EX-99.906 CERT 3 a_lifeseriesfund.htm CERTIFICATIONS SECTION 906 a_lifeseriesfund.htm
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 FUNDS 
(Exact name of registrant as specified in charter) 
 
110 Wall Street 
New York, NY 10005 
(Address of principal executive offices) (Zip code) 
 
Joseph I. Benedek 
First Investors Management Company, Inc. 
Raritan Plaza I 
Edison, NJ 08837-3620 
1-732-855-2712 
(Name and address of agent for service) 
 
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 
1-212-858-8000 
 
DATE OF FISCAL YEAR END: DECEMBER 31, 2008 
 
DATE OF REPORTING PERIOD: JUNE 30, 2008 

Item 1.  Reports to Stockholders 
 
                   The Semi-Annual Report to Stockholders follows 


FOREWORD

This report is for the information of the shareholders of the Trust. It is the Trust’s practice to mail only one copy of its annual and semi-annual reports to all family members who reside in the same household. Additional copies of the reports will be mailed if requested by any shareholder in writing or by calling 800-423-4026. The Trust will ensure that separate reports are sent to any shareholder who subsequently changes his or her mailing address.

The views expressed in the Market Overview letter reflect those views of the Director of Equities and Director of Fixed Income of First Investors Management Company, Inc. through the end of the period covered. Any such views are subject to change at any time based upon market or other conditions and we disclaim any responsibility to update such views. These views may not be relied on as investment advice.

You may obtain a free prospectus for any of the Funds by contacting your representative, calling 1-800-423-4026, writing to us at the following address: First Investors Corporation, 110 Wall Street, New York, NY 10005, or by visiting our website at www.firstinvestors.com. You should consider the investment objectives, risks, charges and expenses of a Fund carefully before investing. The prospectus contains this and other information about the Fund, and should be read carefully before investing.

An investment in a Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the Cash Management Fund seeks to preserve a net asset value at $1.00 per share, it is possible to lose money by investing in it, just as it is possible to lose money by investing in any of the other Funds. Past performance is to guarantee of future results.

A Statement of Additional Information (“SAI”) for any of the Funds may also be obtained, without charge, upon request by calling 1-800-423-4026, writing to us at our address or by visiting our website listed above. The SAI contains more detailed information about the Fund, including information about its Trustees.

Equity & Bond Markets Overview
FIRST INVESTORS LIFE SERIES FUNDS

Dear Investor:

The Economy

The financial markets continued to be extremely volatile during the past six months. The markets had to contend with ongoing concerns about the health of the financial system, a weak economy, and fear of inflation.

Subprime mortgage exposure at major financial institutions severely reduced liquidity in the markets, particularly in the first quarter. Markets had big swings, trading on supply and demand, instead of fundamentals. At times, certain markets stopped functioning, while others operated under extreme stress. Events reached crisis levels in March when the Federal Reserve (the “Fed”) bailed out Bear Stearns, a major investment bank. That action, combined with substantial interest rate reductions and additional extraordinary measures by the Fed, restored some stability to the markets. Nonetheless, continued write-downs by financial institutions during the second quarter dashed investors’ hopes for a quick return to normalcy and made clear that repair of the financial system would be a prolonged process.

Economic growth during the review period, although positive, was very weak. Facing falling home values, rising food and energy costs, and tighter financial conditions, consumers reduced spending. The rebate checks from the government’s stimulus program helped prop up second quarter growth, but a rise in the unemployment rate to a cycle high of 5.5% indicated continued weakness in the economy. The lone bright spot was the export sector, due to relatively strong overseas growth. But strength in foreign economies was accompanied by surging commodity costs, particularly oil, which caused the Consumer Price Index to accelerate to an annual rate of 5.0% .

The Fed was very active during the first quarter in response to financial system stress and a slowing economy, lowering the benchmark federal funds rate from 4.25% to 2.25% . In the second quarter the Fed lowered the federal funds rate an additional 0.25%, but then at its June meeting decided to keep rates unchanged — despite continued weak economic growth — because of increased worries about inflation. The Fed’s signal that it would be less likely to lower interest rates, as well as investors’ heightened inflation concerns, added additional uncertainty and stress to the financial markets.

The Equity Market

Amid the very challenging economic climate, the stock market struggled during the first half of 2008. After trending downward for much of the first quarter, stocks rebounded sharply — and briefly —early in the second quarter, before reversing course and moving lower through the end of the reporting period. Stocks were dragged down by worries over weakening economic growth, rising rates of inflation and unemployment and ongoing difficulties in the housing market and financial sector. The problems were broad-based, as most indexes for market-cap sectors and industry sectors were down for the period. Among market-cap sectors, mid-cap stocks posted the least negative returns declining 3.9%, followed by small caps and large caps, which were down 9.4% and 11.9%, respectively.

The Bond Market

Bond market returns in the aggregate were slightly positive, but returns varied substantially by sector with higher quality investments generally providing the best performance. The U.S. Treasury sector led the bond market with returns of 2.2% as it benefited from a decline in

1 

Equity & Bond Markets Overview (continued)
FIRST INVESTORS LIFE SERIES FUNDS

benchmark interest rates. High quality mortgage-backed bonds had relatively good performance, returning 1.9%. Investment grade corporate bonds returned –0.8% as the slowing economy and concern about financial issuers hurt performance. Reflecting the weak economic conditions, high yield corporate bonds lost 1.3% during the review period, although default rates remained low. The usually staid municipal bond market also was very volatile. Multiple downgrades of most of the municipal bond insurance companies, the failure of the auction rate preferred market, and a decrease in market liquidity negatively affected the market, which returned –0.1%.

Thank you for placing your trust in First Investors. As always, we appreciate the opportunity to serve your investment needs.

Sincerely,


Edwin D. Miska
Director of Equities
First Investors Management Company, Inc.

  

Clark D. Wagner
Director of Fixed Income
First Investors Management Company, Inc.

August 1, 2008

The Funds are only available through the purchase of variable life insurance policies and variable annuity contracts issued by First Investors Life Insurance Company. The reports do not reflect the additional expenses and charges that are applicable to variable life insurance policies and variable annuity contracts.

This Market Overview is not part of the Funds’ financial report and is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors in the Funds, unless preceded or accompanied by an effective prospectus. The Market Overview reflects conditions through the end of the period as stated on the cover. Market conditions are subject to change. This Market Overview may not be relied upon as investment advice or an indication of current or future trading intent on behalf of any Fund.

There are a variety of risks associated with investing in variable life and annuity subaccounts. For stock subaccounts, the risks include market risk (the risk that the entire stock market will decline because of an event such as a deterioration in the economy or a rise in interest rates), as well as special risks associated with investing in certain types of stock subaccounts, such as small-cap, global and international funds. For bond subaccounts, the risks include interest rate risk and credit risk. Interest rate risk is the risk that bonds will decrease in value as interest rates rise. As a general matter, longer-term bonds fluctuate more than shorter-term bonds in reaction to changes in interest rates. Credit risk is the risk that bonds will decline in value as the result of a decline in the credit rating of the bonds or the economy as a whole, or that the issuer will be unable to pay interest and/or principal when due. You should consult your prospectus for a precise explanation of the risks associated with your subaccounts.

2 

Understanding Your Fund’s Expenses
FIRST INVESTORS LIFE SERIES FUNDS

As a mutual fund shareholder, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory fees and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 in each Fund at the beginning of the period, January 1, 2008, and held for the entire six-month period ended June 30, 2008. The calculations assume that no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

Actual Expense Example:

These amounts help you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid during the period.

To estimate the expenses you paid on your account during this period simply divide your ending account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period”.

Hypothetical Expense Example:

These amounts provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expense example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

3 

Fund Expenses
BLUE CHIP FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $878.12  $3.88 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.73  $4.17 

* Expenses are equal to the annualized expense ratio of .83%, multiplied by the average account 
  value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
TOP TEN SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

4 

Portfolio of Investments
BLUE CHIP FUND
June 30, 2008

           
 
 
  
Shares       Security    Value 
 
   COMMON STOCKS—99.5%     
   Consumer Discretionary—9.1%     
13,300   Best Buy Company, Inc.    $526,680 
14,900   Carnival Corporation    491,104 
29,700   CBS Corporation – Class “B”    578,853 
20,200   Clear Channel Communications, Inc.    711,040 
16,971   Comcast Corporation – Class “A”    321,940 
27,150   Comcast Corporation – Special Class “A”    509,334 
20,800   H&R Block, Inc.    445,120 
49,900   Home Depot, Inc.    1,168,658 
11,400  *  Kohl’s Corporation    456,456 
40,900   Lowe’s Companies, Inc.    848,675 
20,200   McDonald’s Corporation    1,135,644 
53,600   News Corporation – Class “A”    806,144 
9,500   NIKE, Inc. – Class “B”    566,295 
20,600   Staples, Inc.    489,250 
14,800   Target Corporation    688,052 
89,700   Time Warner, Inc.    1,327,560 
22,400  *  Viacom, Inc. – Class “B”    684,096 
45,900       Walt Disney Company    1,432,080 
 
          13,186,981 
 
   Consumer Staples—14.9%     
26,100   Altria Group, Inc.    536,616 
25,200   Anheuser-Busch Companies, Inc.    1,565,424 
28,400   Avon Products, Inc.    1,022,968 
46,100   Coca-Cola Company    2,396,278 
11,200   Colgate-Palmolive Company    773,920 
7,900   Costco Wholesale Corporation    554,106 
29,400   CVS Caremark Corporation    1,163,358 
12,100   General Mills, Inc.    735,317 
10,900   Hershey Company    357,302 
19,900   Kimberly-Clark Corporation    1,189,622 
39,861   Kraft Foods, Inc. – Class “A”    1,134,045 
35,000   PepsiCo, Inc.    2,225,650 
30,300   Philip Morris International, Inc.    1,496,518 
43,335   Procter & Gamble Company    2,635,201 
34,800   Walgreen Company    1,131,348 
46,000       Wal-Mart Stores, Inc.    2,585,200 
 
          21,502,873 

5 

Portfolio of Investments (continued)
BLUE CHIP FUND
June 30, 2008

           
  
 
 
Shares       Security    Value 
 
   Energy—14.4%     
12,700   BP PLC (ADR)    $ 883,539 
39,200   Chevron Corporation    3,885,896 
25,771   ConocoPhillips    2,432,525 
66,900   ExxonMobil Corporation    5,895,897 
27,400   Halliburton Company    1,454,118 
5,500   Hess Corporation    694,045 
8,500   Marathon Oil Corporation    440,895 
24,100   Schlumberger, Ltd.    2,589,063 
29,550   Spectra Energy Corporation    849,267 
8,724   Transocean, Inc.    1,329,450 
10,800       Valero Energy Corporation    444,744 
 
          20,899,439 
 
   Financials—11.3%     
12,200   ACE, Ltd.    672,098 
15,600   Allstate Corporation    711,204 
32,500   American Express Company    1,224,275 
31,900   American International Group, Inc.    844,074 
43,214   Bank of America Corporation    1,031,518 
47,305   Bank of New York Mellon Corporation    1,789,548 
250  *  Berkshire Hathaway, Inc. – Class “B”    1,003,000 
14,500   Capital One Financial Corporation    551,145 
15,500   Chubb Corporation    759,655 
51,400   Citigroup, Inc.    861,464 
56,032   JPMorgan Chase & Company    1,922,458 
17,700   Marsh & McLennan Companies, Inc.    469,935 
17,400   Merrill Lynch & Company, Inc.    551,754 
21,000   Morgan Stanley    757,470 
6,400   PNC Financial Services Group, Inc.    365,440 
7,500   SunTrust Banks, Inc.    271,650 
15,700   Travelers Companies, Inc.    681,380 
20,500   U.S. Bancorp    571,745 
23,600   Wachovia Corporation    366,508 
37,600       Wells Fargo & Company    893,000 
 
          16,299,321 
 
   Health Care—13.6%     
29,900   Abbott Laboratories    1,583,803 
17,800   Aetna, Inc.    721,434 
24,900  *  Amgen, Inc.    1,174,284 
8,700       Baxter International, Inc.    556,278 

6 

 
 
 
 
Shares       Security    Value 
 
   Health Care (continued)     
46,200   Bristol-Myers Squibb Company    $948,486 
15,025   Covidien, Ltd.    719,547 
8,300  *  Genentech, Inc.    629,970 
59,200   Johnson & Johnson    3,808,928 
13,500   McKesson Corporation    754,785 
29,300   Medtronic, Inc.    1,516,275 
29,200   Merck & Company, Inc.    1,100,548 
23,700   Novartis AG (ADR)    1,304,448 
125,440   Pfizer, Inc.    2,191,437 
11,300  *  St. Jude Medical, Inc.    461,944 
13,200   Teva Pharmaceutical Industries, Ltd. (ADR)    604,560 
19,400   UnitedHealth Group, Inc.    509,250 
21,900       Wyeth    1,050,324 
 
          19,636,301 
 
   Industrials—10.8%     
18,500   3M Company    1,287,415 
6,800   Boeing Company    446,896 
4,900   Caterpillar, Inc.    361,718 
12,000   Dover Corporation    580,440 
5,700   Eaton Corporation    484,329 
22,700   Emerson Electric Company    1,122,515 
145,500   General Electric Company    3,883,395 
16,500   Honeywell International, Inc.    829,620 
14,800   Illinois Tool Works, Inc.    703,148 
12,200   ITT Corporation    772,626 
10,900   Lockheed Martin Corporation    1,075,394 
10,000   Northrop Grumman Corporation    669,000 
17,525   Tyco International, Ltd.    701,701 
11,200   United Parcel Service, Inc. – Class “B”    688,464 
33,700       United Technologies Corporation     2,079,290 
 
           15,685,951 
 
   Information Technology—18.3%     
11,600   Accenture, Ltd. – Class “A”    472,352 
11,500   Analog Devices, Inc.    365,355 
5,600  *  Apple, Inc.    937,664 
23,400   Applied Materials, Inc.    446,706 
10,200   Automatic Data Processing, Inc.    427,380 
84,800  *  Cisco Systems, Inc.    1,972,448 
29,000       Corning, Inc.     668,450 

7 

Portfolio of Investments (continued)
BLUE CHIP FUND
June 30, 2008

           
 
 
Shares       Security    Value 
 
   Information Technology (continued)     
60,800  *  Dell, Inc.    $1,330,304 
13,500  *  eBay, Inc.    368,955 
74,300  *  EMC Corporation    1,091,467 
43,000   Hewlett-Packard Company    1,901,030 
80,600   Intel Corporation    1,731,288 
22,900   International Business Machines Corporation    2,714,337 
180,600   Microsoft Corporation    4,968,306 
44,600   Nokia Corporation – Class “A” (ADR)    1,092,700 
59,700  *  Oracle Corporation    1,253,700 
19,200   QUALCOMM, Inc.    851,904 
31,900  *  Symantec Corporation    617,265 
35,300   Texas Instruments, Inc.    994,048 
16,025   Tyco Electronics, Ltd.    574,016 
33,800   Western Union Company    835,536 
28,900   Xerox Corporation    391,884 
21,900    *  Yahoo!, Inc.    452,454 
 
          26,459,549 
 
   Materials—3.1%     
19,400   Alcoa, Inc.    691,028 
32,100   Dow Chemical Company    1,120,611 
24,800   DuPont (E.I.) de Nemours & Company    1,063,672 
17,800   International Paper Company    414,740 
6,700   Newmont Mining Corporation    349,472 
10,000   PPG Industries, Inc.    573,700 
6,400       Weyerhaeuser Company    327,296 
 
          4,540,519 
 
   Telecommunication Services—2.7%     
61,000   AT&T, Inc.    2,055,090 
51,000       Verizon Communications, Inc.    1,805,400 
 
          3,860,490 
 
   Utilities—1.3%     
9,100   American Electric Power Company, Inc.    366,093 
58,300   Duke Energy Corporation    1,013,254 
7,600       FPL Group, Inc.    498,408 
 
            1,877,755 
 
Total Value of Common Stocks (cost $107,415,267)    143,949,179 

8 

 
 
 
     Principal       
       Amount      Security             Value 
 
  SHORT-TERM INVESTMENTS—.6%       
  Money Market Fund     
             $825 M  First Investors Cash Reserve Fund, 2.24%     
         (cost $825,000)**            $ 825,000 
 
Total Value of Investments (cost $108,240,267)  100.1 %  144,774,179 
Excess of Liabilities Over Other Assets  (.1)         (120,428) 
 
Net Assets         100.0 %      $144,653,751 

*  Non-income producing 
**  Affiliated unregistered money market fund available only to First Investors funds and certain 
 accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
 at June 30, 2008 (see Note 3). 

Summary of Abbreviations: 
ADR American Depositary Receipts 

See notes to financial statements  9 

Fund Expenses
CASH MANAGEMENT FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $1,012.23  $3.50 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,021.38  $3.52 

*  Expenses are equal to the annualized expense ratio of .70%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses paid 
 during the period are net of expenses waived. 

Portfolio Composition
BY SECTOR


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

10 

Portfolio of Investments
CASH MANAGEMENT FUND
June 30, 2008

 
 
 
 
Principal    Interest   
Amount      Security       Rate   *  Value 
 
  U.S. GOVERNMENT AGENCY     
  OBLIGATIONS—45.7%     
$ 500  M Fannie Mae, 8/22/08       2.25  % $498,374 
250  M Federal Farm Credit Bank, 8/25/08       2.75  250,611 
  Federal Home Loan Bank:     
1,300  M    7/2/08       2.09  1,299,924 
500  M    7/16/08       2.20  499,541 
250  M    7/18/08       2.65  250,215 
400  M    7/23/08       2.10  399,485 
400  M    3/17/09       3.00  399,374 
400  M    4/7/09       2.48  400,000 
230  M    6/26/09       3.25  230,000 
300  M    6/30/09       3.05  300,000 
  Freddie Mac:     
600  M    8/11/08       2.19  598,500 
225  M    10/17/08       2.68  225,605 
500  M    1/14/09       3.54  500,190 
200  M      7/3/09       3.20    200,000 
 
Total Value of U.S. Government Agency Obligations (cost $6,051,819)       6,051,819 
 
  CORPORATE NOTES—36.5%     
250  M Abbott Laboratories, 7/21/08 (a)       1.98  249,724 
500  M Brown-Forman Corp., 9/18/08 (a)       2.39  497,377 
600  M Coca Cola Co., 8/4/08 (a)       2.09  598,813 
600  M Dupont (E.I.) de Nemours & Co., 8/28/08 (a)       2.17  597,902 
600  M Hershey Co., 8/18/08 (a)       2.20  598,240 
600  M Kimberly Clark Worldwide, 7/7/08 (a)       2.07  599,793 
500  M Madison Gas & Electric Co., 7/15/08       2.20  499,572 
500  M Pfizer, Inc., 7/25/08 (a)       2.15  499,283 
250  M Prudential Funding Corp., 7/22/08       2.20  249,678 
450  M   Toyota Motor Credit Corp., 8/6/08       2.60    448,825 
 
Total Value of Corporate Notes (cost $4,839,207)      4,839,207 
 
  FLOATING RATE NOTES—7.6%     
100  M Advanced Packaging Corp., 10/1/36     
     (LOC; Fifth Third Bank)       3.00  100,000 
250  M Federal Home Loan Bank, 11/26/08       2.41  249,962 
300  M General Electric Capital Corp., 4/30/09       3.00  300,180 
100  M Genesys Medsports, LLC, 1/1/27 (LOC; Fifth Third Bank) 3.00  100,000 
250  M   International Business Machines Corp., 9/8/08 (b)       2.48    249,964 
 
Total Value of Floating Rate Notes (cost $1,000,106)      1,000,106 

11 

Portfolio of Investments (continued)
CASH MANAGEMENT FUND
June 30, 2008

 
 
 
 
     Principal      Interest   
       Amount      Security           Rate   *  Value 
 
  BANKERS’ ACCEPTANCES—5.3%       
  Bank of America, NA:       
         $ 387  M    7/10/08         2.48  %  $ 386,759 
               321  M      7/22/08           2.48    320,533 
 
Total Value of Bankers’ Acceptances (cost $707,292)           707,292 
 
  CERTIFICATES OF DEPOSIT—4.5%       
               600  M   Citibank NA, 9/3/08 (cost $601,895)           2.71    601,895 
 
Total Value of Investments (cost $13,200,319)**  99.6  %    13,200,319 
Other Assets, Less Liabilities  .4           50,325 
 
Net Assets         100.0  %          $13,250,644 

*  The interest rates shown are the effective rates at the time of purchase by the Fund. The interest 
 rates shown on floating rate notes are adjusted periodically; the rates shown are the rates in effect 
 at June 30, 2008. 
**  Aggregate cost for federal income tax purposes is the same. 
(a)  Security exempt from registration under Section 4(2) of the Securities Act of 1933 (see Note 5). 
(b)  Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 5). 

Summary of Abbreviations: 
LOC Letters of Credit   

12  See notes to financial statements 

Fund Expenses
DISCOVERY FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $907.21  $3.89 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.78  $4.12 

*  Expenses are equal to the annualized expense ratio of .82%, multiplied by the average account 
   value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
TOP TEN SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

13 

Portfolio of Investments
DISCOVERY FUND
June 30, 2008

 
 
 
 
Shares       Security     Value 
 
   COMMON STOCKS—96.2%     
   Consumer Discretionary—13.6%     
121,000  * AnnTaylor Stores Corporation    $2,899,160 
161,000   Callaway Golf Company    1,904,630 
102,800  *  Goodyear Tire & Rubber Company    1,832,924 
42,800   Hillenbrand, Inc.    915,920 
99,700   Interactive Data Corporation    2,505,461 
113,800   Penske Automotive Group, Inc.    1,677,412 
93,300   PetSmart, Inc.    1,861,335 
74,000   Phillips Van-Heusen Corporation    2,709,880 
157,600   Regal Entertainment Group – Class “A”    2,408,128 
63,400       Tempur-Pedic International, Inc.    495,154 
 
          19,210,004 
 
   Consumer Staples—6.2%     
37,875   Church & Dwight Company, Inc.    2,134,256 
79,300   Flowers Foods, Inc.    2,247,362 
69,200   Hormel Foods Corporation    2,395,012 
47,500       J. M. Smucker Company    1,930,400 
 
          8,707,030 
 
   Energy—7.0%     
66,300  *  Denbury Resources, Inc.    2,419,950 
58,700  *  Plains Exploration & Production Company    4,283,339 
29,600    *  Whiting Petroleum Corporation    3,139,968 
 
          9,843,257 
 
   Financials—13.0%     
8,427  *  Alleghany Corporation    2,798,185 
100,800   American Financial Group, Inc.    2,696,400 
406,200   Anworth Mortgage Asset Corporation (REIT)    2,644,362 
87,400   Arthur J. Gallagher & Company    2,106,340 
69,500   FirstMerit Corporation    1,133,545 
85,100   Harleysville Group, Inc.    2,878,933 
372,800   MFA Mortgage Investments, Inc. (REIT)    2,430,656 
61,500       Wilmington Trust Corporation    1,626,060 
 
          18,314,481 

14 

  
 
 
 
Shares       Security    Value 
 
   Health Care—11.6%     
63,800  * Invitrogen Corporation    $2,504,788 
124,200  *  K-V Pharmaceutical Company – Class “A”    2,400,786 
89,100  *  Lincare Holdings, Inc.    2,530,440 
68,600  *  Magellan Health Services, Inc.    2,540,258 
78,000   PerkinElmer, Inc.    2,172,300 
75,600   STERIS Corporation    2,174,256 
48,800       West Pharmaceutical Services, Inc.    2,112,064 
 
          16,434,892 
 
   Industrials—16.4%     
49,100   Alexander & Baldwin, Inc.    2,236,505 
22,500  *  Alliant Techsystems, Inc.    2,287,800 
26,400   Carlisle Companies, Inc.    765,600 
55,000   CLARCOR, Inc.    1,930,500 
68,300   Curtiss-Wright Corporation    3,055,742 
64,500   Deluxe Corporation    1,149,390 
87,900   Interface, Inc. – Class “A”    1,101,387 
72,054  *  Kansas City Southern, Inc.    3,169,655 
66,200   Pentair, Inc.    2,318,324 
59,000   Robbins & Myers, Inc.    2,942,330 
65,200       Woodward Governor Company    2,325,032 
 
          23,282,265 
 
   Information Technology—16.3%     
83,300  *  Avnet, Inc.    2,272,424 
162,000   AVX Corporation    1,832,220 
50,200  *  Cabot Microelectronics Corporation    1,664,130 
114,200  *  Checkpoint Systems, Inc.    2,384,496 
219,700  *  Compuware Corporation    2,095,938 
149,800  *  Convergys Corporation    2,226,028 
122,100  *  Epicor Software Corporation    843,711 
98,100   Fair Isaac Corporation    2,037,537 
105,400  *  Sybase, Inc.    3,100,868 
69,975  *  Varian Semiconductor Equipment Associates, Inc.    2,436,530 
95,100    *  Verigy, Ltd.    2,159,721 
 
          23,053,603 

15 

Portfolio of Investments (continued)
DISCOVERY FUND
June 30, 2008

 
 
 
 
Shares or       
Principal       
Amount       Security          Value 
 
   Materials—3.6%     
56,800   AptarGroup, Inc.    $ 2,382,760 
31,200   H.B. Fuller Company    700,128 
34,100   Innospec, Inc.     641,762 
38,900    *  RTI International Metals, Inc.          1,385,618 
 
                   5,110,268 
  
   Telecommunication Services—3.4%     
174,400  *  Premiere Global Services, Inc.    2,542,752 
52,775       Telephone & Data Systems, Inc. – Special Shares            2,327,378 
 
                4,870,130 
 
   Utilities—5.1%     
134,100   CMS Energy Corporation    1,998,090 
221,500  *  Dynegy, Inc. – Class “A”    1,893,825 
45,100   Energy East Corporation    1,114,872 
98,000       Portland General Electric Company             2,206,960 
 
                   7,213,747 
 
Total Value of Common Stocks (cost $127,291,258)           136,039,677 
 
   SHORT-TERM INVESTMENTS—3.3%   
   Money Market Fund     
$4,695  M    First Investors Cash Reserve Fund, 2.24% (cost $4,695,000)**         4,695,000 
 
Total Value of Investments (cost $131,986,258)  99.5 %  140,734,677 
Other Assets, Less Liabilities  .5        670,810 
 
Net Assets        100.0 %       $141,405,487 

 *  Non-income producing 
**  Affiliated unregistered money market fund available only to First Investors funds and certain 
     accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
     at June 30, 2008 (see Note 3). 

Summary of Abbreviations: 
   REIT Real Estate Investment Trust 

16  See notes to financial statements 

Fund Expenses
GOVERNMENT FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $1,016.37  $4.06 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.83  $4.07 

*  Expenses are equal to the annualized expense ratio of .81%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses paid 
 during the period are net of expenses waived. 

Portfolio Composition
BY SECTOR


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

17 

Portfolio of Investments
GOVERNMENT FUND
June 30, 2008

 
 
 
 
Principal     
Amount      Security    Value 
 
  MORTGAGE-BACKED CERTIFICATES—78.3%   
  Fannie Mae—15.5%   
$ 898  M 5%, 1/1/2035 – 7/1/2035  $ 865,136 
956  M 5.5%, 10/1/2032 – 7/1/2034  947,231 
851  M 6%, 2/1/2036 – 7/1/2037  859,354 
456  M 9%, 6/1/2015 – 11/1/2026  504,229 
288  M   11%, 10/1/2015     329,587 
 
           3,505,537 
 
  Freddie Mac—11.4%   
2,236  M 6%, 6/1/2035 – 11/1/2037  2,266,240 
297  M   6.5%, 7/1/2032 – 12/1/2032    308,772 
 
          2,575,012 
 
  Government National Mortgage Association I   
  Program—51.4%   
1,958  M 5%, 3/15/2033 – 5/15/2034  1,906,087 
4,117  M 5.5%, 2/15/2033 – 6/15/2037  4,109,936 
3,116  M 6%, 11/15/2032 – 3/15/2038  3,175,276 
1,165  M 6.5%, 7/15/2032 – 3/15/2038  1,211,773 
1,005  M 7%, 1/15/2030 – 10/15/2032  1,080,943 
123  M   10%, 5/15/2019 – 8/15/2019     141,890 
 
          11,625,905 
 
Total Value of Mortgage-Backed Certificates (cost $17,777,323)    17,706,454 
 
  U.S. GOVERNMENT AGENCY   
  OBLIGATIONS—11.1%   
1,000  M Federal Farm Credit Bank, 4.74%, 2015  998,768 
1,000  M Federal Home Loan Bank, 5%, 2014  1,006,550 
500  M   Tennessee Valley Authority, 4.5%, 2018    489,428 
 
Total Value of U.S. Government Agency Obligations (cost $2,509,499)    2,494,746 
 
  U.S. GOVERNMENT OBLIGATIONS—3.8%   
780  M   FDA Queens LP, 6.99%, 2017 (cost $887,021) (a)    866,918 

18 

 
 
 
 
     Principal       
       Amount        Security               Value 
 
     SHORT-TERM U.S. GOVERNMENT     
  OBLIGATIONS—5.5%     
  U.S. Treasury Bills:     
         $ 700 M    1.82%, 7/10/08    $ 699,681 
               550 M       1.52%, 7/24/08              549,466 
 
Total Value of Short-Term U.S. Government Obligations (cost $1,249,147)            1,249,147 
 
Total Value of Investments (cost $22,422,990)  98.7  %  22,317,265 
Other Assets, Less Liabilities  1.3           303,982 
 
Net Assets          100.0  %        $22,621,247 

(a)  Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 5). 

See notes to financial statements  19 

Fund Expenses
GROWTH & INCOME FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $881.62  $3.84 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.78  $4.12 

* Expenses are equal to the annualized expense ratio of .82%, multiplied by the average account 
  value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
TOP TEN SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

20 

Portfolio of Investments
GROWTH & INCOME FUND
June 30, 2008

 
 
 
 
Shares       Security     Value 
 
   COMMON STOCKS—99.4%     
   Consumer Discretionary—13.3%     
30,500   bebe stores, inc.    $ 293,105 
33,900   BorgWarner, Inc.    1,504,482 
79,200   Brown Shoe Company, Inc.    1,073,160 
45,800  *  Carter’s, Inc.    632,956 
61,000   CBS Corporation – Class “B”    1,188,890 
58,200  *  CEC Entertainment, Inc.    1,630,182 
48,600   Cinemark Holdings, Inc.    634,716 
39,100   Clear Channel Communications, Inc.    1,376,320 
37,000  *  Coach, Inc.    1,068,560 
33,700  *  Eddie Bauer Holdings, Inc.    139,855 
22,100   Genuine Parts Company    876,928 
31,700   H&R Block, Inc.    678,380 
78,500   Home Depot, Inc.    1,838,470 
18,100   J.C. Penney Company, Inc.    656,849 
64,800  *  Jack in the Box, Inc.    1,452,168 
65,800  *  Lincoln Educational Services Corporation    765,254 
27,700   Luxottica Group SpA (ADR)    646,241 
44,400   McDonald’s Corporation    2,496,168 
140,800  *  Morgans Hotel Group Company    1,450,240 
24,800   Movado Group, Inc.    491,040 
59,100   Newell Rubbermaid, Inc.    992,289 
15,600   Polo Ralph Lauren Corporation – Class “A”    979,368 
79,700   Ruby Tuesday, Inc.    430,380 
16,400   Sherwin-Williams Company    753,252 
65,500   Staples, Inc.    1,555,625 
32,800  *  Steiner Leisure, Ltd.    929,880 
33,950  *  Viacom, Inc. – Class “B”    1,036,833 
70,000  *  Westwood One, Inc.    86,800 
78,900       Wyndham Worldwide Corporation    1,413,099 
 
          29,071,490 
 
   Consumer Staples—12.0%     
108,700   Altria Group, Inc.    2,234,872 
40,000   Avon Products, Inc.    1,440,800 
20,700  *  Chattem, Inc.    1,346,535 
22,500   Coca-Cola Company    1,169,550 
73,800   CVS Caremark Corporation    2,920,266 
36,746   Kraft Foods, Inc. – Class “A”    1,045,424 
161,900   Nu Skin Enterprises, Inc. – Class “A”    2,415,548 
16,500       PepsiCo, Inc.    1,049,235 

21 

Portfolio of Investments (continued)
GROWTH & INCOME FUND
June 30, 2008

 
 
 
 
Shares       Security     Value 
 
   Consumer Staples (continued)   
73,300   Philip Morris International, Inc.  $ 3,620,287 
25,400   Procter & Gamble Company  1,544,574 
71,200   Safeway, Inc.  2,032,760 
3,579   Tootsie Roll Industries, Inc.  89,940 
80,500   Walgreen Company  2,617,055 
47,200       Wal-Mart Stores, Inc.    2,652,640 
 
          26,179,486 
 
   Energy—10.1%   
100  *  Bristow Group, Inc.  4,949 
82,200  *  Cal Dive International, Inc.  1,174,638 
17,400   Chesapeake Energy Corporation  1,147,704 
27,500   ConocoPhillips  2,595,725 
37,200   ExxonMobil Corporation  3,278,436 
51,000   Noble Corporation  3,312,960 
27,400   Sasol, Ltd. (ADR)  1,614,956 
17,500   Schlumberger, Ltd.  1,880,025 
57,900   Suncor Energy, Inc.  3,365,148 
24,700   World Fuel Services Corporation  541,918 
45,625       XTO Energy, Inc.    3,125,769 
 
          22,042,228 
 
   Financials—8.6%   
17,500   American Express Company  659,225 
35,774   American International Group, Inc.  946,580 
36,500   Astoria Financial Corporation  732,920 
45,500   Bank of America Corporation  1,086,085 
59,900   Brookline Bancorp, Inc.  572,045 
21,900   Capital One Financial Corporation  832,419 
35,300   Citigroup, Inc.  591,628 
67,400   Colonial BancGroup, Inc.  297,908 
32,400   Discover Financial Services  426,708 
54,400  *  First Mercury Financial Corporation  959,616 
16,400   Hartford Financial Services Group, Inc.  1,058,948 
60,000   JPMorgan Chase & Company  2,058,600 
29,757   KeyCorp  326,732 
12,700   Merrill Lynch & Company, Inc.  402,717 
18,400   Morgan Stanley  663,688 
89,800   NewAlliance Bancshares, Inc.  1,120,704 
43,300   South Financial Group, Inc.  169,736 
56,800       Sovereign Bancorp, Inc.        418,048 

22 

 
 
 
Shares       Security    Value 
 
   Financials (continued)     
102,700   Sunstone Hotel Investors, Inc. (REIT)    $ 1,704,820 
15,100   SunTrust Banks, Inc.    546,922 
65,000   U.S. Bancorp    1,812,850 
12,400   Wachovia Corporation    192,572 
19,900   Webster Financial Corporation    370,140 
40,000       Wells Fargo & Company    950,000 
 
           18,901,611 
 
   Health Care—11.1%     
45,000   Abbott Laboratories    2,383,650 
30,500   Aetna, Inc.    1,236,165 
15,300  *  Amgen, Inc.    721,548 
37,100  *  Barr Pharmaceuticals, Inc.    1,672,468 
7,600   Baxter International, Inc.    485,944 
6,400  *  Genentech, Inc.    485,760 
57,700   Johnson & Johnson    3,712,418 
16,800  *  Laboratory Corporation of America Holdings    1,169,784 
24,300   Medtronic, Inc.    1,257,525 
33,500   Merck & Company, Inc.    1,262,615 
141,500   Pfizer, Inc.    2,472,005 
44,000   Sanofi-Aventis (ADR)    1,462,120 
42,400  *  St. Jude Medical, Inc.    1,733,312 
19,700  *  Thermo Fisher Scientific, Inc.    1,097,881 
21,000  *  TriZetto Group, Inc.    448,980 
55,000       Wyeth    2,637,800 
 
          24,239,975 
 
   Industrials—19.0%     
50,700   3M Company    3,528,213 
87,900  *  AAR Corporation    1,189,287 
28,500   Alexander & Baldwin, Inc.    1,298,175 
80,400  *  Altra Holdings, Inc.    1,351,524 
58,000   Armstrong World Industries, Inc.    1,694,760 
49,300   Avery Dennison Corporation    2,165,749 
54,300   Barnes Group, Inc.    1,253,787 
32,100  *  BE Aerospace, Inc.    747,609 
23,100   Burlington Northern Santa Fe Corporation    2,307,459 
39,100   Chicago Bridge & Iron Company NV – NY Shares    1,556,962 
24,200   Dover Corporation    1,170,554 
101,000   General Electric Company    2,695,690 
40,300       Harsco Corporation     2,192,723 

23 

Portfolio of Investments (continued)
GROWTH & INCOME FUND
June 30, 2008

 
 
 
 
Shares       Security    Value 
 
   Industrials (continued)     
34,200   Honeywell International, Inc.    $ 1,719,576 
34,400   IDEX Corporation    1,267,296 
42,600   Illinois Tool Works, Inc.    2,023,926 
17,200   Lockheed Martin Corporation    1,696,952 
100,500  *  Mobile Mini, Inc.    2,010,000 
27,800   Northrop Grumman Corporation    1,859,820 
28,300  *  PGT, Inc.    97,352 
13,600   Precision Castparts Corporation    1,310,632 
93,300   TAL International Group, Inc.    2,121,642 
18,300   Textainer Group Holdings, Ltd.    357,399 
32,025   Tyco International, Ltd.    1,282,281 
44,500       United Technologies Corporation    2,745,650 
 
          41,645,018 
 
   Information Technology—16.7%     
10,000  *  CACI International, Inc. – Class “A”    457,700 
128,800  *  Cisco Systems, Inc.    2,995,888 
64,700  *  Electronics for Imaging, Inc.    944,620 
113,600  *  EMC Corporation    1,668,784 
85,000  *  Entrust, Inc.    249,900 
59,400   Harris Corporation    2,999,106 
42,600   Hewlett-Packard Company    1,883,346 
60,100   Intel Corporation    1,290,948 
37,000   International Business Machines Corporation    4,385,610 
62,000  *  Macrovision Solutions Corporation    927,520 
125,100   Microsoft Corporation    3,441,501 
49,800  *  NCI, Inc. – Class “A”    1,139,424 
84,400   Nokia Corporation – Class “A” (ADR)    2,067,800 
67,686  *  Parametric Technology Corporation    1,128,326 
53,900   QUALCOMM, Inc.    2,391,543 
38,800  *  SI International, Inc.    812,472 
112,400  *  Symantec Corporation    2,174,940 
153,100  *  TIBCO Software, Inc.    1,171,215 
16,425   Tyco Electronics, Ltd.    588,343 
27,000  *  ValueClick, Inc.    409,050 
46,300   Western Union Company    1,144,536 
32,200  *  Wright Express Corporation    798,560 
61,600       Xilinx, Inc.    1,555,400 
 
          36,626,532 

24 

 
 
 
 
Shares or       
Principal       
Amount      Security          Value 
 
  Materials—6.1%     
60,700  Celanese Corporation – Series “A”    $ 2,771,562 
21,200  Dow Chemical Company    740,092 
21,400  Freeport-McMoRan Copper & Gold, Inc.    2,507,866 
40,600  Lubrizol Corporation    1,880,998 
22,800  PPG Industries, Inc.    1,308,036 
21,600  Praxair, Inc.    2,035,584 
73,100  RPM International, Inc.    1,505,860 
49,600      Temple-Inland, Inc.           558,992 
 
                 13,308,990 
 
  Telecommunication Services—2.2%     
65,100  AT&T, Inc.    2,193,219 
76,700       Verizon Communications, Inc.          2,715,180 
 
                 4,908,399 
 
  Utilities—.3%     
25,000       Atmos Energy Corporation          689,250 
 
Total Value of Common Stocks (cost $216,721,861)            217,612,979 
 
  SHORT-TERM INVESTMENTS—.4%     
  Money Market Fund     
$790  M    First Investors Cash Reserve Fund, 2.24% (cost $790,000)**           790,000 
 
Total Value of Investments (cost $217,511,861)  99.8 %  218,402,979 
Other Assets, Less Liabilities  .2         413,934 
 
Net Assets           100.0 %      $218,816,913 

 *  Non-income producing 
**  Affiliated unregistered money market fund available only to First Investors funds and certain 
     accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
     at June 30, 2008 (see Note 3). 

Summary of Abbreviations: 
ADR  American Depositary Receipts 
REIT  Real Estate Investment Trust 

See notes to financial statements  25 

Fund Expenses
HIGH YIELD FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $985.73  $4.20 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.63  $4.27 

*  Expenses are equal to the annualized expense ratio of .85%, multiplied by the average account 
   value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
TOP TEN SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

26 

Portfolio of Investments
HIGH YIELD FUND
June 30, 2008

 
 
 
 
Principal       
Amount      Security    Value 
 
  CORPORATE BONDS—90.9%     
  Aerospace/Defense—3.7%     
 $725  M  Alliant Techsystems, Inc., 6.75%, 2016   $706,875 
750  M  DRS Technologies, Inc., 6.875%, 2013    753,750 
460  M  DynCorp International, LLC, 9.5%, 2013    460,000 
190  M  GenCorp, Inc., 9.5%, 2013    188,100 
625  M    L-3 Communications Corp., 7.625%, 2012    632,813 
 
          2,741,538 
 
  Automotive—4.9%     
300  M  Accuride Corp., 8.5%, 2015 (a)    222,000 
  Asbury Automotive Group, Inc.:     
600  M     8%, 2014    522,000 
250  M     7.625%, 2017    202,500 
1,025  M  Avis Budget Car Rental, LLC, 7.75%, 2016    791,812 
594  M  Cambridge Industries Liquidating Trust, 2008 (b)(c)    371 
750  M  Tenneco Automotive, Inc., 8.625%, 2014 (a)    665,625 
925  M  United Auto Group, Inc., 7.75%, 2016    814,000 
400  M    United Components, Inc., 9.375%, 2013    376,000 
 
            3,594,308 
 
  Chemicals—4.5%     
  Huntsman, LLC:     
250  M     11.625%, 2010    258,750 
569  M     11.5%, 2012    593,182 
750  M  Nell AF S.a.r.l., 8.375%, 2015 (d)    480,000 
700  M  Newmarket Corp., 7.125%, 2016    698,250 
500  M  Terra Capital, Inc., 7%, 2017    492,500 
575  M  Tronox Worldwide, LLC, 9.5%, 2012    471,500 
425  M    Westlake Chemical Corp., 6.625%, 2016    359,125 
 
          3,353,307 
 
  Consumer Non-Durables—2.0%     
500  M  GFSI, Inc., 10.5%, 2011 (d)(e)    477,500 
  Levi Strauss & Co.:     
500  M     9.75%, 2015    505,000 
500  M       8.875%, 2016    488,750 
 
          1,471,250 

27 

Portfolio of Investments (continued)
HIGH YIELD FUND
June 30, 2008

 
 
 
 
Principal       
Amount      Security    Value 
 
  Energy—12.1%     
$725  M  Basic Energy Services, Inc., 7.125%, 2016    $708,687 
400   M  Calfrac Holdings, 7.75%, 2015 (d)    388,000 
  Chesapeake Energy Corp.:     
200   M     7.5%, 2014 (a)    199,500 
500  M     6.375%, 2015    475,000 
1,150  M     6.625%, 2016    1,109,750 
500  M  Cimarex Energy Co., 7.125%, 2017    493,750 
650  M  Compagnie Generale de Geophysique, 7.5%, 2015    651,625 
625  M  Complete Production Services, Inc., 8%, 2016    627,344 
200  M  Connacher Oil & Gas, Ltd., 10.25%, 2015 (d)    212,000 
1,300  M  Delta Petroleum Corp., 7%, 2015    1,118,000 
150  M  Hilcorp Energy I, LP, 9%, 2016 (d)    153,375 
24  M  National Oilwell Varco, Inc., 6.125%, 2015    24,145 
500  M  Pacific Energy Partners LP, 7.125%, 2014    504,639 
  Petroplus Finance, Ltd.:     
100  M     6.75%, 2014 (d)    91,000 
550  M     7%, 2017 (d)    488,125 
375  M  Plains Exploration & Production Co., 7.625%, 2018    376,875 
400  M  Stallion Oilfield Services, Ltd., 9.75%, 2015 (d)    342,000 
400  M  Stewart & Stevenson, LLC, 10%, 2014    397,000 
100  M  Swift Energy Co., 7.125%, 2017    92,750 
510  M    Tesoro Corp., 6.25%, 2012    487,050 
 
          8,940,615 
 
  Financial Services—2.1%     
1,615  M    Targeted Return Index Securities Trust, 7.117%, 2016 (d)    1,574,361 
 
  Financials—.6%     
650  M    General Motors Acceptance Corp., 6.75%, 2014    429,788 
 
  Food/Beverage/Tobacco—2.5%     
1,250  M  Constellation Brands, Inc., 7.25%, 2016    1,181,250 
  Land O’Lakes, Inc.:     
200  M     9%, 2010    207,000 
42  M     8.75%, 2011    42,578 
375  M    Southern States Cooperative, Inc., 10.5%, 2010 (d)    384,375 
 
          1,815,203 

28 

 
 
 
 
Principal       
Amount      Security    Value 
 
  Food/Drug—1.1%     
$750   M  Ingles Markets, Inc., 8.875%, 2011    $763,125 
24   M    Rite Aid Corp., 8.125%, 2010    24,106 
 
          787,231 
 
  Forest Products/Containers—2.8%     
350  M  Jefferson Smurfit Corp., 8.25%, 2012    307,125 
500  M  Packaging Dynamics Finance Corp., 10%, 2016 (d)    335,000 
600  M  Sappi Papier Holding, AG, 6.75%, 2012 (d)    576,918 
500  M  Tekni-Plex, Inc., 8.75%, 2013 (a)    420,000 
475   M    Verso Paper Holdings, LLC, 6.623%, 2014 (e)    439,375 
 
          2,078,418 
 
  Gaming/Leisure—5.8%     
750  M  Circus & Eldorado/Silver Legacy, 10.125%, 2012    725,625 
500  M  Isle of Capri Casinos, Inc., 7%, 2014 (a)    355,000 
780  M  Mandalay Resort Group, 6.375%, 2011    713,700 
1,040  M  MGM Mirage, Inc., 6.625%, 2015    839,800 
200  M  Pinnacle Entertainment, Inc., 7.5%, 2015 (a)    154,000 
1,255  M  Speedway Motorsports, Inc., 6.75%, 2013    1,229,900 
500  M    Station Casinos, Inc., 6.875%, 2016 (a)    275,625 
 
          4,293,650 
 
  Health Care—8.5%     
  Alliance Imaging, Inc.:     
200  M     7.25%, 2012    189,000 
350  M     7.25%, 2012    330,750 
625  M  Community Health Systems, 8.875%, 2015    632,030 
500  M  Cooper Companies, Inc., 7.125%, 2015    482,500 
900  M  DaVita, Inc., 7.25%, 2015    879,750 
520  M  Fisher Scientific International, Inc., 6.125%, 2015    516,230 
600  M  Genesis Health Ventures, Inc., 9.75%, 2011 (b)(c)    375 
800  M  HCA, Inc., 6.75%, 2013    706,000 
1,000  M  Omnicare, Inc., 6.875%, 2015    930,000 
343  M  Res-Care, Inc., 7.75%, 2013    328,423 
  Tenet Healthcare Corp.:     
550  M     7.375%, 2013    519,750 
250  M     9.25%, 2015    246,250 
600  M    Universal Hospital Services, Inc., 6.303%, 2015 (e)    564,000 
 
          6,325,058 

29 

Portfolio of Investments (continued)
HIGH YIELD FUND
June 30, 2008

 
 
 
 
Principal       
Amount       Security    Value 
 
   Housing—2.5%     
$320  M  Beazer Homes USA, Inc., 6.875%, 2015 (a)    $230,400 
900  M  Builders FirstSource, Inc., 6.926%, 2012 (e)    616,500 
100  M  NTK Holdings, Inc., 0%–10.75%, 2014 (a)(f)    46,000 
440  M  Ply Gem Industries, Inc., 9%, 2012 (a)    260,700 
500  M  Realogy Corp., 12.375%, 2015 (a)    247,500 
   William Lyon Homes, Inc.:     
500  M    7.625%, 2012    262,500 
300  M      10.75%, 2013    163,500 
 
          1,827,100 
 
   Information Technology—4.5%     
850  M  Belden CDT, Inc., 7%, 2017    820,250 
500  M  Exodus Communications, Inc., 10.75%, 2009 (b)(c)    313 
   Freescale Semiconductor, Inc.:     
750  M    9.125%, 2014    586,875 
125  M    10.125%, 2016 (a)    95,937 
   Iron Mountain, Inc.:     
1,000  M    8.25%, 2011    1,000,000 
500  M    8%, 2020    495,000 
   Sanmina – SCI Corp.:     
125  M    5.526%, 2014 (d)(e)    116,250 
200  M      8.125%, 2016    181,000 
 
          3,295,625 
 
   Investment/Finance Companies—1.0%     
700  M    LaBranche & Co., Inc., 11%, 2012    722,750 
 
   Manufacturing—1.4%     
260  M  Case New Holland, Inc., 7.125%, 2014    256,100 
250  M  ESCO Corp., 8.625%, 2013 (d)    253,750 
500  M    Terex Corp., 8%, 2017    498,750 
 
          1,008,600 
 
   Media-Broadcasting—3.8%     
1,250  M  Block Communications, Inc., 8.25%, 2015 (d)    1,193,750 
600  M  LBI Media, Inc., 8.5%, 2017 (d)    465,000 
320  M  Nexstar Finance Holding, LLC, 11.375%, 2013    308,405 
22  M    Sinclair Broadcasting Group, Inc., 8%, 2012    226,240 

30 

 
 
 
 
Principal       
Amount      Security    Value 
 
  Media-Broadcasting (continued)     
  Young Broadcasting, Inc.:     
$476   M     10%, 2011    $268,940 
600  M       8.75%, 2014    327,000 
 
          2,789,335 
 
  Media-Cable TV—8.2%     
1,255  M  Adelphia Communications Escrow Bond, 10.25%, 2011 (b)    112,950 
850  M  Atlantic Broadband Finance, LLC, 9.375%, 2014    769,250 
600  M  Cablevision Systems Corp., 8%, 2012    570,000 
  Charter Communications Holdings, LLC:     
2,000  M     10%, 2009    1,950,000 
250  M     11.75%, 2011    182,500 
375  M  CSC Holdings, Inc., 8.125%, 2009    378,750 
1,060  M  Echostar DBS Corp., 6.375%, 2011    1,025,550 
1,000  M  Mediacom LLC/Mediacom Capital Corp., 7.875%, 2011    927,500 
200  M    Quebecor Media, Inc., 7.75%, 2016    187,000 
 
          6,103,500 
 
  Media-Diversified—3.8%     
800  M  Cenveo, Inc., 7.875%, 2013    672,000 
100  M  Deluxe Corp., 7.375%, 2015    88,000 
1,125  M  Idearc, Inc., 8%, 2016    712,969 
  MediaNews Group, Inc.:     
375  M     6.875%, 2013    155,625 
400  M     6.375%, 2014    166,000 
650  M  R.H. Donnelley Corp., 8.875%, 2017 (d)    390,000 
600  M    Universal City Development Partners, Ltd., 11.75%, 2010    618,000 
 
          2,802,594 
 
  Metals/Mining—1.4%     
250  M  Metals USA, Inc., 11.125%, 2015    261,250 
830  M    Russell Metals, Inc., 6.375%, 2014    784,350 
 
          1,045,600 
 
  Retail-General Merchandise—2.5%     
600  M  Claire’s Stores, Inc., 9.625%, 2015 PIK (a)    258,000 
325  M  GSC Holdings Corp., 8%, 2012    333,125 
900  M  Neiman Marcus Group, Inc., 10.375%, 2015 (a)    904,500 
500  M    Yankee Acquisition Corp., 9.75%, 2017 (a)    362,500 
 
          1,858,125 

31 

Portfolio of Investments (continued)
HIGH YIELD FUND
June 30, 2008

 
 
 
 
Principal       
Amount       
or Shares        Security    Value 
 
   Services—6.1%     
   Allied Waste NA, Inc.:     
$200  M         7.875%, 2013    $204,500 
1,000  M         7.375%, 2014    1,020,000 
750  M         6.875%, 2017    736,875 
550  M   Ashtead Capital, Inc., 9%, 2016 (a)(d)    486,750 
300  M   First Data Corp., 9.875%, 2015 (d)    261,375 
   United Rentals, Inc.:     
323M  M         6.5%, 2012    292,541 
650  M         7%, 2014    507,000 
1,000  M     Waste Services, Inc., 9.5%, 2014    1,015,000 
 
          4,524,041 
 
   Telecommunications—.6%     
500  M     Citizens Communications Co., 7.125%, 2019    450,000 
 
   Transportation—.8%     
600  M     Roadway Corp., 8.25%, 2008    603,000 
 
   Utilities—1.5%     
600  M   Dynegy Holdings, Inc., 7.75%, 2019    549,000 
625  M     NRG Energy, Inc., 7.375%, 2017    592,188 
 
          1,141,188 
 
   Wireless Communications—2.2%     
1,000  M   Nextel Communications, Inc., 5.95%, 2014    803,417 
800  M     Rogers Wireless, Inc., 6.375%, 2014    801,867 
 
          1,605,284 
 
Total Value of Corporate Bonds (cost $75,790,317)    67,181,469 
 
   COMMON STOCKS—2.3%     
   Food/Drug—.1%     
4,575       Ingles Markets, Inc.    106,735 
 
   Media-Broadcasting—.3%     
32,500       Sinclair Broadcasting Group, Inc.    247,000 
 
   Media-Cable TV—1.0%     
1,253,066  *  Adelphia Recovery Trust    67,039 
25,557    *  Time Warner Cable, Inc. – Class “A”    676,749 
 
          743,788 

32 

 
 
 
 
Shares,       
Principal       
Amount       
or Warrants       Security    Value 
 
   Media-Diversified—.5%     
2,500       MediaNews Group, Inc. – Class “A” (c)    $328,125 
 
   Telecommunications—.4%     
25,000  * Citizens Communications Company    283,500 
3  *  Viatel Holding (Bermuda), Ltd. (c)    11 
5,970     *  World Access, Inc.    5 
 
          283,516 
 
Total Value of Common Stocks (cost $1,993,638)    1,709,164 
 
   AUCTION RATE SECURITIES(g)—1.4%     
$ 175  M   New Jersey St Trans. Trust Fund Auth. Rev. Bonds, 3.7%, 2019    175,000 
500  M   New York State Thruway Auth. Svc. Contract Rev., 3.725%, 2021    500,000 
375  M      Winter Park, FL Elec. Rev. Bonds, 4.345%, 2034    375,000 
 
Total Value of Auction Rate Securities (cost $1,050,000)    1,050,000 
 
   WARRANTS—.0%     
   Telecommunication Services     
250    *  GT Group Telecom, Inc. (expiring 2/1/10) (cost $22,587) (c)(d)    — 
 
   SHORT-TERM INVESTMENTS—4.2%     
   Money Market Fund     
$3,085  M      First Investors Cash Reserve Fund, 2.24% (cost $3,085,000) (h)    3,085,000 
 
   CERTIFICATES OF DEPOSIT(i)—3.2%     
200   M   American Express Centurion Bank, 2.72%, 8/8/08    199,959 
200   M   Bank of Scotland PLC, 2.73%, 7/11/08    200,004 
200   M   Barclays Bank PLC, 2.68%, 7/2/08    200,000 
200   M   BNP Paribas, 2.66%, 7/15/08    200,000 
200   M   Commonwealth Bank of Australia, 2.63%, 7/11/08    199,998 
200   M   Deutsche Bank AG, 2.72%, 7/30/08    200,010 
200   M   Dexia Credit Local SA, 2.685%, 8/7/08    199,952 
200   M   Nordea Bank Finland PLC, 2.7%, 8/4/08    199,959 
200   M   Skandinaviska Enskilda Banken AB, 2.7%, 7/17/08    200,003 
200   M   Societe Generale, 2.93%, 7/2/08    200,003 
200   M   Svenska Handelsbanken AB, 2.55%, 7/11/08    199,993 
200   M     Toronto Dominion Bank, 2.77%, 9/5/08    199,873 
 
Total Value of Certificates of Deposit (cost $2,399,754 )    2,399,754 

33 

Portfolio of Investments (continued)
HIGH YIELD FUND
June 30, 2008

 
 
 
 
     Principal       
       Amount      Security         Value 
 
  REPURCHASE AGREEMENTS(i)—2.9%   
         $162  M Barclays Bank PLC, 2.5%, dated 6/30/08, to be repurchased   
at $162,011 on 7/1/08 (collateralized by Fannie Mae, 4.12%,        
     5/6/13, valued at $162,275)    $162,000 
           2,00  M Deutsche Bank, 2.5%, dated 6/30/08, to be repurchased   
at $2,000,139 on 7/1/08 (collateralized by Fannie Mae, 5.28%,        
         9/17/12 valued at $2,041,778)         2,000,000 
 
Total Value of Repurchase Agreements (cost $2,162,000)         2,162,000 
 
Total Value of Investments (cost $86,503,296)  104.9  %     77,587,387 
Excess of Liabilities Over Other Assets  (4.9)       (3,643,364) 
 
Net Assets            100.0   %     $73,944,023 

*  Non-income producing 
(a)  Loaned security; a portion or all of the security is on loan as of June 30, 2008 (see Note 1G). 
(b)  In default as to principal and/or interest payment 
(c)  Securities valued at fair value (see Note 1A) 
(d)  Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 5). 
(e)  Interest rates on adjustable rate bonds are determined and reset quarterly by the indentures. The 
 interest rates shown are the rates in effect on June 30, 2008. 
(f)  Denotes a stepbond (a zero coupon bond that converts to a fixed interest rate at a designated date) 
(g)  Interest rates on action rate securities are determined and reset periodically by the issuer and the 
   rates in effect on June 30, 2008. 
(h)  Affiliated unregistered money market fund available only to First Investors funds and certain 
 accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
 at June 30, 2008 (see Note 3). 
(i)  Issued as collateral for securities on loan 

34  See notes to financial statements 

Fund Expenses
INTERNATIONAL FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $874.67  $4.29 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.29  $4.62 

*  Expenses are equal to the annualized expense ratio of .92%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
BY SECTOR


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

35 

Portfolio of Investments
INTERNATIONAL FUND
June 30, 2008

 
 
 
 
Shares      Security      Value 
 
  COMMON STOCKS—94.8%     
  United Kingdom—18.0%     
32,000  AMEC PLC    $566,800 
133,525  BG Group PLC    3,473,186 
214,520  British American Tobacco PLC    7,424,329 
74,729  Diageo PLC    1,374,203 
112,457  Imperial Tobacco Group PLC    4,187,455 
46,659  Reckitt Benckiser Group PLC    2,363,269 
607,353      Tesco PLC    4,463,858 
 
          23,853,100 
 
  Brazil—8.6%     
86,825  Banco Itau Holding Financeira SA (ADR)    1,763,416 
95,200  Companhia Vale do Rio Doce (ADR)    3,410,064 
78,080  Petroleo Brasileiro SA – Petrobras (ADR)    5,530,406 
22,280      Souza Cruz SA    639,193 
 
          11,343,079 
 
  Japan—8.4%     
25,400  Daito Trust Construction Company, Ltd.    1,233,998 
93,200  Millea Holdings, Inc.    3,639,904 
63,600  Mitsubishi Corporation    2,099,901 
70,900  Mitsui & Company, Ltd.    1,568,421 
54,100      Secom Company, Ltd.    2,633,423 
 
          11,175,647 
 
  Australia—8.1%     
78,200  BHP Billiton, Ltd.    3,279,440 
121,000  Coca-Cola Amatil, Ltd.    813,982 
10,182  Incitec Pivot, Ltd.    1,807,658 
14,300  Macquarie Group, Ltd.    667,484 
15,200  Rio Tinto, Ltd.    1,976,489 
61,468      WorleyParsons, Ltd.    2,233,269 
 
          10,778,322 

36 

 
 
 
 
Shares       Security    Value 
 
   Switzerland—6.8%     
66,700   ABB, Ltd. – Registered    $1,902,908 
297   Lindt & Spruengli AG    822,538 
1,500  *  Meyer Burger Technology AG    452,091 
69,850   Nestle SA – Registered    3,165,400 
14,708       Roche Holding AG – Genusscheine    2,656,855 
 
          8,999,792 
 
   Canada—6.1%     
43,900   Canadian Natural Resources, Ltd.    4,420,938 
64,145       Suncor Energy, Inc.    3,735,323 
 
          8,156,261 
 
   United States—5.6%     
107,700   Philip Morris International, Inc.    5,319,303 
14,200       Transocean, Inc.    2,163,938 
 
           7,483,241 
 
   Netherlands—5.0%     
26,800   ArcelorMittal    2,651,709 
28,350      *   Core Laboratories NV    4,035,622 
 
             6,687,331 
 
   Netherlands Antilles—4.7%     
2,600   Schlumberger, Ltd.    280,810 
55,900           Schlumberger, Ltd. (ADR)    6,005,337 
 
            6,286,147 
 
   Spain—3.7%     
156,720   Enagas    4,444,556 
7,300       Red Electrica de Espana    475,587 
 
          4,920,143 
 
   Germany—3.4%     
22,700   RWE AG    2,859,406 
15,100       Siemens AG – Registered    1,668,209 
 
          4,527,615 

37 

Portfolio of Investments (continued)
INTERNATIONAL FUND
June 30, 2008

 
 
 
 
Shares      Security    Value 
 
  India—3.0%   
5,213  Bharat Heavy Electricals, Ltd.  $167,137 
43,301  HDFC Bank, Ltd. (ADR)  3,102,950 
3,300  Housing Development Finance Corporation, Ltd.  150,703 
211,388      Infrastructure Development Finance Company, Ltd.     508,756 
 
          3,929,546 
 
  China—2.8%   
1,959,400  CNOOC, Ltd.  3,372,275 
2,100      CNOOC, Ltd. (ADR)    364,434 
 
          3,736,709 
 
  Mexico—2.4%   
59,424      America Movil SAB de CV (ADR) – Series “L”    3,134,616 
 
  Norway—1.9%   
197,700      Orkla ASA    2,538,472 
 
  Hong Kong—1.3%   
54,960      Jardine Matheson Holdings, Ltd.    1,703,760 
 
  Italy—1.2%   
232,584      Maire Tecnimont SpA    1,570,226 
 
  Belgium—1.2%   
22,299       InBev NV    1,548,669 
 
  France—1.1%   
11,525       Air Liquide SA    1,522,874 
 
  Denmark—.9%   
19,000      Novo Nordisk A/S – Series “B”    1,244,336 
 
  Singapore—.6%   
94,400      Keppel Corporation, Ltd.    774,015 
 
Total Value of Common Stocks (cost $110,744,979)    125,913,901 

38 

   
 
 
 
Warrants or       
Principal       
Amount       Security         Value 
 
   WARRANTS(a) —5.0%     
   India     
137,307  *  Bharti Tele-Ventures, Ltd. (expiring 5/31/10)    $ 2,301,815 
7,365   HDFC Bank, Ltd. (expiring 6/28/10)    172,444 
44,000   Housing Development Finance Corp., Ltd. (expiring 5/25/09)  2,009,392 
230,200  *  ITC, Ltd. (expiring 5/5/10)    1,004,823 
38,100    *  United Spirits, Ltd. (expiring 6/20/11)         1,103,109 
 
Total Value of Warrants (cost $5,979,715)         6,591,583 
 
   SHORT-TERM INVESTMENTS—.2%     
   Money Market Fund     
$200  M    First Investors Cash Reserve Fund, 2.24% (cost $200,000) (b)       200,000 
 
Total Value of Investments (cost $116,924,694)  100.0   %  132,705,484 
Excess of Liabilities Over Other Assets  —      (22,689) 
 
Net Assets             100.0  %      $132,682,795 

*  Non-income producing 
(a)  Participatory notes issued by brokers registered in the local market. Securities valued at fair 
 value (see Note 1A). 
(b)  Affiliated unregistered money market fund available only to First Investors funds and certain 
 accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
 at June 30, 2008 (see Note 3). 

Summary of Abbreviations: 
ADR  American Depositary Receipts 

See notes to financial statements  39 

Fund Expenses
INVESTMENT GRADE FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $992.09  $3.71 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,021.13  $3.77 

*  Expenses are equal to the annualized expense ratio of .75%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses paid 
 during the period are net of expenses waived. 

Portfolio Composition
TOP TEN SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

40 

Portfolio of Investments
INVESTMENT GRADE FUND
June 30, 2008

                  
   
   
   
Principal       
 Amount       Security    Value 
 
   CORPORATE BONDS—78.2%     
   Automotive—1.3%     
$500  M      Daimler Chrysler NA Holdings Corp., 6.5%, 2013    $519,073 
 
   Chemicals—1.6%     
300   M   Air Products & Chemicals, Inc., 4.125%, 2010    299,057 
300   M       Cabot Corp., 5.25%, 2013 (a)    310,004 
 
           609,061 
 
   Consumer Durables—.9%     
350   M        Black & Decker Corp., 5.75%, 2016    334,208 
 
   Consumer Non-Durables—.8%     
300  M      Newell Rubbermaid, Inc., 6.75%, 2012    308,567 
 
   Energy—7.3%     
300  M   Canadian Natural Resources, Ltd., 5.9%, 2018    298,619 
200  M   Husky Oil, Ltd., 8.9%, 2028    201,125 
150  M   Kinder Morgan Finance Co., 5.35%, 2011    145,500 
200  M   Nabors Industries, Inc., 6.15%, 2018 (a)    202,517 
300  M   Nexen, Inc., 5.05%, 2013    293,480 
300  M   Northern Border Pipeline Co., 7.1%, 2011    312,155 
269  M   Pacific Energy Partners LP, 7.125%, 2014    271,496 
800  M   Rockies Express Pipeline, LLC, 6.25%, 2013 (a)    809,668 
300  M        Spectra Energy Capital, LLC, 6.2%, 2018    292,410 
 
               2,826,970 
 
   Financial Services—10.7%     
375  M   Amvescap PLC, 5.375%, 2013    353,440 
500  M   Citigroup, Inc., 5.5%, 2013    488,493 
650  M   CoBank, ACB, 7.875%, 2018 (a)    646,532 
200  M   Compass Bank, 6.4%, 2017    195,212 
300  M   Fleet Capital Trust II, 7.92%, 2026    302,193 
300  M   Hibernia Corp., 5.35%, 2014    277,285 
360  M   Independence Community Bank Corp., 4.9%, 2010    328,830 
100  M   National City Bank of Pennsylvania, 7.25%, 2011    91,245 
400  M   Royal Bank of Scotland Group PLC, 5%, 2014    383,830 
   SunTrust Banks, Inc.:     
400  M     7.25%, 2018    399,855 
445  M     5.853%, 2049    323,971 
400  M      Washington Mutual Bank, 5.95%, 2013    332,335 
 
          4,123,221 

41 

Portfolio of Investments (continued)
INVESTMENT GRADE FUND
June 30, 2008

 
 
 
 
Principal       
Amount       Security    Value 
 
   Financials—15.1%     
   American General Finance Corp.:     
$125   M     8.125%, 2009  $127,861 
200   M     6.9%, 2017    174,600 
100   M   Caterpillar Financial Services Corp., 4.6%, 2014    97,565 
355   M   ERAC USA Finance Enterprise Co., 8%, 2011 (a)    366,836 
252   M   Ford Motor Credit Co., 9.75%, 2010    219,817 
   Goldman Sachs Group, Inc.:     
300   M     5.95%, 2018    288,501 
200   M     6.15%, 2018    194,381 
   International Lease Finance Corp.:     
300   M     5.625%, 2013    262,574 
1,100   M     6.625%, 2013    989,417 
   Lehman Brothers Holdings, Inc.:     
200   M     5.625%, 2013    189,487 
300   M     6.75%, 2017    282,308 
   Merrill Lynch & Co.:     
700   M     5.45%, 2013    660,897 
200   M     6.875%, 2018    190,677 
1,900   M     Morgan Stanley, 6.625%, 2018    1,803,452 
 
          5,848,373 
 
   Food/Beverage/Tobacco—2.3%     
350   M   Bunge Limited Finance Corp., 5.875%, 2013    344,466 
200   M   Cargill, Inc., 6%, 2017 (a)    199,206 
150   M   ConAgra Foods, Inc., 6.75%, 2011    156,305 
200   M     Philip Morris International, Inc., 5.65%, 2018    194,754 
 
          894,731 
 
   Food/Drug—1.6%     
300   M   Kroger Co., 6.75%, 2012    316,190 
200   M   Safeway, Inc., 6.5%, 2011    206,977 
100   M     Wal-Mart Stores, Inc., 6.2%, 2038    98,585 
 
          621,752 
 
   Forest Products/Containers—.7%     
275   M     Sappi Papier Holding AG, 6.75%, 2012 (a)    264,421 
 
   Gaming/Leisure—.3%     
125  M     MGM Mirage, Inc., 8.5%, 2010    124,063 

42 

   
     
   
   
Principal       
 Amount       Security    Value 
 
   Health Care—.9%     
$350  M     Fisher Scientific International, Inc., 6.75%, 2014    $358,849 
 
   Housing—.7%     
250  M     D.R. Horton, Inc., 8%, 2009    250,625 
 
   Industrials—.3%     
110  M     Harley-Davidson Funding Corp., 6.8%, 2018 (a)    108,877 
 
   Information Technology—3.1%     
405  M   International Business Machines Corp., 7%, 2025    435,700 
500  M   Oracle Corp., 5.75%, 2018    500,498 
250  M     Xerox Corp., 6.875%, 2011    259,261 
 
          1,195,459 
 
   Manufacturing—2.4%     
250  M   Briggs & Stratton Corp., 8.875%, 2011    256,250 
300  M   Crane Co., 6.55%, 2036    279,079 
123  M   Hanson Australia Funding, Ltd., 5.25%, 2013    120,186 
100  M   Hanson PLC, 7.875%, 2010    105,247 
125  M     Ingersoll-Rand Co., 9%, 2021    159,964 
 
          920,726 
 
   Media-Broadcasting—1.4%     
250  M   Comcast Cable Communications, Inc., 7.125%, 2013    263,836 
300  M     Cox Communications, Inc., 4.625%, 2013    284,309 
 
          548,145 
 
   Media-Diversified—5.0%     
400  M   Dun & Bradstreet Corp., 6%, 2013    398,897 
200  M   McGraw-Hill Cos., Inc., 5.9%, 2017    197,794 
300  M   News America, Inc., 5.3%, 2014    294,471 
   Time Warner Cable, Inc.:     
225  M     6.875%, 2012    230,378 
570  M     6.2%, 2013    580,231 
230  M     Thomson Reuters Corp., 5.95%, 2013    231,173 
 
          1,932,944 

43 

Portfolio of Investments (continued)
INVESTMENT GRADE FUND
June 30, 2008

 
   
   
   
Principal       
Amount       Security    Value 
 
   Metals/Mining—2.8%     
$ 200  M   Alcoa, Inc., 6%, 2012    $200,379 
666  M   ArcelorMittal, 6.125%, 2018 (a)    652,043 
250  M     Vale Overseas, Ltd., 6.25%, 2017    243,244 
 
          1,095,666 
 
   Real Estate Investment Trusts—1.2%     
270  M   AvalonBay Communities, Inc., 7.5%, 2010    282,412 
185  M     Duke Weeks Realty Corp., 7.75%, 2009    189,087 
 
          471,499 
 
   Telecommunications—5.4%     
300  M   Deutsche Telekom AG, 8%, 2010    317,510 
250  M   GTE Corp., 6.84%, 2018    257,820 
300  M   SBC Communications, Inc., 6.25%, 2011    310,399 
250  M   Sprint Capital Corp., 6.375%, 2009    250,050 
   Verizon Communications, Inc.:     
400  M     5.5%, 2018    381,221 
100  M     6.1%, 2018    99,458 
200  M   Verizon New York, Inc., 6.875%, 2012    208,751 
250  M     Vodafone AirTouch PLC, 7.75%, 2010    261,341 
 
          2,086,550 
 
   Transportation—3.7%     
500  M   Burlington Northern Santa Fe Corp., 4.3%, 2013    473,788 
   Canadian National Railway Co.:     
450  M     5.85%, 2017    456,017 
300  M     6.8%, 2018    320,148 
200  M     Union Pacific Corp., 5.7%, 2018    195,538 
 
          1,445,491 
 
   Utilities—7.7%     
750  M   E. ON International Finance BV, 5.8%, 2018 (a)    737,114 
400  M   Entergy Gulf States, Inc., 5.25%, 2015    377,754 
250  M   Great River Energy Co., 5.829%, 2017 (a)    248,667 
   NiSource Finance Corp.:     
600  M     7.875%, 2010    622,543 
400  M     6.15%, 2013    399,346 
80  M   NY State Gas & Electric Co., 6.15%, 2017 (a)    79,415 
100  M     OGE Energy Corp., 5%, 2014    95,004 

44 

 
 
 
 
Principal       
Amount       
or Shares      Security    Value 
 
  Utilities (continued)     
$305  M  Public Service Electric & Gas Co., 6.75%, 2016    $329,070 
80  M    Southwestern Electric Power Co., 5.875%, 2018    76,706 
 
            2,965,619 
 
  Waste Management—1.0%     
100  M  Allied Waste NA, Inc., 5.75%, 2011    98,750 
300  M    Waste Management, Inc., 6.875%, 2009    305,983 
 
           404,733 
 
Total Value of Corporate Bonds (cost $30,941,785)    30,259,623 
 
  PREFERRED STOCKS—9.6%     
  Financial Services—4.0%     
40,000  Citigroup, Inc., 8.125%, 2049 – Series “AA”    896,000 
400,000  JPMorgan Chase & Co., 7.9%, 2049    376,172 
  Wachovia Corp.:     
200,000  7.98%, 2049    184,210 
5,000        8%, 2049    112,100 
 
           1,568,482 
  
  Financials—2.1%     
40,000      Lehman Brothers Holdings, Inc., 7.95%, 2013 – Series “J”    814,000 
 
  U.S. Government Agency—3.5%     
36,000  Fannie Mae, 8.25%, 2045    826,200 
21,000      Freddie Mac, 8.375%, 2047    510,300 
 
          1,336,500 
 
Total Value of Preferred Stocks (cost $4,107,507)    3,718,982 
 
  MORTGAGE-BACKED CERTIFICATES—3.6%     
  Fannie Mae—2.9%     
$ 878  M  5.5%, 1/1/2037    867,306 
231  M    6.5%, 7/1/2037    238,250 
 
          1,105,556 
 
  Freddie Mac—.7%     
298  M    6%, 11/1/2037    301,084 
 
Total Value of Mortgage-Backed Certificates (cost $1,404,512)    1,406,640 

45 

Portfolio of Investments (continued)
INVESTMENT GRADE FUND
June 30, 2008

 
 
 
 
Principal       
Amount      Security        Value 
 
  U.S. GOVERNMENT OBLIGATIONS—3.0%   
$250   M  FDA Queens LP, 6.99%, 2017 (a)    $277,414 
  U.S. Treasury Note:     
700  M     3.125%, 2013    694,368 
200  M       3.5%, 2018        192,578 
 
Total Value of U.S. Government Obligations (cost $1,167,280)      1,164,360 
 
  U.S. GOVERNMENT AGENCY     
  OBLIGATIONS—1.0%     
400  M    Fannie Mae, 6%, 2016 (cost $400,000)        401,684 
 
  MUNICIPAL BONDS—.6%     
245  M  Tobacco Settlement Fin. Auth. West Virginia,     
         Series “A”, 7.467%, 2047 (cost $245,000)        218,868 
 
  PASS THROUGH CERTIFICATES—.4%   
  Transportation     
52  M  American Airlines, Inc., 7.377%, 2019    27,970 
154  M    Continental Airlines, Inc., 8.388%, 2020        133,990 
 
Total Value of Pass Through Certificates (cost $206,546)        161,960 
 
  SHORT-TERM INVESTMENTS—2.0%     
  Money Market Fund     
760  M    First Investors Cash Reserve Fund, 2.24% (cost $760,000) (b)      760,000 
 
Total Value of Investments (cost $39,232,630)  98.4  %  38,092,117 
Other Assets, Less Liabilities  1.6       620,932 
 
Net Assets       100.0  %     $38,713,049 

(a)  Security exempt from registration under Rule 144A of Securities Act of 1933 (see Note 5). 
(b)  Affiliated unregistered money market fund available only to First Investors funds and certain 
 accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
 at June 30, 2008 (see Note 3). 

46  See notes to financial statements 

Fund Expenses
SELECT GROWTH FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $865.41  $4.92 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,019.59  $5.32 

*  Expenses are equal to the annualized expense ratio of 1.06%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
TOP SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

47 

Portfolio of Investments
SELECT GROWTH FUND
June 30, 2008

 
 
 
Shares       Security    Value 
 
   COMMON STOCKS—96.1%     
   Consumer Discretionary—11.3%     
11,000  *  Aeropostale, Inc.   $344,630 
5,100   Autoliv, Inc.    237,762 
8,300  *  Fossil, Inc.    241,281 
8,300   Guess?, Inc.    310,835 
5,900       Omnicom Group, Inc.    264,792 
 
          1,399,300 
 
   Consumer Staples—5.5%     
5,400   Church & Dwight Company, Inc.    304,290 
5,400       Colgate-Palmolive Company    373,140 
 
          677,430 
 
   Energy—12.4%     
2,900   ExxonMobil Corporation    255,577 
1,355   Hess Corporation    170,987 
4,600  *  National-Oilwell Varco, Inc.    408,112 
3,395   Noble Energy, Inc.    341,401 
4,000       Occidental Petroleum Corporation    359,440 
 
          1,535,517 
 
   Financials—8.1%     
4,700   Assurant, Inc.    310,012 
6,000   Bank of New York Mellon Corporation    226,980 
7,300  *   Nasdaq OMX Group, Inc.    193,815 
3,900       Northern Trust Corporation    267,423 
 
          998,230 
 
   Health Care—17.0%     
4,000   Becton, Dickinson & Company    325,200 
5,100  *  Express Scripts, Inc.    319,872 
5,900  *  Gilead Sciences, Inc.    312,405 
1,095  *  Intuitive Surgical, Inc.    294,993 
7,100  *  OSI Pharmaceuticals, Inc.    293,372 
8,800   Perrigo Company    279,576 
5,400    * Varian Medical Systems, Inc.    279,990 
 
          2,105,408 

48 

 
 
 
 
Shares       Security        Value 
 
   Industrials—13.9%       
5,300  *  AGCO Corporation      $277,773 
3,600   Danaher Corporation      278,280 
6,300   Dover Corporation      304,731 
3,800  *  Jacobs Engineering Group, Inc.      306,660 
9,400   Manitowoc Company, Inc.      305,782 
3,900       United Technologies Corporation        240,630 
 
              1,713,856 
 
   Information Technology—25.7%       
6,400   Amphenol Corporation – Class “A”      287,232 
8,700  *  BMC Software, Inc.      313,200 
1,410   FactSet Research Systems, Inc.      79,468 
540  *  Google, Inc. – Class “A”      284,267 
6,400   Harris Corporation      323,136 
7,800   Hewlett-Packard Company      344,838 
2,600   International Business Machines Corporation      308,178 
10,900   Microsoft Corporation      299,859 
18,600  *  Oracle Corporation      390,600 
17,500  *  Parametric Technology Corporation      291,725 
8,900       Texas Instruments, Inc.         250,624 
 
              3,173,127 
 
   Materials—2.2%       
5,000       Sigma-Aldrich Corporation        269,300 
 
Total Value of Common Stocks (cost $11,789,135)  96.1  %  11,872,168 
Other Assets, Less Liabilities  3.9      479,002 
 
Net Assets        100.0  %      $12,351,170 

*  Non-income producing 

See notes to financial statements  49 

Fund Expenses
TARGET MATURITY 2010 FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $1,023.20  $3.92 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.98  $3.92 

*  Expenses are equal to the annualized expense ratio of .78%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses paid 
 during the period are net of expenses waived. 

Portfolio Composition
BY SECTOR


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

50 

Portfolio of Investments
TARGET MATURITY 2010 FUND
June 30, 2008

 
 
 
 
Principal      Effective   
Amount      Security      Yield  † Value 
 
  U.S. GOVERNMENT AGENCY ZERO COUPON   
  OBLIGATIONS—68.1%       
  Agency For International Development–Israel:     
$1,303  M     8/15/2010         2.76  %  $1,229,353 
495  M     9/15/2010         2.77  465,817 
  Fannie Mae:       
1,260  M     8/7/2010         2.92  1,185,380 
100  M     10/8/2010         2.95  93,563 
800  M     12/15/2010         3.07  742,283 
1,100  M  Freddie Mac, 9/15/2010         2.93  1,031,539 
500  M  Government Trust Certificate–Israel Trust, 11/15/2010       2.87  467,318 
2,031  M  Government Trust Certificate–Turkey Trust, 11/15/2010       2.87  1,898,244 
1,600  M  Resolution Funding Corporation, 1/15/2011         2.79  1,491,344 
1,250  M    Tennessee Valley Authority, 11/1/2010            3.03    1,165,190 
 
Total Value of U.S. Government Agency Zero Coupon       
   Obligations (cost $9,033,669)           9,770,031 
 
  U.S. GOVERNMENT ZERO COUPON       
  OBLIGATIONS—31.6%       
4,830   M    U.S. Treasury Strips, 11/15/2010 (cost $4,126,900)         2.62    4,540,775 
 
Total Value of Investments (cost $13,160,569)  99.7  %    14,310,806 
Other Assets, Less Liabilities  .3         38,431 
 
Net Assets         100.0  %       $14,349,237 

†  The effective yields shown for the zero coupon obligations are the effective yields at 
 June 30, 2008. 

See notes to financial statements  51 

Fund Expenses
TARGET MATURITY 2015 FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $1,027.43  $3.48 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,021.43  $3.47 

*  Expenses are equal to the annualized expense ratio of .69%, multiplied by the average account 
 value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses paid 
 during the period are net of expenses waived. 

Portfolio Composition
BY SECTOR


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

52 

Portfolio of Investments
TARGET MATURITY 2015 FUND
June 30, 2008

 
 
 
 
Principal      Effective   
Amount      Security      Yield  † Value 
 
  U.S. GOVERNMENT AGENCY ZERO COUPON   
  OBLIGATIONS—52.8%       
  Agency For International Development–Israel:     
$ 698  M     9/15/2015         4.10  %  $ 521,088 
2,784  M     11/15/2015         4.14  2,057,418 
300  M     3/15/2016         4.17  218,263 
  Fannie Mae:       
243  M     8/12/2015         4.20  180,803 
600  M     9/23/2015         4.27  442,045 
4,643  M     11/15/2015         4.31  3,389,632 
650   M  Federal Judiciary Office Building, 2/15/2015         3.98  500,694 
  Freddie Mac:       
550  M     3/15/2015         4.15  417,513 
930  M     9/15/2015         4.27  686,090 
830  M     9/15/2015         4.26  612,342 
625  M     1/15/2016         4.31  453,214 
210  M  Government Trust Certificate–Turkey Trust, 5/15/2015       4.14  158,460 
200  M  International Bank for Reconstruction &       
       Development, 2/15/2015         4.29  150,992 
  Resolution Funding Corporation:       
4,244  M     10/15/2015         4.03  3,173,451 
320  M     1/15/2016         4.05  236,434 
2,000  M    Tennessee Valley Authority, 11/1/2015           4.36    1,457,752 
 
Total Value of U.S. Government Agency Zero Coupon       
   Obligations (cost $13,416,793)          14,656,191 
 
  U.S. GOVERNMENT ZERO COUPON       
  OBLIGATIONS—46.7%       
17,275   M    U.S. Treasury Strips, 11/15/2015 (cost $11,780,715)         3.91    12,984,909 
 
Total Value of Investments (cost $25,197,508)  99.5 %    27,641,100 
Other Assets, Less Liabilities  .5        137,744 
 
Net Assets         100.0 %        $27,778,844 

† The effective yields shown for the zero coupon obligations are the effective yields at 
 June 30, 2008. 

See notes to financial statements  53 

Fund Expenses
VALUE FUND

The examples below show the ongoing costs (in dollars) of investing in your Fund and will help you in comparing these costs with costs of other mutual funds. Please refer to page 3 for a detailed explanation of the information presented in these examples.

  Beginning  Ending   
  Account  Account  Expenses Paid 
  Value  Value  During Period 
  (1/1/08)  (6/30/08)  (1/1/08–6/30/08)* 
Expense Examples       
Actual  $1,000.00  $895.70  $4.01 
Hypothetical       
   (5% annual return before expenses)  $1,000.00  $1,020.63  $4.27 

*  Expenses are equal to the annualized expense ratio of .85%, multiplied by the average account 
   value over the period, multiplied by 182/366 (to reflect the one-half year period). 

Portfolio Composition
TOP TEN SECTORS


Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2008, and are 
based on the total value of investments. 

54 

Portfolio of Investments
VALUE FUND
June 30, 2008

 
 
 
 
Shares      Security    Value 
 
  COMMON STOCKS—96.5%     
  Consumer Discretionary—13.2%     
27,400  bebe stores, inc.    $263,314 
5,500  Best Buy Company, Inc.    217,800 
13,300  Bob Evans Farms, Inc.    380,380 
12,200  Carnival Corporation    402,112 
8,700  CBS Corporation – Class “B”    169,563 
20,700  Cinemark Holdings, Inc.    270,342 
17,900  Clear Channel Communications, Inc.    630,080 
28,600  Family Dollar Stores, Inc.    570,284 
12,700  Gannett Company, Inc.    275,209 
10,900  Genuine Parts Company    432,512 
14,000  H&R Block, Inc.    299,600 
21,100  Home Depot, Inc.    494,162 
8,000  J.C. Penney Company, Inc.    290,320 
8,300  Kenneth Cole Productions, Inc. – Class “A”    105,410 
9,680  Lee Enterprises, Inc.    38,623 
23,700  Leggett & Platt, Inc.    397,449 
11,100  Lowe’s Companies, Inc.    230,325 
3,800  Magna International, Inc. – Class “A”    225,112 
20,100  Marine Products Corporation    132,660 
14,200  McDonald’s Corporation    798,324 
22,300  New York Times Company – Class “A”    343,197 
11,000  Newell Rubbermaid, Inc.    184,690 
25,800  Pearson PLC (ADR)    316,050 
24,600  Ruby Tuesday, Inc.    132,840 
17,000  Staples, Inc.    403,750 
13,500  Tiffany & Company    550,125 
43,700  Time Warner, Inc.    646,760 
28,000  Walt Disney Company    873,600 
8,580      Wyndham Worldwide Corporation    153,668 
 
          10,228,261 
 
  Consumer Staples—15.4%     
20,300  Anheuser-Busch Companies, Inc.    1,261,036 
17,600  Avon Products, Inc.    633,952 
3,900  B&G Foods, Inc. – Class “A”    36,426 
18,400  Coca-Cola Company    956,432 
13,400  ConAgra Foods, Inc.    258,352 
6,119  Del Monte Foods Company    43,445 
10,200  Diageo PLC (ADR)    753,474 
7,900      Estee Lauder Companies, Inc. – Class “A”    366,955 

55 

Portfolio of Investments (continued)
VALUE FUND
June 30, 2008

 
 
 
 
Shares      Security    Value 
 
  Consumer Staples (continued)     
7,600  Fomento Economico Mexicano SA de CV (ADR)    $345,876 
7,059  General Mills, Inc.    428,975 
12,100  H.J. Heinz Company    578,985 
20,100  Hershey Company    658,878 
13,100  Kimberly-Clark Corporation    783,118 
35,300  Kraft Foods, Inc. – Class “A”    1,004,285 
15,000  PepsiAmericas, Inc.    296,700 
12,300  Philip Morris International, Inc.    607,497 
6,700  Ruddick Corporation    229,877 
37,500  Sara Lee Corporation    459,375 
9,000  UST, Inc.    491,490 
16,700  Walgreen Company    542,917 
21,000      Wal-Mart Stores, Inc.    1,180,200 
 
          11,918,245 
 
  Energy—10.5%     
10,800  Anadarko Petroleum Corporation    808,272 
10,800  BP PLC (ADR)    751,356 
12,812  Chevron Corporation    1,270,053 
12,900  ConocoPhillips    1,217,631 
6,600  Diamond Offshore Drilling, Inc.    918,324 
1,900  Hess Corporation    239,761 
22,400  Marathon Oil Corporation    1,161,888 
11,700  Royal Dutch Shell PLC – Class “A” (ADR)    956,007 
11,600      Tidewater, Inc.    754,348 
 
          8,077,640 
 
  Financials—18.0%     
4,000  ACE, Ltd.    220,360 
8,300  Allstate Corporation    378,397 
9,700  Aon Corporation    445,618 
10,000  Aspen Insurance Holdings, Ltd.    236,700 
8,800  Assured Guaranty, Ltd.    158,312 
34,800  Bank Mutual Corporation    349,392 
20,055  Bank of America Corporation    478,713 
20,273  Bank of New York Mellon Corporation    766,928 
15,179  Brookfield Asset Management, Inc. – Class “A”    493,925 
5,594      Capital One Financial Corporation    212,628 

56 

 
 
 
 
Shares      Security    Value 
 
  Financials (continued)     
9,622  Chubb Corporation    $ 471,574 
12,422  Cincinnati Financial Corporation    315,519 
21,600  Citigroup, Inc.    362,016 
10,000  Comerica, Inc.    256,300 
7,100  EMC Insurance Group, Inc.    170,968 
8,600  Erie Indemnity Company – Class “A”    396,890 
19,100  First Potomac Realty Trust (REIT)    291,084 
19,100  Hudson City Bancorp, Inc.    318,588 
16,100  Invesco, Ltd.    386,078 
42,800  Investors Real Estate Trust (REIT)    408,312 
21,700  JPMorgan Chase & Company    744,527 
12,800  KeyCorp    140,544 
10,632  Lincoln National Corporation    481,842 
10,700  Merrill Lynch & Company, Inc.    339,297 
11,900  Morgan Stanley    429,233 
25,700  NewAlliance Bancshares, Inc.    320,736 
3,827  One Liberty Properties, Inc. (REIT)    62,418 
26,400  People’s United Financial, Inc.    411,840 
10,300  Plum Creek Timber Company, Inc. (REIT)    439,913 
9,400  PNC Financial Services Group, Inc.    536,740 
10,700  Protective Life Corporation    407,135 
25,328  Regions Financial Corporation    276,328 
6,382  State Street Corporation    408,384 
9,000  SunTrust Banks, Inc.    325,980 
25,600  U-Store-It Trust (REIT)    305,920 
14,139  Wachovia Corporation    219,579 
7,400  Waddell & Reed Financial, Inc. – Class “A”    259,074 
21,300  Wells Fargo & Company    505,875 
21,700      Westfield Financial, Inc.    196,385 
 
          13,930,052 
 
  Health Care—6.0%     
15,700  Abbott Laboratories    831,629 
6,125  Covidien, Ltd.    293,326 
12,100  GlaxoSmithKline PLC (ADR)    535,062 
20,300  Johnson & Johnson    1,306,102 
10,900  Novartis AG (ADR)    599,936 
39,300  Pfizer, Inc.    686,571 
17,900      Schering-Plough Corporation     352,451 
 
           4,605,077 

57 

Portfolio of Investments (continued)
VALUE FUND
June 30, 2008

 
 
 
 
Shares      Security    Value 
 
  Industrials—10.5%     
8,100  3M Company    $563,679 
900  Alexander & Baldwin, Inc.    40,995 
12,400  Avery Dennison Corporation    544,732 
16,000  Dover Corporation    773,920 
8,200  General Dynamics Corporation    690,440 
32,200  General Electric Company    859,418 
14,400  Honeywell International, Inc.    724,032 
4,200  Hubbell, Inc. – Class “B”    167,454 
11,800  Illinois Tool Works, Inc.    560,618 
2,300  ITT Corporation    145,659 
8,170  Lawson Products, Inc.    202,453 
16,800  Masco Corporation    264,264 
6,500  Norfolk Southern Corporation    407,355 
14,500  Pitney Bowes, Inc.    494,450 
9,300  Textainer Group Holdings, Ltd.    181,629 
6,625  Tyco International, Ltd.    265,265 
10,000  United Parcel Service, Inc. – Class “B”    614,700 
31,400      Werner Enterprises, Inc.    583,412 
 
          8,084,475 
 
  Information Technology—6.9%     
16,300  Automatic Data Processing, Inc.    682,970 
16,600  AVX Corporation    187,746 
7,900  Bel Fuse, Inc. – Class “B”    195,209 
18,200  Hewlett-Packard Company    804,622 
12,700  Intel Corporation    272,796 
2,800  International Business Machines Corporation    331,884 
35,200  Methode Electronics, Inc.    367,840 
26,500  Microsoft Corporation    729,015 
14,450  Molex, Inc.    352,725 
28,700  Motorola, Inc.    210,658 
19,000  Nokia Corporation – Class “A” (ADR)    465,500 
8,400  Texas Instruments, Inc.    236,544 
7,725  Tyco Electronics, Ltd.    276,710 
7,500      Xilinx, Inc.    189,375 
 
          5,303,594 

58 

 
 
 
 
Shares      Security    Value 
 
  Materials—7.8%     
6,900  Air Products & Chemicals, Inc.    $682,134 
13,800  Alcoa, Inc.    491,556 
8,400  Bemis Company, Inc.    188,328 
6,900  Compass Minerals International, Inc.    555,864 
23,300  Dow Chemical Company    813,403 
22,300  DuPont (E.I.) de Nemours & Company    956,447 
15,700  Glatfelter    212,107 
10,100  Lubrizol Corporation    467,933 
11,600  MeadWestvaco Corporation    276,544 
16,270  Myers Industries, Inc.    132,601 
6,400  PPG Industries, Inc.    367,168 
33,200  Sappi, Ltd. (ADR)    394,748 
15,900      Sonoco Products Company    492,105 
 
          6,030,938 
 
  Telecommunication Services—3.5%     
30,010  AT&T, Inc.    1,011,037 
13,232  D&E Communications, Inc.    117,632 
4,730  Embarq Corporation    223,587 
5,600  Telephone & Data Systems, Inc.    264,712 
6,600  Telephone & Data Systems, Inc. – Special Shares    291,060 
21,918      Verizon Communications, Inc.    775,897 
 
          2,683,925 
 
  Utilities—4.7%     
4,450  American States Water Company    155,483 
7,000  Duke Energy Corporation    121,660 
6,700  FPL Group, Inc.    439,386 
2,400  Integrys Energy Group, Inc.    121,992 
17,000  MDU Resources Group, Inc.    592,620 
28,300  NiSource, Inc.    507,136 
9,200  ONEOK, Inc.    449,236 
10,100  Portland General Electric Company    227,452 
12,300  Southwest Gas Corporation    365,679 
11,100  United Utilities PLC (ADR)    303,308 
12,300      Vectren Corporation    383,883 
 
          3,667,835 
 
Total Value of Common Stocks (cost $64,817,850)    74,530,042 

59 

Portfolio of Investments (continued)
VALUE FUND
June 30, 2008

  
 
 
 
Shares or       
Principal       
Amount      Security        Value 
  PREFERRED STOCKS—.7%     
  Financials—.2%     
10,000      Citigroup Capital XVI , 6.45%, 2066 – Series “W”      $184,000 
 
  Telecommunication Services—.3%     
10,200      AT&T, Inc., 6.375%, 2056        255,102 
 
  Utilities—.2%     
7,400      Entergy Louisiana, LLC, 7.6%, 2032         184,778 
Total Value of Preferred Stocks (cost $693,082)        623,880 
 
  SHORT-TERM INVESTMENTS—2.9%   
  Money Market Fund     
         $2,270  M   First Investors Cash Reserve Fund, 2.24% (cost $2,270,000)*       2,270,000 
Total Value of Investments (cost $67,780,932)  100.1  %  77,423,922 
Excess of Liabilities Over Other Assets   (.1)      (147,591) 
 
Net Assets        100.0  %    $77,276,331 

* Affiliated unregistered money market fund available only to First Investors funds and certain 
 accounts managed by First Investors Management Company, Inc. Rate shown is the 7-day yield 
 at June 30, 2008 (see Note 3). 

Summary of Abbreviations: 
ADR  American Depositary Receipts 
REIT  Real Estate Investment Trust 

60  See notes to financial statements 

 

 

 

 

 

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61 

Statements of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

 
    CASH      GROWTH &   
  BLUE CHIP    MANAGEMENT    DISCOVERY    GOVERNMENT    INCOME    HIGH YIELD 
Assets             
Investments in securities:             
   Cost – Unaffiliated issuers  $107,415,267  $13,200,319  $127,291,258  $22,422,990  $216,721,861   $83,418,296  *
   Cost – Affiliated money market fund (Note 3)  825,000  —  4,695,000  —  790,000  3,085,000   
 
   Total cost of investments  $108,240,267  $13,200,319  $131,986,258  $22,422,990  $217,511,861  $86,503,296 
 
   Value – Unaffiliated issuers (Note 1A)  $143,949,179  $13,200,319  $136,039,677  $22,317,265  $217,612,979  $74,502,387  *
   Value – Affiliated money market fund (Note 3)  825,000  —  4,695,000  —  790,000  3,085,000 
 
   Total value of investments  144,774,179  13,200,319  140,734,677  22,317,265  218,402,979  77,587,387 
 
Cash  96,789  197,769  113,776  206,181  84,881  75,524 
Receivables:             
   Investment securities sold  205,214  —  789,072  —  512,957  — 
   Interest and dividends  189,651  42,109  63,248  104,264  295,015  1,431,178 
   Trust shares sold.  11  18,136  6,091  18,361  19,638  163 
   Other assets  12,633  684  11,911  1,373  19,424  9,694 
 
Total Assets  145,278,477  13,459,017  141,718,775  22,647,444  219,334,894  79,103,946 
 
Liabilities             
Payables:             
   Collateral for securities loaned (Note 1G)  —  —  —  —  —  4,561,754 
   Investment securities purchased  411,486  200,000  93,498  —  192,833  472,626 
   Trust shares redeemed  99,046  657  103,680  9,794  156,231  54,815 
Accrued advisory fees  96,498  4,857  95,245  11,395  147,927  47,854 
Accrued expenses  17,696  2,859  20,865  5,008  20,990  22,874 
 
Total Liabilities  624,726  208,373  313,288  26,197  517,981  5,159,923 
 
Net Assets  $144,653,751  $13,250,644  $141,405,487  $22,621,247  $218,816,913  $73,944,023 
 
Net Assets Consist of:             
Capital paid in  $135,851,401  $13,250,644  $128,795,924  $23,040,250  $219,894,106  $103,418,936 
Undistributed net investment income  1,163,229  —  466,406  489,520  1,641,434  2,768,020 
Accumulated net realized gain (loss) on investments  (28,894,791)  —  3,394,738  (802,798)  (3,609,745)  (23,327,024) 
Net unrealized appreciation (depreciation)             
   of investments  36,533,912  —  8,748,419  (105,725)  891,118  (8,915,909) 
 
Total  $144,653,751  $13,250,644  $141,405,487  $22,621,247  $218,816,913  $73,944,023 
 
Shares of beneficial interest outstanding (Note 2)  6,854,742  13,250,644  5,351,817  2,311,141  8,136,957  10,712,748 
 
Net asset value, offering and redemption price per share —             
   (Net assets divided by shares outstanding)  $ 21.10  $ 1.00  $ 26.42  $ 9.79  $ 26.89  $ 6.90 

*  Investments at cost and value include $4,561,754 of collateral for securities loaned (Note 1G). 

62  See notes to financial statements  63 

Statements of Assets and Liabilities
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

 
    INVESTMENT  SELECT  TARGET  TARGET   
  INTERNATIONAL    GRADE    GROWTH    MATURITY 2010    MATURITY 2015    VALUE 
Assets             
Investments in securities:             
   Cost – Unaffiliated issuers  $116,724,694  $38,472,630  $11,789,135  $13,160,569  $25,197,508  $65,510,932 
   Cost – Affiliated money market fund (Note 3)  200,000  760,000  —  —  —  2,270,000 
 
   Total cost of investments  $116,924,694  $39,232,630  $ 11,789,135  $13,160,569  $25,197,508   $67,780,932 
 
   Value – Unaffiliated issuers (Note 1A)  $132,505,484  $37,332,117  $ 11,872,168  $14,310,806  $27,641,100  $75,153,922 
   Value – Affiliated money market fund (Note 3)  200,000  760,000  —  —  —  2,270,000 
 
   Total value of investments  132,705,484  38,092,117  11,872,168  14,310,806  27,641,100  77,423,922 
 
Cash  130,379  98,342  485,087  47,051  224,869  77,915 
Receivables:             
   Investment securities sold  2,490,194  —  116,678  —  —  14,952 
   Interest and dividends  420,969  480,777  5,114  —  —  178,687 
   Trust shares sold.  31,246  84,509  15,655  213  385  29,973 
   Forward currency contracts (Note 6)  3,243  —  —  —  —  — 
   Other assets  10,399  2,574  854  913  1,685  6,571 
 
Total Assets  135,791,914  38,758,319  12,495,556  14,358,983  27,868,039  77,732,020 
 
Liabilities             
Payables:             
   Investment securities purchased  1,636,128  —  131,779  —  —  305,543 
   Trust shares redeemed  170,846  19,685  143  30  66,403  91,989 
   Foreign exchange contracts (Note 6)  1,195,206  —  —  —  —  — 
Accrued advisory fees  86,702  19,773  8,186  7,274  14,009  51,760 
Accrued expenses  20,237  5,812  4,278  2,442  8,783  6,397 
 
Total Liabilities  3,109,119  45,270  144,386  9,746  89,195  455,689 
 
Net Assets  $132,682,795  $38,713,049  $ 12,351,170  $14,349,237  $27,778,844  $77,276,331 
 
Net Assets Consist of:             
Capital paid in  $119,591,136  $41,110,873  $ 12,783,636  $12,766,962  $24,840,324  $72,425,358 
Undistributed net investment income (deficit)  1,609,123  486,955  (9,543)  401,352  561,527  1,053,136 
Accumulated net realized gain (loss) on investments  (3,121,101)  (1,744,266)  (505,956)  30,686  (66,599)  (5,845,153)
   and foreign security transactions             
Net unrealized appreciation (depreciation) in value             
   of investments and foreign security transactions  14,603,637  (1,140,513)  83,033  1,150,237  2,443,592  9,642,990 
 
Total  $132,682,795  $38,713,049  $ 12,351,170  $14,349,237  $27,778,844  $77,276,331 
 
Shares of beneficial interest outstanding (Note 2)  6,977,800  3,766,698  1,379,239  1,048,830  1,879,713  5,262,591 
 
Net asset value, offering and redemption price per share —             
   (Net assets divided by shares outstanding)  $ 19.01  $10.28   $8.96   $13.68  $ 14.78  $14.68 

64  See notes to financial statements  65 

Statements of Operations
FIRST INVESTORS LIFE SERIES FUNDS
Six Months Ended June 30, 2008

 
    CASH      GROWTH &   
  BLUE CHIP     MANAGEMENT    DISCOVERY    GOVERNMENT    INCOME    HIGH YIELD 
Investment Income             
Income:             
   Interest.  $14,626  $223,418  $ 82,274  $574,933  $277  $3,132,246 
   Dividends  1,781,469  (a)  —  967,796  —  2,603,785  (b)  14,510 
   Dividends from affiliate (Note 3)  7,297  —  21,925  —  879  9,935 
   Securities lending income  —  —  —  —  —  43,606 
 
Total income  1,803,392  223,418  1,071,995  574,933  2,604,941  3,200,297 
 
Expenses (Notes 1 and 4):             
   Advisory fees  586,551  52,812  554,509  81,657  883,016  281,658 
   Professional fees.  19,979  6,278  18,224  8,309  23,601  12,632 
   Custodian fees and expenses  7,079  3,639  5,487  4,898  11,373  6,057 
   Reports and notices to shareholders  12,295  1,639  11,264  2,214  18,015  6,418 
   Registration fees  1,342  1,339  1,347  1,341  1,342  1,392 
   Trustees’ fees  4,459  386  4,164  605  6,674  2,116 
   Other expenses  15,644  1,216  12,929  5,520  21,664  10,635 
 
Total expenses  647,349  67,309  607,924  104,544  965,685  320,908 
Less: Expenses waived  —  (17,250)  —  (16,331)  —  — 
Expenses paid indirectly.  (7,275)  (750)  (2,379)  (2,823)  (2,254)  (2,517) 
 
Net expenses  640,074  49,309  605,545  85,390  963,431  318,391 
 
Net investment income.  1,163,318  174,109  466,450  489,543  1,641,510  2,881,906 
 
Realized and Unrealized Gain (Loss) on Investments             
   (Note 3):             
Net realized gain (loss) on investments  (1,220,030)  —  3,426,989  63,036  (3,530,346)  (1,827,005) 
 
Net unrealized depreciation of investments  (20,519,502)  —  (18,650,463)  (228,345)  (28,014,799)  (2,145,248) 
 
Net loss on investments  (21,739,532)  —  (15,223,474)  (165,309)  (31,545,145)  (3,972,253) 
Net Increase (Decrease) in Net Assets             
Resulting from Operations  $(20,576,214)  $174,109  $(14,757,024)  $324,234  $(29,903,635)  $(1,090,347) 

(a) Net of $11,441 foreign taxes withheld 
(b) Net of $24,637 foreign taxes withheld 

66  See notes to financial statements  67 

Statements of Operations
FIRST INVESTORS LIFE SERIES FUNDS
Six Months Ended June 30, 2008

 
    INVESTMENT  SELECT  TARGET  TARGET   
  INTERNATIONAL    GRADE    GROWTH    MATURITY 2010    MATURITY 2015    VALUE 
Investment Income             
Income:             
   Interest.  $84,996  $1,019,761  $2,674  $426,328  $657,000  $25,583 
   Dividends  1,825,244  (c)  134,315  51,968  —  —  1,235,623  (d) 
   Dividends from affiliate (Note 3)  3,437  2,127  —  —  —  10,178 
 
Total income  1,913,677  1,156,203  54,642  426,328  657,000  1,271,384 
 
Expenses (Notes 1 and 4):             
   Advisory fees  519,710  147,631  45,833  55,620  104,770  311,665 
   Professional fees.  25,958  8,798  5,221  5,842  4,976  12,530 
   Custodian fees and expenses  60,160  5,227  359  1,348  840  7,294 
   Reports and notices to shareholders  10,765  3,729  10,508  1,651  2,534  7,118 
   Registration fees  1,323  1,342  317  1,336  139  139 
   Trustees’ fees  3,937  1,105  420  417  782  2,361 
   Other expenses  15,180  8,322  2,003  2,427  3,249  12,344 
 
Total expenses  637,033  176,154  64,661  68,641  117,290  353,451 
Less: Expenses waived  —  (29,526)  —  (11,124)  (20,954)  — 
      Expenses paid indirectly.  (341)  (3,203)  (488)  (1,378)  (898)  (7,250) 
 
Net expenses  636,692  143,425  64,173  56,139  95,438  346,201 
 
Net investment income (loss)  1,276,985  1,012,778  (9,531)  370,189  561,562  925,183 
 
Realized and Unrealized Gain (Loss) on Investments             
   and Foreign Currency Transactions (Note 3):             
Net realized gain (loss) on:             
   Investments  (2,946,630)  139,175  (499,364)  61,984  21,627  (987,992) 
   Foreign currency transactions  (67,860)  —  —  —  —  — 
 
Net realized gain (loss) on investments and foreign             
   currency transactions  (3,014,490)  139,175  (499,364)  61,984  21,627  (987,992) 
Net unrealized appreciation (depreciation) of:             
   Investments  (16,425,803)  (1,478,809)  (1,265,203)  (72,765)  157,878  (9,169,769) 
   Foreign currency transactions  (1,075,647)  —  —  —  —  — 
 
Net unrealized appreciation (depreciation) on investments             
   and foreign currency transactions  (17,501,450)  (1,478,809)  (1,265,203)  (72,765)  157,878  (9,169,769) 
Net gain (loss) on investments and foreign             
   currency transactions  (20,515,940)  (1,339,634)  (1,764,567)  (10,781)  179,505  (10,157,761) 
 
Net Increase (Decrease) in Net Assets Resulting             
   from Operations  $(19,238,955)  $(326,856)  $(1,774,098)  $359,408  $741,067  $(9,232,578) 

(c) Net of $244,905 foreign taxes withheld 
(d) Net of $8,295 foreign taxes withheld 

68  See notes to financial statements  69 

Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUNDS

  BLUE CHIP  CASH MANAGEMENT  DISCOVERY  GOVERNMENT 
  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 
     6/30/08     12/31/07     6/30/08    12/31/07    6/30/08    12/31/07     6/30/08    12/31/ 
Increase (Decrease) in Net Assets From Operations                 
   Net investment income  $ 1,163,318  $ 2,189,331  $ 174,109  $ 315,057  $ 466,450  $ 587,284  $ 489,543  $ 992,70 
   Net realized gain (loss) on investments  (1,220,030)  6,340,170  —  —  3,426,989  7,630,728  63,036  (66,15 
   Net unrealized appreciation (depreciation)                 
       of investments  (20,519,502)  (856,310)  —  —  (18,650,463)  2,247,221  (228,345)  356,50 
       Net increase (decrease) in net assets resulting                 
              from operations  (20,576,214)  7,673,191  174,109  315,057  (14,757,024)  10,465,233  324,234  1,283,05 
 
Distributions to Shareholders                 
   Net investment income  (2,189,370)  (1,975,764)  (174,109)  (315,057)  (587,286)  (280,470)  (941,789)  (1,016,15 
   Net realized gains  —  —  —  —  (7,438,838)  (13,314,932)  —   
 
       Total distributions.  (2,189,370)  (1,975,764)  (174,109)  (315,057)  (8,026,124)  (13,595,402)  (941,789)  (1,016,15 
 
Trust Share Transactions *                 
       Proceeds from shares sold  1,088,057  2,951,951  3,913,585  14,080,221  1,402,803  3,849,854  2,595,936  2,610,47 
       Reinvestment of distributions.  2,189,370  1,975,764  174,109  315,057  8,026,124  13,595,402  941,789  1,016,15 
       Cost of shares redeemed  (8,523,303)  (19,082,076)  (5,905,612)  (6,260,271)  (6,265,582)  (11,735,817)  (1,282,079)  (2,890,35 
 
       Net increase (decrease) from trust share transactions  (5,245,876)  (14,154,361)  (1,817,918)  8,135,007  3,163,345  5,709,439  2,255,646  736,27 
 
       Net increase (decrease) in net assets  (28,011,460)  (8,456,934)  (1,817,918)  8,135,007  (19,619,803)  2,579,270  1,638,091  1,003,16 
 
Net Assets                 
   Beginning of period  172,665,211  181,122,145  15,068,562  6,933,555  161,025,290  158,446,020  20,983,156  19,979,98 
 
   End of period †  $ 144,653,751  $ 172,665,211  $ 13,250,644  $ 15,068,562  $ 141,405,487  $ 161,025,290  $ 22,621,247  $ 20,983,15 
 
† Includes undistributed net investment income of  $ 1,163,229  $ 2,189,282  $ —  $ —  $ 466,406  $ 587,242  $ 489,520  $ 941,76 
 
* Trust Shares Issued and Redeemed                 
   Sold  48,239  121,415  3,913,585  14,080,221  50,447  123,970  261,299  267,22 
   Issued for distributions reinvested.  99,472  85,642  174,109  315,057  298,480  460,862  95,613  106,18 
   Redeemed  (378,654)  (780,475)  (5,905,612)  (6,260,271)  (225,613)  (378,136)  (128,469)  (296,29 
 
       Net increase (decrease) in trust shares outstanding  (230,943)  (573,418)  (1,817,918)  8,135,007  123,314  206,696  228,443  77,11 

70  See notes to financial statements  71 

Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUNDS

  GROWTH & INCOME  HIGH YIELD  INTERNATIONAL  INVESTMENT GRADE 
  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 
    6/30/08    12/31/07      6/30/08    12/31/07      6/30/08    12/31/07      6/30/08    12/31/ 
Increase (Decrease) in Net Assets From Operations                 
   Net investment income  $ 1,641,510  $ 3,142,316  $ 2,881,906  $ 5,049,444  $ 1,276,985  $ 1,842,378  $ 1,012,778  $ 1,876,82 
   Net realized gain (loss) on investments and foreign                 
       currency transactions  (3,530,346)  17,294,553  (1,827,005)  (394,309)  (3,014,490)  16,690,535  139,175  67,33 
   Net unrealized appreciation (depreciation) of investments                 
       and foreign currency transactions  (28,014,799)  (14,694,507)  (2,145,248)  (3,943,572)  (17,501,450)  8,515,441  (1,478,809)  84,02 
 
       Net increase (decrease) in net assets resulting                 
              from operations  (29,903,635)  5,742,362  (1,090,347)  711,563  (19,238,955)  27,048,354  (326,856)  2,028,19 
 
Distributions to Shareholders                 
   Net investment income  (3,140,040)  (1,392,478)  (5,998,094)  (5,214,980)  (241,951)  (4,361,060)  (2,055,553)  (2,023,88 
   Net realized gains  (17,037,484)  (37,602,922)  —  —  (16,470,165)  (17,736,172)  —   
 
       Total distributions.  (20,177,524)  (38,995,400)  (5,998,094)  (5,214,980)  (16,712,116)  (22,097,232)  (2,055,553)  (2,023,88 
 
Trust Share Transactions *                 
       Proceeds from shares sold  1,932,188  5,908,951  856,956  2,528,285  2,517,855  6,868,157  2,113,670  4,296,66 
       Value of shares issued for acquisition**  —  —  —  13,341,374  —  —  —   
       Reinvestment of distributions.  20,177,524  38,995,400  5,998,094  5,214,980  16,712,116  22,097,232  2,055,553  2,023,88 
       Cost of shares redeemed  (10,844,822)  (21,701,178)  (4,362,302)  (6,419,407)  (5,030,058)  (8,889,297)  (2,361,583)  (4,068,03 
 
       Net increase from trust share transactions  11,264,890  23,203,173  2,492,748  14,665,232  14,199,913  20,076,092  1,807,640  2,252,52 
 
       Net increase (decrease) in net assets  (38,816,269)  (10,049,865)  (4,595,693)  10,161,815  (21,751,158)  25,027,214  (574,769)  2,256,82 
 
Net Assets                 
   Beginning of period  257,633,182  267,683,047  78,539,716  68,377,901  154,433,953  129,406,739  39,287,818  37,030,98 
 
   End of period †  $ 218,816,913  $ 257,633,182  $ 73,944,023  $ 78,539,716  $ 132,682,795  $ 154,433,953  $ 38,713,049  $ 39,287,81 
 
† Includes undistributed net investment income of  $ 1,641,434  $ 3,139,964  $ 2,768,020  $ 5,884,208  $ 1,609,123  $ 574,089  $ 486,955  $ 1,529,78 
 
* Trust Shares Issued and Redeemed                 
   Sold  66,319  168,508  120,869  323,450  122,342  299,283  198,412  402,06 
   Issued for acquisition**  —  —  —  1,747,119  —  —  —   
   Issued for distributions reinvested.  721,657  1,188,884  882,073  675,515  847,900  1,078,440  194,103  192,02 
   Redeemed  (367,572)  (618,484)  (611,108)  (823,154)  (243,780)  (388,835)  (222,027)  (381,43 
 
       Net increase in trust shares outstanding  420,404  738,908  391,834  1,922,930  726,462  988,888  170,488  212,64 

** See Note 8. 

72  See notes to financial statements  73 

Statements of Changes in Net Assets
FIRST INVESTORS LIFE SERIES FUNDS

  SELECT GROWTH  TARGET MATURITY 2010  TARGET MATURITY 2015  VALUE
  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 to  1/1/08 to  1/1/07 
    6/30/08    12/31/07     6/30/08    12/31/07     6/30/08    12/31/07     6/30/08    12/31/ 
Increase (Decrease) in Net Assets From Operations                 
   Net investment income (loss)  $ (9,531)  $ 18,113  $ 370,189  $ 730,766  $ 561,562  $ 1,064,266  $ 925,183  $ 1,699,21 
   Net realized gain (loss) on investments  (499,364)  1,649,616  61,984  49,639  21,627  (13,417)  (987,992)  4,991,66 
   Net unrealized appreciation (depreciation)                 
       of investments  (1,265,203)  (375,281)  (72,765)  303,684  157,878  1,277,197  (9,169,769)  (7,193,54 
       Net increase (decrease) in net assets resulting                 
              from operations  (1,774,098)  1,292,448  359,408  1,084,089  741,067  2,328,046  (9,232,578)  (502,66 
Distributions to Shareholders                 
   Net investment income  (18,122)  (87,643)  (730,774)  (761,230)  (1,064,287)  (978,165)  (1,535,490)  (1,493,87 
   Net realized gains  (113,779)  —  (47,611)  —  —  —  —   
 
        Total distributions.  (131,901)  (87,643)  (778,385)  (761,230)  (1,064,287)  (978,165)  (1,535,490)  (1,493,87 
 
Trust Share Transactions*                 
       Proceeds from shares sold  1,733,988  1,234,769  476,917  1,969,668  1,776,527  3,537,892  1,572,727  5,174,14 
     Reinvestment of distributions.  131,901  87,643  778,385  761,230  1,064,287  978,165  1,535,490  1,493,87 
       Cost of shares redeemed  (347,866)  (1,523,498)  (1,334,052)  (2,352,313)  (1,909,567)  (2,539,118)  (6,322,407)  (7,646,28 
 
       Net increase (decrease) from trust share transactions  1,518,023  (201,086)  (78,750)  378,585  931,247  1,976,939  (3,214,190)  (978,26 
 
       Net increase (decrease) in net assets  (387,976)  1,003,719  (497,727)  701,444  608,027  3,326,820  (13,982,258)  (2,974,80 
 
Net Assets                 
   Beginning of period  12,739,146  11,735,427  14,846,964  14,145,520  27,170,817  23,843,997  91,258,589  94,233,39 
 
   End of period †  $ 12,351,170  $ 12,739,146  $ 14,349,237  $ 14,846,964  $ 27,778,844  $ 27,170,817  $ 77,276,331  $ 91,258,58 
 
† Includes undistributed net investment income (deficit) of  $ (9,543)  $ 18,110  $ 401,352  $761,937  $ 561,527  $ 1,064,251  $ 1,053,136  $ 1,663,44 
 
* Trust Shares Issued and Redeemed                 
       Sold  185,739  121,487  33,744  142,072  116,779  248,330  101,961  298,07 
       Issued for distributions reinvested  14,463  9,444  55,999  57,756  70,623  70,473  101,352  88,55 
       Redeemed.  (37,154)  (153,539)  (94,879)  (173,848)  (125,878)  (181,296)  (405,328)  (439,10 
 
       Net increase (decrease) in trust shares outstanding  163,048  (22,608)  (5,136)  25,980  61,524  137,507  (202,015)  (52,48 

74  See notes to financial statements  75 

Notes to Financial Statements
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

1. Significant Accounting Policies—First Investors Life Series Funds, a Delaware statutory trust (“the Trust”), is registered under the Investment Company Act of 1940 (“the 1940 Act”) as a diversified, open-end management investment company. The Trust operates as a series fund, issuing shares of beneficial interest in the Blue Chip Fund, Cash Management Fund, Discovery Fund, Government Fund, Growth & Income Fund, High Yield Fund, International Fund, Investment Grade Fund, Select Growth Fund (formerly Focused Equity Fund), Target Maturity 2010 Fund, Target Maturity 2015 Fund and Value Fund (each a “Fund”, collectively, “the Funds”), and accounts separately for the assets, liabilities and operations of each Fund. The objective of each Fund is as follows:

Blue Chip Fund seeks high total investment return.

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.

Government Fund seeks to achieve a significant level of current income which is consistent with security and liquidity of principal.

Growth & Income Fund seeks long-term growth of capital and current income.

High Yield Fund seeks high current income.

International Fund primarily seeks long-term capital growth.

Investment Grade Fund seeks to generate a maximum level of income consistent with investment in investment grade debt securities.

Select Growth Fund seeks long-term growth of capital.

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 based on quotes furnished by a market maker for such securities.

76 

Securities may also be priced by a pricing service approved by the Trusts’ Board of Trustees (the “Board”). The pricing service considers security type, rating, market condition and yield data as well as market quotations, prices provided by market makers and other available information in determining value. Short-term debt securities that mature in 60 days or less are valued at amortized cost.

The Funds monitor for significant events occurring after the close of foreign markets but prior to the close of trading on the New York Stock Exchange that could have a material impact on the value of any foreign securities that are held by the Funds. Examples of such events include natural disasters, political events and issuer-specific developments. If the Valuation Committee decides that such events warrant using fair value estimates for foreign securities, it will take such events into consideration in determining the fair values of such securities. If market quotations or prices are not readily available or determined to be unreliable, the securities will be valued at fair value as determined in good faith pursuant to procedures adopted by the Board. The Funds also use a pricing service to fair value foreign securities in the event that fluctuation in U.S. securities markets exceed a predetermined level. For valuation purposes, where applicable, quotations of foreign securities in foreign currency are translated to U.S. dollar equivalents using the foreign exchange quotation in effect. At June 30, 2008, the High Yield Fund held six securities that were fair valued by the Valuation Committee with an aggregate value of $329,195 representing .4% of the Fund’s net assets, the International Fund held five securities that were fair valued by the Valuation Committee with an aggregate value of $6,591,583 representing 5.0% of the Fund’s net assets.

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 market value at maturity is amortized on a straight-line basis over the remaining life of the instrument. The effect of changes in the market value of a security as a result of fluctuating interest rates is not taken into account and thus the amortized cost method of valuation may result in the value of a security being higher or lower than its actual market value.

Adoption of Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”) — In September 2006, the Financial Accounting Standards Board issued FAS 157 effective for fiscal years beginning after November 15, 2007. This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. The Funds have adopted FAS 157 as of January 1, 2008.

77 

Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

The three levels of the fair value hierarchy under FAS 157 are described below:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The summary of inputs used to value each Fund’s net assets as of June 30, 2008 is as follows:

      Level 2   
      Other  Level 3 
    Level 1  Significant  Significant 
    Quoted  Observable  Unobservable 
Fund  Total  Prices  Inputs  Inputs 
Blue Chip  $144,774,179  $143,949,179  $ 825,000  $  — 
Cash Management  13,200,319  —  13,200,319  — 
Discovery  140,734,677  136,039,677  4,695,000  — 
Government  22,317,265  —  22,317,265  — 
Growth & Income  218,402,979  217,612,979  790,000  — 
High Yield  77,587,387  1,381,028  75,877,164  329,195 
International  132,705,484  125,913,901  6,791,583  — 
Investment Grade  38,092,117  3,158,600  34,933,517  — 
Select Growth  11,872,168  11,872,168  —  — 
Target Maturity 2010  14,310,806  —  14,310,806  — 
Target Maturity 2015  27,641,100  —  27,641,100  — 
Value  77,423,922  75,153,922  2,270,000  — 

The following is a reconciliaton of Fund investments valued using Level 3 inputs for the period:

Balance, December 31, 2007  $329,316 
Net purchases (sales)  (95) 
Change in unrealized appreciation (depreciation)  (26) 
Realized gain (loss)  — 
Transfer in and/or out of Level 3  — 
Balance, June 30, 2008  $329,195 

78 

B. Federal Income Tax—No provision has been made for federal income taxes on net income or capital gains since it is the policy of each Fund to continue to comply with the special provisions of the Internal Revenue Code applicable to investment companies, and to make sufficient distributions of income and capital gains (in excess of any available capital loss carryovers), to relieve each Fund from all, or substantially all, federal income taxes. At December 31, 2007, capital loss carryovers were as follows:

  Year Capital Loss Carryovers Expire
Fund  Total  2008  2009  2010  2011  2012  2013  2014  2015 
Blue Chip   $24,609,249  $—   $—      $20,477,223    $4,132,026  $—  $—   $—  $— 
Government  865,834  133,450  —  —  272,546  51,149  193,688  177,059  37,942 
High Yield*  18,063,707  1,503,018  3,751,289  4,271,480  4,736,272  790,779  632,307  1,944,836  433,726 
Investment Grade  1,882,502  612,688  37,096  17,173  517,182  —  108,453  531,982  57,928 
Target Maturity 2015  74,461  —  2,287  4,285  14,833  26,960  —  8,297  17,799 
Value  4,779,949  —  —  3,581,578  1,198,371  —  —  —  — 

*For High Yield Fund, $50,129 of the $4,271,480 capital loss carryover expiring in 2010 was acquired in the reorganization with Special Bond Fund. Due to the reorganization, the Fund will have available for utilization $3,435,093 in capital loss carryovers that will become available at $601,552 per year for the taxable years 2008 through 2012 and $427,333 for the taxable year 2013. These capital loss carryovers will expire as follows: 2010 $1,575,155; 2011 $881,182; 2012 $212,617; 2013 $153,634; 2014 $662,634.

Effective June 29, 2007, the Fund adopted the Financial Accounting Standards Board (“FASB”) Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has reviewed the tax positions for each of the open tax years 2004 to 2007 and has determined the adoption of FIN 48 had no impact on the financial statements of the Funds.

C. Foreign Currency Translations—The accounting records of the International 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.

79 

Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

The International Fund does not isolate that portion of gains and losses on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains and losses from investments.

Net realized and unrealized gains and losses on foreign currency transactions include gains and losses from the sales of foreign currency and gains and losses on accrued foreign dividends and related withholding taxes.

D. Distributions to Shareholder—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 Trust 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. 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.

G. Security Lending—High Yield Fund may loan securities to other investors through the Securities Lending Management Agreement (“the Agreement”) with Credit Suisse. Under the terms of the Agreement, the Fund is required to maintain collateral with a market value not less than 101% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in market value of securities on loan. Collateral may consist of cash or securities issued or guaranteed by the U.S. government or its agencies. Cash collateral may be invested in permissible instruments authorized by the Agreement. Interest earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged by Credit Suisse for its services in connection

80 

with this securities lending program. The Fund is subject to all of the investment risks associated with the securities that are being loaned and the investments made with the cash collateral. The Fund is also subject to the risks associated with a delay in recovering the loaned securities or an inability to recover the loaned securities in the event the collateral is not sufficient. The market value of securities on loan at June 30, 2008, was $4,479,446 (including $123,850 of accrued interest), for which the Fund received cash collateral of $4,561,754.

H. Other—Security transactions are generally accounted for on the first business day following the date the securities are purchased or sold. Cost is determined and gains and losses are based, on the identified cost basis for securities, for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income and estimated expenses are accrued daily. Bond premiums and discounts are accreted or amortized using the interest method. Interest income on zero-coupon bonds and stepbonds is accrued daily at the effective interest rate. For the six months ended June 30, 2008, the Bank of New York Mellon, custodian for all the Funds, except the International Fund, has provided credits in the amount of $29,199 against custodian charges based on the uninvested cash balances of the Funds. The Funds also reduced expenses through brokerage service arrangements. For the six months ended June 30, 2008, the Funds’ expenses were reduced by $2,357 under these arrangements.

2. Trust Shares—The Trust is authorized to issue an unlimited number of shares of beneficial interest without par value. The Trust consists of the Funds listed on the cover page, each of which is a separate and distinct series of the Trust. Shares in the Funds are acquired through the purchase of variable annuity or variable life insurance contracts sold by First Investors Life Insurance Company.

3. Security Transactions—For the six months ended June 30, 2008, purchases and sales (including pay-downs on Government Fund) of securities and long-term U.S. Government obligations (excluding short-term U.S. Government obligations, repurchase agreements, foreign currencies and short-term securities), were as follows:

81 

Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

    Long-Term U.S.
  Securities  Government Obligations  
  Cost of  Proceeds  Cost of  Proceeds 
Fund  Purchases  of Sales  Purchases  of Sales 
Blue Chip  $ 7,619,202  $12,105,353  $ —  $ — 
Discovery  40,297,963  44,348,775  —  — 
Government  —  —  4,622,162  3,782,356 
Growth & Income  29,875,605  38,121,271  —  — 
High Yield  6,980,187  6,429,037  —  — 
International  92,904,290  91,291,776  —  — 
Investment Grade  26,850,345  24,405,917  4,674, 518  6,318,323 
Select Growth  5,719,473  4,371,775  —  — 
Target Maturity 2010  —  —  —  834,192 
Target Maturity 2015  —  —  —  232,206 
Value  5,729,538  8,549,486  —  — 

At June 30, 2008, 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  $111,011,776  $42,470,429  $ 8,708,026  $33,762,403 
Discovery  132,016,425  22,563,662  13,845,410  8,718,252 
Government  22,422,990  111,033  216,758  (105,725) 
Growth & Income  217,552,010  35,425,480  34,574,511  850,969 
High Yield  82,071,088  590,258  9,635,713  (9,045,455) 
International  116,938,272  18,112,819  2,345,607  15,767,212 
Investment Grade  39,534,856  125,950  1,568,689  (1,442,739) 
Select Growth  11,795,042  759,413  682,287  77,126 
Target Maturity 2010  13,160,569  1,150,237  —  1,150,237 
Target Maturity 2015  25,211,274  2,429,826  —  2,429,826 
Value  67,730,183  18,255,747  8,562,009  9,693,738 

Certain of the Funds may invest in First Investors Cash Reserve Fund, LLC (“Cash Reserve Fund”), an affiliated unregistered money market fund managed by First Investors Management Company, Inc. During the six-month period ended June 30, 2008, purchases, sales and dividend income earned by the Funds that invested in the Cash Reserve Fund were as follows:

82 

  Value at  Purchases  Sales  Value at  Dividend 
Fund  12/31/07  Shares/Cost  Shares/Cost  6/30/08  Income 
Blue Chip  —  $ 4,835,000  $ 4,010,000  $ 825,000  $ 7,297 
Discovery  —  14,850,000  10,155,000  4,695,000  21,925 
Growth & Income  —  3,365,000  2,575,000  790,000  879 
High Yield  —  6,260,000  3,175,000  3,085,000  9,935 
International  —  13,550,000  13,350,000  200,000  3,437 
Investment Grade  —  4,735,000  3,975,000  760,000  2,127 
Value  —  4,050,000  1,780,000  2,270,000  10,178 

4. Advisory Fee and Other Transactions With Affiliates—Certain officers and trustees of the Trust are officers and trustees of its investment adviser, First Investors Management Company, Inc. (“FIMCO”) and/or its transfer agent, Administrative Data Management Corp. Trustees of the Trust who are not “interested persons” of the Trust as defined in the 1940 Act are remunerated by the Funds. For the six months June 30, 2008, total trustee fees accrued by the Funds amounted to $27,426.

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, .72% on the next $250 million, .69% on the next $250 million, .66% on the next $500 million, declining by .02% on each $500 million thereafter, down to .60% on average daily net assets over $2.25 billion. For the six months ended June 30, 2008, FIMCO has voluntarily waived 20% of the .75% annual fee on the first $250 million of average daily net assets of the Government, Investment Grade, Target Maturity 2010 and Target Maturity 2015 Funds. In addition, FIMCO has voluntarily waived $17,250 in advisory fees on the Cash Management Fund to limit the Fund’s overall expense ratio to .70%. For the six months ended June 30, 2008, total advisory fees accrued to FIMCO were $3,625,432 of which $95,185 was waived as noted above.

Paradigm Capital Management, Inc. serves as investment subadviser to the Discovery Fund. Smith Asset Management Group, L.P. serves as investment subadviser to Select Growth Fund. Vontobel Asset Management, Inc. serves as investment subadviser to the International Fund. The subadvisers are paid by FIMCO and not by the Funds.

5. Restricted Securities—Certain restricted securities are exempt from the registration requirements under Rule 144A of the Securities Act of 1933 and may only be sold to qualified institutional investors. At June 30, 2008, the Cash Management Fund held one 144A security with a value of $249,964 representing 1.9% of the Fund’s net assets, the Government Fund held one 144A security with a value of $866,918 representing 3.8% of the Fund’s net assets, the High Yield Fund held twenty 144A

83 

Notes to Financial Statements (continued)
FIRST INVESTORS LIFE SERIES FUNDS
June 30, 2008

securities with an aggregate value of $8,669,529 representing 11.7% of the Fund’s net assets, the Investment Grade Fund held thirteen 144A securities with an aggregate value of $4,902,714 representing 12.7% of the Fund’s net assets. Certain restricted securities are exempt from the registration requirements under Section 4(2) of the Securities Act of 1933 and may only be sold to qualified investors. At June 30, 2008, the Cash Management Fund held seven Section 4(2) securities with an aggregate value of $3,641,132 representing 27.5% of the Fund’s net assets. These securities are valued as set forth in Note 1A.

6. Forward Currency Contracts and Foreign Exchange Contracts—Forward currency contracts and foreign exchange contracts are obligations to purchase or sell a specific currency for an agreed-upon price at a future date. When the International Fund purchases or sells foreign securities, it may enter into a forward currency contract to minimize the foreign exchange risk between the trade date and the settlement date of such transactions. The International Fund could be exposed to risk if counter parties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. Forward currency contracts and foreign exchange contracts are “marked-to-market” daily at the applicable translation rate and the resulting unrealized gains or losses are reflected in the Fund’s assets.

The International Fund had the following forward currency contracts open at June 30, 2008:

Contracts to Buy      Unrealized 
Foreign Currency  In Exchange for  Settlement Date  Gain (Loss) 
44,262  Brazilian Real  US $ 27,659  6/30/08  US $ (83) 
24,012  Canadian Dollar  23,734  6/30/08  (40) 
70,853  Brazilian Real  44,394  7/1/08  194 
251,751  Canadian Dollar  249,123  7/2/08  (630) 
42,221  Euro  66,522  7/2/08  — 
169,907  Euro  267,696  7/3/08  — 
16,515,453  Japanese Yen  155,799  7/3/08  — 
    $834,927    $(559) 

84 

Contracts to Sell      Unrealized 
Foreign Currency  In Exchange for  Settlement Date  Gain (Loss) 
346,045  Canadian Dollar  US $ 341,183  6/27/08  US $2,115 
147,743  Singapore Dollar  108,134  6/27/08  182 
255,315  Singapore Dollar  186,327  6/30/08  1,591 
228,861  Australian Dollar  220,061  7/3/08  (435) 
55,190  British Pound  109,837  7/3/08  — 
103,398  Canadian Dollar  101,915  7/3/08  — 
124,779  Danish Krona  26,361  7/3/08  — 
39,663  Euro  62,491  7/2/08  — 
146,647  Euro  231,049  7/3/08  — 
604,320  Hong Kong Dollar  77,502  7/3/08  — 
1,109,726  Indian Rupee  25,808  7/3/08  (15) 
29,219,039  Japanese Yen  275,275  7/3/08  364 
299,832  Norwegian Krona  58,866  7/3/08  — 
106,221  Swiss Franc  104,281  7/3/08  — 
    $1,929,090    $3,802 
 
Net Unrealized Gain on Forward Currency Contracts    $3,243 

The International Fund has the following foreign exchange contracts outstanding at June 30, 2008:

Contracts to Buy      Unrealized 
Foreign Currency  In Exchange for  Settlement Date Gain (Loss) 
7,592,000  British Pound  US $15,046,205         8/11/08  US $ 63,155 
10,478,000  Euro  15,348,698         8/11/08  1,159,888 
8,400,000  Euro  13,161,120         9/22/08  73,479 
7,255,000  Swiss Franc  7,314,614         9/22/08  (192,093) 
    $50,870,637    $1,104,429 

85 

Notes to Financial Statements (continued)

FIRST INVESTORS LIFE SERIES FUNDS June 30, 2008

Contracts to Sell        Unrealized 
Foreign Currency  In Exchange for  Settlement Date    Gain (Loss) 
7,592,000  British Pound  US $14,587,572  8/11/08  US $ (521,787) 
10,478,000  Euro  15,130,337  8/11/08    (1,378,250) 
8,400,000  Euro  12,989,760  9/22/08    (244,839) 
7,255,000  Swiss Franc  7,229,696  9/22/08    107,175 
8,045,000  British Pound  15,748,972  9/25/08    (261,934) 
    $65,686,337      $(2,299,635) 
 
Net Unrealized Loss on Foreign Exchange Contracts      $(1,195,206) 

7. High Yield Credit Risk—The High Yield Fund’s investment in high yield securities, whether rated or unrated, may be considered speculative and subject to greater market fluctuations and risks of loss of income and principal than lower yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for the holders of high yielding securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer.

8. Reorganization—On November 16, 2007, First Investors Life Series High Yield Fund (“High Yield Fund”) acquired all of the net assets of the First Investors Life Series Special Bond Fund (“Special Bond Fund”) in connection with a tax-free reorganization that was approved by the shareholders of Special Bond Fund at a special meeting of shareholders held on October 29, 2007. The High Yield Fund issued 1,747,119 shares to the Special Bond Fund in connection with the reorganization. In return, it received net assets of $13,341,374 from the Special Bond Fund (which included $1,209,299 of unrealized depreciation and $7,664,701 of accumulated net realized losses). The High Yield Fund’s shares were issued at their current net asset values as of the date of the reorganization. The aggregate net assets of the High Yield Fund and Special Bond Fund immediately before the acquisition were $79,336,014 consisting of High Yield Fund $65,994,640 and Special Bond Fund $13,341,374, respectively.

9. New Accounting Pronouncements—In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operation and financial position. Management is currently evaluating the implications of SFAS 161. The impact on the Fund’s financial statement disclosures, if any, is currently being assessed.

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87 

Financial Highlights

FIRST INVESTORS LIFE SERIES FUNDS

The following table sets forth the per share operating 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 R A T I O S / S U P P L E M E N T A L   D A T A
          Less Distributions              Ratio to Average Net   
    Investment Operations  from          Ratio to Average Net  Assets Before Expenses   
  Net Asset  Net  Net Realized          Net Asset      Assets**  Waived or Assumed   
  Value,  Investment  and Unrealized  Total from  Net  Net    Value,    Net Assets  Expenses  Net Invest-    Net  Portfolio 
  Beginning  Income  Gain (Loss) on  Investment  Investment  Realized  Total  End of  Total  End of Period  Before Fee  ment Income    Investment  Turnover 
  of Period    (Loss)    Investments  Operations      Income    Gains    Distributions    Period    Return*    (in millions)  Credits (a)    (Loss)    Expenses     Income    Rate   
 
BLUE CHIP FUND                        
2003  $15.10  $.12  $3.80  $3.92  $.11  —  $.11  $18.91  26.19  %  $179  .83  %  .71  N/A  N/A  96  % 
2004  18.91  .19  1.20  1.39  .12  —  .12  20.18  7.37  181  .83  .99  N/A  N/A  100 
2005  20.18  .20  .67  .87  .20  —  .20  20.85  4.34  174  .85  .93  N/A  N/A  34 
2006  20.85  .26  2.74  3.00  .20  —  .20  23.65  14.49  181  .82  1.13  N/A  N/A  4 
2007  23.65  .31  .67  .98  .26  —  .26  24.37  4.21  173  .81  1.20  N/A  N/A  5 
2008(b)  24.37    .17     (3.13) (2.96)     .31    —    .31    21.10     (12.19)     145       .83  †  1.49  †  N/A    N/A    5    
 
CASH MANAGEMENT FUND                        
2003  $ 1.00  $.005  —  $.005  $.005  —  $.005  $1.00  .54  %  $ 10  .70   %(c)  .55  %  .95%  .30  %  N/A 
2004  1.00  .007  —  .007  .007  —  .007  1.00  .71  7  .71  (c)  .69  1.04  .35  N/A 
2005  1.00  .024  —  .024  .024  —  .024  1.00  2.44  6  .72   (c)  2.38  1.09  1.99  N/A 
2006  1.00  .043  —  .043  .043  —  .043  1.00  4.35  7  .74   (c)  4.26  1.09  3.87  N/A 
2007  1.00  .045  —  .045  .045  —  .045  1.00  4.62  15  .72   (c)  4.49  1.04  4.14  N/A 
2008(b)  1.00    .012    —  .012    .012    —    .012    1.00     1.22     13       .71   (c)†  2.48  †  .96   †   2.23  † N/A     
 
DISCOVERY FUND                        
2003  $15.62  $(.06) $6.19  $6.13  $ —  $ —  $ —  $21.75  39.24  %  $122  .85  % (.35) %  N/A  N/A  111  % 
2004  21.75  (.04) 2.82  2.78  —  —  —  24.53  12.78  134  .83  (.18) N/A  N/A  93 
2005  24.53  .08  1.18  1.26  —  —  —  25.79  5.14  137  .90  .15  N/A  N/A  111 
2006  25.79  .06  5.74  5.80  .04  —  .04  31.55  22.51  158  .82  .19  N/A  N/A  58 
2007  31.55  .11  1.86  1.97  .06  2.66  2.72  30.80  6.62  161  .82  .35  N/A  N/A  55 
2008(b)  30.80    .09    (2.92) (2.83)      .11    1.44    1.55    26.42    (9.28)    141       .82  † .63  †  N/A    N/A    28    
 
GOVERNMENT FUND                             
2003  $10.71  $.55  $(.22) $.33  $.45  —  $.45  $10.59  3.18  %  $ 24  .75  % 4.98  %  .90%  4.83  %  83  % 
2004  10.59  .54  (.17) .37  .58  —  .58  10.38  3.62  21  .76  4.81  .91  4.66  62 
2005  10.38  .51  (.26) .25  .53  —  .53  10.10  2.54  20  .81  4.85  .96  4.70  52 
2006  10.10  .51  (.14) .37  .51  —  .51  9.96  3.80  20  .78  5.10  .93  4.95  28 
2007  9.96  .48  .15  .63  .52  —  .52  10.07  6.55  21  .80  4.94  .95  4.75  24 
2008(b)  10.07    .22    (.05) .17     .45    —    .45    9.79     1.64     23       .81  †  4.57  †  .96   †  4.42  † 18    
 
GROWTH & INCOME FUND(d)                        
2003  $23.83  $.16  $6.75  $6.91  $ .12  $ —  $ .12  $30.62  29.18  %  $222  .83   %  .60   %  N/A  N/A  74  % 
2004  30.62  .25  3.04  3.29  .16  —  .16  33.75  10.77  239  .83  .79  N/A  N/A  76 
2005  33.75  .16  2.25  2.41  .25  —  .25  35.91  7.20  249  .85  .46  N/A  N/A  93 
2006  35.91  .20  4.68  4.88  .16  2.27  2.43  38.36  14.35  268  .82  .55  N/A  N/A  127 
2007 38.36    .41    .25  .66    .20    5.43    5.63    33.39    1.98    258  .81    1.14    N/A    N/A    38   

88  89 

Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUNDS

  P E R S H A R E   D A T A R A T I O S / S U P P L E M E N T A L   D A T A
            Less Distributions              Ratio to Average Net   
    Investment Operations from          Ratio to Average Net  Assets Before Expenses   
  Net Asset  Net  Net Realized            Net Asset      Assets**  Waived or Assumed   
  Value,  Investment  and Unrealized  Total from  Net  Net    Value,    Net Assets  Expenses   Net Invest-    Net Portfolio 
  Beginning  Income  Gain (Loss) on    Investment  Investment  Realized  Total  End of  Total  End of Period  Before Fee  ment Income    Investment Turnover 
  of Period    (Loss)    Investments    Operations     Income    Gains      Distributions     Period         Return *  (in millions)          Credits (a)         (Loss)    Expenses       Income    Rate   
 
HIGH YIELD  FUND                          
2003  $ 7.40  $.63  $1.16    $1.79  $.69  —  $.69  $ 8.50  26.14  %  $64  .85  %  8.34  %  N/A  N/A  30   % 
2004  8.50  .62  .17    .79  .63  —  .63  8.66  9.94  70  .85  7.55  N/A  N/A  33 
2005  8.66  .65  (.61)   .04  .63  —  .63  8.07  .41  69  .87  8.01  N/A  N/A  35 
2006  8.07  .62  .12    .74  .67  —  .67  8.14  9.77  68  .85  7.63  N/A  N/A  31 
2007  8.14  .57  (.47)   .10  .63  —  .63  7.61  1.06  79  .86  7.19  N/A  N/A  28 
2008(b)  7.61    .26    (.38)   (.12)   .59    —    .59    6.90    (1.43)   74         .85  †           7.68  †  N/A             N/A    8   
 
INTERNATIONAL FUND(e)                      
2003  $12.50  $.10  $3.91    $4.01  $.13  $ —  $.13  $16.38  32.52  %  $90  1.08  .74  %  N/A  N/A  119   % 
2004  16.38  .09  2.28    2.37  .20  —  .20  18.55  14.58  99  1.02  .94  N/A  N/A  114 
2005  18.55  .28  1.41    1.69  .24  —  .24  20.00  9.22  105  .99  .80  N/A  N/A  104 
2006  20.00  .29  5.09    5.38  .15  .64  .79  24.59  27.79  129  .97  1.24  N/A  N/A  157 
2007  24.59  .04  4.26    4.30  .83  3.36  4.19  24.70  20.99  154  .90  1.30  N/A  N/A  97 
2008(b)  24.70    .23    (3.23)   (3.00)   .04    2.65    2.69    19.01    (12.53)   133         .92  †           1.85   †  N/A             N/A    66   
 
INVESTMENT GRADE FUND                          
2003  $11.57  $.61  $ .34    $ .95  $.65  —  $.65  $11.87  8.60  %  $37  .73  %  5.29  %  .88   %  5.14   %  14  % 
2004  11.87  .59  (.12)   .47  .67  —  .67  11.67  4.04  38  .72  5.03  .87  4.88  16 
2005  11.67  .56  (.42)   .14  .67  —  .67  11.14  1.31  38  .75  4.91  .90  4.76  24 
2006  11.14  .53  (.11)   .42  .62  —  .62  10.94  3.99  37  .74  4.82  .89  4.67  86 
2007  10.94  .43  .15    .58  .60  —  .60  10.92  5.52  39  .73  4.97  .88  4.81  38 
2008(b)  10.92      .13    (.20)   (.07)   .57    —    .57    10.28    (.79)   39         .75  †           5.15  †  .90  †           5.00  †  81   
 
SELECT GROWTH FUND(f)                      
2003  $ 6.21  $.04  $1.68    $1.72  $.01  $ —  $.01  $ 7.92  27.73  %  $10  .95  %  .67  %  N/A  N/A  43  % 
2004  7.92  .10  .36    .46  .04  —  .04  8.34  5.87  11  .96  1.23  N/A  N/A  50 
2005  8.34  .05  .41    .46  .10  —  .10  8.70  5.55  11  .99  .57  N/A  N/A  66 
2006  8.70  .07  .75    .82  .05  —  .05  9.47  9.47  12  .92  .77  N/A  N/A  80 
2007  9.47  .01  1.06    1.07  .07  —  .07  10.47  11.42  13  1.14  .15  N/A  N/A  161 
2008(b)  10.47    (.01)   (1.40)    (1.41)   .01    .09    .10    8.96    (13.46)   12       1.06   †           (.16) †  N/A             N/A    37   
 
TARGET MATURITY 2010 FUND                      
2003  $15.41  $.72  $(.28)   $.44  $.67  $ —  $.67  $15.18  2.84  %  $17  .74  %  4.54  %  .89  %  4.39  %  1  % 
2004  15.18  .72  (.13)   .59  .73  .06  .79  14.98  3.96  17  .75  4.70  .90  4.55  4 
2005  14.98  .70  (.50)   .20  .70  .14  .84  14.34  1.46  16  .76  4.74  .91  4.59  3 
2006  14.34  .75  (.49)   .26  .72  .12  .84  13.76  2.02  14  .76  5.13  .91  4.98  3 
2007  13.76  .69  .41    1.10  .77  —  .77  14.09  8.35  15  .76  5.33  .91  5.16  11 
2008(b)  14.09    .38    (.04)   .34    .70    .05    .75    13.68    2.32    14    .78   †  4.99   †  .93  †  4.84  †  0   

90  91 

Financial Highlights (continued)
FIRST INVESTORS LIFE SERIES FUNDS

  P E R S H A R E   D A T A        R A T I O S / S U P P L E M E N T A L   D A T A
          Less Distributions              Ratio to Average Net   
    Investment Operations  from           Ratio to Average Net  Assets Before Expenses   
  Net Asset    Net Realized          Net Asset      Assets**  Waived or Assumed   
  Value,  Net  and Unrealized  Total from  Net  Net    Value,    Net Assets  Expenses  Net    Net  Portfolio 
  Beginning  Investment  Gain (Loss) on  Investment    Investment  Realized  Total  End of  Total  End of Period  Before Fee  Investment    Investment     Turnover
  of Period    Income    Investments    Operations    Income    Gains    Distributions    Period    Return*    (in millions)    Credits (a)       Income    Expenses       Income    Rate   
 
TARGET MATURITY 2015 FUND                      
2003  $13.71  $.50  $(.06) $.44  $.41  —  $.41  $13.74  3.24  %  $12       .80  %           4.27  %  .95  %           4.12  %  3  % 
2004  13.74  .53  .61  1.14  .51  —  .51  14.37  8.47  17       .75           4.34  .90           4.19  2 
2005  14.37  .53  .08  .61  .52  —  .52  14.46  4.39  22       .73           4.14  .88           3.99  0 
2006  14.46  .57  (.32) .25  .52  —  .52  14.19  1.85  24       .70           4.38  .85           4.23  2 
2007  14.19  .59  .74  1.33  .58  —  .58  14.94  9.70  27       .70           4.32  .85           4.16  3 
2008(b)  14.94    .30    .12    .42    .58    —    .58    14.78    2.74    28         .69  †           4.02  †  .84  †           3.87  †  0   
 
VALUE FUND                            
2003  $ 9.74  $.22  $2.35  $2.57  $.32  —  $.32  $11.99  27.59  %  $58       .83  %           2.19  %  N/A           N/A  33  % 
2004  11.99  .23  1.71  1.94  .22  —  .22  13.71  16.39  69       .84           1.87  N/A           N/A  20 
2005  13.71  .25  .57  .82  .22  —  .22  14.31  6.09  79       .87           1.89  N/A           N/A  21 
2006  14.31  .27  2.76  3.03  .26  —  .26  17.08  21.43  94       .83           1.73  N/A           N/A  15 
2007  17.08  .31  (.42) (.11) .27  —  .27  16.70  (.66) 91       .83           1.75  N/A           N/A  17 
2008(b)  16.70    .20    (1.93)   (1.73)   .29    —    .29    14.68    (10.43)   77         .85  †           2.23  †  N/A             N/A    7   

*  The effect of fees and charges incurred at the separate account level are not reflected in these 
  performance figures. 
**  Net of expenses waived or assumed by the investment adviser (Note 4). 
†  Annualized 
(a)  The ratios do not include a reduction of expenses from cash balances maintained with the Bank of 
  New York Mellon or from brokerage service arrangements (Note 1H). 
(b)  For the period January 1, 2008 to June 30, 2008. 
(c)  For each of the years shown, the expense ratio after fee credits was .70%. FIMCO has voluntarily 
  waived advisory fees to limit the Fund’s overall expense to .70%. 
(d)  Prior to October 18, 2006, known as Growth Fund. 
(e)  Prior to June 27, 2006, known as International Securities Fund. 
(f)  Prior to July 26, 2007, known as Focused Equity Fund. 

  See notes to financial statements   
92    93 

Report of Independent Registered Public
Accounting Firm

To the Shareholders and Board of Trustees of
First Investors Life Series Funds

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the twelve Funds comprising First Investors Life Series Funds, as of June 30, 2008, the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Life Series Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2008, 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 twelve Funds comprising First Investors Life Series Funds, as of June 30, 2008, and the results of their operations, changes in their net assets, and their financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Tait, Weller & Baker LLP 

Philadelphia, Pennsylvania
August 28, 2008

94 

Board Considerations of Advisory Contracts and Fees
(Unaudited)
FIRST INVESTORS LIFE SERIES FUNDS

Annual Consideration of the Investment Advisory Agreements and the Sub-Advisory
Agreements with Paradigm Capital Management, Inc., Smith Group Asset
Management, LP and Vontobel Asset Management, Inc.

At a meeting held on May 15, 2008 (“May Meeting”), the Board of Trustees (“Board”), including a majority of the non-interested or independent Trustees (hereinafter, “Trustees”), approved the renewal of the investment advisory agreement (the “Advisory Agreement”) between First Investors Management Company, Inc. (“FIMCO”) and each of the following funds (each a “Fund” and collectively the “Funds”): Blue Chip Fund, Value Fund, Discovery Fund, Growth & Income Fund, Select Growth Fund, International Fund, Government Fund, Investment Grade Fund, High Yield Fund, Cash Management Fund, Target Maturity 2010 Fund and Target Maturity 2015 Fund. In addition, at the May Meeting, the Board, including a majority of the independent Trustees, approved the renewal of the sub-advisory agreements (each a “Sub-Advisory Agreement” and collectively the “Sub-Advisory Agreements”) with: (1) Paradigm Capital Management, Inc. (“Paradigm”) with respect to the Discovery Fund; (2) Smith Group Asset Management, LP (“Smith Group”) with respect to the Select Growth Fund; and (3) Vontobel Asset Management, Inc. (“Vontobel”) with respect to the International Fund. The Discovery Fund, Select Growth Fund and International Fund are collectively referred to as the “Sub-Advised Funds.”

In reaching its decisions to approve the continuation of the Advisory Agreement for each Fund and the Sub-Advisory Agreements for the Sub-Advised Funds, the Board considered information furnished and discussed throughout the year at regularly scheduled Board meetings and Investment Committee meetings as well as information provided specifically in relation to the renewal of the Advisory Agreement and Sub-Advisory Agreements for the May Meeting. Information furnished at Board meetings and/ or Investment Committee meetings throughout the year included FIMCO’s analysis of each Fund’s investment performance, presentations given by representatives of FIMCO, Paradigm, Smith Group and Vontobel and various reports on compliance and other services provided by FIMCO. In preparation for the May Meeting, the independent Trustees requested and received information compiled by Lipper, Inc. (“Lipper”), an independent provider of investment company data, on the investment performance over various time periods and the fees and expenses of each Fund as compared to a comparable group of funds as determined by Lipper (“Peer Group”). FIMCO also provided, at the Board’s request, a special performance report on the High Yield Fund. Additionally, in response to specific requests from the independent Trustees in connection with the May Meeting, FIMCO furnished, and the Board considered, information concerning aspects of its operations, including: (1) the nature, extent and quality of services provided by FIMCO to the Funds, including investment advisory and administrative

95 

Board Considerations of Advisory Contracts and Fees (continued)
(Unaudited)
FIRST INVESTORS LIFE SERIES FUNDS

services to the Funds; (2) the actual management fees paid by each Fund to FIMCO; (3) the costs of providing services to each Fund and the profitability of FIMCO from the relationship with each Fund; and (4) any “fall out” or ancillary benefits accruing to FIMCO as a result of the relationship with each Fund. FIMCO also provided, and the Board considered, an analysis of the overall profitability of the First Investors mutual fund business that included various entities affiliated with FIMCO as well as comparative profitability information based on analysis performed by FIMCO of the financial statements of certain publicly-traded mutual fund asset managers. In addition to evaluating, among other things, the written information provided by FIMCO, the Board also evaluated the answers to questions posed by the Board to representatives of FIMCO at the May Meeting.

In addition, in response to specific requests from the independent Trustees in connection with the May Meeting, Paradigm, Smith Group and Vontobel furnished, and the Board reviewed, information concerning aspects of their respective operations, including: (1) the nature, extent and quality of services provided by Paradigm, Smith Group and Vontobel to the applicable Sub-Advised Funds; (2) the sub-advisory fee rates charged by Paradigm, Smith Group and Vontobel and a comparison of those fee rates to the fee rates of Paradigm, Smith Group and Vontobel for providing advisory services to other investment companies or accounts, as applicable, with an investment mandate similar to the applicable Sub-Advised Funds; (3) profitability information provided by Paradigm, Smith Group and Vontobel; and (4) any “fall out” or ancillary benefits accruing to Paradigm, Smith Group and Vontobel as a result of the relationship with each applicable Sub-Advised Fund.

In considering the information and materials described above, the independent Trustees received assistance from and met separately with independent legal counsel and were provided with a written description of their statutory responsibilities and the legal standards that are applicable to approvals of advisory agreements. Although the Advisory Agreement for all of the Funds and the Sub-Advisory Agreements for the Sub-Advised Funds were considered at the same Board meeting, the Trustees addressed each Fund separately during the May Meeting.

Based on all of the information presented, the Board, including a majority of its independent Trustees, determined on a Fund-by-Fund basis that the fees charged under the Advisory Agreement and each Sub-Advisory Agreement are reasonable in relation to the services that are provided under each Agreement. In view of the broad scope and variety of factors and information, the Trustees did not find it practicable to, and did not, assign relative weights to the specific factors considered in reaching their conclusions and determinations to approve the continuance of the Advisory Agreement

96 

for each Fund and Sub-Advisory Agreements. Rather, the approval determinations were made on the basis of each Trustee’s business judgment after consideration of all of the factors taken in their entirety.

Although not meant to be all-inclusive, the following discusses some of the factors relevant to the Board’s decisions to approve the continuance of the Advisory Agreement for each Fund and Sub-Advisory Agreements with Paradigm, Smith Group and Vontobel.

Nature, Extent and Quality of Services

In examining the nature, extent and quality of the services provided by FIMCO, the Board recognized that FIMCO is dedicated to providing investment management services exclusively to the Funds and the other funds in the First Investors fund complex and that, unlike many other mutual fund managers, FIMCO is not in the business of providing management services to hedge funds, pension funds or separately managed accounts. As a result, the Trustees considered that FIMCO’s personnel devote substantially all of their time to serving the funds in the First Investors fund complex. The Board noted that FIMCO has undertaken extensive responsibilities as manager of the Funds, including: (1) the provision of investment advice to the Funds; (2) implementing policies and procedures designed to ensure compliance with each Fund’s investment objectives and policies; (3) the review of brokerage arrangements; (4) oversight of general portfolio compliance with applicable laws; (5) the provision of certain administrative services to the Funds, including fund accounting; (6) the implementation of Board directives as they relate to the Funds; and (7) evaluating and monitoring sub-advisers. The Trustees noted that under the Advisory Agreement with FIMCO, FIMCO provides not only advisory services but certain administrative services, such as fund accounting services, that many other advisers do not provide under their advisory agreements. The Board also noted the steps that FIMCO has taken to encourage strong performance, including making changes to portfolio managers and/or sub-advisers of Funds to address performance issues and providing significant incentives to portfolio managers and analysts based on Fund performance.

Furthermore, the Board considered the nature, extent and quality of the investment management services provided by Paradigm, Smith Group and Vontobel to the applicable Sub-Advised Funds. The Trustees considered Paradigm’s, Smith Group’s and Vontobel’s investment management process in managing the applicable Sub-Advised Funds and the experience and capability of their respective personnel responsible for the portfolio management of the applicable Sub-Advised Funds.

97 

Board Considerations of Advisory Contracts and Fees (continued)
(Unaudited)
FIRST INVESTORS LIFE SERIES FUNDS

Based on the information considered, the Board concluded that the nature, extent and quality of FIMCO’s, Paradigm’s, Smith Group’s and Vontobel’s services, as applicable, supported approval of the Advisory Agreement and each Sub-Advisory Agreement.

Investment Performance

The Board placed significant emphasis on the investment performance of each of the Funds. While consideration was given to performance reports and discussions held at prior Board or Investment Committee meetings, as applicable, particular attention was given to the performance information compiled by Lipper. In particular, the Trustees reviewed the performance of the Funds over the most recent calendar year (“1-year period”) and, to the extent provided by Lipper, the annualized performance over the most recent three calendar year period (“3-year period”) and five calendar year period (“5-year period”). In addition, the Board considered the performance information provided by FIMCO for each Fund (other than the Target Maturity 2010 Fund and Target Maturity 2015 Fund) through April 30, 2008 (the “year-to-date period”). With regard to the performance information, the Board considered the performance of each Fund (other than the Target Maturity 2010 Fund and Target Maturity 2015 Fund) on a percentile and quintile basis as compared to its Peer Group. For purposes of the performance data provided, the first quintile is defined as 20% of the funds in the applicable Peer Group with the highest performance and the fifth quintile is defined as 20% of the funds in the applicable Peer Group with the lowest performance.

On a Fund-by-Fund basis, the performance reports indicated, and the Board noted, that the Value Fund, Discovery Fund, Select Growth Fund, International Fund, Government Fund and Investment Grade Fund fell within one of the top three quintiles for at least one of the performance periods provided by Lipper. With regard to the Blue Chip Fund, Growth & Income Fund and High Yield Fund, the Board considered that the performance of each such Fund for the year-to-date period had improved and fell within one of the top three quintiles. In addition, the Board considered that the performance of the Cash Management Fund had improved for the year-to-date period. Additionally, the Board considered FIMCO’s representation that it believes that the Funds use a more conservative style than many of their peers. The Board also considered FIMCO’s special performance report on the High Yield Fund and noted the actions FIMCO is taking to improve performance. Finally, the Board considered that FIMCO assigned a new portfolio manager to the Investment Grade Fund in November 2007 in an effort to improve performance.

With regard to the Target Maturity 2010 Fund and Target Maturity 2015 Fund, the Board noted that Lipper did not provide data comparing each Fund’s performance to other funds in its Peer Group on a quintile and percentile basis due to the limited number of funds

98 

in the Target Maturity underlying variable insurance products classification. While the Board reviewed the performance data provided by Lipper showing each Target Maturity Fund’s rank among the other funds in its Peer Group, the Board did not emphasize relative performance because of the limited number of funds in each Fund’s Peer Group. The Board also considered the absolute performance of each Fund. The Board considered the information that was presented and noted that the performance was as expected in light of the Target Maturity Funds’ investment objectives.

Fund Expenses, Costs of Services, Economies of Scale and Related Benefits

 Management Fees and Expenses. The Board also gave substantial consideration to the fees payable under each Fund’s Advisory Agreement as well as under the Sub-Advisory Agreements for the Sub-Advised Funds. The Board reviewed the information compiled by Lipper comparing each Fund’s contractual management fee rate (at common asset levels) and actual management fee rate (which included the effect of any fee waivers) as a percentage of average net assets — these fee rates include advisory and administrative service fees — to other funds in its Peer Group. The Board also reviewed the information compiled by Lipper comparing each Fund’s total expense ratio, taking into account FIMCO’s expense waivers (as applicable), and the ratio of the sum of actual management and other non-management fees (i.e., fees other than management fees) to other funds in its Peer Group. In this regard, the Board considered the management fees and expense ratios of each Fund (other than the Target Maturity 2010 Fund and Target Maturity 2015 Fund) on a quintile basis as compared to its Peer Group. For purposes of the data provided by Lipper, the first quintile is defined as 20% of the funds in the applicable Peer Group with the lowest fee or ratio and the fifth quintile is defined as 20% of the funds in the applicable Peer Group with the highest fee or ratio.

Based on the comparative data provided, on a Fund-by-Fund basis, the Board noted that: (1) the contractual management fee rate for each Fund, except the Government Fund, Investment Grade Fund, High Yield Fund and Cash Management Fund, was in one of the top three quintiles of its respective Peer Group; (2) the actual management fee rate (after taking into account any applicable fee waivers) for each Fund, except the Blue Chip Fund, Government Fund, Investment Grade Fund and High Yield Fund, was in one of the top three quintiles of its respective Peer Group; and (3) the total expense ratio and ratio of actual management and other non-management fees for each Fund, except the Select Growth Fund, Government Fund, Investment Grade Fund and Cash Management Fund, was in one of the top three quintiles of its respective Peer Group. The Board further considered that, through the 2009 fiscal year, FIMCO agreed to continue its total expense cap agreement for the Cash Management Fund and its management fee waiver agreements for the Government Fund and Investment Grade Fund.

99 

Board Considerations of Advisory Contracts and Fees (continued)
(Unaudited)
FIRST INVESTORS LIFE SERIES FUNDS

With regard to the Target Maturity 2010 Fund and Target Maturity 2015 Fund, the Board noted that Lipper did not provide data comparing each Fund’s management fee, total expense ratio or ratio of management and other non-management fees to other funds on a quintile basis due to the limited number of funds in the Target Maturity underlying variable insurance products classification. However, the Board reviewed data provided by Lipper showing each Target Maturity Fund’s rank among the other fund in its Peer Group as it relates to management fees, total expense ratio and ratio of management and other non-management fees. The Board considered the information that was presented and noted that, through the 2009 fiscal year, FIMCO agreed to continue its management fee waiver agreement for each Target Maturity Fund.

In considering the sub-advisory fee rates charged by and costs and profitability of Paradigm, Smith Group and Vontobel with regard to the respective Sub-Advised Funds, the Board noted that FIMCO pays Paradigm, Smith Group or Vontobel, as the case may be, a sub-advisory fee from its own advisory fee rather than each Fund paying Paradigm, Smith Group or Vontobel a fee directly. Paradigm, Smith Group and Vontobel provided, and the Board reviewed, information comparing the fees charged by Paradigm, Smith Group and Vontobel for services to the respective Sub-Advised Funds versus the fee rates of Paradigm, Smith Group and Vontobel for providing advisory services to other comparable investment companies or accounts or compared to their standard fee schedule, as applicable. Based on a review of this information, the Board noted that the fees charged by Paradigm, Smith Group and Vontobel for services to each applicable Sub-Advised Fund appeared competitive to the fees Paradigm, Smith Group and Vonto-bel charge to such other comparable investment companies or accounts or compared to their standard fee schedule, as applicable.

The foregoing comparisons assisted the Trustees by providing them with a basis for evaluating each Fund’s management fee and expense ratio on a relative basis.

Profitability. The Board reviewed the materials it received from FIMCO regarding its revenues and costs in providing investment management and certain administrative services to the Funds. In particular, the Board considered the analysis of FIMCO’s profitability with respect to each Fund, calculated for the year ended December 31, 2007, as well as overall profitability information relating to the past five calendar years. The Board also considered the information provided by FIMCO comparing the profitability of certain other publicly-traded mutual fund asset managers as analyzed by FIMCO based on publicly available financial statements. In reviewing the profitability information, the Trustees also considered the “fall-out” or ancillary benefits that may accrue to FIMCO as a result of its relationship with the Funds, which are discussed below. The

100 

Trustees acknowledged that, as a business matter, FIMCO was entitled to earn reasonable profits for its services to the Funds.

Economies of Scale. With respect to whether economies of scale are realized by FIMCO as a Fund’s assets increase and the extent to which any economies of scale are reflected in the level of management fee rates charged, the Board considered that the Advisory Agreement fee schedule for each Fund includes breakpoints to account for management economies of scale. The Board noted that the Growth & Income Fund has reached an asset size at which the Fund and its shareholders are benefiting from reduced management fee rates due to breakpoints in its fee schedule. With regard to all of the other Funds, the Board recognized that, although the Funds have not reached a size at which they can take advantage of the breakpoints contained in their fee schedule, each schedule is structured so that when the assets of the Funds grow, economies of scale may be shared for the benefit of shareholders.

“Fall Out” or Ancillary Benefits. The Board considered the “fall-out” or ancillary benefits that may accrue to FIMCO, Paradigm, Smith Group and Vontobel as a result of their relationship with the Funds. In that regard, the Board considered the fact that FIMCO, Paradigm, Smith Group and Vontobel receive research from broker-dealers that execute brokerage transactions for the funds in the First Investors fund complex. However, the Board noted that FIMCO and the sub-advisers must select brokers based on each Fund’s requirements for seeking best execution. The Board also considered that Paradigm executes brokerage transactions for the Discovery Fund through the use of an affiliated broker-dealer and that this also provides a source of fall-out benefits to Paradigm.

* * * 

In summary, after evaluation of the comparative performance, fee and expense information and the profitability, ancillary benefits and other considerations as described above, and in light of the nature, extent and quality of services to be provided by FIMCO, Paradigm, Smith Group and Vontobel, the Board concluded that the level of fees paid to FIMCO with respect to each Fund, and Paradigm, Smith Group and Vontobel with respect to each applicable Sub-Advised Fund, is reasonable. As a result, the Board, including a majority of the independent Trustees, approved the Advisory Agreement and each Sub-Advisory Agreement.

101 

FIRST INVESTORS LIFE SERIES FUNDS

Trustees
———————————————————
Charles R. Barton, III

Stefan L. Geiringer

Robert M. Grohol

Kathryn S. Head

Arthur M. Scutro, Jr.

James M. Srygley

Robert F. Wentworth

Officers
———————————————————
Kathryn S. Head
President

Larry R. Lavoie
Chief Compliance Officer

Joseph I. Benedek
Treasurer

Mark S. Spencer
Assistant Treasurer

Ruta M. Carroll
Secretary

Carol Lerner Brown
Assistant Secretary

102 

Shareholder Information   
———————————————————   
Investment Adviser  Transfer Agent 
First Investors Management  Administrative Data Management Corp. 
Company, Inc.  Raritan Plaza I — 8th Floor 
110 Wall Street  Edison, NJ 08837-3620 
New York, NY 10005   
  Independent Registered Public 
Subadviser  Accounting Firm 
(Discovery Fund)  Tait, Weller & Baker LLP 
Paradigm Capital Management, Inc.  1818 Market Street 
Nine Elk Street  Philadelphia, PA 19103 
Albany, NY 12207   
  Legal Counsel 
Subadviser  K&L Gates LLP 
(Select Growth Fund)  1601 K Street, N.W. 
Smith Asset Management Group, L.P.  Washington, D.C. 20006 
100 Crescent Court   
Dallas, TX 75201   
 
Subadviser   
(International Fund)   
Vontobel Asset Management, Inc.   
1540 Broadway   
New York, NY 10036   
 
Custodian   
The Bank of New York Mellon   
One Wall Street   
New York, NY 10286   
 
Custodian   
(International Fund)   
Brown Brothers Harriman & Co.   
40 Water Street   
Boston, MA 02109   

103 

FIRST INVESTORS LIFE SERIES FUNDS

A description of the policies and procedures that the Funds use to vote proxies relating to a portfolio’s securities is available, without charge, upon request by calling toll free 800-423-4026 or can be viewed online or downloaded from the EDGAR database on the Securities and Exchange Commission’s (“SEC”) internet website at http://www.sec.gov. In addition, information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available, without charge, upon request in writing or by calling 800-423-4026 and on the SEC’s internet website at http://www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the SEC on Form N-Q, for the first and third quarters of each fiscal year. The Fund’s Form N-Q will be available on the SEC’s website at http://www.sec.gov; and may also be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. The schedule of portfolio holdings is available, without charge, upon request in writing or by calling 800-423-4026.

104 

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Item 2.  Code of Ethics 
 
                       Not applicable 
 
Item 3.  Audit Committee Financial Expert 
 
                       Not applicable 
 
Item 4.  Principal Accountant Fees and Services 
 
                       Not applicable 
 
Item 5.  Audit Committee of Listed Registrants 
 
                       Not applicable 
 
Item 6.  Schedule of Investments 
 
                       Schedule is included as part of the report to 
                       stockholders filed under Item 1 of this Form. 
 
Item 7.  Disclosure of Proxy Voting Policies & Procedures for 
               Closed-End Management Investment Companies 
 
                       Not applicable 
 
Item 8.  Portfolio Managers of Closed-End Management Investment Companies 
 
                       Not applicable 
 
Item 9.  Purchases of Equity Securities by Closed-End Management 
  Investment Companies and Affiliated Purchasers 
 
                        Not applicable 
 
Item 10.   Submission of Matters to a Vote of Security Holders 
 
There were no material changes to the procedure by which shareholders may recommend nominees to 
the Registrant's Board of Trustees. 
 
Item 11.   Controls and Procedures 
 
(a)  The Registrant's Principal Executive Officer and Principal Financial Officer have concluded 
that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the 
Investment Company Act of 1940, as amended) are effective, based on their evaluation of these 
disclosure controls and procedures as of a date within 90 days of the filing date of this report. 

(b)  There were no changes in the Registrant's internal controls over financial reporting that 
occurred during the second fiscal quarter of the period covered by this report that has materially 
affected, or is reasonably likely to materially affect, the Registrant's internal control over 
financial reporting. 
 
Item 12.   Exhibits 
 
(a)(1)  Code of Ethics - Not applicable 
 
 
(a)(2)  Certifications pursuant to Section 302 of the Sarbanes-Oxley Act 
  of 2002 - Filed herewith 
 
(b)  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 Funds 
(Registrant) 
 
By  /S/ KATHRYN S. HEAD 
         Kathryn S. Head 
         President and Principal Executive Officer 
 
Date:  September 5, 2008 
 
 
     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 Funds 
(Registrant) 
 
By  /S/ JOSEPH I. BENEDEK 
         Joseph I. Benedek 
         Treasurer and Principal Financial Officer 
 
Date:  September 5, 2008