UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-4325
FIRST INVESTORS LIFE SERIES FUND
(Exact name of registrant as specified in charter)
95 Wall Street
New York, NY 10005
(Address of principal executive offices) (Zip code)
Joseph I. Benedek
First Investors Management Company, Inc.
Raritan Plaza I
Edison, NJ 08837-3620
1-732-855-2712
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
1-212-858-8000
DATE OF FISCAL YEAR END: DECEMBER 31, 2005
DATE OF REPORTING PERIOD: JUNE 30, 2005
Item 1. Reports to Stockholders
The Semi-Annual Report to Stockholders follows
[Logo: "FIRST INVESTORS"]
The words "LIFE SERIES FUND" in a rectangular blue box
across the top of the page.
BLUE CHIP
CASH MANAGEMENT
DISCOVERY
FOCUSED EQUITY
GOVERNMENT
GROWTH
HIGH YIELD
INTERNATIONAL SECURITIES
INVESTMENT GRADE
TARGET MATURITY 2007
TARGET MATURITY 2010
TARGET MATURITY 2015
VALUE
SEMI-ANNUAL REPORT
JUNE 30, 2005
Market Overview
FIRST INVESTORS LIFE SERIES FUND
Dear Investor:
We are pleased to present this Market Overview for the First Investors
Life Series Fund for the six-month period ended June 30, 2005.
The Economy
Economic growth moderated very slightly during the reporting period in
response to higher oil prices and an inventory correction in the
manufacturing sector. First quarter gross domestic product rose 3.8% and
the second quarter's growth rate is estimated to be similar. The
unemployment rate declined from 5.4% to 5%. Reflecting high levels of
productivity and global competition, inflation declined, as measured by
the consumer price index, from a 3.3% annual rate at the end of 2004 to
2.5%. Excluding the volatile food and energy sectors, the consumer price
index was even lower at 2%.
The Federal Reserve ("the Fed") continued to tighten monetary policy at a
measured pace, raising the benchmark federal funds rate four times from
2-1/4% to 3-1/4%. While inflation currently is low, the Fed felt rate
increases were needed to preempt potential future inflation.
In response to the Fed's tightening of monetary policy, short-term
interest rates rose notably. As measured by the two-year U.S. Treasury
note, yields increased from 3.07% to 3.64%. Surprisingly, long-term
interest rates fell during the reporting period. Ten-year Treasury note
yields declined from 4.22% to 3.92%. Several factors contributed to lower
long-term interest rates: strong global demand for U.S. bonds, low and
stable inflation, confidence in the Fed's inflation-fighting ability, and
the perception of potentially slower U.S. and foreign economic growth.
The Equity Market
Equity returns were lackluster for the reporting period, despite a
seemingly solid economic backdrop. Upbeat quarterly corporate profit
growth, with results exceeding expectations, a resurgence in mergers and
acquisition activity, and continued corporate balance sheet improvements
were all characteristics of the period under review. However, worries over
surging energy costs, with crude oil breaking $60 a barrel, and continued
short-term interest rate rises, coupled with companies' limited pricing
power and anemic new job creation have worked to put a lid on investor
enthusiasm. The broad market averages struggled during the six month
period, with all major indices in the red. The S&P 500 was down 0.81% and
the Dow Jones Industrials was off 4.7%. The more speculative
technology-driven Nasdaq-OTC Composite was down 5.5%. Small-cap stocks
underperformed their larger counterparts during the first part of 2005,
with the Russell 2000 down 1.8%. Despite the Fed's statements from June 30,
Market Overview (continued)
FIRST INVESTORS LIFE SERIES FUND
2005 that "the expansion remains firm," and that "longer term
inflation expectations remain contained," the equity markets remained
unenthusiastic in their response.
The Bond Market
Bond market returns were solid for the reporting period, driven by the
decline in long-term interest rates. U.S. government bonds provided the
best returns, reflecting their high degree of interest rate sensitivity.
Investment grade corporate bonds trailed the government sector by a small
margin as spreads widened in response to increased event risk for
corporate issuers (such as mergers and acquisitions, and leveraged
buy-outs). The mortgage-backed sector had moderate returns as the benefit
of lower interest rates was partially offset by heightened prepayment risk
and the flatter yield curve. The high-yield corporate bond sector was the
weakest sector as earnings problems at General Motors and heightened event
risk triggered a repricing of the market.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
\S\ Edwin D. Miska \S\ Clark D. Wagner
Edwin D. Miska Clark D. Wagner
Director of Equities Director of Fixed Income
First Investors Management First Investors Management
Company, Inc. Company, Inc.
July 29, 2005
The Funds are only available through the purchase of variable life
insurance policies and variable annuity contracts issued by First
Investors Life Insurance Company. The reports do not reflect the
additional expenses and charges that are applicable to variable life
insurance policies and variable annuity contracts.
This Market Overview is not part of the Funds' financial report and is
submitted for the general information of the shareholders of the Funds. It
is not authorized for distribution to prospective investors in the Funds
unless preceded or accompanied by an effective prospectus. The Market
Overview reflects conditions through the end of the period as stated on
the cover. Market conditions are subject to change. This Market Overview
may not be relied on as investment advice or an indication of current or
future trading intent on behalf of any Fund.
There are a variety of risks associated with investing in mutual funds.
For stock funds, the risks include market risk (the risk that the entire
stock market will decline because of an event such as a deterioration in
the economy or a rise in interest rates), as well as special risks
associated with investing in certain types of stock funds, such as
small-cap, global and international funds. For bond funds, the risks
include interest rate risk and credit risk. Interest rate risk is the risk
that bonds will decrease in value as interest rates rise. As a general
matter, longer-term bonds fluctuate more than shorter-term bonds in
reaction to changes in interest rates. Credit risk is the risk that bonds
will decline in value as the result of a decline in the credit rating of
the bonds or the economy as a whole, or that the issuer will be unable to
pay interest and/or principal when due. You should consult your prospectus
for a precise explanation of the risks associated with your fund.
Understanding Your Fund's Expenses
FIRST INVESTORS LIFE SERIES FUND
As a mutual fund shareholder, you incur two types of costs: (1)
transaction costs, and (2) ongoing costs, including advisory fees and
other expenses. These Examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Funds and to compare these
costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 in each Fund at the
beginning of the period, January 1, 2005, and held for the entire
six-month period ended June 30, 2005. The calculations assume that no
shares were bought or sold during the period. Your actual costs may have
been higher or lower, depending on the amount of your investment and the
timing of any purchases or redemptions.
Actual Expenses Example:
These amounts help you to estimate the actual expenses that you paid over
the period. The "Ending Account Value" shown is derived from the Fund's
actual return, and the "Expenses Paid During Period" shows the dollar
amount that would have been paid by an investor who started with $1,000
in the Fund. You may use the information here, together with the amount
you invested, to estimate the expenses that you paid during the period.
To estimate the expenses you paid on your account during this period
simply divide your ending account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60), then multiply the result by the
number given for your Fund under the heading "Expenses Paid During
Period".
Hypothetical Expenses Example:
These amounts provide information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
and help you compare your ongoing costs only and do not reflect any
transaction costs. Therefore, the hypothetical expense example is useful
in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transaction costs were included, your costs would have been higher.
Board Considerations of Advisory Contracts and Fees
FIRST INVESTORS LIFE SERIES FUND
At a meeting held on May 19, 2005 ("May Meeting"), the Board of Trustees
("Board") of First Investors Life Series Fund ("Trust"), including a
majority of the non-interested or independent Trustees, approved the
renewal of the investment advisory agreement ("Advisory Agreement")
between First Investors Management Company, Inc. ("FIMCO") and the Trust
on behalf of each of the following funds (each, a "Fund" and collectively,
the "Funds"): Blue Chip Fund, Growth Fund, Focused Equity Fund, Discovery
Fund, Value Fund, International Securities Fund, High Yield Fund,
Investment Grade Fund, Government Fund, Cash Management Fund, Target
Maturity 2007 Fund, Target Maturity 2010 Fund and Target Maturity 2015
Fund. In addition, at the May Meeting, the Board, including a majority of
non-interested Trustees, approved the renewal of the sub-advisory
agreement ("Sub-Advisory Agreement") between FIMCO and Wellington
Management Company, LLP ("WMC") with respect to the Growth Fund, Focused
Equity Fund and International Securities Fund (collectively, the
"Sub-Advised Funds"). In reaching its decisions, the Board reviewed and
considered information furnished and discussed throughout the year at
regularly scheduled Board meetings as well as information provided
specifically in relation to the renewal of the Advisory Agreement and
Sub-Advisory Agreement for the May Meeting.
Information furnished at Board meetings throughout the year included
FIMCO's analysis of each Fund's investment performance, presentations
given by FIMCO's Director of Equities and Director of Fixed Income, and
representatives of WMC, and various reports on compliance and other
services provided by FIMCO. In response to specific requests from the
independent Trustees in connection with the May Meeting, FIMCO furnished,
and the Board reviewed, information concerning a variety of aspects of its
operations, including: (1) the nature, extent and quality of services
provided by FIMCO to the Funds, including investment advisory and
administrative services; (2) the investment performance of each Fund,
including comparisons to a group of mutual funds based on the category
assigned to the Fund, and data published, by Lipper, Inc. ("Peer Group");
(3) the management fees paid by each Fund and total expense ratios of each
Fund compared to the management fees and total expense ratios of each
Fund's Peer Group to the extent available; (4) the costs of providing
services to each Fund and the profits realized by FIMCO from the
relationship with each Fund and, with respect to the Sub-Advised Funds,
the fact that FIMCO pays WMC a sub-advisory fee for its services to those
Funds out of the advisory fee received by FIMCO; and (5) any "fall out" or
ancillary benefits enjoyed by FIMCO as a result of the relationship with
each Fund. In addition to evaluating, among other things, the written
information provided by FIMCO, the Board also evaluated the answers to
questions posed by the Board to representatives of FIMCO at the May
Meeting.
Board Considerations of Advisory Contracts and Fees (continued)
FIRST INVESTORS LIFE SERIES FUND
In addition, in response to specific requests from the independent
Trustees in connection with the May Meeting, WMC furnished, and the Board
reviewed, information concerning a variety of aspects of its operations,
including: (1) the nature, extent and quality of services provided by WMC
to the Sub-Advised Funds; (2) the investment performance of each
Sub-Advised Fund, including comparisons to each Fund's Peer Group; (3) the
sub-advisory fee rates charged by WMC, a comparison of those fee rates to
fee rates charged by WMC for providing sub-advisory services to other
investment companies or accounts, as applicable, with objectives similar
to the Sub-Advised Funds and a comparison of the fee rates charged by
other sub-advisers to investment companies in the same Peer Group as the
Sub-Advised Funds; (4) the overall profitability of WMC; and (5) any "fall
out" or ancillary benefits enjoyed by WMC as a result of the relationship
with each Sub-Advised Fund.
In considering the information and materials described above, the
independent Trustees received assistance from and met separately with
independent counsel. Although the Advisory Agreement for all of the Funds
and the Sub-Advisory Agreement for the Sub-Advised Funds were considered
at the same Board meeting, the Trustees addressed each Fund separately
during the May Meeting. In view of the broad scope and variety of factors
and information, the Trustees did not find it practicable to, and did not,
assign relative weights to the specific factors considered in reaching
their conclusions and determinations to approve the continuance of the
Advisory Agreement and Sub-Advisory Agreement. Rather, the approval
determinations were made on the basis of each Trustee's business judgment
after consideration of all of the factors taken in their entirety.
Although not meant to be all-inclusive, the following discusses some of
the factors relevant to the Board's decisions to approve the continuance
of the Advisory Agreement and Sub-Advisory Agreement.
Nature, Extent and Quality of Services
In examining the nature, extent and quality of the services provided by
FIMCO, the Board recognized that FIMCO is dedicated to providing
investment management services exclusively to the Funds and the other
funds in the First Investors fund complex and that, unlike many other
mutual fund managers, FIMCO does not provide management services to hedge
funds, pension funds or separately managed accounts. As a result, the
Trustees considered that FIMCO's personnel devote substantially all of
their time to serving the funds in the First Investors fund complex, and
emphasized that FIMCO's senior management sets a tone for the organization
that is aimed at the protection of Fund shareholders and that this focus
permeates the entire organization. The Board noted that FIMCO has
undertaken extensive responsibilities as manager of the Funds, including:
(i) the provision of investment advice to the Funds; (ii) implementing
policies and procedures designed to ensure compliance with each
Fund's investment objectives and policies; (iii) the review of brokerage
arrangements; (iv) oversight of general portfolio compliance with
applicable laws; (v) the provision of certain administrative services to
the Funds, including fund accounting; and (vi) the implementation of Board
directives as they relate to the Funds. The Board also acknowledged that
FIMCO has devoted substantial time and resources to ensure that the Funds
and FIMCO are in compliance with a wide array of new regulatory
initiatives that have been aimed at mutual funds and their service
providers. With regard to compliance, the Board noted that FIMCO's and
the Funds' overall compliance records were good. The Board also noted that
FIMCO had made changes to portfolio managers, strengthened portfolio
manager teams and added to its in-house research and analytical
capabilities in response to previous discussions with the Board.
Furthermore, the Board considered the nature, extent and quality of the
investment management services provided by WMC to the Sub-Advised Funds
over both the short and long term and the organizational depth and
stability of WMC.
Based on the totality of the information considered, the Trustees
concluded that the Funds were likely to benefit from the nature, extent
and quality of FIMCO's and WMC's services, as applicable, and that FIMCO
and WMC have the ability to continue to provide these services based on
their respective experience, operations and resources.
Investment Performance
The Board placed significant emphasis on the investment performance of
each of the Funds. While consideration was given to performance reports
and discussions held at prior Board meetings, particular attention was
given to the performance reports prepared by FIMCO and WMC specifically
for the May Meeting. In particular, the Trustees reviewed the performance
of the Funds for each of the past five calendar years and gave more weight
to each Fund's performance over the most recent calendar year ("1-year
period") and average performance over the most recent three calendar year
period ("3-year period"). In this regard, the Board considered the
performance of each Fund on a percentile and quintile basis as compared to
its Peer Group (except for the Target Maturity Funds). In reviewing this
data, the Board particularly focused on whether a Fund's performance was
in the top three quintiles versus the Fund's Peer Group for the 3-year
period. For each Target Maturity Fund, the Board considered the
performance of such Funds as compared to their respective benchmarks. On a
Fund-by-Fund basis, the performance reports indicated, and the Board
noted, that:
* Blue Chip Fund and Growth Fund were in the third quintile of their
respective Peer Group for both the 1-year period and 3-year period. In
addition, the Board considered the fact that a new portfolio manager had
been assigned to the Blue Chip Fund in May of 2005 and considered this to
be a favorable development.
Board Considerations of Advisory Contracts and Fees (continued)
FIRST INVESTORS LIFE SERIES FUND
* Discovery Fund was in the second highest quintile of its Peer Group for
the 1-year period and the third quintile for the 3-year period. The Board
also considered the recent appointment of a sub-adviser for this Fund,
Paradigm Capital Management, Inc., to enhance performance.
* Value Fund and International Securities Fund were in the highest
quintile of their respective Peer Group for the 1-year period and the
second highest quintile for the 3-year period.
* High Yield Fund was in the third quintile of its Peer Group for the
1-year period and the second highest quintile for the 3-year period.
* Government Fund and Cash Management Fund were in the second highest
quintile of their respective Peer Group for both the 1-year period and
3-year period.
* Investment Grade Fund was in the third quintile of its Peer Group for
the 3-year period, although its more recent 1-year period performance was
not as favorable.
With regard to Focused Equity Fund, the performance report showed that the
Fund was in the fourth quintile of its Peer Group for both the 1-year
period and 3-year period. However, in reviewing the Focused Equity Fund's
performance compared to its Peer Group, the Board noted that the Fund had
above average returns for two of the last five calendar years.
Furthermore, the Board noted that WMC had assigned a new portfolio manager
for the Fund on August 31, 2002 and that the Fund's performance since that
time through March 31, 2005 fell within the second highest quintile of its
Peer Group. The Board was encouraged by the Fund's performance over this
time period; considered the recent shift in strategy with regard to the
market capitalization of the Fund's portfolio securities to be a positive
development; and expressed confidence in the current portfolio manager.
The Board also expressed its intention to continue to closely monitor the
Fund's performance in concert with FIMCO.
With regard to Target Maturity 2007 Fund, Target Maturity 2010 Fund and
Target Maturity 2015 Fund, the Board was provided with, and considered,
each of these Funds' performance as compared to its respective benchmark
index for each of the past five calendar years. The Board noted that:
* Target Maturity 2007 Fund had outperformed its benchmark index in three
out of the past five calendar years, although the performance for the most
recent two calendar years was not as favorable.
* Target Maturity 2010 Fund and Target Maturity 2015 Fund had outperformed
their respective benchmark index in four out of the past five calendar
years.
Fund Expenses, Costs of Services, Economies of Scale and Related Benefits
Management Fees and Expenses. The Board gave substantial consideration to
the fees payable under the Advisory Agreement for each Fund as well as
under the Sub-Advisory Agreement for the Sub-Advised Funds. The Board
reviewed reports prepared by FIMCO comparing each Fund's effective
management fee rates, operating expense ratios, and total expense ratios
to its Peer Group to the extent such Peer Group information was available.
The Board also noted the effect of the management fee waivers in place for
the following Funds during the periods presented: Government Fund,
Investment Grade Fund, Target Maturity 2007 Fund, Target Maturity 2010
Fund, Target Maturity 2015 Fund and Cash Management Fund. With regard to
the effective management fee rates for the 2004 fiscal year, on a
Fund-by-Fund basis, the Board noted that:
* The level of management fee rate for International Securities Fund was
equivalent to its Peer Group median.
* The level of management fee rate for Discovery Fund was significantly
lower than its Peer Group median. The recent appointment of Paradigm
Capital Management, Inc. as sub-adviser of the Fund is at a substantial
expense to FIMCO.
* The level of management fee rates for Blue Chip Fund, Growth Fund,
Focused Equity Fund, Value Fund, High Yield Fund, Investment Grade Fund,
Government Fund and Cash Management Fund, taking into account the fee
waivers (as applicable), were higher than their respective Peer Group
median.
With regard to Target Maturity 2007 Fund, Target Maturity 2010 Fund and
Target Maturity 2015 Fund, Peer Group management fee information was not
available. However, the Board noted the fact that FIMCO had waived its
management fee for each of these Funds to the extent management fees
exceeded certain percentage levels for the periods presented.
In considering the sub-advisory fee rates charged by and costs and
profitability of WMC with regard to the Sub-Advised Funds, the Board noted
that FIMCO pays WMC a sub-advisory fee from its own advisory fee rather
than each Fund paying WMC a fee directly. WMC provided, and the Board
reviewed, information comparing the fees charged by WMC for services to
the Sub-Advised Funds versus the fees charged by WMC to other comparable
investment companies or accounts, as applicable, as well as a comparison
of fees charged by other sub-advisers to investment companies in the same
Peer Group as the Sub-Advised Funds. Based on a review of this
information, the Board noted that the fees charged by WMC for services to
each Sub-Advised Fund appeared comparable to the fees WMC charges to such
other investment companies or accounts after taking into consideration the
assets under
Board Considerations of Advisory Contracts and Fees (continued)
FIRST INVESTORS LIFE SERIES FUND
management by WMC for each of the Sub-Advised Funds and that
the fees charged by WMC appeared comparable to fees charged by other
sub-advisers to investment companies in the same Peer Group as the
Sub-Advised Funds.
With regard to overall expense ratios, the Board noted that each Fund's
(except for Target Maturity 2007 Fund, Target Maturity 2010 Fund and
Target Maturity 2015 Fund) total expense ratio for the most recent
calendar year, taking into account FIMCO's expense limitations (as
applicable), was lower than the median of its respective Peer Group.
Although Peer Group expense ratio information was not available for Target
Maturity 2007 Fund, Target Maturity 2010 Fund and Target Maturity 2015
Fund, the Board noted, after taking into account FIMCO's expense
limitations, that the overall expense ratio of the Target Maturity 2010
Fund and Target Maturity 2015 Fund had declined from the prior two
calendar years and that Target Maturity 2007 Fund's overall expense ratio
remained substantially consistent over the past three calendar years.
Profitability. The Board reviewed the materials it received from FIMCO
regarding its revenues and costs in providing investment management and
certain administrative services to the Funds. In particular, the Board
considered the detailed analysis of FIMCO's profitability with respect to
each Fund, calculated for the year ended December 31, 2004, as well as
profitability information relating to the past five calendar years. The
Board also considered FIMCO's expectation that its fixed costs will
increase in the future due to, among other things, new regulatory
requirements. In reviewing the profitability information, the Trustees
also considered the "fall-out" or ancillary benefits that may accrue to
FIMCO as a result of its relationship with the Funds, which are discussed
below. The Trustees recognized that, as a business matter, FIMCO was
entitled to earn reasonable profits for its services to the Funds.
Economies of Scale. With respect to whether economies of scale are
realized by FIMCO as a Fund's assets increase and the extent to which any
economies of scale are reflected in the level of management fees charged,
the Board considered that the Advisory Agreement for each Fund currently
includes "breakpoints" (i.e., reductions in the management fee rate as
assets increase) to account for management economies of scale. The Board
recognized that, although these Funds have not reached a size at which
they can take advantage of the breakpoints contained in their fee
schedule, each schedule is structured so that when the assets of these
Funds grow, economies of scale may be shared for the benefit of
shareholders.
"Fall Out" or Ancillary Benefits. The Board considered the "fall-out" or
ancillary benefits that may accrue to FIMCO and WMC as a result of their
relationship with the Funds. In that regard, the Board noted that FIMCO
and WMC engage in soft dollar transactions and that the Funds' brokerage
transactions may be directed to
certain brokers to obtain research and other services, which may be used
in servicing all funds in the First Investors fund complex or other
clients of WMC, as applicable. However, the Board noted that FIMCO and WMC
must select brokers based on each Fund's requirements for seeking best
execution. After review of this information, the Board concluded that the
benefits accruing to FIMCO and WMC by virtue of their relationship to the
applicable Funds are fair and reasonable.
After evaluation of the comparative performance, fee and expense
information and the profitability, ancillary benefits and other
considerations as described above, and in light of the nature, extent and
quality of services, including any applicable non-management services, to
be provided by FIMCO and WMC, the Board concluded that the level of fees
paid to FIMCO with respect to each Fund and WMC with respect to each
Sub-Advised Fund is reasonable.
* * *
In summary, based on the various considerations discussed above, the Board
determined that approval of the Advisory Agreement with respect to each
Fund and the Sub-Advisory Agreement with respect to each Sub-Advised Fund
was in the best interests of the applicable Fund. As a result, the Board,
including a majority of the independent Trustees, approved the Advisory
Agreement and Sub-Advisory Agreement.
Fund Expenses
FIRST INVESTORS LIFE BLUE CHIP FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $991.84 $4.10
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.67 $4.16
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .83%, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
BAR CHART DATA]
Financials 18.0%
Information Technology 16.2%
Health Care 13.3%
Industrials 12.6%
Consumer Discretionary 12.0%
Consumer Staples 9.8%
Energy 7.9%
Telecomunication Services 2.6%
Materials 2.5%
Utilities 1.5%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--96.9%
Consumer Discretionary--12.1%
7,800 Best Buy Company, Inc. $534,690 $31
11,500 Carnival Corporation 627,325 37
14,400 Clear Channel Communications, Inc. 445,392 26
25,914 * Comcast Corporation - Class "A" 795,560 46
18,100 * Comcast Corporation - Special Class "A" 542,095 32
19,700 Eastman Kodak Company 528,945 31
13,500 * eBay, Inc. 445,635 26
35,800 Gap, Inc. 707,050 41
51,400 Hilton Hotels Corporation 1,225,890 72
47,200 Home Depot, Inc. 1,836,080 107
17,900 * Kohl's Corporation 1,000,789 58
16,300 Lowe's Companies, Inc. 948,986 55
36,700 McDonald's Corporation 1,018,425 59
56,400 News Corporation, Inc. - Class "A" 912,552 53
11,900 NIKE, Inc. - Class "B" 1,030,540 60
44,200 * Office Depot, Inc. 1,009,528 59
26,200 Target Corporation 1,425,542 83
89,700 * Time Warner, Inc. 1,498,887 87
19,200 TJX Companies, Inc. 467,520 27
14,700 Tribune Company 517,146 30
44,800 Viacom, Inc. - Class "B" 1,434,496 84
48,300 Walt Disney Company 1,216,194 71
10,400 Yum! Brands, Inc. 541,632 32
- ----------------------------------------------------------------------------------------------------------------------
20,710,899 1,207
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.9%
28,900 Altria Group, Inc. 1,868,674 109
9,300 Anheuser-Busch Companies, Inc. 425,475 25
50,900 Coca-Cola Company 2,125,075 124
19,700 Coca-Cola Enterprises, Inc. 433,597 25
7,600 Corn Products International, Inc. 180,576 11
13,200 Costco Wholesale Corporation 591,624 34
34,400 CVS Corporation 1,000,008 58
12,100 General Mills, Inc. 566,159 33
6,600 Gillette Company 334,158 19
9,200 Hershey Company 571,320 33
19,900 Kimberly-Clark Corporation 1,245,541 73
36,800 PepsiCo, Inc. 1,984,624 116
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
39,900 Procter & Gamble Company $2,104,725 $123
19,700 Walgreen Company 906,003 53
52,900 Wal-Mart Stores, Inc. 2,549,780 149
- ----------------------------------------------------------------------------------------------------------------------
16,887,339 985
- ----------------------------------------------------------------------------------------------------------------------
Energy--8.0%
14,400 BP PLC (ADR) 898,272 52
52,900 Chevron Corporation 2,958,168 173
20,000 ConocoPhillips 1,149,800 67
16,700 Devon Energy Corporation 846,356 49
73,200 ExxonMobil Corporation 4,206,804 245
20,300 Halliburton Company 970,746 57
14,900 Schlumberger, Ltd. 1,131,506 66
19,900 * Transocean, Inc. 1,074,003 63
5,400 Valero Energy Corporation 427,194 25
- ----------------------------------------------------------------------------------------------------------------------
13,662,849 797
- ----------------------------------------------------------------------------------------------------------------------
Financials--18.1%
19,500 ACE, Ltd. 874,575 51
21,000 Allstate Corporation 1,254,750 73
30,100 American Express Company 1,602,223 93
34,200 American International Group, Inc. 1,987,020 116
66,514 Bank of America Corporation 3,033,704 177
42,300 Bank of New York Company, Inc. 1,217,394 71
250 * Berkshire Hathaway, Inc. - Class "B" 695,875 41
19,700 Capital One Financial Corporation 1,576,197 92
10,400 Chubb Corporation 890,344 52
89,500 Citigroup, Inc. 4,137,585 241
10,400 Fannie Mae 607,360 35
14,500 Freddie Mac 945,835 55
10,700 Goldman Sachs Group, Inc. 1,091,614 64
60,132 JPMorgan Chase & Company 2,123,862 124
14,500 Marsh & McLennan Companies, Inc. 401,650 23
40,700 MBNA Corporation 1,064,712 62
20,500 Merrill Lynch & Company, Inc. 1,127,705 66
29,000 Morgan Stanley 1,521,630 89
21,300 New York Community Bancorp, Inc. 385,956 22
2,600 U.S. Bancorp 75,920 4
23,200 UnumProvident Corporation 425,024 25
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
24,400 Wachovia Corporation $1,210,240 $70
25,200 Washington Mutual, Inc. 1,025,388 60
25,000 Wells Fargo & Company 1,539,500 90
6,600 Willis Group Holdings, Ltd. 215,952 13
- ----------------------------------------------------------------------------------------------------------------------
31,032,015 1,809
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.4%
33,500 Abbott Laboratories 1,641,835 96
12,200 Aetna, Inc. 1,010,404 59
37,200 * Amgen, Inc. 2,249,112 131
34,300 * Boston Scientific Corporation 926,100 54
64,500 Bristol-Myers Squibb Company 1,611,210 94
6,400 * Coventry Health Care, Inc. 452,800 26
56,600 Johnson & Johnson 3,679,000 214
29,300 Medtronic, Inc. 1,517,447 88
25,400 Merck & Company, Inc. 782,320 46
35,200 Novartis AG (ADR) 1,669,888 97
144,140 Pfizer, Inc. 3,975,381 232
13,200 Teva Pharmaceutical Industries, Ltd. (ADR) 411,048 24
9,600 * Triad Hospitals, Inc. 524,544 31
29,200 UnitedHealth Group, Inc. 1,522,488 89
21,900 Wyeth 974,550 57
- ----------------------------------------------------------------------------------------------------------------------
22,948,127 1,338
- ----------------------------------------------------------------------------------------------------------------------
Industrials--12.6%
17,300 3M Company 1,250,790 73
15,800 Boeing Company 1,042,800 61
15,700 Caterpillar, Inc. 1,496,367 87
41,200 Cendant Corporation 921,644 54
12,000 Dover Corporation 436,560 25
13,600 Emerson Electric Company 851,768 50
145,500 General Electric Company 5,041,575 294
19,700 Honeywell International, Inc. 721,611 42
13,900 ITT Industries, Inc. 1,357,057 79
21,400 Lockheed Martin Corporation 1,388,218 81
26,300 Masco Corporation 835,288 49
15,200 Northrop Grumman Corporation 839,800 49
49,800 Tyco International, Ltd. 1,454,160 85
13,200 Union Pacific Corporation 855,360 50
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
13,500 United Parcel Service, Inc. - Class "B" $933,660 $54
43,600 United Technologies Corporation 2,238,860 130
- ----------------------------------------------------------------------------------------------------------------------
21,665,518 1,263
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--16.2%
19,400 * Accenture, Ltd. - Class "A" 439,798 26
12,500 Analog Devices, Inc. 466,375 27
8,000 * Apple Computer, Inc. 294,480 17
27,900 Applied Materials, Inc. 451,422 26
23,900 * ASML Holding NV - NY Shares 374,274 22
10,700 Automatic Data Processing, Inc. 449,079 26
106,800 * Cisco Systems, Inc. 2,040,948 119
48,700 * Corning, Inc. 809,394 47
51,700 * Dell, Inc. 2,042,667 119
121,400 * EMC Corporation 1,664,394 97
33,800 First Data Corporation 1,356,732 79
40,100 Hewlett-Packard Company 942,751 55
114,800 Intel Corporation 2,991,688 174
23,500 International Business Machines Corporation 1,743,700 102
180,600 Microsoft Corporation 4,486,104 262
48,800 Motorola, Inc. 891,088 52
39,500 National Semiconductor Corporation 870,185 51
59,000 Nokia Corporation - Class "A" (ADR) 981,760 57
70,100 * Oracle Corporation 925,320 54
14,500 QUALCOMM, Inc. 478,645 28
33,000 * SanDisk Corporation 783,090 46
26,600 * Sybase, Inc. 488,110 29
39,300 Texas Instruments, Inc. 1,103,151 64
21,100 * Veritas Software Corporation 514,840 30
19,700 * Xerox Corporation 271,663 16
- ----------------------------------------------------------------------------------------------------------------------
27,861,658 1,625
- ----------------------------------------------------------------------------------------------------------------------
Materials--2.5%
21,000 Alcoa, Inc. 548,730 32
19,016 Cemex SA de CV (ADR) 806,659 47
23,700 Dow Chemical Company 1,055,361 61
15,900 DuPont (E.I.) de Nemours & Company 683,859 40
23,800 International Paper Company 718,998 42
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials (continued)
6,700 Newmont Mining Corporation $261,501 $15
2,700 Phelps Dodge Corporation 249,750 15
- ----------------------------------------------------------------------------------------------------------------------
4,324,858 252
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.6%
42,700 * Nextel Communications, Inc. - Class "A" 1,379,637 81
49,200 SBC Communications, Inc. 1,168,500 68
20,100 Sprint Corporation 504,309 29
39,100 Verizon Communications, Inc. 1,350,905 79
- ----------------------------------------------------------------------------------------------------------------------
4,403,351 257
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.5%
58,300 Duke Energy Corporation 1,733,259 101
27,100 ONEOK, Inc. 884,815 52
- ----------------------------------------------------------------------------------------------------------------------
2,618,074 153
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $129,082,179) 166,114,688 9,686
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--3.5%
$5,100M ChevronTexaco Funding Corp., 3.02%, 7/5/05 5,098,287 297
1,000M General Electric Capital Corp., 3.2%, 7/13/05 998,933 58
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $6,097,220) 6,097,220 355
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $135,179,399) 100.4% 172,211,908 10,041
Excess of Liabilities Over Other Assets (.4) (704,860) (41)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $171,507,048 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,009.43 $3.49
Hypothetical
(5% annual return before expenses) $1,000.00 $1,021.32 $3.51
- -----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .70%, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period). Expenses paid during the period are net
of expenses waived.
Portfolio Composition
BY SECTOR
[BAR CHART DATA]
Corporate Notes 39.9%
U.S. Government Agency Obligations 37.6%
Floating Rate Notes 14.0%
Bankers' Acceptances 8.5%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES--39.7%
$250M ChevronTexaco Funding Corp., 7/20/05 3.17% $249,581 $385
250M Colgate-Palmolive Co., 7/29/05+ 3.22 249,374 385
125M General Electric Capital Corp., 7/7/05 3.20 124,933 193
250M Hewlett-Packard Co., 7/29/05+ 3.23 249,372 385
200M Illinois Tool Works, Inc., 7/27/05 3.19 199,539 308
250M International Business Machines Corp.,
7/11/05 3.01 249,791 385
250M Madison Gas & Electric Co., 7/25/05 3.23 249,462 385
250M McGraw-Hill Cos. Inc., 7/8/05 3.01 249,853 385
250M PepsiCo, Inc., 7/13/05+ 3.07 249,744 385
250M Toyota Motor Credit Corp., 7/8/05 3.12 249,848 385
250M Wal-Mart Stores, Inc., 7/19/05+ 3.11 249,611 385
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $2,571,108) 2,571,108 3,966
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--37.4%
Fannie Mae:
26M 7/13/05 3.50 25,970 40
275M 8/5/05 2.90 274,717 424
115M 4/28/06 3.69 113,547 175
Federal Farm Credit Bank:
85M 7/26/05 3.50 84,792 131
72M 8/3/05 3.50 71,768 111
Federal Home Loan Bank:
400M 7/6/05 2.99 399,834 617
200M 7/19/05 2.25 200,000 309
50M 8/15/05 2.90 50,240 78
150M 11/4/05 2.53 149,991 231
20M 11/15/05 3.15 20,244 31
185M 11/15/05 2.52 184,975 285
50M 11/17/05 3.37 49,775 77
65M 1/20/06 3.55 64,584 100
65M 1/20/06 3.55 64,584 100
50M 1/23/06 3.70 49,458 76
100M 3/13/06 3.31 99,444 154
70M 4/7/06 3.78 69,590 107
100M 6/30/06 3.75 100,000 154
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
Freddie Mac:
$200M 12/8/05 3.07% $202,530 $312
150M 4/28/06 3.56 148,944 230
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $2,424,987) 2,424,987 3,742
- ----------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--13.9%
300M Federal Farm Credit Bank, 9/1/05 3.24 300,041 463
Federal Home Loan Bank:
300M 10/5/05 3.00 299,947 463
100M 5/24/06 3.20 100,000 154
200M Merrill Lynch & Co., 4/18/06 3.43 200,498 309
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $900,486) 900,486 1,389
- ----------------------------------------------------------------------------------------------------------------------
BANKERS' ACCEPTANCES--8.4%
250M Bank of America, NA, 7/18/05 3.14 249,629 385
296M JPMorgan Chase & Co., 7/15/05 3.16 295,642 456
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Bankers' Acceptances (cost $545,271) 545,271 841
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $6,441,852)++ 99.4% 6,441,852 9,938
Other Assets, Less Liabilities .6 40,472 62
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $6,482,324 $10,000
======================================================================================================================
* The interest rates shown are the effective rates at the time of purchase
by the Fund. The interest rates shown on floating rate notes are adjusted
periodically: the rates shown are the rates in effect at June 30, 2005.
+ Security exempt from registration under Secton 4(2) of the Securities
Act of 1933 (see Note 5)
++ Aggregate cost for federal income tax purposes is the same.
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE DISCOVERY FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.41 $4.51
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.28 $4.56
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .91%, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Industrials 20.5%
Information Technology 19.1%
Consumer Discretionary 11.6%
Health Care 10.7%
Energy 8.6%
Consumer Staples 7.3%
Utilities 6.3%
Financials 5.4%
Telecomunication Services 4.8%
Materials 1.4%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--95.6%
Consumer Discretionary--11.6%
45,400 Arbitron, Inc. $1,947,660 $148
70,500 Catalina Marketing Corporation 1,791,405 136
75,600 Dillard's, Inc. - Class "A" 1,770,552 134
66,500 Foot Locker, Inc. 1,810,130 137
109,800 Journal Communications, Inc. 1,844,640 140
60,100 Matthews International Corporation - Class "A" 2,341,496 177
29,600 Media General, Inc. - Class "A" 1,916,896 145
41,400 Sherwin-Williams Company 1,949,526 148
- ----------------------------------------------------------------------------------------------------------------------
15,372,305 1,165
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--7.3%
58,300 Chiquita Brands International, Inc. 1,600,918 121
54,400 Church & Dwight Co., Inc. 1,969,280 150
65,000 Flowers Foods, Inc. 2,298,400 174
45,200 Lancaster Colony Corporation 1,939,984 147
61,812 Tootsie Roll Industries, Inc. 1,808,001 137
- ----------------------------------------------------------------------------------------------------------------------
9,616,583 729
- ----------------------------------------------------------------------------------------------------------------------
Energy--8.6%
33,000 Ashland, Inc. 2,371,710 180
90,900 Chesapeake Energy Corporation 2,072,520 157
14,400 Kerr-McGee Corporation 1,098,864 83
30,900 Overseas Shipholding Group, Inc. 1,843,185 139
44,100 * Swift Energy Company 1,579,662 120
50,400 Tesoro Corporation 2,344,608 178
- ----------------------------------------------------------------------------------------------------------------------
11,310,549 857
- ----------------------------------------------------------------------------------------------------------------------
Financials--5.4%
65,500 Commerce Bancorp, Inc. 1,985,305 150
29,200 HCC Insurance Holdings, Inc. 1,105,804 84
98,500 MoneyGram International, Inc. 1,883,320 143
37,100 U.S.B. Holding Company, Inc. 868,140 66
24,500 Westcorp, Inc. 1,284,290 97
- ----------------------------------------------------------------------------------------------------------------------
7,126,859 540
- ----------------------------------------------------------------------------------------------------------------------
Health Care--10.7%
79,900 * AmSurg Corporation 2,212,431 168
246,500 * BioScrip, Inc. 1,479,000 112
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
57,800 * Humana, Inc. $2,296,972 $174
53,400 * LabOne, Inc. 2,125,854 161
45,200 * Lincare Holdings, Inc. 1,845,968 140
57,800 * Magellan Health Services, Inc. - Class "A" 2,040,918 155
75,100 West Pharmaceutical Services, Inc. 2,106,555 159
- ----------------------------------------------------------------------------------------------------------------------
14,107,698 1,069
- ----------------------------------------------------------------------------------------------------------------------
Industrials--20.5%
67,500 Angelica Corporation 1,654,425 126
26,650 Carlisle Companies, Inc. 1,828,990 139
67,800 CLARCOR, Inc. 1,983,150 150
30,400 Curtiss-Wright Corporation 1,640,080 124
40,900 HNI Corporation 2,092,035 159
36,200 * Jacobs Engineering Group, Inc. 2,036,612 154
42,800 John H. Harland Company 1,626,400 123
100,300 * Kansas City Southern, Inc. 2,024,054 153
56,000 * NCI Building Systems, Inc. 1,836,800 139
61,200 United Industrial Corporation 2,187,288 166
97,300 Wabtec Corporation 2,090,004 158
39,600 * Washington Group International, Inc. 2,024,352 154
70,100 Watson Wyatt & Company Holdings - Class "A" 1,796,663 136
27,000 Woodward Governor Company 2,268,810 172
- ----------------------------------------------------------------------------------------------------------------------
27,089,663 2,053
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--19.0%
112,000 * Avnet, Inc. 2,523,360 191
60,700 * Cabot Microelectronics Corporation 1,759,693 133
129,900 * Convergys Corporation 1,847,178 140
90,400 * eFunds Corporation 1,626,296 123
54,200 Imation Corporation 2,102,418 159
69,700 * Intergraph Corporation 2,401,862 182
44,100 * International Rectifier Corporation 2,104,452 160
146,200 * MEMC Electronic Materials, Inc. 2,305,574 175
91,600 * Overland Storage, Inc. 873,864 66
54,000 * Rogers Corporation 2,189,700 166
84,400 Sabre Holdings Corporation - Class "A" 1,683,780 128
245,000 * Tyler Technologies, Inc. 1,852,200 140
50,500 * Varian Semiconductor Equipment Associates, Inc. 1,868,500 142
- ----------------------------------------------------------------------------------------------------------------------
25,138,877 1,905
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE DISCOVERY FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--1.4%
35,800 AptarGroup, Inc. $1,818,640 $138
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--4.8%
59,200 CenturyTel, Inc. 2,050,096 155
180,000 * Premiere Global Services, Inc. 2,032,200 154
57,500 Telephone & Data Systems, Inc. - Special Shares 2,204,550 167
- ----------------------------------------------------------------------------------------------------------------------
6,286,846 476
- ----------------------------------------------------------------------------------------------------------------------
Utilities--6.3%
68,700 Atmos Energy Corporation 1,978,560 150
148,200 * CMS Energy Corporation 2,231,892 169
104,800 Duquesne Light Holdings, Inc. 1,957,664 149
89,900 Pepco Holdings, Inc. 2,152,206 163
- ----------------------------------------------------------------------------------------------------------------------
8,320,322 631
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $115,248,704) 126,188,342 9,563
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY
OBLIGATIONS--4.3%
$5,700M Federal Home Loan Bank, 2.6%, 7/1/05
(cost $5,700,000) 5,700,000 432
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $120,948,704) 99.9% 131,888,342 9,995
Other Assets, Less Liabilities .1 64,702 5
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $131,953,044 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,005.73 $4.62
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.18 $4.66
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .93%, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
Portfolio Composition
TOP SECTORS
(BAR CHART DATA:)
Information Technology 17.9%
Health Care 17.1%
Financials 17.1%
Industrials 11.5%
Energy 10.8%
Consumer Discretionary 9.3%
Consumer Staples 9.3%
Materials 3.1%
Telecomunication Services 2.2%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.2%
Consumer Discretionary--9.3%
4,400 * Comcast Corporation - Special Class "A" $131,780 $121
1,700 * Kohl's Corporation 95,047 87
3,800 Lowe's Companies, Inc. 221,236 203
24,400 * Time Warner, Inc. 407,724 374
4,800 Viacom, Inc. - Class "B" 153,696 141
- ----------------------------------------------------------------------------------------------------------------------
1,009,483 926
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.3%
4,200 Altria Group, Inc. 271,572 249
3,100 General Mills, Inc. 145,049 133
4,700 PepsiCo, Inc. 253,471 233
6,400 Procter & Gamble Company 337,600 310
- ----------------------------------------------------------------------------------------------------------------------
1,007,692 925
- ----------------------------------------------------------------------------------------------------------------------
Energy--10.8%
9,500 ConocoPhillips 546,155 501
3,600 GlobalSantaFe Corporation 146,880 135
1,600 Noble Energy, Inc. 121,040 111
4,800 Schlumberger, Ltd. 364,512 334
- ----------------------------------------------------------------------------------------------------------------------
1,178,587 1,081
- ----------------------------------------------------------------------------------------------------------------------
Financials--17.1%
2,700 American International Group, Inc. 156,870 144
9,600 Bank of America Corporation 437,856 401
9,100 Citigroup, Inc. 420,693 386
2,400 Golden West Financial Corporation 154,512 142
4,500 Merrill Lynch & Company, Inc. 247,545 227
2,700 Principal Financial Group, Inc. 113,130 104
5,294 St. Paul Travelers Companies, Inc. 209,272 192
2,600 State Street Corporation 125,450 115
- ----------------------------------------------------------------------------------------------------------------------
1,865,328 1,711
- ----------------------------------------------------------------------------------------------------------------------
Health Care--17.1%
6,300 Abbott Laboratories 308,763 283
5,500 Baxter International, Inc. 204,050 187
2,200 Eli Lilly & Company 122,562 113
2,000 * Genzyme Corporation 120,180 110
2,400 HCA, Inc. 136,008 125
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
5,100 Medtronic, Inc. $264,129 $242
7,200 Pfizer, Inc. 198,576 182
7,500 Schering-Plough Corporation 142,950 131
2,500 * WellPoint, Inc. 174,100 160
4,400 Wyeth 195,800 180
- ----------------------------------------------------------------------------------------------------------------------
1,867,118 1,713
- ----------------------------------------------------------------------------------------------------------------------
Industrials--11.5%
3,300 Boeing Company 217,800 200
1,500 General Dynamics Corporation 164,310 151
11,200 General Electric Company 388,080 356
1,400 Ingersoll-Rand Company - Class "A" 99,890 92
4,800 Tyco International, Ltd. 140,160 128
4,800 United Technologies Corporation 246,480 226
- ----------------------------------------------------------------------------------------------------------------------
1,256,720 1,153
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--17.8%
6,600 Analog Devices, Inc. 246,246 226
11,800 * Cisco Systems, Inc. 225,498 207
10,800 * Corning, Inc. 179,496 165
5,000 * Dell, Inc. 197,550 181
1,100 * Electronic Arts, Inc. 62,271 57
20,200 Microsoft Corporation 501,768 460
9,200 Nokia Corporation - Class "A" (ADR) 153,088 141
5,700 Texas Instruments, Inc. 159,999 147
6,300 * Yahoo!, Inc. 218,295 200
- ----------------------------------------------------------------------------------------------------------------------
1,944,211 1,784
- ----------------------------------------------------------------------------------------------------------------------
Materials--3.1%
2,600 Air Products & Chemicals, Inc. 156,780 144
4,200 Du Pont (E.I.) de Nemours & Company 180,642 166
- ----------------------------------------------------------------------------------------------------------------------
337,422 310
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.2%
7,500 * Nextel Communications, Inc. - Class "A" 242,325 222
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $9,650,151) 10,708,886 9,825
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.7%
$182M UBS Securities, 2.93%, dated 6/30/05, to be
repurchased at $182,015 on 7/1/05
(collateralized by U.S. Treasury Bonds,
5.25%, 11/15/28, valued at $189,673)
(cost $182,000) $182,000 $167
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $9,832,151) 99.9% 10,890,886 9,992
Other Assets, Less Liabilities .1 8,120 8
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $10,899,006 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE GOVERNMENT FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,017.25 $3.95
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.87 $3.96
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .79%, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period). Expenses paid during the period are net
of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART DATA:)
Mortgage-Backed Certificates 77.7%
U.S. Government Agency Obligations 9.4%
Short-term U.S. Government Obligations 7.6%
U.S. Government Obligations 5.3%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE GOVERNMENT FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--77.7%
Fannie Mae--13.7%
$1,072M 5.5%, 6/1/2033 - 7/1/2034 $1,087,544 $514
212M 6%, 8/1/2033 217,145 103
173M 7%, 5/1/2031 183,775 87
766M 9%, 6/1/2015 - 11/1/2026 843,160 399
498M 11%, 10/1/2015 562,395 266
- ----------------------------------------------------------------------------------------------------------------------
2,894,019 1,369
- ----------------------------------------------------------------------------------------------------------------------
Freddie Mac--9.6%
1,245M 6%, 8/1/2032 - 9/1/2034 1,277,885 604
423M 6.5%, 7/1/2032 - 12/1/2032 438,724 208
281M 8.5%, 7/1/2016 - 9/1/2024 308,958 146
- ----------------------------------------------------------------------------------------------------------------------
2,025,567 958
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association I Program--54.4%
979M 5%, 5/15/2034 - 3/15/2035 988,388 468
3,384M 5.5%, 2/15/2033 - 3/15/2035 3,463,906 1,638
2,581M 6%, 11/15/2032 - 5/15/2035 2,673,580 1,265
1,592M 6.5%, 6/15/2031 - 1/15/2033 1,669,050 789
2,019M 7%, 1/15/2030 - 10/15/2032 2,156,422 1,020
481M 10%, 5/15/2019 - 8/15/2019 556,235 263
- ----------------------------------------------------------------------------------------------------------------------
11,507,581 5,443
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $16,333,319) 16,427,167 7,770
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--9.5%
1,000M Federal Farm Credit Bank, 4.55%, 2011 999,238 473
1,000M Federal Home Loan Bank, 5%, 2012 1,006,708 476
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $1,990,621) 2,005,946 949
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--5.3%
972M FDA Queens LP, 6.99%, 2017 (cost $1,104,721)+ 1,113,032 526
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--7.5%
U.S. Treasury Bills:
$1,100M 2.77%, 7/7/05 $1,099,491 $520
500M 2.67%, 7/7/05 499,778 236
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government
Obligations (cost $1,599,269) 1,599,269 756
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $21,027,930) 100.0% 21,145,414 10,001
Excess of Liabilities Over Other Assets .0 (2,664) (1)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $21,142,750 $10,000
======================================================================================================================
+ Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 5)
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE GROWTH FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.66 $4.12
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.67 $4.16
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .83%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year
period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Health Care 17.5%
Information Technology 16.2%
Financials 16.1%
Consumer Discretionary 15.0%
Industrials 10.5%
Energy 10.1%
Consumer Staples 5.9%
Materials 3.2%
Telecomunication Services 1.3%
Utilities 1.2%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE GROWTH FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.1%
Consumer Discretionary--15.0%
35,000 * Career Education Corporation $1,281,350 $54
30,700 CBRL Group, Inc. 1,193,002 51
30,500 * Chico's FAS, Inc. 1,045,540 44
42,100 Christopher & Banks Corporation 768,746 33
46,000 * Comcast Corporation - Special Class "A" 1,377,700 58
74,366 D.R. Horton, Inc. 2,796,905 119
46,000 * Dollar Tree Stores, Inc. 1,104,000 47
3,100 * DSW, Inc. - Class "A" 77,345 3
39,800 Gap, Inc. 786,050 33
22,900 Garmin, Ltd. 978,975 41
19,200 Harrah's Entertainment, Inc. 1,383,744 59
34,700 * ITT Educational Services, Inc. 1,853,674 79
17,000 * Kohl's Corporation 950,470 40
38,100 * Lamar Advertising Company - Class "A" 1,629,537 69
47,200 Lowe's Companies, Inc. 2,747,984 116
76,000 Michaels Stores, Inc. 3,144,120 133
31,600 * O'Reilly Automotive, Inc. 941,996 40
50,550 * Pacific Sunwear of California, Inc. 1,162,145 49
30,100 * PETCO Animal Supplies, Inc. 882,532 37
9,700 * Shuffle Master, Inc. 271,891 12
16,300 * Tempur-Pedic International, Inc. 361,534 15
297,700 * Time Warner, Inc. 4,974,567 211
54,700 Viacom, Inc. - Class "B" 1,751,494 74
33,100 Yankee Candle Company, Inc. 1,062,510 45
15,900 Yum! Brands, Inc. 828,072 35
- ----------------------------------------------------------------------------------------------------------------------
35,355,883 1,497
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--5.9%
52,100 Altria Group, Inc. 3,368,786 143
26,600 General Mills, Inc. 1,244,614 53
23,700 Kellogg Company 1,053,228 44
56,900 PepsiCo, Inc. 3,068,617 130
83,300 Procter & Gamble Company 4,394,075 186
208,600 * Rite Aid Corporation 871,948 37
- ----------------------------------------------------------------------------------------------------------------------
14,001,268 593
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy--10.1%
110,300 Chesapeake Energy Corporation $2,514,840 $107
69,400 ConocoPhillips 3,989,806 169
87,100 ExxonMobil Corporation 5,005,637 212
52,800 GlobalSantaFe Corporation 2,154,240 91
53,300 Noble Energy, Inc. 4,032,145 171
23,300 Petro-Canada 1,517,762 64
38,400 Schlumberger, Ltd. 2,916,096 124
51,033 XTO Energy, Inc. 1,734,612 73
- ----------------------------------------------------------------------------------------------------------------------
23,865,138 1,011
- ----------------------------------------------------------------------------------------------------------------------
Financials--16.1%
20,000 Ambac Financial Group, Inc. 1,395,200 59
33,874 American International Group, Inc. 1,968,079 83
33,800 Arthur J. Gallagher & Company 916,994 39
126,000 Bank of America Corporation 5,746,860 243
9,600 Capital One Financial Corporation 768,096 33
110,852 Citigroup, Inc. 5,124,688 217
132,000 * E*TRADE Financial Corporation 1,846,680 78
14,700 Freddie Mac 958,881 41
32,600 Golden West Financial Corporation 2,098,788 89
33,600 IndyMac Bancorp, Inc. 1,368,528 58
54,300 Merrill Lynch & Company, Inc. 2,987,043 126
47,200 Northern Trust Corporation 2,151,848 91
31,100 Simon Property Group, Inc. (REIT) 2,254,439 95
82,200 Sovereign Bancorp, Inc. 1,836,348 78
64,996 St. Paul Travelers Companies, Inc. 2,569,292 109
30,700 State Street Corporation 1,481,275 63
54,000 UnumProvident Corporation 989,280 42
21,500 Zions Bancorporation 1,580,895 67
- ----------------------------------------------------------------------------------------------------------------------
38,043,214 1,611
- ----------------------------------------------------------------------------------------------------------------------
Health Care--17.5%
77,100 Abbott Laboratories 3,778,671 160
53,500 Baxter International, Inc. 1,984,850 84
22,300 Biomet, Inc. 772,472 33
75,500 * Biovail Corporation 1,171,760 50
17,100 Cooper Companies, Inc. 1,040,706 44
28,500 * Coventry Health Care, Inc. 2,016,375 85
39,300 * Dendrite International, Inc. 542,340 23
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
22,900 Diagnostic Products Corporation $1,083,857 $46
16,800 * Edwards Lifesciences Corporation 722,736 31
25,900 Eli Lilly & Company 1,442,889 61
49,300 * Fisher Scientific International, Inc. 3,199,570 136
34,100 * Genzyme Corporation 2,049,069 87
38,900 HCA, Inc. 2,204,463 93
100,000 * Health Net, Inc. 3,816,000 162
5,100 * Kinetic Concepts, Inc. 306,000 13
63,000 Medtronic, Inc. 3,262,770 138
25,700 Omnicare, Inc. 1,090,451 46
88,375 Pfizer, Inc. 2,437,383 103
120,300 Schering-Plough Corporation 2,292,918 97
18,100 * Triad Hospitals, Inc. 988,984 42
17,400 * Waters Corporation 646,758 27
31,300 * WellPoint, Inc. 2,179,732 92
52,700 Wyeth 2,345,150 99
- ----------------------------------------------------------------------------------------------------------------------
41,375,904 1,752
- ----------------------------------------------------------------------------------------------------------------------
Industrials--10.5%
12,700 Caterpillar, Inc. 1,210,437 51
22,000 Engineered Support Systems, Inc. 788,260 33
54,101 * European Aeronautic Defense and Space Company 1,725,861 73
19,700 Fastenal Company 1,206,822 51
13,900 General Dynamics Corporation 1,522,606 65
141,800 General Electric Company 4,913,370 208
28,700 Ingersoll-Rand Company - Class "A" 2,047,745 87
13,400 Oshkosh Truck Corporation 1,048,952 44
11,100 Parker Hannifin Corporation 688,311 29
28,700 Precision Castparts Corporation 2,235,730 95
14,300 Rockwell Collins, Inc. 681,824 29
58,100 Tyco International, Ltd. 1,696,520 72
57,200 United Technologies Corporation 2,937,220 124
30,200 * Waste Connections, Inc. 1,126,158 48
19,500 * Yellow Roadway Corporation 990,600 42
- ----------------------------------------------------------------------------------------------------------------------
24,820,416 1,051
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GROWTH FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--16.2%
14,600 * Affiliated Computer Services, Inc. - Class "A" $746,060 $32
27,900 Analog Devices, Inc. 1,040,949 44
27,900 * Benchmark Electronics, Inc. 848,718 36
18,500 CDW Corporation 1,056,165 45
147,100 * Cisco Systems, Inc. 2,811,081 119
6 Computer Associates International, Inc. 165 --
179,300 * Corning, Inc. 2,979,966 126
60,900 * Dell, Inc. 2,406,159 102
12,300 * DST Systems, Inc. 575,640 24
29,600 * Electronic Arts, Inc. 1,675,656 71
30,300 First Data Corporation 1,216,242 52
30,100 * Fiserv, Inc. 1,292,795 55
87,400 Intel Corporation 2,277,644 96
18,200 * International Rectifier Corporation 868,504 37
29,000 * Lam Research Corporation 839,260 36
21,300 Microchip Technology, Inc. 630,906 27
248,800 Microsoft Corporation 6,180,192 262
44,200 Motorola, Inc. 807,092 34
91,100 * Polycom, Inc. 1,358,301 58
21,800 * QLogic Corporation 672,966 28
33,100 * SanDisk Corporation 785,463 33
79,800 Symbol Technologies, Inc. 787,626 33
19,600 Tektronix, Inc. 456,092 19
78,500 Texas Instruments, Inc. 2,203,494 93
29,800 * Varian Semiconductor Equipment Associates, Inc. 1,102,600 47
78,000 * Yahoo!, Inc. 2,702,700 114
- ----------------------------------------------------------------------------------------------------------------------
38,322,436 1,623
- ----------------------------------------------------------------------------------------------------------------------
Materials--3.2%
45,100 Air Products & Chemicals, Inc. 2,719,530 115
67,100 Alcoa, Inc. 1,753,323 74
51,300 Du Pont (E.I.) de Nemours & Company 2,206,413 94
12,500 Vulcan Materials Company 812,375 34
- ----------------------------------------------------------------------------------------------------------------------
7,491,641 317
- ----------------------------------------------------------------------------------------------------------------------
Other--1.1%
46,100 Market 2000+ HOLDRs Trust 2,473,265 105
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--1.3%
91,700 * Nextel Communications, Inc.--Class "A" $2,962,827 $125
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.2%
78,200 PG&E Corporation 2,935,628 124
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $186,341,373) 231,647,620 9,809
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.8%
$4,363M UBS Securities, 2.93%, dated 6/30/05 to be
repurchased at $4,363,355 on 7/1/05
(collateralized by U.S. Treasury Bonds,
6.5%, 11/15/26, valued at $4,529,992)
(cost $4,363,000) 4,363,000 185
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $190,704,373) 99.9% 236,010,620 9,994
Other Assets, Less Liabilities .1 140,107 6
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $236,150,727 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
REIT Real Estate Investment Trust
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE HIGH YIELD FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $986.66 $4.14
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.62 $4.21
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .84%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Consumer Discretionary 22.6%
Consumer Staples 20.0%
Materials 13.9%
Industrials 12.5%
Energy 8.1%
Health Care 7.0%
Financials 2.9%
Telecommunication Services 2.7%
U.S. Government Obligations 1.5%
Information Technology 1.5%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--87.8%
Aerospace/Defense--3.0%
$400M Alliant Techsystems, Inc., 8.5%, 2011 $429,000 $62
600M DRS Technologies, Inc., 6.875%, 2013 624,000 91
400M DynCorp International, 9.5%, 2013+ 374,000 54
190M GenCorp, Inc., 9.5%, 2013 206,150 29
400M L-3 Communications Corp., 7.625%, 2012 428,000 62
- ----------------------------------------------------------------------------------------------------------------------
2,061,150 298
- ----------------------------------------------------------------------------------------------------------------------
Automotive--8.9%
200M Accuride Corp., 8.5%, 2015 196,500 28
Asbury Automotive Group, Inc.:
175M 9%, 2012 179,812 26
600M 8%, 2014 582,000 84
500M Collins & Aikman Products Co., 10.75%, 2011++ 115,000 17
750M Cooper Standard Automotive, Inc.,
8.375%, 2014 596,250 86
250M Cummins, Inc., 9.5%, 2010 276,250 40
375M Dana Corp., 9%, 2011 399,683 58
Delco Remy International, Inc.:
500M 11%, 2009 462,500 67
250M 9.375%, 2012 201,250 29
Navistar International Corp.:
250M 7.5%, 2011 256,250 37
350M 6.25%, 2012+ 339,500 49
1,000M Special Devices, Inc., 11.375%, 2008 890,000 129
750M Tenneco Automotive, Inc., 8.625%, 2014 757,500 109
448M TRW Automotive, Inc., 9.375%, 2013 498,400 72
400M United Components, Inc., 9.375%, 2013 405,000 59
- ----------------------------------------------------------------------------------------------------------------------
6,155,895 890
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--11.9%
225M BCP Crystal US Holdings, 9.625%, 2014 253,125 37
350M Equistar Chemicals LP, 10.625%, 2011 388,062 56
70M Ethyl Corp., 8.875%, 2010 72,887 11
500M FMC Corp., 10.25%, 2009 565,625 82
200M Huntsman International LLC, 7.375%, 2015+ 198,500 29
Huntsman, LLC:
183M 11.625%, 2010 215,254 31
319M 11.5%, 2012 375,622 54
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Chemicals (continued)
$900M IMC Global, Inc., 10.875%, 2013 $1,059,750 $153
700M Innophos, Inc., 8.875%, 2014+ 717,500 104
Lyondell Chemical Co.:
650M 9.625%, 2007 697,125 101
350M 9.5%, 2008 374,062 54
Millennium America, Inc.:
150M 7%, 2006 154,125 22
425M 9.25%, 2008 462,188 67
100M Omnova Solutions, Inc., 11.25%, 2010 105,500 15
Resolution Performance Products, LLC:
100M 8%, 2009 104,500 15
1,675M 13.5%, 2010 1,809,000 262
250M Southern States Cooperative, Inc., 10.5%, 2010+ 250,000 36
337M Terra Capital, Inc., 11.5%, 2010 385,865 56
64M Westlake Chemical Corp., 8.75%, 2011 69,920 10
- ----------------------------------------------------------------------------------------------------------------------
8,258,610 1,195
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--3.8%
200M Broder Brothers Co., 11.25%, 2010 203,000 29
500M GFSI, Inc., 9.625%, 2007 457,500 66
Levi Strauss & Co.:
500M 7.73%, 2012*** 475,000 69
400M 9.75%, 2015 399,000 58
800M Playtex Products, Inc., 9.375%, 2011 846,000 123
250M Remington Arms Co., 10.5%, 2011 237,500 34
- ----------------------------------------------------------------------------------------------------------------------
2,618,000 379
- ----------------------------------------------------------------------------------------------------------------------
Energy--8.0%
700M Bluewater Finance, Ltd., 10.25%, 2012 752,500 109
Chesapeake Energy Corp.:
200M 7.5%, 2014 218,000 32
500M 6.625%, 2016+ 518,750 75
150M Compagnie Generale de Geophysique, 7.5%, 2015+ 157,125 23
250M Delta Petroleum Corp., 7%, 2015+ 236,250 34
300M Dresser, Inc., 9.375%, 2011 317,250 46
1,000M El Paso Production Holding Co., 7.75%, 2013 1,072,500 155
200M Energy Partners, Ltd., 8.75%, 2010 211,000 31
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy (continued)
Giant Industries, Inc.:
$650M 11%, 2012 $739,375 $107
450M 8%, 2014 471,375 68
Tesoro Petroleum Corp.:
100M 8%, 2008 106,000 15
700M 9.625%, 2008 747,250 108
- ----------------------------------------------------------------------------------------------------------------------
5,547,375 803
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--1.4%
1,000M Dow Jones CDX High Yield, Trust 1, Series 4,
8.25%, 2010+ 1,005,000 145
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--3.0%
Land O'Lakes, Inc.:
200M 9%, 2010 216,500 31
550M 8.75%, 2011 556,875 81
1,000M Merisant Co., 9.75%, 2013+ 715,000 103
200M Pierre Foods, Inc., 9.875%, 2012 207,500 30
350M Pilgrim's Pride Corp., 9.625%, 2011 384,125 56
- ----------------------------------------------------------------------------------------------------------------------
2,080,000 301
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--1.9%
Great Atlantic & Pacific Tea Co., Inc.:
300M 7.75%, 2007 308,250 45
200M 9.125%, 2011 211,500 30
750M Ingles Markets, Inc., 8.875%, 2011 765,938 111
- ----------------------------------------------------------------------------------------------------------------------
1,285,688 186
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--1.6%
100M Portola Packaging, Inc., 8.25%, 2012 68,500 10
500M Stone Container Corp., 9.75%, 2011 531,250 77
Tekni-Plex, Inc.:
210M 12.75%, 2010 144,900 21
370M 8.75%, 2013+ 330,225 48
- ----------------------------------------------------------------------------------------------------------------------
1,074,875 156
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--4.1%
$500M Circus & Eldorado/Silver Legacy, 10.125%, 2012 $525,625 $76
200M Isle of Capri Casinos, Inc., 7%, 2014 202,000 29
800M MGM Mirage, Inc., 6.625%, 2015+ 813,000 118
Park Place Entertainment Corp.:
700M 9.375%, 2007 754,250 109
500M 7%, 2013 557,500 81
- ----------------------------------------------------------------------------------------------------------------------
2,852,375 413
- ----------------------------------------------------------------------------------------------------------------------
Health Care--6.9%
50M Alliance Imaging, 7.25%, 2012 47,500 7
500M Encore Medical IHC, Inc., 9.75%, 2012 487,500 71
200M Fisher Scientific International, Inc.,
6.125%, 2015 + 201,250 29
600M Genesis Health Ventures, Inc., 9.75%, 2008 ++** 375 --
HCA, Inc.:
485M 5.25%, 2008 485,619 70
700M 6.75%, 2013 740,069 107
350M Insight Health Services Corp., 9.875%, 2011 274,750 40
350M MedQuest, Inc., 11.875%, 2012 332,500 48
400M PerkinElmer, Inc., 8.875%, 2013 447,000 65
200M Quintiles Transnational Corp., 10%, 2013 220,000 32
250M Sybron Dental Specialties, Inc., 8.125%, 2012 268,750 39
Tenet Healthcare Corp.:
1,050M 6.375%, 2011 1,005,375 145
250M 9.25%, 2015+ 260,625 38
- ----------------------------------------------------------------------------------------------------------------------
4,771,313 691
- ----------------------------------------------------------------------------------------------------------------------
Housing--2.2%
200M Builders Firstsource, Inc., 7.51%, 2012+*** 200,000 29
350M Integrated Electrical Services, Inc., Series "C"
9.375%, 2009 263,375 38
100M NTK Holdings, Inc., 0% - 10.75%, 2014+# 47,500 7
500M Ply Gem Industries, Inc., 9%, 2012 425,000 61
William Lyon Homes, Inc.:
300M 7.625%, 2012 288,000 42
300M 10.75%, 2013 327,000 47
- ----------------------------------------------------------------------------------------------------------------------
1,550,875 224
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--1.5%
$350M Exodus Communications, Inc., 10.75%, 2009++** $219 $--
1,000M Iron Mountain, Inc., 8.25%, 2011 1,015,400 147
- ----------------------------------------------------------------------------------------------------------------------
1,015,619 147
- ----------------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--1.4%
168M Finova Group, Inc., 7.5%, 2009 75,488 11
350M General Motors Acceptance Corp., 4.5%, 2006 345,298 50
500M LaBranche & Co., Inc., 11%, 2012 542,500 78
- ----------------------------------------------------------------------------------------------------------------------
963,286 139
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--2.7%
1,040M Columbus McKinnon Corp., 8.5%, 2008 1,024,400 148
1,000M Wolverine Tube, Inc., 7.375%, 2008+ 875,000 127
- ----------------------------------------------------------------------------------------------------------------------
1,899,400 275
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting--3.3%
1,000M Block Communications, Inc., 9.25%, 2009 1,070,000 155
50M Nexstar Finance, Inc., 7%, 2014 46,563 7
350M Sinclair Broadcasting Group, Inc., 8.75%, 2011 369,250 53
Young Broadcasting, Inc.:
340M 10%, 2011 324,700 47
500M 8.75%, 2014 445,000 64
- ----------------------------------------------------------------------------------------------------------------------
2,255,513 326
- ----------------------------------------------------------------------------------------------------------------------
Media-Cable TV--9.2%
900M Adelphia Communications Corp., 10.25%, 2011++ 812,250 117
715M Atlantic Broadband Finance, LLC, 9.375%, 2014+ 675,675 98
750M Cablevision Systems Corp., 8%, 2012 738,750 107
Charter Communications Holdings, LLC:
1,500M 10%, 2009 1,166,250 169
250M 0% - 11.75%, 2011# 166,875 24
250M CSC Holdings, Inc., 8.125%, 2009 254,375 37
1,000M Echostar DBS Corp., 6.375%, 2011 996,250 144
1,000M Mediacom LLC/Mediacom Capital Corp.,
7.875%, 2011 967,500 140
500M Quebecor Media, Inc., 11.125%, 2011 558,125 81
- ----------------------------------------------------------------------------------------------------------------------
6,336,050 917
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--2.1%
$500M Cenveo, Inc., 7.875%, 2013 $477,500 $69
Six Flags, Inc.:
350M 8.875%, 2010 343,000 50
150M 9.625%, 2014 141,000 20
400M Universal City Development Partners, Ltd.,
11.75%, 2010 461,000 67
- ----------------------------------------------------------------------------------------------------------------------
1,422,500 206
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--.3%
200M Russell Metals, Inc., 6.375%, 2014 188,000 27
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--3.3%
750M General Nutrition Centers, Inc., 8.5%, 2010 603,750 87
1,000M Gregg Appliances, Inc., 9%, 2013+ 942,500 136
700M Michaels Stores, Inc., 9.25%, 2009 732,375 106
- ----------------------------------------------------------------------------------------------------------------------
2,278,625 329
- ----------------------------------------------------------------------------------------------------------------------
Services--5.1%
Allied Waste NA, Inc.:
400M 5.75%, 2011 376,000 54
206M 9.25%, 2012 223,510 32
200M 7.875%, 2013 205,500 30
700M 7.375%, 2014 651,000 94
220M Hydrochem Industrial Services, Inc., 9.25%, 2013+ 204,600 30
United Rentals, Inc.:
500M 6.5%, 2012 494,375 72
400M 7%, 2014 383,000 55
1,000M Waste Services, Inc., 9.5%, 2014+ 995,000 144
- ----------------------------------------------------------------------------------------------------------------------
3,532,985 511
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.0%
950M E. Spire Communications, Inc., 13%, 2005++** 95 --
1,000M XO Communications, Inc., 9%, 2008++** 625 --
- ----------------------------------------------------------------------------------------------------------------------
720 --
- ----------------------------------------------------------------------------------------------------------------------
Transportation--.8%
200M American Commercial Lines, LLC, 9.5%, 2015+ 212,000 31
300M General Maritime Corp., 10%, 2013 327,000 47
- ----------------------------------------------------------------------------------------------------------------------
539,000 78
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Principal For Each
Amount $10,000 of
or Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.0%
$500M AES Drax Energy, Ltd., 11.5%, 2010++ $1,125 $--
- ----------------------------------------------------------------------------------------------------------------------
Wireless Communications--1.4%
500M Nextel Communications, Inc., 5.95%, 2014 521,875 76
650M Triton Communications, LLC, 9.375%, 2011 469,625 68
- ----------------------------------------------------------------------------------------------------------------------
991,500 144
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $64,102,530) 60,685,479 8,780
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--1.8%
Food/Drug--.3%
12,800 Ingles Markets, Inc. 176,256 26
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--.2%
1,000 * MediaNews Group, Inc. - Class "A"** 150,000 22
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--1.3%
38,372 * RCN Corporation 886,010 128
1,200 * RCN Corporation** 12 --
690 * Viatel Holding (Bermuda), Ltd.** 83 --
4,399 * World Access, Inc. 4 --
- ----------------------------------------------------------------------------------------------------------------------
886,109 128
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $1,404,422) 1,212,365 176
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.5%
$1,000M U.S. Treasury Notes, 6.125%, 2007
(cost $1,026,544) 1,050,547 152
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.7%
Manufacturing
547 * Day International Group, Inc., 12.25%, 2010,
PIK (cost $441,390) 493,433 71
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY
OBLIGATIONS--5.8%
Federal Home Loan Bank :
$1,000M 2.99%, 7/6/05 $999,584 $145
1,500M 3.09%, 7/13/05 1,498,453 217
1,500M Freddie Mac, 2.97%, 7/5/05 1,499,504 217
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government Agency Obligations
(cost $3,997,541) 3,997,541 579
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.4%
500M ChevronTexaco Funding Corp., 3.13%, 7/13/05 499,478 72
500M Prudential Funding Co., 3.15%, 7/18/05 499,255 72
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term Corporate Notes (cost $998,733) 998,733 144
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $71,971,160) 99.0% 68,438,098 9,902
Other Assets, Less Liabilities 1.0 679,342 98
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $69,117,440 $10,000
======================================================================================================================
+ Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 5)
++ In default as to principal and/or interest payment
* Non-income producing
** Security valued at fair value (see Note 1A)
*** Interest Rates on Adjustable Rate Bonds are determined and reset quarterly by the indentures. The interest
rates shown are the rates in effect on June 30, 2005.
# Denotes a stepbond (a zero coupon bond that converts to a fixed interest rate at a designated future date)
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $987.87 $4.73
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.03 $4.81
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .96%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN COUNTRIES
(BAR CHART DATA:)
United States 32.7%
United Kingdom 11.6%
France 10.9%
Japan 9.3%
Switzerland 5.3%
Canada 4.7%
Netherlands 3.8%
Belguim 3.7%
Germany 3.0%
Italy 2.5%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--93.3%
United States--30.5%
12,650 Abbott Laboratories $619,977 $64
7,900 Air Products & Chemicals, Inc. 476,370 49
11,000 Alcoa, Inc. 287,430 30
8,500 Altria Group, Inc. 549,610 57
5,470 American International Group, Inc. 317,807 33
5,400 Analog Devices, Inc. 201,474 21
21,000 Bank of America Corporation 957,810 100
8,600 Baxter International, Inc. 319,060 33
6,400 Boeing Company 422,400 44
1,900 Capital One Financial Corporation 152,019 16
2,000 Caterpillar, Inc. 190,620 20
23,800 * Cisco Systems, Inc. 454,818 47
18,249 Citigroup, Inc. 843,651 88
8,000 * Comcast Corporation - Special Class "A" 239,600 25
18,600 ConocoPhillips 1,069,314 111
30,300 * Corning, Inc. 503,586 52
3,300 D.R. Horton, Inc. 124,113 13
10,000 * Dell, Inc. 395,100 41
8,400 DuPont (E.I.) de Nemours & Company 361,284 38
5,100 * Electronic Arts, Inc. 288,711 30
4,300 Eli Lilly & Company 239,553 25
4,900 First Data Corporation 196,686 20
5,900 * Fiserv, Inc. 253,405 26
4,100 * Fisher Scientific International, Inc. 266,090 28
2,300 Freddie Mac 150,029 16
7,600 Gap, Inc. 150,100 16
2,200 General Dynamics Corporation 240,988 25
23,400 General Electric Company 810,810 84
4,400 General Mills, Inc. 205,876 21
8,400 * Genzyme Corporation 504,756 52
9,300 GlobalSantaFe Corporation 379,440 39
5,400 Golden West Financial Corporation 347,652 36
6,800 HCA, Inc. 385,356 40
12,500 * Health Net, Inc. 477,000 50
5,000 Ingersoll-Rand Company - Class "A" 356,750 37
14,340 Intel Corporation 373,700 39
4,600 Kellogg Company 204,424 21
2,800 * Kohl's Corporation 156,548 16
7,700 * Lamar Advertising Company - Class "A" 329,329 34
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United States (continued)
7,700 Lowe's Companies, Inc. $448,294 $47
7,800 Market 2000+ Holders Trust 418,470 43
10,500 Medtronic, Inc. 543,795 57
9,000 Merrill Lynch & Company, Inc. 495,090 51
7,700 Michaels Stores, Inc. 318,549 33
4,000 Microchip Technology, Inc. 118,480 12
40,800 Microsoft Corporation 1,013,472 105
7,400 Motorola, Inc. 135,124 14
15,100 * Nextel Communications, Inc. - Class "A" 487,881 51
12,600 Noble Energy, Inc. 953,190 99
8,900 Northern Trust Corporation 405,751 42
9,400 PepsiCo, Inc. 506,942 53
14,962 Pfizer, Inc. 412,652 43
15,300 PG&E Corporation 574,362 60
17,700 * Polycom, Inc. 263,907 27
2,900 Precision Castparts Corporation 225,910 24
13,500 Procter & Gamble Company 712,125 74
2,700 Rockwell Collins, Inc. 128,736 13
20,800 Schering-Plough Corporation 396,448 41
6,330 Schlumberger, Ltd. 480,700 50
6,300 Simon Property Group, Inc. (REIT) 456,687 47
10,794 St. Paul Travelers Companies, Inc. 426,687 44
5,000 State Street Corporation 241,250 25
15,000 Symbol Technologies, Inc. 148,050 15
12,900 Texas Instruments, Inc. 362,103 38
48,900 * Time Warner, Inc. 817,119 85
9,600 Tyco International, Ltd. 280,320 29
9,600 United Technologies Corporation 492,960 51
8,700 UnumProvident Corporation 159,384 17
9,200 Viacom, Inc. - Class "B" 294,584 31
2,400 Vulcan Materials Company 155,976 16
5,100 * WellPoint, Inc. 355,164 37
8,700 Wyeth 387,150 40
12,800 * Yahoo!, Inc. 443,520 46
3,000 Yum! Brands, Inc. 156,240 16
4,200 Zions Bancorporation 308,826 32
- ----------------------------------------------------------------------------------------------------------------------
29,329,144 3,045
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United Kingdom--11.5%
30,594 AstraZeneca PLC $1,267,301 $132
176,469 Centrica PLC 733,047 76
210,379 EMI Group PLC 957,811 99
49,730 Enterprise Inns PLC 743,410 77
45,215 Imperial Tobacco Group PLC 1,218,106 127
54,536 Reckitt Benckiser PLC 1,608,025 167
72,167 Royal Bank of Scotland Group PLC 2,180,921 226
65,900 Vedanta Resources PLC 596,514 62
472,925 Vodafone Group PLC 1,152,855 120
27,823 Wolseley PLC 585,485 61
- ----------------------------------------------------------------------------------------------------------------------
11,043,475 1,147
- ----------------------------------------------------------------------------------------------------------------------
France--10.8%
5,099 Air Liquide SA 869,793 90
21,191 Axa 530,288 55
13,845 Essilor International SA 947,025 98
25,612 European Aeronautic Defence and Space Company 817,041 85
30,337 France Telecom SA 887,339 92
14,980 Sanofi-Aventis 1,231,407 128
21,014 Societe Television Francaise 1 559,186 58
64,483 STMicroelectronics NV 1,035,163 107
8,790 Total SA 2,067,672 215
951 Unibail 122,156 13
41,506 Vivendi Universal SA 1,309,499 136
- ----------------------------------------------------------------------------------------------------------------------
10,376,569 1,077
- ----------------------------------------------------------------------------------------------------------------------
Japan--9.2%
21,000 Canon, Inc. 1,106,759 115
119 East Japan Railway Company 612,129 64
22,400 Eisai Company, Ltd. 754,011 78
17,600 Electric Power Development Company, Ltd. 509,846 53
4,600 Fast Retailing Company, Ltd. 239,112 25
81 Japan Tobacco, Inc. 1,081,852 112
3,400 Keyence Corporation 762,783 79
3,600 ORIX Corporation 540,601 56
3,100 Promise Company, Ltd. 198,908 21
23,900 Sankyo Company, Ltd. 459,408 48
13,700 Sony Corporation 472,286 49
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Japan (continued)
12,300 Takeda Pharmaceutical Company, Ltd. $610,504 $63
9,660 Takefuji Corporation 653,822 68
169 * UFJ Holdings, Inc. 881,527 91
- ----------------------------------------------------------------------------------------------------------------------
8,883,548 922
- ----------------------------------------------------------------------------------------------------------------------
Switzerland--5.3%
4,774 Nestle SA - Registered 1,222,287 127
7,974 Roche Holding AG - Genusscheine 1,009,588 105
20,590 UBS AG - Registered 1,607,213 167
7,115 * Zurich Financial Services AG 1,226,284 127
- ----------------------------------------------------------------------------------------------------------------------
5,065,372 526
- ----------------------------------------------------------------------------------------------------------------------
Canada--4.6%
31,400 Canadian Pacific Railway, Ltd. 1,086,746 113
6,712 EnCana Corporation 270,716 28
16,900 Fairmont Hotels & Resorts, Inc. 588,627 61
26,300 Petro-Canada 1,712,463 178
21,800 Talisman Energy, Inc. 816,966 85
- ----------------------------------------------------------------------------------------------------------------------
4,475,518 465
- ----------------------------------------------------------------------------------------------------------------------
Netherlands--3.7%
34,961 * ASML Holding NV 551,080 57
162,400 * Koninklijke Ahold NV 1,336,949 139
30,539 Koninklijke (Royal) Philips Electronics NV 772,718 80
23,000 * Royal Numico NV 921,114 96
- ----------------------------------------------------------------------------------------------------------------------
3,581,861 372
- ----------------------------------------------------------------------------------------------------------------------
Germany--3.0%
35,100 * Bayerische Hypo-und Vereinsbank AG 913,620 95
60,294 Deutsche Telekom AG - Registered 1,116,826 116
8,044 Muenchener Rueckversicherungs-
Gesellschaft AG - Registered 857,962 89
- ----------------------------------------------------------------------------------------------------------------------
2,888,408 300
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Italy--2.4%
140,515 Banca Intesa SpA $643,885 $67
50,064 Eni SpA 1,291,603 134
49,900 Geox SpA 416,840 43
- ----------------------------------------------------------------------------------------------------------------------
2,352,328 244
- ----------------------------------------------------------------------------------------------------------------------
Sweden--1.8%
79,310 Swedish Match AB 901,371 93
272,200 Telefonaktiebolaget LM Ericsson AB - Class "B" 874,922 91
- ----------------------------------------------------------------------------------------------------------------------
1,776,293 184
- ----------------------------------------------------------------------------------------------------------------------
Taiwan--1.8%
61,800 AU Optronics Corporation (ADR) 1,046,892 109
72,154 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR) 658,042 68
- ----------------------------------------------------------------------------------------------------------------------
1,704,934 177
- ----------------------------------------------------------------------------------------------------------------------
Hong Kong--1.6%
136,500 Esprit Holdings, Ltd. 987,756 103
56,000 Sun Hung Kai Properties, Ltd. 552,918 57
- ----------------------------------------------------------------------------------------------------------------------
1,540,674 160
- ----------------------------------------------------------------------------------------------------------------------
Spain--1.3%
82,221 Banco Bilbao Vizcaya Argentaria SA 1,270,145 132
- ----------------------------------------------------------------------------------------------------------------------
Brazil--1.3%
27,200 Companhia Vale Do Rio Doce (ADR) 796,416 83
8,400 Petroleo Brasileiro SA - Petrobras (ADR) 437,892 45
- ----------------------------------------------------------------------------------------------------------------------
1,234,308 128
- ----------------------------------------------------------------------------------------------------------------------
Australia--.8%
95,446 Santos, Ltd. 823,569 85
- ----------------------------------------------------------------------------------------------------------------------
Mexico--.8%
12,500 Fomento Economico Mexicano SA de CV (ADR) 744,625 77
- ----------------------------------------------------------------------------------------------------------------------
Indonesia--.7%
33,100 PT Telekomunikasi Indonesia (ADR) 690,135 72
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Shares, Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Austria--.6%
12,200 Wienerberger AG $566,724 $59
- ----------------------------------------------------------------------------------------------------------------------
Ireland--.6%
51,282 * Ryanair Holdings PLC 396,101 41
3,500 * Ryanair Holdings PLC (ADR) 156,940 16
- ----------------------------------------------------------------------------------------------------------------------
553,041 57
- ----------------------------------------------------------------------------------------------------------------------
Denmark--.5%
9,700 Carlsberg A/S - Class "B" 497,977 52
- ----------------------------------------------------------------------------------------------------------------------
Turkey--.5%
36,100 Turkcell Iletisim Hizmet (ADR) 456,665 48
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $77,877,901) 89,855,313 9,329
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
United States
742 * Lucent Technologies, Inc. (expiring 12/10/07) (cost $0) 571 --
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.0%
Brazil
5,000 * Vale do Rio Doce - Class "B" (cost $0)** 50 --
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM FOREIGN GOVERNMENT
AND AGENCY OBLIGATIONS--3.7%
Belgium
Euro 2,955M Belgium Treasury Bills, Zero Coupon, 8/18/05
(cost $3,785,825) 3,567,612 371
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--.2%
$225M U.S. Treasury Bills, 2.94%, 8/25/05
(cost $224,009)+ 224,000 23
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.7%
$1,600M UBS Securities, 2.93% dated 6/30/05, to be
repurchased at $1,600,130 on 7/1/05
(collateralized by U.S. Treasury Bonds,
7.125%, 2/15/23, valued at $1,653,072
(cost $1,600,000) $1,600,000 $166
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $83,487,735) 98.9% 95,247,546 9,889
Other Assets, Less Liabilities 1.1 1,066,161 111
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $96,313,707 $10,000
======================================================================================================================
* Non-income producing
** Security valued at fair value (see Note 1A)
+ See Note 6
Summary of Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
June 30, 2005
Sector diversification of the portfolio was as follows:
- ---------------------------------------------------------------------------------------
Percentage
Sector of Net Asset Value
- ---------------------------------------------------------------------------------------
Energy 10.7% $10,303,525
Food, Beverage & Tobacco 8.4 8,054,184
Pharmaceuticals & Biotechnology 8.2 7,892,755
Banks 7.9 7,654,415
Technology Hardware & Equipment 5.9 5,692,512
Diversified Financials 5.3 5,138,305
Capital Goods 5.3 5,118,744
Telecommunication Services 5.0 4,791,701
Media 4.7 4,507,128
Materials 3.7 3,543,833
Insurance 3.7 3,518,412
Semiconductors & Semiconductor Equipment 3.4 3,300,042
Health Care Equipment & Services 3.4 3,293,490
Household & Personal Products 2.4 2,320,150
Retailing 2.4 2,300,359
Transportation 2.3 2,251,916
Software & Services 2.3 2,195,794
Utilities 1.9 1,817,255
Consumer Durables & Apparel 1.9 1,785,957
Consumer Services 1.5 1,488,277
Food & Staples Retailing 1.4 1,336,949
Real Estate 1.2 1,131,761
Pooled Vehicle 0.4 418,470
Short-Term Foreign Government and Agency Obligations 3.7 3,567,612
Short-Term U.S. Government Obligations 0.2 224,000
Repurchase Agreement 1.7 1,600,000
- ---------------------------------------------------------------------------------------
Total Value of Investments 98.9 95,247,546
Other Assets, Less Liabilities 1.1 1,066,161
- ---------------------------------------------------------------------------------------
Net Assets 100.0% $96,313,707
=======================================================================================
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,018.57 $3.60
Hypothetical
(5% annual return before expenses) $1,000.00 $1,021.22 $3.61
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .72%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Expenses paid during the period are net of expenses waived.
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Financials 25.2%
Consumer Staples 16.9%
Industrials 13.5%
Utilities 8.0%
U.S. Government Obligations 7.7%
Consumer Discretionary 7.7%
Materials 6.9%
U.S. Government Agency Obligations 4.0%
Telecommunication Services 3.9%
Health Care 2.3%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--81.5%
Aerospace/Defense--2.2%
Honeywell International, Inc.:
$450M 7.5%, 2010 $513,257 $133
125M 6.125%, 2011 137,122 36
100M Precision Castparts Corp., 5.6%, 2013 103,983 27
100M TRW, Inc., 7.125%, 2009 109,971 29
- ----------------------------------------------------------------------------------------------------------------------
864,333 225
- ----------------------------------------------------------------------------------------------------------------------
Automotive--1.6%
350M DaimlerChrysler NA Holdings Corp., 8%, 2010 396,029 103
224M Ford Motor Co., 8.9%, 2032 204,946 53
- ----------------------------------------------------------------------------------------------------------------------
600,975 156
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--.9%
300M Lubrizol Corp., 7.25%, 2025 351,198 91
- ----------------------------------------------------------------------------------------------------------------------
Consumer Durables--.9%
350M Black & Decker Corp., 4.75%, 2014 346,990 90
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.5%
100M Avon Products, Inc., 4.2%, 2018 94,470 25
200M Colgate-Palmolive Co., 7.84%, 2007 213,730 56
150M Procter & Gamble Co., 4.85%, 2015 154,532 40
100M Unilever Capital Corp., 6.875%, 2005 101,025 26
- ----------------------------------------------------------------------------------------------------------------------
563,757 147
- ----------------------------------------------------------------------------------------------------------------------
Energy--1.6%
300M Repsol International Finance BV, 7.45%, 2005 300,530 78
100M Sunoco, Inc., 9.375%, 2016 104,555 27
200M Texaco Capital, Inc., 8.25%, 2006 209,206 55
- ----------------------------------------------------------------------------------------------------------------------
614,291 160
- ----------------------------------------------------------------------------------------------------------------------
Financial--5.0%
125M American General Finance Corp., 8.125%, 2009 141,880 37
300M CIT Group, Inc., 7.75%, 2012 352,323 92
ERAC USA Finance Enterprise Co.:
100M 7.35%, 2008+ 107,967 28
355M 8%, 2011+ 411,531 107
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financial (continued)
General Electric Capital Corp.:
$150M 7.875%, 2006 $157,780 $41
144M 8.5%, 2008 160,935 42
400M General Motors Acceptance Corp., 7.75%, 2010 391,384 102
200M Household Finance Corp., 6.5%, 2008 213,630 56
- ----------------------------------------------------------------------------------------------------------------------
1,937,430 505
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--13.1%
200M American Express Co., 4.875%, 2013 206,539 54
Bank of America Corp.:
250M 7.8%, 2010 286,212 75
75M 7.4%, 2011 85,935 22
300M Bank One Corp., 7.875%, 2010 347,206 90
300M Chase Manhattan Corp., 7.875%, 2010 346,198 90
150M Comerica, 7.125%, 2013 162,626 42
250M First Union National Bank, 7.8%, 2010 290,697 76
300M Fleet Capital Trust II, 7.92%, 2026 323,939 84
250M Florida Windstorm Underwriting Assoc.,
7.125%, 2019+ 302,660 79
300M Greenpoint Bank, 9.25%, 2010 365,968 95
225M Huntington National Bank, 8%, 2010 258,172 67
125M JP Morgan Chase & Co., 6.625%, 2012 139,348 36
200M Manufacturers & Traders Trust Co., 8%, 2010 235,386 61
100M National City Bank of Pennsylvania, 7.25%, 2011 114,752 30
100M Old National Bank, 6.75%, 2011 109,883 29
384M Republic NY Corp., 7.75%, 2009 429,665 112
400M Royal Bank of Scotland Group PLC, 5%, 2014 413,188 108
200M Wachovia Bank NA, 4.875%, 2015 203,888 53
350M Washington Mutual, Inc., 8.25%, 2010 402,368 105
- ----------------------------------------------------------------------------------------------------------------------
5,024,630 1,308
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--4.7%
Bottling Group, LLC:
123M Series "B", 4.625%, 2012 125,042 33
190M Series "B", 5%, 2013 196,882 51
Coca-Cola Enterprises, Inc.:
250M 7.125%, 2009 277,813 72
100M 7.125%, 2017 120,037 31
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco (continued)
$400M ConAgra Foods, Inc., 6.75%, 2011 $443,224 $115
300M Hershey Foods Corp., 6.7%, 2005 302,026 79
200M Pepsi Bottling Group, Inc., 7%, 2029 254,613 66
100M Philip Morris Companies, Inc., 6.95%, 2006 102,391 27
- ----------------------------------------------------------------------------------------------------------------------
1,822,028 474
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--2.8%
200M CVS Corp., 4.875%, 2014 203,696 53
200M Delhaize America, Inc., 8.125%, 2011 225,317 59
200M Kroger Co., 6.8%, 2018 227,641 59
Safeway, Inc.:
200M 7%, 2007 210,284 55
200M 6.5%, 2011 216,420 56
- ----------------------------------------------------------------------------------------------------------------------
1,083,358 282
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--2.9%
350M International Paper Co., 6.75%, 2011 381,999 99
275M Sappi Papier Holding AG, 6.75%, 2012+ 294,291 77
Weyerhaeuser Co.:
100M 7.25%, 2013 113,293 30
300M 7.5%, 2013 342,741 89
- ----------------------------------------------------------------------------------------------------------------------
1,132,324 295
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--.7%
250M MGM Mirage, Inc., 8.5%, 2010 278,750 73
- ----------------------------------------------------------------------------------------------------------------------
Health Care--2.3%
200M Becton, Dickinson & Co., 7.15%, 2009 222,866 58
225M Columbia/HCA Healthcare, Inc., 7.5%, 2023 238,407 62
200M Tenet Healthcare Corp., 6.375%, 2011 191,500 50
200M Wyeth, 6.95%, 2011 223,780 58
- ----------------------------------------------------------------------------------------------------------------------
876,553 228
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--3.0%
Ingersoll-Rand Co.:
100M 4.75%, 2015 101,136 26
125M 9%, 2021 179,941 47
300M Newell Rubbermaid, Inc., 6.75%, 2012 330,035 86
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing (continued)
United Technologies Corp.:
$100M 6.5%, 2009 $108,630 $28
200M 7.125%, 2010 227,988 59
180M 6.1%, 2012 197,935 52
- ----------------------------------------------------------------------------------------------------------------------
1,145,665 298
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting--2.8%
Comcast Cable Communications, Inc.:
200M 8.375%, 2007 214,642 56
250M 7.125%, 2013 286,948 75
250M Cox Communications, Inc., 5.5%, 2015 255,574 66
300M PanAmSat Corp., 6.375%, 2008 306,000 80
- ----------------------------------------------------------------------------------------------------------------------
1,063,164 277
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--4.1%
225M AOL Time Warner, Inc., 6.875%, 2012 254,245 66
330M Cox Enterprises, Inc., 8%, 2007+ 347,728 91
400M New York Times Co., 5%, 2015 414,749 108
200M News America, Inc., 7.3%, 2028 233,446 61
200M Time Warner, Inc., 6.875%, 2018 231,488 60
75M Viacom, Inc., 8.875%, 2014 92,270 24
- ----------------------------------------------------------------------------------------------------------------------
1,573,926 410
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--2.9%
200M Alcoa, Inc., 6%, 2012 216,890 56
123M Hanson Australia Funding, 5.25%, 2013 126,365 33
400M Hanson PLC, 7.875%, 2010 462,922 121
300M Thiokol Corp., 6.625%, 2008 317,922 83
- ----------------------------------------------------------------------------------------------------------------------
1,124,099 293
- ----------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--6.6%
100M Archstone-Smith Trust, 7.9%, 2016 118,622 31
470M AvalonBay Communities, Inc., 7.5%, 2010 535,619 140
350M Boston Properties, Inc., 5%, 2015 350,587 91
185M Duke Weeks Realty Corp., 7.75%, 2009 207,894 54
300M EOP Operating LP, 8.1%, 2010 346,076 90
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts (continued)
$400M Mack-Cali Realty LP, 7.75%, 2011 $458,290 $119
425M Simon Property Group, Inc., 7.875%, 2016+ 510,506 133
- ----------------------------------------------------------------------------------------------------------------------
2,527,594 658
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--4.2%
300M Federated Department Stores, Inc., 7.45%, 2017 362,334 94
100M Lowe's Companies, Inc., 8.25%, 2010 117,691 30
325M RadioShack Corp., 7.375%, 2011 359,415 94
350M Target Corp., 7.5%, 2010 402,715 105
Wal-Mart Stores, Inc.:
150M 8%, 2006 156,628 41
200M 4.125%, 2011 199,236 52
- ----------------------------------------------------------------------------------------------------------------------
1,598,019 416
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--3.8%
300M Deutsche Telekom AG, 8.5%, 2010 348,041 91
200M SBC Communications, Inc., 6.25%, 2011 217,188 56
375M Sprint Capital Corp., 6.375%, 2009 399,434 104
200M Verizon New York, Inc., 6.875%, 2012 221,335 58
250M Vodafone AirTouch PLC, 7.75%, 2010 285,727 74
- ----------------------------------------------------------------------------------------------------------------------
1,471,725 383
- ----------------------------------------------------------------------------------------------------------------------
Transportation--4.2%
Burlington Northern Santa Fe Corp.:
275M 7.875%, 2007 291,368 76
250M 7.125%, 2010 282,210 73
Canadian National Railway Co.:
150M 6.45%, 2006 153,399 40
100M 6.8%, 2018 118,250 31
150M 7.375%, 2031 197,910 52
100M FedEx Corp., 3.5%, 2009 97,547 25
100M Norfolk Southern Corp., 7.7%, 2017 125,103 33
300M Union Pacific Corp., 7.375%, 2009 333,935 87
- ----------------------------------------------------------------------------------------------------------------------
1,599,722 417
- ----------------------------------------------------------------------------------------------------------------------
Utilities--7.9%
300M Columbia Energy Group, 6.8%, 2005 303,273 79
265M Consumers Energy Co., 6.375%, 2008 277,948 72
250M Dominion Resources, Inc., 5%, 2013 252,222 66
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$200M DPL, Inc., 6.875%, 2011 $217,000 $56
300M Duke Capital Corp., 8%, 2019 372,137 97
125M Eastern Energy, Ltd., 6.75%, 2006+ 129,302 34
209M Niagara Mohawk Holdings, Inc., 7.625%, 2005 211,366 55
300M NiSource Finance Corp., 7.875%, 2010 345,104 90
100M OGE Energy Corp., 5%, 2014 100,924 26
250M PP&L Capital Funding, Inc., 8.375%, 2007 268,407 70
205M Public Service Electric & Gas Co., 6.75%, 2016 240,053 62
100M South Carolina Electric & Gas Co., 6.7%, 2011 111,933 29
178M Wisconsin Power & Light Co., 7%, 2007 187,058 49
- ----------------------------------------------------------------------------------------------------------------------
3,016,727 785
- ----------------------------------------------------------------------------------------------------------------------
Waste Management--1.8%
Allied Waste NA, Inc.:
250M 8.875%, 2008 263,750 69
100M 5.75%, 2011 94,000 25
Waste Management, Inc.:
100M 6.875%, 2009 108,356 28
200M 7.375%, 2010 223,889 58
- ----------------------------------------------------------------------------------------------------------------------
689,995 180
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $29,774,302) 31,307,253 8,151
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--7.6%
U.S. Treasury Notes:
1,000M 6.625%, 2007 1,053,829 274
500M 5.625%, 2008 526,524 137
500M 6%, 2009 543,418 142
700M 6.5%, 2010 781,403 203
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $2,884,148) 2,905,174 756
- ----------------------------------------------------------------------------------------------------------------------
PASS THROUGH CERTIFICATES--3.8%
Real Estate--.9%
311M FDA Queens LP, 6.99%, 2017+ 356,170 93
- ----------------------------------------------------------------------------------------------------------------------
Transportation--2.9%
72M American Airlines, Inc., 7.377%, 2019 51,481 14
412M Continental Airlines, Inc., 8.388%, 2020 342,300 89
212M FedEx Corp., 7.5%, 2018 246,913 64
173M Northwest Airlines, Inc., 8.072%, 2019 188,754 49
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation (continued)
$228M NWA Trust, 10.23%, 2012 $185,438 $48
75M Southwest Airlines Co., 6.126%, 2006 76,271 20
- ----------------------------------------------------------------------------------------------------------------------
1,091,157 284
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Pass Through Certificates (cost $1,423,100) 1,447,327 377
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--3.0%
Fannie Mae:
400M 6.125%, 2012 447,953 117
300M 5%, 2016 298,916 78
Freddie Mac:
100M 4.6%, 2018 98,741 26
100M 5%, 2018 99,364 26
200M Tennessee Valley Authority, 5.375%, 2008 209,158 54
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $1,128,387) 1,154,132 301
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--1.2%
Housing
Virginia State Housing Development Authority:
335M Series "A", 6.51%, 2019 359,143 94
100M Series "M". 7%, 2022 111,313 29
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $402,549) 470,456 123
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--.9%
350M Prudential Funding Co., 3.15%, 7/18/05
(cost $349,479) 349,479 91
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $35,961,965) 98.0% 37,633,821 9,799
Other Assets, Less Liabilities 2.0 772,690 201
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $38,406,511 $10,000
======================================================================================================================
+ Security exempt from registration under Rule 144A of the Securities Act of 1933 (see Note 5)
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,005.63 $3.68
Hypothetical
(5% annual return before expenses) $1,000.00 $1,021.12 $3.71
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .74%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART DATA:)
U.S. Government Agency Zero-Coupon Obligations 72.8%
U.S. Government Zero-Coupon Obligations 27.2%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY ZERO COUPON
OBLIGATIONS--72.2%
Agency For International Development - Israel:
$1,513M 8/15/2007 3.79% $1,397,110 $630
1,000M 11/15/2007 3.79 914,758 413
5,304M Government Trust Certificate - Israel Trust,
11/15/2007 3.83 4,847,506 2,187
586M International Bank for Reconstruction &
Development, 8/15/2007 4.20 536,412 242
6,456M Resolution Funding Corporation,
10/15/2007 3.64 5,944,362 2,682
2,600M Tennessee Valley Authority, 11/1/2007 3.95 2,372,843 1,071
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $14,989,923) 16,012,991 7,225
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT ZERO COUPON OBLIGATIONS--27.0%
6,510M U.S. Treasury Strips, 11/15/2007
(cost $5,548,731) 3.61 5,980,268 2,698
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $20,538,654) 99.2% 21,993,259 9,923
Other Assets, Less Liabilities .8 170,424 77
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $22,163,683 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the effective yields at June 30, 2005.
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,029.46 $3.77
Hypothetical
(5% annual return before expenses) $1,000.00 $1,021.07 $3.76
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .75%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART DATA:)
U.S. Government Agency Zero-Coupon Obligations 62.5%
U.S. Government Zero-Coupon Obligations 37.5%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY ZERO
COUPON OBLIGATIONS--62.4%
Agency For International Development - Israel:
$1,303M 8/15/2010 3.79% $1,075,022 $624
495M 9/15/2010 3.79 407,183 236
Fannie Mae:
1,260M 8/7/2010 3.94 1,032,440 600
700M 10/8/2010 3.91 570,614 331
600M 11/29/2010 3.94 485,830 282
321M 2/1/2011 4.50 250,419 145
1,100M Freddie Mac, 9/15/2010 3.94 897,835 521
500M Government Trust Certificate - Israel
Trust, 11/15/2010 3.85 407,379 237
1,990M Government Trust Certificate - Turkey
Trust, 11/15/2010 3.85 1,621,366 942
Resolution Funding Corporation:
650M 10/15/2010 3.64 537,042 312
2,998M 1/15/2011 3.76 2,439,197 1,417
1,250M Tennessee Valley Authority, 11/1/2010 3.97 1,013,729 589
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $9,345,013) 10,738,056 6,236
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT ZERO COUPON OBLIGATIONS--37.3%
7,785M U.S. Treasury Strips, 11/15/2010
(cost $5,674,230) 3.59 6,430,464 3,735
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $15,019,243) 99.7% 17,168,520 9,971
Other Assets, Less Liabilities .3 49,542 29
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $17,218,062 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the effective yields at June 30, 2005.
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE TARGET MATURITY 2015 FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,065.60 $3.74
Hypothetical
(5% annual return before expenses) $1,000.00 $1,021.17 $3.66
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .73%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Expenses paid during the period are net of expenses waived.
Portfolio Composition
BY SECTOR
(BAR CHART DATA:)
U.S. Government Agency Zero-Coupon Obligations 53.1%
U.S. Government Zero-Coupon Obligations 46.9%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2015 FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY ZERO
COUPON OBLIGATIONS--52.9%
Agency For International Development - Israel:
$698M 9/15/2015 4.31% $451,611 $224
1,150M 11/1/2015 4.31 739,917 366
2,234M 11/15/2015 4.31 1,434,929 710
300M 3/15/2016 4.34 189,445 94
Fannie Mae:
150M 2/12/2015 4.39 98,809 49
243M 8/12/2015 4.41 156,322 77
600M 9/23/2015 4.46 381,982 189
1,818M 11/15/2015 4.47 1,149,358 569
650M Federal Judiciary Office Building,
2/15/2015 4.29 432,051 214
Freddie Mac:
550M 3/15/2015 4.45 358,797 178
1,760M 9/15/2015 4.47 1,120,893 555
625M 1/15/2016 4.48 391,695 194
210M Government Trust Certificate - Turkey Trust,
5/15/2015 4.38 136,916 68
200M International Bank for Reconstruction &
Development, 2/15/2015 4.69 128,028 63
Resolution Funding Corporation:
3,177M 10/15/2015 4.27 2,057,209 1,019
320M 1/15/2016 4.29 204,594 101
2,000M Tennessee Valley Authority, 11/1/2015 4.53 1,258,854 623
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $9,458,468) 10,691,410 5,293
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT ZERO COUPON OBLIGATIONS--46.7%
14,325M U.S. Treasury Strips, 11/15/2015
(cost $8,261,923) 4.07 9,431,881 4,670
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $17,720,391) 99.6% 20,123,291 9,963
Other Assets, Less Liabilities .4 73,742 37
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $20,197,033 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the effective yields at June 30, 2005.
See notes to financial statements
Fund Expenses
FIRST INVESTORS LIFE VALUE FUND
The examples below show the ongoing costs (in dollars) of investing in
your Fund and will help you in comparing these costs with costs of other
mutual funds. Please refer to page 4 for a detailed explanation of the
information presented in these examples.
- ----------------------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value During Period
Expense Examples (1/1/05) (6/30/05) (1/1/05-6/30/05)*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,023.06 $4.16
Hypothetical
(5% annual return before expenses) $1,000.00 $1,020.67 $4.16
- ----------------------------------------------------------------------------------------------
* Expenses are equal to the annualized expense ratio of .83%, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Portfolio Composition
TOP TEN SECTORS
(BAR CHART DATA:)
Financials 27.5%
Consumer Discretionary 15.1%
Energy 9.5%
Consumer Staples 8.5%
Industrials 7.7%
Materials 7.4%
Health Care 5.7%
Utilities 5.1%
Information Technology 4.9%
Telecomunication Services 4.2%
Portfolio holdings and allocations are subject to change. Percentages are
as of June 30, 2005, and are based on total value of investments.
Portfolio of Investments
FIRST INVESTORS LIFE VALUE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--92.5%
Consumer Discretionary--14.9%
26,300 Bob Evans Farms, Inc. $613,316 $82
22,000 Clear Channel Communications, Inc. 680,460 90
13,000 Dollar General Corporation 264,680 35
12,700 Genuine Parts Company 521,843 69
7,100 Hancock Fabrics, Inc. 47,144 6
14,400 Home Depot, Inc. 560,160 75
12,800 J.C. Penney Company, Inc. (Holding Co.) 673,024 89
12,300 Jones Apparel Group, Inc. 381,792 51
7,100 Kenneth Cole Productions, Inc. - Class "A" 220,952 29
20,200 Kimball International, Inc. - Class "B" 266,640 35
11,000 Lee Enterprises, Inc. 440,990 59
20,700 Leggett & Platt, Inc. 550,206 73
7,100 Liberty Corporation 261,351 35
5,000 Liz Claiborne, Inc. 198,800 26
6,800 Magna International, Inc. - Class "A" 478,312 64
29,700 McDonald's Corporation 824,175 110
30,800 Natuzzi SpA (ADR) 250,712 33
18,400 New York Times Company - Class "A" 573,160 76
10,200 Newell Rubbermaid, Inc. 243,168 32
10,000 OshKosh B'Gosh, Inc. - Class "A" 259,900 35
8,000 Outback Steakhouse, Inc. 361,920 48
46,600 Pearson PLC (ADR) 553,608 74
17,300 Talbots, Inc. 561,731 75
18,700 Tribune Company 657,866 87
31,700 Walt Disney Company 798,206 106
- ----------------------------------------------------------------------------------------------------------------------
11,244,116 1,494
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--8.5%
10,500 Brown-Forman Corporation - Class "B" 634,830 84
17,600 Coca-Cola Company 734,800 98
21,000 ConAgra Foods, Inc. 486,360 65
7,195 * Del Monte Foods Company 77,490 10
12,200 Diageo PLC (ADR) 723,460 96
7,100 Fomento Economico Mexicano SA de CV (ADR) 422,947 56
13,500 H.J. Heinz Company 478,170 64
8,400 Kimberly-Clark Corporation 525,756 70
13,600 Ruddick Corporation 347,208 46
28,700 Sara Lee Corporation 568,547 76
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE VALUE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
21,800 Tasty Baking Company $177,670 $24
13,600 UST, Inc. 620,976 82
11,900 Wal-Mart Stores, Inc. 573,580 76
- ----------------------------------------------------------------------------------------------------------------------
6,371,794 847
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.4%
7,300 Anadarko Petroleum Corporation 599,695 80
11,000 BP PLC (ADR) 686,180 91
11,200 Chevron Corporation 626,304 83
16,200 ConocoPhillips 931,338 124
13,500 Diamond Offshore Drilling, Inc. 721,305 96
6,503 Kerr-McGee Corporation 496,244 66
15,800 Marathon Oil Corporation 843,246 112
11,600 Royal Dutch Petroleum Company - NY Shares (ADR) 752,840 100
14,900 Tidewater, Inc. 567,988 75
13,200 Unocal Corporation 858,660 114
- ----------------------------------------------------------------------------------------------------------------------
7,083,800 941
- ----------------------------------------------------------------------------------------------------------------------
Financials--25.5%
13,300 A.G. Edwards, Inc. 600,495 80
4,400 ACE, Ltd. 197,340 26
14,600 Allstate Corporation 872,350 116
18,100 AmSouth Bancorporation 470,600 63
26,900 Amvescap PLC (ADR) 323,069 43
24,500 Aon Corporation 613,480 81
9,900 Assured Guaranty, Ltd. 231,264 31
32,300 Bank Mutual Corporation 357,238 47
15,992 Bank of America Corporation 729,395 97
25,000 Bank of New York Company, Inc. 719,500 96
21,450 Brascan Corporation - Class "A" 818,532 109
14,222 Cincinnati Financial Corporation 562,622 75
9,600 Comerica, Inc. 554,880 74
12,500 CRT Properties, Inc. (REIT) 341,250 45
43,100 Eagle Hospitality Properties Trust, Inc. 392,641 52
2,900 Endurance Specialty Holdings, Ltd. 109,678 15
10,100 Erie Indemnity Company - Class "A" 547,925 73
8,900 FBL Financial Group, Inc. - Class "A" 245,729 33
21,600 Hudson City Bancorp, Inc. 246,456 33
9,500 Jefferson-Pilot Corporation 478,990 64
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
20,500 JPMorgan Chase & Company $724,060 $96
16,000 KeyCorp 530,400 70
8,700 Lincoln National Corporation 408,204 54
17,700 MBNA Corporation 463,032 61
13,400 Merrill Lynch & Company, Inc. 737,134 98
12,300 Montpelier Re Holdings, Ltd. 425,334 56
13,200 Morgan Stanley 692,604 92
27,700 NewAlliance Bancshares, Inc. 389,185 52
12,900 North Fork Bancorporation, Inc. 362,361 48
6,800 One Liberty Properties, Inc. (REIT) 140,828 19
14,700 Plum Creek Timber Company, Inc. (REIT) 533,610 71
9,300 PNC Financial Services Group, Inc. 506,478 67
14,700 Protective Life Corporation 620,634 82
16,400 PXRE Group, Ltd. 413,608 55
21,900 Regions Financial Corporation 741,972 99
10,600 Sky Financial Group, Inc. 298,708 40
7,800 SunTrust Banks, Inc. 563,472 75
6,000 T. Rowe Price Group, Inc. 375,600 50
7,203 TD Banknorth, Inc. 214,649 28
10,700 Wells Fargo & Company 658,906 87
- ----------------------------------------------------------------------------------------------------------------------
19,214,213 2,553
- ----------------------------------------------------------------------------------------------------------------------
Health Care--5.7%
15,100 Abbott Laboratories 740,051 98
14,500 Bristol-Myers Squibb Company 362,210 48
11,600 GlaxoSmithKline PLC (ADR) 562,716 75
11,200 Johnson & Johnson 728,000 97
9,400 Novartis AG (ADR) 445,936 59
24,300 Pfizer, Inc. 670,194 89
23,500 Schering-Plough Corporation 447,910 60
4,328 * WellPoint, Inc. 301,402 40
- ----------------------------------------------------------------------------------------------------------------------
4,258,419 566
- ----------------------------------------------------------------------------------------------------------------------
Industrials--7.6%
7,000 A.O. Smith Corporation 186,970 25
8,200 Adesa, Inc. 178,514 24
900 Alexander & Baldwin, Inc. 41,715 6
11,200 Baldor Electric Company 272,384 36
12,200 Dover Corporation 443,836 59
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE VALUE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
15,300 Federal Signal Corporation $238,680 $32
6,200 General Dynamics Corporation 679,148 90
18,500 Honeywell International, Inc. 677,655 90
18,800 Masco Corporation 597,088 79
17,800 Norfolk Southern Corporation 551,088 73
20,500 Pall Corporation 622,380 83
13,700 Pitney Bowes, Inc. 596,635 79
4,700 SPX Corporation 216,106 29
5,900 Stewart & Stevenson Services, Inc. 133,694 18
5,100 Teleflex, Inc. 302,787 40
- ----------------------------------------------------------------------------------------------------------------------
5,738,680 763
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--4.9%
14,700 Automatic Data Processing, Inc. 616,959 82
24,300 AVX Corporation 294,516 39
1,943 * Freescale Semiconductor, Inc. - Class "B" 41,153 6
27,400 Hewlett-Packard Company 644,174 86
11,800 Intersil Corporation - Class "A" 221,486 29
20,400 Methode Electronics, Inc. - Class "A" 242,148 32
17,600 Motorola, Inc. 321,376 43
23,900 Nokia Corporation - Class "A" (ADR) 397,696 53
7,800 * palmOne, Inc. 232,206 31
8,400 Paychex, Inc. 273,336 36
25,000 * Planar Systems, Inc. 183,750 24
15,600 Woodhead Industries, Inc. 196,716 26
- ----------------------------------------------------------------------------------------------------------------------
3,665,516 487
- ----------------------------------------------------------------------------------------------------------------------
Materials--7.3%
8,900 Air Products & Chemicals, Inc. 536,670 71
10,900 Albemarle Corporation 397,523 53
14,300 Alcoa, Inc. 373,659 50
16,500 Compass Minerals International, Inc. 386,100 51
14,400 Du Pont (E.I.) de Nemours & Company 619,344 82
23,900 Glatfelter 296,360 39
12,400 Great Lakes Chemical Corporation 390,228 52
17,900 Lubrizol Corporation 751,979 100
9,700 MeadWestvaco Corporation 271,988 36
20,270 Myers Industries, Inc. 253,375 34
33,800 Sappi, Ltd. (ADR) 365,716 49
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials (continued)
22,100 Sonoco Products Company $585,650 $78
4,100 Vulcan Materials Company 266,459 35
- ----------------------------------------------------------------------------------------------------------------------
5,495,051 730
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--3.9%
2,745 ALLTEL Corporation 170,959 23
17,900 BellSouth Corporation 475,603 63
17,300 CT Communications, Inc. 225,765 30
12,732 D&E Communications, Inc. 123,500 16
17,100 Nippon Telegraph and Telephone Corporation (ADR) 367,137 49
18,900 SBC Communications, Inc. 448,875 60
4,800 SureWest Communications 123,120 16
6,600 Telephone & Data Systems, Inc. 269,346 36
6,600 Telephone & Data Systems, Inc. - Special Shares 253,044 34
14,418 Verizon Communications, Inc. 498,142 66
- ----------------------------------------------------------------------------------------------------------------------
2,955,491 393
- ----------------------------------------------------------------------------------------------------------------------
Utilities--4.8%
10,050 American States Water Company 295,169 39
11,200 KeySpan Corporation 455,840 61
12,800 MDU Resources Group, Inc. 360,575 48
21,900 NiSource, Inc. 541,587 72
12,300 Northwest Natural Gas Company 470,352 62
11,100 ONEOK, Inc. 362,415 48
14,800 Southwest Gas Corporation 377,548 50
14,100 United Utilities PLC (ADR) 337,413 45
13,400 Vectren Corporation 384,982 51
- ----------------------------------------------------------------------------------------------------------------------
3,585,881 476
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $53,944,282) 69,612,961 9,250
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--1.7%
Financials
16,100 Chubb Corporation, 7%, 2005 - Series "A" 518,742 69
7,000 Lehman Brothers Holdings, Inc., 6.25%,
2007 - Series "GIS" 178,500 24
2,800 State Street Corporation, 6.75%, 2006 604,484 80
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $1,128,421) 1,301,726 173
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE VALUE FUND
June 30, 2005
- ----------------------------------------------------------------------------------------------------------------------
Amount
Shares Invested
or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.5%
Telecommunication Services--.3%
7,500 Verizon South, Inc., 7%, 2041 - Series "F" $193,725 $26
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.2%
6,700 Entergy Louisiana, Inc., 7.6%, 2032 175,607 23
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $353,493) 369,332 49
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--4.4%
$3,300M ChevronTexaco Funding Corp., 3.02%, 7/5/05
(cost $3,298,892) 3,298,892 438
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $58,725,088) 99.1% 74,582,911 9,910
Other Assets, Less Liabilities .9 674,971 90
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $75,257,882 $10,000
======================================================================================================================
* Non-income producing
Summary of Abbreviations:
ADR American Depositary Receipts
REIT Real Estate Investment Trust
See notes to financial statements
This page intentionally left blank.
Statements of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
June 30, 2005
- -----------------------------------------------------------------------------------------------------------------------
CASH FOCUSED
BLUE CHIP MANAGEMENT DISCOVERY EQUITY
- -----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $135,179,399 $ 6,441,852 $120,948,704 $ 9,832,151
============ ============ ============ ============
At value (Note 1A) $172,211,908 $ 6,441,852 $131,888,342 $ 10,890,886
Cash 150,599 41,075 90,165 2,378
Receivables:
Investment securities sold 131,986 -- -- --
Interest and dividends 181,258 15,497 88,287 10,300
Trust shares sold 104,586 710 36,320 9,687
Other assets 18,216 1,454 12,835 1,105
------------ ------------ ------------ ------------
Total Assets 172,798,553 6,500,588 132,115,949 10,914,356
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 1,072,874 -- -- --
Trust shares redeemed 81,983 4,970 55,609 4,536
Accrued advisory fees 106,919 9,061 80,870 6,768
Accrued expenses 29,729 4,233 26,426 4,046
------------ ------------ ------------ ------------
Total Liabilities 1,291,505 18,264 162,905 15,350
------------ ------------ ------------ ------------
Net Assets $171,507,048 $ 6,482,324 $131,953,044 $ 10,899,006
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $176,484,137 $ 6,482,324 $129,804,274 $ 12,144,870
Undistributed net investment income 798,735 -- 17,334 34,359
Accumulated net realized gain (loss) on investments (42,808,333) -- (8,808,202) (2,338,958)
Net unrealized appreciation (depreciation) of investments 37,032,509 -- 10,939,638 1,058,735
------------ ------------ ------------ ------------
Total $171,507,048 $ 6,482,324 $131,953,044 $ 10,899,006
============ ============ ============ ============
Shares of beneficial interest outstanding (Note 2) 8,654,448 6,482,324 5,376,903 1,314,919
============ ============ ============ ============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $19.82 $1.00 $24.54 $8.29
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------
GOVERNMENT GROWTH HIGH YIELD
- --------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $ 21,027,930 $190,704,373 $ 71,971,160
============ ============ ============
At value (Note 1A) $ 21,145,414 $236,010,620 $ 68,438,098
Cash 124,821 2,244 360,400
Receivables:
Investment securities sold 1,518 716,877 --
Interest and dividends 121,016 193,457 1,352,041
Trust shares sold 27,433 108,741 56,110
Other assets 2,315 24,183 7,953
------------ ------------ ------------
Total Assets 21,422,517 237,056,122 70,214,602
------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 255,306 650,184 984,825
Trust shares redeemed 8,644 82,234 53,377
Accrued advisory fees 10,426 146,659 42,524
Accrued expenses 5,391 26,318 16,436
------------ ------------ ------------
Total Liabilities 279,767 905,395 1,097,162
------------ ------------ ------------
Net Assets $ 21,142,750 $236,150,727 $ 69,117,440
============ ============ ============
Net Assets Consist of:
Capital paid in $ 21,232,012 $188,223,079 $ 85,769,678
Undistributed net investment income 441,775 556,630 2,583,575
Accumulated net realized gain (loss) on investments (648,521) 2,064,771 (15,702,751)
Net unrealized appreciation (depreciation) of investments 117,484 45,306,247 (3,533,062)
------------ ------------ ------------
Total $ 21,142,750 $236,150,727 $ 69,117,440
============ ============ ============
Shares of beneficial interest outstanding (Note 2) 2,109,983 7,044,338 8,717,816
============ ============ ============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $10.02 $33.52 $7.93
============ ============ ============
See notes to financial statements
Statements of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
June 30, 2005
- -----------------------------------------------------------------------------------------------------------------------
TARGET TARGET
INTERNATIONAL INVESTMENT MATURITY MATURITY
SECURITIES GRADE 2007 2010
- -----------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $83,487,735 $35,961,965 $20,538,654 $15,019,243
============ ============ ============ ============
At value (Note 1A) $95,247,546 $37,633,821 $21,993,259 $17,168,520
Cash 39,474 326,368 196,398 258,464
Receivables:
Investment securities sold 1,160,878 -- -- --
Interest and dividends 150,355 580,206 -- --
Trust shares sold 22,866 9,655 2,770 --
Other assets 12,915 3,890 2,581 1,781
------------ ------------ ------------ ------------
Total Assets 96,634,034 38,553,940 22,195,008 17,428,765
------------ ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased 208,286 101,692 -- --
Trust shares redeemed 36,912 19,931 14,653 197,039
Variation margin on future contracts (Note 6). 264 -- -- --
Forward currency contracts (Note 6). 1,563 -- -- --
Accrued advisory fees 59,471 18,932 10,972 8,522
Accrued expenses 13,831 6,874 5,700 5,142
------------ ------------ ------------ ------------
Total Liabilities 320,327 147,429 31,325 210,703
------------ ------------ ------------ ------------
Net Assets $96,313,707 $38,406,511 $22,163,683 $17,218,062
============ ============ ============ ============
Net Assets Consist of:
Capital paid in $86,735,445 $37,529,063 $20,040,858 $14,627,107
Undistributed net investment income 341,222 461,682 613,171 400,180
Accumulated net realized gain (loss) on investments,
futures contracts and foreign currency transactions (2,658,412) (1,256,090) 55,049 41,498
Net unrealized appreciation of investments,
futures contracts and foreign currency transactions 11,895,452 1,671,856 1,454,605 2,149,277
------------ ------------ ------------ ------------
Total $96,313,707 $38,406,511 $22,163,683 $17,218,062
============ ============ ============ ============
Shares of beneficial interest outstanding (Note 2) 5,325,521 3,428,638 1,833,122 1,183,142
============ ============ ============ ============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $18.09 $11.20 $12.09 $14.55
============ ============ ============ ============
- -----------------------------------------------------------------------------------------
TARGET
MATURITY
2015 VALUE
- -----------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $17,720,391 $58,725,088
============ ============
At value (Note 1A) $20,123,291 $74,582,911
Cash 52,990 263,528
Receivables:
Investment securities sold -- 224,816
Interest and dividends -- 140,941
Trust shares sold 110,035 147,202
Other assets 1,656 6,634
------------ ------------
Total Assets 20,287,972 75,366,032
------------ ------------
Liabilities
Payables:
Investment securities purchased -- 38,043
Trust shares redeemed 71,108 17,133
Variation margin on future contracts (Note 6). -- --
Forward currency contracts (Note 6). -- --
Accrued advisory fees 9,741 46,094
Accrued expenses 10,090 6,880
------------ ------------
Total Liabilities 90,939 108,150
------------ ------------
Net Assets $20,197,033 $75,257,882
============ ============
Net Assets Consist of:
Capital paid in $17,497,998 $75,795,274
Undistributed net investment income 373,350 752,641
Accumulated net realized gain (loss) on investments,
futures contracts and foreign currency transactions (77,215) (17,147,856)
Net unrealized appreciation of investments,
futures contracts and foreign currency transactions 2,402,900 15,857,823
------------ ------------
Total $20,197,033 $75,257,882
============ ============
Shares of beneficial interest outstanding (Note 2) 1,368,214 5,453,116
============ ============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $14.76 $13.80
============ ============
See notes to financial statements
Statements of Operations
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 2005
- -----------------------------------------------------------------------------------------------------------------------
CASH FOCUSED
BLUE CHIP MANAGEMENT DISCOVERY EQUITY
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $ 55,092 $ 88,409 $ 88,858 $ 2,875
Dividends 1,453,276(a) -- 500,525 81,496
------------ ------------ ------------ ------------
Total income 1,508,368 88,409 589,383 84,371
------------ ------------ ------------ ------------
Expenses (Notes 1 and 4):
Advisory fees 648,089 25,682 477,861 40,201
Professional fees 15,819 5,223 23,518 4,920
Custodian fees and expenses 15,950 3,203 10,264 422
Reports and notices to shareholders 12,940 1,661 50,478 1,730
Registration fees 415 426 429 473
Trustees' fees 3,196 151 2,344 197
Other expenses 20,586 1,491 14,724 2,155
------------ ------------ ------------ ------------
Total expenses 716,995 37,837 579,618 50,098
Less: Expenses waived -- (13,108) -- --
Expenses paid indirectly (7,433) (751) (7,569) (94)
------------ ------------ ------------ ------------
Net expenses 709,562 23,978 572,049 50,004
------------ ------------ ------------ ------------
Net investment income 798,806 64,431 17,334 34,367
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments (Note 3)
Net realized gain (loss) on investments 4,097,427 -- 24,956,434 118,849
Net unrealized depreciation of investments (6,448,315) -- (24,979,070) (94,064)
------------ ------------ ------------ ------------
Net gain (loss) on investments (2,350,888) -- (22,636) 24,785
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (1,552,082) $ 64,431 $ (5,302) $ 59,152
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------
GOVERNMENT GROWTH HIGH YIELD
- --------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $ 522,610 $ 69,387 $ 2,976,875
Dividends -- 1,449,123(b) 4,226
------------ ------------ ------------
Total income 522,610 1,518,510 2,981,101
------------ ------------ ------------
Expenses (Notes 1 and 4):
Advisory fees 78,614 870,616 257,723
Professional fees 6,719 17,885 9,733
Custodian fees and expenses 4,817 32,819 5,111
Reports and notices to shareholders 2,437 12,552 4,154
Registration fees 465 429 426
Trustees' fees 450 4,913 1,482
Other expenses 4,947 24,757 10,572
------------ ------------ ------------
Total expenses 98,449 963,971 289,201
Less: Expenses waived (15,723) -- --
Expenses paid indirectly (1,908) (2,109) (4,330)
------------ ------------ ------------
Net expenses 80,818 961,862 284,871
------------ ------------ ------------
Net investment income 441,792 556,648 2,696,230
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments (Note 3)
Net realized gain (loss) on investments (26,605) 5,269,440 (133,673)
Net unrealized depreciation of investments (44,038) (5,716,520) (3,556,633)
------------ ------------ ------------
Net gain (loss) on investments (70,643) (447,080) (3,690,306)
------------ ------------ ------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 371,149 $ 109,568 $ (994,076)
============ ============ ============
(a) Net of $541 foreign taxes withheld
(b) Net of $1,014 foreign taxes withheld
See notes to financial statements
Statements of Operations
FIRST INVESTORS LIFE SERIES FUND
Six Months Ended June 30, 2005
- -----------------------------------------------------------------------------------------------------------------------
TARGET TARGET
INTERNATIONAL INVESTMENT MATURITY MATURITY
SECURITIES GRADE 2007 2010
- -----------------------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $ 67,635 $ 1,060,340 $ 695,779 $ 462,087
Dividends 990,818(c) -- -- --
------------ ------------ ------------ ------------
Total income 1,058,453 1,060,340 695,779 462,087
------------ ------------ ------------ ------------
Expenses (Notes 1 and 4):
Advisory fees 358,267 140,702 84,431 63,009
Professional fees 13,082 7,356 7,407 5,532
Custodian fees and expenses 65,346 3,662 1,290 1,294
Reports and notices to shareholders 5,084 2,918 2,267 2,074
Registration fees 438 473 503 475
Trustees' fees 1,917 687 482 361
Other expenses 15,215 8,690 3,955 3,089
------------ ------------ ------------ ------------
Total expenses 459,349 164,488 100,335 75,834
Less: Expenses waived -- (28,140) (16,886) (12,602)
Expenses paid indirectly (581) (2,885) (862) (1,326)
------------ ------------ ------------ ------------
Net expenses 458,768 133,463 82,587 61,906
------------ ------------ ------------ ------------
Net investment income 599,685 926,877 613,192 400,181
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments,
Futures Contracts and Foreign Currency
Transactions (Note 3):
Net realized gain (loss) on investments,
futures contracts and foreign currency transactions 3,994,051 (14,293) 76,727 42,076
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions (5,847,350) (214,664) (559,053) 53,453
------------ ------------ ------------ ------------
Net gain (loss) on investments, futures contracts
and foreign currency transactions (1,853,299) (228,957) (482,326) 95,529
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (1,253,614) $ 697,920 $ 130,866 $ 495,710
============ ============ ============ ============
- -----------------------------------------------------------------------------------------
TARGET
MATURITY
2015 VALUE
- -----------------------------------------------------------------------------------------
Investment Income
Income:
Interest $ 438,284 $ 43,983
Dividends -- 1,001,092(d)
------------ ------------
Total income 438,284 1,045,075
------------ ------------
Expenses (Notes 1 and 4):
Advisory fees 66,934 267,226
Professional fees 5,242 9,557
Custodian fees and expenses 497 7,394
Reports and notices to shareholders 1,838 2,516
Registration fees 465 426
Trustees' fees 319 1,518
Other expenses 3,575 8,668
------------ ------------
Total expenses 78,870 297,305
Less: Expenses waived (13,387) --
Expenses paid indirectly (561) (4,914)
------------ ------------
Net expenses 64,922 292,391
------------ ------------
Net investment income 373,362 752,684
------------ ------------
Realized and Unrealized Gain (Loss) on Investments,
Futures Contracts and Foreign Currency
Transactions (Note 3):
Net realized gain (loss) on investments,
futures contracts and foreign currency transactions -- 1,640,990
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions 837,696 (721,752)
------------ ------------
Net gain (loss) on investments, futures contracts
and foreign currency transactions 837,696 919,238
------------ ------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 1,211,058 $ 1,671,922
============ ============
(c) Net of $122,891 foreign taxes withheld
(d) Net of $4,091 foreign taxes withheld
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
----------------------------- ----------------------------
1/1/04 to 1/1/05 to 1/1/04 to 1/1/05 to
12/31/04 6/30/05 12/31/04 6/30/05
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 798,806 $ 1,741,299 $ 64,431 $ 55,893
Net realized gain on investments 4,097,427 10,838,283 -- --
Net unrealized appreciation (depreciation) of investments (6,448,315) (64,363) -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations (1,552,082) 12,515,219 64,431 55,893
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income (1,741,326) (1,124,257) (64,431) (55,893)
------------ ------------ ------------ ------------
Trust Share Transactions *
Proceeds from shares sold 1,954,027 6,495,193 567,141 1,124,541
Reinvestment of dividends 1,741,326 1,124,257 64,431 55,893
Cost of shares redeemed (9,806,080) (16,709,475) (1,507,253) (3,462,880)
------------ ------------ ------------ ------------
Net increase (decrease) from trust share transactions (6,110,727) (9,090,025) (875,681) (2,282,446)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (9,404,135) 2,300,937 (875,681) (2,282,446)
Net Assets
Beginning of period 180,911,183 178,610,246 7,358,005 9,640,451
------------ ------------ ------------ ------------
End of period+ $171,507,048 $180,911,183 $ 6,482,324 $ 7,358,005
============ ============ ============ ============
+Includes undistributed net investment income of $ 798,735 $ 1,741,255 $ -- $ --
============ ============ ============ ============
*Trust Shares Issued and Redeemed
Sold 98,765 343,481 567,141 1,124,541
Issued for dividends reinvested 86,936 58,191 64,431 55,893
Redeemed (496,719) (883,254) (1,507,253) (3,462,880)
------------ ------------ ------------ ------------
Net increase (decrease) in trust shares outstanding (311,018) (481,582) (875,681) (2,282,446)
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
DISCOVERY FOCUSED EQUITY
----------------------------- ----------------------------
1/1/04 to 1/1/05 to 1/1/04 to 1/1/05 to
12/31/04 6/30/05 12/31/04 6/30/05
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $ 17,334 $ (212,612) $ 34,367 $ 127,388
Net realized gain on investments 24,956,434 10,066,821 118,849 313,132
Net unrealized appreciation (depreciation) of investments (24,979,070) 5,410,823 (94,064) 166,745
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations (5,302) 15,265,032 59,152 607,265
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income -- -- (127,391) (54,970)
------------ ------------ ------------ ------------
Trust Share Transactions *
Proceeds from shares sold 2,886,040 6,520,454 633,644 1,567,402
Reinvestment of dividends -- -- 127,391 54,970
Cost of shares redeemed (4,788,010) (9,756,825) (750,226) (1,192,873)
------------ ------------ ------------ ------------
Net increase (decrease) from trust share transactions (1,901,970) (3,236,371) 10,809 429,499
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (1,907,272) 12,028,661 (57,430) 981,794
Net Assets
Beginning of period 133,860,316 121,831,655 10,956,436 9,974,642
------------ ------------ ------------ ------------
End of period+ $131,953,044 $133,860,316 $ 10,899,006 $ 10,956,436
============ ============ ============ ============
+Includes undistributed net investment income of $ 17,334 $ -- $ 34,359 $ 127,383
============ ============ ============ ============
*Trust Shares Issued and Redeemed
Sold 121,640 297,928 77,083 198,923
Issued for dividends reinvested -- -- 15,423 6,871
Redeemed (202,126) (442,827) (91,321) (152,226)
------------ ------------ ------------ ------------
Net increase (decrease) in trust shares outstanding (80,486) (144,899) 1,185 53,568
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------------------------
GOVERNMENT GROWTH
----------------------------- ----------------------------
1/1/04 to 1/1/05 to 1/1/04 to 1/1/05 to
12/31/04 6/30/05 12/31/04 6/30/05
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 441,792 $ 895,493 $ 556,648 $ 1,767,264
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions (26,605) 137,103 5,269,440 23,194,326
Net unrealized appreciation (depreciation)
of investments, futures contracts and foreign
currency transactions (44,038) (249,244) (5,716,520) (1,571,340)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations 371,149 783,352 109,568 23,390,250
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income (1,077,184) (1,273,369) (1,767,273) (1,133,241)
------------ ------------ ------------ ------------
Trust Share Transactions *
Proceeds from shares sold 980,759 1,270,227 5,340,295 10,514,449
Reinvestment of dividends 1,077,184 1,273,369 1,767,273 1,133,241
Cost of shares redeemed (1,660,412) (4,767,073) (8,251,074) (16,659,347)
------------ ------------ ------------ ------------
Net increase (decrease) from trust share transactions 397,531 (2,223,477) (1,143,506) (5,011,657)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (308,504) (2,713,494) (2,801,211) 17,245,352
Net Assets
Beginning of period 21,451,254 24,164,748 238,951,938 221,706,586
------------ ------------ ------------ ------------
End of period+ $ 21,142,750 $ 21,451,254 $236,150,727 $238,951,938
============ ============ ============ ============
+Includes undistributed net investment income of $ 441,775 $ 1,077,167 $ 556,630 $ 1,767,255
============ ============ ============ ============
*Trust Shares Issued and Redeemed
Sold 97,979 123,718 161,463 338,150
Issued for dividends reinvested 109,137 125,827 52,912 36,113
Redeemed (164,533) (464,551) (249,464) (534,700)
------------ ------------ ------------ ------------
Net increase (decrease) in trust shares outstanding 42,583 (215,006) (35,089) (160,437)
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL
HIGH YIELD SECURITIES
----------------------------- ----------------------------
1/1/04 to 1/1/05 to 1/1/04 to 1/1/05 to
12/31/04 6/30/05 12/31/04 6/30/05
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 2,696,230 $ 5,016,403 $ 599,685 $ 856,056
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions (133,673) (702,609) 3,994,051 11,272,138
Net unrealized appreciation (depreciation)
of investments, futures contracts and foreign
currency transactions (3,556,633) 2,104,867 (5,847,350) 567,584
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations (994,076) 6,418,661 (1,253,614) 12,695,778
------------ ------------ ------------ ------------
Dividends to Shareholders
Net investment income (5,064,757) (4,775,010) (1,261,502) (1,067,417)
------------ ------------ ------------ ------------
Trust Share Transactions *
Proceeds from shares sold 2,616,816 4,634,310 2,195,475 3,456,144
Reinvestment of dividends 5,064,757 4,775,010 1,261,502 1,067,417
Cost of shares redeemed (2,454,471) (5,262,498) (3,505,673) (7,012,252)
------------ ------------ ------------ ------------
Net increase (decrease) from trust share transactions 5,227,102 4,146,822 (48,696) (2,488,691)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (831,731) 5,790,473 (2,563,812) 9,139,670
Net Assets
Beginning of period 69,949,171 64,158,698 98,877,519 89,737,849
------------ ------------ ------------ ------------
End of period+ $ 69,117,440 $ 69,949,171 $ 96,313,707 $ 98,877,519
============ ============ ============ ============
+Includes undistributed net investment income of $ 2,583,575 $ 4,952,102 $ 341,222 $ 1,003,039
============ ============ ============ ============
*Trust Shares Issued and Redeemed
Sold 322,800 559,779 121,793 208,735
Issued for dividends reinvested 625,279 597,623 68,822 64,109
Redeemed (302,984) (636,250) (194,087) (420,968)
------------ ------------ ------------ ------------
Net increase (decrease) in trust shares outstanding 645,095 521,152 (3,472) (148,124)
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE TARGET MATURITY 2007
----------------------------- ----------------------------
1/1/04 to 1/1/05 to 1/1/04 to 1/1/05 to
12/31/04 6/30/05 12/31/04 6/30/05
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 926,877 $ 1,878,725 $ 613,192 $ 1,308,006
Net realized gain (loss) on investments (14,293) 259,112 76,727 490,890
Net unrealized appreciation (depreciation) of investments (214,664) (673,498) (559,053) (1,504,575)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 697,920 1,464,339 130,866 294,321
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income (2,163,678) (2,097,082) (1,308,023) (1,516,607)
Net realized gains -- -- (490,887) (726,748)
------------ ------------ ------------ ------------
Total distributions (2,163,678) (2,097,082) (1,798,910) (2,243,355)
------------ ------------ ------------ ------------
Trust Share Transactions *
Proceeds from shares sold 2,080,104 4,069,314 199,335 428,006
Reinvestment of distributions 2,163,678 2,097,082 1,798,910 2,243,355
Cost of shares redeemed (2,083,550) (5,136,033) (1,526,633) (5,289,759)
------------ ------------ ------------ ------------
Net increase (decrease) from trust share transactions 2,160,232 1,030,363 471,612 (2,618,398)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 694,474 397,620 (1,196,432) (4,567,432)
Net Assets
Beginning of period 37,712,037 37,314,417 23,360,115 27,927,547
------------ ------------ ------------ ------------
End of period+ $ 38,406,511 $ 37,712,037 $ 22,163,683 $ 23,360,115
============ ============ ============ ============
+Includes undistributed net investment income of $ 461,682 $ 1,698,483 $ 613,171 $ 1,308,002
============ ============ ============ ============
*Trust Shares Issued and Redeemed
Sold 186,617 352,958 16,314 32,748
Issued for distributions reinvested 197,056 182,992 150,789 171,248
Redeemed (185,442) (448,492) (124,614) (398,760)
------------ ------------ ------------ ------------
Net increase (decrease) in trust shares outstanding 198,231 87,458 42,489 (194,764)
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 TARGET MATURITY 2015
----------------------------- ----------------------------
1/1/04 to 1/1/05 to 1/1/04 to 1/1/05 to
12/31/04 6/30/05 12/31/04 6/30/05
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 400,181 $ 785,767 $ 373,362 $ 614,828
Net realized gain (loss) on investments 42,076 166,404 -- (26,960)
Net unrealized appreciation (depreciation) of investments 53,453 (318,129) 837,696 574,004
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 495,710 634,042 1,211,058 1,161,872
------------ ------------ ------------ ------------
Distributions to Shareholders
Net investment income (785,755) (783,712) (614,835) (462,639)
Net realized gains (162,643) (65,459) -- --
------------ ------------ ------------ ------------
Total distributions (948,398) (849,171) (614,835) (462,639)
------------ ------------ ------------ ------------
Trust Share Transactions *
Proceeds from shares sold 1,076,109 2,122,408 3,319,800 5,140,909
Reinvestment of distributions 948,398 849,171 614,835 462,639
Cost of shares redeemed (1,042,488) (2,667,229) (1,022,588) (1,903,241)
------------ ------------ ------------ ------------
Net increase (decrease) from trust share transactions 982,019 304,350 2,912,047 3,700,307
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 529,331 89,221 3,508,270 4,399,540
Net Assets
Beginning of period 16,688,731 16,599,510 16,688,763 12,289,223
------------ ------------ ------------ ------------
End of period+ $ 17,218,062 $ 16,688,731 $ 20,197,033 $ 16,688,763
============ ============ ============ ============
+Includes undistributed net investment income of $ 400,180 $ 785,754 $ 373,350 $ 614,823
============ ============ ============ ============
*Trust Shares Issued and Redeemed
Sold 74,185 142,404 234,166 372,203
Issued for distributions reinvested 67,262 57,260 44,264 33,500
Redeemed (72,049) (179,464) (71,673) (138,793)
------------ ------------ ------------ ------------
Net increase (decrease) in trust shares outstanding 69,398 20,200 206,757 266,910
============ ============ ============ ============
See notes to financial statements
Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------
VALUE
---------------------------
1/1/04 to 1/1/05 to
12/31/04 6/30/05
- -----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $ 752,684 $ 1,158,936
Net realized gain on investments 1,640,990 2,648,718
Net unrealized appreciation (depreciation) of investments (721,752) 5,839,144
------------ ------------
Net increase in net assets resulting from operations 1,671,922 9,646,798
------------ ------------
Dividends to Shareholders
Net investment income (1,158,946) (1,064,819)
------------ ------------
Trust Share Transactions *
Proceeds from shares sold 5,914,275 7,105,633
Reinvestment of dividends 1,158,946 1,064,819
Cost of shares redeemed (1,785,724) (4,993,061)
------------ ------------
Net increase from trust share transactions 5,287,497 3,177,391
------------ ------------
Net increase in net assets 5,800,473 11,759,370
Net Assets
Beginning of period 69,457,409 57,698,039
------------ ------------
End of period+ $ 75,257,882 $ 69,457,409
============ ============
+Includes undistributed net investment income of $ 752,641 $ 1,158,903
============ ============
*Trust Shares Issued and Redeemed
Sold 435,100 564,764
Issued for dividends 84,656 86,151
Redeemed (131,791) (398,270)
------------ ------------
Net increase in trust shares outstanding 387,965 252,645
============ ============
See notes to financial statements.
This page intentionally left blank.
Notes to Financial Statements
June 30, 2005
1. Significant Accounting Policies--First Investors Life Series Fund (the
"Life Series Fund"), a Massachusetts business trust, is registered under
the Investment Company Act of 1940 (the "1940 Act"), as an open-ended
management investment company. The Life Series Fund operates as a series
fund, issuing shares of beneficial interest in the Blue Chip, Cash
Management, Discovery, Focused Equity, Government, Growth, High Yield,
International Securities, Investment Grade, Target Maturity 2007, Target
Maturity 2010, Target Maturity 2015, and Value Funds (each a "Fund"). Each
Fund accounts separately for its assets, liabilities and operations. The
objective of each Fund is as follows:
Blue Chip Fund seeks high total investment return consistent with the
preservation of capital.
Cash Management Fund seeks to earn a high rate of current income consistent
with the preservation of capital and maintenance of liquidity.
Discovery Fund seeks long-term growth of capital.
Focused Equity Fund seeks capital appreciation.
Government Fund seeks to achieve a significant level of current income
which is consistent with security and liquidity of principal.
Growth Fund seeks long-term capital appreciation.
High Yield Fund primarily seeks high current income and secondarily seeks
capital appreciation.
International Securities Fund primarily seeks long-term capital growth and
secondarily a reasonable level of current income.
Investment Grade Fund seeks to generate a maximum level of income
consistent with investment in investment grade debt securities.
Target Maturity 2007, Target Maturity 2010 and Target Maturity 2015 Funds
seek a predictable compounded investment return for investors who hold
their Fund shares until the Fund's maturity, consistent with the
preservation of capital.
Value Fund seeks total return.
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 market 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
market ("OTC"), 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 on quotes furnished by a market maker for such
securities. Securities may also be priced by a pricing service approved by
the Life Series Fund's Board of Trustees (the "Board"). The pricing service
considers security type, rating, market condition and yield data as well as
market quotations, prices provided by market makers and other available
information in determining value. Short-term debt securities that mature in
60 days or less are valued at amortized cost.
The Cash Management Fund values its portfolio securities in accordance with
the amortized cost method of valuation under Rule 2a-7 of the 1940 Act.
Amortized cost is an approximation of the market value of an instrument,
whereby the difference between its acquisition cost and the market value at
maturity is amortized on a straight-line basis over the remaining life of
the instrument. The effect of changes in the market value of a security as
a result of fluctuating interest rates is not taken into account and thus
the amortized cost method of valuation may result in the value of a
security being higher or lower than its actual market value.
The Funds monitor for significant events occurring after the close of
foreign markets but prior to the close of trading on the New York Stock
Exchange that could have a material impact on the value of any foreign
securities that are held by the Funds. Examples of such events include
natural disasters, political events, issuer-specific developments such as
bankruptcies and significant fluctuations in securities markets. If the
Valuation Committee decides that such events warrant using fair value
estimates for foreign securities, it will take such events into
consideration in determining the fair values of such securities. If market
quotations or prices are not readily available or determined to be
unreliable, the securities will be valued at fair value as determined in
good faith pursuant to procedures adopted by the Board. At June 30, 2005,
the High Yield Fund held seven securities that were fair valued by the
Valuation Committee with an aggregate value of $151,409 representing .2% of
the Fund's net assets. At June 30, 2005, the Life International Fund held
one security that was fair valued by the Valuation Committee with a value
of $50 representing 0% of the Fund's net assets. For valuation purposes,
where applicable, quotations of foreign securities in foreign currencies
are translated to U.S. dollar equivalents using the foreign exchange
quotation in effect.
B. Federal Income Tax--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 each Fund from all, or substantially all, federal
income taxes. At December 31, 2004, capital loss carryovers were as follows:
Notes to Financial Statements (continued)
June 30, 2005
Year Capital Loss Carryovers Expire
-------------------------------------------------------------------------------------------
Fund Total 2007 2008 2009 2010 2011 2012
- ---- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Blue Chip $42,858,020 $ -- $ -- $16,256,415 $22,469,579 $4,132,026 $ --
Discovery 33,643,433 -- -- 18,119,077 15,524,356 -- --
Focused Equity 2,420,997 -- 738,389 248,878 1,083,303 350,427 --
Government 598,049 140,904 133,450 -- -- 272,546 51,149
Growth 1,982,265 -- -- -- -- 1,982,265 --
High Yield 15,569,078 566,369 1,503,018 3,751,289 4,221,351 4,736,272 790,779
International
Securities 6,511,971 -- -- -- 6,511,971 -- --
Investment Grade 1,198,169 -- 626,718 37,096 17,173 517,182 --
Target Maturity 2015 63,450 -- 3,919 13,453 4,285 14,833 26,960
Value 18,781,623 -- -- 6,069,407 11,439,916 1,272,300 --
C. Foreign Currency Translations--The accounting records of the
International Securities Fund are maintained in U.S. dollars. Portfolio
securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at the date of valuation.
Purchases and sales of investment securities, dividend income and certain
expenses are translated to U.S. dollars at the rates of exchange prevailing
on the respective dates of such transactions.
The International Securities Fund does not isolate that portion of gains
and losses on investments which is due to changes in foreign exchange rates
from that which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains and
losses from investments.
Net realized and unrealized gains and losses on foreign currency
transactions include gains and losses from the sales of foreign currency
and gains and losses on accrued foreign dividends and related withholding
taxes.
D. Distributions to Shareholders--Distributions to shareholders from net
investment income and net realized capital gains are generally declared and
paid annually on all Funds, except for the Cash Management Fund which
declares dividends from the total of net investment income (plus or minus
all realized short-term gains and losses on investments) daily and pays
monthly. Dividends from net investment income and capital gain
distributions are determined in accordance with income tax regulations
which may differ from accounting principles generally accepted in the
United States of America. These differences are primarily due to differing
treatments for foreign currency transactions, capital loss carryforwards
and deferral of wash sales.
E. Expense Allocation--Expenses directly charged or attributable to a Fund
are paid from the assets of that Fund. General expenses of the Life Series
Fund are allocated
among and charged to the assets of each Fund on a fair and equitable basis,
which may be based on the relative assets of each Fund or the nature of the
services performed and relative applicability to each Fund.
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 accounting principles generally accepted in the United
States of America 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 securities, 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. Bond premiums and discounts are accreted or amortized using the
interest method. Interest income on zero-coupon bonds and stepbonds is
accrued daily at the effective interest rate. For the six months ended June
30, 2005, The Bank of New York, custodian for all the Funds, except the
International Securities Fund, has provided credits in the amount of
$30,235 against custodian charges based on the uninvested cash balances of
the Funds. The Funds also reduced expenses through brokerage service
arrangements. For the six months ended June 30, 2005, the Funds' expenses
were reduced by $5,088 under these arrangements.
2. Trust Shares--The Declaration of Trust permits the issuance of an
unlimited number of no par value shares of beneficial interest, of one or
more Funds. Shares in the Funds are acquired through the purchase of
variable annuity or variable life insurance contracts sold by First
Investors Life Insurance Company.
3. Security Transactions--For the six months ended June 30, 2005, purchases
and sales (including paydowns in Government Fund) of securities and
long-term U.S. Government obligations (excluding short-term U.S. Government
obligations, repurchase agreements, foreign currencies and short-term
securities), were as follows:
Notes to Financial Statements (continued)
June 30, 2005
Long-Term US
Securities Government Obligations
---------------------------- -----------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases of Sales Purchases of Sales
- ---- ------------ ------------ ------------ ------------
Blue Chip $ 45,968,462 $ 55,987,658 $ -- $ --
Discovery 107,144,239 112,075,167 -- --
Focused Equity 2,974,425 3,093,201 -- --
Government -- -- 7,422,435 7,093,246
Growth 88,855,252 91,523,821 -- --
High Yield 12,032,813 12,024,613 -- --
International Securities 40,753,313 40,843,651 -- --
Investment Grade 3,274,957 1,643,269 -- 9,378
Target Maturity 2007 -- -- -- 1,778,968
Target Maturity 2010 -- -- 443,048 387,263
Target Maturity 2015 -- -- 2,284,587 --
Value 10,803,117 5,702,303 -- --
At June 30, 2005, aggregate cost and net unrealized appreciation
(depreciation) of securities for federal income tax purposes were as
follows:
Net
Gross Gross Unrealized
Aggregate Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
- ---- ------------ ------------ ------------ ------------
Blue Chip $139,227,140 $34,077,823 $1,093,055 $32,984,768
Discovery 121,069,905 10,818,437 -- 10,818,437
Focused Equity 9,868,961 1,039,473 17,548 1,021,925
Government 21,027,930 117,484 -- 117,484
Growth 191,926,778 44,728,823 644,981 44,083,842
High Yield 72,100,057 -- 3,661,959 (3,661,959)
International Securities* 83,620,363 11,861,171 233,712 11,627,459
Investment Grade 36,512,241 1,145,943 24,363 1,121,580
Target Maturity 2007 20,560,319 1,432,940 -- 1,432,940
Target Maturity 2010 15,019,771 2,148,749 -- 2,148,749
Target Maturity 2015 17,734,157 2,389,134 -- 2,389,134
Value 58,732,311 15,850,600 -- 15,850,600
*Aggregate Cost includes PFIC income of $55,578.
4. Advisory Fee and Other Transactions With Affiliates--Certain officers
and trustees of the Life Series Fund are officers and directors of its
investment adviser, First Investors Management Company, Inc. ("FIMCO")
and/or its transfer agent,
Administrative Data Management Corp. Trustees of the Life Series Fund who
are not "interested persons" of the Life Series Fund as defined in the 1940
Act are remunerated by the Funds. For the six months ended June 30, 2005,
total trustee fees accrued by the Funds amounted to $18,017.
The Investment Advisory Agreement provides as compensation to FIMCO an
annual fee, payable monthly, at the rate of .75% on the first $250 million
of each Fund's average daily net assets, declining by .03% on each $250
million thereafter, down to .66% on average daily net assets over $750
million. For the six months ended June 30, 2005, FIMCO has voluntarily
waived 20% of the .75% annual fee on the first $250 million of average
daily net assets of the Government, Investment Grade, Target Maturity 2007,
Target Maturity 2010 and Target Maturity 2015 Funds. In addition, FIMCO
has voluntarily waived $13,108 in advisory fees on the Cash Management Fund
to limit the Fund's overall expense ratio to .70%. For the six months ended
June 30, 2005, total advisory fees accrued to FIMCO were $3,379,355 of
which $99,846 was waived as noted above.
Wellington Management Company, LLP serves as investment subadviser to the
Focused Equity Fund, the Growth Fund and the International Securities Fund.
Effective March 8, 2005, Paradigm Capital Management, Inc. serves as
investment subadviser to the Discovery Fund. The subadvisers are paid by
FIMCO and not by the Funds.
5. Restricted Securities--Certain restricted securities are exempt from the
registration requirements under Rule 144A of the Securities Act of 1933 and
may only be sold to qualified institutional investors. At June 30, 2005,
the Government Fund held one 144A security with a value of $1,113,032
representing 5.3% of the Fund's net assets, the High Yield Fund held
twenty-two 144A securities with an aggregate value of $10,269,000
representing 14.9% of the Fund's net assets and Investment Grade Fund held
eight 144A securities with an aggregate value of $2,460,155 representing
6.4% of the Fund's net assets. Certain restricted securities are exempt
from the registration requirements under Section 4(2) of the Securities Act
of 1933 and may be sold to qualified investors. At June 30, 2005, the Cash
Management Fund held four Section 4(2) securities with an aggregate value
of $998,101 representing 15.4% of the Fund's net assets. These securities
are valued as set forth in Note 1A.
6. Forward Currency Contracts and Future Contracts--A forward currency
contract is an obligation to purchase or sell a specific currency for an
agreed-upon price at a future date. When the International Securities Fund
purchases or sells foreign securities it customarily enters into a forward
currency contract to minimize the foreign exchange risk between the trade
date and the settlement date of such
Notes to Financial Statements (continued)
June 30, 2005
transactions. The International Securities Fund could be exposed to risk if
counter parties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably.
Forward currency contracts are "marked-to-market" daily at the applicable
translation rate and the resulting unrealized gains or losses are reflected
in the Fund's assets.
The International Securities Fund had the following forward currency
contracts outstanding at June 30, 2005:
Unrealized
Contracts to Buy Foreign Currency In Exchange for Settlement Date Loss
- --------------------------------- --------------- --------------- ----------
17,616 Australian Dollars $ 13,493 7/1/05 $ (65)
========== ----------
Unrealized
Contracts to Sell Foreign Currency In Exchange for Settlement Date Gain (Loss)
- ---------------------------------- --------------- --------------- ----------
6,881,227 Japanese Yen $ 62,676 7/4/05 $ 577
850,440 Canadian Dollars 692,276 7/5/05 (2,075)
---------- ----------
$754,952 (1,498)
========== ----------
Net Unrealized Loss on Forward Currency Contracts $(1,563)
==========
The International Securities Fund may purchase or sell stock index futures
contracts as a hedge against changes in market conditions. Initial margin
deposits required upon entering into futures contracts are satisfied by the
segregation of specific securities or cash, and/or by securing a standby
letter of credit from a major commercial bank, as collateral, for the
account of the broker (the Fund's agent in acquiring the futures position).
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gains or losses by
"marking-to-market" on a daily basis to reflect the market value of the
contract at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Fund's basis in the contract. Risk includes the
possibility of an illiquid market and that a change in the value of the
contract may not correlate with changes in the securities being hedged. At
June 30, 2005, U.S. Treasury Bills with a market value of $224,000 were
pledged to cover margin requirements for futures contracts. Open futures
contracts at June 30, 2005 were as follows:
Unrealized
Appreciation
Contracts/Delivery Month/Commitment (Depreciation)
- ----------------------------------- ------------
15 CAC 40 Index/September 2005 Buy $ 5,030
3 DAX 30 Index/September 2005 Buy 848
3 IBEX PLUS/July 2005/Buy 5,516
2 MIB 30/September 2005/Buy (377)
25 S&P CAN 60/September 2005/Buy 63,359
2 TSE Index/September 2005/Buy 5,016
------------
Total Net Unrealized Appreciation on Futures Contracts $79,392
============
7. High Yield Credit Risk--The High Yield Fund's investment in high yield
securities, whether rated or unrated, may be considered speculative and
subject to greater market fluctuations and risks of loss of income and
principal than lower yielding, higher-rated, fixed-income securities. The
risk of loss due to default by the issuer may be significantly greater for
the holders of high yielding securities, because such securities are
generally unsecured and are often subordinated to other creditors of the
issuer.
Financial Highlights
FIRST INVESTORS LIFE SERIES FUND
The following table sets forth the per share operating performance data for
a trust share outstanding, total return, ratios to average net assets and
other supplemental data for each period indicated.
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Net Realized
Value, Investment and Unrealized Total from Net Net
Beginning Income Gain (Loss) on Investment Investment Realized Total
of Period (Loss) Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------
2000 $32.14 $ .08 $(1.74) $(1.66) $ .12 $1.93 $2.05
2001 28.43 .08 (5.18) (5.10) .08 2.81 2.89
2002 20.44 .11 (5.36) (5.25) .09 -- .09
2003 15.10 .12 3.80 3.92 .11 -- .11
2004 18.91 .19 1.20 1.39 .12 -- .12
2005(a) 20.18 .10 (.26) (.16) .20 -- .20
- ----------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
- --------------------
2000 $ 1.00 $.058 -- $ .058 $.058 -- $.058
2001 1.00 .037 -- .037 .037 -- .037
2002 1.00 .012 -- .012 .012 -- .012
2003 1.00 .005 -- .005 .005 -- .005
2004 1.00 .007 -- .007 .007 -- .007
2005(a) 1.00 .009 -- .009 .009 -- .009
- ----------------------------------------------------------------------------------------------------
DISCOVERY FUND
- --------------
2000 $33.96 $(.02) $ .57 $ .55 -- $4.01 $4.01
2001 30.50 (.07) (6.22) (6.29) -- 2.78 2.78
2002 21.43 (.08) (5.73) (5.81) -- -- --
2003 15.62 (.06) 6.19 6.13 -- -- --
2004 21.75 (.04) 2.82 2.78 -- -- --
2005(a) 24.53 .04 (.03) .01 -- -- --
- ----------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
2000 $10.25 $ .02 $(1.14) $(1.12) $ -- -- $ --
2001 9.13 .02 (.47) (.45) .02 -- .02
2002 8.66 .01 (2.44) (2.43) .02 -- .02
2003 6.21 .04 1.68 1.72 .01 -- .01
2004 7.92 .10 .36 .46 .04 -- .04
2005(a) 8.34 .03 .02 .05 .10 -- .10
- ----------------------------------------------------------------------------------------------------
GOVERNMENT FUND
- ---------------
2000 $ 9.92 $ .69 $ .29 $ .98 $ .68 -- $ .68
2001 10.22 .52 .36 .88 .65 -- .65
2002 10.45 .45 .33 .78 .52 -- .52
2003 10.71 .55 (.22) .33 .45 -- .45
2004 10.59 .54 (.17) .37 .58 -- .58
2005(a) 10.38 .25 (.08) .17 .53 -- .53
- ----------------------------------------------------------------------------------------------------
GROWTH FUND
- -----------
2000 $43.06 $ .01 $ .02 $ .03 $ .05 $3.24 $3.29
2001 39.80 .06 (5.11) (5.05) .02 4.02 4.04
2002 30.71 .12 (6.94) (6.82) .06 -- .06
2003 23.83 .16 6.75 6.91 .12 -- .12
2004 30.62 .25 3.04 3.29 .16 -- .16
2005(a) 33.75 .08 (.06) .02 .25 -- .25
- ----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
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 Net
Value, Net Assets Investment Net Portfolio
End of Total End of Period Income Investment Turnover
Period Return* (in millions) Expenses (Loss) Expenses Income Rate
- -----------------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------
2000 $28.43 (5.75)% $272 .79% .26% N/A N/A 146%
2001 20.44 (19.27) 220 .81 .38 N/A N/A 105
2002 15.10 (25.80) 148 .81 .58 N/A N/A 138
2003 18.91 26.19 179 .83 .71 N/A N/A 96
2004 20.18 7.37 181 .83 .99 N/A N/A 100
2005(a) 19.82 (.82) 172 .83+ .91+ N/A N/A 27
- -----------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
- --------------------
2000 $ 1.00 5.92% $ 9 .70% 5.76% .89% 5.57% N/A
2001 1.00 3.77 12 .70 3.59 .86 3.43 N/A
2002 1.00 1.22 14 .70 1.20 .98 .92 N/A
2003 1.00 .54 10 .70 .55 .95 .30 N/A
2004 1.00 .71 7 .70 .69 1.04 .35 N/A
2005(a) 1.00 .94 6 .70+ 1.88+ 1.10+ 1.48+ N/A
- -----------------------------------------------------------------------------------------------------------
DISCOVERY FUND
- --------------
2000 $30.50 (.22)% $157 .81% (.07)% N/A N/A 193%
2001 21.43 (21.12) 126 .83 (.33) N/A N/A 163
2002 15.62 (27.11) 89 .83 (.43) N/A N/A 130
2003 21.75 39.24 122 .85 (.35) N/A N/A 111
2004 24.53 12.78 134 .83 (.18) N/A N/A 93
2005(a) 24.54 .04 132 .91+ .02+ N/A N/A 88
- -----------------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
2000 $ 9.13 (10.93)% $ 8 .81% .30% N/A N/A 210%
2001 8.66 (4.90) 9 .91 .28 N/A N/A 201
2002 6.21 (28.09) 7 1.04 .13 N/A N/A 127
2003 7.92 27.73 10 .95 .67 N/A N/A 43
2004 8.34 5.87 11 .96 1.23 N/A N/A 50
2005(a) 8.29 .57 11 .93+ .65+ N/A N/A 28
- -----------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
- ---------------
2000 $10.22 10.54% $ 11 .75% 6.80% .90% 6.65% 131%
2001 10.45 8.98 17 .66 6.09 .81 5.94 52
2002 10.71 7.79 25 .78 5.39 .93 5.24 101
2003 10.59 3.18 24 .75 4.98 .90 4.83 83
2004 10.38 3.62 21 .76 4.81 .91 4.66 62
2005(a) 10.02 1.73 21 .79+ 4.86+ .94+ 4.71+ 37
- -----------------------------------------------------------------------------------------------------------
GROWTH FUND
- -----------
2000 $39.80 .03% $278 .80% .03% N/A N/A 74%
2001 30.71 (13.36) 241 .81 .19 N/A N/A 72
2002 23.83 (22.24) 176 .82 .43 N/A N/A 69
2003 30.62 29.18 222 .83 .60 N/A N/A 74
2004 33.75 10.77 239 .83 .79 N/A N/A 76
2005(a) 33.52 .07 236 .83+ .48+ N/A N/A 39
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Realized
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
HIGH YIELD FUND
- ---------------
2000 $11.19 $1.08 $(1.72) $ (.64) $1.11 -- $1.11
2001++ 9.44 .89 (1.14) (.25) 1.06 -- 1.06
2002 8.13 .70 (.54) .16 .89 -- .89
2003 7.40 .63 1.16 1.79 .69 -- .69
2004 8.50 .62 .17 .79 .63 -- .63
2005(a) 8.66 .31 (.41) (.10) .63 -- .63
- ----------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
- -----------------------------
2000 $24.62 $ .11 $(2.68) $(2.57) $ .13 $2.18 $2.31
2001 19.74 .12 (2.95) (2.83) .24 1.26 1.50
2002 15.41 .08 (2.91) (2.83) .08 -- .08
2003 12.50 .10 3.91 4.01 .13 -- .13
2004 16.38 .09 2.28 2.37 .20 -- .20
2005(a) 18.55 .24 (.46) (.22) .24 -- .24
- ----------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
- ---------------------
2000 $10.97 $ .76 $ .22 $ .98 $ .71 -- $ .71
2001++ 11.24 .64 .21 .85 .73 -- .73
2002 11.36 .63 .22 .85 .64 -- .64
2003 11.57 .61 .34 .95 .65 -- .65
2004 11.87 .59 (.12) .47 .67 -- .67
2005(a) 11.67 .30 (.10) .20 .67 -- .67
- ----------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
- -------------------------
2000 $11.94 $ .69 $ 1.17 $ 1.86 $ .68 $ -- $ .68
2001 13.12 .68 .31 .99 .68 -- .68
2002 13.43 .74 1.20 1.94 .69 -- .69
2003 14.68 .77 (.50) .27 .74 .14 .88
2004 14.07 .77 (.61) .16 .80 .38 1.18
2005(a) 13.05 .35 (.29) .06 .74 .28 1.02
- ----------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
- -------------------------
2000 $11.85 .64 $ 1.74 $ 2.38 $ .68 $ -- $ .68
2001 13.55 .65 .03 .68 .64 -- .64
2002 13.59 .65 1.82 2.47 .65 -- .65
2003 15.41 .72 (.28) .44 .67 -- .67
2004 15.18 .72 (.13) .59 .73 .06 .79
2005(a) 14.98 .33 .08 .41 .70 .14 .84
- ----------------------------------------------------------------------------------------------------
TARGET MATURITY 2015 FUND
- -------------------------
2000 $ 9.51 .45 $ 1.92 $ 2.37 $.03 -- .03
2001 11.85 .47 (.36) 0.11 .39 -- .39
2002 11.57 .38 2.23 2.61 .47 -- .47
2003 13.71 .50 (.06) .44 .41 -- .41
2004 13.74 .53 .61 1.14 .51 -- .51
2005(a) 14.37 .26 .65 .91 .52 -- .52
- ----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
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 Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Period Return* (in millions) Expenses Income Expenses Income Rate
- -----------------------------------------------------------------------------------------------------------
HIGH YIELD FUND
- ---------------
2000 $ 9.44 (6.36)% $ 55 .82% 9.97% N/A N/A 30%
2001++ 8.13 (3.47) 50 .83 10.12 N/A N/A 32
2002 7.40 2.25 50 .86 9.34 N/A N/A 13
2003 8.50 26.14 64 .85 8.34 N/A N/A 30
2004 8.66 9.94 70 .85 7.55 N/A N/A 33
2005(a) 7.93 (1.33) 69 .84+ 7.83+ N/A N/A 18
- -----------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
- -----------------------------
2000 $19.74 (11.67)% $119 .97% .55% N/A N/A 132%
2001 15.41 (14.79) 97 1.03 .73 N/A N/A 125
2002 12.50 (18.43) 72 1.09 .63 N/A N/A 129
2003 16.38 32.52 90 1.08 .74 N/A N/A 119
2004 18.55 14.58 99 1.02 .94 N/A N/A 114
2005(a) 18.09 (1.21) 96 .96+ 1.25+ N/A N/A 45
- -----------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
- ---------------------
2000 $11.24 9.51% $ 21 .68% 6.87% .83% 6.72% 25%
2001++ 11.36 7.86 28 .68 6.36 .83 6.21 13
2002 11.57 7.86 34 .74 6.02 .89 5.87 14
2003 11.87 8.60 37 .73 5.29 .88 5.14 14
2004 11.67 4.04 38 .72 5.03 .87 4.88 16
2005(a) 11.20 1.86 38 .72+ 4.92+ .87+ 4.77+ 5
- -----------------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
- -------------------------
2000 $13.12 16.44% $ 29 .67% 5.77% .82% 5.62% 9%
2001 13.43 7.76 32 .66 5.24 .81 5.09 3
2002 14.68 15.09 33 .73 5.02 .88 4.87 1
2003 14.07 1.90 28 .72 4.89 .87 4.74 0
2004 13.05 1.12 23 .73 5.14 .88 4.99 0
2005(a) 12.09 0.56 22 .74+ 5.45+ .89+ 5.30+ 0
- -----------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
- -------------------------
2000 $13.55 21.06% $ 11 .70% 5.72% .85% 5.57% 15%
2001 13.59 5.15 14 .67 5.16 .82 5.01 2
2002 15.41 18.88 18 .78 4.82 .93 4.67 3
2003 15.18 2.84 17 .74 4.54 .89 4.39 1
2004 14.98 3.96 17 .75 4.70 .90 4.55 4
2005(a) 14.55 2.95 17 .75+ 4.75+ .90+ 4.60+ 2
- -----------------------------------------------------------------------------------------------------------
TARGET MATURITY 2015 FUND
- -------------------------
2000 $11.85 25.01% $ 2 .72% 5.38% .87% 5.23% 11%
2001 11.57 0.85 4 .67 5.21 .82 5.06 31
2002 13.71 23.36 9 .88 4.70 1.03 4.55 1
2003 13.74 3.24 12 .80 4.27 .95 4.12 3
2004 14.37 8.47 17 .75 4.34 .90 4.19 2
2005(a) 14.76 6.56 20 .73+ 4.17+ .88+ 4.02+ 0
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Investment Operations from
------------------------------------- ----------------------
Net Asset Net Realized
Value, Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income Investments Operations Income Gain Distributions
- -----------------------------------------------------------------------------------------------------
VALUE FUND+++
- ----------
2000 $17.55 $ .29 $ (.29) $ -- $ .30 $ .86 $1.16
2001 16.39 .27 (3.53) (3.26) .30 .12 .42
2002 12.71 .32 (3.02) (2.70) .27 -- .27
2003 9.74 .22 2.35 2.57 .32 -- .32
2004 11.99 .23 1.71 1.94 .22 -- .22
2005(a) 13.71 .13 .18 .31 .22 -- .22
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
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 Assets Net Net Portfolio
End of Total End of Period Investment Investment Turnover
Period Return* (in millions) Expenses Income Expenses Income Rate
- -----------------------------------------------------------------------------------------------------------
VALUE FUND+++
- ----------
2000 $16.39 (.59)% $ 81 .76% 1.84% .81% 1.79% 50%
2001 12.71 (20.29) 66 .82 1.88 N/A N/A 50
2002 9.74 (21.60) 45 .97 2.72 N/A N/A 71
2003 11.99 27.59 58 .83 2.19 N/A N/A 33
2004 13.71 16.39 69 .84 1.87 N/A N/A 20
2005(a) 13.80 2.30 75 .83+ 2.10+ N/A N/A 8
- -----------------------------------------------------------------------------------------------------------
* The effect of fees and charges incurred at the separate account level
are not reflected in these performance figures
** Net of expenses waived or assumed by the investment adviser (Note 4)
+ Annualized
++ Prior to January 1, 2001, the High Yield Fund and Investment Grade
Fund did not amortize premiums on debt securities. The per share data
and ratios prior to 2001 have not been restated. The cumulative effect
of this accounting change had no impact on the total net assets of the
Funds.
+++ Prior to December 31, 2002, known as Utilities Income Fund
(a) For the period January 1, 2005 to June 30, 2005
See notes to financial statements
Report of Independent Registered Public
Accounting Firm
To the Shareholders and Trustees of
First Investors Life Series Fund
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the thirteen Funds comprising
First Investors Life Series Fund, as of June 30, 2005, the related
statements of operations, the statements of changes in net assets, and the
financial highlights for each of the periods indicated thereon. These
financial statements and financial highlights are the responsibility of the
Life Series 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 the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
June 30, 2005, by correspondence with the custodian and brokers. Where
brokers have not replied to our confirmation requests, we have carried out
other appropriate auditing procedures. 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 each of the thirteen Funds comprising First Investors Life Series Fund,
as of June 30, 2005, and the results of their operations, changes in their
net assets and their financial highlights for the periods presented, in
conformity with accounting principles generally accepted in the United
States of America.
Tait, Weller & Baker LLP
Philadelphia, Pennsylvania
August 2, 2005
FIRST INVESTORS LIFE SERIES FUND
Trustees
- -----------------------
Robert M. Grohol
Kathryn S. Head
Rex R. Reed
Herbert Rubinstein
James M. Srygley
John T. Sullivan
Robert F. Wentworth
Officers
- -----------------------
Kathryn S. Head
President
Joseph I. Benedek
Treasurer
Larry R. Lavoie
Chief Compliance Officer
Mark S. Spencer
Assistant Treasurer
Carol Lerner Brown
Assistant Secretary
FIRST INVESTORS LIFE SERIES FUND
Shareholder Information
- -----------------------
Investment Adviser
First Investors Management Company, Inc.
95 Wall Street
New York, NY 10005
Subadviser
(Focused Equity Fund, Growth Fund and International Securities Fund only)
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
Subadviser
(Discovery Fund Only)
Paradigm Capital Management, Inc.
Nine Elk Street
Albany, NY 12207
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Custodian
(International Securities Fund only)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Administrative Data Management Corp.
Raritan Plaza I - 8th Floor
Edison, NJ 08837-3620
Independent Registered
Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103
Legal Counsel
Kirkpatrick & Lockhart
Nicholson Graham LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
The Cash Management Fund is a money market fund and seeks to maintain a
stable net asset value of $1.00 per share. However, there can be no
assurance that the Fund will be able to do so or achieve its investment
objective. An investment in the Fund is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation (FDIC) or any other government
agency.
It is the Fund's practice to mail only one copy of its annual and
semi-annual reports to all family members who reside in the same household.
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.
The Statement of Additional Information includes additional information
about the Fund's trustees and is available, without charge, upon request in
writing or by calling 800-423-4026.
A description of the policies and procedures that the Fund uses to vote
proxies relating to a portfolio's securities is available, without charge,
upon request by calling toll free 800-423-4026 or can be viewed online or
downloaded from the EDGAR database on the Securities and Exchange
Commission's ("SEC") internet website at http://www.sec.gov. In addition,
information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, will be
available, without charge, upon request in writing or by calling
800-423-4026 and on the SEC's internet website at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC on
Form N-Q for the first and third quarters of each fiscal year. The Fund's
Form N-Q will be available on the SEC's website at http://www.sec.gov; and
may also be reviewed and copied at the SEC's Public Reference Room in
Washington D.C. Information on the operation of the Public Reference Room
may be obtained by calling 800-SEC-0330. The schedule of portfolio holdings
will also be available, without charge, upon request in writing or by
calling 800-423-4026.
NOTES
NOTES
Item 2. Code of Ethics
Not applicable
Item 3. Audit Committee Financial Expert
Not applicable
Item 4. Principal Accountant Fees and Services
Not applicable
Item 5. Audit Committee of Listed Registrants
Not applicable
Item 6. Schedule of Investments
Schedule is included as part of the report to
stockholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies & Procedures for
Closed-End Management Investment Companies
Not applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Companies and Affiliated Purchasers
Not applicable
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedure by which shareholders
may recommend nominees to the Registrant's Board of
Directors/Trustees.
Item 11. Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal
Financial Officer have concluded that the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective, based on their evaluation of these
disclosure controls and procedures as of a date within 90 days of the
filing date of this report.
(b) There were no significant changes in the Registrant's internal
controls or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Item 12. Exhibits
(a) Code of Ethics - Previously filed on the Registrant's Form N-CSR
on September 8, 2004
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
(c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 - Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
First Investors Life Series Fund
(Registrant)
By /S/ KATHRYN S. HEAD
Kathryn S. Head
President and Principal Executive Officer
Date: September 8, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities and
on the dates indicated.
First Investors Life Series Fund
(Registrant)
By /S/ JOSEPH I. BENEDEK
Joseph I. Benedek
Treasurer and Principal Financial Officer
Date: September 8, 2005