The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of January 31, 2012 in valuing the Fund’s investments carried at fair value:
The Fund has a management agreement with Lord, Abbett & Co. LLC (“Lord Abbett”), pursuant to which Lord Abbett supplies the Fund with investment management services and executive and other personnel, provides office space and pays for ordinary and necessary office and clerical expenses relating to research and statistical work and supervision of the Fund’s investment portfolio.
The management fee is based on the Fund’s average daily net assets at the following annual rate:
For the six months ended January 31, 2012, the effective management fee, net of waivers, was at an annualized rate of .70% of the Fund’s average daily net assets.
In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.
For the period ended January 31, 2012 and continuing through November 30, 2012, Lord Abbett has contractually agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that the total net annual operating
Notes to Financial Statements (unaudited)(continued)
expenses for each class, excluding 12b-1 fees, do not exceed an annual rate of 1.10%. This agreement may be terminated only upon the approval of the Fund’s Board of Trustees.
The Fund, along with certain other funds managed by Lord Abbett (collectively, the “Underlying Funds”), has entered into a Servicing Arrangement with Lord Abbett Diversified Equity Strategy Fund and Lord Abbett Growth & Income Strategy Fund of Lord Abbett Investment Trust (each, a “Fund of Funds”), pursuant to which each Underlying Fund pays a portion of the expenses (excluding management fees and fees pursuant to the 12b-1 distribution plan) of each Fund of Funds in proportion to the average daily value of the Underlying Fund shares owned by each Fund of Funds. Amounts paid pursuant to the Servicing Arrangement are included in Subsidy expense on the Fund’s Statement of Operations and Payable to affiliates on the Fund’s Statement of Assets and Liabilities.
As of January 31, 2012, the percentages of the Fund’s outstanding shares owned by Lord Abbett Diversified Equity Strategy Fund and Lord Abbett Growth & Income Strategy Fund were 9.87% and 12.68%, respectively.
12b-1 Distribution Plan
The Fund has adopted a distribution plan with respect to Class A, B, C, F, P, R2 and R3 shares pursuant to Rule 12b-1 under the Act, which provides for the payment of ongoing distribution and service fees to Lord Abbett Distributor LLC (the “Distributor”), an affiliate of Lord Abbett. The fees are accrued daily at annual rates based upon the Fund’s average daily net assets as follows:
| | | | | | | | | | | | | | | | | | | | | | |
Fees* | | Class A | | Class B | | Class C | | Class F | | Class P | | Class R2 | | Class R3 | |
| | | | | | | | | | | | | | | | |
Service | | | .25 | % | | .25 | % | | .25 | % | | — | | | .25 | % | | .25 | % | | .25 | % |
Distribution | | | .10 | % | | .75 | % | | .75 | % | | .10 | % | | .20 | % | | .35 | % | | .25 | % |
| |
* | The Fund may designate a portion of the aggregate fee as attributable to service activities for purposes of calculating Financial Industry Regulatory Authority, Inc. (“FINRA”) sales charge limitations. |
Class I shares do not have a distribution plan.
Commissions
Distributor received the following commissions on sales of shares of the Fund, after concessions were paid to authorized dealers, for the six months ended January 31, 2012:
| | |
Distributor | | Dealers’ |
Commissions | | Concessions |
| | | |
$8,426 | | $46,519 |
Distributor received CDSCs of $443 and $1,360 for Class A and Class C shares, respectively, for the six months ended January 31, 2012.
Two Trustees and certain of the Fund’s officers have an interest in Lord Abbett.
| | |
4. | DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS | |
Dividends from net investment income, if any, are declared and paid at least annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in
22
Notes to Financial Statements (unaudited)(continued)
the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.
As of July 31, 2011, the capital loss carryforwards, along with the related expiration dates, were as follows:
| | | | |
2017 | | 2018 | | Total |
| | | | | |
$13,966,584 | | $34,229,669 | | $48,196,253 |
In accordance with the Regulated Investment Company Modernization Act of 2010, the Fund will carryforward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) indefinitely. Post-enactment losses will retain their character as either short-term or long-term and be utilized before any pre-enactment losses.
As of January 31, 2012, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:
| | | | |
Tax cost | | $ | 161,731,906 | |
| | | | | |
Gross unrealized gain | | | 22,871,448 | |
Gross unrealized loss | | | (4,497,087 | ) |
| | | | | |
Net unrealized security gain | | $ | 18,374,361 | |
| | | | | |
The difference between book-basis and tax-basis unrealized gains (losses) is primarily due to wash sales.
| | |
5. | PORTFOLIO SECURITIES TRANSACTIONS | |
Purchases and sales of investment securities (excluding short-term investments) for the six months ended January 31, 2012 were as follows:
| | |
Purchases | | Sales |
| | | |
$87,884,697 | | $97,921,577 |
There were no purchases or sales of U.S. Government securities for the six months ended January 31, 2012.
| | |
6. | TRUSTEES’ REMUNERATION | |
The Fund’s officers and the two Trustees who are associated with Lord Abbett do not receive any compensation from the Fund for serving in such capacities. Independent Trustees’ fees are allocated among all Lord Abbett-sponsored funds based on the net assets of each fund. There is an equity-based plan available to all Independent Trustees under which Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of Trustees’ fees. The deferred amounts are treated as though equivalent dollar amounts had been invested in the funds. Such amounts and earnings accrued thereon are included in Trustees’ fees on the Statement of Operations and in Trustees’ fees payable on the Statement of Assets and Liabilities and are not deductible for U.S. federal income tax purposes until such amounts are paid.
23
Notes to Financial Statements (unaudited)(continued)
The Fund has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s expenses.
The Fund and certain other funds managed by Lord Abbett have available an unsecured revolving credit facility (“Facility”) from State Street Bank and Trust Company (“SSB”), to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. The Facility is renewed annually under terms that depend on market conditions at the time of the renewal. The amount available under the Facility is $200,000,000. On February 3, 2011, the Facility was renewed for an annual period by the Fund and certain other funds managed by Lord Abbett. The amount available under the Facility remained the same. The annual fee to maintain the Facility was reduced from ..15% to .125% of the amount available under the facility. Each participating fund pays its pro rata share based on the net assets of each participating fund. This amount is included in Other expenses on the Fund’s Statement of Operations. Any borrowings under this Facility will bear interest at current market rates as set forth in the credit agreement. During the six months ended January 31, 2012, a participating fund managed by Lord Abbett utilized the Facility and fully repaid its borrowings. As of January 31, 2012, there were no loans outstanding pursuant to this Facility.
Effective February 3, 2012, the Fund and certain other funds managed by Lord Abbett have entered into a short term extension of the Facility through April 2, 2012.
| | |
9. | CUSTODIAN AND ACCOUNTING AGENT | |
SSB is the Fund’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.
The Fund is subject to the general risks and considerations associated with equity investing, as well as the particular risks associated with growth stocks. The value of an investment in the Fund will fluctuate in response to movements in the equity securities market in general, and to the changing prospects of individual companies in which the Fund invests. Large growth stocks may perform differently than the market as a whole and other types of stocks, such as small company stocks and value stocks. Different types of stocks tend to shift in and out of favor depending on market and economic conditions. Growth stocks tend to be more volatile than other stocks. In addition, if the Fund’s assessment of a company’s value or prospects for meeting or exceeding earnings expectations or market conditions is wrong, it could suffer losses or produce poor performance relative to other funds, even in a rising market.
Due to the Fund’s exposure to foreign companies (and ADRs), the Fund may experience increased market, liquidity, currency, political, information, and other risks.
These factors can affect the Fund’s performance.
24
Notes to Financial Statements (unaudited)(concluded)
| | |
11. | SUMMARY OF CAPITAL TRANSACTIONS | |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | | | | | | |
Class A Shares | | Shares | | Six Months Ended
January 31, 2012
(unaudited) Amount | | Shares | | Year Ended
July 31, 2011
Amount | |
| | | | | | | | | | |
Shares sold | | | 706,406 | | $ | 3,892,384 | | | 1,931,417 | | $ | 11,419,110 | |
Converted from Class B* | | | 105,955 | | | 584,555 | | | 232,994 | | | 1,400,230 | |
Shares reacquired | | | (1,849,996 | ) | | (10,165,625 | ) | | (3,987,798 | ) | | (23,513,147 | ) |
| | | | | | | | | | | | | | |
Decrease | | | (1,037,635 | ) | $ | (5,688,686 | ) | | (1,823,387 | ) | $ | (10,693,807 | ) |
| | | | | | | | | | | | | | |
|
Class B Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | 21,852 | | $ | 108,656 | | | 99,646 | | $ | 543,713 | |
Shares reacquired | | | (367,873 | ) | | (1,860,293 | ) | | (977,018 | ) | | (5,262,123 | ) |
Converted to Class A* | | | (114,333 | ) | | (584,555 | ) | | (250,342 | ) | | (1,400,230 | ) |
| | | | | | | | | | | | | | |
Decrease | | | (460,354 | ) | $ | (2,336,192 | ) | | (1,127,714 | ) | $ | (6,118,640 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | 339,120 | | $ | 1,739,396 | | | 710,059 | | $ | 3,930,170 | |
Shares reacquired | | | (701,351 | ) | | (3,604,080 | ) | | (1,789,447 | ) | | (9,642,119 | ) |
| | | | | | | | | | | | | | |
Decrease | | | (362,231 | ) | $ | (1,864,684 | ) | | (1,079,388 | ) | $ | (5,711,949 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class F Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | 389,883 | | $ | 2,141,938 | | | 1,263,507 | | $ | 7,398,495 | |
Shares reacquired | | | (381,292 | ) | | (2,114,374 | ) | | (1,098,723 | ) | | (6,430,817 | ) |
| | | | | | | | | | | | | | |
Increase | | | 8,591 | | $ | 27,564 | | | 164,784 | | $ | 967,678 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | 172,938 | | $ | 976,134 | | | 2,917,457 | | $ | 17,932,385 | |
Shares reacquired | | | (215,533 | ) | | (1,199,270 | ) | | (1,049,023 | ) | | (6,608,380 | ) |
| | | | | | | | | | | | | | |
Increase (decrease) | | | (42,595 | ) | $ | (223,136 | ) | | 1,868,434 | | $ | 11,324,005 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class P Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | — | | $ | — | | | 0.205 | | $ | 1 | |
| | | | | | | | | | | | | | |
Increase | | | — | | $ | — | | | 0.205 | | $ | 1 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | — | | $ | — | | | 72 | | $ | 395 | |
Shares reacquired | | | (338 | ) | | (1,906 | ) | | (86 | ) | | (459 | ) |
| | | | | | | | | | | | | | |
Decrease | | | (338 | ) | $ | (1,906 | ) | | (14 | ) | $ | (64 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class R3 Shares | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Shares sold | | | 194,147 | | $ | 1,065,294 | | | 355,474 | | $ | 2,093,623 | |
Shares reacquired | | | (55,047 | ) | | (301,338 | ) | | (61,725 | ) | | (368,198 | ) |
| | | | | | | | | | | | | | |
Increase | | | 139,100 | | $ | 763,956 | | | 293,749 | | $ | 1,725,425 | |
| | | | | | | | | | | | | | |
| |
* | Automatic conversion of Class B shares occurs on the 25th day of the month (or if the 25th day is not a business day, the next business day thereafter) following the eighth anniversary of the day on which the purchase order was accepted. |
25
Approval of Advisory Contract
At a meeting held on December 14 and 15, 2011, the Board of Trustees (the “Board”), including all of the Trustees who are not interested persons of the Fund or Lord, Abbett & Co. LLC (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, including information about the investment performance of the Fund compared to the performance of its benchmark, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, the results of the examination of the portfolio management team by members of the Contract Committee during the year, the deliberations of the Contract Committee on December 14 and 15, 2011, and the discussions between the Contract Committee and Lord Abbett’s management on December 15, 2011.
The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investmentobjectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate benchmark; (2) information on the expense ratios, contractual and effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.
Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.
Investment Performance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe as of various periods ended August 31, 2011. The Board observed that the investment performance of the Class A shares of the Fund was in the fifth quintile of its performance universe for the nine-month and one-year periods, the fourth quintile for the three-year and five-year periods, and the fifth quintile for the ten-year period. The Board observed that the investment performance was lower than that of the Lipper Large-Cap Growth Index for the eight-month, one-year, three-year, five-year, and ten-year periods.
Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to the Fund, in light of its investment objective and
26
Approval of Advisory Contract (continued)
discipline. Among other things, the Board considered the size, experience, and turnover of Lord Abbett’s investment management staff, Lord Abbett’s investment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining investment management personnel. The Board also noted that Lord Abbett had made significant changes in its personnel for the Fund in 2009, replacing Bruce Bartlett and Christopher Yates with David J. Linsen and Paul J. Volovich. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.
Nature and Quality of Other Services. The Board considered the nature, quality, costs, and extent of compliance, administrative, and other services performed by Lord Abbett and Lord Abbett Distributor LLC (the “Distributor”) and the nature and extent of Lord Abbett’s supervision of third party service providers, including the Fund’s transfer agent and custodian.
Expenses. The Board considered the expense level of each class of shares of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group comparisons were based, and noted that the fiscal years of many funds in the peer group did not coincide with the Fund’s fiscal year. It also considered the amount and nature of the fees paid by shareholders. The Board observed that for the fiscal year ended July 31, 2011 the contractual management and administrative services fees, when calculated as a percentage of a hypothetical common asset level that approximated the Fund’s average net assets, were approximately one basis point below the median of the peer group, and the actual management and administrative services fees were approximately four basis points above the median of the peer group. The Board observed that for the fiscal year ended July 31, 2011 the total expense ratio of Class A was approximately fourteen basis points above the median of the peer group, the total expense ratio of Class B was approximately five basis points above the median of the peer group, the total expense ratio of Class C was approximately one basis point below the median of the peer group, the total expense ratio of Class F was approximately six basis points above the median of the peer group, the total expense ratio of Class I was approximately six basis points above the median of the peer group, the total expense ratio of Class P was approximately six basis points above the median of the peer group, the total expense ratio of Class R2 was approximately twenty-four basis points below the median of the peer group, and the total expense ratio of Class R3 was approximately twenty-six basis points above the median of the peer group. The Board noted that for the period from December 1, 2010 through November 30, 2011, Lord Abbett had contractually agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that the total net annual operating expenses for each class, excluding 12b-1 fees, do not exceed an annual rate of 1.10%. The Board also noted that Lord Abbett renewed the agreement through November 30, 2012. The Board considered how those expense ratios would relate to those of the peer group.
Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund, including the fee that Lord Abbett receives from the Fund for providing administrative services to the Fund, and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other business segments of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses,
27
Approval of Advisory Contract (concluded)
and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had increased in its 2011 fiscal year. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.
Economies of Scale. The Board considered whether there had been any economies of scale in managing the Fund, whether the Fund had appropriately benefited from any such economies of scale, and whether there was potential for realization of any further economies of scale. The Board concluded that the existing management fee schedule, with its breakpoints in the level of the management fee, adequately addressed any economies of scale in managing the Fund.
Other Benefits to Lord Abbett. The Board considered the character and amount of fees paid by the Fund and the Fund’s shareholders to Lord Abbett and the Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that the Distributor receives Rule 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the Rule 12b-1 fees from the Funds, and receives a portion of the sales charges on sales and redemptions of some classes of shares. The Board observed that, in addition, Lord Abbett accrues certain benefits for its business of providing investment advice to clients other than the Lord Abbett Funds, but that business also benefits the Funds. The Board also noted that Lord Abbett, as disclosed in the prospectus of the Fund, has entered into revenue sharing arrangements with certain entities that distribute shares of the Fund. The Board also took into consideration the investment research that Lord Abbett receives as a result of Fund brokerage transactions.
Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms. In considering whether to approve the continuation of the management agreement, the Board did not identify any single factor as paramount or controlling. This summary does not discuss in detail all matters considered.
After considering all of the relevant factors, the Board unanimously found that continuation of the existing management agreement was in the best interests of the Fund and its shareholders and voted unanimously to approve the continuation of the management agreement.
28
Householding
The Fund has adopted a policy that allows it to send only one copy of the Fund’s prospectus, proxy material, annual report and semiannual report to certain shareholders residing at the same “household.” This reduces Fund expenses, which benefits you and other shareholders. If you need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.
Proxy Voting Policies, Procedures and Records
A description of the policies and procedures that Lord Abbett uses to vote proxies related to the Fund’s portfolio securities, and information on how Lord Abbett voted the Fund’s proxies during the 12-month period ended June 30 are available without charge, upon request, (i) by calling 888-522-2388; (ii) on Lord Abbett’s Website at www.lordabbett.com; and (iii) on the Securities and Exchange Commission’s (“SEC”) Website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330).
29
This report, when not used for the general information of
shareholders of the Fund, is to be distributed only if
preceded or accompanied by a current fund prospectus.
| | |
Lord Abbett mutual fund shares are distributed by | | LASA-3 |
LORD ABBETT DISTRIBUTOR LLC. | Lord Abbett Stock Appreciation Fund | (03/12) |
| |
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: | Investments. |
| Not applicable. |
| |
Item 7: | Disclosure of Proxy Voting Policies and 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 Company and Affiliated Purchasers. |
| Not applicable. |
| |
Item 10: | Submission of Matters to a Vote of Security Holders. |
| Not applicable. |
| |
Item 11: | Controls and Procedures. |
| | |
| (a) | Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days prior to the filing date of this report, the Chief Executive Officer and Chief Financial Officer of the Registrant have concluded that such disclosure controls and procedures are reasonably designed and effective to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities. |
| |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| | |
| (a)(1) | Amendments to Code of Ethics – Not applicable. |
| | |
| (a)(2) | Certification of each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2 under the Investment Company Act of 1940 is attached hereto as a part of EX-99.CERT. |
| | |
| (a)(3) | Not applicable. |
| | |
| (b) | Certification of each principal executive officer and principal financial officer of the Registrant as required by Section 906 of the Sarbanes-Oxley Act of 2002 is provided as a part of EX-99.906CERT. |
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.
| | | |
| | LORD ABBETT STOCK APPRECIATION FUND |
| | | |
| By: | /s/ Robert S. Dow | |
| |
| |
| | Robert S. Dow |
| | Chief Executive Officer and Chairman |
| | | |
Date: March 27, 2012 | | | |
| | | |
| By: | /s/ Joan A. Binstock | |
| |
| |
| | Joan A. Binstock |
| | Chief Financial Officer and Vice President |
Date: March 27, 2012
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.
| | | |
| By: | /s/ Robert S. Dow | |
| |
| |
| | Robert S. Dow |
| | Chief Executive Officer and Chairman |
| | | |
Date: March 27, 2012 | | | |
| | | |
| By: | /s/ Joan A. Binstock | |
| |
| |
| | Joan A. Binstock |
| | Chief Financial Officer and Vice President |
Date: March 27, 2012
