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: 811-10371
LORD ABBETT EQUITY TRUST
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
(Address of principal executive offices) (Zip code)
Thomas R. Phillips, Esq., Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 201-6984
Date of fiscal year end: 7/31
Date of reporting period: 1/31/2013
Item 1: Report(s) to Shareholders.
2 0 1 3
L O R D A B B E T T
S E M I A N N U A L
R E P O R T
Lord Abbett
Calibrated Large Cap Value Fund
Calibrated Mid Cap Value Fund
For the six-month period ended January 31, 2013
|
Lord Abbett Equity Trust |
For the six-month period ended January 31, 2013 |
Dear Shareholders: We are pleased to provide you with this semiannual report for Lord Abbett Calibrated Large Cap Value Fund and Lord Abbett Calibrated Mid Cap Value Fund for the six-month period ended January 31, 2013. For additional information about the Funds, please visit our Website at www.lordabbett.com, where you can access the quarterly commentaries by the Funds’ portfolio managers. General information about Lord Abbett mutual funds, as well as in-depth discussions of market trends and investment strategies, is also provided in Lord Abbett Insights, a quarterly newsletter available on our Website.
Thank you for investing in Lord Abbett mutual funds. We value the trust that you place in us and look forward to serving your investment needs in the years to come.
|
Best regards, |
|
|
Daria L. Foster |
Trustee, President and Chief Executive Officer |
|
1
|
Expense Example |
As a shareholder of each Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (these charges vary among the share classes); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (these charges vary among the share classes); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2012 through January 31, 2013).
Actual Expenses
For each class of each Fund, the first line of the applicable table on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During Period 8/1/12 - 1/31/13” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each Fund, the second line of the applicable table on the following pages provides 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 each 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.
2
|
Calibrated Large Cap Value Fund |
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table 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.
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses |
|
|
|
| |||
|
| 8/1/12 |
| 1/31/13 |
| 8/1/12– |
|
|
|
| |||
Class A |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,128.00 |
| $4.02 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,021.44 |
| $3.82 |
Class C |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,124.00 |
| $7.87 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,017.81 |
| $7.48 |
Class F |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,128.90 |
| $3.22 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,022.21 |
| $3.06 |
Class I |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,129.20 |
| $2.68 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,022.71 |
| $2.55 |
Class R2 |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,129.50 |
| $2.63 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,022.76 |
| $2.50 |
Class R3 |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,128.50 |
| $4.56 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,020.90 |
| $4.33 |
|
|
† | For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.75% for Class A, 1.47% for Class C, 0.60% for Class F, 0.50% for Class I, 0.49% for Class R2 and 0.85% for Class R3) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
|
Portfolio Holdings Presented by Sector |
January 31, 2013 |
|
|
|
|
Sector* |
| %** |
|
Consumer Discretionary |
| 7.62% |
|
Consumer Staples |
| 7.70% |
|
Energy |
| 15.75% |
|
Financials |
| 27.46% |
|
Health Care |
| 11.90% |
|
Industrials |
| 9.59% |
|
|
|
|
|
Sector* |
| %** |
|
Information Technology |
| 5.76% |
|
Materials |
| 4.36% |
|
Telecommunication Services |
| 2.81% |
|
Utilities |
| 5.84% |
|
Short-Term Investment |
| 1.21% |
|
Total |
| 100.00% |
|
|
|
* | A sector may comprise several industries. |
** | Represents percent of total investments. |
3
|
Calibrated Mid Cap Value Fund |
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table 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.
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses |
|
|
|
| |||
|
| 8/1/12 |
| 1/31/13 |
| 8/1/12- |
|
|
|
| |||
Class A |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,156.50 |
| $4.62 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,020.89 |
| $4.33 |
Class C |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,152.40 |
| $8.41 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,017.39 |
| $7.88 |
Class F |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,157.50 |
| $3.70 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,021.77 |
| $3.47 |
Class I |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,158.30 |
| $3.26 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,022.20 |
| $3.06 |
Class R2 |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,158.10 |
| $3.21 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,022.25 |
| $3.01 |
Class R3 |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,158.50 |
| $3.21 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,022.25 |
| $3.01 |
|
|
† | For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.85% for Class A, 1.55% for Class C, 0.68% for Class F, 0.60% for Class I, 0.59% for Classes R2 and R3) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
|
Portfolio Holdings Presented by Sector |
January 31, 2013 |
|
|
|
|
Sector* |
| %** |
|
Consumer Discretionary |
| 8.56% |
|
Consumer Staples |
| 5.40% |
|
Energy |
| 10.09% |
|
Financials |
| 30.59% |
|
Health Care |
| 7.81% |
|
Industrials |
| 11.01% |
|
|
|
|
|
Sector* |
| %** |
|
Information Technology |
| 9.54% |
|
Materials |
| 6.62% |
|
Telecommunication Services |
| 0.44% |
|
Utilities |
| 9.47% |
|
Short-Term Investment |
| 0.47% |
|
Total |
| 100.00% |
|
|
|
* | A sector may comprise several industries. |
** | Represents percent of total investments. |
4
Schedule of Investments (unaudited)
CALIBRATED LARGE CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
| Shares |
| Fair |
| |
| |||||||||||
COMMON STOCKS 99.49% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Defense 2.35% |
|
|
|
|
|
|
|
|
|
|
|
Lockheed Martin Corp. |
|
|
|
|
|
| 16,600 |
| $ | 1,442 |
|
United Technologies Corp. |
|
|
|
|
|
| 26,900 |
|
| 2,356 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 3,798 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Airlines 0.41% |
|
|
|
|
|
|
|
|
|
|
|
Copa Holdings SA Class A (Panama)(a) |
|
|
|
|
|
| 6,100 |
|
| 669 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Auto Components 0.87% |
|
|
|
|
|
|
|
|
|
|
|
Johnson Controls, Inc. |
|
|
|
|
|
| 45,100 |
|
| 1,402 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Automobiles 0.31% |
|
|
|
|
|
|
|
|
|
|
|
Ford Motor Co. |
|
|
|
|
|
| 38,800 |
|
| 502 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Capital Markets 1.52% |
|
|
|
|
|
|
|
|
|
|
|
Ares Capital Corp. |
|
|
|
|
|
| 137,204 |
|
| 2,457 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals 0.36% |
|
|
|
|
|
|
|
|
|
|
|
CF Industries Holdings, Inc. |
|
|
|
|
|
| 2,500 |
|
| 573 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Banks 5.39% |
|
|
|
|
|
|
|
|
|
|
|
BB&T Corp. |
|
|
|
|
|
| 61,400 |
|
| 1,859 |
|
CIT Group, Inc.* |
|
|
|
|
|
| 63,100 |
|
| 2,672 |
|
Regions Financial Corp. |
|
|
|
|
|
| 48,700 |
|
| 379 |
|
SunTrust Banks, Inc. |
|
|
|
|
|
| 93,400 |
|
| 2,650 |
|
Wells Fargo & Co. |
|
|
|
|
|
| 32,900 |
|
| 1,146 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 8,706 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Communications Equipment 2.86% |
|
|
|
|
|
|
|
|
|
|
|
Cisco Systems, Inc. |
|
|
|
|
|
| 224,400 |
|
| 4,616 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Computers & Peripherals 0.62% |
|
|
|
|
|
|
|
|
|
|
|
Hewlett-Packard Co. |
|
|
|
|
|
| 29,500 |
|
| 487 |
|
NCR Corp.* |
|
|
|
|
|
| 18,300 |
|
| 508 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 995 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance 1.72% |
|
|
|
|
|
|
|
|
|
|
|
Capital One Financial Corp. |
|
|
|
|
|
| 49,300 |
|
| 2,777 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Containers & Packaging 1.26% |
|
|
|
|
|
|
|
|
|
|
|
Rock-Tenn Co. Class A |
|
|
|
|
|
| 25,800 |
|
| 2,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
| Fair |
| ||
| |||||||||||
Diversified Financial Services 6.80% |
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp. |
|
|
|
|
|
| 119,000 |
| $ | 1,347 |
|
Citigroup, Inc. |
|
|
|
|
|
| 84,800 |
|
| 3,575 |
|
JPMorgan Chase & Co. |
|
|
|
|
|
| 128,500 |
|
| 6,046 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 10,968 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Telecommunication Services 2.83% |
|
|
|
|
|
|
|
|
|
|
|
AT&T, Inc. |
|
|
|
|
|
| 104,300 |
|
| 3,629 |
|
Verizon Communications, Inc. |
|
|
|
|
|
| 21,400 |
|
| 933 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,562 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Electric: Utilities 2.61% |
|
|
|
|
|
|
|
|
|
|
|
Edison International |
|
|
|
|
|
| 6,400 |
|
| 308 |
|
Entergy Corp. |
|
|
|
|
|
| 7,700 |
|
| 498 |
|
NV Energy, Inc. |
|
|
|
|
|
| 42,000 |
|
| 795 |
|
PPL Corp. |
|
|
|
|
|
| 86,300 |
|
| 2,614 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,215 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Electrical Equipment 1.25% |
|
|
|
|
|
|
|
|
|
|
|
Emerson Electric Co. |
|
|
|
|
|
| 35,100 |
|
| 2,009 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Energy Equipment & Services 1.66% |
|
|
|
|
|
|
|
|
|
|
|
Atwood Oceanics, Inc.* |
|
|
|
|
|
| 44,800 |
|
| 2,364 |
|
Rowan Cos., plc Class A* |
|
|
|
|
|
| 9,000 |
|
| 310 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 2,674 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Food & Staples Retailing 2.65% |
|
|
|
|
|
|
|
|
|
|
|
Kroger Co. (The) |
|
|
|
|
|
| 84,600 |
|
| 2,343 |
|
Wal-Mart Stores, Inc. |
|
|
|
|
|
| 27,700 |
|
| 1,938 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,281 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Food Products 0.79% |
|
|
|
|
|
|
|
|
|
|
|
Kellogg Co. |
|
|
|
|
|
| 21,800 |
|
| 1,275 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Equipment & Supplies 4.55% |
|
|
|
|
|
|
|
|
|
|
|
Baxter International, Inc. |
|
|
|
|
|
| 35,400 |
|
| 2,401 |
|
Becton, Dickinson & Co. |
|
|
|
|
|
| 27,900 |
|
| 2,345 |
|
Stryker Corp. |
|
|
|
|
|
| 41,500 |
|
| 2,600 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 7,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Financial Statements. | 5 |
Schedule of Investments (unaudited)(continued)
CALIBRATED LARGE CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
| Fair |
| ||
| |||||||||||
Health Care Providers & Services 0.49% |
|
|
|
|
|
|
|
|
|
|
|
Community Health Systems, Inc. |
|
|
|
|
|
| 20,700 |
| $ | 793 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Household Products 1.68% |
|
|
|
|
|
|
|
|
|
|
|
Kimberly-Clark Corp. |
|
|
|
|
|
| 15,600 |
|
| 1,397 |
|
Procter & Gamble Co. (The) |
|
|
|
|
|
| 17,500 |
|
| 1,315 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 2,712 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Independent Power Producers |
|
|
|
|
|
|
|
|
|
|
|
AES Corp. (The) |
|
|
|
|
|
| 225,900 |
|
| 2,449 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Conglomerates 3.00% |
|
|
|
|
|
|
|
|
|
|
|
3M Co. |
|
|
|
|
|
| 25,100 |
|
| 2,524 |
|
General Electric Co. |
|
|
|
|
|
| 103,900 |
|
| 2,315 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,839 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Information Technology Services 1.14% |
|
|
|
|
|
|
|
|
|
|
|
Genpact Ltd. |
|
|
|
|
|
| 19,300 |
|
| 323 |
|
Paychex, Inc. |
|
|
|
|
|
| 46,700 |
|
| 1,524 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 1,847 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Insurance 8.20% |
|
|
|
|
|
|
|
|
|
|
|
ACE Ltd. (Switzerland)(a) |
|
|
|
|
|
| 8,500 |
|
| 725 |
|
Aflac, Inc. |
|
|
|
|
|
| 37,600 |
|
| 1,995 |
|
Allstate Corp. (The) |
|
|
|
|
|
| 42,500 |
|
| 1,866 |
|
Berkshire Hathaway, Inc. Class B* |
|
|
|
|
|
| 11,300 |
|
| 1,095 |
|
Everest Re Group Ltd. |
|
|
|
|
|
| 10,000 |
|
| 1,158 |
|
Hartford Financial Services Group, Inc. |
|
|
|
|
|
| 58,000 |
|
| 1,439 |
|
Prudential Financial, Inc. |
|
|
|
|
|
| 40,000 |
|
| 2,315 |
|
Travelers Cos., Inc. (The) |
|
|
|
|
|
| 33,700 |
|
| 2,644 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 13,237 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Leisure Equipment & Products 1.04% |
|
|
|
|
|
|
|
|
|
|
|
Hasbro, Inc. |
|
|
|
|
|
| 44,700 |
|
| 1,670 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Machinery 0.78% |
|
|
|
|
|
|
|
|
|
|
|
Illinois Tool Works, Inc. |
|
|
|
|
|
| 20,000 |
|
| 1,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
| Fair |
| ||
| |||||||||||
Media 2.35% |
|
|
|
|
|
|
|
|
|
|
|
Comcast Corp. Class A |
|
|
|
|
|
| 11,000 |
| $ | 419 |
|
Time Warner, Inc. |
|
|
|
|
|
| 66,800 |
|
| 3,375 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 3,794 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Metals & Mining 2.78% |
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies, Inc. |
|
|
|
|
|
| 59,300 |
|
| 1,877 |
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
|
|
|
| 26,800 |
|
| 945 |
|
Newmont Mining Corp. |
|
|
|
|
|
| 38,600 |
|
| 1,658 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,480 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Line Retail 2.17% |
|
|
|
|
|
|
|
|
|
|
|
Kohl’s Corp. |
|
|
|
|
|
| 39,800 |
|
| 1,843 |
|
Target Corp. |
|
|
|
|
|
| 27,500 |
|
| 1,661 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 3,504 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Utilities 1.75% |
|
|
|
|
|
|
|
|
|
|
|
PG&E Corp. |
|
|
|
|
|
| 66,300 |
|
| 2,827 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 14.21% |
|
|
|
|
|
|
|
|
|
|
|
Anadarko Petroleum Corp. |
|
|
|
|
|
| 17,900 |
|
| 1,432 |
|
Chevron Corp. |
|
|
|
|
|
| 43,000 |
|
| 4,952 |
|
Denbury Resources, Inc.* |
|
|
|
|
|
| 124,900 |
|
| 2,327 |
|
Exxon Mobil Corp. |
|
|
|
|
|
| 93,100 |
|
| 8,376 |
|
Marathon Petroleum Corp. |
|
|
|
|
|
| 10,100 |
|
| 750 |
|
Murphy Oil Corp. |
|
|
|
|
|
| 42,900 |
|
| 2,553 |
|
Noble Energy, Inc. |
|
|
|
|
|
| 9,200 |
|
| 992 |
|
Valero Energy Corp. |
|
|
|
|
|
| 35,500 |
|
| 1,552 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 22,934 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals 6.94% |
|
|
|
|
|
|
|
|
|
|
|
AbbVie, Inc. |
|
|
|
|
|
| 36,400 |
|
| 1,335 |
|
Actavis, Inc.* |
|
|
|
|
|
| 20,900 |
|
| 1,806 |
|
Eli Lilly & Co. |
|
|
|
|
|
| 5,700 |
|
| 306 |
|
Johnson & Johnson |
|
|
|
|
|
| 10,600 |
|
| 784 |
|
Merck & Co., Inc. |
|
|
|
|
|
| 8,300 |
|
| 359 |
|
Mylan, Inc.* |
|
|
|
|
|
| 82,000 |
|
| 2,318 |
|
Pfizer, Inc. |
|
|
|
|
|
| 157,600 |
|
| 4,299 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 11,207 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services 0.20% |
|
|
|
|
|
|
|
|
|
|
|
Towers Watson & Co. Class A |
|
|
|
|
|
| 5,400 |
|
| 330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 | See Notes to Financial Statements. |
|
Schedule of Investments (unaudited)(concluded)
CALIBRATED LARGE CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
Investments |
| Shares |
| Fair |
| ||
| |||||||
Real Estate Investment Trusts 4.02% |
|
|
|
|
|
|
|
Annaly Capital Management, Inc. |
|
| 21,400 |
| $ | 318 |
|
Boston Properties, Inc. |
|
| 2,900 |
|
| 305 |
|
Brandywine Realty Trust |
|
| 24,200 |
|
| 308 |
|
Camden Property Trust |
|
| 8,700 |
|
| 604 |
|
Health Care REIT, Inc. |
|
| 11,600 |
|
| 729 |
|
Home Properties, Inc. |
|
| 5,000 |
|
| 307 |
|
Liberty Property Trust |
|
| 14,600 |
|
| 572 |
|
Mid-America Apartment Communities, Inc. |
|
| 8,400 |
|
| 549 |
|
ProLogis, Inc. |
|
| 8,300 |
|
| 331 |
|
Senior Housing Properties Trust |
|
| 13,000 |
|
| 313 |
|
Simon Property Group, Inc. |
|
| 8,100 |
|
| 1,298 |
|
Ventas, Inc. |
|
| 8,100 |
|
| 537 |
|
Vornado Realty Trust |
|
| 3,800 |
|
| 321 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 6,492 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Road & Rail 1.66% |
|
|
|
|
|
|
|
CSX Corp. |
|
| 121,700 |
|
| 2,681 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Semiconductors & Semiconductor |
|
|
|
|
|
|
|
Equipment 0.83% |
|
|
|
|
|
|
|
Broadcom Corp. Class A |
|
| 31,600 |
|
| 1,025 |
|
Maxim Integrated Products, Inc. |
|
| 10,000 |
|
| 315 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 1,340 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Software 0.35% |
|
|
|
|
|
|
|
Rovi Corp.* |
|
| 33,000 |
|
| 571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
| Shares |
| Fair |
| ||
| |||||||
Specialty Retail 0.94% |
|
|
|
|
|
|
|
Home Depot, Inc. (The) |
|
| 22,700 |
| $ | 1,519 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Tobacco 2.63% |
|
|
|
|
|
|
|
Altria Group, Inc. |
|
| 51,600 |
|
| 1,738 |
|
Philip Morris International, Inc. |
|
| 28,400 |
|
| 2,504 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 4,242 |
|
|
|
|
|
|
| ||
Total Common Stocks |
|
|
|
|
| 160,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
|
|
| ||
| |||||||
SHORT-TERM INVESTMENT 1.22% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase Agreement |
|
|
|
|
|
|
|
Repurchase Agreement dated 1/31/2013, 0.01% due 2/1/2013 with Fixed Income Clearing Corp. collateralized by $2,000,000 of U.S. Treasury Note at 0.375% due 6/15/2015; value: $2,003,468; proceeds: $1,963,221 (cost $1,963,220) |
| $ | 1,963 |
|
| 1,963 |
|
|
|
|
|
|
| ||
Total Investments in Securities 100.71% |
|
|
|
|
| 162,550 |
|
|
|
|
|
|
| ||
Liabilities in Excess of Cash and Other Assets(b) (0.71)% |
|
|
|
|
| (1,138 | ) |
|
|
|
|
|
| ||
Net Assets 100.00% |
|
|
|
| $ | 161,412 |
|
|
|
|
|
|
|
|
|
* | Non-income producing security. |
(a) | Foreign security traded in U.S. dollars. |
(b) | Liabilities in Excess of Cash and Other Assets include net unrealized depreciation on futures contracts as follows: |
Open Futures Contracts at January 31, 2013:
|
|
|
|
|
|
Type | Expiration | Contracts | Position | Fair | Unrealized |
E-Mini S&P 500 Index | March 2013 | 3 | Long | $223,995 | $(112) |
|
|
|
| See Notes to Financial Statements. | 7 |
Schedule of Investments (unaudited)
CALIBRATED MID CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
Investments |
| Shares |
| Fair |
| ||
| |||||||
COMMON STOCKS 99.80% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Defense 0.76% |
|
|
|
|
|
|
|
Triumph Group, Inc. |
|
| 22,300 |
| $ | 1,569 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Airlines 0.56% |
|
|
|
|
|
|
|
Copa Holdings SA Class A (Panama)(a) |
|
| 10,500 |
|
| 1,151 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Auto Components 0.96% |
|
|
|
|
|
|
|
Lear Corp. |
|
| 22,800 |
|
| 1,117 |
|
TRW Automotive Holdings Corp.* |
|
| 15,100 |
|
| 870 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 1,987 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Beverages 1.15% |
|
|
|
|
|
|
|
Molson Coors Brewing Co. Class B |
|
| 52,800 |
|
| 2,386 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Capital Markets 3.55% |
|
|
|
|
|
|
|
Ares Capital Corp. |
|
| 242,600 |
|
| 4,345 |
|
Federated Investors, Inc. |
|
|
|
|
|
|
|
Class B |
|
| 126,900 |
|
| 3,002 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 7,347 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Chemicals 4.43% |
|
|
|
|
|
|
|
Ashland, Inc. |
|
| 49,300 |
|
| 3,870 |
|
CF Industries Holdings, Inc. |
|
| 16,650 |
|
| 3,816 |
|
Huntsman Corp. |
|
| 24,800 |
|
| 437 |
|
Kronos Worldwide, Inc. |
|
| 54,200 |
|
| 1,051 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 9,174 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Commercial Banks 4.80% |
|
|
|
|
|
|
|
CIT Group, Inc.* |
|
| 101,400 |
|
| 4,294 |
|
First Niagara Financial Group, Inc. |
|
| 254,000 |
|
| 1,992 |
|
M&T Bank Corp. |
|
| 10,400 |
|
| 1,068 |
|
SunTrust Banks, Inc. |
|
| 91,200 |
|
| 2,587 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 9,941 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Computers & Peripherals 0.99% |
|
|
|
|
|
|
|
NCR Corp.* |
|
| 24,800 |
|
| 689 |
|
NetApp, Inc.* |
|
| 37,900 |
|
| 1,364 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 2,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
| Shares |
| Fair |
| ||
| |||||||
Construction & Engineering 2.31% |
|
|
|
|
|
|
|
Fluor Corp. |
|
| 53,500 |
| $ | 3,468 |
|
URS Corp. |
|
| 31,600 |
|
| 1,311 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 4,779 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Containers & Packaging 2.01% |
|
|
|
|
|
|
|
Owens-Illinois, Inc.* |
|
| 22,800 |
|
| 543 |
|
Rock-Tenn Co. Class A |
|
| 45,800 |
|
| 3,616 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 4,159 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Diversified Financial Services 0.94% |
|
|
|
|
|
|
|
McGraw-Hill Cos., Inc. (The) |
|
| 12,600 |
|
| 725 |
|
NASDAQ OMX Group, Inc. (The) |
|
| 43,200 |
|
| 1,223 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 1,948 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Electric: Utilities 7.66% |
|
|
|
|
|
|
|
Edison International |
|
| 59,900 |
|
| 2,887 |
|
Entergy Corp. |
|
| 38,600 |
|
| 2,494 |
|
Great Plains Energy, Inc. |
|
| 133,100 |
|
| 2,848 |
|
NV Energy, Inc. |
|
| 173,400 |
|
| 3,282 |
|
PPL Corp. |
|
| 143,100 |
|
| 4,334 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 15,845 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Electrical Equipment 2.10% |
|
|
|
|
|
|
|
Eaton Corp. plc (Ireland)(a) |
|
| 76,400 |
|
| 4,351 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Electronic Equipment, Instruments |
|
|
|
|
|
|
|
& Components 1.31% |
|
|
|
|
|
|
|
FLIR Systems, Inc. |
|
| 38,600 |
|
| 918 |
|
Jabil Circuit, Inc. |
|
| 94,300 |
|
| 1,783 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 2,701 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Energy Equipment & Services 1.95% |
|
|
|
|
|
|
|
Nabors Industries Ltd.* |
|
| 62,600 |
|
| 1,044 |
|
Rowan Cos., plc Class A* |
|
| 86,900 |
|
| 2,996 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 4,040 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Food Products 3.35% |
|
|
|
|
|
|
|
Bunge Ltd. |
|
| 28,600 |
|
| 2,278 |
|
Campbell Soup Co. |
|
| 83,000 |
|
| 3,047 |
|
H.J. Heinz Co. |
|
| 26,600 |
|
| 1,613 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 6,938 |
|
|
|
|
|
|
|
|
|
|
8 | See Notes to Financial Statements. |
Schedule of Investments (unaudited)(continued)
CALIBRATED MID CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
| Shares |
| Fair |
| |
| |||||||||||
Health Care Equipment & Supplies 1.35% |
|
|
|
|
|
|
|
|
|
|
|
St. Jude Medical, Inc. |
|
|
|
|
|
| 68,600 |
| $ | 2,792 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Providers & Services 4.13% |
|
|
|
|
|
|
|
|
|
|
|
CIGNA Corp. |
|
|
|
|
|
| 51,500 |
|
| 3,004 |
|
Community Health Systems, Inc. |
|
|
|
|
|
| 57,600 |
|
| 2,208 |
|
HCA Holdings, Inc. |
|
|
|
|
|
| 73,900 |
|
| 2,782 |
|
Universal Health Services, Inc. |
|
|
|
|
|
|
|
|
|
|
|
Class B |
|
|
|
|
|
| 9,600 |
|
| 544 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 8,538 |
|
|
|
|
|
|
|
|
|
|
| ||
Hotels, Restaurants & Leisure 0.63% |
|
|
|
|
|
|
|
|
|
|
|
Brinker International, Inc. |
|
|
|
|
|
| 39,900 |
|
| 1,306 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Household Durables 1.15% |
|
|
|
|
|
|
|
|
|
|
|
Leggett & Platt, Inc. |
|
|
|
|
|
| 80,900 |
|
| 2,382 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Independent Power Producers & Energy Traders 1.84% |
|
|
|
|
|
|
|
|
|
|
|
AES Corp. (The) |
|
|
|
|
|
| 351,500 |
|
| 3,810 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Information Technology Services 2.60% |
|
|
|
|
|
|
|
|
|
|
|
Broadridge Financial Solutions, Inc. |
|
|
|
|
|
| 60,100 |
|
| 1,417 |
|
Paychex, Inc. |
|
|
|
|
|
| 121,500 |
|
| 3,964 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 5,381 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Insurance 8.46% |
|
|
|
|
|
|
|
|
|
|
|
Aspen Insurance Holdings Ltd. |
|
|
|
|
|
| 33,900 |
|
| 1,156 |
|
Everest Re Group Ltd. |
|
|
|
|
|
| 39,600 |
|
| 4,586 |
|
Hanover Insurance Group, Inc. (The) |
|
|
|
|
|
| 11,500 |
|
| 478 |
|
Hartford Financial Services Group, Inc. |
|
|
|
|
|
| 119,500 |
|
| 2,964 |
|
Lincoln National Corp. |
|
|
|
|
|
| 82,000 |
|
| 2,377 |
|
Protective Life Corp. |
|
|
|
|
|
| 72,100 |
|
| 2,281 |
|
Unum Group |
|
|
|
|
|
| 61,700 |
|
| 1,438 |
|
XL Group plc (Ireland)(a) |
|
|
|
|
|
| 80,700 |
|
| 2,237 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 17,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
| Shares |
| Fair |
| |
| |||||||||||
Leisure Equipment & Products 1.97% |
|
|
|
|
|
|
|
|
|
|
|
Hasbro, Inc. |
|
|
|
|
|
| 75,541 |
| $ | 2,823 |
|
Mattel, Inc. |
|
|
|
|
|
| 33,200 |
|
| 1,249 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,072 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Machinery 3.56% |
|
|
|
|
|
|
|
|
|
|
|
Dover Corp. |
|
|
|
|
|
| 35,500 |
|
| 2,456 |
|
Flowserve Corp. |
|
|
|
|
|
| 12,400 |
|
| 1,944 |
|
Manitowoc Co., Inc. (The) |
|
|
|
|
|
| 116,000 |
|
| 2,041 |
|
PACCAR, Inc. |
|
|
|
|
|
| 19,800 |
|
| 932 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 7,373 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Media 0.20% |
|
|
|
|
|
|
|
|
|
|
|
Gannett Co., Inc. |
|
|
|
|
|
| 21,100 |
|
| 414 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Metals & Mining 0.19% |
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies, Inc. |
|
|
|
|
|
| 12,700 |
|
| 402 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Line Retail 1.67% |
|
|
|
|
|
|
|
|
|
|
|
Kohl’s Corp. |
|
|
|
|
|
| 74,800 |
|
| 3,462 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Office Electronics 0.81% |
|
|
|
|
|
|
|
|
|
|
|
Xerox Corp. |
|
|
|
|
|
| 209,800 |
|
| 1,681 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 8.17% |
|
|
|
|
|
|
|
|
|
|
|
Denbury Resources, Inc.* |
|
|
|
|
|
| 207,100 |
|
| 3,858 |
|
Marathon Petroleum Corp. |
|
|
|
|
|
| 29,800 |
|
| 2,212 |
|
Murphy Oil Corp. |
|
|
|
|
|
| 45,000 |
|
| 2,678 |
|
Noble Energy, Inc. |
|
|
|
|
|
| 24,600 |
|
| 2,652 |
|
SM Energy Co. |
|
|
|
|
|
| 18,918 |
|
| 1,100 |
|
Tesoro Corp. |
|
|
|
|
|
| 15,900 |
|
| 774 |
|
Valero Energy Corp. |
|
|
|
|
|
| 83,000 |
|
| 3,630 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 16,904 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Personal Products 0.43% |
|
|
|
|
|
|
|
|
|
|
|
Avon Products, Inc. |
|
|
|
|
|
| 52,300 |
|
| 888 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals 2.35% |
|
|
|
|
|
|
|
|
|
|
|
Actavis, Inc.* |
|
|
|
|
|
| 20,900 |
|
| 1,806 |
|
Mylan, Inc.* |
|
|
|
|
|
| 108,400 |
|
| 3,064 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements. | 9 |
Schedule of Investments (unaudited)(continued)
CALIBRATED MID CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
| Shares |
| Fair |
| |
| |||||||||||
Professional Services 1.17% |
|
|
|
|
|
|
|
|
|
|
|
Towers Watson & Co. Class A |
|
|
|
|
|
| 39,600 |
| $ | 2,419 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Investment Trusts 11.92% |
|
|
|
|
|
|
|
|
|
|
|
Alexandria Real Estate Equities, Inc. |
|
|
|
|
|
| 11,200 |
|
| 812 |
|
American Capital Agency Corp. |
|
|
|
|
|
| 46,600 |
|
| 1,474 |
|
Annaly Capital Management, Inc. |
|
|
|
|
|
| 56,500 |
|
| 840 |
|
AvalonBay Communities, Inc. |
|
|
|
|
|
| 2,750 |
|
| 357 |
|
BioMed Realty Trust, Inc. |
|
|
|
|
|
| 50,700 |
|
| 1,032 |
|
Boston Properties, Inc. |
|
|
|
|
|
| 4,100 |
|
| 432 |
|
Brandywine Realty Trust |
|
|
|
|
|
| 67,800 |
|
| 863 |
|
Camden Property Trust |
|
|
|
|
|
| 14,700 |
|
| 1,020 |
|
CBL & Associates Properties, Inc. |
|
|
|
|
|
| 45,800 |
|
| 984 |
|
CommonWealth REIT |
|
|
|
|
|
| 24,800 |
|
| 408 |
|
DDR Corp. |
|
|
|
|
|
| 68,200 |
|
| 1,131 |
|
HCP, Inc. |
|
|
|
|
|
| 17,700 |
|
| 821 |
|
Health Care REIT, Inc. |
|
|
|
|
|
| 29,100 |
|
| 1,829 |
|
Home Properties, Inc. |
|
|
|
|
|
| 13,900 |
|
| 854 |
|
Host Hotels & Resorts, Inc. |
|
|
|
|
|
| 19,500 |
|
| 327 |
|
Kimco Realty Corp. |
|
|
|
|
|
| 68,200 |
|
| 1,417 |
|
Liberty Property Trust |
|
|
|
|
|
| 27,900 |
|
| 1,093 |
|
Macerich Co. (The) |
|
|
|
|
|
| 8,100 |
|
| 484 |
|
Mack-Cali Realty Corp. |
|
|
|
|
|
| 29,000 |
|
| 788 |
|
Mid-America Apartment Communities, Inc. |
|
|
|
|
|
| 17,400 |
|
| 1,137 |
|
Plum Creek Timber Co., Inc. |
|
|
|
|
|
| 11,300 |
|
| 544 |
|
ProLogis, Inc. |
|
|
|
|
|
| 25,200 |
|
| 1,006 |
|
Senior Housing Properties Trust |
|
|
|
|
|
| 43,500 |
|
| 1,048 |
|
Ventas, Inc. |
|
|
|
|
|
| 32,000 |
|
| 2,121 |
|
Vornado Realty Trust |
|
|
|
|
|
| 16,600 |
|
| 1,402 |
|
Weyerhaeuser Co. |
|
|
|
|
|
| 14,600 |
|
| 440 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 24,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
| Shares |
| Fair |
| |
| |||||||||||
Semiconductors & Semiconductor Equipment 3.06% |
|
|
|
|
|
|
|
|
|
|
|
Analog Devices, Inc. |
|
|
|
|
|
| 61,600 |
| $ | 2,688 |
|
Maxim Integrated Products, Inc. |
|
|
|
|
|
| 116,100 |
|
| 3,652 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 6,340 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Software 0.79% |
|
|
|
|
|
|
|
|
|
|
|
Activision Blizzard, Inc. |
|
|
|
|
|
| 36,800 |
|
| 419 |
|
Rovi Corp.* |
|
|
|
|
|
| 41,300 |
|
| 714 |
|
Symantec Corp.* |
|
|
|
|
|
| 23,100 |
|
| 503 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 1,636 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Retail 1.62% |
|
|
|
|
|
|
|
|
|
|
|
Aaron’s, Inc. |
|
|
|
|
|
| 13,700 |
|
| 406 |
|
DSW, Inc. Class A |
|
|
|
|
|
| 8,900 |
|
| 596 |
|
Tiffany & Co. |
|
|
|
|
|
| 35,900 |
|
| 2,360 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 3,362 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods 0.38% |
|
|
|
|
|
|
|
|
|
|
|
Deckers Outdoor Corp.* |
|
|
|
|
|
| 19,500 |
|
| 779 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Thrifts & Mortgage Finance 1.00% |
|
|
|
|
|
|
|
|
|
|
|
People’s United Financial, Inc. |
|
|
|
|
|
| 168,200 |
|
| 2,071 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Tobacco 0.49% |
|
|
|
|
|
|
|
|
|
|
|
Lorillard, Inc. |
|
|
|
|
|
| 25,700 |
|
| 1,004 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors 0.58% |
|
|
|
|
|
|
|
|
|
|
|
Air Lease Corp.* |
|
|
|
|
|
| 50,300 |
|
| 1,201 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Telecommunication Services 0.45% |
|
|
|
|
|
|
|
|
|
|
|
Telephone & Data Systems, Inc. |
|
|
|
|
|
| 36,400 |
|
| 921 |
|
|
|
|
|
|
|
|
|
|
| ||
Total Common Stocks |
|
|
|
|
|
|
|
|
| 206,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 | See Notes to Financial Statements. |
Schedule of Investments (unaudited)(concluded)
CALIBRATED MID CAP VALUE FUND January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
| Principal |
| Fair |
| |
| |||||||||||
SHORT-TERM INVESTMENT 0.47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase Agreement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase Agreement dated 1/31/2013, 0.01% due 2/1/2013 with Fixed Income Clearing Corp. collateralized by $995,000 of Federal National Mortgage Assoc. at 3.25% due 12/27/2032 value: $990,025; proceeds: $966,772 (cost $966,772) |
| $ | 967 |
| $ | 967 |
| ||||
|
|
|
|
|
|
|
|
|
| ||
Total Investments in Securities 100.27% |
|
|
|
|
|
|
|
| $ | 207,525 |
|
|
|
|
|
|
|
|
|
|
| ||
Liabilities in Excess of Other Assets(b) (0.27)% |
|
|
|
|
|
|
|
|
| (563 | ) |
|
|
|
|
|
|
|
|
|
| ||
Net Assets 100.00% |
|
|
|
|
|
|
|
| $ | 206,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Non-income producing security. |
(a) | Foreign security traded in U.S. dollars. |
(b) | Liabilities in Excess of Other Assets include net unrealized depreciation on futures contracts as follows: |
Open Futures Contracts at January 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type |
| Expiration |
| Contracts |
| Position |
| Fair |
| Unrealized |
| |||||
| ||||||||||||||||
E-Mini S&P 500 Index |
|
| March 2013 |
|
| 4 |
|
| Long |
|
| $298,660 |
|
| $ (149 | ) |
|
|
|
See Notes to Financial Statements. | 11 |
Statements of Assets and Liabilities (unaudited)
January 31, 2013
|
|
|
|
|
|
|
|
|
| Calibrated Large |
| Calibrated Mid |
| ||
ASSETS: |
|
|
|
|
|
|
|
Investments in securities, at cost |
| $ | 151,162,542 |
| $ | 188,967,547 |
|
Investments in securities, at fair value |
| $ | 162,549,710 |
| $ | 207,525,113 |
|
Cash |
|
| 14,000 |
|
| — |
|
Deposits with brokers for futures collateral |
|
| 10,500 |
|
| — |
|
Receivables: |
|
|
|
|
|
|
|
Investment securities sold |
|
| — |
|
| 1,070,549 |
|
Capital shares sold |
|
| 1,185,034 |
|
| 139,355 |
|
Dividends |
|
| 151,323 |
|
| 102,930 |
|
From advisor (See Note 3) |
|
| 42,293 |
|
| 44,122 |
|
Variation margin |
|
| 224 |
|
| — |
|
Prepaid expenses |
|
| 35,697 |
|
| 34,906 |
|
Total assets |
|
| 163,988,781 |
|
| 208,916,975 |
|
LIABILITIES: |
|
|
|
|
|
|
|
Payables: |
|
|
|
|
|
|
|
Investment securities purchased |
|
| 2,389,952 |
|
| 1,728,048 |
|
Capital shares reacquired |
|
| 22,862 |
|
| 1,023 |
|
12b-1 distribution fees |
|
| 13,230 |
|
| 1,873 |
|
Management fee |
|
| 73,405 |
|
| 100,960 |
|
Trustees’ fees |
|
| 916 |
|
| 1,161 |
|
Fund administration |
|
| 4,894 |
|
| 6,731 |
|
To affiliates (See Note 3) |
|
| 30,853 |
|
| 67,076 |
|
Variation margin |
|
| — |
|
| 103 |
|
Accrued expenses and other liabilities |
|
| 41,067 |
|
| 48,299 |
|
Total liabilities |
|
| 2,577,179 |
|
| 1,955,274 |
|
NET ASSETS |
| $ | 161,411,602 |
| $ | 206,961,701 |
|
COMPOSITION OF NET ASSETS: |
|
|
|
|
|
|
|
Paid-in capital |
| $ | 146,798,692 |
| $ | 186,182,690 |
|
Undistributed net investment income |
|
| 206,435 |
|
| 163,698 |
|
Accumulated net realized gain on investments and futures contracts |
|
| 3,019,419 |
|
| 2,057,896 |
|
Net unrealized appreciation on investments and futures contracts |
|
| 11,387,056 |
|
| 18,557,417 |
|
Net Assets |
| $ | 161,411,602 |
| $ | 206,961,701 |
|
|
|
|
12 | See Notes to Financial Statements. |
Statements of Assets and Liabilities (unaudited)(concluded)
January 31, 2013
|
|
|
|
|
|
|
|
|
| Calibrated Large |
| Calibrated Mid |
| ||
Net assets by class: |
|
|
|
|
|
|
|
Class A Shares |
| $ | 52,917,777 |
| $ | 7,867,660 |
|
Class C Shares |
| $ | 1,134,823 |
| $ | 562,650 |
|
Class F Shares |
| $ | 4,921,005 |
| $ | 1,093,665 |
|
Class I Shares |
| $ | 102,368,983 |
| $ | 197,412,342 |
|
Class R2 Shares |
| $ | 13,201 |
| $ | 12,688 |
|
Class R3 Shares |
| $ | 55,813 |
| $ | 12,696 |
|
Outstanding shares by class |
|
|
|
|
|
|
|
Class A Shares |
|
| 2,825,908 |
|
| 428,109 |
|
Class C Shares |
|
| 61,014 |
|
| 30,824 |
|
Class F Shares |
|
| 262,780 |
|
| 59,538 |
|
Class I Shares |
|
| 5,462,714 |
|
| 10,730,125 |
|
Class R2 Shares |
|
| 703 |
|
| 689 |
|
Class R3 Shares |
|
| 2,985 |
|
| 689.316 |
|
Net asset value, offering and redemption price per share |
|
|
|
|
|
|
|
Class A Shares-Net asset value |
|
| $18.73 |
|
| $18.38 |
|
Class A Shares-Maximum offering price |
|
| $19.87 |
|
| $19.50 |
|
Class C Shares-Net asset value |
|
| $18.60 |
|
| $18.25 |
|
Class F Shares-Net asset value |
|
| $18.73 |
|
| $18.37 |
|
Class I Shares-Net asset value |
|
| $18.74 |
|
| $18.40 |
|
Class R2 Shares-Net asset value |
|
| $18.78 |
|
| $18.42 |
|
Class R3 Shares-Net asset value |
|
| $18.70 |
|
| $18.42 |
|
|
|
|
See Notes to Financial Statements. | 13 |
Statements of Operations (unaudited)
For the Six Months Ended January 31, 2013
|
|
|
|
|
|
|
|
|
| Calibrated Large |
| Calibrated Mid |
| ||
Investment income: |
|
|
|
|
|
|
|
Dividends |
| $ | 1,592,272 |
| $ | 2,872,792 |
|
Interest and other |
|
| 24,212 |
|
| 12,647 |
|
Total investment income |
|
| 1,616,484 |
|
| 2,885,439 |
|
Expenses: |
|
|
|
|
|
|
|
Management fee |
|
| 338,930 |
|
| 510,598 |
|
12b-1 distribution plan-Class A |
|
| 52,124 |
|
| 16,303 |
|
12b-1 distribution plan-Class C |
|
| 1,702 |
|
| 550 |
|
12b-1 distribution plan-Class F |
|
| 1,494 |
|
| 189 |
|
12b-1 distribution plan-Class R2 |
|
| — |
|
| — |
|
12b-1 distribution plan-Class R3 |
|
| 71 |
|
| — |
|
Shareholder servicing |
|
| 9,252 |
|
| 7,015 |
|
Professional |
|
| 21,931 |
|
| 22,012 |
|
Reports to shareholders |
|
| 2,618 |
|
| 3,992 |
|
Fund administration |
|
| 22,595 |
|
| 34,040 |
|
Custody |
|
| 16,872 |
|
| 16,419 |
|
Trustees’ fees |
|
| 1,342 |
|
| 2,015 |
|
Registration |
|
| 19,390 |
|
| 19,229 |
|
Offering costs |
|
| 10,873 |
|
| 9,728 |
|
Subsidy (See Note 3) |
|
| 51,816 |
|
| 129,159 |
|
Other |
|
| 2,129 |
|
| 2,277 |
|
Gross expenses |
|
| 553,139 |
|
| 773,526 |
|
Expense reductions (See Note 7) |
|
| (18 | ) |
| (6 | ) |
Management fee waived and expense reimbursed (See Note 3) |
|
| (215,304 | ) |
| (245,880 | ) |
Net expenses |
|
| 337,817 |
|
| 527,640 |
|
Net investment income |
|
| 1,278,667 |
|
| 2,357,799 |
|
Net realized and unrealized gain: |
|
|
|
|
|
|
|
Net realized gain on investments and futures contracts |
|
| 4,225,687 |
|
| 5,414,501 |
|
Net change in unrealized appreciation/depreciation on investments and futures contracts |
|
| 7,954,665 |
|
| 17,734,335 |
|
Net realized and unrealized gain |
|
| 12,180,352 |
|
| 23,148,836 |
|
Net Increase in Net Assets Resulting From Operations |
| $ | 13,459,019 |
| $ | 25,506,635 |
|
|
|
|
14 | See Notes to Financial Statements. |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Calibrated Large Cap Value Fund |
| ||||
|
| ||||||
INCREASE IN NET ASSETS |
| For the Six Months |
| For the Period Ended |
| ||
Operations: |
|
|
|
|
|
|
|
Net investment income |
| $ | 1,278,667 |
| $ | 359,193 |
|
Net realized gain on investments and futures contracts |
|
| 4,225,687 |
|
| 1,449,397 |
|
Net change in unrealized appreciation/depreciation on |
|
| 7,954,665 |
|
| 3,432,391 |
|
Net increase in net assets resulting from operations |
|
| 13,459,019 |
|
| 5,240,981 |
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
Class A |
|
| (497,800 | ) |
| — |
|
Class C |
|
| (3,177 | ) |
| — |
|
Class F |
|
| (44,435 | ) |
| — |
|
Class I |
|
| (905,141 | ) |
| — |
|
Class R2 |
|
| (89 | ) |
| — |
|
Class R3 |
|
| (638 | ) |
| — |
|
Net realized gain |
|
|
|
|
|
|
|
Class A |
|
| (998,632 | ) |
| — |
|
Class C |
|
| (7,295 | ) |
| — |
|
Class F |
|
| (79,317 | ) |
| — |
|
Class I |
|
| (1,568,912 | ) |
| — |
|
Class R2 |
|
| (264 | ) |
| — |
|
Class R3 |
|
| (1,245 | ) |
| — |
|
Total distributions to shareholders |
|
| (4,106,945 | ) |
| — |
|
Capital share transactions (See Note 11): |
|
|
|
|
|
|
|
Net proceeds from sales of shares |
|
| 104,610,790 |
|
| 67,412,606 |
|
Reinvestment of distributions |
|
| 3,539,403 |
|
| — |
|
Cost of shares reacquired |
|
| (26,295,295 | ) |
| (2,448,957 | ) |
Net increase in net assets resulting from capital |
|
| 81,854,898 |
|
| 64,963,649 |
|
Net increase in net assets |
|
| 91,206,972 |
|
| 70,204,630 |
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of period |
| $ | 70,204,630 |
| $ | — |
|
End of period |
| $ | 161,411,602 |
| $ | 70,204,630 |
|
Undistributed net investment income |
| $ | 206,435 |
| $ | 379,048 |
|
|
|
* | For the period December 21, 2011 (commencement of operations) to July 31, 2012. |
|
|
|
| See Notes to Financial Statements. | 15 |
Statements of Changes in Net Assets (concluded)
|
|
|
|
|
|
|
|
|
| Calibrated Mid Cap Value Fund |
| ||||
|
| ||||||
INCREASE IN NET ASSETS |
| For the Six Months |
| For the Period Ended |
| ||
Operations: |
|
|
|
|
|
|
|
Net investment income |
| $ | 2,357,799 |
| $ | 306,642 |
|
Net realized gain on investments and futures contracts |
|
| 5,414,501 |
|
| 392,102 |
|
Net change in unrealized appreciation/depreciation on |
|
| 17,734,335 |
|
| 823,082 |
|
Net increase in net assets resulting from operations |
|
| 25,506,635 |
|
| 1,521,826 |
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
Class A |
|
| (177,304 | ) |
| — |
|
Class C |
|
| (1,213 | ) |
| — |
|
Class F |
|
| (5,384 | ) |
| — |
|
Class I |
|
| (2,333,838 | ) |
| — |
|
Class R2 |
|
| (110 | ) |
| — |
|
Class R3 |
|
| (120 | ) |
| — |
|
Net realized gain |
|
|
|
|
|
|
|
Class A |
|
| (355,469 | ) |
| — |
|
Class C |
|
| (2,010 | ) |
| — |
|
Class F |
|
| (7,988 | ) |
| — |
|
Class I |
|
| (3,382,734 | ) |
| — |
|
Class R2 |
|
| (253 | ) |
| — |
|
Class R3 |
|
| (253 | ) |
| — |
|
Total distributions to shareholders |
|
| (6,266,676 | ) |
| — |
|
Capital share transactions (See Note 11): |
|
|
|
|
|
|
|
Net proceeds from sales of shares |
|
| 73,920,374 |
|
| 123,859,997 |
|
Reinvestment of distributions |
|
| 6,135,456 |
|
| — |
|
Cost of shares reacquired |
|
| (12,997,844 | ) |
| (4,718,067 | ) |
Net increase in net assets resulting from capital |
|
| 67,057,986 |
|
| 119,141,930 |
|
Net increase in net assets |
|
| 86,297,945 |
|
| 120,663,756 |
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of period |
| $ | 120,663,756 |
| $ | — |
|
End of period |
| $ | 206,961,701 |
| $ | 120,663,756 |
|
Undistributed net investment income |
| $ | 163,698 |
| $ | 323,868 |
|
|
|
* | For the period December 21, 2011 (commencement of operations) to July 31, 2012. |
|
|
|
16 | See Notes to Financial Statements. |
|
|
Financial Highlights |
CALIBRATED LARGE CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
| Class A Shares | ||||||
|
| |||||||
|
| Six Months Ended |
| 12/21/2011(a) | ||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
| $17.18 |
|
|
| $15.00 |
|
|
|
|
|
|
|
| ||
Investment operations: |
|
|
|
|
|
|
|
|
Net investment income(b) |
|
| .19 |
|
|
| .19 |
|
Net realized and unrealized gain |
|
| 1.96 |
|
|
| 1.99 |
|
|
|
|
|
|
|
| ||
Total from investment operations |
|
| 2.15 |
|
|
| 2.18 |
|
|
|
|
|
|
|
| ||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
Net investment income |
|
| (.20 | ) |
|
| — |
|
Net realized gain |
|
| (.40 | ) |
|
| — |
|
|
|
|
|
|
|
| ||
Total distributions |
|
| (.60 | ) |
|
| — |
|
|
|
|
|
|
|
| ||
Net asset value, end of period |
|
| $18.73 |
|
|
| $17.18 |
|
|
|
|
|
|
|
| ||
Total Return(c) |
|
| 12.80 | %(d) |
|
| 14.53 | %(d) |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
Expenses, excluding expense reductions and including |
|
|
|
|
|
|
|
|
management fee waived and expenses reimbursed |
|
| .38 | %(d) |
|
| .73 | %(e) |
Expenses, including expense reductions, management fee |
|
|
|
|
|
|
|
|
waived and expenses reimbursed |
|
| .38 | %(d) |
|
| .73 | %(e) |
Expenses, excluding expense reductions, management fee |
|
|
|
|
|
|
|
|
waived and expenses reimbursed |
|
| .57 | %(d) |
|
| 1.41 | %(e) |
Net investment income |
|
| 1.06 | %(d) |
|
| 1.89 | %(e) |
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $52,918 |
|
|
| $35,932 |
|
Portfolio turnover rate |
|
| 60.03 | %(d) |
|
| 62.31 | % |
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
| See Notes to Financial Statements. | 17 |
|
Financial Highlights (continued) |
CALIBRATED LARGE CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
| Class C Shares | ||||||
|
| |||||||
|
| Six Months Ended |
| 12/21/2011(a) | ||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
| $17.10 |
|
|
| $15.00 |
|
|
|
|
|
|
|
| ||
Investment operations: |
|
|
|
|
|
|
|
|
Net investment income(b) |
|
| .10 |
|
|
| .15 |
|
Net realized and unrealized gain |
|
| 1.97 |
|
|
| 1.95 |
|
|
|
|
|
|
|
| ||
Total from investment operations |
|
| 2.07 |
|
|
| 2.10 |
|
|
|
|
|
|
|
| ||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
Net investment income |
|
| (.17 | ) |
|
| — |
|
Net realized gain |
|
| (.40 | ) |
|
| — |
|
|
|
|
|
|
|
| ||
Total distributions |
|
| (.57 | ) |
|
| — |
|
|
|
|
|
|
|
| ||
Net asset value, end of period |
|
| $18.60 |
|
|
| $17.10 |
|
|
|
|
|
|
|
| ||
Total Return(c) |
|
| 12.40 | %(d) |
|
| 14.00 | %(d) |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
Expenses, excluding expense reductions and including management |
|
|
|
|
|
|
|
|
fee waived and expenses reimbursed |
|
| .74 | %(d) |
|
| 1.47 | %(e) |
Expenses, including expense reductions, management fee |
|
|
|
|
|
|
|
|
waived and expenses reimbursed |
|
| .74 | %(d) |
|
| 1.47 | %(e) |
Expenses, excluding expense reductions, management fee |
|
|
|
|
|
|
|
|
waived and expenses reimbursed |
|
| .93 | %(d) |
|
| 2.15 | %(e) |
Net investment income |
|
| .54 | %(d) |
|
| 1.44 | %(e) |
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $1,135 |
|
|
| $61 |
|
Portfolio turnover rate |
|
| 60.03 | %(d) |
|
| 62.31 | % |
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
18 | See Notes to Financial Statements. |
|
|
Financial Highlights (continued) |
CALIBRATED LARGE CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class F Shares | |||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
| $ | 17.19 |
|
|
| $ | 15.00 |
|
|
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .22 |
|
|
|
| .20 |
|
|
Net realized and unrealized gain |
|
|
| 1.94 |
|
|
|
| 1.99 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.16 |
|
|
|
| 2.19 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.22 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.40 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.62 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $ | 18.73 |
|
|
| $ | 17.19 |
|
|
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 12.89 | %(d) |
|
|
| 14.60 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Expenses, excluding expense reductions and including |
|
|
|
|
|
|
|
|
|
|
|
management fee waived and expenses reimbursed |
|
|
| .30 | %(d) |
|
|
| .58 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
|
|
|
|
|
|
|
|
|
waived and expenses reimbursed |
|
|
| .30 | %(d) |
|
|
| .58 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
|
|
|
|
|
|
|
|
|
waived and expenses reimbursed |
|
|
| .49 | %(d) |
|
|
| 1.33 | %(e) |
|
| |||||||||||
Net investment income |
|
|
| 1.22 | %(d) |
|
|
| 2.03 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $ | 4,921 |
|
|
| $ | 35 |
|
|
Portfolio turnover rate |
|
|
| 60.03 | %(d) |
|
|
| 62.31 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
| See Notes to Financial Statements. | 19 |
|
Financial Highlights (continued) |
CALIBRATED LARGE CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class I Shares | |||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
| $17.20 |
|
|
|
| $15.00 |
|
|
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .21 |
|
|
|
| .19 |
|
|
Net realized and unrealized gain |
|
|
| 1.96 |
|
|
|
| 2.01 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.17 |
|
|
|
| 2.20 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.23 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.40 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.63 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.74 |
|
|
| $17.20 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 12.92 | %(d) |
|
|
| 14.67 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .25 | %(d) |
|
|
| .49 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .25 | %(d) |
|
|
| .49 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .44 | %(d) |
|
|
| .94 | %(e) |
|
| |||||||||||
Net investment income |
|
|
| 1.18 | %(d) |
|
|
| 1.89 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $102,369 |
|
|
| $34,155 |
|
| ||
Portfolio turnover rate |
|
|
| 60.03 | %(d) |
|
|
| 62.31 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
20 | See Notes to Financial Statements. |
|
Financial Highlights (continued) |
CALIBRATED LARGE CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class R2 Shares | |||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
| $17.14 |
|
|
|
| $15.00 |
|
|
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .22 |
|
|
|
| .16 |
|
|
Net realized and unrealized gain |
|
|
| 1.95 |
|
|
|
| 1.98 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.17 |
|
|
|
| 2.14 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.13 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.40 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.53 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.78 |
|
|
| $17.14 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 12.95 | %(d) |
|
|
| 14.27 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .24 | %(d) |
|
|
| 1.06 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .24 | %(d) |
|
|
| 1.06 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .43 | %(d) |
|
|
| 1.81 | %(e) |
|
| |||||||||||
Net investment income |
|
|
| 1.22 | %(d) |
|
|
| 1.55 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
|
| $13 |
|
|
| $11 |
|
| |
Portfolio turnover rate |
|
|
| 60.03 | %(d) |
|
|
| 62.31 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
| See Notes to Financial Statements. | 21 |
|
Financial Highlights (concluded) |
CALIBRATED LARGE CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class R3 Shares | |||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
| $17.15 |
|
|
| $15.00 |
|
| ||
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .20 |
|
|
|
| .17 |
|
|
Net realized and unrealized gain |
|
|
| 1.95 |
|
|
|
| 1.98 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.15 |
|
|
|
| 2.15 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.20 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.40 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.60 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.70 |
|
|
| $17.15 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 12.85 | %(d) |
|
|
| 14.33 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .43 | %(d) |
|
|
| .96 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .43 | %(d) |
|
|
| .96 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .67 | %(d) |
|
|
| 1.71 | %(e) |
|
| |||||||||||
Net investment income |
|
|
| 1.15 | %(d) |
|
|
| 1.65 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $56 |
|
|
| $11 |
|
| ||
Portfolio turnover rate |
|
|
| 60.03 | %(d) |
|
|
| 62.31 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
22 | See Notes to Financial Statements. |
|
Financial Highlights |
CALIBRATED MID CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Shares | |||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
| $16.47 |
|
|
| $15.00 |
|
| ||
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .23 |
|
|
|
| .15 |
|
|
Net realized and unrealized gain |
|
|
| 2.28 |
|
|
|
| 1.32 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.51 |
|
|
|
| 1.47 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.22 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.38 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.60 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.38 |
|
|
| $16.47 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 15.65 | %(d) |
|
|
| 9.80 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .43 | %(d) |
|
|
| .83 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .43 | %(d) |
|
|
| .83 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .58 | %(d) |
|
|
| 1.63 | %(e) |
|
| |||||||||||
Net investment income |
|
|
| 1.33 | %(d) |
|
|
| 1.51 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $7,868 |
|
|
| $13,726 |
|
| ||
Portfolio turnover rate |
|
|
| 51.77 | %(d) |
|
|
| 76.72 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
| See Notes to Financial Statements. | 23 |
|
Financial Highlights (continued) |
CALIBRATED MID CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class C Shares |
| ||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
|
| $16.39 |
|
|
| $15.00 |
|
| ||
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .13 |
|
|
|
| .08 |
|
|
Net realized and unrealized gain |
|
|
| 2.30 |
|
|
|
| 1.31 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.43 |
|
|
|
| 1.39 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.19 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.38 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.57 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.25 |
|
|
| $16.39 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 15.24 | %(d) |
|
|
| 9.27 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .78 | %(d) |
|
|
| 1.54 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .78 | %(d) |
|
|
| 1.54 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .93 | %(d) |
|
|
| 2.38 | %(e) |
|
Net investment income |
|
|
| .74 | %(d) |
|
|
| .80 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $563 |
|
|
| $15 |
|
| ||
Portfolio turnover rate |
|
|
| 51.77 | %(d) |
|
|
| 76.72 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
24 | See Notes to Financial Statements. |
|
|
Financial Highlights (continued) |
CALIBRATED MID CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class F Shares |
| ||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
|
| $16.48 |
|
|
| $15.00 |
|
| ||
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .19 |
|
|
|
| .16 |
|
|
Net realized and unrealized gain |
|
|
| 2.33 |
|
|
|
| 1.32 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.52 |
|
|
|
| 1.48 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.25 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.38 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.63 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.37 |
|
|
| $16.48 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 15.75 | %(d) |
|
|
| 9.87 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .34 | %(d) |
|
|
| .68 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .34 | %(d) |
|
|
| .68 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .49 | %(d) |
|
|
| 1.51 | %(e) |
|
Net investment income |
|
|
| 1.11 | %(d) |
|
|
| 1.59 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $1,094 |
|
|
| $56 |
|
| ||
Portfolio turnover rate |
|
|
| 51.77 | %(d) |
|
|
| 76.72 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
| See Notes to Financial Statements. | 25 |
|
Financial Highlights (continued) |
CALIBRATED MID CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class I Shares |
| ||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
|
| $16.50 |
|
|
| $15.00 |
|
| ||
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .24 |
|
|
|
| .17 |
|
|
Net realized and unrealized gain |
|
|
| 2.30 |
|
|
|
| 1.33 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.54 |
|
|
|
| 1.50 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.26 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.38 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.64 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.40 |
|
|
| $16.50 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 15.83 | %(d) |
|
|
| 10.00 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .30 | %(d) |
|
|
| .58 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .30 | %(d) |
|
|
| .58 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .45 | %(d) |
|
|
| .95 | %(e) |
|
Net investment income |
|
|
| 1.40 | %(d) |
|
|
| 1.73 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $197,412 |
|
|
| $106,844 |
|
| ||
Portfolio turnover rate |
|
|
| 51.77 | %(d) |
|
|
| 76.72 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
26 | See Notes to Financial Statements. |
|
|
Financial Highlights (continued) |
CALIBRATED MID CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class R2 Shares |
| ||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
|
| $16.43 |
|
|
| $15.00 |
|
| ||
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .24 |
|
|
|
| .11 |
|
|
Net realized and unrealized gain |
|
|
| 2.29 |
|
|
|
| 1.32 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.53 |
|
|
|
| 1.43 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.16 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.38 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.54 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $18.42 |
|
|
| $16.43 |
|
| ||
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 15.81 | %(d) |
|
|
| 9.53 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .30 | %(d) |
|
|
| 1.15 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .30 | %(d) |
|
|
| 1.15 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .44 | %(d) |
|
|
| 2.01 | %(e) |
|
Net investment income |
|
|
| 1.40 | %(d) |
|
|
| 1.15 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
| $13 |
|
|
| $11 |
|
| ||
Portfolio turnover rate |
|
|
| 51.77 | %(d) |
|
|
| 76.72 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
| See Notes to Financial Statements. | 27 |
|
Financial Highlights (concluded) |
CALIBRATED MID CAP VALUE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class R3 Shares |
| ||||||||
|
| ||||||||||
|
| Six Months Ended |
| 12/21/2011(a) |
| ||||||
Per Share Operating Performance |
|
|
|
|
|
|
| ||||
Net asset value, beginning of period |
|
| $ | 16.44 |
|
|
| $ | 15.00 |
|
|
|
|
|
|
|
|
|
| ||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income(b) |
|
|
| .24 |
|
|
|
| .12 |
|
|
Net realized and unrealized gain |
|
|
| 2.30 |
|
|
|
| 1.32 |
|
|
|
|
|
|
|
|
|
| ||||
Total from investment operations |
|
|
| 2.54 |
|
|
|
| 1.44 |
|
|
|
|
|
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.18 | ) |
|
|
| — |
|
|
Net realized gain |
|
|
| (.38 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Total distributions |
|
|
| (.56 | ) |
|
|
| — |
|
|
|
|
|
|
|
|
|
| ||||
Net asset value, end of period |
|
| $ | 18.42 |
|
|
| $ | 16.44 |
|
|
|
|
|
|
|
|
|
| ||||
Total Return(c) |
|
|
| 15.85 | %(d) |
|
|
| 9.60 | %(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses, excluding expense reductions and including |
|
|
| .30 | %(d) |
|
|
| 1.05 | %(e) |
|
| |||||||||||
Expenses, including expense reductions, management fee |
|
|
| .30 | %(d) |
|
|
| 1.05 | %(e) |
|
| |||||||||||
Expenses, excluding expense reductions, management fee |
|
|
| .44 | %(d) |
|
|
| 1.91 | %(e) |
|
Net investment income |
|
|
| 1.40 | %(d) |
|
|
| 1.24 | %(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
|
| $13 |
|
|
|
| $11 |
|
|
Portfolio turnover rate |
|
|
| 51.77 | %(d) |
|
|
| 76.72 | % |
|
|
|
(a) | Commencement of operations was 12/21/2011, SEC effective date was 12/15/2011 and date shares first became available to the public was 1/3/2012. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
(e) | Annualized. |
|
|
|
28 | See Notes to Financial Statements. |
|
Notes to Financial Statements (unaudited)
|
|
|
1. | ORGANIZATION |
|
Lord Abbett Equity Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Trust was formed on May 1, 2001 and is organized as a Delaware statutory trust. The Trust currently consists of three funds. This report covers the following two funds (separately, a “Fund” and collectively, the “Funds”) and their respective classes: Lord Abbett Calibrated Large Cap Value Fund (“Calibrated Large Cap Value Fund”) and Lord Abbett Calibrated Mid Cap Value Fund (“Calibrated Mid Cap Value Fund”).
The investment objective of each Fund is total return. Each Fund has six classes of shares: Class A, C, F, I, R2 and R3, each with different expenses and dividends. A front-end sales charge is normally added to the net asset value (“NAV”) for Class A shares. There is no front-end sales charge in the case of Class C, F, I, R2 and R3 shares, although there may be a contingent deferred sales charge (“CDSC”) in certain cases as follows: Class A shares purchased without a sales charge and redeemed before the first day of the month in which the one-year anniversary of the purchase falls (subject to certain exceptions as set forth in each Fund’s prospectus); and Class C shares redeemed before the first anniversary of purchase.
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
|
|
|
2. | SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
(a) | Investment Valuation–Under procedures approved by the Funds’ Board of Trustees (the “Board”), Lord, Abbett & Co. LLC (“Lord Abbett”), the Funds’ investment manager, has formed a Pricing Committee to administer the pricing and valuation of portfolio investments and to ensure that prices utilized reasonably reflect fair value. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value. |
|
|
| Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. Each Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Exchange-traded options and futures contracts are valued at the last sale price in the market where they are principally traded. |
|
|
| Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee and approved by the Board. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information to determine fair value of |
29
Notes to Financial Statements (unaudited)(continued)
|
|
| portfolio investments. The Board or a designated committee thereof regularly reviews fair value determinations made by the Pricing Committee and employs techniques such as reviewing related market activity, reviewing inputs and assumptions, and retrospectively comparing prices of subsequent purchases and sales transactions to fair value determinations made by the Pricing Committee. |
|
|
| Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value. |
|
|
(b) | Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method. Realized and unrealized gains (losses) are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. |
|
|
(c) | Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest and other income on the Statements of Operations. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. |
|
|
(d) | Income Taxes–It is the policy of each Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required. |
|
|
| Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s filed U.S. federal tax returns remains open for the fiscal period ended July 31, 2012. The statutes of limitations on the Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. |
|
|
(e) | Expenses–Expenses, excluding class-specific expenses, are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Class A, C, F, R2 and R3 shares bear their class-specific share of all expenses and fees relating to the Funds’ 12b-1 Distribution Plan. |
|
|
(f) | Futures Contracts–Each Fund may purchase and sell index futures contracts to manage cash, or as a substitute position for holding the underlying asset on which the instrument is based. At the time of entering into a futures transaction, an investor is required to deposit and maintain a specified amount of cash or eligible securities called “initial margin.” Subsequent payments made or received by a fund called “variation margin” are made on a daily basis as the market price of the futures contract fluctuates. Each Fund will record an unrealized gain (loss) based on the amount of variation margin. When a contract is closed, a realized gain (loss) is recorded equal to the difference between the opening and closing value of the contract. |
|
|
(g) | Repurchase Agreements–Each Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. Each Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in |
30
Notes to Financial Statements (unaudited)(continued)
|
|
|
|
| excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the fair value of these securities has declined, a Fund may incur a loss upon disposition of the securities. | ||
|
|
| |
(h) | Fair Value Measurements–Fair value is defined as the price that each Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk—for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. | ||
| The three-tier hierarchy of inputs is summarized in the three broad Levels listed below: | ||
|
|
|
|
| • | Level 1 – | unadjusted quoted prices in active markets for identical investments; |
|
|
|
|
| • | Level 2 – | other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and |
|
|
|
|
| • | Level 3 – | significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments). |
|
|
| |
| Changes in valuation techniques may result in transfers into or out of an assigned level within the three-tier hierarchy. All transfers between different levels within the three-tier hierarchy are deemed to have occurred as of the beginning of the reporting period. 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, 2013 in valuing each Fund’s investments carried at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calibrated Large Cap Value Fund |
|
| Calibrated Mid Cap Value Fund |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Investment Type* |
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
|
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
| ||||||||
| ||||||||||||||||||||||||||
Common Stocks |
| $ | 160,587 |
| $ | — |
| $ | — |
| $ | 160,587 |
|
| $ | 206,558 |
| $ | — |
| $ | — |
| $ | 206,558 |
|
Repurchase Agreement |
|
| — |
|
| 1,963 |
|
| — |
|
| 1,963 |
|
|
| — |
|
| 967 |
|
| — |
|
| 967 |
|
| ||||||||||||||||||||||||||
Total |
| $ | 160,587 |
| $ | 1,963 |
| $ | — |
| $ | 162,550 |
|
| $ | 206,558 |
| $ | 967 |
| $ | — |
| $ | 207,824 |
|
| ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| ||||||||||||||||||||||||||
Futures Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
Liabilities |
|
| — |
|
| (112 | ) |
| — |
|
| (112 | ) |
|
| — |
|
| (149 | ) |
| — |
|
| (149) |
|
| ||||||||||||||||||||||||||
Total |
| $ | — |
| $ | (112 | ) | $ | — |
| $ | (112 | ) |
| $ | — |
| $ | (149 | ) | $ | — |
| $ | (149) |
|
|
|
|
* | See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography. There were no level transfers during the period ended January 31, 2013. |
31
Notes to Financial Statements (unaudited)(continued)
|
|
(i) | Disclosures about Derivative Instruments and Hedging Activities–The Funds entered into E-Mini S&P 500 Index futures contracts for the six months ended January 31, 2013 (as described in note 2(f)) to manage cash. The Funds bear the risk that the underlying index will move unexpectedly, in which case the Funds may realize a loss. There is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees futures against default. |
|
|
| As of January 31, 2013, the Funds had the following derivatives, grouped into appropriate risk categories that illustrate how and why the Funds use derivative instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calibrated Large Cap Value Fund |
|
| Calibrated Mid Cap Value Fund |
| ||||||||
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Derivatives |
| Equity Index |
| Fair Value |
|
| Equity Index |
| Fair Value |
| ||||
| ||||||||||||||
Futures Contracts(1) |
|
| $ 112 |
|
| $ 112 |
|
|
| $ 149 |
|
| $ 149 |
|
| ||||||||||||||
Total |
|
| $ 112 |
|
| $ 112 |
|
|
| $ 149 |
|
| $ 149 |
|
|
|
|
(1) | Statements of Assets and Liabilities location: Includes cumulative unrealized appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
Transactions in derivative instruments for the six months ended January 31, 2013, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calibrated Large Cap Value Fund |
|
| Calibrated Mid Cap Value Fund |
| ||||||||
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Index |
|
| Total |
|
| Equity Index |
|
| Total |
| ||
| ||||||||||||||
Net Realized Gain (Loss)(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts |
|
| $ 1,449 |
|
| $ 1,449 |
|
|
| $ 46 |
|
| $ 46 |
|
Net Change in Unrealized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts |
|
| $ (112 | ) |
| $ (112 | ) |
|
| $ (149 | ) |
| $ (149 | ) |
Average Number of Contracts* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts |
|
| — | (3) |
| — | (3) |
|
| — | (3) |
| — | (3) |
|
|
|
* | Calculated based on the number of contracts for the six months ended January 31, 2013. |
(1) | Statements of Operations location: Net realized gain on investments and futures contracts. |
(2) | Statements of Operations location: Net change in unrealized appreciation/depreciation on investments and futures contracts. |
(3) | Amount is less than 1 contract. |
|
|
|
3. | MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES |
|
Management Fee
The Trust has a management agreement with Lord Abbett, pursuant to which Lord Abbett supplies each 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 each Fund’s investment portfolio.
The management fee is based on each Fund’s average daily net assets at the following annual rate:
|
|
First $2 billion | .60% |
Over $2 billion | .55% |
For the six months ended January 31, 2013, for Calibrated Large Cap Value Fund and Calibrated Mid Cap Value Fund, the effective management fee, net of waivers, was at an annualized rate of .22% and .31%, respectively.
32
Notes to Financial Statements (unaudited)(continued)
For the period ended January 31, 2013 and continuing through November 30, 2013, Lord Abbett has contractually agreed to waive its fees and reimburse expenses to the extent necessary to limit total net annual operating expenses for each class, excluding 12b-1 fees, to an annual rate of .50% for Calibrated Large Cap Value Fund and .60% for Calibrated Mid Cap Value Fund. Each agreement may be terminated only by the Funds’ Board.
In addition, Lord Abbett provides certain administrative services to each Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of each Fund’s average daily net assets.
Each Fund, along with certain other funds managed by Lord Abbett (collectively, the “Underlying Funds”), has entered into a Servicing Arrangement with Lord Abbett Balanced Strategy Fund, Lord Abbett Diversified Income Strategy Fund and Lord Abbett Growth & Income Strategy Fund of Lord Abbett Investment Trust and Lord Abbett Global Allocation Fund of Lord Abbett Global Fund, Inc. (each, a “Fund of Funds”), pursuant to which each Underlying Fund pays a portion of the expenses (excluding management fee and distribution and service fees) of each applicable 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 each Fund’s Statements of Operations and Payable to affiliates on each Fund’s Statements of Assets and Liabilities.
As of January 31, 2013, the percentages of Calibrated Large Cap Value Fund’s and Calibrated Mid Cap Value Fund’s outstanding shares owned by each Fund of Funds were as follows:
|
|
|
|
|
|
|
|
|
|
|
| Underlying Funds |
| ||
Fund of Funds |
| Calibrated Large Cap |
| Calibrated Mid Cap |
| ||
Lord Abbett Balanced Strategy Fund |
|
| 13.58 | % |
| 55.92 | % |
Lord Abbett Diversified Income Strategy Fund |
|
| 4.15 | % |
| 2.57 | % |
Lord Abbett Global Allocation Fund |
|
| .59 | % |
| 5.92 | % |
Lord Abbett Growth & Income Strategy Fund |
|
| 31.14 | % |
| 23.06 | % |
|
12b-1 Distribution Plan |
Each Fund has adopted a distribution plan with respect to Class A, C, F, 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 each Fund’s average daily net assets as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees* |
| Class A |
| Class C |
| Class F |
| Class R2 |
| Class R3 |
| |||||
Service |
|
| .25 | % |
| .25 | % |
| — |
|
| .25 | % |
| .25 | % |
Distribution |
|
| — |
|
| .75 | % |
| .10 | % |
| .35 | % |
| .25 | % |
|
|
* | Each 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 Funds, after concessions were paid to authorized dealers, for the six months ended January 31, 2013: |
|
|
|
|
|
|
|
|
|
| Distributor |
| Dealers’ |
| ||
Calibrated Large Cap Value Fund |
|
| $20,200 |
|
| $108,915 |
|
Calibrated Mid Cap Value Fund |
|
| 5,212 |
|
| 26,923 |
|
33
Notes to Financial Statements (unaudited)(continued)
Distributor received the following amount of CDSCs for the six months ended January 31, 2013:
|
|
|
|
|
|
|
|
|
| Class A |
| Class C |
| ||
Calibrated Large Cap Value Fund |
|
| $108 |
|
| $9 |
|
Calibrated Mid Cap Value Fund |
|
| — |
|
| — |
|
During the six months ended January 31, 2013, two Trustees and certain of the Trust’s officers had 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 for each Fund. 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 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.
The tax character of distributions paid during the six months ended January 31, 2013 and the fiscal period ended July 31, 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calibrated Large Cap Value Fund |
| Calibrated Large Cap Value Fund |
| ||||||||
|
| Six Months Ended |
| Period Ended |
| Six Months Ended |
| Period Ended |
| ||||
Distributions paid from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary income |
|
| $4,100,225 |
| $ | — |
|
| $6,234,113 |
| $ | — |
|
Net long-term capital gains |
|
| 6,720 |
|
| — |
|
| 32,563 |
|
| — |
|
Total distributions paid |
|
| $4,106,945 |
| $ | — |
|
| $6,266,676 |
| $ | — |
|
As of January 31, 2013, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:
|
|
|
|
|
|
|
|
|
| Calibrated Large Cap Value Fund |
| Calibrated Large Cap Value Fund |
| ||
Tax cost |
| $ | 151,279,490 |
| $ | 189,404,849 |
|
Gross unrealized gain |
|
| 11,855,259 |
|
| 19,491,048 |
|
Gross unrealized loss |
|
| (585,039 | ) |
| (1,370,784 | ) |
Net unrealized security gain |
| $ | 11,270,220 |
| $ | 18,120,264 |
|
34
Notes to Financial Statements (unaudited)(continued)
|
|
|
5. | PORTFOLIO SECURITIES TRANSACTIONS |
|
Purchases and sales of investment securities (excluding short-term investments) for the six months ended January 31, 2013 were as follows:
|
|
|
| Purchases | Sales |
Calibrated Large Cap Value Fund | $145,356,386 | $66,978,730 |
Calibrated Mid Cap Value Fund | 149,799,292 | 86,901,703 |
There were no purchases or sales of U.S. Government securities for the six months ended January 31, 2013.
|
|
|
6. | TRUSTEES’ REMUNERATION |
|
During the six months ended January 31, 2013, the Trust’s officers and the two Trustees who were associated with Lord Abbett did not receive any compensation from the Trust 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 Statements of Operations and in Trustees’ fees payable on the Statements of Assets and Liabilities and are not deductible for U.S. federal income tax purposes until such amounts are paid.
|
|
|
7. | EXPENSE REDUCTIONS |
|
The Trust 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 each Fund’s expenses.
|
|
|
8. | LINE OF CREDIT |
|
On April 2, 2012, the Funds and certain other funds managed by Lord Abbett (the “participating funds”) entered into an unsecured revolving credit facility (“Facility”) with 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 amounts available under the Facility are (i) the lesser of either $250,000,000 or 33.33% of total assets per participating fund and (ii) $350,000,000 in the aggregate for all participating funds. The annual fee to maintain the Facility is .09% 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 Funds’ Statements of Operations. Any borrowings under this Facility will bear interest at current market rates as set forth in the credit agreement. As of January 31, 2013, there were no loans outstanding pursuant to this Facility nor was the Facility utilized at any time during the six months ended January 31, 2013.
|
|
|
9. | CUSTODIAN AND ACCOUNTING AGENT |
|
SSB is the Trust’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating each Fund’s NAV.
35
Notes to Financial Statements (unaudited)(continued)
|
|
|
10. | INVESTMENT RISKS |
|
Each Fund is subject to the general risks and considerations associated with equity investing. The value of a Fund’s investment in an individual company will fluctuate in response to its changing prospects and movements in the equity securities markets in general. If a Fund’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market.
The market may fail to recognize for a long time the intrinsic value of particular value stocks each Fund may hold. The large companies in which Calibrated Large Cap Value Fund invests may be less able to respond quickly to certain market developments and may have slower rates of growth than smaller companies. The mid-sized companies in which Calibrated Mid Cap Value Fund invests may be less able to weather economic shifts or other adverse developments than larger, more established companies.
Due to each Fund’s exposure to foreign companies and American Depository Receipts, each Fund may experience increased market, liquidity, currency, political, information, and other risks.
These factors can affect each Fund’s performance.
|
|
|
11. | SUMMARY OF CAPITAL TRANSACTIONS |
|
Transactions in shares of beneficial interest were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calibrated Large Cap Value Fund |
| Six Months Ended |
| Period Ended |
| ||||||||
| |||||||||||||
Class A Shares |
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
| |||||||||||||
Shares sold |
|
| 1,959,089 |
| $ | 35,526,857 |
|
| 2,239,545 |
| $ | 35,285,462 |
|
Reinvestment of distributions |
|
| 57,491 |
|
| 983,676 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (1,282,649 | ) |
| (22,591,988 | ) |
| (147,568 | ) |
| (2,420,649 | ) |
| |||||||||||||
Increase |
|
| 733,931 |
| $ | 13,918,545 |
|
| 2,091,977 |
| $ | 32,864,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold |
|
| 59,464 |
| $ | 1,060,549 |
|
| 5,200 |
| $ | 83,959 |
|
Reinvestment of distributions |
|
| 616 |
|
| 10,472 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (2,610 | ) |
| (46,048 | ) |
| (1,656 | ) |
| (27,221 | ) |
Increase |
|
| 57,470 |
| $ | 1,024,973 |
|
| 3,544 |
| $ | 56,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class F Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold |
|
| 449,096 |
| $ | 8,089,191 |
|
| 2,016 |
| $ | 33,260 |
|
Reinvestment of distributions |
|
| 6,511 |
|
| 111,411 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (194,843 | ) |
| (3,452,269 | ) |
| — |
|
| — |
|
Increase |
|
| 260,764 |
| $ | 4,748,333 |
|
| 2,016 |
| $ | 33,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold |
|
| 3,345,373 |
| $ | 59,882,869 |
|
| 1,986,051 |
| $ | 31,989,925 |
|
Reinvestment of distributions |
|
| 142,033 |
|
| 2,431,608 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (10,679 | ) |
| (192,818 | ) |
| (64 | ) |
| (1,087 | ) |
Increase |
|
| 3,476,727 |
| $ | 62,121,659 |
|
| 1,985,987 |
| $ | 31,988,838 |
|
36
Notes to Financial Statements (unaudited)(concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calibrated Large Cap Value Fund |
| Six Months Ended |
| Period Ended |
| ||||||||
| |||||||||||||
Class R2 Shares |
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
| |||||||||||||
Shares sold |
|
| 15.780 |
| $ | 285 |
|
| 666.667 |
| $ | 10,000 |
|
Reinvestment of distributions |
|
| 20.553 |
|
| 353 |
|
| — |
|
| — |
|
| |||||||||||||
Increase |
|
| 36.333 |
| $ | 638 |
|
| 666.667 |
| $ | 10,000 |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R3 Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 2,900.013 |
| $ | 51,039 |
|
| 666.667 |
| $ | 10,000 |
|
Reinvestment of distributions |
|
| 110.210 |
|
| 1,883 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (691.890 | ) |
| (12,172 | ) |
| — |
|
| — |
|
| |||||||||||||
Increase |
|
| 2,318.333 |
| $ | 40,750 |
|
| 666.667 |
| $ | 10,000 |
|
|
|
|
† | For the period December 21, 2011 (commencement of operations) to July 31, 2012. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calibrated Mid Cap Value Fund |
| Six Months Ended |
| Period Ended |
| ||||||||
| |||||||||||||
Class A Shares |
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
| |||||||||||||
Shares sold |
|
| 334,243 |
| $ | 5,819,173 |
|
| 1,124,432 |
| $ | 17,407,262 |
|
Reinvestment of distributions |
|
| 28,488 |
|
| 468,011 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (768,286 | ) |
| (12,936,802 | ) |
| (290,768 | ) |
| (4,716,098 | ) |
| |||||||||||||
Increase (decrease) |
|
| (405,555 | ) | $ | (6,649,618 | ) |
| 833,664 |
| $ | 12,691,164 |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 30,426 |
| $ | 538,030 |
|
| 944 |
| $ | 14,330 |
|
Reinvestment of distributions |
|
| 197 |
|
| 3,223 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (689 | ) |
| (11,648 | ) |
| (54 | ) |
| (925 | ) |
| |||||||||||||
Increase |
|
| 29,934 |
| $ | 529,605 |
|
| 890 |
| $ | 13,405 |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class F Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 56,207 |
| $ | 978,772 |
|
| 3,424 |
| $ | 54,865 |
|
Reinvestment of distributions |
|
| 813 |
|
| 13,369 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (906 | ) |
| (15,514 | ) |
| — |
|
| — |
|
| |||||||||||||
Increase |
|
| 56,114 |
| $ | 976,627 |
|
| 3,424 |
| $ | 54,865 |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold |
|
| 3,913,374 |
| $ | 66,584,399 |
|
| 6,475,440 |
| $ | 106,363,540 |
|
Reinvestment of distributions |
|
| 343,355 |
|
| 5,650,117 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (1,980 | ) |
| (33,880 | ) |
| (64 | ) |
| (1,044 | ) |
| |||||||||||||
Increase |
|
| 4,254,749 |
| $ | 72,200,636 |
|
| 6,475,376 |
| $ | 106,362,496 |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R2 Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| — |
| $ | — |
|
| 666.667 |
| $ | 10,000 |
|
Reinvestment of distributions |
|
| 22.333 |
|
| 363 |
|
| — |
|
| — |
|
| |||||||||||||
Increase |
|
| 22.333 |
| $ | 363 |
|
| 666.667 |
| $ | 10,000 |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R3 Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold |
|
| — |
| $ | — |
|
| 666.667 |
| $ | 10,000 |
|
Reinvestment of distributions |
|
| 22.649 |
|
| 373 |
|
| — |
|
| — |
|
| |||||||||||||
Increase |
|
| 22.649 |
| $ | 373 |
|
| 666.667 |
| $ | 10,000 |
|
|
|
|
† | For the period December 21, 2011 (commencement of operations) to July 31, 2012. |
37
Approval of Advisory Contract
The Board of Trustees of the Company, including all of the Trustees who are not interested persons of the Company or Lord, Abbett & Co. LLC (“Lord Abbett”), annually considers whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In connection with its most recent approval, the Board reviewed materials relating specifically to the management agreement, as well as numerous materials received throughout the course of the year, including information about the Fund’s investment performance compared to the performance of its benchmark. Before making its decision as to each Fund, the Board had the opportunity to ask questions and request further information, taking into account its familiarity with Lord Abbett gained through its meetings and discussions. These meetings and discussions included the examination of the portfolio management teams conducted by members of the Contract Committee, the deliberations of the Contract Committee, and discussions between the Contract Committee and Lord Abbett’s management.
The materials received by the Board as to each Fund 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 a group of funds within the same investment classification/objective (the “performance universe”) and 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 one or more groups of funds with similar objectives and of similar size (the “peer group”); (3) detailed performance attribution analysis; (4) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (5) sales and redemption information for the Fund; (6) information regarding Lord Abbett’s financial condition; (7) an analysis of the relative profitability of the management agreement to Lord Abbett; (8) 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; (9) information regarding the distribution arrangements of the Fund; and (10) 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 each 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 each Fund’s investment performance in relation to that of the relevant universes, in each case as of the nine-month period ended September 30, 2012. As to Calibrated Large Cap Value Fund, the Board observed that the investment performance of the Class A shares was well above the median of the performance universe for the nine-month period. As to Calibrated Mid Cap Value Fund, the Board observed that the investment performance of the Class A shares was above the median of the performance universe for the nine-month period.
Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to each Fund, in light of its investment objective and discipline. Among other things, the Board considered the size, experience, and turnover of Lord
38
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.
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 (“Distributor”) and the nature and extent of Lord Abbett’s supervision of third party service providers, including each Fund’s transfer agent and custodian.
Expenses. The Board considered the expense level of each class of shares of each Fund and the expense levels of one or more corresponding peer groups. The Board considered the fiscal periods on which the peer group comparisons were based, and noted that the fiscal years of many funds in each Fund’s peer group did not coincide with the Fund’s fiscal year. It also considered the projected expense levels of each Fund and how those levels would relate to those of the peer group and the amount and nature of the fees paid by shareholders. As to each Fund, the Board observed that the expense ratios generally were well below the medians of the peer group.
Profitability. As to each Fund, 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 each 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, 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 concluded that Lord Abbett’s profitability as to each Fund was not excessive.
Economies of Scale. As to each Fund, 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 each existing management fee schedule, with its breakpoint or breakpoints in the level of the management fee, adequately addressed any economies of scale in managing the applicable Fund.
Other Benefits to Lord Abbett. As to each Fund, the Board considered the character and amount of fees paid by the Fund and the Fund’s shareholders to Lord Abbett and 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 Distributor receives 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 12b-1 fees from the Funds, and receives a portion of the sales charges on sales and redemptions of some classes of shares. In addition, the Board observed that 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
39
prospectuses of the Funds, has entered into revenue sharing arrangements with certain entities that distribute shares of the Funds. The Board also took into consideration the investment research that Lord Abbett receives as a result of Fund brokerage transactions.
Alternative Arrangements. As to each Fund, 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. After considering all of the relevant factors, the Board unanimously found that continuation of the existing management agreements was in the best interests of each Fund and its shareholders and voted unanimously to approve the continuation of the management agreements. 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.
40
Householding
The Trust has adopted a policy that allows it to send only one copy of each 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 each Fund’s portfolio securities, and information on how Lord Abbett voted each 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 Funds are required to file their complete schedule of portfolio holdings with the SEC for their 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).
41
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| ||
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 Equity Trust | CALIBRATED-3-0113 |
2 0 1 3
L O R D A B B E T T
S E M I A N N U A L
R E P O R T
Lord Abbett
Small Cap Blend Fund
For the six-month period ended January 31, 2013
|
Lord Abbett Equity Trust |
For the six-month period ended January 31, 2013 |
Dear Shareholders: We are pleased to provide you with this semiannual report for Lord Abbett Small Cap Blend Fund for the six-month period ended January 31, 2013. For additional information about the Fund, please visit our Website at www.lordabbett.com, where you can access the quarterly commentaries by the Fund’s portfolio managers. General information about Lord Abbett mutual funds, as well as in-depth discussions of market trends and investment strategies, is also provided in Lord Abbett Insights, a quarterly newsletter available on our Website.
Thank you for investing in Lord Abbett mutual funds. We value the trust that you place in us and look forward to serving your investment needs in the years to come.
|
Best regards, |
|
|
Daria L. Foster |
Trustee, President and Chief Executive Officer |
1
|
Expense Example |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (these charges vary among the share classes); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (these charges vary among the share classes); and other Fund 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 Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2012 through January 31, 2013).
Actual Expenses
For each class of the Fund, the first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During Period 8/1/12 - 1/31/13” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of the Fund, the second line of the table on the following page provides 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.
2
|
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table 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. |
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses |
|
|
|
| |||
|
| 8/1/12 |
| 1/31/13 |
| 8/1/12 – |
|
|
|
| |||
Class A |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,126.00 |
| $ 7.34 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,018.29 |
| $ 6.97 |
Class B |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,121.90 |
| $10.80 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,015.03 |
| $10.26 |
Class C |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,122.10 |
| $10.75 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,015.06 |
| $10.21 |
Class F |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,127.10 |
| $ 6.00 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,019.55 |
| $ 5.70 |
Class I |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,127.50 |
| $ 5.47 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,020.05 |
| $ 5.19 |
Class P |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,125.00 |
| $ 7.87 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,017.78 |
| $ 7.48 |
Class R2 |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,123.90 |
| $ 8.67 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,017.03 |
| $ 8.24 |
Class R3 |
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,124.80 |
| $ 8.14 |
Hypothetical (5% Return Before Expenses) |
| $1,000.00 |
| $1,017.55 |
| $ 7.73 |
|
|
† | For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (1.37% for Class A, 2.02% for Class B, 2.01 for Class C, 1.12% for Class F, 1.02% for Class I, 1.47% for Class P, 1.62% for Class R2 and 1.52% for Class R3) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
|
Portfolio Holdings Presented by Sector |
January 31, 2013 |
|
|
|
|
Sector* |
| %** |
|
Consumer Discretionary |
| 11.99% |
|
Consumer Staples |
| 1.47% |
|
Energy |
| 6.02% |
|
Financials |
| 21.51% |
|
Health Care |
| 11.68% |
|
|
|
|
|
Sector* |
| %** |
|
Industrials |
| 16.42% |
|
Information Technology |
| 18.29% |
|
Materials |
| 9.48% |
|
Short-Term Investment |
| 3.14% |
|
Total |
| 100.00% |
|
|
|
* | A sector may comprise several industries. |
** | Represents percent of total investments. |
3
Schedule of Investments (unaudited)
January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
| Fair |
| ||
| |||||||||||
COMMON STOCKS 95.75% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Defense 4.77% |
|
|
|
|
|
|
|
|
|
|
|
DigitalGlobe, Inc.* |
|
|
|
|
|
| 600,200 |
| $ | 16,788 |
|
Esterline Technologies Corp.* |
|
|
|
|
|
| 106,124 |
|
| 7,046 |
|
HEICO Corp. |
|
|
|
|
|
| 112,045 |
|
| 5,082 |
|
HEICO Corp. Class A |
|
|
|
|
|
| 139,383 |
|
| 4,740 |
|
LMI Aerospace, Inc.* |
|
|
|
|
|
| 33,783 |
|
| 747 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 34,403 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals 1.52% |
|
|
|
|
|
|
|
|
|
|
|
Axiall Corp. |
|
|
|
|
|
| 101,400 |
|
| 5,697 |
|
HB Fuller Co. |
|
|
|
|
|
| 134,074 |
|
| 5,239 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 10,936 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Banks 6.83% |
|
|
|
|
|
|
|
|
|
|
|
IBERIABANK Corp. |
|
|
|
|
|
| 185,882 |
|
| 9,571 |
|
PacWest Bancorp |
|
|
|
|
|
| 228,079 |
|
| 6,268 |
|
Popular, Inc.* |
|
|
|
|
|
| 143,815 |
|
| 3,860 |
|
SCBT Financial Corp. |
|
|
|
|
|
| 82,453 |
|
| 3,471 |
|
SVB Financial Group* |
|
|
|
|
|
| 157,500 |
|
| 10,453 |
|
Synovus Financial Corp. |
|
|
|
|
|
| 2,700,800 |
|
| 6,968 |
|
Wintrust Financial Corp. |
|
|
|
|
|
| 232,700 |
|
| 8,626 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 49,217 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Communications Equipment 1.38% |
|
|
|
|
|
|
|
|
|
|
|
Ruckus Wireless, Inc.* |
|
|
|
|
|
| 423,000 |
|
| 9,966 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Construction & Engineering 2.15% |
|
|
|
|
|
|
|
|
|
|
|
Chicago Bridge & Iron Co. NV (Netherlands)(a) |
|
|
|
|
|
| 89,300 |
|
| 4,537 |
|
Foster Wheeler AG (Switzerland)*(a) |
|
|
|
|
|
| 420,096 |
|
| 10,969 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 15,506 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance 2.63% |
|
|
|
|
|
|
|
|
|
|
|
Encore Capital Group, Inc.* |
|
|
|
|
|
| 301,417 |
|
| 9,070 |
|
Portfolio Recovery Associates, Inc.* |
|
|
|
|
|
| 92,354 |
|
| 9,877 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 18,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
| Fair |
| ||
| |||||||||||
Containers & Packaging 1.19% |
|
|
|
|
|
|
|
|
|
|
|
Berry Plastics Group, Inc.* |
|
|
|
|
|
| 486,500 |
| $ | 8,553 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Distributors 1.52% |
|
|
|
|
|
|
|
|
|
|
|
Pool Corp. |
|
|
|
|
|
| 239,682 |
|
| 10,982 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Consumer Services 2.22% |
|
|
|
|
|
|
|
|
|
|
|
K12, Inc.* |
|
|
|
|
|
| 302,300 |
|
| 5,580 |
|
Sotheby’s |
|
|
|
|
|
| 290,200 |
|
| 10,424 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 16,004 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial Services 0.64% |
|
|
|
|
|
|
|
|
|
|
|
PHH Corp.* |
|
|
|
|
|
| 209,900 |
|
| 4,593 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Electrical Equipment 0.19% |
|
|
|
|
|
|
|
|
|
|
|
Powell Industries, Inc.* |
|
|
|
|
|
| 30,500 |
|
| 1,380 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Equipment, Instruments & Components 0.64% |
|
|
|
|
|
|
|
|
|
|
|
Measurement Specialties, Inc.* |
|
|
|
|
|
| 7,740 |
|
| 273 |
|
Mercury Computer Systems, Inc.* |
|
|
|
|
|
| 586,800 |
|
| 4,313 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 4,586 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Energy Equipment & Services 1.51% |
|
|
|
|
|
|
|
|
|
|
|
ION Geophysical Corp.* |
|
|
|
|
|
| 1,072,600 |
|
| 7,294 |
|
North Atlantic Drilling Ltd.†(b) |
|
|
|
|
|
| 347,408 |
| NOK | 3,561 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 10,855 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Food Products 0.68% |
|
|
|
|
|
|
|
|
|
|
|
J & J Snack Foods Corp. |
|
|
|
|
|
| 71,998 |
|
| 4,907 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Equipment & Supplies 3.18% |
|
|
|
|
|
|
|
|
|
|
|
Greatbatch, Inc.* |
|
|
|
|
|
| 352,400 |
|
| 9,353 |
|
Hill-Rom Holdings, Inc. |
|
|
|
|
|
| 169,100 |
|
| 5,611 |
|
Masimo Corp. |
|
|
|
|
|
| 393,701 |
|
| 7,992 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 22,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 | See Notes to Financial Statements. |
|
Schedule of Investments (unaudited)(continued)
January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
|
| Fair |
| |
| |||||||||||
Health Care Providers & Services 8.36% |
|
|
|
|
|
|
|
|
|
|
|
ExamWorks Group, Inc.* |
|
|
|
|
|
| 699,755 |
| $ | 10,125 |
|
IPC The Hospitalist Co., Inc.* |
|
|
|
|
|
| 203,700 |
|
| 8,686 |
|
Magellan Health Services, Inc.* |
|
|
|
|
|
| 108,500 |
|
| 5,566 |
|
Providence Service Corp. (The)* |
|
|
|
|
|
| 349,900 |
|
| 6,484 |
|
Tenet Healthcare Corp.* |
|
|
|
|
|
| 240,725 |
|
| 9,347 |
|
VCA Antech, Inc.* |
|
|
|
|
|
| 437,500 |
|
| 9,450 |
|
WellCare Health Plans, Inc.* |
|
|
|
|
|
| 209,700 |
|
| 10,634 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 60,292 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure 2.53% |
|
|
|
|
|
|
|
|
|
|
|
Bally Technologies, Inc.* |
|
|
|
|
|
| 197,300 |
|
| 9,502 |
|
Life Time Fitness, Inc.* |
|
|
|
|
|
| 171,620 |
|
| 8,706 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 18,208 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Household Products 0.78% |
|
|
|
|
|
|
|
|
|
|
|
Central Garden & Pet Co.* |
|
|
|
|
|
| 581,900 |
|
| 5,586 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Information Technology Services 5.60% |
|
|
|
|
|
|
|
|
|
|
|
Cardtronics, Inc.* |
|
|
|
|
|
| 968,818 |
|
| 25,083 |
|
FleetCor Technologies, Inc.* |
|
|
|
|
|
| 254,940 |
|
| 15,255 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 40,338 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Insurance 3.18% |
|
|
|
|
|
|
|
|
|
|
|
Endurance Specialty Holdings Ltd. |
|
|
|
|
|
| 84,300 |
|
| 3,618 |
|
First American Financial Corp. |
|
|
|
|
|
| 417,100 |
|
| 9,965 |
|
RLI Corp. |
|
|
|
|
|
| 134,910 |
|
| 9,310 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 22,893 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Internet Software & Services 1.35% |
|
|
|
|
|
|
|
|
|
|
|
Liquidity Services, Inc.* |
|
|
|
|
|
| 263,600 |
|
| 8,401 |
|
NIC, Inc. |
|
|
|
|
|
| 83,070 |
|
| 1,354 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 9,755 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Machinery 4.01% |
|
|
|
|
|
|
|
|
|
|
|
Middleby Corp. (The)* |
|
|
|
|
|
| 100,789 |
|
| 14,248 |
|
Oshkosh Corp.* |
|
|
|
|
|
| 374,000 |
|
| 14,653 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 28,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
| Shares |
| Fair |
| ||
|
|
|
|
| |||||||
Metals & Mining 5.87% |
|
|
|
|
|
|
|
|
|
|
|
Allied Nevada Gold Corp.* |
|
|
|
|
|
| 228,100 |
| $ | 5,404 |
|
AuRico Gold, Inc. (Canada)*(a) |
|
|
|
|
|
| 1,249,500 |
|
| 8,809 |
|
Detour Gold Corp.*(b) |
|
|
|
|
|
| 400,800 |
| CAD | 8,471 |
|
Molycorp, Inc.* |
|
|
|
|
|
| 840,700 |
|
| 6,204 |
|
New Gold, Inc. (Canada)*(a) |
|
|
|
|
|
| 787,600 |
|
| 7,640 |
|
Osisko Mining Corp. (Canada)*(a) |
|
|
|
|
|
| 833,400 |
|
| 5,756 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 42,284 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 4.94% |
|
|
|
|
|
|
|
|
|
|
|
Cheniere Energy, Inc.* |
|
|
|
|
|
| 117,900 |
|
| 2,503 |
|
Endeavour International Corp.* |
|
|
|
|
|
| 1,491,200 |
|
| 8,112 |
|
Energy XXI Bermuda Ltd. |
|
|
|
|
|
| 491,500 |
|
| 15,394 |
|
Frontline 2012 Ltd.*†(b) |
|
|
|
|
|
| 254,666 |
| NOK | 1,809 |
|
Plains Exploration & Production Co.* |
|
|
|
|
|
| 90,800 |
|
| 4,336 |
|
Ship Finance International Ltd. |
|
|
|
|
|
| 205,900 |
|
| 3,471 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 35,625 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Paper & Forest Products 0.80% |
|
|
|
|
|
|
|
|
|
|
|
KapStone Paper and Packaging Corp. |
|
|
|
|
|
| 241,000 |
|
| 5,784 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services 1.16% |
|
|
|
|
|
|
|
|
|
|
|
Mistras Group, Inc.* |
|
|
|
|
|
| 378,905 |
|
| 8,343 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Investment Trusts 1.35% |
|
|
|
|
|
|
|
|
|
|
|
Mid-America Apartment Communities, Inc. |
|
|
|
|
|
| 148,800 |
|
| 9,727 |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Management & Development 4.12% |
|
|
|
|
|
|
|
|
|
|
|
Altisource Portfolio Solutions SA (Luxembourg)*(a) |
|
|
|
|
|
| 140,800 |
|
| 12,372 |
|
Jones Lang LaSalle, Inc. |
|
|
|
|
|
| 187,986 |
|
| 17,321 |
|
|
|
|
|
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
|
| 29,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| See Notes to Financial Statements. | 5 |
Schedule of Investments (unaudited)(concluded)
January 31, 2013
|
|
|
|
|
|
|
|
Investments |
| Shares |
| Fair |
| ||
Semiconductors & Semiconductor Equipment 5.29% |
|
|
|
|
|
|
|
Applied Micro Circuits Corp.* |
|
| 1,083,300 |
| $ | 9,284 |
|
Monolithic Power Systems, Inc. |
|
| 157,000 |
|
| 3,658 |
|
Rudolph Technologies, Inc.* |
|
| 446,300 |
|
| 6,021 |
|
Semtech Corp.* |
|
| 368,817 |
|
| 11,123 |
|
Silicon Laboratories, Inc.* |
|
| 183,603 |
|
| 8,012 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 38,098 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Software 3.82% |
|
|
|
|
|
|
|
Fortinet, Inc.* |
|
| 268,600 |
|
| 6,336 |
|
Informatica Corp.* |
|
| 287,700 |
|
| 10,648 |
|
SS&C Technologies Holdings, Inc.* |
|
| 467,432 |
|
| 10,578 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 27,562 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Specialty Retail 4.43% |
|
|
|
|
|
|
|
Cabela’s, Inc.* |
|
| 118,900 |
|
| 6,138 |
|
Chico’s FAS, Inc. |
|
| 309,100 |
|
| 5,542 |
|
DSW, Inc. Class A |
|
| 147,900 |
|
| 9,899 |
|
Hibbett Sports, Inc.* |
|
| 197,000 |
|
| 10,374 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 31,953 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods 1.14% |
|
|
|
|
|
|
|
Crocs, Inc.* |
|
| 554,300 |
|
| 8,237 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Thrifts & Mortgage Finance 2.03% |
|
|
|
|
|
|
|
Ocwen Financial Corp.* |
|
| 375,588 |
|
| 14,637 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Trading Companies & Distributors 3.94% |
|
|
|
|
|
|
|
DXP Enterprises, Inc.* |
|
| 186,300 |
|
| 10,600 |
|
WESCO International, Inc.* |
|
| 145,600 |
|
| 10,619 |
|
MRC Global, Inc.* |
|
| 234,600 |
|
| 7,209 |
|
|
|
|
|
|
| ||
Total |
|
|
|
|
| 28,428 |
|
|
|
|
|
|
| ||
Total Common Stocks |
|
|
|
|
| 690,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
| Principal |
| Fair |
| ||
SHORT-TERM INVESTMENT 3.10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase Agreement |
|
|
|
|
|
|
|
Repurchase Agreement dated 1/31/2013, 0.01% due 2/1/2013 with Fixed Income Clearing Corp. collateralized by $22,795,000 of U.S. Treasury Note at 0.375% due 6/15/2015; value: $22,834,527; proceeds: $22,384,848 (cost $22,384,842) |
| $ | 22,385 |
| $ | 22,385 |
|
|
|
|
|
|
| ||
Total Investments in Securities 98.85% |
|
|
|
|
| 712,520 |
|
|
|
|
|
|
| ||
Foreign Cash and Other Assets in Excess of Liabilities 1.15% |
|
|
|
|
| 8,265 |
|
|
|
|
|
|
| ||
Net Assets 100.00% |
|
|
|
| $ | 720,785 |
|
|
|
|
|
|
|
|
|
CAD | Canadian dollar. |
NOK | Norwegian krone. |
* | Non-income producing security. |
† | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers. |
(a) | Foreign security traded in U.S. dollars. |
(b) | Investment in non-U.S. dollar denominated securities. |
|
|
|
6 | See Notes to Financial Statements. |
|
Statement of Assets and Liabilities (unaudited)
January 31, 2013
|
|
|
|
|
ASSETS: |
|
|
|
|
Investments in securities, at fair value (cost $632,238,625) |
| $ | 712,520,488 |
|
Foreign cash, at value (cost $43,583) |
|
| 44,490 |
|
Receivables: |
|
|
|
|
Investment securities sold |
|
| 21,713,853 |
|
Capital shares sold |
|
| 498,646 |
|
Interest |
|
| 6 |
|
Prepaid expenses and other assets |
|
| 108,471 |
|
Total assets |
|
| 734,885,954 |
|
LIABILITIES: |
|
|
|
|
Payables: |
|
|
|
|
Investment securities purchased |
|
| 11,127,225 |
|
Capital shares reacquired |
|
| 1,581,779 |
|
Management fee |
|
| 464,806 |
|
12b-1 distribution fees |
|
| 263,338 |
|
Trustees’ fees |
|
| 161,139 |
|
To affiliate (See Note 3) |
|
| 44,216 |
|
Fund administration |
|
| 24,790 |
|
Accrued expenses and other liabilities |
|
| 433,307 |
|
Total liabilities |
|
| 14,100,600 |
|
NET ASSETS |
| $ | 720,785,354 |
|
COMPOSITION OF NET ASSETS: |
|
|
|
|
Paid-in capital |
| $ | 662,006,612 |
|
Accumulated net investment loss |
|
| (2,281,262 | ) |
Accumulated net realized loss on investments and foreign currency related transactions |
|
| (19,223,349 | ) |
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies |
|
| 80,283,353 |
|
Net Assets |
| $ | 720,785,354 |
|
|
|
See Notes to Financial Statements. | 7 |
Statement of Assets and Liabilities (unaudited)(concluded)
January 31, 2013
|
|
|
|
|
Net assets by class: |
|
|
|
|
Class A Shares |
| $ | 269,214,316 |
|
Class B Shares |
| $ | 14,179,202 |
|
Class C Shares |
| $ | 78,466,920 |
|
Class F Shares |
| $ | 9,891,942 |
|
Class I Shares |
| $ | 275,537,848 |
|
Class P Shares |
| $ | 55,577,832 |
|
Class R2 Shares |
| $ | 502,747 |
|
Class R3 Shares |
| $ | 17,414,547 |
|
Outstanding shares by class |
|
|
|
|
Class A Shares |
|
| 15,524,494 |
|
Class B Shares |
|
| 885,752 |
|
Class C Shares |
|
| 4,905,781 |
|
Class F Shares |
|
| 563,563 |
|
Class I Shares |
|
| 15,297,829 |
|
Class P Shares |
|
| 3,216,547 |
|
Class R2 Shares |
|
| 29,322 |
|
Class R3 Shares |
|
| 1,011,564 |
|
Net asset value, offering and redemption price per share |
|
|
|
|
Class A Shares-Net asset value |
|
| $17.34 |
|
Class A Shares-Maximum offering price |
|
| $18.40 |
|
Class B Shares-Net asset value |
|
| $16.01 |
|
Class C Shares-Net asset value |
|
| $15.99 |
|
Class F Shares-Net asset value |
|
| $17.55 |
|
Class I Shares-Net asset value |
|
| $18.01 |
|
Class P Shares-Net asset value |
|
| $17.28 |
|
Class R2 Shares-Net asset value |
|
| $17.15 |
|
Class R3 Shares-Net asset value |
|
| $17.22 |
|
|
|
|
8 | See Notes to Financial Statements. |
|
Statement of Operations (unaudited)
For the Six Months Ended January 31, 2013
|
|
|
|
|
Investment income: |
|
|
|
|
Dividends (net of foreign withholding taxes of $2,864) |
| $ | 6,253,160 |
|
Interest |
|
| 795 |
|
Total investment income |
|
| 6,253,955 |
|
Expenses: |
|
|
|
|
Management fee |
|
| 2,954,319 |
|
12b-1 distribution plan-Class A |
|
| 479,813 |
|
12b-1 distribution plan-Class B |
|
| 80,222 |
|
12b-1 distribution plan-Class C |
|
| 393,563 |
|
12b-1 distribution plan-Class F |
|
| 4,968 |
|
12b-1 distribution plan-Class P |
|
| 143,182 |
|
12b-1 distribution plan-Class R2 |
|
| 1,345 |
|
12b-1 distribution plan-Class R3 |
|
| 42,221 |
|
Shareholder servicing |
|
| 659,688 |
|
Fund administration |
|
| 157,564 |
|
Subsidy (See Note 3) |
|
| 95,219 |
|
Registration |
|
| 45,230 |
|
Reports to shareholders |
|
| 39,329 |
|
Professional |
|
| 29,821 |
|
Custody |
|
| 19,773 |
|
Trustees’ fees |
|
| 12,188 |
|
Other |
|
| 11,761 |
|
Gross expenses |
|
| 5,170,206 |
|
Expense reductions (See Note 7) |
|
| (238 | ) |
Net expenses |
|
| 5,169,968 |
|
Net investment income |
|
| 1,083,987 |
|
Net realized and unrealized gain: |
|
|
|
|
Net realized gain on investments and foreign currency related transactions |
|
| 58,605,591 |
|
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies |
|
| 32,467,146 |
|
Net realized and unrealized gain |
|
| 91,072,737 |
|
Net Increase in Net Assets Resulting From Operations |
| $ | 92,156,724 |
|
|
|
|
| See Notes to Financial Statements. | 9 |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
DECREASE IN NET ASSETS |
| For the Six Months |
| For the Year Ended |
| ||
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 1,083,987 |
| $ | (3,794,276 | ) |
Net realized gain on investments and foreign currency related transactions |
|
| 58,605,591 |
|
| 48,254,649 |
|
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies |
|
| 32,467,146 |
|
| (116,116,784 | ) |
Net increase (decrease) in net assets resulting from operations |
|
| 92,156,724 |
|
| (71,656,411 | ) |
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
Class F |
|
| (11,844 | ) |
| — |
|
Class I |
|
| (704,482 | ) |
| — |
|
Total distributions to shareholders |
|
| (716,326 | ) |
| — |
|
Capital share transactions (Net of share conversions) (See Note 11): |
|
|
|
|
|
|
|
Net proceeds from sales of shares |
|
| 36,303,038 |
|
| 124,912,776 |
|
Reinvestment of distributions |
|
| 652,124 |
|
| — |
|
Cost of shares reacquired |
|
| (209,463,248 | ) |
| (383,145,302 | ) |
Net decrease in net assets resulting from capital share transactions |
|
| (172,508,086 | ) |
| (258,232,526 | ) |
Net decrease in net assets |
|
| (81,067,688 | ) |
| (329,888,937 | ) |
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of period |
| $ | 801,853,042 |
| $ | 1,131,741,979 |
|
End of period |
| $ | 720,785,354 |
| $ | 801,853,042 |
|
Accumulated net investment loss |
| $ | (2,281,262 | ) | $ | (2,648,923 | ) |
|
|
|
10 | See Notes to Financial Statements. |
|
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Shares |
| ||||||||||||||||||
|
| ||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
| Year Ended 7/31 |
| |||||||||||||||||
|
|
| |||||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| |||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $15.41 |
|
|
| $16.36 |
|
| $12.91 |
|
| $12.08 |
|
| $15.76 |
|
| $18.69 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss)(a) |
|
|
| .02 |
|
|
| (.07 | ) |
| (.05 | ) |
| (.09 | ) |
| (.08 | ) |
| (.11 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.91 |
|
|
| (.88 | ) |
| 3.50 |
|
| .92 |
|
| (3.60 | ) |
| (.55 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.93 |
|
|
| (.95 | ) |
| 3.45 |
|
| .83 |
|
| (3.68 | ) |
| (.66 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| (2.27 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $17.34 |
|
|
| $15.41 |
|
| $16.36 |
|
| $12.91 |
|
| $12.08 |
|
| $15.76 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(b) |
|
|
| 12.60 | %(c) |
|
| (5.87 | )% |
| 26.72 | % |
| 6.87 | % |
| (23.35 | )% |
| (3.51 | )% |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .69 | %(c) |
|
| 1.36 | % |
| 1.33 | % |
| 1.35 | % |
| 1.40 | % |
| 1.36 | % |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .69 | %(c) |
|
| 1.36 | % |
| 1.33 | % |
| 1.35 | % |
| 1.40 | % |
| 1.36 | % |
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) |
|
|
| .10 | %(c) |
|
| (.48 | )% |
| (.33 | )% |
| (.67 | )% |
| (.70 | )% |
| (.69 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
|
| $269,214 |
|
|
| $275,157 |
|
| $398,577 |
|
| $494,581 |
|
| $508,663 |
|
| $739,334 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(c) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Calculated using average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(c) | Not annualized. |
|
|
|
| See Notes to Financial Statements. | 11 |
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class B Shares |
| ||||||||||||||||||
|
| ||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
| Year Ended 7/31 |
| |||||||||||||||||
|
|
| |||||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| |||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $14.27 |
|
|
| $15.25 |
|
| $12.11 |
|
| $11.41 |
|
| $14.98 |
|
| $17.99 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss(a) |
|
|
| (.04 | ) |
|
| (.16 | ) |
| (.14 | ) |
| (.17 | ) |
| (.15 | ) |
| (.21 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.78 |
|
|
| (.82 | ) |
| 3.28 |
|
| .87 |
|
| (3.42 | ) |
| (.53 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.74 |
|
|
| (.98 | ) |
| 3.14 |
|
| .70 |
|
| (3.57 | ) |
| (.74 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| (2.27 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $16.01 |
|
|
| $14.27 |
|
| $15.25 |
|
| $12.11 |
|
| $11.41 |
|
| $14.98 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(b) |
|
|
| 12.19 | %(c) |
|
| (6.43 | )% |
| 25.93 | % |
| 6.13 | % |
| (23.83 | )% |
| (4.15 | )% |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| 1.02 | %(c) |
|
| 2.01 | % |
| 1.98 | % |
| 2.00 | % |
| 2.05 | % |
| 2.01 | % |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| 1.02 | %(c) |
|
| 2.01 | % |
| 1.98 | % |
| 2.00 | % |
| 2.05 | % |
| 2.01 | % |
Net investment loss |
|
|
| (.24 | )%(c) |
|
| (1.13 | )% |
| (1.00 | )% |
| (1.33 | )% |
| (1.36 | )% |
| (1.34 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
|
| $14,179 |
|
|
| $17,548 |
|
| $29,291 |
|
| $33,599 |
|
| $44,468 |
|
| $71,936 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(c) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Calculated using average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(c) | Not annualized. |
|
|
|
12 | See Notes to Financial Statements. |
|
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class C Shares |
| ||||||||||||||||||
|
| ||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
| Year Ended 7/31 |
| |||||||||||||||||
|
|
| |||||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| |||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $14.25 |
|
|
| $15.23 |
|
| $12.10 |
|
| $11.40 |
|
| $14.96 |
|
| $17.97 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss(a) |
|
|
| (.03 | ) |
|
| (.16 | ) |
| (.14 | ) |
| (.16 | ) |
| (.15 | ) |
| (.21 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.77 |
|
|
| (.82 | ) |
| 3.27 |
|
| .86 |
|
| (3.41 | ) |
| (.53 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.74 |
|
|
| (.98 | ) |
| 3.13 |
|
| .70 |
|
| (3.56 | ) |
| (.74 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| (2.27 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $15.99 |
|
|
| $14.25 |
|
| $15.23 |
|
| $12.10 |
|
| $11.40 |
|
| $14.96 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(b) |
|
|
| 12.21 | %(c) |
|
| (6.43 | )% |
| 25.87 | % |
| 6.14 | % |
| (23.80 | )% |
| (4.16 | )% |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| 1.01 | %(c) |
|
| 2.00 | % |
| 1.97 | % |
| 2.00 | % |
| 2.05 | % |
| 2.01 | % |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| 1.01 | %(c) |
|
| 2.00 | % |
| 1.97 | % |
| 2.00 | % |
| 2.05 | % |
| 2.01 | % |
Net investment loss |
|
|
| (.22 | )%(c) |
|
| (1.11 | )% |
| (1.00 | )% |
| (1.33 | )% |
| (1.36 | )% |
| (1.34 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
|
| $78,467 |
|
|
| $80,666 |
|
| $109,317 |
|
| $118,244 |
|
| $141,177 |
|
| $227,183 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(c) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Calculated using average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions. |
(c) | Not annualized. |
|
|
|
| See Notes to Financial Statements. | 13 |
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class F Shares |
| ||||||||||||||||||||
|
| ||||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
| 9/28/2007(a) |
| ||||||||||
|
|
| Year Ended 7/31 |
|
| ||||||||||||||||||
|
|
|
|
| |||||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
|
| ||||||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $15.59 |
|
|
| $16.51 |
|
| $13.00 |
|
| $12.14 |
|
| $15.79 |
|
|
| $19.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss)(b) |
|
|
| .04 |
|
|
| (.03 | ) |
| (.01 | ) |
| (.06 | ) |
| (.05 | ) |
|
| (.02 | ) |
|
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.94 |
|
|
| (.89 | ) |
| 3.52 |
|
| .92 |
|
| (3.60 | ) |
|
| (1.06 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.98 |
|
|
| (.92 | ) |
| 3.51 |
|
| .86 |
|
| (3.65 | ) |
|
| (1.08 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.02 | ) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
|
Net realized gain |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| (2.27 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $17.55 |
|
|
| $15.59 |
|
| $16.51 |
|
| $13.00 |
|
| $12.14 |
|
|
| $15.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(c) |
|
|
| 12.71 | %(d) |
|
| (5.57 | )% |
| 27.00 | % |
| 7.08 | % |
| (23.12 | )% |
|
| (5.60 | )%(d) |
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .57 | %(d) |
|
| 1.11 | % |
| 1.08 | % |
| 1.10 | % |
| 1.14 | % |
|
| .90 | %(d) |
|
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .57 | %(d) |
|
| 1.11 | % |
| 1.08 | % |
| 1.10 | % |
| 1.14 | % |
|
| .90 | %(d) |
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) |
|
|
| .22 | %(d) |
|
| (.22 | )% |
| (.09 | )% |
| (.43 | )% |
| (.41 | )% |
|
| (.14 | )%(d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
|
| $9,892 |
|
|
| $9,989 |
|
| $12,459 |
|
| $14,469 |
|
| $9,920 |
|
|
| $5,703 |
|
|
Portfolio turnover rate |
|
|
| 61.07 | %(d) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
|
| 53.71 | % |
|
|
|
(a) | Commencement of operations was 9/28/2007, SEC effective date was 9/14/2007 and date shares first became available to the public was 10/1/2007. |
(b) | Calculated using average shares outstanding during the period. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
|
|
|
14 | See Notes to Financial Statements. |
|
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class I Shares | |||||||||||||||||||
|
| ||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
| Year Ended 7/31 | ||||||||||||||||||
|
|
| |||||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| |||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $16.01 |
|
|
| $16.94 |
|
| $13.32 |
|
| $12.42 |
|
| $16.15 |
|
| $19.03 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss)(a) |
|
|
| .05 |
|
|
| (.02 | ) |
| — | (b) |
| (.04 | ) |
| (.04 | ) |
| (.06 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.99 |
|
|
| (.91 | ) |
| 3.62 |
|
| .94 |
|
| (3.69 | ) |
| (.55 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 2.04 |
|
|
| (.93 | ) |
| 3.62 |
|
| .90 |
|
| (3.73 | ) |
| (.61 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
| (.04 | ) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gain |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| (2.27 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $18.01 |
|
|
| $16.01 |
|
| $16.94 |
|
| $13.32 |
|
| $12.42 |
|
| $16.15 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(c) |
|
|
| 12.75 | %(d) |
|
| (5.49 | )% |
| 27.18 | % |
| 7.25 | % |
| (23.10 | )% |
| (3.16 | )% |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .52 | %(d) |
|
| 1.01 | % |
| .98 | % |
| 1.00 | % |
| 1.05 | % |
| 1.01 | % |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .52 | %(d) |
|
| 1.01 | % |
| .98 | % |
| 1.00 | % |
| 1.05 | % |
| 1.01 | % |
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) |
|
|
| .30 | %(d) |
|
| (.12 | )% |
| (.01 | )% |
| (.32 | )% |
| (.34 | )% |
| (.34 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
| $ | 275,538 |
|
| $ | 332,630 |
| $ | 462,051 |
| $ | 450,908 |
| $ | 421,430 |
| $ | 461,503 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(d) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Calculated using average shares outstanding during the period. |
(b) | Amount is less than $.01. |
(c) | Total return assumes the reinvestment of all distributions. |
(d) | Not annualized. |
|
|
|
| See Notes to Financial Statements. | 15 |
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class P Shares | |||||||||||||||||||
|
| ||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
| Year Ended 7/31 | ||||||||||||||||||
|
|
| |||||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| |||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $15.36 |
|
|
| $16.32 |
|
| $12.89 |
|
| $12.08 |
|
| $15.77 |
|
| $18.72 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss)(a) |
|
|
| .01 |
|
|
| (.09 | ) |
| (.07 | ) |
| (.10 | ) |
| (.09 | ) |
| (.13 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.91 |
|
|
| (.87 | ) |
| 3.50 |
|
| .91 |
|
| (3.60 | ) |
| (.55 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.92 |
|
|
| (.96 | ) |
| 3.43 |
|
| .81 |
|
| (3.69 | ) |
| (.68 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| (2.27 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $17.28 |
|
|
| $15.36 |
|
| $16.32 |
|
| $12.89 |
|
| $12.08 |
|
| $15.77 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(b) |
|
|
| 12.50 | %(c) |
|
| (5.88 | )% |
| 26.61 | % |
| 6.71 | % |
| (23.40 | )% |
| (3.62 | )% |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .74 | %(c) |
|
| 1.46 | % |
| 1.43 | % |
| 1.45 | % |
| 1.50 | % |
| 1.46 | % |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .74 | %(c) |
|
| 1.46 | % |
| 1.43 | % |
| 1.45 | % |
| 1.50 | % |
| 1.46 | % |
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) |
|
|
| .03 | %(c) |
|
| (.58 | )% |
| (.45 | )% |
| (.78 | )% |
| (.79 | )% |
| (.79 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
| $ | 55,578 |
|
| $ | 68,979 |
| $ | 99,719 |
| $ | 109,109 |
| $ | 114,373 |
| $ | 136,221 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(c) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Calculated using average shares outstanding during the period. |
(b) | Total return assumes the reinvestment of all distributions. |
(c) | Not annualized. |
|
|
|
16 | See Notes to Financial Statements. |
|
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class R2 Shares |
| ||||||||||||||||||
|
|
| |||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| 3/24/2008(a) |
| |||||
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
| |||||||||||||||||
|
|
| 2012 |
|
| 2011 |
|
| 2010 |
|
| 2009 |
|
| |||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $15.25 |
|
|
| $16.23 |
|
| $12.85 |
|
| $12.05 |
|
| $15.75 |
|
| $14.99 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss)(b) |
|
|
| .01 |
|
|
| (.11 | ) |
| (.10 | ) |
| (.12 | ) |
| (.09 | ) |
| (.03 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.89 |
|
|
| (.87 | ) |
| 3.48 |
|
| .92 |
|
| (3.61 | ) |
| .79 | (c) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.90 |
|
|
| (.98 | ) |
| 3.38 |
|
| .80 |
|
| (3.70 | ) |
| .76 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $17.15 |
|
|
| $15.25 |
|
| $16.23 |
|
| $12.85 |
|
| $12.05 |
|
| $15.75 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(d) |
|
|
| 12.39 | %(e) |
|
| (6.04 | )% |
| 26.40 | % |
| 6.56 | % |
| (23.49 | )% |
| 5.07 | %(e) |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .82 | %(e) |
|
| 1.61 | % |
| 1.58 | % |
| 1.60 | % |
| 1.64 | % |
| .46 | %(e) |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .82 | %(e) |
|
| 1.61 | % |
| 1.58 | % |
| 1.60 | % |
| 1.64 | % |
| .46 | %(e) |
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) |
|
|
| .04 | %(e) |
|
| (.73 | )% |
| (.65 | )% |
| (.93 | )% |
| (.84 | )% |
| (.22 | )%(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
|
| $503 |
|
|
| $394 |
|
| $658 |
|
| $754 |
|
| $709 |
|
| $11 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(e) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Commencement of operations was 3/24/2008, SEC effective date was 9/14/2007 and date shares first became available to the public was 4/1/2008. |
(b) | Calculated using average shares outstanding during the period. |
(c) | The per share amount does not represent the net realized and unrealized gain (loss) as presented on the Statement of Operations for the period due to the timing of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time. |
(d) | Total return assumes the reinvestment of all distributions. |
(e) | Not annualized. |
|
|
|
| See Notes to Financial Statements. | 17 |
Financial Highlights (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class R3 Shares | |||||||||||||||||||
|
| ||||||||||||||||||||
|
| Six Months |
|
|
|
|
|
|
|
|
| 3/24/2008(a) |
| ||||||||
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
| |||||||||||||||||
|
|
| 2012 |
| 2011 |
| 2010 |
| 2009 |
|
| ||||||||||
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period |
|
|
| $15.30 |
|
|
| $16.28 |
|
| $12.86 |
|
| $12.05 |
|
| $15.74 |
|
| $14.99 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss)(b) |
|
|
| .01 |
|
|
| (.09 | ) |
| (.08 | ) |
| (.11 | ) |
| (.08 | ) |
| (.05 | ) |
Net realized and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized gain (loss) |
|
|
| 1.91 |
|
|
| (.89 | ) |
| 3.50 |
|
| .92 |
|
| (3.61 | ) |
| .80 | (c) |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total from investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
|
| 1.92 |
|
|
| (.98 | ) |
| 3.42 |
|
| .81 |
|
| (3.69 | ) |
| .75 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net asset value, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period |
|
|
| $17.22 |
|
|
| $15.30 |
|
| $16.28 |
|
| $12.86 |
|
| $12.05 |
|
| $15.74 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total Return(d) |
|
|
| 12.48 | %(e) |
|
| (5.96 | )% |
| 26.52 | % |
| 6.63 | % |
| (23.38 | )% |
| 5.00 | %(e) |
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .77 | %(e) |
|
| 1.50 | % |
| 1.48 | % |
| 1.49 | % |
| 1.52 | % |
| .53 | %(e) |
Expenses, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense reductions |
|
|
| .77 | %(e) |
|
| 1.50 | % |
| 1.48 | % |
| 1.49 | % |
| 1.52 | % |
| .53 | %(e) |
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) |
|
|
| .03 | %(e) |
|
| (.62 | )% |
| (.55 | )% |
| (.81 | )% |
| (.76 | )% |
| (.29 | )%(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000) |
|
|
| $17,415 |
|
|
| $16,490 |
|
| $19,671 |
|
| $16,516 |
|
| $2,568 |
|
| $105 |
|
Portfolio turnover rate |
|
|
| 61.07 | %(e) |
|
| 81.63 | % |
| 73.17 | % |
| 67.29 | % |
| 42.78 | % |
| 53.71 | % |
|
|
(a) | Commencement of operations was 3/24/2008, SEC effective date was 9/14/2007 and date shares first became available to the public was 4/1/2008. |
(b) | Calculated using average shares outstanding during the period. |
(c) | The per share amount does not represent the net realized and unrealized gain (loss) as presented on the Statement of Operations for the period due to the timing of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time. |
(d) | Total return assumes the reinvestment of all distributions. |
(e) | Not annualized. |
|
|
18 | See Notes to Financial Statements. |
Notes to Financial Statements (unaudited)
|
|
|
1. | ORGANIZATION |
|
Lord Abbett Equity Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Trust was formed on May 1, 2001 and is organized as a Delaware statutory trust. The Trust currently consists of three funds. This report covers Lord Abbett Small-Cap Blend Fund (the “Fund”).
The Fund’s investment objective is to seek long-term growth of capital by investing primarily in stocks of small companies. The Fund has eight classes of shares: Class A, B, C, F, I, P, R2 and R3, each with different expenses and dividends. A front-end sales charge is normally added to the net asset value (“NAV”) for Class A shares. There is no front-end sales charge in the case of Class B, C, F, I, P, R2 and R3 shares, although there may be a contingent deferred sales charge (“CDSC”) in certain cases as follows: Class A shares purchased without a sales charge and redeemed before the first day of the month in which the one-year anniversary of the purchase falls (subject to certain exceptions as set forth in the Fund’s prospectus); Class B shares redeemed before the sixth anniversary of purchase; and Class C shares redeemed before the first anniversary of purchase. Class B shares will automatically convert to Class A shares 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. The Fund is closed to most new investors but is open to certain new investors on a limited basis as set forth in the Fund’s prospectus. The Fund no longer issues Class B shares for purchase. The Fund’s Class P shares are closed to substantially all investors, with certain exceptions as set forth in the Fund’s prospectus.
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
|
|
|
2. | SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
(a) | Investment Valuation–Under procedures approved by the Fund’s Board of Trustees (the “Board”), Lord, Abbett & Co. LLC (“Lord Abbett”), the Fund’s investment manager has formed a Pricing Committee to administer the pricing and valuation of portfolio investments and to ensure that prices utilized reasonably reflect fair value. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value. | |
|
| |
| Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. |
19
Notes to Financial Statements (unaudited)(continued)
|
|
| Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee and approved by the Board. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information to determine fair value of portfolio investments. The Board or a designated committee thereof regularly reviews fair value determinations made by the Pricing Committee and employs techniques such as reviewing related market activity, reviewing inputs and assumptions, and retrospectively comparing prices of subsequent purchases and sales transactions to fair value determinations made by the Pricing Committee. |
|
|
| Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value. |
|
|
(b) | Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method. Realized and unrealized gains (losses) are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. |
|
|
(c) | Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income on the Statement of Operations. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. |
|
|
(d) | Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required. |
|
|
| The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax returns remains open for the fiscal years ended July 31, 2009 through July 31, 2012. The statutes of limitations on the Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. |
|
|
(e) | Expenses–Expenses, excluding class-specific expenses, are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Class A, B, C, F, P, R2 and R3 shares bear their class-specific share of all expenses and fees relating to the Fund’s 12b-1 Distribution Plan. |
|
|
(f) | Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies on the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized gain on investments and foreign currency related transactions on |
20
Notes to Financial Statements (unaudited)(continued)
|
|
|
| the Fund’s Statement of Operations. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities. | |
|
| |
| The Fund uses foreign currency exchange contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contract’s terms. | |
|
| |
(g) | Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the fair value of these securities has declined, the Fund may incur a loss upon disposition of the securities. | |
|
| |
(h) | Fair Value Measurements–Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk—for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below: | |
|
|
|
| • | Level 1 – unadjusted quoted prices in active markets for identical investments; |
|
|
|
| • | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and |
|
|
|
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
Changes in valuation techniques may result in transfers into or out of an assigned level within the three-tier hierarchy. All transfers between different levels within the three-tier hierarchy are deemed to have occurred as of the beginning of the reporting period. 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, 2013 in valuing the Fund’s investments carried at fair value:
21
Notes to Financial Statements (unaudited)(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type* |
| Level 1 | ) | Level 2 | ) | Level 3 | ) | Total | ) | ||||
Common Stocks |
| $ | 690,135 |
| $ | — |
| $ | — |
| $ | 690,135 |
|
Repurchase Agreement |
|
| — |
|
| 22,385 |
|
| — |
|
| 22,385 |
|
Total |
| $ | 690,135 |
| $ | 22,385 |
| $ | — |
| $ | 712,520 |
|
|
|
|
* | See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography. There were no level transfers during the period ended January 31, 2013. | |
|
| |
3. | MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES |
|
|
| |
Management Fee |
The Trust has a management agreement with 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:
|
|
First $1 billion | .75% |
Over $1 billion | .70% |
For the six months ended January 31, 2013, the effective management fee paid to Lord Abbett was at an annualized rate of .75% 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.
The Fund, along with certain other funds managed by Lord Abbett (collectively, the “Underlying Funds”), has entered into a Servicing Arrangement with Lord Abbett Alpha Strategy Fund of Lord Abbett Securities Trust (“Alpha Strategy Fund”), pursuant to which each Underlying Fund pays a portion of the expenses (excluding management fee and distribution and service fees) of Alpha Strategy Fund in proportion to the average daily value of the Underlying Fund shares owned by Alpha Strategy Fund. Amounts paid pursuant to the Servicing Arrangement are included in Subsidy expense on the Fund’s Statement of Operations and Payable to affiliate on the Fund’s Statement of Assets and Liabilities.
As of January 31, 2013, the percentage of the Fund’s outstanding shares owned by Alpha Strategy Fund was 12.01%.
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.
22
Notes to Financial Statements (unaudited)(continued)
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, 2013:
|
|
|
|
|
|
| Distributor |
|
| Dealers’ |
|
| |||||
| $8,838 |
|
| $48,919 |
|
Distributor received CDSCs of $1,421 and $1,300 for Class A and Class C shares, respectively, for the six months ended January 31, 2013.
During the six months ended January 31, 2013, two Trustees and certain of the Fund’s officers had an interest in Lord Abbett.
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4. | DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS |
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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 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.
The tax character of distributions paid during the six months ended January 31, 2013 and the fiscal year ended July 31, 2012 was as follows:
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| Six Months Ended |
| Year Ended |
| ||
| |||||||
Distributions paid from: |
|
|
|
|
|
|
|
Net investment income |
| $ | 716,326 |
| $ | — |
|
| |||||||
Total distributions paid |
| $ | 716,326 |
| $ | — |
|
|
As of July 31, 2012, the Fund had a capital loss carryforward of $69,332,969 set to expire in 2018.
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 also retain their character as either short-term or long-term and be utilized before any pre-enactment losses.
As of January 31, 2013, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:
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|
|
Tax cost |
| $ | 637,991,037 |
|
| ||||
Gross unrealized gain |
|
| 95,103,721 |
|
Gross unrealized loss |
|
| (20,574,270 | ) |
| ||||
Net unrealized security gain |
| $ | 74,529,451 |
|
|
23
Notes to Financial Statements (unaudited)(continued)
The difference between book-basis and tax-basis unrealized gains (losses) is attributable to the tax treatment of certain securities and wash sales.
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5. | PORTFOLIO SECURITIES TRANSACTIONS |
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Purchases and sales of investment securities (excluding short-term investments) for the six months ended January 31, 2013 were as follows:
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|
|
|
| Purchases |
|
| Sales |
|
| |||||
| $463,641,292 |
|
| $651,757,906 |
|
There were no purchases or sales of U.S. Government securities for the six months ended January 31, 2013.
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6. | TRUSTEES’ REMUNERATION |
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During the six months ended January 31, 2013, the Trust’s officers and the two Trustees who were associated with Lord Abbett did not receive any compensation from the Trust 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.
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7. | EXPENSE REDUCTIONS |
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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.
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8. | LINE OF CREDIT |
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On April 2, 2012, the Fund and certain other funds managed by Lord Abbett (the “participating funds”) entered into an unsecured revolving credit facility (“Facility”) with 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 amounts available under the Facility are (i) the lesser of either $250,000,000 or 33.33% of total assets per participating fund and (ii) $350,000,000 in the aggregate for all participating funds. The annual fee to maintain the Facility is .09% 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. As of January 31, 2013, there were no loans outstanding pursuant to this Facility nor was the Facility utilized at any time during the six months ended January 31, 2013.
For the period February 3, 2011 through April 1, 2012, the Fund and certain other funds managed by Lord Abbett had an amount of $200,000,000 available under a Facility from SSB with an annual fee to maintain the Facility of .125% of the amount available under the Facility.
24
Notes to Financial Statements (unaudited)(continued)
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9. | CUSTODIAN AND ACCOUNTING AGENT |
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SSB is the Trust’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.
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10. | INVESTMENT RISKS |
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The Fund is subject to the general risks and considerations associated with equity investing, as well as the particular risks associated with growth and value stocks. The value of an investment in the Fund will fluctuate in response to movements in the equity securities markets in general and to the changing prospects of individual companies in which the Fund invests. Different types of stocks tend to shift in and out of favor depending on market and economic conditions. Growth stocks may be more volatile than other stocks. The market may fail to recognize the intrinsic value of particular value stocks for a long time. In addition, if the Fund’s assessment of market conditions or companies is wrong, it could suffer losses or produce poor performance relative to other funds, even in a rising market. The Fund invests primarily in small company stocks, which tend to be more volatile and can be less liquid than large company stocks. Small companies may also have more limited product lines, markets or financial resources, and typically experience a higher risk of failure than large companies.
Due to the Fund’s exposure to foreign companies and American Depositary Receipts, the Fund may experience increased market, liquidity, currency, political, information, and other risks.
These factors can affect the Fund’s performance.
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11. | SUMMARY OF CAPITAL TRANSACTIONS |
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Transactions in shares of beneficial interest were as follows:
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|
|
|
|
| Six Months Ended |
| Year Ended |
| ||||||||
| |||||||||||||
Class A Shares |
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
| |||||||||||||
Shares sold |
|
| 622,635 |
| $ | 10,165,217 |
|
| 2,517,201 |
| $ | 38,089,548 |
|
Converted from Class B* |
|
| 162,497 |
|
| 2,645,017 |
|
| 291,758 |
|
| 4,434,964 |
|
Shares reacquired |
|
| (3,121,706 | ) |
| (50,735,853 | ) |
| (9,314,573 | ) |
| (140,235,136 | ) |
| |||||||||||||
Decrease |
|
| (2,336,574 | ) | $ | (37,925,619 | ) |
| (6,505,614 | ) | $ | (97,710,624 | ) |
| |||||||||||||
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|
|
Class B Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 9,587 |
| $ | 143,576 |
|
| 15,435 |
| $ | 231,056 |
|
Shares reacquired |
|
| (178,008 | ) |
| (2,651,881 | ) |
| (392,221 | ) |
| (5,480,572 | ) |
Converted to Class A* |
|
| (175,792 | ) |
| (2,645,017 | ) |
| (314,138 | ) |
| (4,434,964 | ) |
| |||||||||||||
Decrease |
|
| (344,213 | ) | $ | (5,153,322 | ) |
| (690,924 | ) | $ | (9,684,480 | ) |
| |||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 92,772 |
| $ | 1,390,319 |
|
| 236,091 |
| $ | 3,324,570 |
|
Shares reacquired |
|
| (845,756 | ) |
| (12,637,844 | ) |
| (1,753,625 | ) |
| (24,578,771 | ) |
| |||||||||||||
Decrease |
|
| (752,984 | ) | $ | (11,247,525 | ) |
| (1,517,534 | ) | $ | (21,254,201 | ) |
|
25
Notes to Financial Statements (unaudited)(concluded)
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|
|
| Six Months Ended |
| Year Ended |
| ||||||||
| |||||||||||||
Class F Shares |
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
| |||||||||||||
Shares sold |
|
| 66,516 |
| $ | 1,098,309 |
|
| 122,166 |
| $ | 1,826,603 |
|
Reinvestment of distributions |
|
| 532 |
|
| 8,785 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (144,114 | ) |
| (2,370,633 | ) |
| (235,964 | ) |
| (3,616,624 | ) |
| |||||||||||||
Decrease |
|
| (77,066 | ) | $ | (1,263,539 | ) |
| (113,798 | ) | $ | (1,790,021 | ) |
| |||||||||||||
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|
|
Class I Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 1,013,579 |
| $ | 17,300,586 |
|
| 4,258,957 |
| $ | 65,223,291 |
|
Reinvestment of distributions |
|
| 37,955 |
|
| 643,339 |
|
| — |
|
| — |
|
Shares reacquired |
|
| (6,531,047 | ) |
| (113,195,814 | ) |
| (10,757,304 | ) |
| (166,532,948 | ) |
| |||||||||||||
Decrease |
|
| (5,479,513 | ) | $ | (95,251,889 | ) |
| (6,498,347 | ) | $ | (101,309,657 | ) |
| |||||||||||||
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|
Class P Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 175,395 |
| $ | 2,841,412 |
|
| 656,102 |
| $ | 9,884,765 |
|
Shares reacquired |
|
| (1,450,397 | ) |
| (23,471,317 | ) |
| (2,273,590 | ) |
| (34,217,150 | ) |
| |||||||||||||
Decrease |
|
| (1,275,002 | ) | $ | (20,629,905 | ) |
| (1,617,488 | ) | $ | (24,332,385 | ) |
| |||||||||||||
|
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|
|
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|
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|
|
|
|
|
|
Class R2 Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 7,520 |
| $ | 117,839 |
|
| 11,252 |
| $ | 173,032 |
|
Shares reacquired |
|
| (4,032 | ) |
| (64,497 | ) |
| (25,919 | ) |
| (378,664 | ) |
| |||||||||||||
Increase (decrease) |
|
| 3,488 |
| $ | 53,342 |
|
| (14,667 | ) | $ | (205,632 | ) |
| |||||||||||||
|
|
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|
|
|
|
|
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|
|
|
Class R3 Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares sold |
|
| 202,468 |
| $ | 3,245,780 |
|
| 406,798 |
| $ | 6,159,911 |
|
Shares reacquired |
|
| (268,369 | ) |
| (4,335,409 | ) |
| (537,950 | ) |
| (8,105,437 | ) |
| |||||||||||||
Decrease |
|
| (65,901 | ) | $ | (1,089,629 | ) |
| (131,152 | ) | $ | (1,945,526 | ) |
|
|
|
* | 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. |
|
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12. | SUBSEQUENT EVENTS |
|
On February 28, 2013, the Fund’s Board approved a proposal to reorganize the Fund into Lord Abbett Securities Trust – Lord Abbett Value Opportunities Fund to create a single larger fund. The reorganization requires the approval of the Fund’s shareholders at a future shareholder meeting.
26
Approval of Advisory Contract
The Board of Trustees of the Fund, including all of the Trustees who are not interested persons of the Fund or Lord, Abbett & Co. LLC (“Lord Abbett”), annually considers whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In connection with its most recent approval, the Board reviewed materials relating specifically to the management agreement, as well as numerous materials received throughout the course of the year, including information about the Fund’s investment performance compared to the performance of its benchmark. Before making its decision as to the Fund, the Board had the opportunity to ask questions and request further information, taking into account its familiarity with Lord Abbett gained through its meetings and discussions. These meetings and discussions included the examination of the portfolio management team conducted by members of the Contract Committee, the deliberations of the Contract Committee, and discussions between the Contract Committee and Lord Abbett’s management.
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 a group of funds within the same investment classification/objective (the “performance universe”) and the investment performance of an appropriate benchmark; (2) information provided by Lipper Inc. regarding the expense ratios, contractual and effective management fee rates, and other expense components for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”); (3) detailed performance attribution analysis; (4) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (5) sales and redemption information for the Fund; (6) information regarding Lord Abbett’s financial condition; (7) an analysis of the relative profitability of the management agreement to Lord Abbett; (8) 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; (9) information regarding the distribution arrangements of the Fund; and (10) 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 September 30, 2012. The Board observed that the investment performance of the Class A shares was below the median of the performance universe for each of the 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 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
27
personnel. The Board also considered the steps Lord Abbett had taken or was taking to improve investment performance of the Fund.
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 (“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 projected expense levels and how those levels would relate to those of the peer group and the amount and nature of the fees paid by shareholders. The Board observed that the expense ratios generally were near the medians 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, 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 concluded that Lord Abbett’s profitability 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 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 Distributor receives 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 12b-1 fees from the Funds, and receives a portion of the sales charges on sales and redemptions of some classes of shares. In addition, the Board observed that 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.
28
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. 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. 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.
29
Householding
The Trust 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).
30
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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 Equity Trust | LASCB-3-0113 |
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. |
Item 12: Exhibits.
(a)(1) | The Lord Abbett Family of Funds Sarbanes Oxley Code of Ethics for the Principal Executive Officer and Senior Financial Officers is attached hereto as part of Ex-99. CODEETH. |
(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. |
(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 EQUITY TRUST
By: /s/ Daria L. Foster
Daria L. Foster
President and Chief Executive Officer
Date: March 27, 2013
By: /s/ Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President
Date: March 27, 2013
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/ Daria L. Foster
Daria L. Foster
President and Chief Executive Officer
Date: March 27, 2013
By: /s/ Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President
Date: March 27, 2013