UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM N-CSR
--------
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)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
1-212-858-8000
DATE OF FISCAL YEAR END: DECEMBER 31, 2003
DATE OF REPORTING PERIOD: DECEMBER 31, 2003
Item 1. Reports to Stockholders
The 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
ANNUAL REPORT
December 31, 2003
Portfolio Manager's Letter
FIRST INVESTORS LIFE BLUE CHIP FUND
Dear Investor:
This is the annual report for the First Investors Life Blue Chip Fund for
the year ended December 31, 2003. During the year, the Fund's return on a
net asset value basis was 26.2% and the Fund declared dividends of 11 cents
per share.
The Fund's performance was largely driven by stocks that benefited from
improving economic conditions, solid performance of large-cap stocks and
sector allocation decisions.
The Fund's performance was helped by holdings in a number of sectors. As
the year unfolded and the economy continued to improve, the Fund increased
its exposure to cyclical sectors, such as technology and industrials. These
sectors posted strong returns, with the Fund's technology holdings
performing particularly well. The Fund also benefited from solid stock
selection in the telecommunications and health care sectors. In addition,
the Fund's performance was aided by its overweight position in gold mining
stocks within the materials sector.
The Fund's overall performance during the reporting period was hurt by
underweight positions in the utilities and consumer discretionary sectors,
as these sectors posted solid returns.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ DENNIS T. FITZPATRICK
Dennis T. Fitzpatrick
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE BLUE CHIP FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Blue Chip Fund and the Standard & Poor's 500 Index.
BLUE CHIP FUND
GRAPH PLOTS
As of December 31, 2003
LIFE SERIES S&P 500
BLUE CHIP FUND INDEX
DEC-93 $10,000 $10,000
DEC-94 9,855 10,132
DEC-95 13,205 13,940
DEC-96 16,047 17,140
DEC-97 20,334 22,859
DEC-98 24,127 29,337
DEC-99 30,237 35,510
DEC-00 28,497 32,276
DEC-01 23,004 28,439
DEC-02 17,069 22,154
DEC-03 21,540 28,508
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 26.19%
Five Years (2.24%)
Ten Years 7.98%
The graph compares a $10,000 investment in the First Investors Life Blue
Chip Fund beginning 12/31/93 with a theoretical investment in the Standard
& Poor's 500 Index (the "Index"). The Index is an unmanaged
capitalization-weighted index of 500 stocks designed to measure performance
of the broad domestic economy through changes in the aggregate market value
of such funds, which represent all major industries. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table it is assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Standard & Poor's 500 Index figures are from Standard & Poor's and all
other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE BLUE CHIP FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.4%
Consumer Discretionary--12.3%
7,800 * American Axle & Manufacturing Holdings, Inc. $315,276 $18
13,400 Autoliv, Inc. 504,510 28
11,300 * Bed Bath & Beyond, Inc. 489,855 27
10,500 Best Buy Company, Inc. 548,520 31
22,100 Clear Channel Communications, Inc. 1,034,943 58
9,900 Colgate-Palmolive Company 495,495 28
27,514 * Comcast Corporation - Class "A" 904,385 51
19,400 * Comcast Corporation - Special Class "A" 606,832 34
12,000 Dollar General Corporation 251,880 14
11,100 * eBay, Inc. 716,949 40
7,100 Gannett Company, Inc. 633,036 35
39,800 Gap, Inc. 923,758 52
16,100 GTECH Holdings Corporation 796,789 44
9,300 Harley-Davidson, Inc. 442,029 25
51,300 Home Depot, Inc. 1,820,637 102
10,200 * Kohl's Corporation 458,388 26
6,300 Lear Corporation 386,379 22
47,100 * Liberty Media Corporation - Class "A" 560,019 31
14,800 Lowe's Companies, Inc. 819,772 46
19,500 Mattel, Inc. 375,765 21
33,500 McDonald's Corporation 831,805 46
41,300 Newell Rubbermaid, Inc. 940,401 53
7,500 Omnicom Group, Inc. 654,975 37
18,000 Reebok International, Ltd. 707,760 40
29,700 Target Corporation 1,140,480 64
74,800 * Time Warner, Inc. 1,345,652 75
17,500 TJX Companies, Inc. 385,875 21
38,900 Viacom, Inc. - Class "B" 1,726,382 97
50,200 Walt Disney Company 1,171,166 65
- ----------------------------------------------------------------------------------------------------------------------
21,989,713 1,231
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.6%
27,200 Altria Group, Inc. 1,480,224 83
16,800 Anheuser-Busch Companies, Inc. 885,024 50
35,200 Coca-Cola Company 1,786,400 100
15,300 * Costco Wholesale Corporation 568,854 32
26,600 CVS Corporation 960,792 54
10,300 General Mills, Inc. 466,590 26
18,700 Gillette Company 686,851 38
6,700 Kellogg Company 255,136 14
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples (continued)
13,300 Kimberly-Clark Corporation $785,897 $44
26,500 * Kroger Company 490,515 27
15,900 Pepsi Bottling Group, Inc. 384,462 22
42,800 PepsiCo, Inc. 1,995,336 112
24,700 Procter & Gamble Company 2,467,036 138
35,500 Sara Lee Corporation 770,705 43
59,100 Wal-Mart Stores, Inc. 3,135,255 176
- ----------------------------------------------------------------------------------------------------------------------
17,119,077 959
- ----------------------------------------------------------------------------------------------------------------------
Energy--6.0%
7,100 Apache Corporation 575,810 32
13,100 BP PLC (ADR) 646,485 36
15,900 ChevronTexaco Corporation 1,373,601 77
15,173 ConocoPhillips 994,894 56
9,400 EOG Resources, Inc. 433,998 24
87,700 ExxonMobil Corporation 3,595,700 202
24,900 Halliburton Company 647,400 36
14,000 Occidental Petroleum Corporation 591,360 33
18,000 Schlumberger, Ltd. 984,960 55
36,200 * Transocean, Inc. 869,162 49
- ----------------------------------------------------------------------------------------------------------------------
10,713,370 600
- ----------------------------------------------------------------------------------------------------------------------
Financials--19.4%
42,100 ACE, Ltd. 1,743,782 98
36,800 American Express Company 1,774,864 99
45,100 American International Group, Inc. 2,989,228 167
15,900 Aon Corporation 380,646 21
30,900 Bank of America Corporation 2,485,287 139
19,700 Bank of New York Company, Inc. 652,464 37
17,700 Bank One Corporation 806,943 45
250 * Berkshire Hathaway, Inc. - Class "B" 703,750 39
12,100 Chubb Corporation 824,010 46
99,100 Citigroup, Inc. 4,810,314 269
9,000 Eaton Vance Corporation 329,760 18
31,100 Fannie Mae 2,334,366 131
21,500 FleetBoston Financial Corporation 938,475 53
10,500 Goldman Sachs Group, Inc. 1,036,665 58
10,800 GreenPoint Financial Corporation 381,456 21
35,300 J.P. Morgan Chase & Company 1,296,569 73
13,400 Marsh & McLennan Companies, Inc. 641,726 36
36,200 MBNA Corporation 899,570 50
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financials (continued)
17,700 Mellon Financial Corporation $568,347 $32
24,000 Merrill Lynch & Company, Inc. 1,407,600 79
20,300 Morgan Stanley 1,174,761 66
13,300 State Street Corporation 692,664 39
45,000 U.S. Bancorp 1,340,100 75
53,000 UnumProvident Corporation 835,810 47
18,200 Wachovia Corporation 847,938 47
18,600 Washington Mutual, Inc. 746,232 42
34,000 Wells Fargo & Company 2,002,260 112
- ----------------------------------------------------------------------------------------------------------------------
34,645,587 1,939
- ----------------------------------------------------------------------------------------------------------------------
Health Care--14.1%
29,900 Abbott Laboratories 1,393,340 78
32,900 * Amgen, Inc. 2,033,220 114
7,600 * Barr Laboratories, Inc. 584,820 33
20,300 * Boston Scientific Corporation 746,228 42
14,400 Cardinal Health, Inc. 880,704 49
15,600 Eli Lilly & Company 1,097,148 61
7,600 * Forest Laboratories, Inc. 469,680 26
4,000 * Genetech, Inc. 374,280 21
8,200 Guidant Corporation 493,640 28
55,000 Johnson & Johnson 2,841,300 159
14,600 McKesson Corporation 469,536 26
31,300 Medtronic, Inc. 1,521,493 85
31,700 Merck & Company, Inc. 1,464,540 82
47,700 * Orthodontic Centers of America, Inc. 383,985 21
151,640 Pfizer, Inc. 5,357,441 300
27,200 * Province Healthcare Company 435,200 24
7,400 Teva Pharmaceutical Industries, Ltd. (ADR) 419,654 24
22,300 UnitedHealth Group, Inc. 1,297,414 73
12,300 * Varian Medical Systems, Inc. 849,930 48
13,200 * Watson Pharmaceuticals, Inc. 607,200 34
33,200 Wyeth 1,409,340 79
- ----------------------------------------------------------------------------------------------------------------------
25,130,093 1,407
- ----------------------------------------------------------------------------------------------------------------------
Industrials--10.8%
17,700 3M Company 1,505,031 84
13,200 American Power Conversion Corporation 322,740 18
11,900 Avery Dennison Corporation 666,638 37
10,200 Caterpillar, Inc. 846,804 47
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
57,200 * Cendant Corporation $1,273,844 $71
8,000 Danaher Corporation 734,000 41
10,100 Emerson Electric Company 653,975 37
6,400 FedEx Corporation 432,000 24
142,100 General Electric Company 4,402,258 246
14,700 Honeywell International, Inc. 491,421 28
15,600 ITT Industries, Inc. 1,157,676 65
18,100 Lockheed Martin Corporation 930,340 52
34,400 Masco Corporation 942,904 53
9,000 Northrop Grumman Corporation 860,400 48
36,800 Tyco International, Ltd. 975,200 55
11,200 Union Pacific Corporation 778,176 44
10,100 United Parcel Service, Inc. - Class "B" 752,955 42
17,500 United Technologies Corporation 1,658,475 93
- ----------------------------------------------------------------------------------------------------------------------
19,384,837 1,085
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--19.3%
6,500 * Amdocs, Ltd. 146,120 8
16,700 Analog Devices, Inc. 762,355 43
40,400 * Applied Materials, Inc. 906,980 51
53,000 * Applied Micro Circuits Corporation 316,940 18
16,000 Automatic Data Processing, Inc. 633,760 36
26,800 * Checkpoint Systems, Inc. 506,788 28
155,000 * Cisco Systems, Inc. 3,764,950 211
19,900 * Computer Sciences Corporation 880,177 49
21,600 * Comverse Technology, Inc. 379,944 21
57,500 * Dell, Inc. 1,952,700 109
55,200 * EMC Corporation 713,184 40
25,000 First Data Corporation 1,027,250 58
61,800 Hewlett-Packard Company 1,419,546 79
135,800 Intel Corporation 4,372,760 245
26,400 International Business Machines Corporation 2,446,752 137
7,100 * Intuit, Inc. 375,661 21
16,400 * Jabil Circuit, Inc. 464,120 26
4,800 Maxim Integrated Products, Inc. 239,040 13
197,300 Microsoft Corporation 5,433,642 304
34,700 Motorola, Inc. 488,229 27
42,200 Nokia Corporation - Class "A" (ADR) 717,400 40
70,200 * Nortel Networks Corporation 296,946 17
20,000 * NVIDIA Corporation 465,000 26
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
85,800 * Oracle Corporation $1,132,560 $63
12,000 QUALCOMM, Inc. 647,160 36
10,700 * Symantec Corporation 370,755 21
26,500 Symbol Technologies, Inc. 447,585 25
48,948 * Taiwan Semiconductor Manufacturing Co.,
Ltd. (ADR) 501,227 28
48,300 Texas Instruments, Inc. 1,419,054 80
17,500 * Veritas Software Corporation 650,300 36
46,500 * Western Digital Corporation 548,235 31
- ----------------------------------------------------------------------------------------------------------------------
34,427,120 1,927
- ----------------------------------------------------------------------------------------------------------------------
Materials--2.7%
21,700 Alcoa, Inc. 824,600 46
46,500 * Coeur d'Alene Mines Corporation 268,770 15
14,600 Dow Chemical Company 606,922 34
18,100 Du Pont (E.I.) de Nemours & Company 830,609 47
16,500 International Paper Company 711,315 40
1,300 * International Steel Group, Inc. 50,635 3
19,800 Newmont Mining Corporation 962,478 54
14,600 Praxair, Inc. 557,720 31
- ----------------------------------------------------------------------------------------------------------------------
4,813,049 270
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.8%
56,500 BellSouth Corporation 1,598,950 89
31,000 China Mobile, Ltd. (ADR) 481,430 27
27,800 * Nextel Communications, Inc. - Class "A" 780,068 44
44,900 Verizon Communications, Inc. 1,575,092 88
22,800 Vodafone Group PLC (ADR) 570,912 32
- ----------------------------------------------------------------------------------------------------------------------
5,006,452 280
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE BLUE CHIP FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.4%
9,300 Dominion Resources, Inc. $593,619 $33
10,500 Entergy Corporation 599,865 34
12,400 Exelon Corporation 822,864 46
23,400 ONEOK, Inc. 516,672 29
- ----------------------------------------------------------------------------------------------------------------------
2,533,020 142
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $132,217,131) 175,762,318 9,840
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT
AGENCY OBLIGATIONS--1.6%
$1,100M Fannie Mae, 1%, 1/26/04 1,099,236 62
1,800M Freddie Mac, 1.02%, 1/7/04 1,799,694 101
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government Agency Obligations
(cost $2,898,930) 2,898,930 163
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $135,116,061) 100.0% 178,661,248 10,003
Excess of Liabilities Over Other Assets .0 (51,002) (3)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $178,610,246 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
Dear Investor:
This is the annual report for the First Investors Life Cash Management Fund
for the year ended December 31, 2003. During the year, the Fund's return
was 0.54%. The Fund maintained a $1.00 net asset value per share throughout
the year.
The Fund's performance was largely driven by the low interest rate
environment. Short-term interest rates moved generally lower through the
first half of 2003 as economic growth remained uncertain and concerns
regarding deflation troubled the market. During the second half of the
year, short-term interest rates moved higher, but their average rate
remained well below the average rate during the first half of the year.
The Fund responded to the historically low short-term interest rates by
maintaining a relatively long weighted average maturity. The yield curve
remained positively sloped during most of the year and offered
opportunities for incremental return by investing in securities with longer
maturities. The Fund effectively used corporate bonds and notes, floating
rate securities and various types of callable securities to realize
incremental return. The Fund continued to mitigate credit risk by generally
limiting its corporate security investments to shorter maturities and
smaller position sizes. In addition, the Fund invested a large portion of
its assets in U.S. government and agency securities and maintained about 8
percent of its assets in domestic bank obligations.
Although money market funds are relatively conservative vehicles, there can
be no assurance that they will be able to maintain a stable net asset value
of $1.00 per share. Money market mutual funds are not insured by the
Federal Deposit Insurance Corporation (FDIC) or any other government
agency.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ MICHAEL J. O'KEEFE
Michael J. O'Keefe
Portfolio Manager
January 31, 2004
Portfolio of Investments
FIRST INVESTORS LIFE CASH MANAGEMENT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES--53.4%
$300M 3M Co., 1/9/04 1.00% $299,933 $311
300M Anheuser-Busch Co., Inc., 1/13/04+ 1.01 299,899 311
283M Archer-Daniels-Midland Co., 2/26/04+ 1.05 282,538 293
500M Bell Atlantic New Jersey, Inc., 2/1/04 1.15 501,966 521
300M BellSouth Corp., 1/8/04+ 1.02 299,940 311
300M Clorox Co., 1/27/04 1.02 299,779 311
300M Dow Jones & Co., Inc., 2/5/2004+ 1.04 299,697 311
200M Du Pont (E.I.) de Nemours & Co., 1/27/04 1.04 199,850 207
300M Gannett Co., Inc., 1/12/04+ 1.04 299,905 311
200M Merck & Co., Inc., 1/5/04 1.01 199,978 207
300M Merrill Lynch & Co., Inc., 1/9/04 1.00 299,933 311
300M National Rural Utilities Cooperative
Finance Corp., 1/26/04 1.07 299,777 311
300M New York Times Co., Inc., 1/15/04 1.02 299,881 311
400M Pfizer, Inc., 1/21/04+ 1.02 399,773 415
300M Proctor & Gamble Co., 1/14/04+ 1.01 299,891 311
260M Prudential Funding Corp., 1/30/04 1.02 259,786 270
302M W.W. Grainger, Inc., 1/28/04 1.01 301,771 313
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Notes (cost $5,144,297) 5,144,297 5,336
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--28.1%
Fannie Mae:
350M 1/7/04 1.04 349,939 363
300M 1/16/04 1.05 299,869 311
300M 10/1/04 1.50 300,000 311
250M 12/21/04 1.50 250,000 259
200M Federal Home Loan Bank, 1/12/04 1.20 200,237 208
Freddie Mac:
150M 5/20/04 1.30 151,107 157
295M 11/3/04 1.33 295,000 306
300M 11/16/04 1.45 300,000 311
415M 11/16/04 1.49 414,922 430
150M 11/19/04 1.51 149,990 156
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations
(cost $2,711,064) 2,711,064 2,812
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Interest $10,000 of
Amount Security Rate* Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES--7.8%
$300M Fannie Mae, 9/10/04 1.11% $300,000 $311
250M Federal Farm Credit Bank, 2/26/04 1.07 249,989 259
200M Student Loan Marketing Association, 1/9/04 1.12 200,003 208
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Floating Rate Notes (cost $749,992) 749,992 778
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--6.2%
U.S. Treasury Bills:
300M 1/2/04 .92 299,992 311
300M 1/22/04 .85 299,851 311
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $599,843) 599,843 622
- ----------------------------------------------------------------------------------------------------------------------
BANKERS' ACCEPTANCES--3.7%
355M Chase Manhattan Bank, NA,
2/6/04 (cost $354,609) 1.10 354,609 368
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $9,559,805)++ 99.2% 9,559,805 9,916
Other Assets, Less Liabilities .8 80,646 84
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,640,451 $10,000
======================================================================================================================
* The interest rates shown are the effective rates at the time of purchase by the Fund. The interest rates on
floating rate notes are adjusted periodically and the rates shown are the rates in effect at December 31, 2003.
+ See Note 5
++ Aggregate cost for federal income tax purposes is the same.
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE DISCOVERY FUND
Dear Investor:
This is the annual report for the First Investors Life Discovery Fund for
the year ended December 31, 2003. During the year, the Fund's return on a
net asset value basis was 39.2%.
The primary factors that drove the Fund's performance were the improving
economy, a strong rebound of small-cap stocks and the Fund's sector
allocation choices.
As in the early stages of past economic recoveries, small-cap stocks
outperformed larger-cap stocks for the year. During the previous three
years, the small-cap growth segment had been particularly hard-hit, and
given the substantial decline, the segment had more of an opportunity to
recover its standing. The technology and health care sectors were the
leaders within the small-cap segment.
On a relative basis, the Fund underperformed the Russell 2000 Index for the
year. The primary reason was the Fund's focus on investing in companies
that were profitable and had reasonable valuations. The Fund's underweight
positions in more speculative, higher risk companies, which ultimately
performed well during the year, hurt its relative performance. The Fund's
beta (a measure of volatility) was less than that of its benchmark over the
course of the year.
Concerns about the viability of the economic recovery, as well as high
valuations of some companies, resulted in an underweight position in the
technology sector. Although the Fund benefited from many of its individual
health care holdings, the decision to underweight the biotechnology
sub-sector hurt relative performance, as these stocks were among the
strongest performers of the year. Stock selection in the industrials sector
also hurt relative performance, as several of these holdings performed
poorly.
On the positive side, the financials sector was the biggest contributor to
relative performance due to the Fund's overweight position and better stock
selection. Our overweight decision was based on the view that small banks
would benefit from the low interest rate environment. Also, we believed
that property and casualty companies would gain from improved pricing.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ ALLEN KLEE
Allen Klee
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE DISCOVERY FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Discovery Fund and the Russell 2000 Index.
DISCOVERY FUND
GRAPH PLOTS
As of December 31, 2003
RUSSELL 2000
DISCOVERY FUND INDEX
DEC-93 $10,000 $10,000
DEC-94 9,747 9,682
DEC-95 12,207 12,219
DEC-96 13,731 14,241
DEC-97 16,043 17,408
DEC-98 16,532 17,019
DEC-99 21,156 20,653
DEC-00 21,110 20,050
DEC-01 16,651 20,571
DEC-02 12,137 16,358
DEC-03 16,900 24,094
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 39.24%
Five Years 0.44%
Ten Years 5.39%
The graph compares a $10,000 investment in the First Investors Life
Discovery Fund beginning 12/31/93 with a theoretical investment in the
Russell 2000 Index (the "Index"). The Index consists of the smallest 2,000
companies in the Russell 3000 Index (which represents approximately 98% of
the investable U.S. equity market). The Index is an unmanaged index widely
accepted as a proxy of small capitalization stocks. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table, it is assumed that all dividend and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Russell 2000 Index figures are from Frank Russell and Company and all other
figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE DISCOVERY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.8%
Consumer Discretionary--15.7%
39,900 * Aeropostale, Inc. $1,094,058 $90
121,100 * Champion Enterprises, Inc. 847,700 70
33,800 * Chico's FAS, Inc. 1,248,910 102
21,300 Claire's Stores, Inc. 401,292 33
126,700 * Concord Camera Corporation 1,171,975 96
16,400 Culp, Inc. 178,760 15
3,400 * Dick's Sporting Goods, Inc. 165,444 13
26,600 * Emmis Broadcasting Corporation 719,530 59
17,700 Fred's, Inc. - Class "A" 548,346 45
19,500 * Getty Images, Inc. 977,535 80
14,100 * Guitar Center, Inc. 459,378 38
60,900 * Jarden Corporation 1,665,006 137
17,100 * Jos. A. Bank Clothiers, Inc. 593,199 49
16,100 * Leapfrog Enterprises, Inc. - Class "A" 427,133 35
55,300 * MTR Gaming Group, Inc. 569,590 47
63,800 * Navigant International, Inc. 883,630 72
34,900 * Quicksilver, Inc. 618,777 51
60,500 * Restoration Hardware, Inc. 287,375 23
48,200 * Scientific Games Corporation - Class "A" 819,882 67
28,000 * Select Comfort Corporation 693,280 57
17,200 * Shuffle Master, Inc. 595,464 49
13,100 * Sports Authority, Inc. 503,040 41
13,100 * Steven Madden, Ltd. 267,240 22
11,000 * Tractor Supply Company 427,790 35
76,600 Triarc Companies, Inc. - Class "B" 825,748 68
6,000 * Tuesday Morning Corporation 181,500 15
17,000 * Urban Outfitters, Inc. 629,850 52
78,200 * Vail Resorts, Inc. 1,329,400 109
- ----------------------------------------------------------------------------------------------------------------------
19,130,832 1,570
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--.9%
15,500 * Elizabeth Arden, Inc. 308,760 25
39,300 * NeighborCare, Inc. 776,175 64
- ----------------------------------------------------------------------------------------------------------------------
1,084,935 89
- ----------------------------------------------------------------------------------------------------------------------
Energy--5.0%
10,300 CARBO Ceramics, Inc. 527,875 43
45,800 Chesapeake Energy Corporation 621,964 51
50,400 * Energy Partners, Ltd. 700,560 58
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy (continued)
14,100 Noble Energy, Inc. $626,463 $51
25,200 * Patterson-UTI Energy, Inc. 829,584 68
19,600 * Remington Oil & Gas Corporation 385,924 32
32,400 * TETRA Technologies, Inc. 785,376 65
2,200 * Whiting Petroleum Corporation 40,480 3
15,700 World Fuel Services Corporation 533,015 44
35,000 XTO Energy, Inc. 990,500 81
- ----------------------------------------------------------------------------------------------------------------------
6,041,741 496
- ----------------------------------------------------------------------------------------------------------------------
Financials--7.0%
13,800 Bank of the Ozarks, Inc. 310,638 25
5,300 Capital Automotive (REIT) 169,600 14
12,300 * CapitalSource, Inc. 266,664 22
14,600 Capitol Bancorp, Ltd. 414,640 34
33,075 Doral Financial Corporation 1,067,661 88
35,500 * First Marblehead Corporation 776,740 64
32,800 HCC Insurance Holdings, Inc. 1,043,040 86
10,900 Infinity Property & Casualty Corporation 360,245 30
8,800 * Marlin Business Services, Inc. 153,120 13
17,700 Montpelier Re Holdings, Ltd. 649,590 53
13,500 * Navigators Group, Inc. 416,745 34
30,900 Odyssey Re Holdings Corporation 696,795 57
35,900 RAIT Investment Trust 919,040 75
26,600 Thornburg Mortgage, Inc. 723,520 59
14,600 Westcorp, Inc. 533,630 44
- ----------------------------------------------------------------------------------------------------------------------
8,501,668 698
- ----------------------------------------------------------------------------------------------------------------------
Health Care--20.4%
12,400 * American Healthways, Inc. 295,988 24
17,300 * AmSurg Corporation 655,497 54
3,700 * Angiotech Pharmaceuticals, Inc. 170,200 14
37,900 * Axcan Pharma, Inc. 593,135 49
18,400 * Bio-Reference Laboratories, Inc. 241,040 20
27,900 * Bradley Pharmaceuticals, Inc. 709,497 58
12,000 * Celgene Corporation 540,240 44
40,800 * Centene Corporation 1,142,808 94
8,700 * Cephalon, Inc. 421,167 35
84,000 * CollaGenex Pharmaceuticals, Inc. 941,640 77
24,600 * CV Therapeutics, Inc. 360,636 30
12,900 * DaVita, Inc. 503,100 41
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE DISCOVERY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
65,400 * Discovery Laboratories, Inc. $686,046 $56
278,700 * Endocare, Inc. 1,114,800 92
23,300 * Eon Labs, Inc. 1,187,135 97
1,200 * Exact Sciences Corporation 12,144 1
12,400 * Fisher Scientific International, Inc. 512,988 42
18,800 * Gen-Probe, Inc. 685,636 56
26,200 * Hanger Orthopedic Group, Inc. 407,934 34
37,800 * KV Pharmaceutical Company - Class "A" 963,900 79
16,600 * LCA-Vision, Inc. 351,422 29
12,000 * Martek Biosciences Corporation 779,640 64
60,100 * Med-Design Corporation 270,450 23
8,400 Medicis Pharmaceutical Corporation - Class "A" 598,920 49
10,000 * MGI Pharma, Inc. 411,500 34
9,800 * Neurocrine Biosciences, Inc. 534,492 44
12,800 * NPS Pharmaceuticals, Inc. 393,472 32
35,575 * Odyssey Healthcare, Inc. 1,040,925 85
3,200 * Possis Medical, Inc. 63,200 5
16,600 * Psychiatric Solutions, Inc. 346,940 28
106,900 * Repligen Corporation 467,153 38
44,400 * Select Medical Corporation 722,832 59
32,880 * SFBC International, Inc. 873,293 72
44,700 * SuperGen, Inc. 491,700 40
52,100 * Synovis Life Technologies, Inc. 1,059,714 87
15,100 * Taro Pharmaceuticals Industries, Ltd. 973,950 80
50,200 * VCA Antech, Inc. 1,555,196 128
20,100 * VistaCare, Inc. - Class "A" 706,515 58
29,300 * VISX, Inc. 678,295 56
10,000 * Wilson Greatbatch Technologies, Inc. 422,700 35
- ----------------------------------------------------------------------------------------------------------------------
24,887,840 2,043
- ----------------------------------------------------------------------------------------------------------------------
Industrials--13.0%
36,000 * AGCO Corporation 725,040 59
32,400 ALLETE, Inc. 991,440 81
34,500 * DRS Technologies, Inc. 958,410 79
25,400 * Education Management Corporation 788,416 65
17,600 * ESCO Technologies, Inc. 768,240 63
28,100 * Genesee & Wyoming, Inc. - Class "A" 885,150 73
26,000 * II-VI, Inc. 670,800 55
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials (continued)
103,800 * Kansas City Southern, Inc. $1,486,416 $122
24,750 * Marten Transport, Ltd. 380,655 31
36,700 * Moore Wallace, Inc. 687,391 56
24,800 * MTC Technologies, Inc. 799,056 66
10,500 * Old Dominion Freight Line, Inc. 357,840 29
27,000 Oshkosh Truck Corporation 1,377,810 113
2,500 * Overnite Corporation 56,875 5
34,200 * Pinnacle Airlines Corporation 475,038 39
18,400 Quality Distribution, Inc. 359,720 29
44,100 * SI International, Inc. 862,155 71
20,200 * United Defense Industries, Inc. 643,976 53
64,200 United Industrial Corporation 1,158,810 95
9,100 * Vitran Corporation, Inc. - Class "A" 128,765 11
17,000 * Wabash National Corporation 498,100 41
47,700 Wabtec Corporation 812,808 67
- ----------------------------------------------------------------------------------------------------------------------
15,872,911 1,303
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--31.7%
18,600 * Altiris, Inc. 678,527 56
50,900 * Aspect Communications Corporation 802,184 66
147,300 * Atari, Inc. 618,660 51
29,800 * ATMI, Inc. 689,572 57
10,500 * Avid Technology, Inc. 504,000 41
44,100 BEI Technologies, Inc. 882,000 72
22,000 * CheckFree Corporation 608,300 50
22,400 * Cognizant Technology Solutions Corporation - Class "A" 1,022,336 84
99,000 * Conexant Systems, Inc. 492,030 40
55,700 * Cray, Inc. 553,101 45
8,200 * Cymer, Inc. 378,758 31
16,700 * Cypress Semiconductor Corporation 356,712 29
28,700 * Digital River, Inc. 634,270 52
27,900 * Digital Theater Systems, Inc. 688,851 57
26,000 * DSP Group, Inc. 647,660 53
54,400 * Embarcadero Technologies, Inc. 867,680 71
50,000 * Epicor Software Corporation 638,000 52
6,700 * Excel Technology, Inc. 220,162 18
12,600 Fair Isaac Corporation 619,416 51
18,300 * FLIR Systems, Inc. 667,950 55
44,800 * Global Imaging Systems, Inc. 1,422,400 117
18,500 * Hyperion Solutions Corporation 557,590 46
15,700 * Integrated Circuit Systems, Inc. 447,293 37
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE DISCOVERY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology (continued)
111,500 * Intelligroup, Inc. $632,205 $52
26,513 * Intergraph Corporation 634,191 52
14,400 * International Rectifier Corporation 711,504 58
28,700 Inter-Tel, Inc. 716,926 59
29,300 * Intrado, Inc. 643,135 53
41,900 * JDA Software Group, Inc. 691,769 57
35,300 * Komag, Inc. 516,439 42
7,300 * Kopin Corporation 48,983 4
20,250 * Kronos, Inc. 802,103 66
78,700 * Lawson Software, Inc. 647,701 53
48,900 * Lexar Media, Inc. 852,327 70
9,500 * ManTech International Corporation - Class "A" 237,025 19
43,600 * MapInfo Corporation 439,488 36
59,500 * Maxtor Corporation 660,450 54
59,500 * Measurement Specialties, Inc. 1,215,585 100
92,300 * MEMC Electronic Materials, Inc. 887,926 73
25,400 * Mentor Graphics Corporation 369,316 30
8,100 * Mercury Interactive Corporation 393,984 32
24,000 * MICROS Systems, Inc. 1,040,640 85
148,900 * MPS Group, Inc. 1,392,215 114
48,900 * Neoware Systems, Inc. 669,930 55
11,600 * NetScreen Technologies, Inc. 287,100 24
40,000 * O2Micro International, Ltd. 896,000 74
13,200 * OmniVision Technologies, Inc. 729,300 60
30,400 * Pixelworks, Inc. 335,616 28
23,200 * Progress Software Corporation 474,672 39
4,300 * ScanSource, Inc. 196,166 16
12,900 * Sigmatel, Inc. 318,372 26
5,900 * Skyworks Solutions, Inc. 51,330 4
20,900 StarTek, Inc. 852,511 70
22,900 * Sybase, Inc. 471,282 39
83,400 * Sycamore Networks, Inc. 437,016 36
38,100 Symbol Technologies, Inc. 643,509 53
26,000 * Synaptics, Inc. 389,480 32
34,000 * TTM Technologies, Inc. 573,920 47
29,300 * United Online, Inc. 491,947 40
16,500 * UTStarcom, Inc. 611,655 50
22,200 * Varian Semiconductor Equipment Associates, Inc. 969,918 80
28,100 * Verint Systems, Inc. 633,936 52
- ----------------------------------------------------------------------------------------------------------------------
38,565,024 3,165
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Shares Invested
Warrants or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--2.5%
6,200 Centex Construction Products, Inc. $373,674 $31
67,500 * Headwaters, Inc. 1,324,350 109
33,700 * Kronos Worldwide, Inc. 748,140 61
26,600 NN, Inc. 334,894 27
22,700 Penford Corporation 311,671 26
- ----------------------------------------------------------------------------------------------------------------------
3,092,729 254
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--1.8%
36,100 CT Communications, Inc. 487,350 40
12,900 * NII Holdings, Inc. - Class "B" 962,727 79
82,400 * PTEK Holdings, Inc. 725,944 60
- ----------------------------------------------------------------------------------------------------------------------
2,176,021 179
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.8%
24,100 Equitable Resources, Inc. 1,034,372 85
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $89,880,188) 120,388,073 9,882
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Health Care
18,500 * Med-Design Corporation (expiring 7/29/08)
(cost $2,313)+** 2,313 --
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--1.2%
$1,500M U.S. Treasury Bills, .845%, 1/8/04
(cost $1,499,753) 1,499,753 123
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $91,382,254) 100.0% 121,890,139 10,005
Excess of Liabilities Over Other Assets (.0) (58,484) (5)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $121,831,655 $10,000
======================================================================================================================
* Non-income producing
** Security valued at fair value (see Note 1A)
+ See Note 5
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
Dear Investor:
This is the annual report for the First Investors Life Focused Equity
Fund for the year ended December 31, 2003. During the year, the Fund's
return on a net asset value basis was 27.7% and the Fund declared
dividends of 1 cent per share.
Fund performance was driven by strong results in the equity markets,
which posted double digit returns in 2003. The drivers were an improved
geopolitical environment, renewed economic growth, improving credit
markets, and investor perception that deflationary risks had bottomed.
In particular, strong fiscal and monetary stimulus in the form of tax
cuts and rebates, low interest rates, deficit spending, and high growth
of money supply pushed the economy ahead.
Strong stock selection in the consumer discretionary and health care
sectors helped boost performance for the period. An overweight position
in the materials sector, and solid stock picking also aided results.
Technology stocks performed well, and we correctly overweighted the
sector. Unfortunately, our larger-cap, quality names did not perform as
well as some of the smaller, more speculative technology holdings. Stock
selection among both financials and industrials also detracted from
performance.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ MATTHEW E. MEGARGEL
Matthew E. Megargel
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
Comparison of change in value of $10,000 investment in the First
Investors Life Focused Equity Fund and the Standard & Poor's 500 Index.
FOCUSED EQUITY FUND
GRAPH PLOTS
As of December 31, 2003
S&P 500
FOCUSED EQUITY INDEX
NOV-99 $10,000 $10,000
DEC-99 10,250 10,691
DEC-00 9,130 9,717
DEC-01 8,682 8,562
DEC-02 6,243 6,670
DEC-03 7,974 8,583
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 27.73%
Since Inception
(11/8/99) (5.31%)
The graph compares a $10,000 investment in the First Investors Life
Focused Equity Fund beginning 11/8/99 (inception date) with a
theoretical investment in the Standard & Poor's 500 Index (the "Index").
The Index is an unmanaged capitalization- weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of such stocks, which represent
all major industries. It is not possible to invest directly in this
Index. In addition, the Index does not take into account fees and
expenses that an investor would incur in purchasing securities in the
Index. For purposes of the graph and the accompanying table it is
assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03.
The returns shown do not reflect any sales charges, since the Fund
sells its shares solely to variable annuity and/or variable life
insurance subaccounts at net asset value. The returns do not reflect the
fees and charges that an individual would pay in connection with an
investment in a variable annuity or life contract or policy. Results
represent past performance and do not indicate future results.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
the original cost. Standard & Poor's 500 Index figures are from Standard
& Poor's and all other figures are from First Investors Management
Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--98.2%
Consumer Discretionary--10.2%
7,200 * Comcast Corporation - Special Class "A" $225,216 $226
7,800 Gap, Inc. 181,038 182
3,500 Lowe's Companies, Inc. 193,865 194
23,200 * Time Warner, Inc. 417,368 418
- ----------------------------------------------------------------------------------------------------------------------
1,017,487 1,020
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--10.4%
3,200 Altria Group, Inc. 174,144 175
3,800 Coca-Cola Company 192,850 193
5,100 Gillette Company 187,323 188
3,100 PepsiCo, Inc. 144,522 145
1,400 Procter & Gamble Company 139,832 140
3,800 Wal-Mart Stores, Inc. 201,590 202
- ----------------------------------------------------------------------------------------------------------------------
1,040,261 1,043
- ----------------------------------------------------------------------------------------------------------------------
Energy--6.7%
3,900 ChevronTexaco Corporation 336,921 338
6,100 Schlumberger, Ltd. 333,792 335
- ----------------------------------------------------------------------------------------------------------------------
670,713 673
- ----------------------------------------------------------------------------------------------------------------------
Financials--21.1%
3,400 American Express Company 163,982 164
5,700 American International Group, Inc. 377,796 379
2,600 Bank of America Corporation 209,118 210
4,700 Bank One Corporation 214,273 215
9,900 Citigroup, Inc. 480,546 482
2,200 Marsh & McLennan Companies, Inc. 105,358 106
4,800 Merrill Lynch & Company, Inc. 281,520 282
7,200 Travelers Property Casualty Corporation - Class "B" 122,184 122
3,200 Wachovia Corporation 149,088 149
- ----------------------------------------------------------------------------------------------------------------------
2,103,865 2,109
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--13.7%
5,800 Abbott Laboratories $270,280 $271
1,900 Cardinal Health, Inc. 116,204 117
2,900 Eli Lilly & Company 203,957 204
1,600 * Genzyme Corporation 78,944 79
13,400 Pfizer, Inc. 473,422 475
5,200 Wyeth 220,740 221
- ----------------------------------------------------------------------------------------------------------------------
1,363,547 1,367
- ----------------------------------------------------------------------------------------------------------------------
Industrials--13.3%
1,600 3M Company 136,048 137
2,000 FedEx Corporation 135,000 135
1,600 General Dynamics Corporation 144,624 145
12,300 General Electric Company 381,054 382
4,000 Lockheed Martin Corporation 205,600 206
5,900 Tyco International, Ltd. 156,350 157
1,800 United Technologies Corporation 170,586 171
- ----------------------------------------------------------------------------------------------------------------------
1,329,262 1,333
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--17.6%
5,200 * Accenture, Ltd. - Class "A" 136,864 137
5,400 * Applied Materials, Inc. 121,230 122
9,200 * Cisco Systems, Inc. 223,468 224
8,600 * Corning, Inc. 89,698 90
4,300 * Dell, Inc. 146,028 147
10,258 Hewlett-Packard Company 235,626 236
8,900 Intel Corporation 286,580 287
18,700 Microsoft Corporation 514,998 516
- ----------------------------------------------------------------------------------------------------------------------
1,754,492 1,759
- ----------------------------------------------------------------------------------------------------------------------
Materials--4.2%
5,900 Alcoa, Inc. 224,200 225
4,400 International Paper Company 189,684 190
- ----------------------------------------------------------------------------------------------------------------------
413,884 415
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE FOCUSED EQUITY FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Transportation--1.0%
2,700 CSX Corporation $97,038 $97
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $8,804,495) 9,790,549 9,816
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.6%
$160M BNP Paribas Corp., .82%, 1/2/04 (collateralized by
U.S. Treasury Notes, 2%, 11/30/04, valued at $161,442)
(cost $160,000) 160,000 160
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $8,964,495) 99.8% 9,950,549 9,976
Other Assets, Less Liabilities .2 24,093 24
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $9,974,642 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE GOVERNMENT FUND
Dear Investor:
This is the annual report for the First Investors Life Government Fund for
the year ended December 31, 2003. During the year, the Fund's return on a
net asset value basis was 3.2% and the Fund declared dividends of 45 cents
per share.
The Fund invests primarily in mortgage-backed bonds. The primary factor
that drove the Fund's performance during the reporting period was the
substantial increase in prepayments on mortgage-backed securities.
The generally low level of interest rates during the reporting period and
their decline to historic lows in June adversely affected the performance
of the mortgage-backed bond market. Specifically, 30-year mortgage rates
fell to all-time lows (slightly above 5%), and refinancings of outstanding
mortgages by homeowners rose to all-time highs (in part due to rising home
values which stimulated cash-out refinancings to tap home equity).
Consequently, prepayments on mortgage-backed bonds soared, reducing returns
to investors.
Management of the Fund focused on minimizing prepayment risk by selecting
mortgage-backed pools with favorable prepayment characteristics and
reducing the Fund's weighted-average coupon. The Fund generally benefited
from this strategy.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ CLARK D. WAGNER
Clark D. Wagner
Director of Fixed Income
and Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE GOVERNMENT FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Government Fund, the Citigroup Mortgage Index, the Citigroup
Treasury/Government Sponsored Index and the Lehman Brothers GNMA Index.+
GOVERNMENT FUND
GRAPH PLOTS
As of December 31, 2003
CITIGROUP LEHMAN
CITIGROUP TREASURY/ BROTHERS
GOVERNMENT MORTGAGE GOVERNMENT GNMA
FUND INDEX INDEX INDEX
DEC-93 $10,000 $10,000 $10,000 $10,000
DEC-94 9,590 9,857 9,663 9,850
DEC-95 11,088 11,510 11,441 11,529
DEC-96 11,486 12,127 11,777 12,167
DEC-97 12,475 13,251 12,914 13,327
DEC-98 13,416 14,176 14,185 14,250
DEC-99 13,557 14,435 13,868 14,524
DEC-00 14,987 16,065 15,692 16,138
DEC-01 16,333 17,383 16,826 17,464
DEC-02 17,605 18,923 18,772 18,982
DEC-03 18,166 19,503 19,237 19,523
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 3.18%
Five Years 6.25%
Ten Years 6.15%
The graph compares a $10,000 investment in the First Investors Life
Government Fund beginning 12/31/93 with theoretical investments in the
Citigroup Mortgage Index, the Citigroup Treasury/Government Sponsored Index
and the Lehman Brothers GNMA Index (the "Indices"). The Citigroup Mortgage
Index is a market capitalization-weighted index that consists of all agency
pass-throughs and FHA and GNMA project notes. The Citigroup
Treasury/Government Sponsored Index is a market capitalization-weighted
index that consists of debt issued by the U.S. Treasury and U.S. Government
sponsored agencies. The Lehman Brothers GNMA Index is composed of all
fixed-rate, securitized mortgage pools backed by GNMA, with principal
amounts outstanding in excess of $50 million. Every issue included in the
Indices is trader-priced, and the Indices follow consistent and realistic
availability limits, including only those securities with sufficient
amounts outstanding. It is not possible to invest directly in these
Indices. In addition, the Indices do not take into account fees and
expenses that an investor would incur in purchasing securities in the
Indices. For purposes of the graph and the accompanying table, it is
assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03. During the periods shown, some of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the Average
Annual Total Return for One Year, Five Years and Ten Years would have been
3.03%, 6.09% and 5.94%, respectively.
The returns shown do not reflect any sales charge, since the Fund sells its
shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Citigroup Mortgage Index and Citigroup Treasury/Government Sponsored Index
figures are from Citigroup, Inc., Lehman Brothers GNMA Index figures are
from Lehman Brothers, Inc. and all other figures are from First Investors
Management Company, Inc.
+ We have added a comparison to the Lehman Brothers GNMA Index this year
because that Index is more representative of the Fund's current investment
universe. After this year, we will not show a comparison to the Citigroup
Mortgage Index and the Citigroup Treasury/Government Sponsored Index.
Portfolio of Investments
FIRST INVESTORS LIFE GOVERNMENT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED CERTIFICATES--79.1%
Fannie Mae--15.1%
$967M 5.5%, 6/1/2033 $980,301 $406
683M 6%, 8/1/2033 706,994 293
292M 7%, 5/1/2031 312,588 129
834M 9%, 6/1/2015-11/1/2026 932,090 386
602M 11%, 10/1/2015 706,812 292
- ----------------------------------------------------------------------------------------------------------------------
3,638,785 1,506
- ----------------------------------------------------------------------------------------------------------------------
Freddie Mac--10.0%
1,226M 6%, 8/1/2032-4/1/2033 1,267,305 524
686M 6.5%, 7/1/2032-12/1/2032 718,883 298
395M 8.5%, 7/1/2016-9/1/2024 437,553 181
- ----------------------------------------------------------------------------------------------------------------------
2,423,741 1,003
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association I Program--54.0%
3,559M 5.5%, 2/15/2033-11/15/2033 3,626,143 1,501
1,103M 6%, 11/15/2032 1,149,022 475
3,515M 6.5%, 6/15/2029-6/15/2033 3,716,381 1,538
3,445M 7%, 1/15/2030-10/15/2032 3,695,957 1,529
141M 8.5%, 11/15/2031 156,304 65
604M 10%, 5/15/2019-8/15/2019 694,835 288
- ----------------------------------------------------------------------------------------------------------------------
13,038,642 5,396
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Mortgage-Backed Certificates (cost $18,835,729) 19,101,168 7,905
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--12.5%
1,400M Federal Farm Credit Bank, 3.75%, 2/13/2008 1,400,118 579
1,480M Federal Home Loan Bank, 5.8%, 9/2/2008 1,631,506 675
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $2,886,297) 3,031,624 1,254
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GOVERNMENT FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--6.4%
U.S. Treasury Bills:
$900M .835%, 1/8/2004 $899,854 $372
400M .83%, 1/15/2004 399,871 166
250M .78%, 1/22/2004 249,886 103
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Short-Term U.S. Government
Obligations (cost $1,549,611) 1,549,611 641
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $23,271,637) 98.0% 23,682,403 9,800
Other Assets, Less Liabilities 2.0 482,345 200
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $24,164,748 $10,000
======================================================================================================================
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE GROWTH FUND
Dear Investor:
This is the annual report for the First Investors Life Growth Fund for the
year ended December 31, 2003. During the year, the Fund's return on a net
asset value basis was 29.2% and the Fund declared dividends of 12 cents per
share.
Fund performance was driven by strong results in the equity markets, which
posted double digit returns in 2003. The drivers were an improved
geopolitical environment, renewed economic growth, improving credit
markets, and investor perception that deflationary risks had bottomed. In
particular, strong fiscal and monetary stimulus in the form of tax cuts and
rebates, low interest rates, deficit spending, and high growth of money
supply pushed the economy ahead.
Stock selection within the energy and health care sectors added to relative
performance, while stock picking in the industrials and technology segments
detracted from results. In an environment that favored more speculative
stocks, the Fund's bias for higher quality holdings in the technology
sector hurt performance.
The Fund's current investment posture continues to have a cyclical bias
with overweights in the consumer discretionary, industrials, materials and
technology sectors.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ MATTHEW E. MEGARGEL
Matthew E. Megargel
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE GROWTH FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Growth Fund, the Russell 3000 Index and the Standard & Poor's 500
Index.+
GROWTH FUND
GRAPH PLOTS
As of December 31, 2003
STANDARD
LIFE SERIES RUSSELL 3000 & POOR'S
GROWTH FUND INDEX 500 INDEX
DEC-93 $10,000 $10,000 $10,000
DEC-94 9,713 9,752 10,132
DEC-95 12,152 13,027 13,940
DEC-96 15,124 15,830 17,140
DEC-97 19,552 20,848 22,859
DEC-98 24,890 25,841 29,337
DEC-99 31,490 31,240 35,510
DEC-00 31,499 28,903 32,276
DEC-01 27,289 25,599 28,439
DEC-02 21,220 20,085 22,154
DEC-03 27,412 26,324 28,508
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 29.18%
Five Years 1.94%
Ten Years 10.61%
The graph compares a $10,000 investment in the First Investors Life Growth
Fund beginning 12/31/93 with theoretical investments in the Russell 3000
Index and the Standard & Poor's 500 Index (the "Indices"). The Russell 3000
Index is an unmanaged Index composed of the 3000 largest U.S. companies, as
determined by market capitalization, and represents approximately 98% of
the investable U.S. equity market. The Standard and Poor's 500 Index is an
unmanaged capitalization-weighted index of 500 stocks designed to measure
performance of the broad domestic economy through changes in the aggregate
market value of such stocks, which represent all major industries. It is
not possible to invest directly in these Indices. In addition, the Indices
do not take into account fees and expenses that an investor would incur in
purchasing securities in the Indices. For purposes of the graph and the
accompanying table it is assumed that all dividends and distributions were
reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Russell 3000 Index figures are from Frank Russell and Company, Standard &
Poor's 500 Index figures are from Standard & Poor's and all other figures
are from First Investors Management Company, Inc.
+ We have added a comparison to the Russell 3000 Index this year because
that Index is more representative of the Fund's current investment
universe. After this year, we will not show a comparison to the Standard &
Poor's 500 Index.
Portfolio of Investments
FIRST INVESTORS LIFE GROWTH FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--99.3%
Consumer Discretionary--14.5%
12,700 * American Eagle Outfitters, Inc. $208,280 $9
23,500 * Chico's FAS, Inc. 868,325 39
10,200 * Coach, Inc. 385,050 17
13,600 * Columbia Sportswear Company 741,200 34
86,200 * Comcast Corporation - Special Class "A" 2,696,336 122
24,700 D.R. Horton, Inc. 1,068,522 48
43,400 * EchoStar Communications Corporation - Class "A" 1,475,600 67
28,100 Federated Department Stores, Inc. 1,324,353 60
17,500 Gannett Company, Inc. 1,560,300 70
85,700 Gap, Inc. 1,989,097 90
18,300 International Game Technology 653,310 29
8,800 * Krispy Kreme Doughnuts, Inc. 322,080 15
37,000 * Lamar Advertising Company - Class "A" 1,380,840 62
12,200 Lear Corporation 748,226 34
24,600 Liz Claiborne, Inc. 872,316 39
56,100 Lowe's Companies, Inc. 3,107,379 140
62,700 Michaels Stores, Inc. 2,771,340 125
19,800 Omnicom Group, Inc. 1,729,134 78
28,100 * O'Reilly Automotive, Inc. 1,077,916 49
45,050 * Pacific Sunwear of California, Inc. 951,456 43
32,000 PETsMART, Inc. 761,600 34
31,300 Target Corporation 1,201,920 54
241,400 * Time Warner, Inc. 4,342,786 196
- ----------------------------------------------------------------------------------------------------------------------
32,237,366 1,454
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--7.7%
43,400 Altria Group, Inc. 2,361,828 106
57,200 Coca-Cola Company 2,902,900 131
78,600 Coca-Cola Enterprises, Inc. 1,718,982 78
22,400 * Constellation Brands, Inc. - Class "A" 737,632 33
57,500 Gillette Company 2,111,975 95
30,500 * Hain Celestial Group, Inc. 707,905 32
35,200 PepsiCo, Inc. 1,641,024 74
19,800 Procter & Gamble Company 1,977,624 89
56,000 Wal-Mart Stores, Inc. 2,970,800 134
- ----------------------------------------------------------------------------------------------------------------------
17,130,670 772
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GROWTH FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy--5.9%
22,400 Apache Corporation $1,816,640 $82
88,600 Chesapeake Energy Corporation 1,203,188 54
31,500 ChevronTexaco Corporation 2,721,285 123
107,800 ExxonMobil Corporation 4,419,800 199
43,600 Schlumberger, Ltd. 2,385,792 108
32,700 * Swift Energy Company 550,995 25
- ----------------------------------------------------------------------------------------------------------------------
13,097,700 591
- ----------------------------------------------------------------------------------------------------------------------
Financials--17.1%
13,600 Ambac Financial Group, Inc. 943,704 42
22,600 American Express Company 1,089,998 49
78,474 American International Group, Inc. 5,201,257 235
45,600 Arthur J. Gallagher & Company 1,481,544 67
39,300 Bank of America Corporation 3,160,899 143
12,000 Bank of Hawaii Corporation 506,400 23
69,500 Bank One Corporation 3,168,505 143
153,552 Citigroup, Inc. 7,453,414 336
17,867 Countrywide Financial Corporation 1,355,187 61
59,800 * E*TRADE Financial Corporation 756,470 34
29,100 Federated Investors, Inc. - Class "B" 854,376 39
9,800 Goldman Sachs Group, Inc. 967,554 44
18,400 Legg Mason, Inc. 1,420,112 64
30,900 Marsh & McLennan Companies, Inc. 1,479,801 67
66,600 Merrill Lynch & Company, Inc. 3,906,090 176
96,000 Travelers Property Casualty Corporation - Class "B" 1,629,120 73
53,000 Wachovia Corporation 2,469,270 111
- ----------------------------------------------------------------------------------------------------------------------
37,843,701 1,707
- ----------------------------------------------------------------------------------------------------------------------
Health Care--14.9%
79,000 Abbott Laboratories 3,681,400 166
52,500 * Albany Molecular Research, Inc. 788,550 36
15,200 * Anthem, Inc. 1,140,000 51
19,000 * Biovail Corporation 408,310 18
25,500 Cardinal Health, Inc. 1,559,580 70
15,900 * Caremark Rx, Inc. 402,747 18
14,600 Cooper Companies, Inc. 688,098 31
20,600 * Dendrite International, Inc. 322,802 15
24,500 Diagnostic Products Corporation 1,124,795 51
34,700 * Edwards Lifesciences Corporation 1,043,776 47
40,500 Eli Lilly & Company 2,848,365 129
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care (continued)
26,900 * Fisher Scientific International, Inc. $1,112,853 $50
8,600 * Genzyme Corporation 424,324 19
9,000 Guidant Corporation 541,800 25
19,200 * Health Net, Inc. 627,840 28
42,600 IMS Health, Inc. 1,059,036 48
42,900 * King Pharmaceuticals, Inc. 654,654 30
6,560 * Laboratory Corporation of America Holdings 242,392 11
25,700 * Medco Health Solutions, Inc. 873,543 39
80,800 * Millennium Pharmaceuticals, Inc. 1,508,536 68
14,800 * Oxford Health Plans, Inc. 643,800 29
191,275 Pfizer, Inc. 6,757,746 305
30,800 * Triad Hospitals, Inc. 1,024,716 46
8,100 * Watson Pharmaceuticals, Inc. 372,600 17
73,900 Wyeth 3,137,055 141
- ----------------------------------------------------------------------------------------------------------------------
32,989,318 1,488
- ----------------------------------------------------------------------------------------------------------------------
Industrials--12.8%
21,800 3M Company 1,853,654 84
78,000 American Power Conversion Corporation 1,907,100 86
23,800 Aramark Corporation - Class "B" 652,596 29
35,700 * ChoicePoint, Inc. 1,359,813 61
48,000 CSX Corporation 1,725,120 78
30,000 * EGL, Inc. 526,800 24
28,500 FedEx Corporation 1,923,750 87
20,100 General Dynamics Corporation 1,816,839 82
182,100 General Electric Company 5,641,458 254
9,200 * ITT Educational Services, Inc. 432,124 19
5,500 * JetBlue Airways Corporation 145,860 7
42,600 Lockheed Martin Corporation 2,189,640 99
47,300 Masco Corporation 1,296,493 58
76,600 Norfolk Southern Corporation 1,811,590 82
2,300 Precision Castparts Corporation 104,443 5
67,500 Tyco International, Ltd. 1,788,750 81
25,600 United Technologies Corporation 2,426,112 109
3,700 * University of Phoenix Online 255,041 12
19,100 Waste Management, Inc. 565,360 25
- ----------------------------------------------------------------------------------------------------------------------
28,422,543 1,282
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE GROWTH FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--19.3%
57,400 * Accenture, Ltd. - Class "A" $1,510,768 $68
23,300 Analog Devices, Inc. 1,063,645 48
30,300 * Andrew Corporation 348,753 16
53,600 * Applied Materials, Inc. 1,203,320 54
66,100 * Brocade Communications Systems, Inc. 382,058 17
5,300 * Cabot Microelectronics Corporation 259,700 12
25,840 * Cadence Design Systems, Inc. 464,603 21
8,300 CDW Corporation 479,408 22
12,600 * CheckFree Corporation 348,390 16
116,400 * Cisco Systems, Inc. 2,827,356 128
19,800 * Comverse Technology, Inc. 348,282 16
93,900 * Corning, Inc. 979,377 44
28,400 * Dell, Inc. 964,464 43
27,900 * Fairchild Semiconductor International, Inc. 696,663 31
39,800 First Data Corporation 1,635,382 74
133,567 Hewlett-Packard Company 3,068,034 138
28,900 * Ingram Micro, Inc. - Class "A" 459,510 21
5,800 * Integrated Circuit Systems, Inc. 165,242 7
116,400 Intel Corporation 3,748,080 169
32,100 International Business Machines Corporation 2,975,028 134
31,300 * International Rectifier Corporation 1,546,533 70
9,600 * Manhattan Associates, Inc. 265,344 12
279,500 Microsoft Corporation 7,697,430 347
74,900 Motorola, Inc. 1,053,843 47
10,700 * Novellus Systems, Inc. 449,935 20
68,800 * Polycom, Inc. 1,342,976 61
45,400 * Sanmina - SCI Corporation 572,494 26
30,500 * Siebel Systems, Inc. 423,035 19
61,500 * SunGard Data Systems, Inc. 1,704,165 77
50,700 * Tekelec 788,385 36
50,300 Texas Instruments, Inc. 1,477,814 67
35,500 * Waters Corporation 1,177,180 53
32,500 * Western Digital Corporation 383,175 17
- ----------------------------------------------------------------------------------------------------------------------
42,810,372 1,931
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials--4.3%
78,200 Alcoa, Inc. $2,971,600 $134
36,700 Du Pont (E.I.) de Nemours & Company 1,684,163 76
41,900 International Paper Company 1,806,309 81
126,900 * Pactiv Corporation 3,032,910 137
- ----------------------------------------------------------------------------------------------------------------------
9,494,982 428
- ----------------------------------------------------------------------------------------------------------------------
Other--.5%
20,800 Market 2000+ HOLDRs Trust 1,125,280 51
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--1.1%
91,000 SBC Communications, Inc. 2,372,370 107
- ----------------------------------------------------------------------------------------------------------------------
Utilities--1.2%
20,500 Black Hills Corporation 611,515 27
109,900 El Paso Corporation 900,081 41
17,000 Exelon Corporation 1,128,120 51
- ----------------------------------------------------------------------------------------------------------------------
2,639,716 119
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $167,569,911) 220,164,018 9,930
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--.7%
$1,480M BNP Paribas Corp., .92%, 1/2/04 (collateralized by
U.S. Treasury Notes, 1.625%, 3/31/05, valued at
$1,506,885) (cost $1,480,000) 1,480,000 67
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $169,049,911) 100.0% 221,644,018 9,997
Other Assets, Less Liabilities .0 62,568 3
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $221,706,586 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Portfolio Managers' Letter
FIRST INVESTORS LIFE HIGH YIELD FUND
Dear Investor:
This is the annual report for the First Investors Life High Yield Fund for
the year ended December 31, 2003. During the year, the Fund's return on a
net asset value basis was 26.1% and the Fund declared dividends of 69 cents
per share.
The largest influence on the Fund's results was the solid performance of
the overall high yield market, which rebounded after several poor years. A
low interest rate environment, declining default rates, improving business
fundamentals associated with a strengthening economy and a return to
confidence in the high yield market all contributed to the market's
performance during the year. Risk taking was generally rewarded, as the
lower-rated names generally outperformed middle-rated and higher-rated high
yield bonds.
Top contributors to the Fund's performance during the period were those
securities and sectors that rebounded from low prices as a result of better
liquidity, renewed investor confidence or improved results.
Several of the Fund's holdings recovered significantly during 2003,
including Pac-West Telecomm, a communication services provider; Charter
Communications and RCN, cable television operators; and Mail-Well, a
specialty printer.
The Fund's performance was hurt by its investment in Playtex Products,
whose results suffered from increased competition from Procter & Gamble.
The Fund's relative returns were also hurt by an underweight position in
the utilities industry, as this sector recovered from distressed levels
during the year.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ RICHARD T. BOURKE
Richard T. Bourke
Co-Portfolio Manager
/S/ GREG MILLER
Greg Miller
Co-Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE HIGH YIELD FUND
Comparison of change in value of $10,000 investment in the First Investors
Life High Yield Fund and the CS First Boston High Yield Index.
HIGH YIELD FUND
GRAPH PLOTS
As of December 31, 2003
LIFE SERIES CS FIRST BOSTON
HIGH YIELD FUND HIGH YIELD INDEX
DEC-93 $10,000 $10,000
DEC-94 9,843 9,903
DEC-95 11,795 11,624
DEC-96 13,276 13,068
DEC-97 14,931 14,718
DEC-98 15,401 14,804
DEC-99 16,164 15,289
DEC-00 15,136 14,493
DEC-01 14,611 15,333
DEC-02 14,940 15,809
DEC-03 18,845 20,226
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 26.14%
Five Years 4.12%
Ten Years 6.54%
The graph compares a $10,000 investment in the First Investors Life High
Yield Fund beginning 12/31/93 with a theoretical investment in the CS First
Boston High Yield Index (the "Index"). The Index is designed to measure the
performance of the high yield bond market. As of 12/31/03, the Index
consisted of 1,637 different issues, most of which are cash pay, but also
included in the Index are zero-coupon bonds, step bonds, payment-in-kind
bonds and bonds in which are in default. As of 12/31/03, approximately
5.69% of the market value of the Index was in default. The bonds included
in the Index have an average life of 7.3 years, an average maturity of 7.3
years, an average duration of 3.8 years and an average coupon of 9.14%. It
is not possible to invest directly in this Index. In addition, the Index
does not take into account fees and expenses that an investor would incur
in purchasing securities in the Index. For purposes of the graph and the
accompanying table it is assumed that all dividends and distributions were
reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The issuers of the high yield bonds, in which the Fund primarily invests,
pay higher interest rates because they have a greater likelihood of
financial difficulty, which could result in their inability to repay the
bonds fully when due. Prices of high yield bonds are also subject to
greater fluctuations. CS First Boston High Yield Index figures are from CS
First Boston Corporation and all other figures are from First Investors
Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE HIGH YIELD FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--90.0%
Aerospace/Defense--2.6%
$400M Alliant Techsystems, Inc., 8.5%, 2011 $442,000 $69
100M DRS Technologies, Inc., 6.875%, 2013+ 103,250 16
300M GenCorp, Inc., 9.5%, 2013+ 312,750 48
L-3 Communications Corp.:
400M 7.625%, 2012 435,500 68
400M 6.125%, 2014+ 403,000 63
- ----------------------------------------------------------------------------------------------------------------------
1,696,500 264
- ----------------------------------------------------------------------------------------------------------------------
Automotive--8.1%
550M Accuride Corp., 9.25%, 2008 567,875 89
Asbury Automotive Group, Inc.:
175M 9%, 2012 185,938 29
300M 8%, 2014+ 303,000 47
1,000M Collins & Aikman Products Co., 11.5%, 2006 925,000 144
250M Cummins, Inc., 9.5%, 2010+ 288,750 45
375M Dana Corp., 9%, 2011 453,750 71
500M Delco Remy International, Inc., 11%, 2009 520,000 81
1,000M Special Devices, Inc., 11.375%, 2008 955,000 149
500M TRW Automotive, Inc., 9.375%, 2013 573,750 89
400M United Components, Inc., 9.375%, 2013 439,000 68
- ----------------------------------------------------------------------------------------------------------------------
5,212,063 812
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--8.1%
350M Equistar Chemicals LP, 10.625%, 2011 388,500 61
50M Ethyl Corp., 8.875%, 2010 53,750 8
500M FMC Corp., 10.25%, 2009 587,500 92
300M Huntsman, LLC, 11.625%, 2010+ 307,500 48
900M IMC Global, Inc., 10.875%, 2013+ 990,000 154
350M Lyondell Chemical Co., 9.5%, 2008 367,500 57
Millennium America, Inc.:
150M 7%, 2006 154,500 24
185M 9.25%, 2008 202,575 32
240M 9.25%, 2008+ 262,800 41
350M Noveon, Inc., 11%, 2011 407,750 64
100M Omnova Solutions, Inc., 11.25%, 2010+ 111,500 17
Resolution Performance Products, LLC:
100M 8%, 2009+ 104,000 16
675M 13.5%, 2010 590,625 92
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Chemicals (continued)
$500M Terra Capital, Inc., 11.5%, 2010 $525,000 $82
100M Westlake Chemical Corp., 8.75%, 2011+ 110,000 17
- ----------------------------------------------------------------------------------------------------------------------
5,163,500 805
- ----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.2%
500M Playtex Products, Inc., 9.375%, 2011 507,500 79
250M Remington Arms Co., 10.5%, 2011 267,500 42
- ----------------------------------------------------------------------------------------------------------------------
775,000 121
- ----------------------------------------------------------------------------------------------------------------------
Energy--9.3%
700M Bluewater Finance, Ltd., 10.25%, 2012 731,500 114
500M Chesapeake Energy Corp., 9%, 2012 577,500 90
1,000M Compagnie Generale de Geophysique, 10.625%, 2007 1,065,000 166
300M Dresser, Inc., 9.375%, 2011 327,750 51
1,000M El Paso Production Holding Co., 7.75%, 2013+ 990,000 154
200M Energy Partners, Ltd., 8.75%, 2010 209,000 33
1,000M Giant Industries, Inc., 11%, 2012 1,085,000 169
Tesoro Petroleum Corp.:
100M 8%, 2008 106,750 17
100M 9%, 2008 104,250 16
700M 9.625%, 2008 749,000 117
- ----------------------------------------------------------------------------------------------------------------------
5,945,750 927
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--2.5%
1,500M Dow Jones Trac-X NA, High Yield, Series 2,
Trust 3, 8%, 2009+ 1,573,125 245
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--4.2%
1,300M Canandaigua Brands, Inc., 8.5%, 2009 1,368,250 213
Land O'Lakes, Inc.:
200M 9%, 2010+ 202,500 32
550M 8.75%, 2011 484,000 75
250M Merisant Co., 9.5%, 2013+ 267,500 42
350M Pilgrim's Pride Corp., 9.625%, 2011 386,750 60
- ----------------------------------------------------------------------------------------------------------------------
2,709,000 422
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--.5%
$325M Di Giorgio Corp., 10%, 2007 $307,125 $48
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--4.0%
500M AEP Industries, Inc., 9.875%, 2007 505,000 79
325M Potlatch Corp., 10%, 2011 364,000 57
500M Stone Container Corp., 9.75%, 2011 555,000 86
Tekni-Plex, Inc.:
400M 12.75%, 2010 438,000 68
370M 8.75%, 2013+ 387,575 60
300M Tembec Industries, Inc., 8.5%, 2011 312,000 49
- ----------------------------------------------------------------------------------------------------------------------
2,561,575 399
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--3.7%
500M Circus & Eldorado/Silver Legacy, 10.125%, 2012 521,250 81
1,000M Isle of Capri Casinos, Inc., 8.75%, 2009 1,055,000 165
375M Outboard Marine Corp., 10.75%, 2008++** 469 --
700M Park Place Entertainment Corp., 9.375%, 2007 794,500 124
- ----------------------------------------------------------------------------------------------------------------------
2,371,219 370
- ----------------------------------------------------------------------------------------------------------------------
Health Care--5.9%
422M Advanced Medical Optics, Inc., 9.25%, 2010 464,200 72
30M ALARIS Medical Systems, Inc., 7.25%, 2011 31,200 5
50M Fisher Scientific International, Inc., 8.125%, 2012 53,875 8
600M Genesis Health Ventures, Inc., 9.75%, 2005++** 750 --
485M HCA, Inc., 5.25%, 2008 494,806 77
350M Insight Health Services Corp., 9.875%, 2011 372,750 58
350M MedQuest, Inc., 11.875%, 2012 384,125 60
400M PerkinElmer, Inc., 8.875%, 2013 460,000 72
200M Quintiles Transnational Corp., 10%, 2013+ 217,000 34
250M Sybron Dental Specialties, Inc., 8.125%, 2012 273,125 43
1,050M Tenet Healthcare Corp., 6.375%, 2011 1,018,500 159
- ----------------------------------------------------------------------------------------------------------------------
3,770,331 588
- ----------------------------------------------------------------------------------------------------------------------
Housing--2.2%
250M Integrated Electrical Services, Inc., 9.375%, 2009 263,750 41
750M Nortek, Inc., 9.875%, 2011 830,625 130
300M William Lyon Homes, Inc., 10.75%, 2013 342,750 53
- ----------------------------------------------------------------------------------------------------------------------
1,437,125 224
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--2.3%
$400M ChipPac International, Ltd., 12.75%, 2009 $444,000 $69
350M Exodus Communications, Inc., 10.75%, 2009++** 438 --
1,000M Iron Mountain, Inc., 8.25%, 2011 1,055,000 165
- ----------------------------------------------------------------------------------------------------------------------
1,499,438 234
- ----------------------------------------------------------------------------------------------------------------------
Investment/Finance Companies--.8%
275M Finova Group, Inc., 7.5%, 2009 166,375 26
350M General Motors Acceptance Corp., 4.5%, 2006 360,281 56
- ----------------------------------------------------------------------------------------------------------------------
526,656 82
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--3.3%
1,040M Columbus McKinnon Corp., 8.5%, 2008 977,600 152
200M Eagle-Picher, Inc., 9.75%, 2013+ 217,000 34
1,000M Wolverine Tube, Inc., 7.375%, 2008+ 930,000 145
- ----------------------------------------------------------------------------------------------------------------------
2,124,600 331
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting--3.8%
750M Block Communications, Inc., 9.25%, 2009 810,000 126
50M Nexstar Finance, Inc., 7%, 2014+ 50,500 8
350M Nexstar Finance, LLC, 12%, 2008 396,375 62
350M Sinclair Broadcasting Group, Inc., 8.75%, 2011 390,250 61
Young Broadcasting Corp.:
300M 8.75%, 2007 309,000 48
340M 10%, 2011 368,050 57
100M 8.75%, 2014+ 101,750 16
- ----------------------------------------------------------------------------------------------------------------------
2,425,925 378
- ----------------------------------------------------------------------------------------------------------------------
Media-Cable TV--6.3%
500M Adelphia Communications Corp., 10.25%, 2011++ 475,000 74
Charter Communications Holdings, LLC:
1,000M 10%, 2009 895,000 139
200M 0%-9.92%, 2011 172,000 27
1,100M Diva Systems Corp., 12.625%, 2008++ 71,500 11
800M Echostar DBS Corp., 9.375%, 2009 841,000 131
1,000M Mediacom LLC/Mediacom Capital Corp., 7.875%,2011 1,005,000 157
500M Quebecor Media, Inc., 11.125%, 2011 581,250 91
- ----------------------------------------------------------------------------------------------------------------------
4,040,750 630
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--6.7%
$250M American Media Operations, Inc., 8.875%, 2011 $272,500 $43
1,000M Carmike Cinemas, Inc., 10.375%, 2009 1,055,000 164
250M Dex Media West Finance Co., 9.875%, 2013+ 291,875 46
1,000M Garden State Newspapers, Inc., 8.625%, 2011 1,067,500 166
1,000M Mail-Well I Corp., 8.75%, 2008 1,002,500 156
150M Six Flags, Inc., 9.625%, 2014+ 157,500 25
400M Universal City Development Partners, Ltd., 11.75%, 2010+ 470,000 73
- ----------------------------------------------------------------------------------------------------------------------
4,316,875 673
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--1.4%
900M Commonwealth Aluminum Corp., 10.75%, 2006 922,500 144
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--2.4%
750M General Nutrition Center, 8.5%, 2010+ 772,500 120
700M Michaels Stores, Inc., 9.25%, 2009 776,125 121
- ----------------------------------------------------------------------------------------------------------------------
1,548,625 241
- ----------------------------------------------------------------------------------------------------------------------
Services--6.7%
Allied Waste NA, Inc.:
1,150M 10%, 2009 1,247,750 195
300M 9.25%, 2012 342,000 53
200M 7.875%, 2013 217,500 34
700M Hydrochem Industrial Services, Inc., 10.375%, 2007 670,250 104
1,250M Kindercare Learning Centers, Inc., 9.5%, 2009 1,275,000 199
500M Worldspan LP, 9.625%, 2011+ 517,500 81
- ----------------------------------------------------------------------------------------------------------------------
4,270,000 666
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.9%
950M E. Spire Communications, Inc., 13%, 2005++ 95 --
1,200M RCN Corp., 11%, 2008++ 564,000 88
1,500M Viatel, Inc., 12.5%, 2008++** 572 --
1,000M XO Communications, Inc., 9%, 2008++** 1,250 --
- ----------------------------------------------------------------------------------------------------------------------
565,917 88
- ----------------------------------------------------------------------------------------------------------------------
Transportation--.5%
300M General Maritime Corp., 10%, 2013 340,125 53
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.0%
500M AES Drax Energy, Ltd., 11.5%, 2010++ 5,625 1
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Principal Invested
Amount, For Each
Shares or $10,000 of
Warrants Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Wireless Communications--2.6%
$700M Crown Castle International Corp., 9.375%, 2011 $780,500 $121
Triton Communications, LLC:
400M 8.75%, 2011 396,000 62
475M 9.375%, 2011 486,875 76
- ----------------------------------------------------------------------------------------------------------------------
1,663,375 259
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $59,621,288) 57,772,724 9,005
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.7%
1,000M U.S. Treasury Notes, 6.125%, 2007 (cost $1,043,727) 1,119,493 174
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--1.0%
Media-Cable TV--.8%
4,710 * Echostar Communications Corporation - Class "A" 160,140 25
4,928 * NTL, Inc. 343,728 54
- ----------------------------------------------------------------------------------------------------------------------
503,868 79
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--.2%
1,000 * MediaNews Group, Inc. - Class "A" 150,000 23
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.0%
4,399 * World Access, Inc. 6 --
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $713,741) 653,874 102
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.3%
Manufacturing
547 Day International Group, Inc., 12.25%, 2010, PIK
(cost $441,390) 192,726 30
- ----------------------------------------------------------------------------------------------------------------------
WARRANTS--.0%
Media-Cable TV--.0%
3,300 * Diva Systems Corp. (expiring 3/1/08)+ 33 --
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--.0%
1,500 * E. Spire Communications, Inc. (expiring 11/1/05)+** -- --
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Warrants (cost $0) 33 --
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE HIGH YIELD FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY
OBLIGATIONS--2.7%
$1,700M Fannie Mae, 1.04%, 1/5/04 (cost $1,699,803) $1,699,803 $265
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.6%
1,000M ChevronTexaco Corp., 1%, 1/12/04 (cost $999,694) 999,694 156
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $64,519,643) 97.3% 62,438,347 9,732
Other Assets, Less Liabilities 2.7 1,720,351 268
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $64,158,698 $10,000
======================================================================================================================
* Non-income producing
** Security valued at fair market value (see Note 1A)
+ See Note 5
++ In default as to principal and/or interest payment
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
Dear Investor:
This is the annual report for the First Investors Life International
Securities Fund for the year ended December 31, 2003. During the year, the
Fund's return on a net asset value basis was 32.5% and the Fund declared
dividends of 13 cents per share.
After a shaky start, global equity investors experienced the best
performance in over 15 years in 2003, with all developed and emerging
markets in the MSCI All Country World Free Index experiencing positive
returns due to a global economic recovery.
A number of factors aided the Fund's performance during the reporting
period. Within the technology sector, an overweight position and stock
selection both contributed positively to overall results. An underweight
position in the U.S. and strong U.S. stock selection also boosted returns.
In addition, sector allocation decisions aimed at positioning the Fund for
better economic growth and a reduction in the number of holdings aided
results.
The Fund's underweight position in small-cap stocks and more speculative
names hurt performance, as smaller cap and more risky stocks outperformed
substantially after the first quarter, especially in the U.S. and Japan.
Stock selection in the industrial and financial sectors detracted from
results, as did stock selection in Europe and Japan.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ TROND SKRAMSTAD
Trond Skramstad
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
Comparison of change in value of $10,000 investment in the First Investors
Life International Securities Fund and the Morgan Stanley Capital
International ("MSCI") All Country World Free Index.
INTERNATIONAL SECURITIES FUND
GRAPH PLOTS
As of December 31, 2003
LIFE SERIES MSCI ALL COUNTRY
INTERNATIONAL WORLD FREE
SECURITIES FUND INDEX
DEC-93 $10,000 $10,000
DEC-94 9,871 10,503
DEC-95 11,716 12,546
DEC-96 13,501 14,198
DEC-97 14,729 16,327
DEC-98 17,406 19,912
DEC-99 22,882 25,252
DEC-00 20,213 21,732
DEC-01 17,223 18,289
DEC-02 14,049 14,818
DEC-03 18,618 19,950
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 32.52%
Five Years 1.36%
Ten Years 6.41%
The graph compares a $10,000 investment in the First Investors Life
International Securities Fund beginning 12/31/93 with a theoretical
investment in the MSCI All Country World Free Index (the "Index"). The
Index represents both the developed and the emerging markets. The Index
includes 49 markets of which emerging markets represent approximately
4.53%. It is not possible to invest directly in this Index. In addition,
the Index does not take into account fees and expenses that an investor
would incur in purchasing securities in the Index. For purposes of the
graph and the accompanying table, it is assumed that all dividends and
distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
MSCI All Country World Free Index figures are from Morgan Stanley & Co.,
Inc. and all other figures are from First Investors Management Company,
Inc.
Portfolio of Investments
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--92.2%
United States--25.5%
3,000 3M Company $255,090 $28
11,750 Abbott Laboratories 547,550 61
11,500 Alcoa, Inc. 437,000 49
6,100 Altria Group, Inc. 331,962 37
6,300 American Express Company 303,849 34
11,770 American International Group, Inc. 780,116 87
6,300 American Power Conversion Corporation 154,035 17
3,300 Analog Devices, Inc. 150,645 17
2,100 * Anthem, Inc. 157,500 18
3,100 Apache Corporation 251,410 28
10,600 * Applied Materials, Inc. 237,970 26
5,000 Bank of America Corporation 402,150 45
9,300 Bank One Corporation 423,987 47
3,600 Cardinal Health, Inc. 220,176 24
7,600 ChevronTexaco Corporation 656,564 73
5,000 * ChoicePoint, Inc. 190,450 21
17,800 * Cisco Systems, Inc. 432,362 48
19,549 Citigroup, Inc. 948,908 106
6,900 Coca-Cola Company 350,175 39
11,000 Coca-Cola Enterprises, Inc. 240,570 27
14,000 * Comcast Corporation - Special Class "A" 437,920 49
27,700 * Corning, Inc. 288,911 32
5,400 CSX Corporation 194,076 22
7,300 * Dell, Inc. 247,908 28
6,100 * EchoStar Communications Corporation - Class "A" 207,400 23
15,300 El Paso Corporation 125,307 14
5,600 Eli Lilly & Company 393,848 44
2,400 Federated Department Stores, Inc. 113,112 13
4,200 FedEx Corporation 283,500 32
17,700 Gap, Inc. 410,817 46
5,200 General Dynamics Corporation 470,028 52
24,100 General Electric Company 746,618 83
2,300 * Genzyme Corporation 113,482 13
9,700 Gillette Company 356,281 40
1,300 Guidant Corporation 78,260 9
21,500 Hewlett-Packard Company 493,855 55
6,000 IMS Health, Inc. 149,160 17
17,240 Intel Corporation 555,128 62
8,200 International Paper Company 353,502 39
3,700 * International Rectifier Corporation 182,817 20
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United States (continued)
5,200 * Lamar Advertising Company - Class "A" $194,064 $22
2,600 Legg Mason, Inc. 200,668 22
7,800 Lockheed Martin Corporation 400,920 45
7,100 Lowe's Companies, Inc. 393,269 44
6,100 Market 2000+ HOLDRs Trust 330,010 37
4,200 Marsh & McLennan Companies, Inc. 201,138 22
6,600 Masco Corporation 180,906 20
3,500 * Medco Health Solutions, Inc. 118,965 13
9,900 Merrill Lynch & Company, Inc. 580,635 65
4,700 Michaels Stores, Inc. 207,740 23
38,900 Microsoft Corporation 1,071,306 119
10,700 Norfolk Southern Corporation 253,055 28
2,900 Omnicom Group, Inc. 253,257 28
8,800 * Pactiv Corporation 210,320 23
5,900 PepsiCo, Inc. 275,058 31
25,162 Pfizer, Inc. 888,973 99
9,600 * Polycom, Inc. 187,392 21
3,100 Procter & Gamble Company 309,628 34
6,500 * SunGard Data Systems, Inc. 180,115 20
40,900 * Time Warner, Inc. 735,791 82
14,100 Travelers Property Casualty Corporation - Class "B" 239,277 27
11,600 Tyco International, Ltd. 307,400 34
3,400 United Technologies Corporation 322,218 36
5,800 Wachovia Corporation 270,222 30
7,900 Wal-Mart Stores, Inc. 419,095 47
10,200 Wyeth 432,990 48
- ----------------------------------------------------------------------------------------------------------------------
22,838,811 2,545
- ----------------------------------------------------------------------------------------------------------------------
United Kingdom--17.9%
32,700 AstraZeneca PLC 1,568,817 175
197,900 BP PLC 1,604,847 179
176,400 * British Airways PLC 734,195 82
2,200 * British Airways PLC (ADR) 91,828 10
111,000 Capita Group PLC 482,858 54
184,500 Compass Group PLC 1,255,075 140
1,043,300 * Corus Group PLC 560,299 62
41,700 GlaxoSmithKline PLC 955,511 106
87,100 Hilton Group PLC 350,435 39
50,000 HSBC Holdings PLC 785,876 87
25,400 Imperial Tobacco Group PLC 500,168 56
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
United Kingdom (continued)
113,000 Kingfisher PLC $563,370 $63
108,912 National Grid Transco PLC 780,363 87
56,984 Reckitt Benckiser PLC 1,289,406 144
31,500 Rio Tinto PLC 870,094 97
48,923 Royal Bank of Scotland Group PLC 1,441,560 161
898,625 Vodafone Group PLC 2,228,014 248
- ----------------------------------------------------------------------------------------------------------------------
16,062,716 1,790
- ----------------------------------------------------------------------------------------------------------------------
France--10.7%
17,747 Aventis SA 1,172,984 131
22,378 AXA 479,004 53
16,927 Carrefour SA 929,190 103
28,137 * France Telecom SA 804,217 90
22,939 Lafarge SA 2,042,749 228
7,200 Pinault-Printemps-Redoute SA 696,114 78
12,700 Schneider Electric SA 831,394 93
19,100 Societe Television Francaise 1 666,861 74
10,741 Total SA 1,997,000 222
- ----------------------------------------------------------------------------------------------------------------------
9,619,513 1,072
- ----------------------------------------------------------------------------------------------------------------------
Japan--8.8%
48,000 Asahi Glass Company, Ltd. 394,140 44
78,000 Bank of Yokohama, Ltd. 362,452 40
19,000 Dai Nippon Printing Company, Ltd. 266,819 30
13,000 Fuji Photo Film Company, Ltd. 419,707 47
11,600 Honda Motor Company, Ltd. 515,219 57
1,400 Keyence Corporation 295,101 33
23,000 Matsushita Electric Industrial Company, Ltd. 318,055 35
4,200 Nintendo Company, Ltd. 391,901 44
15,000 Nomura Holdings, Inc. 255,435 28
2,600 Nomura Research Institute, Ltd. 253,522 28
606 NTT DoCoMo, Inc. 1,374,060 153
17,000 Olympus Corporation 368,807 41
2,600 ORIX Corporation 214,948 24
3,600 Rohm Company, Ltd. 421,909 47
10,000 Shin-Etsu Chemical Company, Ltd. 408,696 45
22,000 Shionogi & Company, Ltd. 409,742 46
363 * SKY Perfect Communications, Inc. 426,780 48
41,000 Sompo Japan Insurance, Inc. 337,044 38
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Japan (continued)
3,300 Sony Corporation $114,239 $13
10,300 Sony Corporation (ADR) 357,101 40
- ----------------------------------------------------------------------------------------------------------------------
7,905,677 881
- ----------------------------------------------------------------------------------------------------------------------
Switzerland--6.7%
197,760 * ABB, Ltd. 1,002,592 112
6,400 Nestle SA 1,599,030 178
14,000 Novartis AG-Registered 635,618 71
13,675 Roche Holding AG-Genusscheine 1,379,386 153
20,330 UBS AG-Registered 1,392,319 155
- ----------------------------------------------------------------------------------------------------------------------
6,008,945 669
- ----------------------------------------------------------------------------------------------------------------------
Germany--3.5%
13,100 Bayerische Motoren Werke (BMW) AG 610,550 68
9,600 E.ON AG 628,819 70
11,600 Metro AG 512,108 57
4,200 SAP AG 708,829 79
13,200 Schering AG 668,657 75
- ----------------------------------------------------------------------------------------------------------------------
3,128,963 349
- ----------------------------------------------------------------------------------------------------------------------
Italy--3.0%
51,763 ENI SpA 976,758 109
87,600 * Fiat SpA 671,805 75
197,800 UniCredito Italiano SpA 1,067,839 119
- ----------------------------------------------------------------------------------------------------------------------
2,716,402 303
- ----------------------------------------------------------------------------------------------------------------------
South Korea--2.7%
51,480 Kia Motors Corporation 470,946 52
23,110 Kookmin Bank 866,019 96
11,790 LG Electronics, Inc. 579,852 65
3,210 SK Telecom Company, Ltd. 536,123 60
- ----------------------------------------------------------------------------------------------------------------------
2,452,940 273
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Canada--2.7%
6,600 Canadian National Railway Company $417,648 $47
10,300 * Inco, Ltd. 409,051 46
27,200 National Bank of Canada 907,403 101
11,900 Talisman Energy, Inc. 676,843 75
- ----------------------------------------------------------------------------------------------------------------------
2,410,945 269
- ----------------------------------------------------------------------------------------------------------------------
Netherlands--2.6%
29,100 Akzo Nobel NV 1,123,182 125
104,500 * Koninklijke (Royal) KPN NV 806,684 90
14,807 TPG NV 346,829 39
- ----------------------------------------------------------------------------------------------------------------------
2,276,695 254
- ----------------------------------------------------------------------------------------------------------------------
Malaysia--1.2%
288,000 Malayan Banking Berhad 731,368 82
465,000 Public Bank Berhad 379,342 42
- ----------------------------------------------------------------------------------------------------------------------
1,110,710 124
- ----------------------------------------------------------------------------------------------------------------------
Sweden--1.2%
144,250 Nordea AB 1,082,582 121
- ----------------------------------------------------------------------------------------------------------------------
Russia--.8%
4,200 Mining & Metallurgical Company Norilsk Nickel (ADR) 273,630 30
14,500 Surgutneftegaz (ADR) 421,950 47
- ----------------------------------------------------------------------------------------------------------------------
695,580 77
- ----------------------------------------------------------------------------------------------------------------------
Mexico--.7%
22,400 America Movil SA de CV (ADR) - Series "L" 612,210 68
- ----------------------------------------------------------------------------------------------------------------------
Netherlands Antilles--.7%
10,930 Schlumberger, Ltd. 598,090 67
- ----------------------------------------------------------------------------------------------------------------------
Taiwan--.5%
93,800 * United Microelectronics Corporation (ADR) 464,310 52
- ----------------------------------------------------------------------------------------------------------------------
Bermuda--.5%
17,600 * Accenture, Ltd. - Class "A" 463,232 52
- ----------------------------------------------------------------------------------------------------------------------
China--.5%
1,080,000 China Telecom Corporation, Ltd. 445,154 49
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Brazil--.5%
17,500 Unibanco--Uniao de Bancos Brasileiros SA $436,625 $49
- ----------------------------------------------------------------------------------------------------------------------
Ireland--.5%
51,282 * Ryanair Holdings PLC 426,918 47
- ----------------------------------------------------------------------------------------------------------------------
Australia--.4%
80,672 Rinker Group, Ltd. 398,124 44
- ----------------------------------------------------------------------------------------------------------------------
Finland--.3%
17,541 Nokia OYJ - Class "A" 303,339 34
- ----------------------------------------------------------------------------------------------------------------------
Austria--.3%
22,400 * Telekom Austria AG 276,892 31
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $66,143,072) 82,735,373 9,220
- ----------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS--4.9%
Netherlands--3.4%
Euro 2,405M Dutch Treasury Certificate, Zero Coupon, 2/27/04 3,024,399 337
- ----------------------------------------------------------------------------------------------------------------------
Belgium--1.5%
Euro 1,120M Belgium Treasury Certificate, Zero Coupon, 4/15/04 1,404,707 157
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Foreign Government and Agency
Obligations (cost $4,025,770) 4,429,106 494
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--.3%
U.S. Treasury Bills:+
$125M .912%, 1/8/04 124,978 14
100M .91%, 3/4/04 99,859 11
10M .885%, 3/11/04 9,984 1
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $234,801) 234,821 26
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.0%
Brazil
5,000 * Vale Do Rio Doce - Class "B" (cost $0)** $31 $--
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--2.6%
$2,300M BNP Paribas Corp., .82%, 1/2/04 (collateralized by
U.S. Treasury Notes, 1.625%, 3/31/05,
valued at $2,348,053) (cost $2,300,000) 2,300,000 256
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $72,703,643) 100.0% 89,699,331 9,996
Other Assets, Less Liabilities .0 38,518 4
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $89,737,849 $10,000
======================================================================================================================
* Non-income producing
** Security valued at fair value (See Note 1A)
+ See Note 6
See notes to financial statements
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INTERNATIONAL SECURITIES FUND
December 31, 2003
Sector diversification of the portfolio was as follows:
- ----------------------------------------------------------------------------------------------------------------------
Percentage
Sector of Net Assets Value
- ----------------------------------------------------------------------------------------------------------------------
Pharmaceuticals & Biotechnology 10.2% $9,167,558
Banks 10.2 9,157,426
Energy 8.0 7,183,461
Materials 7.9 7,086,679
Telecommunication Services 7.9 7,083,354
Capital Goods 5.6 5,065,341
Diversified Financials 4.3 3,896,763
Food/Beverage/Tobacco 3.7 3,296,963
Software & Services 3.4 3,068,905
Media 3.3 2,922,073
Transportation 3.1 2,748,047
Retailing 2.7 2,384,422
Automobiles & Components 2.5 2,268,519
Technology Hardware & Equipment 2.5 2,248,868
Insurance 2.3 2,036,578
Semiconductors & Semiconductor Equipment 2.2 2,012,779
Household & Personal Products 2.2 1,955,315
Food & Staples Retailing 2.1 1,860,394
Consumer Durables & Apparel 2.0 1,788,955
Hotels/Restaurants/Leisure 1.8 1,605,510
Utilities 1.7 1,534,489
Health Care Equipment & Services 1.2 1,092,868
Commercial Services & Supplies 1.0 940,127
Pooled Vehicle 0.4 330,010
U.S. Government Obligations 0.3 234,821
Foreign Government and Agency Obligations 4.9 4,429,106
Repurchase Agreement 2.6 2,300,000
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments 100.0 89,699,331
Other Assets, Less Liabilities .0 38,518
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $89,737,849
======================================================================================================================
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
Dear Investor:
This is the annual report for the First Investors Life Investment Grade
Fund for the year ended December 31, 2003. During the year, the Fund's
return on a net asset value basis was 8.6% and the Fund declared dividends
of 65 cents per share.
The key factors that drove the Fund's returns during the reporting period
were the positive performance of the corporate bond sector, industry
sector choices and security selection.
Boosted by increased demand, the corporate bond sector outperformed
government securities during the reporting period. The best performers were
the lower investment grade rating categories, as well as holdings in
economically sensitive industries. Intermediate to longer maturity
investments also provided better results than shorter maturities in 2003.
Formerly troubled industries, such as telecommunications and utilities
rebounded, rewarding the Fund's decision to hold on to the bonds of strong
companies in struggling sectors. The airline industry avoided the worst of
several threats during the reporting period, which enabled the small
positions owned by the Fund to perform very strongly. Though slightly
underweight versus the market, the Fund's investments in the cable and
automotive industries also aided performance.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ GEORGE V. GANTER
George V. Ganter
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Investment Grade Fund and the Lehman Brothers U.S. Credit Index.
INVESTMENT GRADE FUND
GRAPH PLOTS
As of December 31, 2003
LIFE SERIES LEHMAN BROTHERS
INVESTMENT U.S. CREDIT
GRADE FUND INDEX
DEC-93 $10,000 $10,000
DEC-94 9,647 9,607
DEC-95 11,547 11,745
DEC-96 11,874 12,130
DEC-97 13,040 13,371
DEC-98 14,233 14,517
DEC-99 13,872 14,232
DEC-00 15,192 15,524
DEC-01 16,386 17,125
DEC-02 17,673 18,926
DEC-03 19,194 20,384
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 8.60%
Five Years 6.16%
Ten Years 6.74%
The graph compares a $10,000 investment in the First Investors Life
Investment Grade Fund beginning 12/31/93 with a theoretical investment in
the Lehman Brothers U.S. Credit Index (the "Index"). The Index includes all
publicly issued, fixed rate, nonconvertible investment grade
dollar-denominated, S.E.C.-registered corporate debt. All issues have at
least one year to maturity and an outstanding par value of at least $150
million. It is not possible to invest directly in this Index. In addition,
the Index does not take into account fees and expenses that an investor
would incur in purchasing securities in the Index. For purposes of the
graph and the accompanying table, it is assumed that all dividends and
distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03. During the periods shown, some of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the Average
Annual Total Return for One Year, Five Years and Ten Years would have been
8.45%, 6.02% and 6.57%, respectively.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Lehman Brothers U.S. Credit Index figures are from Lehman Brothers, Inc.
and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--82.4%
Aerospace/Defense--2.9%
Honeywell International, Inc.:
$450M 7.5%, 2010 $532,120 $142
125M 6.125%, 2011 137,667 37
Precision Castparts Corp.:
300M 8.75%, 2005 316,664 85
100M 5.6%, 2013+ 100,790 27
- ----------------------------------------------------------------------------------------------------------------------
1,087,241 291
- ----------------------------------------------------------------------------------------------------------------------
Automotive--4.3%
350M DaimlerChrysler NA Holdings Corp., 8%, 2010 401,344 108
224M Ford Motor Co., 8.9%, 2032 251,741 67
200M Lear Corp., 8.11%, 2009 236,250 63
270M Navistar International Corp., 8%, 2008 278,775 75
100M TRW, Inc., 7.125%, 2009 113,855 31
300M Visteon Corp., 8.25%, 2010 332,947 89
- ----------------------------------------------------------------------------------------------------------------------
1,614,912 433
- ----------------------------------------------------------------------------------------------------------------------
Chemicals--.9%
300M Lubrizol Corp., 7.25%, 2025 334,964 90
- ----------------------------------------------------------------------------------------------------------------------
Energy--1.8%
300M Repsol International Finance, 7.45%, 2005 322,686 86
100M Sunoco, Inc., 9.375%, 2016 114,754 31
200M Texaco Capital, Inc., 8.25%, 2006 232,031 62
- ----------------------------------------------------------------------------------------------------------------------
669,471 179
- ----------------------------------------------------------------------------------------------------------------------
Financial--5.7%
125M American General Finance Corp., 8.125%, 2009 149,661 40
300M CIT Group Holdings, Inc., 7.75%, 2012 354,988 95
100M Ford Motor Credit Co., 9.03%, 2009 103,637 28
General Electric Capital Corp.:
300M 7.875%, 2006 343,710 92
144M 8.5%, 2008 173,274 46
400M General Motors Acceptance Corp., 7.75%, 2010 453,978 122
Household Finance Corp.:
425M 6.5%, 2008 474,265 127
60M 7.75%, 2022 63,996 17
- ----------------------------------------------------------------------------------------------------------------------
2,117,509 567
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Financial Services--13.4%
Bank of America Corp.:
$250M 7.8%, 2010 $297,671 $80
75M 7.4%, 2011 88,086 24
300M Bank One Corp., 7.875%, 2010 360,838 97
225M BB&T Corp., 5.2%, 2015 223,538 60
300M Chase Manhattan Corp., 7.875%, 2010 357,737 96
150M Comerica, 7.125%, 2013 168,241 45
250M First Union National Bank, 7.8%, 2010 302,019 81
300M Fleet Capital Trust II, 7.92%, 2026 338,649 91
250M Florida Windstorm Underwriting Assoc., 7.125%, 2019+ 293,188 78
300M Greenpoint Bank, 9.25%, 2010 369,212 99
225M Huntington National Bank, 8%, 2010 271,457 73
125M J.P. Morgan Chase & Co., 6.625%, 2012 139,863 37
200M Manufacturers & Traders Trust Co., 8%, 2010 240,743 64
100M Old National Bank, 6.75%, 2011 110,574 30
300M PNC Funding Corp., 6.125%, 2009 330,793 89
250M Republic NY Corp., 7.75%, 2009 292,480 78
400M Royal Bank of Scotland, 5%, 2014 397,178 106
350M Washington Mutual, Inc., 8.25%, 2010 421,377 113
- ----------------------------------------------------------------------------------------------------------------------
5,003,644 1,341
- ----------------------------------------------------------------------------------------------------------------------
Food/Beverage/Tobacco--5.1%
Coca-Cola Enterprises, Inc.:
250M 7.125%, 2009 291,429 78
100M 7.125%, 2017 118,299 32
520M ConAgra Foods, Inc., 6.75%, 2011 583,741 156
300M Hershey Foods Corp., 6.7%, 2005 324,456 87
420M Pepsi Bottling Group, Inc., 7%, 2029 482,853 129
100M Philip Morris Companies, Inc., 6.95%, 2006 107,413 29
- ----------------------------------------------------------------------------------------------------------------------
1,908,191 511
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug--3.3%
200M Delhaize America, Inc., 8.125%, 2011 231,000 62
Kroger Co.:
200M 6.8%, 2018 222,669 60
300M 7%, 2018 336,378 90
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Food/Drug (continued)
Safeway, Inc.:
$200M 7%, 2007 $223,324 $60
200M 6.5%, 2011 218,640 58
- ----------------------------------------------------------------------------------------------------------------------
1,232,011 330
- ----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--2.3%
International Paper Co.:
100M 8.125%, 2005 108,974 29
200M 6.75%, 2011 222,691 60
275M Sappi Papier Holding AG, 6.75%, 2012+ 301,199 81
Weyerhaeuser Co.:
100M 7.25%, 2013 111,741 30
100M 7.5%, 2013 113,158 30
- ----------------------------------------------------------------------------------------------------------------------
857,763 230
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--.8%
250M MGM Mirage, Inc., 8.5%, 2010 288,125 77
- ----------------------------------------------------------------------------------------------------------------------
Health Care--1.8%
225M Columbia/HCA Healthcare, Inc., 7.5%, 2023 234,385 63
200M Tenet Healthcare Corp., 6.375%, 2011 194,000 52
200M Wyeth, 6.7%, 2011 226,198 60
- ----------------------------------------------------------------------------------------------------------------------
654,583 175
- ----------------------------------------------------------------------------------------------------------------------
Manufacturing--2.5%
125M Ingersoll-Rand Co., 9%, 2021 158,941 42
300M Newell Rubbermaid, Inc., 6.75%, 2012 327,343 88
United Technologies Corp.:
200M 7.125%, 2010 234,518 63
180M 6.1%, 2012 198,007 53
- ----------------------------------------------------------------------------------------------------------------------
918,809 246
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting--3.6%
Comcast Cable Communications, Inc.:
200M 8.375%, 2007 232,081 62
150M 7.125%, 2013 171,166 46
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Media-Broadcasting (continued)
$250M Cox Communications, Inc., 5.5%, 2015 $252,017 $68
330M Cox Enterprises, Inc., 8%, 2007+ 377,910 101
300M PanAmSat Corp., 6.375%, 2008 312,750 84
- ----------------------------------------------------------------------------------------------------------------------
1,345,924 361
- ----------------------------------------------------------------------------------------------------------------------
Media-Diversified--3.5%
100M AOL Time Warner, Inc., 6.875%, 2012 112,748 30
300M New York Times Co., 7.625%, 2005 322,026 86
200M News America, Inc., 7.3%, 2028 224,021 60
200M Time Warner, Inc., 6.875%, 2018 220,556 59
Viacom, Inc.:
225M 7.75%, 2005 243,367 65
75M 8.875%, 2014 95,358 26
100M Walt Disney Co., 7.3%, 2005 106,073 29
- ----------------------------------------------------------------------------------------------------------------------
1,324,149 355
- ----------------------------------------------------------------------------------------------------------------------
Metals/Mining--1.8%
300M Hanson PLC, 7.875%, 2010 354,667 95
300M Thiokol Corp., 6.625%, 2008 331,104 89
- ----------------------------------------------------------------------------------------------------------------------
685,771 184
- ----------------------------------------------------------------------------------------------------------------------
Real Estate--6.8%
100M Archstone-Smith Trust, 7.9%, 2016 (REIT) 118,558 32
470M AvalonBay Communities, Inc., 7.5%, 2010 (REIT) 542,652 145
350M Boston Properties, Inc., 5%, 2015 (REIT) 334,992 90
185M Duke-Weeks Realty Corp., 7.75%, 2009 (REIT) 217,977 58
300M EOP Operating LP, 8.1%, 2010 (REIT) 353,281 95
400M Mack-Cali Realty LP, 7.75%, 2011 (REIT) 466,638 125
425M Simon Property Group, Inc., 7.875%, 2016 (REIT)+ 501,794 135
- ----------------------------------------------------------------------------------------------------------------------
2,535,892 680
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise--4.3%
300M Federated Department Stores, Inc., 7.45%, 2017 350,426 94
100M Lowe's Companies, Inc., 8.25%, 2010 121,995 33
200M RadioShack Corp., 7.375%, 2011 231,144 62
350M Target Corp., 7.5%, 2010 415,596 111
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Retail-General Merchandise (continued)
Wal-Mart Stores, Inc.:
$300M 8%, 2006 $342,251 $92
145M 8.5%, 2024 156,642 42
- ----------------------------------------------------------------------------------------------------------------------
1,618,054 434
- ----------------------------------------------------------------------------------------------------------------------
Services--1.9%
250M Allied Waste NA, Inc., 8.875%, 2008 281,250 75
ERAC USA Finance Enterprise Co.:
100M 7.35%, 2008+ 114,361 31
250M 8%, 2011+ 297,752 80
- ----------------------------------------------------------------------------------------------------------------------
693,363 186
- ----------------------------------------------------------------------------------------------------------------------
Telecommunications--4.1%
200M Chesapeake & Potomac Telephone Co.
of Maryland, 8.3%, 2031 251,940 68
300M Deutsche Telekom AG, 8.5%, 2010 363,292 97
300M GTE Corp., 7.9%, 2027 330,086 88
275M Sprint Capital Corp., 6.375%, 2009 294,300 79
250M Vodafone AirTouch PLC, 7.75%, 2010 296,742 80
- ----------------------------------------------------------------------------------------------------------------------
1,536,360 412
- ----------------------------------------------------------------------------------------------------------------------
Transportation--5.9%
204M Attransco, Inc., 6.12%, 2008 221,705 59
Burlington Northern Santa Fe Corp.:
275M 7.875%, 2007 317,868 85
175M 7.125%, 2010 202,880 55
Canadian National Railway Co.:
300M 6.45%, 2006 325,175 87
150M 7.375%, 2031 177,654 48
300M Norfolk Southern Corp., 7.7%, 2017 362,315 97
500M Union Pacific Corp., 7.375%, 2009 582,149 156
- ----------------------------------------------------------------------------------------------------------------------
2,189,746 587
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE INVESTMENT GRADE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Utilities--5.7%
$300M Columbia Energy Group, 6.8%, 2005 $324,054 $87
265M Consumers Energy Co., 6.375%, 2008 288,611 77
200M DPL, Inc., 6.875%, 2011 209,000 56
300M Duke Capital Corp., 8%, 2019 349,985 94
209M Niagara Mohawk Holdings, Inc., 7.625%, 2005 227,324 61
200M NiSource Finance Corp., 7.875%, 2010 238,202 64
250M PP&L Capital Funding, Inc., 8.375%, 2007 285,993 77
178M Wisconsin Power & Light, 7%, 2007 199,178 53
- ----------------------------------------------------------------------------------------------------------------------
2,122,347 569
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Corporate Bonds (cost $28,330,960) 30,738,829 8,238
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--6.6%
U.S. Treasury Notes:
500M 7.875%, 2004 528,770 142
1,000M 6.625%, 2007 1,132,071 303
200M 6%, 2009 226,602 61
500M 6.5%, 2010 581,172 156
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Obligations (cost $2,332,582) 2,468,615 662
- ----------------------------------------------------------------------------------------------------------------------
PASS THROUGH CERTIFICATES--4.2%
Real Estate--1.0%
338M FDA Queens LP, 6.99%, 2017 376,541 101
- ----------------------------------------------------------------------------------------------------------------------
Transportation--3.2%
83M American Airlines, Inc., 7.377%, 2019 60,267 16
Continental Airlines, Inc.:
99M 6.748%, 2017 81,823 22
420M 8.388%, 2020 372,223 100
221M FedEx Corp., 7.5%, 2018 252,842 68
182M Northwest Airlines, Inc., 8.072%, 2019 199,969 53
252M NWA Trust, 10.23%, 2012 228,313 61
- ----------------------------------------------------------------------------------------------------------------------
1,195,437 320
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Pass Through Certificates (cost $1,680,549) 1,571,978 421
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Principal For Each
Amount $10,000 of
or Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--2.2%
Fannie Mae:
$400M 6.125%, 2012 $446,238 $120
185M 5%, 2016 182,139 49
175M Federal Home Loan Bank, 4.3%, 2008 176,795 47
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Obligations (cost $787,794) 805,172 216
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--1.2%
Housing
Virginia State Housing Development Authority:
335M Series "A", 6.51%, 2019 346,370 93
100M Series "M", 7%, 2022 110,336 29
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Municipal Bonds (cost $401,625) 456,706 122
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.3%
Information Technology
Allstream, Inc.:
32 Class "A" 1,712 1
1,698 Class "B" 97,380 26
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $46,864) 99,092 27
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE NOTES--1.4%
$520M ChevronTexaco Corp., 1%, 1/12/04 (cost $519,841) 519,841 139
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $34,100,215) 98.3% 36,660,233 9,825
Other Assets, Less Liabilities 1.7 654,184 175
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $37,314,417 $10,000
======================================================================================================================
+ See Note 5
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
FIRST INVESTORS LIFE TARGET MATURITY 2015 FUND
Dear Investor:
This is the annual report for the First Investors Life Target Maturity
Funds for the year ended December 31, 2003. During the year, the Funds'
returns on a net asset value basis were 1.9% for Target Maturity 2007, 2.8%
for Target Maturity 2010 and 3.2% for Target Maturity 2015, and the Funds
declared dividends of 74 cents, 67 cents and 41 cents per share,
respectively. During the year, the Target Maturity 2007 Fund also declared
a capital gains distribution of 14 cents per share.
The Funds' investment objective is to seek a predictable compounded return
for investors who hold the Funds until maturity. In order to meet this
objective, the Funds are fully invested in high-quality zero coupon bonds.
These bonds are very sensitive to changes in interest rates.
The primary factor affecting the performance of the Funds was a slight rise
in interest rates during 2003. Reflecting the fact that intermediate-term
bond yields rose more than those of longer-term bonds, the Target Maturity
2007 Fund had the lowest return while the Target Maturity 2015 Fund had the
highest return.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ CLARK D. WAGNER
Clark D. Wagner
Director of Fixed Income
and Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Target Maturity 2007 Fund and the Citigroup Treasury/Government
Sponsored Index.
TARGET MATURITY 2007 FUND
GRAPH PLOTS
As of December 31, 2003
TARGET MATURITY CITIGROUP TREASURY/
2007 FUND GOVERNMENT INDEX
APR-95 $10,000 $10,000
DEC-95 12,260 11,162
DEC-96 11,996 11,490
DEC-97 13,601 12,599
DEC-98 15,637 13,839
DEC-99 14,169 13,530
DEC-00 16,499 15,309
DEC-01 17,779 16,416
DEC-02 20,461 18,314
DEC-03 20,850 18,768
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 1.90%
Five Years 5.92%
Since Inception
(4/26/95) 8.83%
The graph compares a $10,000 investment in the First Investors Life Target
Maturity 2007 Fund beginning 4/26/95 (inception date) with a theoretical
investment in the Citigroup Treasury/Government Sponsored Index (the
"Index"). The Index is a market capitalization-weighted index that consists
of debt issued by the U.S. Treasury and U.S. Government sponsored agencies.
Every issue included in the Index is trader-priced, and the Index follows
consistent and realistic availability limits, including only those
securities with sufficient amounts outstanding. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table, it is assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03. During the periods shown, some or all of the expenses of the Fund
were waived or assumed. If such expenses had been paid by the Fund, the
Average Annual Total Return for One Year, Five Years and Since Inception
would have been 1.75%, 5.78% and 8.69%, respectively.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Citigroup Treasury/Government Sponsored Index figures are from Citigroup
and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2007 FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY ZERO
COUPON OBLIGATIONS--78.9%
Agency For International Development - Israel:
$1,513M 8/15/2007 2.94% $1,360,989 $487
1,000M 11/15/2007 2.99 891,307 319
980M 2/15/2008 3.18 860,384 308
Fannie Mae:
961M 7/15/2007 3.03 863,782 309
75M 10/8/2007 3.26 66,382 24
493M Federal Judiciary Office Building,
2/15/2007 2.88 450,893 162
Government Trust Certificate - Israel Trust:
307M 10/1/2007 3.22 272,287 98
6,904M 11/15/2007 3.25 6,093,760 2,182
766M Government Trust Certificate - Turkey
Trust, 11/15/2007 3.25 676,105 242
586M International Bank for Reconstruction &
Development, 8/15/2007 3.50 515,872 185
6,456M Resolution Funding Corporation,
10/15/2007 2.94 5,779,456 2,069
Tennessee Valley Authority:
1,166M 5/1/2007 3.08 1,053,116 377
2,600M 11/1/2007 3.25 2,297,201 823
1,000M 4/15/2008 3.54 860,225 308
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $19,353,408) 22,041,759 7,893
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT ZERO COUPON OBLIGATIONS--21.0%
6,510M U.S. Treasury Strips, 11/15/2007
(cost $5,015,603) 2.80 5,845,485 2,093
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $24,369,011) 99.9% 27,887,244 9,986
Other Assets, Less Liabilities .1 40,303 14
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $27,927,547 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the effective yields at December 31, 2003.
See notes to financial statements
Cumulative Performance Information
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Target Maturity 2010 Fund and the Citigroup Treasury/Government
Sponsored Index.
TARGET MATURITY 2010 FUND
GRAPH PLOTS
As of December 31, 2003
TARGET MATURITY CITIGROUP TREASURY/
2010 FUND GOVERNMENT INDEX
APR-96 $10,000 $10,000
DEC-96 11,160 10,596
DEC-97 12,930 11,619
DEC-98 14,787 12,762
DEC-99 13,053 12,477
DEC-00 15,802 14,118
DEC-01 16,616 15,139
DEC-02 19,753 16,889
DEC-03 20,315 17,307
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 2.84%
Five Years 6.55%
Since Inception
(4/30/96) 9.68%
The graph compares a $10,000 investment in the First Investors Life Target
Maturity 2010 Fund beginning 4/30/96 (inception date) with a theoretical
investment in the Citigroup Treasury/Government Sponsored Index (the
"Index"). The Index is a market capitalization-weighted index that consists
of debt issued by the U.S. Treasury and U.S. Government sponsored agencies.
Every issue included in the Index is trader-priced, and the Index follows
consistent and realistic availability limits, including only those
securities with sufficient amounts outstanding. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table it is assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03. During the periods shown, some of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the Average
Annual Total Return for One Year, Five Years and Since Inception would have
been 2.69%, 6.41% and 9.56%, respectively.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Citigroup Treasury/Government Sponsored Index figures are from Citigroup
and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2010 FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
Principal Effective $10,000 of
Amount Security Yield+ Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY ZERO
COUPON OBLIGATIONS--68.2%
Agency For International Development - Israel:
$1,303M 8/15/2010 4.05% $998,922 $602
495M 9/15/2010 4.05 378,224 228
Fannie Mae:
1,260M 8/7/2010 4.21 956,734 576
700M 10/8/2010 4.37 522,291 315
600M 11/29/2010 4.40 444,133 268
2,321M 2/1/2011 4.74 1,665,090 1,003
1,100M Freddie Mac, 9/15/2010 4.17 834,149 502
500M Government Trust Certificate - Israel
Trust, 11/15/2010 4.32 372,743 224
1,990M Government Trust Certificate - Turkey
Trust, 11/15/2010 4.32 1,483,517 894
Resolution Funding Corporation:
650M 10/15/2010 4.03 495,764 299
2,998M 1/15/2011 4.14 2,246,260 1,353
1,250M Tennessee Valley Authority, 11/1/2010 4.38 929,642 560
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $9,747,576) 11,327,469 6,824
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT ZERO COUPON OBLIGATIONS--31.2%
6,735M U.S. Treasury Strips, 11/15/2010
(cost $4,341,269) 3.87 5,175,329 3,118
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $14,088,845) 99.4% 16,502,798 9,942
Other Assets, Less Liabilities .6 96,712 58
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $16,599,510 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the effective yields at
December 31, 2003.
See notes to financial statements
Cumulative Performance Information
FIRST INVESTORS LIFE TARGET MATURITY 2015 FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Target Maturity 2015 Fund and the Citigroup Treasury/Government
Sponsored Index.
TARGET MATURITY 2015 FUND
GRAPH PLOTS
As of December 31, 2003
TARGET MATURITY CITIGROUP TREASURY/
2015 FUND GOVERNMENT INDEX
NOV-99 $10,000 $10,000
DEC-99 9,510 9,928
DEC-00 11,888 11,234
DEC-01 11,990 12,046
DEC-02 14,790 13,438
DEC-03 15,270 13,771
DEC-99 13,053 12,477
DEC-00 15,802 14,118
DEC-01 16,616 15,139
DEC-02 19,753 16,889
DEC-03 20,315 17,307
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 3.24%
Since Inception
(11/8/99) 10.74%
The graph compares a $10,000 investment in the First Investors Life Target
Maturity 2015 Fund beginning 11/8/99 (inception date) with a theoretical
investment in the Citigroup Treasury/Government Sponsored Index (the
"Index"). The Index is a market capitalization-weighted index that consists
of debt issued by the U.S. Treasury and U.S. Government sponsored agencies.
Every issue included in the Index is trader-priced, and the Index follows
consistent and realistic availability limits, including only those
securities with sufficient amounts outstanding. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in the Index. For purposes of the graph and the accompanying
table, it is assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03. During the periods shown, some of the expenses of the Fund were
waived or assumed. If such expenses had been paid by the Fund, the Average
Annual Total Return for One Year and Since Inception would have been 3.09%
and 10.59%, respectively.
The returns show do not reflect any sales charges, since the Fund sells its
shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Citigroup Treasury/Government Sponsored Index figures are from Citigroup
and all other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE TARGET MATURITY 2015 FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
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 5.10% $387,071 $315
1,584M 11/15/2015 5.14 867,381 706
300M 3/15/2016 5.19 160,483 131
Fannie Mae:
150M 2/12/2015 5.11 85,568 70
243M 8/12/2015 5.19 134,042 109
600M 9/23/2015 5.47 318,753 259
258M 11/15/2015 5.29 138,787 113
650M Federal Judiciary Office Building,
2/15/2015 5.15 369,233 300
Freddie Mac:
550M 3/15/2015 5.11 312,350 254
1,760M 9/15/2015 5.21 963,880 784
625M 1/15/2016 5.28 333,838 272
210M Government Trust Certificate - Turkey
Trust, 5/15/2015 5.28 116,099 94
200M International Bank for Reconstruction
& Development, 2/15/2015 5.60 108,206 88
Resolution Funding Corporation:
1,773M 10/15/2015 5.14 974,352 793
320M 1/15/2016 5.19 172,754 141
2,000M Tennessee Valley Authority, 11/1/2015 5.47 1,055,782 859
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Agency Zero Coupon
Obligations (cost $5,973,071) 6,498,579 5,288
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT ZERO COUPON OBLIGATIONS--47.0%
U.S. Treasury Strips:
9,750M 11/15/2015 4.89 5,494,232 4,471
500M 11/15/2015 4.93 280,453 228
- ----------------------------------------------------------------------------------------------------------------------
Total Value of U.S. Government Zero Coupon
Obligations (cost $5,308,993) 5,774,685 4,699
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $11,282,064) 99.9% 12,273,264 9,987
Other Assets, Less Liabilities .1 15,959 13
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $12,289,223 $10,000
======================================================================================================================
+ The effective yields shown for the zero coupon obligations are the
effective yields at December 31, 2003.
See notes to financial statements
Portfolio Manager's Letter
FIRST INVESTORS LIFE VALUE FUND
Dear Investor:
This is the annual report for the First Investors Life Value Fund for the
year ended December 31, 2003. During the year, the Fund's return on a net
asset value basis was 27.6% and the Fund declared dividends of 32 cents per
share.
The Fund's performance was driven by the improving economy, the rise in the
equity market and sector allocation. The Fund benefited from the strong
performance of holdings in many sectors, most notably the consumer
discretionary, financial, information technology and industrial sectors.
Some of the strongest performing stocks for the Fund included McDonald's,
which rebounded due to menu improvements and successful new products;
Alcoa, which benefited from rising aluminum prices; and T. Rowe Price
Group, whose shares were boosted by the strength of capital markets in
2003. In addition, holdings in Pall Corp., a maker of filtration products,
and FleetBoston Financial, a major regional bank, aided returns.
Primarily due to an underweight position in the technology sector, the Fund
underperformed relative to the S&P 500. In addition, our technology stocks
did not match the results of the S&P 500 technology sector. This sector is
typically not a rich hunting ground for value investors because many
technology companies do not have a history of profitability, there is a
high risk of product (and company) obsolescence, and valuations often
reflect optimistic assumptions about future growth.
Thank you for placing your trust in First Investors. As always, we
appreciate the opportunity to serve your investment needs.
Sincerely,
/S/ MATTHEW S. WRIGHT
Matthew S. Wright
Portfolio Manager
January 31, 2004
Cumulative Performance Information
FIRST INVESTORS LIFE VALUE FUND
Comparison of change in value of $10,000 investment in the First Investors
Life Value Fund and the Standard & Poor's 500 Index.
VALUE FUND
GRAPH PLOTS
As of December 31, 2003
LIFE SERIES S&P 500
VALUE FUND INDEX
DEC-93 $10,000 $10,000
DEC-94 9,276 10,132
DEC-95 12,083 13,940
DEC-96 13,240 17,140
DEC-97 16,559 22,859
DEC-98 18,642 29,337
DEC-99 21,887 35,510
DEC-00 21,759 32,276
DEC-01 17,344 28,439
DEC-02 13,598 22,154
DEC-03 17,349 28,508
(INSET BOX IN CHART READS:)
Average Annual Total Returns*
One Year 27.59%
Five Years (1.43%)
Ten Years 5.66%
The graph compares a $10,000 investment in the First Investors Life Value
Fund beginning 12/31/93 with a theoretical investment in the Standard &
Poor's 500 Index (the "Index"). The Index is an unmanaged
capitalization-weighted index of 500 stocks designed to measure performance
of the broad domestic economy through changes in the aggregate market value
of such stocks, which represent all major industries. It is not possible to
invest directly in this Index. In addition, the Index does not take into
account fees and expenses that an investor would incur in purchasing
securities in this Index. For purposes of the graph and the accompanying
table it is assumed that all dividends and distributions were reinvested.
* The Average Annual Total Return figures are for the periods ended
12/31/03. During certain of the periods shown, some or all of the expenses
of the Fund were waived or assumed. If such expenses had been paid by the
Fund, the Average Annual Total Return for Five Years and Ten Years would
have been (1.44%) and 5.45%, respectively.
The returns shown do not reflect any sales charges, since the Fund sells
its shares solely to variable annuity and/or variable life insurance
subaccounts at net asset value. The returns do not reflect the fees and
charges that an individual would pay in connection with an investment in a
variable annuity or life contract or policy. Results represent past
performance and do not indicate future results. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
Standard & Poor's 500 Index figures are from Standard & Poor's and all
other figures are from First Investors Management Company, Inc.
Portfolio of Investments
FIRST INVESTORS LIFE VALUE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--94.7%
Consumer Discretionary--13.5%
2,200 Coachmen Industries, Inc. $39,842 $7
16,200 Genuine Parts Company 537,840 93
12,400 Home Depot, Inc. 440,076 76
23,200 J.C. Penney Company, Inc. (Holding Company) 609,696 106
4,200 Jones Apparel Group, Inc. 147,966 26
13,300 Lee Enterprises, Inc. 580,545 101
20,200 Leggett & Platt, Inc. 436,926 76
5,900 Liberty Corporation 266,621 46
33,400 Limited Brands 602,202 104
4,800 Magna International, Inc. - Class "A" 384,240 67
20,900 May Department Stores Company 607,563 105
37,400 McDonald's Corporation 928,642 161
29,900 Natuzzi SpA (ADR) 301,392 52
10,200 Newell Rubbermaid, Inc. 232,254 40
7,000 OshKosh B'Gosh, Inc. - Class "A" 150,220 26
53,600 Pearson PLC (ADR) 600,856 104
8,200 Tupperware Corporation 142,188 25
32,600 Walt Disney Company 760,558 132
- ----------------------------------------------------------------------------------------------------------------------
7,769,627 1,347
- ----------------------------------------------------------------------------------------------------------------------
Consumer Staples--9.8%
6,900 Brown-Forman Corporation - Class "B" 644,805 112
11,400 Coca-Cola Company 578,550 100
23,200 ConAgra Foods, Inc. 612,248 106
5,895 * Del Monte Foods Company 61,308 11
14,800 Diageo PLC (ADR) 782,328 136
14,800 H.J. Heinz Company 539,164 95
11,900 Kimberly-Clark Corporation 703,171 122
13,600 Lance, Inc. 204,408 35
27,100 Ruddick Corporation 485,090 84
13,400 Sara Lee Corporation 290,914 50
21,800 Tasty Baking Company 220,398 38
14,600 UST, Inc. 521,074 90
- ----------------------------------------------------------------------------------------------------------------------
5,643,458 979
- ----------------------------------------------------------------------------------------------------------------------
Energy--10.8%
9,400 Anadarko Petroleum Corporation 479,494 83
13,500 BP PLC (ADR) 666,225 116
6,800 ChevronTexaco Corporation 587,452 102
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE VALUE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Energy (continued)
10,400 ConocoPhillips $681,928 $118
26,800 Diamond Offshore Drilling, Inc. 549,668 95
3,600 EOG Resources, Inc. 166,212 29
12,800 Kerr-McGee Corporation 595,072 103
17,800 Marathon Oil Corporation 589,002 102
13,100 Royal Dutch Petroleum Company-NY Shares (ADR) 686,309 119
18,400 Tidewater, Inc. 549,792 95
17,100 Unocal Corporation 629,793 109
2,000 * Whiting Petroleum Corporation 36,800 7
- ----------------------------------------------------------------------------------------------------------------------
6,217,747 1,078
- ----------------------------------------------------------------------------------------------------------------------
Financials--22.8%
10,000 A.G. Edwards, Inc. 362,300 63
3,900 ACE, Ltd. 161,538 28
17,400 Allstate Corporation 748,548 130
23,600 AmSouth Bancorporation 578,200 100
25,500 Aon Corporation 610,470 106
18,200 Banknorth Group, Inc. 592,046 103
22,700 Brascan Corporation - Class "A" 693,258 120
12,900 Cincinnati Financial Corporation 540,252 94
8,000 Comerica, Inc. 448,480 78
12,800 Erie Indemnity Company - Class "A" 542,464 94
11,400 FBL Financial Group, Inc. - Class "A" 294,120 51
16,200 FleetBoston Financial Corporation 707,130 122
11,400 Jefferson-Pilot Corporation 577,410 100
19,600 KeyCorp 574,672 100
14,500 Koger Equity, Inc. 303,485 53
14,600 Lincoln National Corporation 589,402 102
11,100 Morgan Stanley 642,357 111
6,800 One Liberty Properties, Inc. (REIT) 135,660 23
17,800 Plum Creek Timber Company, Inc. (REIT) 542,010 94
9,800 PNC Financial Services Group 536,354 93
14,700 Protective Life Corporation 497,448 86
22,700 Sky Financial Group, Inc. 588,838 102
7,800 SunTrust Banks, Inc. 557,700 97
15,100 T. Rowe Price Group, Inc. 715,891 125
10,600 Wells Fargo & Company 624,234 108
- ----------------------------------------------------------------------------------------------------------------------
13,164,267 2,283
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Health Care--5.9%
11,800 Abbott Laboratories $549,880 $95
11,600 GlaxoSmithKline PLC (ADR) 540,792 94
11,200 Johnson & Johnson 578,592 100
13,200 Merck & Company, Inc. 609,840 106
19,000 Pfizer, Inc. 671,270 117
25,900 Schering-Plough Corporation 450,401 78
- ----------------------------------------------------------------------------------------------------------------------
3,400,775 590
- ----------------------------------------------------------------------------------------------------------------------
Industrials--9.9%
900 Alexander & Baldwin, Inc. 30,321 5
11,200 ALLETE, Inc. 342,720 59
11,200 Baldor Electric Company 255,920 44
8,800 CNF, Inc. 298,320 52
11,500 Dover Corporation 457,125 79
13,400 Federal Signal Corporation 234,768 41
7,700 General Dynamics Corporation 696,003 121
19,600 Honeywell International, Inc. 655,228 114
23,800 Masco Corporation 652,358 113
21,200 Norfolk Southern Corporation 501,380 87
25,200 Pall Corporation 676,116 117
13,700 Pitney Bowes, Inc. 556,494 97
7,700 Spartan Motors, Inc. 77,770 13
5,500 Teleflex, Inc. 265,815 46
- ----------------------------------------------------------------------------------------------------------------------
5,700,338 988
- ----------------------------------------------------------------------------------------------------------------------
Information Technology--4.6%
14,500 Automatic Data Processing, Inc. 574,345 100
21,700 AVX Corporation 360,654 62
6,300 Bel Fuse, Inc. - Class "B" 205,569 36
27,300 Hewlett-Packard Company 627,081 109
23,100 Methode Electronics, Inc. - Class "A" 282,513 49
22,300 Motorola, Inc. 313,761 54
8,300 Paychex, Inc. 308,760 53
- ----------------------------------------------------------------------------------------------------------------------
2,672,683 463
- ----------------------------------------------------------------------------------------------------------------------
Materials--7.4%
10,500 Air Products & Chemicals, Inc. 554,715 96
20,700 Alcoa, Inc. 786,600 136
12,700 * Compass Minerals International, Inc. 181,356 31
- ----------------------------------------------------------------------------------------------------------------------
Portfolio of Investments (continued)
FIRST INVESTORS LIFE VALUE FUND
December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
For Each
$10,000 of
Shares Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Materials (continued)
14,300 Du Pont (E.I.) de Nemours & Company $656,227 $114
19,800 Glatfelter 246,510 43
12,400 Great Lakes Chemical Corporation 337,156 59
17,800 Lubrizol Corporation 578,856 100
25,100 Sonoco Products Company 617,962 107
6,800 Vulcan Materials Company 323,476 56
- ----------------------------------------------------------------------------------------------------------------------
4,282,858 742
- ----------------------------------------------------------------------------------------------------------------------
Other--.4%
5,000 Market 2000+ HOLDRs Trust 270,500 44
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--4.4%
20,000 BellSouth Corporation 566,000 98
10,700 CT Communications, Inc. 144,450 25
8,032 D&E Communications, Inc. 116,544 20
13,000 Nippon Telegraph and Telephone Corporation (ADR) 319,280 56
18,900 SBC Communications, Inc. 492,723 85
7,100 Telephone & Data Systems, Inc. 444,105 77
12,818 Verizon Communications, Inc. 449,655 78
- ----------------------------------------------------------------------------------------------------------------------
2,532,757 439
- ----------------------------------------------------------------------------------------------------------------------
Utilities--5.2%
18,050 American States Water Company 451,250 78
6,400 Equitable Resources, Inc. 274,688 48
13,200 KeySpan Corporation 485,760 84
28,100 NiSource, Inc. 616,514 107
13,500 ONEOK, Inc. 298,080 52
4,500 South Jersey Industries, Inc. 182,250 32
17,200 Southwest Gas Corporation 386,140 67
12,500 Vectren Corporation 308,125 53
- ----------------------------------------------------------------------------------------------------------------------
3,002,807 521
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Common Stocks (cost $44,093,753) 54,657,817 9,474
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--2.5%
Financials--.9%
18,800 Chubb Corporation, 7%, 2005 - Series "A" 536,928 92
- ----------------------------------------------------------------------------------------------------------------------
Health Care--.5%
2,900 Anthem, Inc., 6%, 2004 255,867 45
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Amount
Invested
Shares or For Each
Principal $10,000 of
Amount Security Value Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Industrials--.7%
4,050 Northrop Grumman Corporation, 7.25%, 2004 $419,985 $73
- ----------------------------------------------------------------------------------------------------------------------
Telecommunication Services--.4%
4,600 ALLTEL Corporation, 7.75%, 2005 228,620 39
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Convertible Preferred Stocks (cost $1,295,663) 1,441,400 249
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.7%
Telecommunication Services--.4%
7,700 Verizon South, Inc., 7%, 2041 - Series "F" 206,976 36
- ----------------------------------------------------------------------------------------------------------------------
Utilities--.3%
6,700 Entergy Louisiana, Inc., 7.6%, 2032 182,106 32
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Preferred Stocks (cost $358,452) 389,082 68
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY
OBLIGATIONS--1.7%
$1,000M Fannie Mae, 1%, 1/26/04 (cost $999,306) 999,306 173
- ----------------------------------------------------------------------------------------------------------------------
Total Value of Investments (cost $46,747,174) 99.6% 57,487,605 9,964
Other Assets, Less Liabilities .4 210,434 36
- ----------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $57,698,039 $10,000
======================================================================================================================
* Non-income producing
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 2003
- -------------------------------------------------------------------------------------------------------------------------------
CASH FOCUSED
BLUE CHIP MANAGEMENT DISCOVERY EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $135,116,061 $9,559,805 $91,382,254 $8,964,495
============= ============= ============= =============
At value (Note 1A) $178,661,248 $9,559,805 $121,890,139 $9,950,549
Cash 237,927 62,741 689,422 9,950
Receivables:
Investment securities sold 435,326 -- 671,353 --
Interest and dividends 176,596 24,395 31,084 10,049
Trust shares sold 87,068 138 83,765 10,293
Other assets 13,089 904 6,043 3,515
------------- ------------- ------------- -------------
Total Assets 179,611,254 9,647,983 123,371,806 9,984,356
------------- ------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased 613,824 -- 1,338,886 --
Trust shares redeemed 243,626 335 100,361 311
Accrued advisory fees 117,854 4,961 81,567 6,528
Accrued expenses 25,704 2,236 19,337 2,875
------------- ------------- ------------- -------------
Total Liabilities 1,001,008 7,532 1,540,151 9,714
------------- ------------- ------------- -------------
Net Assets $178,610,246 $9,640,451 $121,831,655 $9,974,642
============= ============= ============= =============
Net Assets Consist of:
Capital paid in $191,684,890 $9,640,451 $135,155,225 $11,704,562
Undistributed net investment income 1,124,213 -- -- 54,965
Accumulated net realized loss on investments (57,744,044) -- (43,831,455) (2,770,939)
Net unrealized appreciation (depreciation) of investments 43,545,187 -- 30,507,885 986,054
------------- ------------- ------------- -------------
Total $178,610,246 $9,640,451 $121,831,655 $9,974,642
============= ============= ============= =============
Shares of beneficial interest outstanding (Note 2) 9,447,048 9,640,451 5,602,288 1,260,166
============= ============= ============= =============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $18.91 $1.00 $21.75 $7.92
============= ============= ============= =============
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 2003
- ------------------------------------------------------------------------------------------------------------
GOVERNMENT GROWTH HIGH YIELD
- ------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $23,271,637 $169,049,911 $64,519,643
============= ============= =============
At value (Note 1A) $23,682,403 $221,644,018 $62,438,347
Cash 136,200 39,219 249,017
Receivables:
Investment securities sold 256,793 283,811 536,729
Interest and dividends 149,804 163,578 1,340,409
Trust shares sold 9,893 77,542 5,004
Other assets 462 14,164 4,264
------------- ------------- -------------
Total Assets 24,235,555 222,222,332 64,573,770
------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased -- 237,913 274,201
Trust shares redeemed 53,241 116,011 80,642
Accrued advisory fees 13,164 146,553 43,106
Accrued expenses 4,402 15,269 17,123
------------- ------------- -------------
Total Liabilities 70,807 515,746 415,072
------------- ------------- -------------
Net Assets $24,164,748 $221,706,586 $64,158,698
============= ============= =============
Net Assets Consist of:
Capital paid in $23,057,959 $194,378,243 $76,395,754
Undistributed net investment income 1,273,358 1,133,232 4,654,467
Accumulated net realized loss on investments (577,335) (26,398,996) (14,810,227)
Net unrealized appreciation (depreciation) of investments 410,766 52,594,107 (2,081,296)
------------- ------------- -------------
Total $24,164,748 $221,706,586 $64,158,698
============= ============= =============
Shares of beneficial interest outstanding (Note 2) 2,282,406 7,239,864 7,551,569
============= ============= =============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $10.59 $30.62 $8.50
============= ============= =============
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 2003
- -------------------------------------------------------------------------------------------------------------
TARGET
INTERNATIONAL INVESTMENT MATURITY
SECURITIES GRADE 2007
- -------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $72,703,643 $34,100,215 $24,369,011
============= ============= =============
At value (Note 1A) $89,699,331 $36,660,233 $27,887,244
Cash 9,689 257,418 66,779
Receivables:
Investment securities sold 279,577 -- --
Interest and dividends 124,766 576,259 --
Trust shares sold 32,549 9,278 2,377
Forward currency contracts (Note 6). 17,549 -- --
Other assets 6,579 1,394 1,637
------------- ------------- -------------
Total Assets 90,170,040 37,504,582 27,958,037
------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased 303,435 114,941 --
Trust shares redeemed 48,433 47,365 9,249
Accrued advisory fees 58,722 20,141 15,178
Accrued expenses 21,601 7,718 6,063
------------- ------------- -------------
Total Liabilities 432,191 190,165 30,490
------------- ------------- -------------
Net Assets $89,737,849 $37,314,417 $27,927,547
============= ============= =============
Net Assets Consist of:
Capital paid in $89,272,832 $34,338,468 $22,187,645
Undistributed net investment income 938,507 1,846,729 1,516,603
Accumulated net realized gain (loss) on investments,
futures contracts and foreign currency transactions (17,648,708) (1,430,798) 705,066
Net unrealized appreciation of investments,
future contracts and foreign currency transactions 17,175,218 2,560,018 3,518,233
------------- ------------- -------------
Total $89,737,849 $37,314,417 $27,927,547
============= ============= =============
Shares of beneficial interest outstanding (Note 2) 5,477,117 3,142,949 1,985,397
============= ============= =============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $16.38 $11.87 $14.07
============= ============= =============
See notes to financial statements
Statement of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUND
December 31, 2003
- ------------------------------------------------------------------------------------------------------------
TARGET TARGET
MATURITY MATURITY
2010 2015 VALUE
- ------------------------------------------------------------------------------------------------------------
Assets
Investments in securities:
At identified cost $14,088,845 $11,282,064 $46,747,174
============= ============= =============
At value (Note 1A) $16,502,798 $12,273,264 $57,487,605
Cash 142,167 44,302 161,096
Receivables:
Investment securities sold -- -- --
Interest and dividends -- -- 106,057
Trust shares sold 2,881 75 38,367
Forward currency contracts (Note 6). -- -- --
Other assets 612 308 3,824
------------- ------------- -------------
Total Assets 16,648,458 12,317,949 57,796,949
------------- ------------- -------------
Liabilities
Payables:
Investment securities purchased -- -- --
Trust shares redeemed 36,782 18,541 53,710
Accrued advisory fees 9,033 6,683 37,906
Accrued expenses 3,133 3,502 7,294
------------- ------------- -------------
Total Liabilities 48,948 28,726 98,910
------------- ------------- -------------
Net Assets $16,599,510 $12,289,223 $57,698,039
============= ============= =============
Net Assets Consist of:
Capital paid in $13,340,737 $10,885,644 $67,330,386
Undistributed net investment income 783,699 462,634 1,064,786
Accumulated net realized gain (loss) on investments,
futures contracts and foreign currency transactions 61,121 (50,255) (21,437,564)
Net unrealized appreciation of investments,
future contracts and foreign currency transactions 2,413,953 991,200 10,740,431
------------- ------------- -------------
Total $16,599,510 $12,289,223 $57,698,039
============= ============= =============
Shares of beneficial interest outstanding (Note 2) 1,093,544 894,547 4,812,506
============= ============= =============
Net asset value, offering and redemption price per share
(Net assets divided by shares outstanding) $15.18 $13.74 $11.99
============= ============= =============
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------
CASH FOCUSED
BLUE CHIP MANAGEMENT DISCOVERY EQUITY
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $39,733 $147,512 $48,505 $1,919
Dividends 2,388,906 -- 448,070 130,753
------------- ------------- ------------- -------------
Total income 2,428,639 147,512 496,575 132,672
------------- ------------- ------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 1,175,722 88,227 753,250 61,138
Professional fees 28,940 9,112 19,501 8,496
Custodian fees and expenses 40,667 7,482 31,735 934
Reports and notices to shareholders 20,629 3,576 13,792 3,069
Other expenses 43,099 4,011 30,858 4,096
------------- ------------- ------------- -------------
Total expenses 1,309,057 112,408 849,136 77,733
Less: Expenses waived or assumed -- (29,582) -- --
Custodian fees paid indirectly (4,699) (440) (4,553) (42)
------------- ------------- ------------- -------------
Net expenses 1,304,358 82,386 844,583 77,691
------------- ------------- ------------- -------------
Net investment income (loss) 1,124,281 65,126 (348,008) 54,981
------------- ------------- ------------- -------------
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Net realized gain (loss) on investments (328,315) -- 5,786,738 (166,220)
Net unrealized appreciation (depreciation) of investments 36,458,362 -- 28,809,508 2,170,169
------------- ------------- ------------- -------------
Net gain (loss) on investments 36,130,047 -- 34,596,246 2,003,949
------------- ------------- ------------- -------------
Net Increase in Net Assets Resulting from Operations $37,254,328 $65,126 $34,248,238 $2,058,930
============= ============= ============= =============
See notes to financial statements
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 2003
- ----------------------------------------------------------------------------------------------------------
GOVERNMENT GROWTH HIGH YIELD
- ----------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $1,234,299 $33,228 $5,214,393
Dividends -- 2,677,940 1,500(a)
------------- ------------- -------------
Total income 1,234,299 2,711,168 5,215,893
------------- ------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 191,490 1,427,611 429,235
Professional fees 10,612 27,784 18,040
Custodian fees and expenses 10,504 58,272 11,871
Reports and notices to shareholders 4,984 21,524 7,461
Other expenses 11,096 43,837 21,855
------------- ------------- -------------
Total expenses 228,686 1,579,028 488,462
Less: Expenses waived or assumed (38,298) -- --
Custodian fees paid indirectly (912) (1,166) (2,772)
------------- ------------- -------------
Net expenses 189,476 1,577,862 485,690
------------- ------------- -------------
Net investment income (loss) 1,044,823 1,133,306 4,730,203
------------- ------------- -------------
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Net realized gain (loss) on investments (74,411) (2,026,643) (4,705,646)
Net unrealized appreciation (depreciation) of investments (207,715) 50,940,938 13,112,637
------------- ------------- -------------
Net gain (loss) on investments (282,126) 48,914,295 8,406,991
------------- ------------- -------------
Net Increase in Net Assets Resulting from Operations $762,697 $50,047,601 $13,137,194
============= ============= =============
(a) See Note 1H
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 2003
- -------------------------------------------------------------------------------------------------------------------------------
TARGET TARGET
INTERNATIONAL INVESTMENT MATURITY MATURITY
SECURITIES GRADE 2007 2010
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $122,674 $2,157,088 $1,739,660 $911,830
Dividends 1,265,319(b) 4,633 -- --
------------- ------------- ------------- -------------
Total income 1,387,993 2,161,721 1,739,660 911,830
------------- ------------- ------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 571,142 269,094 232,716 129,395
Professional fees 17,946 11,560 12,494 9,852
Custodian fees and expenses 201,403 9,561 5,494 3,335
Reports and notices to shareholders 9,325 5,533 5,510 3,911
Other expenses 24,207 20,738 13,688 7,551
------------- ------------- ------------- -------------
Total expenses 824,023 316,486 269,902 154,044
Less: Expenses waived or assumed -- (53,819) (46,543) (25,879)
Custodian fees paid indirectly -- (2,274) (325) (50)
------------- ------------- ------------- -------------
Net expenses 824,023 260,393 223,034 128,115
------------- ------------- ------------- -------------
Net investment income 563,970 1,901,328 1,516,626 783,715
------------- ------------- ------------- -------------
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 5,416,776 (492,139) 739,890 138,703
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions 16,292,719 1,518,921 (1,670,706) (426,731)
------------- ------------- ------------- -------------
Net gain (loss) on investments, futures contracts and
foreign currency transactions 21,709,495 1,026,782 (930,816) (288,028)
------------- ------------- ------------- -------------
Net Increase in Net Assets Resulting from Operations $22,273,465 $2,928,110 $585,810 $495,687
============= ============= ============= =============
See notes to financial statements
Statement of Operations
FIRST INVESTORS LIFE SERIES FUND
Year Ended December 31, 2003
- ------------------------------------------------------------------------------------------
TARGET
MATURITY
2015 VALUE
- ------------------------------------------------------------------------------------------
Investment Income
Income:
Interest $547,519 $33,726
Dividends -- 1,429,020
------------- -------------
Total income 547,519 1,462,746
------------- -------------
Expenses (Notes 1 and 4):
Advisory fees 81,145 363,363
Professional fees 10,183 5,930
Custodian fees and expenses 1,309 15,044
Reports and notices to shareholders 3,099 812
Other expenses 6,672 15,947
------------- -------------
Total expenses 102,408 401,096
Less: Expenses waived or assumed (16,229) --
Custodian fees paid indirectly (1,309) (3,186)
------------- -------------
Net expenses 84,870 397,910
------------- -------------
Net investment income 462,649 1,064,836
------------- -------------
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 (23,930) 940,386
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions (104,801) 10,312,762
------------- -------------
Net gain (loss) on investments, futures contracts and
foreign currency transactions (128,731) 11,253,148
------------- -------------
Net Increase in Net Assets Resulting from Operations $333,918 $12,317,984
============= =============
(b) Net of $111,732 foreign taxes withheld.
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -------------------------------------------------------------------------------------------------------------------------------
BLUE CHIP CASH MANAGEMENT
------------------------------- -------------------------------
Year Ended December 31 2003 2002 2003 2002
- -------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $1,124,281 $1,059,435 $65,126 $153,115
Net realized gain (loss) on investments (328,315) (28,336,343) -- --
Net unrealized appreciation (depreciation) of investments 36,458,362 (27,970,671) -- --
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 37,254,328 (55,247,579) 65,126 153,115
------------- ------------- ------------- -------------
Dividends to Shareholders
Net investment income (1,058,840) (912,805) (65,126) (153,115)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 6,955,695 7,791,126 2,616,598 6,913,784
Reinvestment of dividends 1,058,840 912,805 65,126 153,115
Cost of shares redeemed (13,580,549) (24,278,648) (6,706,415) (5,689,977)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share transactions (5,566,014) (15,574,717) (4,024,691) 1,376,922
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 30,629,474 (71,735,101) (4,024,691) 1,376,922
Net Assets
Beginning of year 147,980,772 219,715,873 13,665,142 12,288,220
------------- ------------- ------------- -------------
End of year+ $178,610,246 $147,980,772 $9,640,451 $13,665,142
============= ============= ============= =============
+Includes undistributed net investment income of $1,124,213 $1,058,772 $-- $--
============= ============= ============= =============
*Trust Shares Issued and Redeemed
Sold 425,092 446,211 2,616,598 6,913,784
Issued for dividends reinvested 74,097 47,296 65,126 153,115
Redeemed (850,401) (1,445,591) (6,706,415) (5,689,977)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares outstanding (351,212) (952,084) (4,024,691) 1,376,922
============= ============= ============= =============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
DISCOVERY FOCUSED EQUITY
------------------------------- -------------------------------
Year Ended December 31 2003 2002 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income (loss) $(348,008) $(451,876) $54,981 $9,924
Net realized gain (loss) on investments 5,786,738 (15,601,945) (166,220) (1,291,649)
Net unrealized appreciation (depreciation) of investments 28,809,508 (17,870,170) 2,170,169 (1,317,623)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 34,248,238 (33,923,991) 2,058,930 (2,599,348)
------------- ------------- ------------- -------------
Dividends to Shareholders
Net investment income -- -- (9,919) (23,149)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 5,806,509 7,235,749 1,611,746 2,042,700
Reinvestment of dividends -- -- 9,919 23,149
Cost of shares redeemed (7,338,632) (9,943,319) (624,075) (1,060,293)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share transactions (1,532,123) (2,707,570) 997,590 1,005,556
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 32,716,115 (36,631,561) 3,046,601 (1,616,941)
Net Assets
Beginning of year 89,115,540 125,747,101 6,928,041 8,544,982
------------- ------------- ------------- -------------
End of year+ $121,831,655 $89,115,540 $9,974,642 $6,928,041
============= ============= ============= =============
+Includes undistributed net investment income of $-- $-- $54,965 $9,903
============= ============= ============= =============
*Trust Shares Issued and Redeemed
Sold 326,384 400,902 237,078 284,646
Issued for dividends reinvested -- -- 1,675 2,854
Redeemed (428,224) (564,038) (93,475) (159,363)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares outstanding (101,840) (163,136) 145,278 128,137
============= ============= ============= =============
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- --------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT GROWTH
------------------------------- -------------------------------
Year Ended December 31 2003 2002 2003 2002
- --------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,044,823 $1,075,195 $1,133,306 $880,415
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions (74,411) 90,100 (2,026,643) (14,051,918)
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions (207,715) 345,655 50,940,938 (39,789,267)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 762,697 1,510,950 50,047,601 (52,960,770)
------------- ------------- ------------- -------------
Dividends to Shareholders
Net investment income (1,075,096) (845,376) (880,061) (483,769)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 3,585,627 9,494,207 9,614,986 9,426,487
Reinvestment of dividends 1,075,096 845,376 880,061 483,769
Cost of shares redeemed (5,260,556) (2,508,448) (14,237,360) (21,559,624)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share transactions (599,833) 7,831,135 (3,742,313) (11,649,368)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (912,232) 8,496,709 45,425,227 (65,093,907)
Net Assets
Beginning of year 25,076,980 16,580,271 176,281,359 241,375,266
------------- ------------- ------------- -------------
End of year+ $24,164,748 $25,076,980 $221,706,586 $176,281,359
============= ============= ============= =============
+Includes undistributed net investment income of $1,273,358 $1,075,061 $1,133,232 $879,987
============= ============= ============= =============
*Trust Shares Issued and Redeemed
Sold 341,342 911,005 364,057 352,788
Issued for dividends reinvested 103,874 83,618 38,924 16,404
Redeemed (503,373) (241,266) (560,944) (830,747)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares outstanding (58,157) 753,357 (157,963) (461,555)
============= ============= ============= =============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL
HIGH YIELD SECURITIES
------------------------------- -------------------------------
Year Ended December 31 2003 2002 2003 2002
- -------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $4,730,203 $4,569,568 $563,970 $528,914
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions (4,705,646) (4,115,176) 5,416,776 (9,967,816)
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions 13,112,637 602,919 16,292,719 (7,897,229)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 13,137,194 1,057,311 22,273,465 (17,336,131)
------------- ------------- ------------- -------------
Dividends to Shareholders
Net investment income (4,616,701) (5,480,290) (750,556) (515,963)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 5,271,096 3,410,846 2,569,279 3,410,096
Reinvestment of dividends 4,616,701 5,480,290 750,556 515,963
Cost of shares redeemed (3,817,083) (5,296,907) (7,580,280) (10,675,500)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share transactions 6,070,714 3,594,229 (4,260,445) (6,749,441)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 14,591,207 (828,750) 17,262,464 (24,601,535)
Net Assets
Beginning of year 49,567,491 50,396,241 72,475,385 97,076,920
------------- ------------- ------------- -------------
End of year+ $64,158,698 $49,567,491 $89,737,849 $72,475,385
============= ============= ============= =============
+Includes undistributed net investment income of $4,654,467 $4,478,411 $938,507 $722,234
============= ============= ============= =============
*Trust Shares Issued and Redeemed
Sold 690,503 462,403 188,474 248,685
Issued for dividends reinvested 656,714 755,902 64,481 35,219
Redeemed (493,683) (720,773) (573,700) (784,889)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares outstanding 853,534 497,532 (320,745) (500,985)
============= ============= ============= =============
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
TARGET
INVESTMENT GRADE MATURITY 2007
------------------------------- -------------------------------
Year Ended December 31 2003 2002 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,901,328 $1,813,722 $1,516,626 $1,630,792
Net realized gain (loss) on investments (492,139) (10,880) 739,890 485,403
Net unrealized appreciation (depreciation) of investments 1,518,921 549,274 (1,670,706) 2,480,320
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations 2,928,110 2,352,116 585,810 4,596,515
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (1,905,350) (1,570,624) (1,630,591) (1,630,651)
Net realized gains -- -- (305,141) --
------------- ------------- ------------- -------------
Total distributions (1,905,350) (1,570,624) (1,935,732) (1,630,651)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 5,031,355 7,046,437 1,052,395 1,900,901
Reinvestment of distributions 1,905,350 1,570,624 1,935,732 1,630,651
Cost of shares redeemed (4,177,963) (3,759,303) (6,274,761) (6,027,922)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share transactions 2,758,742 4,857,758 (3,286,634) (2,496,370)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 3,781,502 5,639,250 (4,636,556) 469,494
Net Assets
Beginning of year 33,532,915 27,893,665 32,564,103 32,094,609
------------- ------------- ------------- -------------
End of year+ $37,314,417 $33,532,915 $27,927,547 $32,564,103
============= ============= ============= =============
+Includes undistributed net investment income of $1,846,729 $1,765,964 $1,516,603 $1,630,568
============= ============= ============= =============
*Trust Shares Issued and Redeemed
Sold 437,133 635,829 74,579 137,892
Issued for distributions reinvested 170,730 144,758 138,563 125,050
Redeemed (363,285) (337,829) (445,468) (435,821)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares outstanding 244,578 442,758 (232,326) (172,879)
============= ============= ============= =============
See notes to financial statements
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------------------------------
TARGET TARGET
MATURITY 2010 MATURITY 2015
------------------------------- -------------------------------
Year Ended December 31 2003 2002 2003 2002
- -----------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $783,715 $748,937 $462,649 $288,507
Net realized gain (loss) on investments 138,703 22,297 (23,930) (4,285)
Net unrealized appreciation (depreciation) of investments (426,731) 1,938,502 (104,801) 1,038,743
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations 495,687 2,709,736 333,918 1,322,965
------------- ------------- ------------- -------------
Distributions to Shareholders
Net investment income (748,880) (662,873) (288,490) (185,253)
Net realized gains -- -- -- --
------------- ------------- ------------- -------------
Total distributions (748,880) (662,873) (288,490) (185,253)
------------- ------------- ------------- -------------
Trust Share Transactions*
Proceeds from shares sold 2,281,857 3,186,375 4,455,629 4,236,116
Reinvestment of distributions 748,880 662,873 288,490 185,253
Cost of shares redeemed (3,680,701) (2,202,364) (1,622,433) (474,449)
------------- ------------- ------------- -------------
Net increase (decrease) from trust share transactions (649,964) 1,646,884 3,121,686 3,946,920
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (903,157) 3,693,747 3,167,114 5,084,632
Net Assets
Beginning of year 17,502,667 13,808,920 9,122,109 4,037,477
------------- ------------- ------------- -------------
End of year+ $16,599,510 $17,502,667 $12,289,223 $9,122,109
============= ============= ============= =============
+Includes undistributed net investment income of $783,699 $748,864 $462,634 $288,475
============= ============= ============= =============
*Trust Shares Issued and Redeemed
Sold 151,355 225,120 326,769 338,028
Issued for distributions reinvested 49,398 49,542 20,965 16,081
Redeemed (242,847) (154,853) (118,710) (37,431)
------------- ------------- ------------- -------------
Net increase (decrease) in trust shares outstanding (42,094) 119,809 229,024 316,678
============= ============= ============= =============
Statement of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------------
VALUE
-------------------------------
Year Ended December 31 2003 2002
- -----------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations
Net investment income $1,064,836 $1,475,912
Net realized gain (loss) on investments 940,386 (13,315,507)
Net unrealized appreciation (depreciation) of investments 10,312,762 (2,150,643)
------------- -------------
Net increase (decrease) in net assets resulting
from operations 12,317,984 (13,990,238)
------------- -------------
Dividends to Shareholders
Net investment income (1,475,704) (1,389,579)
------------- -------------
Trust Share Transactions*
Proceeds from shares sold 4,339,110 2,743,939
Reinvestment of dividends 1,475,704 1,389,579
Cost of shares redeemed (3,906,194) (9,827,848)
------------- -------------
Net increase (decrease) from trust share transactions 1,908,620 (5,694,330)
------------- -------------
Net increase (decrease) in net assets 12,750,900 (21,074,147)
Net Assets
Beginning of year 44,947,139 66,021,286
------------- -------------
End of year+ $57,698,039 $44,947,139
============= =============
+Includes undistributed net investment income of $1,064,786 $1,475,654
============= =============
*Trust Shares Issued and Redeemed
Sold 420,367 250,807
Issued for dividends reinvested 166,370 119,277
Redeemed (390,632) (950,120)
------------- -------------
Net increase (decrease) in trust shares outstanding 196,105 (580,036)
============= =============
See notes to financial statements
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Notes to Financial Statements
December 31, 2003
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 (formerly Utilities Income)
Funds (each a "Fund") and 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 without regard to dividend
or interest income.
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 ("OTC")
market (including securities listed on exchanges whose primary market is
believed to be OTC) are valued at the mean between the last bid and asked
prices prior to the time when assets are valued based upon 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
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. 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 Life Series Fund's Board
of Trustees. At December 31, 2003, the Discovery Fund held one security
that was fair valued by the Valuation Committee with a value of $2,313
representing .0% of the Fund's net assets and the High Yield Fund held six
securities that were fair valued by the Valuation Committee with an
aggregate value of $3,479 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.
The Cash Management Fund values its portfolio securities in accordance with
the amortized cost method of valuation under Rule 2a-7 under the 1940 Act.
Amortized cost is an approximation of market value of an instrument,
whereby the difference between its acquisition cost and 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.
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 regulated 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, 2003, capital loss carryovers
were as follows:
Notes to Financial Statements (continued)
December 31, 2003
Year Capital Loss Carryovers Expire
---------------------------------------------------------------------------
Fund Total 2007 2008 2009 2010 2011
- ---- ----------- ----------- ----------- ----------- ----------- -----------
Blue Chip $53,273,643 $ -- $ -- $26,672,038 $22,469,579 $4,132,026
Discovery 43,649,272 -- -- 28,124,916 15,524,356 --
Focused Equity 2,730,648 29,190 1,018,850 248,878 1,083,303 350,427
Government 546,900 140,904 133,450 -- -- 272,546
Growth 24,819,636 -- -- 9,135,342 12,212,770 3,471,524
High Yield 14,778,299 566,369 1,503,018 3,751,289 4,221,351 4,736,272
International Securities 17,385,481 -- -- 7,723,963 9,661,518 --
Investment Grade 1,371,055 71,026 728,578 37,096 17,173 517,182
Target Maturity 2015 36,490 -- 3,919 13,453 4,285 14,833
Value 21,430,341 -- -- 8,718,125 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 includes 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. Shares of stock received in lieu of cash dividends on
certain preferred stock holdings of the High Yield Fund are recognized as
dividend income and recorded at the market value of the shares received.
For the year ended December 31, 2003, the High Yield Fund recognized $1,500
from these taxable "pay-in-kind" distributions. Interest income and
estimated expenses are accrued daily. Bond premiums and discounts are
amortized/accreted using the interest method. For the year ended December
31, 2003, the Bank of New York, custodian for all the Funds, except the
International Securities Fund, has provided credits in the amount of
$21,728 against custodian charges based on the uninvested cash balances of
the Funds.
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 year ended December 31, 2003, purchases
and sales of securities and long-term U.S. Government obligations,
excluding foreign currencies and short-term securities, were as follows:
Notes to Financial Statements (continued)
December 31, 2003
Long-Term US
Securities Government Obligations
---------------------------- -----------------------------
Cost of Proceeds Cost of Proceeds
Fund Purchases of Sales Purchases of Sales
- ---- ------------ ------------ ------------ ------------
Blue Chip $145,570,522 $149,472,399 $ -- $ --
Discovery 106,782,386 107,080,392 -- --
Focused Equity 4,577,140 3,403,717 -- --
Government -- -- 18,569,395 19,723,325
Growth 138,691,565 139,269,492 -- --
High Yield 21,007,146 15,691,324 -- --
International Securities 82,005,582 84,334,144 -- --
Investment Grade 5,988,085 4,467,870 1,842,858 16,804
Target Maturity 2007 -- -- -- 5,245,225
Target Maturity 2010 -- -- 204,407 1,616,276
Target Maturity 2015 -- -- 3,246,338 325,230
Value 24,409,205 14,819,790 -- --
At December 31, 2003, 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 $139,586,462 $39,327,734 $ 252,948 $39,074,786
Discovery 91,564,437 31,941,723 1,616,021 30,325,702
Focused Equity 9,004,786 1,290,854 345,091 945,763
Government 23,271,637 495,134 84,368 410,766
Growth 170,629,271 52,857,750 1,843,003 51,014,747
High Yield 64,640,122 4,276,803 6,478,578 (2,201,775)
International Securities 72,874,213 17,442,099 616,981 16,825,118
Investment Grade 34,390,847 2,484,963 215,577 2,269,386
Target Maturity 2007 24,390,676 3,496,568 -- 3,496,568
Target Maturity 2010 14,093,187 2,409,611 -- 2,409,611
Target Maturity 2015 11,295,830 1,012,292 34,858 977,434
Value 46,754,397 11,167,952 434,744 10,733,208
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 year ended December 31, 2003, total
trustees fees accrued by the Funds amounted to $53,450.
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 year ended December 31, 2003, FIMCO has voluntarily waived
20% of the .75% annual fee on the first $250 million of the average daily
net assets of the Cash Management, Government, Investment Grade, Target
Maturity 2007, Target Maturity 2010 and Target Maturity 2015 Funds. For the
year ended December 31, 2003, total advisory fees accrued to FIMCO were
$5,773,528 of which $198,413 was waived by the investment adviser. FIMCO
has voluntarily agreed for the year ended December 31, 2003 to assume other
expenses in excess of 0.10% for the Cash Management Fund. The amount of
other expenses assumed by FIMCO was $11,937.
Wellington Management Company, LLP serves as investment subadviser to the
Focused Equity Fund, the Growth Fund and the International Securities Fund.
The subadviser is paid by FIMCO and not by the Funds.
5. Restricted Securities--Certain restricted securities are exempt from the
registration requirements of the Securities Act of 1933 and may only be
resold to qualified institutional investors. At December 31, 2003, the Cash
Management Fund held seven restricted securities with an aggregate value of
$2,181,643 representing 22.6% of the Fund's net assets, the Discovery Fund
held one restricted security with an aggregate value of $2,313 representing
..0% of the Fund's net assets, the High Yield Fund held twenty-eight
restricted security with an aggregate value of $10,442,908 representing
16.3% of the Fund's net assets, and the Investment Grade Fund held seven
restricted securities with an aggregate value of $1,986,994 representing
5.3% of the Fund's net assets. These securities are valued as set forth in
Note 1A.
6. Forward Currency Contracts and Futures 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 foreign exchange risk between the trade date
and the settlement date of such 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.
Notes to Financial Statements (continued)
December 31, 2003
The International Securities Fund had the following forward currency
contracts outstanding at December 31, 2003:
Unrealized
Contracts to Buy Foreign Currency In Exchange for Settlement Date Gain (Loss)
- --------------------------------- --------------- --------------- ----------
28,335 British Pounds US $ 50,233 1/2/04 US $ 492
225,786 Canadian Dollar 172,530 1/2/04 2,193
39,872 Canadian Dollar 30,819 1/5/04 35
46,045,720 South Korean Won 38,437 1/5/04 208
871,377 Japanese Yen 8,143 1/7/04 (12)
--------------- ----------
$300,162 $ 2,916
=============== ----------
Unrealized
Contracts to Sell Foreign Currency In Exchange for Settlement Date Gain
- ---------------------------------- --------------- --------------- ----------
85,205 Euro US $106,263 1/2/04 US $ 7,037
83,963 Euro 105,376 1/5/04 7,596
--------------- ----------
$211,639 $14,633
=============== ----------
Net Unrealized Gain on Forward Currency Contract $17,549
==========
The International Securities Fund may purchase or sell stock index future
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 December 31,
2003, U.S. Treasury Bills with a market value of $234,821 were pledged to
cover margin requirements for futures contracts. Open futures contracts at
December 31, 2003 were as follows:
Unrealized
Appreciation
Contracts/Delivery Month/Commitment (Depreciation)
- ----------------------------------- ------------
15 CAC 40 Index/March 2004/Buy $ 9,669
3 DAX 30 Index/March 2004/Buy 10,959
3 IBEX PLUS/January 2004/Buy 7,913
2 MIB 30/March 2004/Buy (7,119)
25 S&P CAN 60/March 2004/Buy 62,704
2 TSE Index/March 2004/Buy 8,538
------------
Total Net Unrealized Appreciation on Futures Contracts $92,664
============
7. Concentration of 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.
8. Tax Components of Capital and Distributions to Shareholders--The tax
character of distributions declared for the years ended December 31, 2003
and 2002 were as follows:
Distributions Declared in 2003 Distributions Declared in 2002
-------------------------------------- ------------------------------
Ordinary Long-Term Ordinary
Fund Income Capital Gain Total Income Total
- ---- ---------- ------------ ---------- ---------- ----------
Blue Chip $1,058,840 $ -- $1,058,840 $ 912,805 $ 912,805
Cash Management 65,126 -- 65,126 153,115 153,115
Discovery -- -- -- -- --
Focused Equity 9,919 -- 9,919 23,149 23,149
Government 1,075,096 -- 1,075,096 845,376 845,376
Growth 880,061 -- 880,061 483,769 483,769
High Yield 4,616,701 -- 4,616,701 5,480,290 5,480,290
International Securities 750,556 -- 750,556 515,963 515,963
Investment Grade 1,905,350 -- 1,905,350 1,570,624 1,570,624
Target Maturity 2007 1,630,591 305,141 1,935,732 1,630,651 1,630,651
Target Maturity 2010 748,880 -- 748,880 662,873 662,873
Target Maturity 2015 288,490 -- 288,490 185,253 185,253
Value 1,475,704 -- 1,475,704 1,389,579 1,389,579
Notes to Financial Statements (continued)
December 31, 2003
As of December 31, 2003, the components of distributable earnings (deficit)
on a tax basis were as follows:
Total
Undistributed Accumulated Capital Unrealized Distributable
Ordinary Capital Loss Appreciation Earnings
Fund Income Gains Carryover (Depreciation) (Deficit)
- ---- ------------- ----------- ------------ ------------ ------------
Blue Chip $1,124,213 $ -- $(53,273,643) $39,074,786 $(13,074,644)
Discovery -- -- (43,649,272) 30,325,702 (13,323,570)
Focused Equity 54,965 -- (2,730,648) 945,763 (1,729,920)
Government 1,273,357 -- (577,334)* 410,766 1,106,789
Growth 1,133,232 -- (24,819,636) 51,014,747 27,328,343
High Yield 4,774,945 -- (14,810,227)* (2,201,774) (12,237,056)
International Securities 1,021,627 -- (17,385,481) 16,828,871 465,017
Investment Grade 2,137,361 -- (1,430,798)* 2,269,386 2,975,949
Target Maturity 2007 1,516,603 726,731 -- 3,496,568 5,739,902
Target Maturity 2010 786,788 62,375 -- 2,409,610 3,258,773
Target Maturity 2015 462,634 -- (36,490) 977,435 1,403,579
Value 1,064,786 -- (21,430,341) 10,733,208 (9,632,347)
* Includes Post October losses of $30,434 for Government Fund, $31,928
for High Yield Fund and $59,743 for Investment Grade Fund.
Differences between book distributable earnings and tax distributable
earnings consist primarily of Post October losses, wash sales and
amortization of bond premiums and discounts.
For the year ended December 31, 2003, the following reclassifications were
made to reflect permanent differences between book and tax reporting:
Undistributed Accumulated
Capital Net Investment Net Realized
Fund Paid In Income Gains
- ---- --------- -------------- ------------
Discovery $(348,008) $348,008 $ --
Government (228,020) -- 228,020
This page intentionally left blank.
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
Income from Investment Operations from
------------------------------------- ----------------------
Net Asset
Value Net Net Realized
--------- 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
- --------------
1999 $26.25 $ .12 $6.38 $6.50 $ .18 $ .43 $ .61
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
- ----------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
- --------------------
1999 $ 1.00 $.046 $ -- $.046 $.046 $ -- $.046
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
- ----------------------------------------------------------------------------------------------------
DISCOVERY FUND
- --------------
1999 $26.74 $(.06) $7.47 $7.41 $ .09 $ .10 $ .19
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 -- -- --
- ----------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
11/8/99* to
12/31/99 $10.00 $(.01) $ .26 $ .25 $ -- $ -- $ --
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
- ----------------------------------------------------------------------------------------------------
GOVERNMENT FUND
- ---------------
1999 $10.41 $ .61 $(.51) $ .10 $ .59 $ -- $ .59
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
- ----------------------------------------------------------------------------------------------------
GROWTH FUND
- -----------
1999 $35.78 $ .05 $8.97 $9.02 $ .10 $1.64 $1.74
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
- ----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
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 Investment Net Portfolio
------- Total Net Assets Income Investment Turnover
End of Return++ End of Period Expenses (Loss) Expenses Income Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
- -----------------------------------------------------------------------------------------------------------
BLUE CHIP FUND
- --------------
1999 $32.14 25.32 $275 .81 .45 N/A N/A 91
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
- -----------------------------------------------------------------------------------------------------------
CASH MANAGEMENT FUND
- --------------------
1999 $ 1.00 4.67 $10 .70 4.61 .91 4.40 N/A
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
- -----------------------------------------------------------------------------------------------------------
DISCOVERY FUND
- --------------
1999 $33.96 27.97 $148 .83 (.24) N/A N/A 109
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
- -----------------------------------------------------------------------------------------------------------
FOCUSED EQUITY FUND
- -------------------
11/8/99* to
12/31/99 $10.25 2.50 $ 2 1.59(a) (1.39)(a) N/A N/A 12
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
- -----------------------------------------------------------------------------------------------------------
GOVERNMENT FUND
- ---------------
1999 $ 9.92 1.05 $ 11 .76 6.07 .91 5.92 69
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
- -----------------------------------------------------------------------------------------------------------
GROWTH FUND
- -----------
1999 $43.06 26.47 $262 .81 .14 N/A N/A 38
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
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
------------------------------------- ----------------------
Net Asset
Value Net Realized
--------- Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income Investments Operations Income Gain Distributions
- ----------------------------------------------------------------------------------------------------
HIGH YIELD FUND
- ---------------
1999 $11.70 $1.09 $ (.56) $ .53 $1.02 $.02 $1.04
2000 11.19 1.08 (1.72) (.64) 1.11 -- 1.11
2001(b) 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
- ----------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
- -----------------------------
1999 $18.88 $ .15 $ 5.74 $ 5.89 $ .12 $ .03 $ .15
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
- ----------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
- ---------------------
1999 $11.97 $ .69 $(.98) $ (.29) $ .70 $.01 $ .71
2000 10.97 .76 .22 .98 .71 -- .71
2001(b) 11.24 .64 .21 .85 .73 -- .73
2002 11.36 .63 .22 .85 .64 -- .64
2003 11.57 .61 .34 .95 .65 -- .65
- ----------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
- -------------------------
1999 $13.83 $ .66 $(1.93) $(1.27) $ .62 $ -- $ .62
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
- ----------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
- -------------------------
1999 $13.97 $ .65 $(2.26) $(1.61) $ .51 $ -- $ .51
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
- ----------------------------------------------------------------------------------------------------
TARGET MATURITY 2015 FUND
- -------------------------
11/8/99* to
12/31/99 $10.00 $ .04 $(.53) $(.49) $ -- $ -- $ --
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
- ----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets+ Waived or Assumed
-------------------- ----------------------
Net Asset
Value Net Net Portfolio
------- Total Net Assets Investment Investment Turnover
End of Return++ End of Period Expenses Income Expenses Income Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
- -----------------------------------------------------------------------------------------------------------
HIGH YIELD FUND
- ---------------
1999 $11.19 4.95 $ 68 .82 9.83 N/A N/A 33
2000 9.44 (6.36) 55 .82 9.97 N/A N/A 30
2001(b) 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
- -----------------------------------------------------------------------------------------------------------
INTERNATIONAL SECURITIES FUND
- -----------------------------
1999 $24.62 31.46 $127 .98 .76 N/A N/A 118
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
- -----------------------------------------------------------------------------------------------------------
INVESTMENT GRADE FUND
- ---------------------
1999 $10.97 (2.53) $ 21 .68 6.12 .83 5.97 27
2000 11.24 9.51 21 .68 6.87 .83 6.72 25
2001(b) 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
- -----------------------------------------------------------------------------------------------------------
TARGET MATURITY 2007 FUND
- -------------------------
1999 $11.94 (9.39) $ 25 .69 5.47 .84 5.32 2
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
- -----------------------------------------------------------------------------------------------------------
TARGET MATURITY 2010 FUND
- -------------------------
1999 $11.85 (11.73) $ 9 .71 5.48 .86 5.33 9
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
- -----------------------------------------------------------------------------------------------------------
TARGET MATURITY 2015 FUND
- -------------------------
11/8/99* to
12/31/99 $ 9.51 (4.90) $ 1 1.38(a) 4.24(a) 1.64(a) 3.98(a) 0
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
- -----------------------------------------------------------------------------------------------------------
Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUND
- -----------------------------------------------------------------------------------------------------
P E R S H A R E D A T A
----------------------------------------------------------------------------------------
Less Distributions
Income from Investment Operations from
------------------------------------- ----------------------
Net Asset
Value Net Realized
--------- Net and Unrealized Total from Net Net
Beginning Investment Gain (Loss) on Investment Investment Realized Total
of Period Income Investments Operations Income Gain Distributions
- ----------------------------------------------------------------------------------------------------
VALUE FUND**
- ----------
1999 $15.83 $ .31 $ 2.25 $ 2.56 $ .33 $ .51 $ .84
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
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
R A T I O S / S U P P L E M E N T A L D A T A
- ------------------------ --------------------------------------------------------------------------------
Ratio to Average Net
Ratio to Average Net Assets Before Expenses
Assets+ Waived or Assumed
-------------------- ----------------------
Net Asset
Value Net Net Portfolio
------- Total Net Assets Investment Investment Turnover
End of Return++ End of Period Expenses Income Expenses Income Rate
Period (%) (in millions) (%) (%) (%) (%) (%)
- -----------------------------------------------------------------------------------------------------------
VALUE FUND**
- ----------
1999 $17.55 17.41 $ 70 .65 2.12 .80 1.97 53
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
- -----------------------------------------------------------------------------------------------------------
(a) Annualized
(b) 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 total net assets of the Funds.
* Commencement of operations
** Prior to December 31, 2002, known as Utilities Income Fund
+ Net of expenses waived or assumed by the investment adviser (Note 4)
++ The effect of fees and charges incurred at the separate account level
are not reflected in these performance figures
See notes to financial statements
Independent Auditors' Report
To the Shareholders and Trustees of
First Investors Life Series Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolios of investments, of the thirteen Funds comprising
First Investors Life Series Fund as of December 31, 2003, the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, 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 auditing standards generally
accepted in the United States of America. 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 December 31,
2003, 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 December 31, 2003, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the
period then ended, and their financial highlights for the periods
presented, in conformity with accounting principles generally accepted in
the United States of America.
Tait, Weller & Baker
Philadelphia, Pennsylvania
February 2, 2004
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FIRST INVESTORS LIFE SERIES FUND
Trustees and Officers*
Position
Held with Principal Number of Other
Fund and Occupation Portfolios in Trusteeships
Name, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
DISINTERESTED TRUSTEES
Robert M. Grohol 1/16/1932 Trustee None/Retired 50 None
c/o First Investors since 6/30/00
Management Company, Inc.
95 Wall Street
New York, NY 10005
Rex R. Reed 3/19/1922 Trustee None/Retired 50 None
c/o First Investors since 3/31/84
Management Company, Inc.
95 Wall Street
New York, NY 10005
Herbert Rubinstein 6/14/1921 Trustee None/Retired 50 None
c/o First Investors since 9/20/79
Management Company, Inc.
95 Wall Street
New York, NY 10005
James M. Srygley 10/17/1932 Trustee Owner 50 None
c/o First Investors since 1/19/95 Hampton
Management Company, Inc. Properties
95 Wall Street
New York, NY 10005
Robert F. Wentworth 7/5/1929 Trustee None/Retired 50 None
c/o First Investors since 10/15/92
Management Company, Inc.
95 Wall Street
New York, NY 10005
Position(s)
Held with Principal Number of Other
Fund and Occupations Portfolios in Trusteeships
Name, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED TRUSTEES**
Glenn O. Head 8/16/1925 Trustee Chairman of 50 None
c/o First Investors since 1968 First Investors
Management Company, Inc. Corporation,
95 Wall Street Chairman of
New York, NY 10005 First Investors
Consolidated
Corporation,
Chairman of
First Investors
Management
Company, Inc.,
Chairman of
Administrative Data
Management Corp.,
and officer of
other affiliated
companies***
Kathryn S. Head 12/31/1955 Trustee Vice President 50 None
c/o First Investors since 3/17/94 of First Investors
Management Company, Inc. Corporation,
581 Main Street President President of
Woodbridge, NJ 07095 since 11/15/01 First Investors
Consolidated
Corporation,
President of
First Investors
Management
Company, Inc.,
President of
Administrative Data
Management Corp.,
Chairman of
First Investors
Federal Savings
Bank and
officer of
other affiliated
companies***
FIRST INVESTORS LIFE SERIES FUND
Trustees and Officers* (continued)
Position
Held with Principal Number of Other
Fund and Occupation(s) Portfolios in Trusteeships
Name, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
INTERESTED TRUSTEES** (continued)
Larry R. Lavoie 9/12/1947 Trustee General Counsel 50 None
c/o First Investors since 9/17/98 First Investors
Management Company, Inc. Corporation
95 Wall Street and other
New York, NY 10005 affiliated
companies***
John T. Sullivan 1/18/1932 Trustee Of Counsel 50 None
c/o First Investors since 9/20/79 Hawkins,
Management Company, Inc. Delafield &
95 Wall Street Wood; Director
New York, NY 10005 and Chairman
of Executive
Committee of
First Investors
Corporation
* Each Trustee serves for an indefinite term with the Fund, until
his/her successor is elected.
** Mr. Head and Ms. Head are interested trustees because (a) they are
indirect owners of more than 5% of the voting stock of the adviser and
principal underwriter of the Funds, and (b) they are officers,
directors and employees of the adviser and principal underwriter of the
Funds. Ms. Head is an officer of the Funds and the daughter of Mr.
Head. Mr. Lavoie is an interested trustee of the Fund because he
indirectly owns securities issued by and is an officer of the adviser
and principal underwriter of the Funds. Mr. Sullivan is an interested
trustee because he is a director and Chairman of the Executive
Committee of First Investors Corporation and he indirectly owns
securities issued by the adviser and principal underwriter of the
Funds.
*** Other affiliated companies consist of: First Investors Realty
Company, Inc., First Investors Life Insurance Company, First Investors
Leverage Corporation, Route 33 Realty Corporation, First Investors Credit
Funding Corporation, N.A.K. Realty Corporation, Real Property Development
Corporation, School Financial Management Services, Inc., First Investors
Federal Savings Bank, First Investors Credit Corporation and First
Investors Resources, Inc.
Position
Held with Principal Number of Other
Fund and Occupation(s) Portfolios in Trusteeships
Name, Date of Birth Length of During Past Fund Complex Directorships
and Address Service 5 Years Overseen Held
- ----------- ------- ------- -------- ----
OFFICERS WHO ARE NOT TRUSTEES
Joseph I. Benedek 8/2/1957 Treasurer Treasurer 50 None
c/o First Investors since 1988 and Principal
Management Company, Inc. Accounting Officer
581 Main Street
Woodbridge, NJ 07095
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
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.
581 Main Street
Woodbridge, NJ 07095-1198
Legal Counsel
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, DC 20036
Auditors
Tait, Weller & Baker
1818 Market Street
Philadelphia, PA 19103
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 U.S. Government.
It is the Fund's practice to mail only one copy of its annual and
semi-annual reports to any address at which more than one shareholder with
the same last name has indicated that mail is to be delivered. Additional
copies of the reports will be mailed if requested by any shareholder in
writing or by calling 800-423-4026. The Fund will ensure that separate
reports are sent to any shareholder who subsequently changes his or her
mailing address.
This report is authorized for distribution only to existing shareholders,
and, if given to prospective shareholders, must be accompanied or preceded
by the Fund's prospectus.
NOTES
NOTES
NOTES
NOTES
Item 2. Code of Ethics
The Registrant's Board of Directors/Trustees ("Board") has
adopted a Code of Ethics that applies to the First Investors Funds'
("Funds") principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the Funds or a third party. The Code of Ethics is attached to this
report as Exhibit A.
During the period of the report, there have been no amendments to the
Code of Ethics or waivers, implicit or otherwise, from its provisions.
Item 3. Audit Committee Financial Expert
The independent director currently serving as the audit committee
financial expert is Robert F. Wentworth.
The Registrant's Board has unanimously determined that Mr. Wentworth
satisfied the definition of an audit committee financial expert as
set forth in the instructions to Form N-CSR under the Investment
Company Act of 1940. Specifically, the Board determined that
Mr. Wentworth has all of the following: (i) an understanding of
generally accepted accounting principles and financial
statements; (ii) the ability to assess the general application of such
principles in connection with the accounting for estimates, accruals,
and reserves; (iii) experience preparing, auditing, analyzing or
evaluating financial statements that present the breadth and level of
complexity of accounting issues that are generally comparable to the
breadth and complexity of issues that can reasonably be expected to be
raised by the Funds' financial statements, or experience actively
supervising one or more persons engaged in such activities; (iv) an
understanding of internal controls and procedures for financial reports;
and (v) an understanding of audit committee functions. Furthermore, he
had acquired these attributes through education and many years of
relevant experience in various financial positions with American
Telephone and Telegraph Company, including the positions of
Director - Accounting, Director - Finance, Director - Financial
Reporting and Analysis, Controller, and Director of Business Planning.
Mr. Wentworth also has many years experience serving on the Audit
Committees of First Investors Funds and other organizations. Finally,
Mr. Wentworth is independent as defined in the instructions to the Form.
Item 4. Principal Accountant Fees and Services
Fiscal Year Ended
December 31,
-----------------
2003 2002
---- ----
(a) Audit Fees $127,500 $125,000
(b) Audit-Related Fees $ 0 $ 0
(c) Tax Fees $ 32,500 $ 32,500
Nature of fees: tax returns preparation and tax compliance
(d) All Other Fees $ 0 $ 0
(e)(1) Audit committee's pre-approval policies
The Audit Committee has adopted a charter under which it has the duties,
among other things,
(a) to pre-approve, and to recommend to the full Board, the
selection, retention or termination of the independent auditors to
provide audit, review or attest services to the Funds and, in
connection therewith, evaluate the independence of the auditors and to
obtain the auditors' specific representations as to their independence;
(b) to pre-approve all non-audit services to be provided to the
Funds by the independent auditor;
(c) to pre-approve all non-audit services to be provided by the
Funds' independent auditor to the Funds' investment adviser or to any
entity that controls, is controlled by or is under common control with
the Funds investment adviser and that provides ongoing services to the
Funds, if the engagement relates directly to the operations and
financial reporting of the Funds;
(d) to establish, if deemed necessary or appropriate as an
alternative to Audit Committee pre-approved of services to be provided
by the independent auditor as required by paragraphs (b) and (c) above,
policies and procedures to permit such services to be pre-approved by
other means, such as by action of a designated member and members of
the Audit Committee, subject to subsequent Committee review and
oversight;
(e) to meet with the Funds' independent auditors, including
meetings without management representatives, as necessary (i) to review
the arrangements for, and scope of, the annual audit, any special audits
and any other services to be provided to the Fund's by the auditors;
(ii) to discuss any matters of concern relating to the Fund's financial
statements, including any adjustments to such statements recommended by
the auditors, or other results of said audit(s); and (iii) to review the
form of opinion the auditors propose to render to the Board and
shareholders;
(f) to receive and consider (i) information and comments from the
auditors with respect to the Funds' accounting and financial reporting
policies, procedures and internal control over financial reporting
(including the Funds' critical accounting policies and practices) and
to consider management's responses to any such comments; (ii) reports
from the auditors regarding any material written communications between
the auditors and management; and (iii) reports from the auditors
regarding all non-audit services provided to any entity in the Funds'
investment company complex that were not pre-approved by the Audit
Committee or pursuant to pre-approved policies and procedures
established by the Audit Committee and associated fees;
(g) to review and approve the fees charged by the auditors for
audit and non-audit services for the Funds; and
(h) to report its activities to the full Board on a regular basis
and to make such recommendations with respect to the above and other
matters as the Audit Committee may deem necessary or appropriate.
(e)(2) None, or 0%, of the services relating to the Audit-Related Fees,
Tax Fees and All Other Fees paid by the Registrant and Related Entities
disclosed above were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee
approval after the start of the engagement with respect to services other
than audit review or attest services, if certain conditions are satisfied).
(f) Not Applicable
(g) Aggregate non-audit fees billed by the Registrant's accountant
for services rendered to the Registrant and the Registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
Registrant for the two fiscal years ended December 31, 2003 and 2002
were $35,000 and $32,000, respectively.
(h) Not Applicable
Item 5. Audit Committee of Listed Registrants
Audit Committee Members -
Robert M. Grohol
Rex R. Reed
Herbert Rubinstein
James M. Srygley
Robert F. Wentworth
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies & Procedures for Closed-End
Management Investment Companies
Not applicable to the Registrant
Item 8. [Reserved]
Item 9. Controls and Procedures
(a) The Registrants' Principal Executive Officer and Principal
Financial Officer have concluded that the Registrants' 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 Registrants' 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 10. Exhibits
(a) Code of Ethics - Filed herewith
(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: March 1, 2004
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: March 1, 2004