and
Cadence Design Systems also performed well.
Merger and acquisition activity was a mixed blessing for your Fund. LCI
International, acquired by Qwest and Falcon Drilling, which merged with R&B,
contributed to performance. But, Medpartners, a manager of physician practices,
had its plan to merge with Phycor terminated by Phycor due to operational
differences. The stock of two companies owned in the Fund was severely affected
by alleged accounting irregularities. Both Cendant and Transcrypt International
had to restate past earnings due to concerns about the possible incorrect
recognition of costs and revenue.
3
<PAGE>
PORTFOLIO MANAGER'S LETTER (continued)
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
The latest data show consumer confidence is high, the unemployment levels are
the lowest in a generation, the inflation outlook is good and the interest rate
environment remains favorable. The Federal Government is expected to generate a
budget surplus, which reduces the need for Treasury financing and increases the
amount of funds available to be put to work elsewhere.
While all this bodes well for the stock market, there are concerns on the
horizon for the near-term. The estimated earnings growth rate for the S&P 500 is
6.5% for 1998, down from the 11% growth rate in 1997. There is also increasing
concern that rising wages and employee benefits, which corporations have been
reluctant to pass through to consumers in the form of price increases, will put
additional pressure on corporate profit margins. Asia continues to be a concern
for various industries such as technology, energy and construction, major oil
companies and oil service entities. Other signs point to problems for the stock
market as well. Valuations, by most measures, are at historic highs. The
acceleration of mergers and acquisitions in the past has been taken as an
indication of a possible market top. Finally, the Federal Reserve, which has
maintained a steady monetary policy to date, may raise interest rates if the
continued economic expansion points to the re-acceleration of inflation.
For long-term investors, these concerns should not pose a problem. We believe
that the economy remains healthy and that the outlook for stocks remains
attractive relative to other asset classes over the long-term.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Patricia D. Poitra
Director of Equities
and Portfolio Manager
May 29, 1998
4
<PAGE>
PORTFOLIO MANAGER'S LETTER
FIRST INVESTORS UTILITIES INCOME FUND
Dear Investor:
We are pleased to present the semi-annual report for First Investors Utilities
Income Fund for the six months ended April 30, 1998. At April 30, 1998, the
Fund's net asset value per share was $7.78 for Class A shares and $7.70 for
Class B shares. During the period, the Fund declared dividends from net
investment income of 9.5 cents per share on Class A shares and 7.1 cents per
share on Class B shares. The Fund also declared a capital gain distribution of
37.4 cents per share on both classes. For the period, the Fund returned 17.9% on
Class A shares and 17.6% on Class B shares on a net asset value basis.
Your Fund's performance was aided by a continuing strong U.S. economy. While the
Asian economic crisis continues, to date its overall impact on the performance
of the U.S. economy and the stock market has been negligible. The Asian
situation has been a benefit to the American consumer by keeping a lid on
inflation and lowering certain commodity prices. The growth in the gross
domestic product, fueled by strength in consumer spending, was 4.2% on an
annualized basis in the first quarter of 1998 and was the sixth consecutive
quarter of annualized growth in excess of 3%.
The telephony holdings were the biggest positive contributor to your Fund's
performance. Through April of this year, telephony stocks dramatically
outperformed the overall U.S. market, and were stellar performers in Europe as
well. Within this group, our best performers were Intermedia Communications, LCI
International, and Telephonica de Espana, which jumped 61%, 54% and 52%,
respectively. Ten additional telephony holdings rose 25% or more during this
period.
Since the start of 1998, we have increased our position in the telephony sector
from 22% to 32% of the portfolio. We expect the telephony sector to continue to
outperform, helping our holdings in this group, due to three key factors:
- Strong demand growth in the telecommunications sector, particularly for
data transmission
- Ongoing deregulatory trends both here and abroad
- Waves of consolidation in the U.S. and Europe. European mergers will be
accelerated by currency and economic convergence
Elsewhere, we reduced our exposure to the electric utility sector from almost
44% as of the start of 1998, to less than 35% at present. This group has
consistently underperformed the overall market in eight of the last nine
quarters and over the last six years. Ongoing investor concerns with respect to
deregulation, competition and nuclear problems at several electric companies
hurt the relative performance of this sector. In the first four months of 1998,
record mild winter weather slashed earnings by 8% and hurt utility equity
prices. We expect to further reduce our exposure to this group as opportunities
arise.
We modestly reduced our weighting in the natural gas utility area as mild winter
weather lowered natural gas commodity prices and put a damper on equity
performance. We expect to increase our future exposure to this market in
response to improving fundamentals.
Going forward, the Fund will remain diversified among all three sectors of the
utility market. We will concentrate on those sectors with improving fundamentals
and the best earnings growth prospects.
The latest data show consumer confidence is high, the unemployment levels are
the lowest in a generation, the inflation outlook is good and the interest rate
environment remains favorable. The Federal Government is expected to generate a
budget surplus, which reduces the need for Treasury financing and increases
5
<PAGE>
PORTFOLIO MANAGER'S LETTER (continued)
FIRST INVESTORS UTILITIES INCOME FUND
the amount of funds available to be put to work elsewhere.
While all this bodes well for the stock market, there are concerns on the
horizon for the near-term. The estimated earnings growth rate for the S&P 500 is
6.5% for 1998, down from the 11% growth rate in 1997. There is also increasing
concern that rising wages and employee benefits, which corporations have been
reluctant to pass through to consumers in the form of price increases, will put
additional pressure on corporate profit margins. Asia continues to be a concern
for various industries such as technology, engineering and construction, major
oil companies and oil service entities. Other signs point to problems for the
stock market as well. Valuations, by most measures, are at historic highs. The
acceleration of mergers and acquisitions in the past has been taken as an
indication of a possible market top. Finally, the Federal Reserve, which has
maintained a steady monetary policy to date, may raise interest rates if the
continued economic expansion points to the re-acceleration of inflation.
For long-term investors, these concerns should not pose a problem. We believe
that the economy remains healthy and that the outlook for stocks remains
attractive relative to other asset classes over the long-term.
As always, we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Jack B. Wolfman
Portfolio Manager
May 29, 1998
6
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--87.6%
BASIC MATERIALS--6.1%
36,000 Air Products and Chemicals, Inc. $ 3,129,750 $ 104
27,000 Dow Chemical Company 2,610,562 86
60,000 Du Pont (E.I.) de Nemours & Company 4,368,750 144
56,000 International Paper Company 2,922,500 97
30,000 Phelps Dodge Corporation 2,013,750 67
33,000 United Technologies Corporation 3,248,437 107
- --------------------------------------------------------------------------------------
18,293,749 605
- --------------------------------------------------------------------------------------
CAPITAL GOODS--4.8%
95,000 General Electric Company 8,086,875 267
50,000 Illinois Tool Works, Inc. 3,525,000 117
30,000 Minnesota Mining and Manufacturing Company 2,831,250 94
- --------------------------------------------------------------------------------------
14,443,125 478
- --------------------------------------------------------------------------------------
COMMUNICATION SERVICES--3.4%
45,000 Cincinnati Bell, Inc. 1,721,250 57
24,000 GTE Corporation 1,402,500 46
90,000 SBC Communications, Inc. 3,729,375 123
80,000 *WorldCom, Inc. 3,422,504 113
- --------------------------------------------------------------------------------------
10,275,629 339
- --------------------------------------------------------------------------------------
CONSUMER CYCLICALS--9.2%
75,000 E.W. Scripps Company - Class "A" 4,251,562 141
86,000 Gannett Company, Inc. 5,842,625 193
90,000 Gap, Inc. 4,629,375 153
55,000 Knight-Ridder, Inc. 3,207,187 106
50,000 Nordstrom, Inc. 3,271,875 108
50,000 Sears, Roebuck and Company 2,965,625 98
75,000 Wal-Mart Stores, Inc. 3,792,187 125
- --------------------------------------------------------------------------------------
27,960,436 924
- --------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES--10.7%
50,000 CVS Corporation $ 3,687,500 $ 122
50,900 Estee Lauder Companies - Class "A" 3,381,669 112
85,000 Fort James Corporation 4,218,125 139
66,000 McDonald's Corporation 4,083,750 135
60,000 PepsiCo, Inc. 2,381,250 79
36,000 Procter & Gamble Company 2,958,750 98
60,800 *Revlon, Inc. - Class "A" 3,188,200 105
49,000 Sara Lee Corporation 2,918,562 97
33,300 Storage USA, Inc. 1,261,237 42
35,000 Walt Disney Company 4,350,937 144
- --------------------------------------------------------------------------------------
32,429,980 1,073
- --------------------------------------------------------------------------------------
ENERGY--7.3%
60,000 Amoco Corporation 2,655,000 88
33,000 Chevron Corporation 2,728,687 90
44,000 Exxon Corporation 3,209,250 106
66,000 Royal Dutch Petroleum Company 3,733,125 123
30,000 Schlumberger, Ltd. 2,486,250 82
55,000 Ultramar Diamond Shamrock Corporation 1,777,188 59
63,000 Unocal Corporation 2,579,063 85
95,000 Williams Companies, Inc. 3,004,375 99
- --------------------------------------------------------------------------------------
22,172,938 732
- --------------------------------------------------------------------------------------
FINANCIAL--19.6%
165,000 Ace, Ltd. 6,249,375 207
50,000 Allstate Corporation 4,812,500 159
45,000 American Express Company 4,590,000 152
33,000 American International Group, Inc. 4,341,563 144
80,000 Fannie Mae 4,790,000 158
80,000 First Union Corporation 4,830,000 160
63,000 Hertz Corporation - Class "A" 2,583,000 85
50,000 Kimco Realty Corporation 1,853,125 61
50,000 Marsh & McLennan Companies, Inc. 4,556,250 151
85,000 Reliance Group Holdings, Inc. 1,471,563 49
- --------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL (continued)
37,000 St. Paul Companies, Inc. $ 3,135,750 $ 104
67,500 Travelers Group, Inc. 4,130,156 137
38,000 U.S. Bancorp 4,826,000 160
50,000 Wachovia Corporation 4,246,875 140
40,000 Washington Mutual, Inc. 2,802,500 93
- --------------------------------------------------------------------------------------
59,218,657 1,960
- --------------------------------------------------------------------------------------
HEALTHCARE--11.0%
60,000 Abbott Laboratories 4,387,500 145
27,000 American Home Products Corporation 2,514,375 83
31,500 Bristol-Myers Squibb Company 3,335,063 110
60,000 Columbia/HCA Healthcare Corporation 1,976,250 65
22,500 Guidant Corporation 1,504,688 50
50,000 Johnson & Johnson 3,568,750 118
12,900 Merck & Company, Inc. 1,554,450 51
50,000 Pfizer, Inc. 5,690,625 188
22,000 Warner-Lambert Company 4,162,125 138
105,714 Zeneca Group PLC (ADR) 4,638,202 153
- --------------------------------------------------------------------------------------
33,332,028 1,101
- --------------------------------------------------------------------------------------
TECHNOLOGY--12.0%
50,000 *ADC Telecommunications, Inc. 1,496,875 50
65,000 Automatic Data Processing, Inc. 4,350,938 144
57,000 *Cisco Systems, Inc. 4,175,250 138
100,000 *EMC Corporation 4,612,500 153
94,000 First Data Corporation 3,184,250 105
50,000 *Gateway 2000, Inc. 2,934,375 97
33,000 International Business Machines Corporation 3,823,875 126
32,000 *Microsoft Corporation 2,884,000 95
80,000 *Oracle Corporation 2,070,000 68
110,000 *PairGain Technologies, Inc. 2,028,125 67
41,000 Xerox Corporation 4,653,500 154
- --------------------------------------------------------------------------------------
36,213,688 1,197
- --------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS GROWTH & INCOME FUND
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--1.0%
27,000 Delta Air Lines, Inc. $ 3,138,750 $ 104
- --------------------------------------------------------------------------------------
UTILITIES--2.5%
65,250 Connectiv, Inc. 1,366,173 45
10,875 Connectiv, Inc. - Class "A" 356,836 12
60,000 Enron Corporation 2,951,250 98
90,000 Wisconsin Energy Corporation 2,745,000 91
- --------------------------------------------------------------------------------------
7,419,259 246
- --------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $171,795,534) 264,898,239 8,759
- --------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--2.7%
CONSUMER CYCLICALS--.9%
70,000 Merrill Lynch Structured Yield Product
(exchangeable into Cox Communications, Inc.
Common Stock), 6% 2,616,250 87
- --------------------------------------------------------------------------------------
TECHNOLOGY--.9%
30,000 Microsoft Corp. "A", $2.196 2,793,750 92
- --------------------------------------------------------------------------------------
TRANSPORTATION--.9%
25,000 Royal Caribbean Cruises, Ltd. "A", 7.25% 2,746,875 91
- --------------------------------------------------------------------------------------
TOTAL VALUE OF CONVERTIBLE PREFERRED STOCKS (cost
$6,879,363) 8,156,875 270
- --------------------------------------------------------------------------------------
CONVERTIBLE BONDS--1.8%
CONSUMER CYCLICALS--.8%
$ 1,600M Home Depot, Inc., 3.25%, 2001 2,498,000 83
- --------------------------------------------------------------------------------------
TECHNOLOGY--1.0%
1,500M Analog Devices, Inc., 3.50%, 2000 2,842,500 94
- --------------------------------------------------------------------------------------
TOTAL VALUE OF CONVERTIBLE BONDS (cost
$3,714,071) 5,340,500 177
- --------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
WARRANTS INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS--.0%
CONSUMER STAPLES
1,276 *Security Capital Group, Inc. - Class "B"
(expiring 9/18/98)(cost $0) $ 3,589 $ --
- --------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--7.3%
$ 3,680M Clorox Co., 5.47%, 6/26/98 3,648,687 121
3,100M Coca-Cola Co., 5.47%, 5/19/98 3,091,522 102
4,400M Coca-Cola Co., 5.47%, 5/27/98 4,382,618 145
2,000M Eastman Kodak Co., 5.48%, 6/10/98 1,987,822 66
1,000M Florida Power Corp., 5.51%, 6/8/98 994,184 33
1,000M H.J. Heinz Co., 5.52%, 5/7/98 999,080 33
1,000M MetLife Funding, Inc., 5.52%, 5/18/98 997,393 33
1,000M MetLife Funding, Inc., 5.50%, 6/5/98 994,653 33
1,500M Paccar Financial Corp., 5.52%, 5/5/98 1,499,080 49
3,000M Prudential Funding Corp., 5.51%, 5/11/98 2,995,408 99
500M South Carolina Electric & Gas Co., 5.51%, 5/12/98 499,158 16
- --------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$22,089,605) 22,089,605 730
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $204,478,573) 99.4% 300,488,808 9,936
OTHER ASSETS, LESS LIABILITIES .6 1,940,199 64
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $302,429,007 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
11
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--91.4%
BASIC MATERIALS--5.9%
7,300 B.F. Goodrich Company $ 392,831 $ 98
4,900 Boise Cascade Corporation 184,056 46
2,600 Consolidated Papers, Inc. 172,087 43
6,000 *Corn Products International, Inc. 213,750 53
12,000 *Gaylord Container Corporation - Class "A" 115,500 29
2,000 Imperial Chemical Industries PLC (ADR) 145,375 36
3,400 *International Specialty Products, Inc. 67,787 17
13,000 Louisiana-Pacific Corporation 284,375 71
10,000 *NuCo2, Inc. 111,250 28
15,000 *Rock of Ages Corporation - Class "A" 241,875 60
6,000 Schulman (A.), Inc. 134,250 34
3,600 Universal Corporation 134,775 34
4,000 Willamette Industries, Inc. 155,250 39
- --------------------------------------------------------------------------------------
2,353,161 588
- --------------------------------------------------------------------------------------
CAPITAL GOODS--13.9%
10,000 Ametek, Inc. 304,375 76
5,000 Avery Dennison Corporation 261,875 65
11,400 *Checkpoint Systems, Inc. 213,037 53
3,000 Crane Company 161,437 40
5,000 Fluor Corporation 236,250 59
2,600 *Hadco Corporation 99,450 25
7,500 Harsco Corporation 345,000 86
5,300 Hussman International, Inc. 92,087 23
21,600 JLG Industries, Inc. 352,350 88
4,000 Johnson Controls, Inc. 237,500 59
18,200 *Newpark Resources, Inc. 437,937 109
10,000 Raychem Corporation 401,875 100
14,600 *Republic Industries, Inc. 406,062 101
15,000 Reynolds and Reynolds Company - Class "A" 345,000 86
4,500 *Sanmina Corporation 405,000 101
13,000 Symbol Technologies, Inc. 500,500 125
2,200 Tenneco, Inc. 94,737 24
- --------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CAPITAL GOODS (continued)
4,000 Thomas & Betts Corporation $ 233,500 $ 58
2,600 *Tower Automotive, Inc. 138,612 35
6,400 *USA Waste Services, Inc. 314,000 78
- --------------------------------------------------------------------------------------
5,580,584 1,391
- --------------------------------------------------------------------------------------
COMMUNICATION SERVICES--6.7%
7,500 *AirTouch Communications, Inc. 398,437 99
1,000 *America Online, Inc. 80,000 20
9,000 Century Telephone Enterprises, Inc. 383,062 96
11,000 Cincinnati Bell, Inc. 420,750 105
12,000 *Commonwealth Telephone Enterprises, Inc. 360,000 90
5,000 *IXC Communications, Inc. 249,375 62
8,500 *LCI International, Inc. 337,875 84
6,900 *Tel-Save Holdings, Inc. 157,406 39
7,400 *WorldCom, Inc. 316,582 79
- --------------------------------------------------------------------------------------
2,703,487 674
- --------------------------------------------------------------------------------------
CONSUMER CYCLICALS--18.1%
7,000 *Bed Bath & Beyond, Inc. 344,750 86
10,000 *Bowlin Outdoor Advertising & Travel Centers,
Inc.. 98,750 25
4,600 Central Newspapers, Inc. - Class "A" 336,950 84
2,100 *Champion Enterprises, Inc 52,237 13
4,400 *CheckFree Holdings Corporation 113,300 28
25,000 *Children's Place Retail Stores, Inc. 240,625 60
9,300 *Consolidated Stores Corporation 372,000 93
15,000 *CSK Auto Corporation 405,000 101
4,800 *Fred Meyer, Inc. 215,400 54
14,000 Harte-Hanks, Inc. 317,625 79
7,000 *Hexcel Corporation 195,562 49
5,000 *Hibbett Sporting Goods, Inc. 167,500 42
25,000 J. Baker, Inc. 293,750 73
4,800 *Kohl's Corporation 198,300 49
13,000 Mark IV Industries, Inc. 273,812 68
4,300 Masco Corporation 249,400 62
- --------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER CYCLICALS (continued)
4,700 *Neiman Marcus Group, Inc. $ 172,431 $ 43
8,400 *OfficeMax, Inc. 158,025 39
9,700 Ogden Corporation 298,275 74
6,200 Omnicom Group, Inc. 293,725 73
8,600 *PETsMART, Inc. 101,050 25
15,000 *Prime Hospitality Corporation 310,312 77
12,100 *Royal Group Technologies, LTD. 375,856 94
12,800 *Saks Holdings, Inc. 285,600 71
7,500 *Stage Stores, Inc. 385,781 96
8,700 *Staples, Inc. 214,781 54
11,250 *U.S. Office Products Company 198,984 50
400 Washington Post Company - Class "B" 209,700 52
12,500 Wolverine World Wide, Inc. 360,937 90
- --------------------------------------------------------------------------------------
7,240,418 1,804
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--15.0%
7,200 *Chancelor Media Corporation 341,550 85
9,900 CKE Restaurants, Inc. 342,788 86
8,000 *Corrections Corporation of America 222,000 55
6,000 Dole Food Company, Inc. 269,625 67
6,700 Earthgrains Company 313,225 78
2,600 *EVI Weatherford, Inc. 138,450 35
15,000 Flower Industries, Inc. 320,625 80
25,900 *Four Media Company 259,000 65
5,000 *Getty Images, Inc. 114,375 29
16,900 Global-Tech Appliances, Inc. 331,663 83
13,000 *Host Marriott Corporation 252,688 63
8,000 McCormick & Company, Inc. 274,000 68
8,700 *Nabors Industries, Inc. 219,131 55
5,500 Newell Company 265,719 66
6,100 Occidental Petroleum Corporation 179,569 45
8,000 *Oryx Energy Company 209,000 52
4,000 *R&B Falcon Corporation 128,250 32
7,500 Richfood Holdings, Inc. 205,781 51
- --------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER STAPLES (continued)
7,000 *Stolt Comex Seaway SA $ 227,500 $ 57
10,350 *Tele-Communications, Inc. Liberty Media Group
- Series "A" 343,491 86
3,200 Time Warner, Inc. 251,200 63
4,400 Ultramar Diamond Shamrock Corporation 142,175 35
5,800 *Veritas DGC, Inc. 314,288 78
6,100 *Vlasic Foods International, Inc. 140,681 35
10,600 Whitman Corporation 207,363 52
- --------------------------------------------------------------------------------------
6,014,137 1,501
- --------------------------------------------------------------------------------------
FINANCIAL--9.9%
7,000 American Financial Group, Inc. 304,938 76
3,500 Astoria Financial Corporation 205,188 51
3,990 Charter One Financial, Inc. 270,073 67
4,054 Conseco, Inc. 201,180 50
4,300 Dime Bancorp, Inc. 131,956 33
5,200 Fannie Mae 311,350 78
4,900 First Tennessee National Corporation 168,744 42
9,200 Franklin Resources, Inc. 492,200 123
5,200 GreenPoint Financial Corporation 206,375 51
9,200 *Imperial Credit Industries, Inc. 232,300 58
17,400 Innkeepers USA Trust 263,175 66
4,000 Meadowbrook Insurance Group, Inc. 130,750 33
3,213 Mercantile Bancorporation, Inc. 177,920 44
5,100 Provident Companies, Inc. 199,219 50
10,100 Resource Bancshares Mortgage Group, Inc. 179,275 45
12,000 TIG Holdings, Inc. 288,750 72
2,500 Wachovia Corporation 212,344 53
- --------------------------------------------------------------------------------------
3,975,737 992
- --------------------------------------------------------------------------------------
HEALTHCARE--6.6%
12,400 *American Oncology Resources, Inc. 186,000 46
3,400 *Centocor, Inc. 143,438 36
20,000 *Covance, Inc. 428,750 107
8,000 *Foundation Health Systems, Inc. - Class "A" 231,500 58
- --------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS MID-CAP OPPORTUNITY FUND
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
HEALTHCARE (continued)
5,800 *Genzyme Corporation (General Division) $ 179,438 $ 45
5,400 *Health Management Associates, Inc. - Class "A" 170,100 42
11,300 Jones Pharma, Inc. 333,350 83
11,600 Mylan Laboratories, Inc. 314,650 79
19,500 *NovaCare, Inc. 271,781 68
12,000 *Quorum Health Group, Inc. 385,500 96
- --------------------------------------------------------------------------------------
2,644,507 660
- --------------------------------------------------------------------------------------
TECHNOLOGY--11.8%
3,000 *Altera Corporation 121,500 30
7,600 *Analog Devices, Inc. 295,925 74
3,500 *Ascend Communications, Inc. 152,469 38
6,600 *Cadence Design Systems, Inc. 239,663 60
2,100 *Cisco Systems, Inc. 153,825 38
7,500 *CMC Industries, Inc. 70,313 18
6,000 Comdisco, Inc. 265,500 66
8,000 *Compuware Corporation 391,000 98
9,200 *Condor Technology Solutions, Inc. 160,425 40
11,800 *EMC Corporation 544,275 136
1,500 *Exodus Communications, Inc. 57,000 14
11,000 *Fore Systems, Inc. 251,625 63
20,000 *Information Storage Devices, Inc. 110,000 27
3,000 Intel Corporation 242,438 60
2,500 *Manhattan Associates, Inc. 56,563 14
3,000 Northern Telecom, Ltd. 182,625 46
14,000 *PairGain Technologies, Inc. 258,125 64
8,000 *Platinum Technology, Inc. 204,000 51
4,000 *PRI Automation, Inc. 107,000 27
3,400 *Rambus, Inc. 152,788 38
5,000 *Remedy Corporation 110,313 28
7,700 *Sterling Commerce, Inc. 327,731 82
3,500 *Synopsys, Inc. 150,500 38
1,500 *Tellabs, Inc. 106,313 27
- --------------------------------------------------------------------------------------
4,711,916 1,177
- --------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--1.3%
1,760 *FDX Corporation $ 119,680 $ 30
6,000 Royal Caribbean Cruises, Ltd. 410,250 102
- --------------------------------------------------------------------------------------
529,930 132
- --------------------------------------------------------------------------------------
UTILITIES--2.2%
5,000 American Water Works Company, Inc. 149,688 37
10,400 Houston Industries, Inc. 302,250 75
5,600 Sierra Pacific Resources 196,000 49
14,200 United Water Resources, Inc. 245,838 61
- --------------------------------------------------------------------------------------
893,776 222
- --------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $29,490,561) 36,647,653 9,141
- --------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--6.7%
$ 600M Ciesco, L.P., 5.50%, 5/15/98 598,717 149
1,700M Florida Power Corp., 5.52%, 6/3/98 1,691,398 422
400M Met Life Funding, Inc., 5.52%, 5/18/98 398,957 100
- --------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$2,689,072) 2,689,072 671
- --------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $32,179,633) 98.1% 39,336,725 9,812
OTHER ASSETS, LESS LIABILITIES 1.9 755,246 188
- --------------------------------------------------------------------------------------
NET ASSETS 100.0% $40,091,971 $10,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
17
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS UTILITIES INCOME FUND
April 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--91.2%
CAPITAL GOODS--.7%
11,400 General Electric Company $ 970,425 $ 72
- ---------------------------------------------------------------------------------------
COMMUNICATION SERVICES--31.0%
15,000 *AirTouch Communications, Inc. 796,875 59
5,000 A T & T Corporation 300,312 22
40,000 Bell Atlantic Corporation 3,742,500 277
63,000 BellSouth Corporation 4,043,812 299
27,100 *Cable & Wireless Communications, PLC (ADR) 978,987 72
63,000 Century Telephone Enterprises, Inc. 2,681,437 198
20,600 Cia. de Telecomunicaciones de Chile SA (ADR) 516,287 38
30,000 Cincinnati Bell, Inc. 1,147,500 85
69,600 GTE Corporation 4,067,250 301
7,700 *IDT Corporation 236,294 18
22,600 *Intermedia Communications, Inc. 1,649,447 122
32,000 *LCI International, Inc. 1,272,000 94
31,200 *RCN Corporation 705,900 52
98,000 SBC Communications, Inc. 4,060,875 301
31,000 Sprint Corporation 2,117,687 157
11,890 *Star Telecommunications, Inc. 321,773 24
46,700 *Tel-Save Holdings, Inc. 1,065,344 79
7,700 Telecomunicacoes Brasileiras SA - Telebras (ADR) 937,956 69
18,000 Telefonica de Argentina SA (ADR) 694,125 51
15,500 Telefonica del Peru SA (ADR) 342,937 25
15,000 Telefonica SA (ADR) 1,874,062 139
15,000 *Telefonica SA - Rights (ADR) 25,312 2
15,500 Teleglobe, Inc. 678,125 50
1,600 *Teligent, Inc. - Class "A" 47,000 4
49,000 US West Communications Group 2,584,750 191
62,300 *Viatel, Inc. 630,787 47
42,800 *WinStar Communication, Inc. 1,663,850 123
61,500 *WorldCom, Inc. 2,631,050 195
- ---------------------------------------------------------------------------------------
41,814,234 3,094
- ---------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
ENERGY--2.1%
12,000 Ashland, Inc. $ 634,500 $ 47
4,100 Lakehead Pipe Line Partners, L. P. 191,675 14
29,000 Oneok, Inc. 1,174,500 87
23,000 *Seagull Energy Corporation 392,437 29
7,700 Texaco, Inc. 473,550 35
- ---------------------------------------------------------------------------------------
2,866,662 212
- ---------------------------------------------------------------------------------------
FINANCIAL--1.4%
41,300 Innkeepers USA Trust 624,662 46
74,700 Westfield America, Inc. 1,307,250 97
- ---------------------------------------------------------------------------------------
1,931,912 143
- ---------------------------------------------------------------------------------------
TECHNOLOGY--.9%
5,000 Lucent Technologies, Inc. 380,625 28
7,700 Motorola, Inc. 428,313 32
15,500 *PairGain Technologies, Inc. 285,781 21
15,500 *Verilink Corporation 130,781 10
- ---------------------------------------------------------------------------------------
1,225,500 91
- ---------------------------------------------------------------------------------------
UTILITIES--55.1%
21,000 *AES Corporation 1,158,938 86
18,060 Ameren Corporation 715,628 53
52,000 American Electric Power Company, Inc. 2,483,000 184
31,400 American Water Works Company, Inc. 940,038 70
38,000 Baltimore Gas and Electric Company 1,197,000 89
35,000 BEC Energy 1,426,250 106
11,500 California Water Service Group 308,344 23
38,800 Central & South West Corporation 1,011,225 75
49,000 CMS Energy Corporation 2,140,688 158
32,000 Coastal Corporation 2,286,000 169
8,000 Columbia Energy Group 650,000 48
35,000 Consolidated Edison, Inc. 1,583,750 117
25,000 Dominion Resources, Inc. 989,063 73
60,000 DQE, Inc. 2,062,500 153
- ---------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS UTILITIES INCOME FUND
April 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
15,600 DTE Energy Company $ 611,325 $ 45
27,300 Edison International 813,881 60
42,000 El Paso Natural Gas Company 1,551,375 115
48,000 Endesa SA (ADR) 1,164,000 86
15,200 Energen Corporation 339,150 25
15,500 Energy East Corporation 647,125 48
47,100 Enova Corporation 1,259,925 93
28,700 Enron Corporation 1,411,681 104
60,000 Florida Progress Corporation 2,437,500 180
60,000 FPL Group, Inc. 3,723,750 276
40,000 GPU, Inc. 1,585,000 117
73,800 Houston Industries, Inc. 2,144,813 159
48,900 K N Energy, Inc. 2,869,819 212
7,800 Kansas City Power & Light Company 232,050 17
2,200 Maine Public Service Company 31,488 2
40,000 MCN Energy Group, Inc. 1,510,000 112
40,000 MDU Resources Group, Inc. 1,387,500 103
15,600 Montana Power Company 580,125 43
55,000 New Century Energies, Inc. 2,612,500 193
30,000 New Jersey Resources Corporation 1,132,500 84
15,500 NGC Corporation 228,625 17
12,100 NICOR, Inc. 495,344 37
62,400 NIPSCO Industries, Inc. 1,673,100 124
20,000 Northern States Power Company 1,127,500 83
1,500 Northwest Natural Gas Company 40,500 3
52,000 OGE Energy Corporation 2,856,750 211
35,000 Pacific Enterprises 1,362,813 101
25,000 Piedmont Natural Gas Company, Inc. 851,563 63
30,000 Questar Corporation 1,301,250 96
62,900 SCANA Corporation 1,879,138 139
37,400 Sierra Pacific Resources 1,309,000 97
30,000 Sonat, Inc. 1,331,250 99
52,300 Southern Company 1,385,950 103
28,200 Southwest Gas Corporation 650,363 48
- ---------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
SHARES INVESTED
OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
41,900 Texas Utilities Company $ 1,676,000 $ 124
27,000 TransCanada Pipelines, Ltd. 602,438 45
35,000 UGI Corporation 971,250 72
34,800 Unicom Corporation 1,209,300 90
54,100 United Water Resources, Inc. 936,606 69
41,000 UtiliCorp United, Inc. 1,542,625 114
30,000 Washington Gas Light Company 815,625 60
34,100 Westcoast Energy, Inc. 801,350 59
67,100 Williams Companies, Inc. 2,122,038 157
7,100 Wisconsin Energy Corporation 216,550 16
- ---------------------------------------------------------------------------------------
74,384,859 5,505
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $94,899,293) 123,193,592 9,117
- ---------------------------------------------------------------------------------------
PREFERRED STOCKS--.7%
FINANCIAL
10,000 Pacific Telesis Financing I, 7.56% 251,875 19
10,000 Pacific Telesis Financing II, 8.50% 261,875 19
5,000 US West Financing I, 7.96% 130,000 10
10,000 US West Financing II, 8.25% 264,375 19
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $875,000) 908,125 67
- ---------------------------------------------------------------------------------------
CORPORATE BONDS--3.5%
COMMUNICATION SERVICES--1.1%
$ 500M AT&T Corp., 7.50%, 2006 537,611 40
500M BellSouth Telecommunications, Inc., 6.375%, 2004 507,943 38
500M United Telephone Co. of Florida, 6.25%, 2003 501,727 37
- ---------------------------------------------------------------------------------------
1,547,281 115
- ---------------------------------------------------------------------------------------
UTILITIES--2.4%
500M Baltimore Gas & Electric Co., 7.52%, 2000 514,318 38
500M Consolidated Edison, Inc., 6.625%, 2002 509,044 38
500M Duke Energy Corp., 5.875%, 2003 495,298 37
500M Idaho Power Co., 6.40%, 2003 506,910 37
- ---------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
FIRST INVESTORS UTILITIES INCOME FUND
April 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C>
UTILITIES (continued)
$ 700M PP&L Resources, Inc., 6.875%, 2003 $ 718,789 $ 53
500M Union Electric Co., 6.75%, 2008 516,108 38
- ---------------------------------------------------------------------------------------
3,260,467 241
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $4,761,172) 4,807,748 356
- ---------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.5%
1,800M Avnet, Inc., 5.51%, 5/19/98 1,795,041 133
1,000M Du Pont (E.I.) de Nemours & Co., 5.48%, 5/5/98 999,391 74
2,000M Toyota Motor Credit Corp., 5.49%, 5/12/98 1,996,645 148
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF SHORT-TERM CORPORATE NOTES (cost
$4,791,077) 4,791,077 355
- ---------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $105,326,542) 98.9% 133,700,542 9,895
OTHER ASSETS, LESS LIABILITIES 1.1 1,421,139 105
- ---------------------------------------------------------------------------------------
NET ASSETS 100.0% $135,121,681 $10,000
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
* Non-income producing
See notes to financial statements
22
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FIRST INVESTORS SERIES FUND II, INC.
April 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
GROWTH & MID-CAP UTILITIES
INCOME OPPORTUNITY INCOME
FUND FUND FUND
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment in securities:
At identified cost................... $204,478,573 $32,179,633 $105,326,542
------------ ----------- ------------
------------ ----------- ------------
At value (Note 1A)................... $300,488,808 $39,336,725 $133,700,542
Cash................................... 877,063 282,057 791,041
Receivables:
Investment securities sold........... 3,067,219 349,585 475,024
Capital shares sold.................. 652,910 301,572 188,343
Dividends and interest............... 262,260 10,132 436,020
Deferred organization expenses (Note
1E).................................. 1,774 -- --
------------ ----------- ------------
Total Assets........................... 305,350,034 40,280,071 135,590,970
------------ ----------- ------------
LIABILITIES
Payables:
Investment securities purchased...... 2,230,233 65,000 127,528
Capital shares redeemed.............. 451,147 60,469 217,998
Accrued advisory fees.................. 185,785 24,049 84,587
Accrued expenses....................... 53,862 38,582 39,176
------------ ----------- ------------
Total Liabilities...................... 2,921,027 188,100 469,289
------------ ----------- ------------
NET ASSETS............................. $302,429,007 $40,091,971 $135,121,681
------------ ----------- ------------
------------ ----------- ------------
NET ASSETS CONSIST OF:
Capital paid in........................ $201,104,875 $32,580,503 $100,484,093
Undistributed net investment income
(deficit)............................ 46,160 (50,506) 209,884
Accumulated net realized gain on
investment transactions.............. 5,267,737 404,882 6,053,704
Net unrealized appreciation in value of
investments.......................... 96,010,235 7,157,092 28,374,000
------------ ----------- ------------
Total.................................. $302,429,007 $40,091,971 $135,121,681
------------ ----------- ------------
------------ ----------- ------------
NET ASSETS:
Class A.............................. $262,025,115 $35,617,878 $122,364,213
Class B.............................. $ 40,403,892 $ 4,474,093 $ 12,757,468
CAPITAL SHARES OUTSTANDING (Note 4):
Class A.............................. 19,225,201 1,888,823 15,727,351
Class B.............................. 3,000,559 242,609 1,657,590
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE - CLASS A.................. $ 13.63 $ 18.86 $ 7.78
------ ----------- -----
------ ----------- -----
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A (Net asset
value/.9375)*........................ $ 14.54 $ 20.12 $ 8.30
------ ----------- -----
------ ----------- -----
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - CLASS B (Note 4)............. $ 13.47 $ 18.44 $ 7.70
------ ----------- -----
------ ----------- -----
</TABLE>
* On purchases of $25,000 or more, the sales charge is reduced.
See notes to financial statements
23
<PAGE>
STATEMENT OF OPERATIONS
FIRST INVESTORS SERIES FUND II, INC.
Six Months Ended April 30, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
GROWTH & MID-CAP UTILITIES
INCOME OPPORTUNITY INCOME
FUND FUND FUND
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends............................ $ 1,688,571 $ 116,251 $ 1,958,026
Interest............................. 536,300 92,644 274,537
----------- ----------- -----------
Total income........................... 2,224,871 208,895 2,232,563
----------- ----------- -----------
Expenses (Notes 1 and 3):
Advisory fee......................... 965,208 164,831 467,703
Shareholder servicing costs.......... 373,642 74,604 188,755
Distribution plan expenses - Class
A.................................. 335,883 44,059 170,459
Distribution plan expenses - Class
B.................................. 163,983 17,528 54,444
Professional fees.................... 17,309 18,254 17,236
Reports and notices to
shareholders....................... 23,050 7,262 13,550
Custodian fees....................... 18,705 5,189 7,481
Amortization of organization
expenses........................... 1,500 -- 1,250
Other expenses....................... 15,724 4,071 12,422
----------- ----------- -----------
Total expenses......................... 1,915,004 335,798 933,300
Less: Expenses waived or assumed....... -- (71,208) --
Custodian fees paid indirectly.... (11,824) (5,189) (7,481)
----------- ----------- -----------
Net expenses........................... 1,903,180 259,401 925,819
----------- ----------- -----------
Net investment income (loss)........... 321,691 (50,506) 1,306,744
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (Note 2):
Net realized gain on investments....... 5,281,747 411,912 6,082,228
Net unrealized appreciation of
investments.......................... 42,348,149 2,604,377 12,491,433
----------- ----------- -----------
Net gain on investments................ 47,629,896 3,016,289 18,573,661
----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $47,951,587 $ 2,965,783 $19,880,405
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See notes to financial statements
24
<PAGE>
(This page has been left blank intentionally.)
25
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FIRST INVESTORS SERIES FUND II, INC.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
GROWTH &
INCOME FUND
--------------------------
11/1/97 TO 11/1/96 TO
4/30/98 10/31/97
- --------------------------------------- ------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ 321,691 $ 815,670
Net realized gain on investments..... 5,281,747 5,328,547
Net unrealized appreciation of
investments........................ 42,348,149 31,106,647
------------ ------------
Net increase in net assets
resulting from operations........ 47,951,587 37,250,864
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... (275,531) (817,347)
Net investment income - Class B...... -- (14,650)
Net realized gains - Class A......... (4,666,251) (2,000,523)
Net realized gains - Class B......... (666,704) (234,403)
------------ ------------
Total distributions................ (5,608,486) (3,066,923)
------------ ------------
CAPITAL SHARE TRANSACTIONS (a)
Class A:
Proceeds from shares sold............ 41,585,861 69,592,366
Value of distributions reinvested.... 4,894,660 2,780,887
Value of shares redeemed............. (15,257,044) (20,987,333)
------------ ------------
31,223,477 51,385,920
------------ ------------
Class B:
Proceeds from shares sold............ 9,266,580 12,978,761
Value of distributions reinvested.... 662,444 246,352
Value of shares redeemed............. (1,820,446) (2,077,855)
------------ ------------
8,108,578 11,147,258
------------ ------------
Net increase (decrease) from capital
share transactions................. 39,332,055 62,533,178
------------ ------------
Net increase (decrease) in net
assets........................... 81,675,156 96,717,119
NET ASSETS
Beginning of period.................. 220,753,851 124,036,732
------------ ------------
End of period+....................... $302,429,007 $220,753,851
------------ ------------
------------ ------------
+Includes undistributed net investment
income (deficit) of................... $ 46,160 $ --
------------ ------------
------------ ------------
(a)CAPITAL SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 3,305,470 6,493,708
Issued for distributions
reinvested......................... 405,949 283,146
Redeemed............................. (1,214,699) (1,962,857)
------------ ------------
Net increase (decrease) in Class A
capital shares outstanding......... 2,496,720 4,813,997
------------ ------------
------------ ------------
Class B:
Sold................................. 743,874 1,213,405
Issued for distributions
reinvested......................... 55,714 25,769
Redeemed............................. (144,774) (195,408)
------------ ------------
Net increase in Class B capital
shares outstanding................. 654,814 1,043,766
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements
26
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
MID-CAP UTILITIES
OPPORTUNITY FUND INCOME FUND
------------------------ --------------------------
11/1/97 TO 11/1/96 TO 11/1/97 TO 11/1/96 TO
4/30/98 10/31/97 4/30/98 10/31/97
- --------------------------------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income (loss)......... $ (50,506) $ (58,391) $ 1,306,744 $ 3,269,947
Net realized gain on investments..... 411,912 1,997,140 6,082,228 7,342,477
Net unrealized appreciation of
investments........................ 2,604,377 3,087,322 12,491,433 2,774,850
----------- ----------- ------------ ------------
Net increase in net assets
resulting from operations........ 2,965,783 5,026,071 19,880,405 13,387,274
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - Class A...... -- (36,607) (1,453,968) (2,954,931)
Net investment income - Class B...... -- -- (106,173) (187,678)
Net realized gains - Class A......... (1,720,339) (673,761) (5,411,740) --
Net realized gains - Class B......... (204,065) (52,869) (505,229) --
----------- ----------- ------------ ------------
Total distributions................ (1,924,404) (763,237) (7,477,110) (3,142,609)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (a)
Class A:
Proceeds from shares sold............ 9,009,721 10,263,593 10,463,917 13,294,852
Value of distributions reinvested.... 1,703,247 696,970 6,698,071 2,837,444
Value of shares redeemed............. (2,313,957) (3,053,623) (7,985,969) (27,788,751)
----------- ----------- ------------ ------------
8,399,011 7,906,940 9,176,019 (11,656,455)
----------- ----------- ------------ ------------
Class B:
Proceeds from shares sold............ 1,410,777 1,556,469 2,266,107 2,798,462
Value of distributions reinvested.... 203,911 52,868 607,696 182,590
Value of shares redeemed............. (205,488) (183,075) (503,301) (2,096,554)
----------- ----------- ------------ ------------
1,409,200 1,426,262 2,370,502 884,498
----------- ----------- ------------ ------------
Net increase (decrease) from capital
share transactions................. 9,808,211 9,333,202 11,546,521 (10,771,957)
----------- ----------- ------------ ------------
Net increase (decrease) in net
assets........................... 10,849,590 13,596,036 23,949,816 (527,292)
NET ASSETS
Beginning of period.................. 29,242,381 15,646,345 111,171,865 111,699,157
----------- ----------- ------------ ------------
End of period+....................... $40,091,971 $29,242,381 $135,121,681 $111,171,865
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
+Includes undistributed net investment
income (deficit) of.................. $ (50,506) $ -- $ 209,884 $ 463,281
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
(a)CAPITAL SHARES ISSUED AND REDEEMED
Class A:
Sold................................. 505,086 610,878 1,386,544 1,993,525
Issued for distributions
reinvested......................... 97,719 45,613 922,410 423,434
Redeemed............................. (130,389) (187,193) (1,068,804) (4,158,047)
----------- ----------- ------------ ------------
Net increase (decrease) in Class A
capital shares outstanding......... 472,416 469,298 1,240,150 (1,741,088)
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
Class B:
Sold................................. 80,556 92,935 299,608 422,620
Issued for distributions
reinvested......................... 11,931 3,501 84,850 27,429
Redeemed............................. (12,145) (11,554) (68,322) (315,946)
----------- ----------- ------------ ------------
Net increase in Class B capital
shares outstanding................. 80,342 84,882 316,136 134,103
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
</TABLE>
See notes to financial statements
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS SERIES FUND II, INC.
1. SIGNIFICANT ACCOUNTING POLICIES--First Investors Series Fund II, Inc.
("Series Fund II"), a Maryland corporation, is registered under the Investment
Company Act of 1940 (the "1940 Act") as a diversified, open-end management
investment company. Series Fund II operates as a series fund, issuing shares of
common stock in the Growth & Income Fund, Mid-Cap Opportunity Fund and Utilities
Income Fund (each a "Fund"), and accounts separately for the assets, liabilities
and operations of each Fund. The objective of each Fund is as follows:
GROWTH & INCOME FUND seeks long-term growth of capital and current income.
MID-CAP OPPORTUNITY FUND seeks long-term
capital growth.
UTILITIES INCOME FUND primarily seeks high current income. Long-term capital
appreciation is a secondary objective.
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 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. Securities traded in the over-the-counter ("OTC") market (including
securities listed on exchanges whose primary market is believed to be OTC) are
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 if their maturities are sixty days or less. 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 Series Fund II'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 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, such taxes.
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 Mid-Cap Opportunity Fund are
declared and paid annually. Distributions from net realized capital gains are
normally declared and paid annually. Income dividends and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for capital loss carryforwards, deferral
of wash sales and amortization of deferred organization expenses.
D. Expense Allocation--Expenses directly charged or attributable to a Fund are
paid from the assets of that Fund. General expenses of Series Fund II 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
28
<PAGE>
nature of the services performed and relative applicability to each Fund.
E. Deferred Organization Expenses--Organization expenses are amortized over a
five year period. Investors purchasing shares of a Fund bear such expenses only
as they are amortized. First Investors Management Company, Inc. ("FIMCO"),
Series Fund II's investment adviser, has agreed that in the event any of the
initial Class A shares of a Fund 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 Fund being redeemed bears to the number
of initial Class A shares of the Fund outstanding at the time of redemption.
F. Repurchase Agreements--Securities pledged as collateral for repurchase
agreements are held by the Fund's custodian until maturity of the repurchase
agreement. The agreements provide that the Fund will receive, as collateral,
securities with a market value which will at all times be at least equal to 100%
of the amount invested by the Fund.
G. 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.
H. 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 aggregate amount of $24,494 against
custodian charges based on the uninvested cash balances of these Funds.
2. PURCHASES AND SALES OF SECURITIES--For the six months ended April 30, 1998,
purchases and sales of securities, excluding repurchase agreements and
short-term corporate notes, were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases of Sales
----------- -----------
<S> <C> <C>
Growth & Income Fund................... $59,024,070 $36,891,805
Mid-Cap Opportunity Fund............... 22,203,747 12,530,583
Utilities Income Fund.................. 40,387,961 38,727,991
</TABLE>
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FIRST INVESTORS SERIES FUND II, INC.
At April 30, 1998, 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>
Growth & Income Fund................... $204,478,573 $ 97,416,566 $ 1,406,331 $ 96,010,235
Mid-Cap Opportunity Fund............... 32,179,768 7,783,494 626,537 7,156,957
Utilities Income Fund.................. 105,352,055 29,700,215 1,351,728 28,348,487
</TABLE>
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
directors of Series Fund II 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 Series Fund II's individual
retirement accounts. Prior to January 1, 1998, officers and directors of Series
Fund II received no remuneration from the Funds for serving in such capacities.
Their remuneration (together with certain other expenses of the Funds) was paid
by FIMCO or FIC. Effective January 1, 1998, independent directors were
remunerated by the Funds. For the six months ended April 30, 1998, total
director fees accrued by the Funds amounted to $5,500.
The investment advisory agreement provides as compensation to FIMCO for the
Growth & Income Fund and Utilities Income Fund, an annual fee, payable monthly,
at the rate of .75% on the first $300 million of each 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. The annual fee for the Mid-Cap
Opportunity Fund is payable monthly, at the rate of 1% on the first $200 million
of the Fund's average daily net assets, .75% on the next $300 million, declining
by .03% on each $250 million thereafter, down to .66% on average daily net
assets over $1 billion. The investment adviser waived 1/4 of the 1% annual fee
of the Mid-Cap Opportunity Fund for the six months ended April 30, 1998. For the
six months ended April 30, 1998, total advisory fees accrued to FIMCO were
$1,597,742 of which $41,208 was waived. In addition, expenses of $30,000 were
assumed by FIMCO.
For the six months ended April 30, 1998, FIC, as underwriter, received
$2,383,793 in commissions from the sale of Fund shares, after allowing $9,032 to
other dealers. Shareholder servicing costs included $434,794 in transfer agent
fees accrued to ADM and $122,579 in custodian fees paid 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 daily net
assets of the Class A shares and 1% of the average daily 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 Fund. For the six
months ended April 30, 1998, total distribution plan fees accrued to FIC
amounted to $786,356.
30
<PAGE>
Prior to January 1, 1998, Wellington Management Company, LLP served as an
investment subadviser to the Growth & Income Fund. The subadviser was
paid by FIMCO and not by the Fund.
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 and certain other Class expenses) are allocated daily to
each Class of shares based upon the relative proportion of net assets of each
class. Of the 100,000,000 shares originally designated to each Fund, Series Fund
II has classified 50,000,000 shares as Class A and 50,000,000 shares as Class B
for each Fund.
31
<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>
- ---------------------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
--------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
NET ASSET -------------------------------------- FROM
VALUE NET REALIZED --------------------
--------- NET AND UNREALIZED TOTAL FROM NET NET
BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAIN DISTRIBUTIONS
- ---------------------------------------------------------------------------------------------------------------
<S> <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
11/1/93 to 10/31/94.... 6.56 .128 .109 .237 .107 -- .107
11/1/94 to 10/31/95.... 6.69 .163 1.125 1.288 .168 -- .168
11/1/95 to 10/31/96.... 7.81 .102 1.593 1.695 .115 -- .115
11/1/96 to 10/31/97.... 9.39 .060 2.359 2.419 .059 .160 .219
11/1/97 to 4/30/98..... 11.59 .020 2.309 2.329 .015 .274 .289
CLASS B
1/12/95* to 10/31/95... 6.43 .084 1.372 1.456 .106 -- .106
11/1/95 to 10/31/96.... 7.78 .066 1.555 1.621 .071 -- .071
11/1/96 to 10/31/97.... 9.33 .002 2.318 2.320 .010 .160 .170
11/1/97 to 4/30/98..... 11.48 (.012) 2.276 2.264 -- .274 .274
- ---------------------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY FUND***
CLASS A
11/1/92 to 10/31/93.... $ 11.70 $ .122 $ .373 $ .495 $ .045 $ -- $ .045
11/1/93 to 10/31/94.... 12.15 .078 (.326) (.248) .122 -- .122
11/1/94 to 10/31/95.... 11.78 .083 2.796 2.879 .079 -- .079
11/1/95 to 10/31/96.... 14.58 .042 1.564 1.606 .058 .838 .896
11/1/96 to 10/31/97.... 15.29 (.033) 4.021 3.988 .037 .681 .718
11/1/97 to 4/30/98..... 18.56 (.018) 1.497 1.479 -- 1.179 1.179
CLASS B
1/12/95* to 10/31/95... 12.03 (.011) 2.491 2.480 -- -- --
11/1/95 to 10/31/96.... 14.51 .013 1.468 1.481 .053 .838 .891
11/1/96 to 10/31/97.... 15.10 (.077) 3.888 3.811 -- .681 .681
11/1/97 to 4/30/98..... 18.23 (.068) 1.457 1.389 -- 1.179 1.179
- ---------------------------------------------------------------------------------------------------------------
UTILITIES INCOME FUND
CLASS A
2/22/93* to 10/31/93... $ 5.59 $ .118 $ .317 $ .435 $ .105 $ -- $ .105
11/1/93 to 10/31/94.... 5.92 .239 (.839) (.600) .227 .013 .240
11/1/94 to 10/31/95.... 5.08 .233 .822 1.055 .235 -- .235
11/1/95 to 10/31/96.... 5.90 .214 .512 .726 .216 -- .216
11/1/96 to 10/31/97.... 6.41 .204 .609 .813 .193 -- .193
11/1/97 to 4/30/98..... 7.03 .078 1.141 1.219 .095 .374 .469
CLASS B
1/12/95* to 10/31/95... 4.95 .144 .930 1.074 .164 -- .164
11/1/95 to 10/31/96.... 5.86 .185 .489 .674 .184 -- .184
11/1/96 to 10/31/97.... 6.35 .153 .606 .759 .149 -- .149
11/1/97 to 4/30/98..... 6.96 .058 1.127 1.185 .071 .374 .445
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations of Class A shares or date Class B shares first
offered
** Calculated without sales charges
*** Prior to December 31, 1997, known as U.S.A. Mid-Cap Opportunity Fund
+ 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
32
<PAGE>
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>
- -----------------------------------------------------------------------------------------------------------------------------------
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 NET NET PORTFOLIO AVERAGE
--------- TOTAL RETURN NET ASSETS INVESTMENT INVESTMENT TURNOVER COMMISSION
END ** END OF PERIOD EXPENSES INCOME EXPENSES INCOME RATE RATE
OF PERIOD (%) (IN THOUSANDS) (%) (%) (%) (%) (%) +++
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH & INCOME FUND
CLASS A
10/4/93* to 10/31/93... $ 6.56 .99+ $ 3,407 -- 1.02+ 1.37+ (.35)+ 0 $ --
11/1/93 to 10/31/94.... 6.69 3.67 34,489 .67 2.26 1.83 1.11 6 --
11/1/94 to 10/31/95.... 7.81 19.51 63,493 .98 2.34 1.59 1.74 19 --
11/1/95 to 10/31/96.... 9.39 21.82 111,896 1.31 1.20 1.49 1.02 25 .0530
11/1/96 to 10/31/97.... 11.59 26.20 193,832 1.39 .55 1.43 .51 28 .0532
11/1/97 to 4/30/98..... 13.63 20.42 262,025 1.40+ .34+ -- -- 15 .0558
CLASS B
1/12/95* to 10/31/95... 7.78 22.73 3,602 1.90+ 2.23+ 2.61+ 1.52+ 19 --
11/1/95 to 10/31/96.... 9.33 20.92 12,141 2.03 .48 2.19 .31 25 .0530
11/1/96 to 10/31/97.... 11.48 25.23 26,922 2.09 (.15) 2.13 (.19) 28 .0532
11/1/97 to 4/30/98..... 13.47 20.04 40,404 2.10+ (.36)+ -- -- 15 .0558
- -----------------------------------------------------------------------------------------------------------------------------------
MID-CAP OPPORTUNITY FUND***
CLASS A
11/1/92 to 10/31/93.... $ 12.15 4.23 $ 15,586 .81 .96 2.03 (.26) 52 $ --
11/1/93 to 10/31/94.... 11.78 (2.05) 7,651 .90 .45 2.32 (.97) 29 --
11/1/94 to 10/31/95.... 14.58 24.59 8,818 1.34 .48 2.36 (.55) 106 --
11/1/95 to 10/31/96.... 15.29 11.64 14,478 1.57 .36 2.15 (.21) 118 .0704
11/1/96 to 10/31/97.... 18.56 27.09 26,284 1.50 (.21) 1.94 (.65) 90 .0683
11/1/97 to 4/30/98..... 18.86 8.49 35,618 1.50+ (.20)+ 1.97+ (.67)+ 42 .0650
CLASS B
1/12/95* to 10/31/95... 14.51 20.62 298 2.29+ (.03)+ 3.79+ (1.53)+ 106 --
11/1/95 to 10/31/96.... 15.10 10.80 1,168 2.30 (.37) 3.03 (1.10) 118 .0704
11/1/96 to 10/31/97.... 18.23 26.17 2,959 2.20 (.91) 2.64 (1.35) 90 .0683
11/1/97 to 4/30/98..... 18.44 8.13 4,474 2.20+ (.90)+ 2.67+ (1.37)+ 42 .0650
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES INCOME FUND
CLASS A
2/22/93* to 10/31/93... $ 5.92 11.28+ $ 58,373 .35+ 3.84+ 1.80+ 2.39+ 17 $ --
11/1/93 to 10/31/94.... 5.08 (10.15) 62,671 .80 4.59 1.59 3.80 58 --
11/1/94 to 10/31/95.... 5.90 21.35 83,691 1.04 4.37 1.57 3.84 16 --
11/1/95 to 10/31/96.... 6.41 12.45 104,029 1.20 3.49 1.49 3.19 38 .0706
11/1/96 to 10/31/97.... 7.03 12.86 101,834 1.40 2.98 1.48 2.90 60 .0694
11/1/97 to 4/30/98..... 7.78 17.90 122,364 1.44+ 2.16+ -- -- 32 .0659
CLASS B
1/12/95* to 10/31/95... 5.86 21.99 3,209 1.82+ 4.93+ 2.53+ 4.21+ 16 --
11/1/95 to 10/31/96.... 6.35 11.61 7,670 1.91 2.77 2.28 2.40 38 .0706
11/1/96 to 10/31/97.... 6.96 12.08 9,338 2.10 2.28 2.18 2.20 60 .0694
11/1/97 to 4/30/98..... 7.70 17.57 12,757 2.14+ 1.46+ -- -- 32 .0659
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations of Class A shares or date Class B shares first
offered
** Calculated without sales charges
*** Prior to December 31, 1997, known as U.S.A. Mid-Cap Opportunity Fund
+ 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
33
<PAGE>
INDEPENDENT AUDITORS' 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 Growth & Income Fund, Mid-Cap Opportunity Fund
(formerly, U.S.A. Mid-Cap Opportunity Fund) and Utilities Income Fund
(comprising First Investors Series Fund II, Inc.), as of April 30, 1998, 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, 1998 and the year ended
October 31, 1997 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, 1998, 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 Growth
& Income Fund, Mid-Cap Opportunity Fund and Utilities Income Fund (comprising
First Investors Series Fund II, Inc.) at April 30, 1998, 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 26, 1998
34
<PAGE>
FIRST INVESTORS SERIES FUND II, INC.
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
PATRICIA D. POITRA
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
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, N.Y. 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
Eight Penn Center Plaza
Philadelphia, PA 19103
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.
35
<PAGE>
FIRST
INVESTORS
SERIES FUND II, INC.
GROWTH & INCOME FUND
MID-CAP OPPORTUNITY FUND
UTILITIES INCOME FUND
SEMI-
ANNUAL
REPORT
APRIL 30, 1998
FIRST INVESTORS SERIES FUND II, INC.
95 WALL STREET
NEW YORK, NY 10005
[LOGO]
A MEMBER OF THE
FIRST INVESTORS
FINANCIAL NETWORK
FIUSA03
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" appear in a box to the
right of a circle containing the words "MAILED FROM ZIP CODE 11201" which
appears to the right of the above language in the printed piece.
Vertically reading from bottom to top in the center of the page the words "FIRST
INVESTORS" appear in the printed piece.
