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 BLEND TRUST |
(Exact name of registrant as specified in charter) |
|
90 Hudson Street, Jersey City, NJ | | 07302 |
(Address of principal executive offices) | | (Zip code) |
|
Christina T. Simmons, 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: | 1/31/2007 | |
| | | | | | | |
Item 1: Report to Shareholders.
lord abbett 2007
semiannual
report
Lord Abbett Small Cap Blend Fund
For the six-month period ended January 31, 2007
Lord Abbett Small Cap Blend Fund
Semiannual Report
For the six-month period ended January 31, 2007
Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Small Cap Blend Fund's performance for the six-month period ended January 31, 2007. On this and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries of the Fund's portfolio managers.
General information about Lord Abbett mutual funds, as well as in-depth discussion of market trends and investment strategies, is also provided in Lord Abbett Insights, a newsletter accompanying your quarterly account statements. We also encourage you to call Lord Abbett at 800-821-5129 and speak to one of our professionals if you would like more information.
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.
From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.
Best regards,
Robert S. Dow
Chairman
Q: What were the overall market conditions during the six-month period ended January 31, 2007?
A: The S&P Composite 1500® Index1 gained nearly 14% (including dividends) in the six-month period ended January 31, 2007. The positive performance turned in by equities occurred as two very important macro developments unfolded: crude oil prices tumbled and the outlook for short-term interest rates shifted.
Between August 8 and December 31, 2006, oil prices declined roughly 21%, prompting a decline of approximately $0.70 in the average retail cost of a gallon of regular gasoline. As a rule of thumb, every one-cent decline in a gallon of gasoline translates into a $1 billion increase in aggregate discretionary income; therefore, consumers received an
1
extra $70 billion in the fourth quarter, on top of further employment gains. As a result, consumer spending leapt and so did consumer discretionary stocks. Following the strong returns of the consumer discretionary sector, the technology sector also outperformed the broad market. Of course, as the price of crude oil plummeted, so too did the energy sector.
Many market participants were convinced that the Federal Reserve Board (the Fed) would soon lower rates. The yield on the 10-year Treasury bond fell, as did forward rates on short-term deposits, until early December 2006. The financial sector benefited from the prospects of lower short rates; however, a string of positive economic news sent bond investors reeling. The 10-year yield rallied, forward rates rose, and the financial sector stalled. Although the financial sector struggled, led by regional banks, the broader market pushed higher in December and January.
In the six-month period ended January 31, 2007, on a total return basis, large caps (as represented by the S&P 100® Index2) outperformed small and mid caps (as represented by the S&P SmallCap 600® Index3 and the S&P MidCap 400® Index4) by approximately 1.6%, reflecting the superior dividends offered by large caps. The value style of investing continued its streak of outperforming the growth style, but the gap narrowed.
Q: How did the Fund perform during the six-month period ended January 31, 2007?
A: The Fund returned 13.6%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, compared with its benchmark, the Russell 2000® Index,5 which returned 15.0% over the same period.
Q: What were the most significant factors affecting performance?
A: The consumer discretionary sector was the greatest detractor from the Fund's performance relative to its benchmark, followed by the producer durables sector and the auto and transportation sector.
Among the individual firms that detracted from performance were technology holdings CACI International Inc. (the Fund's number-one detractor), a provider of information technology products and services, and RadiSys Corp., a designer of embedded computer solutions; consumer discretionary holding Select Comfort Corp., a designer of a line of air bed mattresses with adjustable firmness, as well as foundations and accessories; healthcare holding LCA-Vision Inc., an operator of stand-alone laser vision correction centers; and materials and processing holding Gibraltar Industries Inc., a manufacturer of metals and other engineered materials
2
for the building products, vehicular, and other industrial markets.
The strongest contributor to the Fund's performance relative to its benchmark was the other energy sector (which includes oil service companies, as well as smaller exploration and production companies, and independent refiners), followed by the technology sector and the consumer staples sector.
Among the individual firms that contributed to performance were technology holdings TALX Corp. (the Fund's number-one contributor), a business process outsourcer for payroll data-centric services; other energy holding EXCO Resources, Inc., a company that explores for oil and natural gas; consumer staples holding J & J Snack Foods Corp., a maker of a variety of snack foods and beverages; healthcare holding Kyphon Inc., a company that utilizes its balloon technology to develop medical devices for orthopedic applications; and financial services holding U.S.I. Holdings Corp., a provider of insurance brokerage and employee health and welfare products, and related consulting and administration services.
The Fund's portfolio is actively managed and, therefore, its holdings and weightings of a particular issuer or particular sector as a percentage of portfolio assets are subject to change. Sectors may include many industries.
A prospectus contains important information about a fund, including its investment objectives, risks, charges, and ongoing expenses, which an investor should carefully consider before investing. To obtain a prospectus on any Lord Abbett mutual fund, please contact your investment professional or Lord Abbett Distributor LLC at 800-874-3733 or visit our Website www.lordabbett.com. Read the prospectus carefully before investing.
1 The S&P Composite 1500® Index is a broad market portfolio representing the large cap, mid cap, and small cap segments of the U.S. equity market.
2 The S&P 100® Index measures large company U.S. stock market performance. This market capitalization-weighted index is made up of 100 major, blue-chip stocks across diverse industry groups.
3 The S&P SmallCap 600® Index is comprised of 600 small-cap companies that meet specific inclusion criteria to ensure that they are investable and financially viable.
4 The S&P MidCap 400® Index measures the performance of the mid-size company segment of the U.S. market.
5 The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.
Important Performance and Other Information
Performance data quoted reflect past performance and are no guarantee of future
3
results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in the Fund will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling Lord Abbett at 800-821-5129 or referring to our Website at www.lordabbett.com.
Except where noted, comparative fund performance does not account for the deduction of sales charges and would be different if sales charges were included. The Fund offers additional classes of shares with distinct pricing options. For a full description of the differences in pricing alternatives, please see the Fund's prospectus.
The views of the Fund's management and the portfolio holdings described in this report are as of January 31, 2007; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.
A Note about Risk: See Notes to Financial Statements for a discussion of investment risks. For a more detailed discussion of the risks associated with the Fund, please see the Fund's prospectus.
Mutual funds are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks, and are subject to investment risks, including possible loss of principal amount invested.
4
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges 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, 2006 through January 31, 2007).
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 entitled "Expenses Paid During the Period 8/1/06 – 1/31/07" 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.
5
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. 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
Account
Value | | Ending
Account
Value | | Expenses
Paid During
Period† | |
| | | 8/1/06 | | 1/31/07 | | 8/1/06 –
1/31/07 | |
| Class A | |
| Actual | | $ | 1,000.00 | | | $ | 1,135.60 | | | $ | 7.27 | | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,018.42 | | | $ | 6.87 | | |
| Class B | |
| Actual | | $ | 1,000.00 | | | $ | 1,132.00 | | | $ | 10.75 | | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,015.23 | | | $ | 10.16 | | |
| Class C | |
| Actual | | $ | 1,000.00 | | | $ | 1,132.10 | | | $ | 10.75 | | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,015.23 | | | $ | 10.16 | | |
| Class P | |
| Actual | | $ | 1,000.00 | | | $ | 1,135.30 | | | $ | 7.80 | | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,017.91 | | | $ | 7.38 | | |
| Class Y | |
| Actual | | $ | 1,000.00 | | | $ | 1,137.40 | | | $ | 5.39 | | |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.18 | | | $ | 5.09 | | |
† For each class of the Fund, expenses are equal to the annualized expense ratio for such class (1.35% for Class A, 2.00% for Classes B and C, 1.45% for Class P and 1.00% for Class Y) 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, 2007
| Sector* | | %** | |
| Auto & Transportation | | | 2.40 | % | |
| Consumer Discretionary | | | 12.23 | % | |
| Consumer Staples | | | 2.26 | % | |
| Financial Services | | | 16.07 | % | |
| Healthcare | | | 15.23 | % | |
| Materials & Processing | | | 14.21 | % | |
| Other Energy | | | 2.83 | % | |
| Producer Durables | | | 13.61 | % | |
| Technology | | | 18.20 | % | |
| Short-Term Investment | | | 2.96 | % | |
| Total | | | 100.00 | % | |
* A sector may comprise several industries.
** Represents percent of total investments.
6
Schedule of Investments (unaudited)
January 31, 2007
| Investments | | Shares | | Value
(000) | |
| COMMON STOCKS 96.40% | |
| Aerospace 2.26% | |
| Curtiss-Wright Corp. | | | 737,678 | | | $ | 28,165 | | |
| HEICO Corp. | | | 165,900 | | | | 6,079 | | |
| HEICO Corp., Class A | | | 60,296 | | | | 1,854 | | |
| Total | | | | | | | 36,098 | | |
| Air Transportation 0.42% | |
| AirTran Holdings, Inc.* | | | 603,000 | | | | 6,675 | | |
| Auto Components 0.81% | |
| Wabash National Corp. | | | 809,950 | | | | 12,911 | | |
| Banks 2.44% | |
Investors Financial
Services Corp. | | | 582,625 | | | | 27,249 | | |
| PrivateBancorp, Inc. | | | 310,819 | | | | 11,622 | | |
| Total | | | | | | | 38,871 | | |
Biotechnology Research &
Production 0.70% | |
| Kensey Nash Corp.* | | | 351,304 | | | | 11,129 | | |
| Building: Materials 3.20% | |
NCI Building
Systems, Inc.* | | | 288,800 | | | | 16,438 | | |
| Watsco, Inc. | | | 676,500 | | | | 34,515 | | |
| Total | | | | | | | 50,953 | | |
| Building: Roofing & Wallboard 2.79% | |
Beacon Roofing
Supply, Inc.* | | | 2,133,250 | | | | 44,457 | | |
| Chemicals 1.10% | |
| Albemarle Corp. | | | 105,800 | | | | 8,250 | | |
| EnerSys* | | | 573,500 | | | | 9,325 | | |
| Total | | | | | | | 17,575 | | |
| Communications & Media 1.50% | |
Entravision
Communications Corp.* | | | 2,995,800 | | | | 23,966 | | |
| Investments | | Shares | | Value
(000) | |
| Communications Technology 4.65% | |
Comtech
Telecommunication Corp.* | | | 569,259 | | | $ | 20,493 | | |
| Foundry Networks, Inc.* | | | 1,215,366 | | | | 17,586 | | |
| TALX Corp. | | | 871,842 | | | | 27,777 | | |
WebEx
Communications, Inc.* | | | 220,480 | | | | 8,175 | | |
| Total | | | | | | | 74,031 | | |
Computer Services, Software &
Systems 5.22% | |
CACI International
Inc., Class A* | | | 476,300 | | | | 22,400 | | |
| Epicor Software Corp.* | | | 1,525,925 | | | | 21,134 | | |
Lionbridge
Technologies, Inc.* | | | 1,803,420 | | | | 11,668 | | |
| Websense, Inc.* | | | 1,292,200 | | | | 27,976 | | |
| Total | | | | | | | 83,178 | | |
| Computer Technology 3.97% | |
| Komag, Inc.* | | | 531,740 | | | | 18,143 | | |
| RadiSys Corp.*(a) | | | 1,090,625 | | | | 18,333 | | |
| Stratasys, Inc.*(a) | | | 831,924 | | | | 26,821 | | |
| Total | | | | | | | 63,297 | | |
| Consumer Electronics 1.55% | |
| LoJack Corp.* | | | 395,299 | | | | 7,088 | | |
Universal
Electronics, Inc.*(a) | | | 843,228 | | | | 17,607 | | |
| Total | | | | | | | 24,695 | | |
| Consumer Products 1.92% | |
USANA Health
Sciences, Inc.* | | | 575,899 | | | | 30,569 | | |
| Diversified Financial Services 2.53% | |
| Jones Lang LaSalle, Inc. | | | 28,400 | | | | 2,968 | | |
| USI Holdings Corp.* | | | 2,256,239 | | | | 37,296 | | |
| Total | | | | | | | 40,264 | | |
| Diversified Manufacturing 2.52% | |
| CLARCOR, Inc. | | | 610,600 | | | | 21,163 | | |
| Hexcel Corp.* | | | 988,700 | | | | 19,023 | | |
| Total | | | | | | | 40,186 | | |
See Notes to Financial Statements.
7
Schedule of Investments (unaudited)(continued)
January 31, 2007
| Investments | | Shares | | Value
(000) | |
| Education Services 1.63% | |
| Strayer Education, Inc. | | | 228,196 | | | $ | 25,962 | | |
| Electrical & Electronics 1.50% | |
| Power Integrations, Inc.* | | | 1,053,215 | | | | 23,887 | | |
| Electrical Equipment & Components 1.57% | |
| Genlyte Group, Inc. (The)* | | | 330,315 | | | | 25,028 | | |
| Electronics 0.03% | |
| Avid Technology, Inc.* | | | 11,202 | | | | 414 | | |
Electronics: Instruments, Gauges &
Meters 2.15% | |
| FARO Technologies, Inc.* | | | 306,824 | | | | 7,603 | | |
Measurement
Specialties, Inc.*(a) | | | 1,275,545 | | | | 26,710 | | |
| Total | | | | | | | 34,313 | | |
| Electronics: Technology 2.72% | |
| PerkinElmer, Inc. | | | 709,800 | | | | 16,943 | | |
| ScanSource, Inc.* | | | 897,806 | | | | 26,342 | | |
| Total | | | | | | | 43,285 | | |
| Engineering & Contracting Services 0.56% | |
| Foster Wheeler Ltd.* | | | 167,204 | | | | 8,940 | | |
| Foods 2.25% | |
| J & J Snack Foods Corp. | | | 867,538 | | | | 35,812 | | |
| Health & Personal Care 2.80% | |
| Amedisys, Inc.*(a) | | | 1,379,478 | | | | 44,585 | | |
| Healthcare Facilities 5.94% | |
| ICON plc ADR* | | | 559,304 | | | | 20,862 | | |
| LCA-Vision Inc. | | | 990,656 | | | | 38,358 | | |
United Surgical
Partners, Inc.* | | | 1,163,729 | | | | 35,459 | | |
| Total | | | | | | | 94,679 | | |
| Household Furnishings 3.12% | |
| Select Comfort Corp.*(a) | | | 2,692,508 | | | | 49,650 | | |
| Investments | | Shares | | Value
(000) | |
Identification Control & Filter
Devices 0.85% | |
| X-Rite, Inc. | | | 1,207,760 | | | $ | 13,563 | | |
| Insurance: Multi-Line 3.06% | |
| HealthExtras, Inc.* | | | 128,900 | | | | 3,295 | | |
| Hilb, Rogal & Hobbs Co. | | | 1,076,900 | | | | 45,499 | | |
| Total | | | | | | | 48,794 | | |
| Insurance: Property-Casualty 3.74% | |
| First Acceptance Corp.* | | | 423,100 | | | | 4,379 | | |
HCC Insurance
Holdings, Inc. | | | 559,950 | | | | 17,487 | | |
| Ohio Casualty Corp. | | | 1,275,342 | | | | 37,674 | | |
| Total | | | | | | | 59,540 | | |
| Machinery: Industrial/Specialty 2.40% | |
| Actuant Corp., Class A | | | 768,600 | | | | 38,269 | | |
| Machinery: Specialty 3.62% | |
Bucyrus
International, Inc. | | | 456,100 | | | | 21,168 | | |
| Flow International Corp.* | | | 717,939 | | | | 8,385 | | |
| Graco, Inc. | | | 691,700 | | | | 28,201 | | |
| Total | | | | | | | 57,754 | | |
Medical & Dental Instruments &
Supplies 4.30% | |
| Kyphon Inc.* | | | 593,332 | | | | 27,762 | | |
| Mentor Corp. | | | 489,100 | | | | 24,939 | | |
| Symmetry Medical Inc.* | | | 1,066,700 | | | | 14,699 | | |
| Techne Corp.* | | | 20,400 | | | | 1,184 | | |
| Total | | | | | | | 68,584 | | |
| Medical Services 1.39% | |
| Option Care, Inc. | | | 1,677,366 | | | | 22,124 | | |
| Metal Fabricating 1.78% | |
| Commercial Metals Co. | | | 750,000 | | | | 20,333 | | |
Reliance Steel &
Aluminum Co. | | | 194,700 | | | | 8,107 | | |
| Total | | | | | | | 28,440 | | |
See Notes to Financial Statements.
8
Schedule of Investments (unaudited)(concluded)
January 31, 2007
| Investments | | Shares | | Value
(000) | |
| Oil: Crude Producers 2.81% | |
| Comstock Resources, Inc.* | | | 349,700 | | | $ | 11,173 | | |
| EXCO Resources, Inc.* | | | 2,005,100 | | | | 33,686 | | |
| Total | | | | | | | 44,859 | | |
Rental & Leasing Services:
Commercial 1.79% | |
| United Rentals, Inc.* | | | 324,300 | | | | 8,351 | | |
Williams Scotsman
International, Inc.* | | | 994,237 | | | | 20,103 | | |
| Total | | | | | | | 28,454 | | |
| Retail 1.04% | |
| PetMed Express, Inc* | | | 330,520 | | | | 3,907 | | |
Rush Enterprises,
Inc., Class A* | | | 693,771 | | | | 12,710 | | |
| Total | | | | | | | 16,617 | | |
| Savings & Loan 1.02% | |
| Brookline Bancorp, Inc. | | | 1,215,318 | | | | 16,176 | | |
| Securities Brokerage & Services 1.40% | |
optionsXpress Holdings,
Inc. | | | 938,690 | | | | 22,294 | | |
| Services: Commercial 0.94% | |
| Harris Interactive, Inc.* | | | 1,403,723 | | | | 7,313 | | |
| Kforce Inc.* | | | 542,672 | | | | 7,739 | | |
| Total | | | | | | | 15,052 | | |
| Steel 2.16% | |
Carpenter Technology
Corp. | | | 290,579 | | | | 34,027 | | |
Claymont Steel Holdings,
Inc* | | | 23,195 | | | | 432 | | |
| Total | | | | | | | 34,459 | | |
| Telecommunications Equipment 0.66% | |
| SpectraLink Corp.*(a) | | | 1,159,637 | | | | 10,483 | | |
| Truckers 1.15% | |
J.B. Hunt Transport
Services, Inc. | | | 729,078 | | | | 18,322 | | |
| Investments | | Shares | | Value
(000) | |
| Wholesalers 0.44% | |
| Brightpoint, Inc.* | | | 638,492 | | | $ | 7,030 | | |
Total Common Stocks
(cost $1,391,451,673) | | | | | 1,536,224 | | |
| | | Principal
Amount
(000) | | | |
| SHORT-TERM INVESTMENT 2.94% | |
| Repurchase Agreement | |
Repurchase Agreement
dated 1/31/2007,
4.65% due 2/1/2007
with State Street
Bank & Trust Co.
collateralized by
$47,480,000 of Federal
Home Loan Mortgage
Corp. at 5.25% due
7/18/2011;
value: $47,776,750;
proceeds: $46,841,718
(cost $46,835,669) | | $ | 46,836 | | | | 46,836 | | |
Total Investments in
Securities 99.34%
(cost $1,438,287,342) | | | | | 1,583,060 | | |
Other Assets in Excess of
Liabilities 0.66% | | | | | 10,510 | | |
| Net Assets 100.00% | | | | $ | 1,593,570 | | |
ADR American Depositary Receipt.
* Non-income producing security.
(a) Affiliated issuer (holding represents 5% or more of the underlying issuer's outstanding voting shares). See Note 10.
See Notes to Financial Statements.
9
Statement of Assets and Liabilities (unaudited)
January 31, 2007
| ASSETS: | |
| Investments in unaffiliated issuers, at value (cost $1,260,027,653) | | $ | 1,388,870,674 | | |
| Investments in affiliated issuers, at value (cost $178,259,689) | | | 194,188,844 | | |
| Receivables: | |
| Investment securities sold | | | 33,302,534 | | |
| Capital shares sold | | | 1,923,150 | | |
| Interest and dividends | | | 289,012 | | |
| Prepaid expenses and other assets | | | 134,044 | | |
| Total assets | | | 1,618,708,258 | | |
| LIABILITIES: | |
| Payables: | |
| Investment securities purchased | | | 15,288,398 | | |
| Capital shares reacquired | | | 7,404,944 | | |
| Management fee | | | 948,441 | | |
| 12b-1 distribution fees | | | 836,322 | | |
| Trustees' fees | | | 71,047 | | |
| Fund administration | | | 62,824 | | |
| Accrued expenses and other liabilities | | | 526,585 | | |
| Total liabilities | | | 25,138,561 | | |
| NET ASSETS | | $ | 1,593,569,697 | | |
| COMPOSITION OF NET ASSETS: | |
| Paid-in capital | | $ | 1,428,662,516 | | |
| Accumulated net investment loss | | | (6,826,226 | ) | |
| Accumulated net realized gain on investments | | | 26,961,231 | | |
| Net unrealized appreciation on investments | | | 144,772,176 | | |
| Net Assets | | $ | 1,593,569,697 | | |
| Net assets by class: | |
| Class A Shares | | $ | 792,873,435 | | |
| Class B Shares | | $ | 90,878,713 | | |
| Class C Shares | | $ | 308,709,855 | | |
| Class P Shares | | $ | 94,068,835 | | |
| Class Y Shares | | $ | 307,038,859 | | |
Outstanding shares by class (unlimited number of
authorized shares of beneficial interest, no par value): | | | | | |
| Class A Shares | | | 45,593,215 | | |
| Class B Shares | | | 5,412,355 | | |
| Class C Shares | | | 18,402,972 | | |
| Class P Shares | | | 5,397,633 | | |
| Class Y Shares | | | 17,368,350 | | |
Net asset value, offering and redemption price per share
(Net assets divided by outstanding shares): | | | | | |
| Class A Shares-Net asset value | | $ | 17.39 | | |
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 5.75%) | | $ | 18.45 | | |
| Class B Shares-Net asset value | | $ | 16.79 | | |
| Class C Shares-Net asset value | | $ | 16.78 | | |
| Class P Shares-Net asset value | | $ | 17.43 | | |
| Class Y Shares-Net asset value | | $ | 17.68 | | |
See Notes to Financial Statements.
10
Statement of Operations (unaudited)
For the Six Months Ended January 31, 2007
| Investment income: | |
| Dividends from unaffiliated issuers | | $ | 3,187,104 | | |
| Dividends from affiliated issuers | | | 199,949 | | |
| Interest | | | 1,428,012 | | |
| Total investment income | | | 4,815,065 | | |
| Expenses: | |
| Management fee | | | 5,808,797 | | |
| 12b-1 distribution plan-Class A | | | 1,384,935 | | |
| 12b-1 distribution plan-Class B | | | 460,366 | | |
| 12b-1 distribution plan-Class C | | | 1,603,071 | | |
| 12b-1 distribution plan-Class P | | | 205,967 | | |
| Shareholder servicing | | | 1,473,539 | | |
| Fund administration | | | 317,528 | | |
| Reports to shareholders | | | 135,069 | | |
| Registration | | | 87,367 | | |
| Custody | | | 43,438 | | |
| Professional | | | 28,181 | | |
| Trustees' fees | | | 21,393 | | |
| Other | | | 21,634 | | |
| Gross expenses | | | 11,591,285 | | |
| Expense reductions (See Note 7) | | | (23,234 | ) | |
| Net expenses | | | 11,568,051 | | |
| Net investment loss | | | (6,752,986 | ) | |
| Net realized and unrealized gain: | |
| Net realized gain on investments in unaffiliated issuers | | | 40,801,081 | | |
| Net realized gain on investments in affiliated issuers | | | 6,219,191 | | |
| Net change in unrealized appreciation on investments | | | 156,977,355 | | |
| Net realized and unrealized gain | | | 203,997,627 | | |
| Net Increase in Net Assets Resulting From Operations | | $ | 197,244,641 | | |
See Notes to Financial Statements.
11
Statements of Changes in Net Assets
| INCREASE IN NET ASSETS | | For the Six Months Ended
January 31, 2007
(unaudited) | | For the Year Ended
July 31, 2006 | |
| Operations: | |
| Net investment loss | | $ | (6,752,986 | ) | | $ | (11,640,886 | ) | |
| Net realized gain on investments | | | 47,020,272 | | | | 73,620,717 | | |
| Net change in unrealized appreciation (depreciation) on investments | | | 156,977,355 | | | | (110,815,202 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 197,244,641 | | | | (48,835,371 | ) | |
| Distributions to shareholders from: | |
| Net realized gain | |
| Class A | | | (38,602,981 | ) | | | (16,715,878 | ) | |
| Class B | | | (4,623,658 | ) | | | (2,674,386 | ) | |
| Class C | | | (16,141,215 | ) | | | (8,323,036 | ) | |
| Class P | | | (4,644,406 | ) | | | (788,460 | ) | |
| Class Y | | | (14,578,812 | ) | | | (3,630,563 | ) | |
| Total distributions to shareholders | | | (78,591,072 | ) | | | (32,132,323 | ) | |
| Capital share transactions (See Note 12): | |
| Net proceeds from sales of shares | | | 183,521,309 | | | | 961,018,141 | | |
| Reinvestment of distributions | | | 68,433,516 | | | | 27,056,823 | | |
| Cost of shares reacquired | | | (290,053,020 | ) | | | (271,630,923 | ) | |
Net increase (decrease) in net assets resulting
from capital share transactions | | | (38,098,195 | ) | | | 716,444,041 | | |
| Net increase in net assets | | | 80,555,374 | | | | 635,476,347 | | |
| NET ASSETS: | |
| Beginning of period | | $ | 1,513,014,323 | | | $ | 877,537,976 | | |
| End of period | | $ | 1,593,569,697 | | | $ | 1,513,014,323 | | |
| Accumulated net investment loss | | $ | (6,826,226 | ) | | $ | (73,240 | ) | |
See Notes to Financial Statements.
12
Financial Highlights
| | | Class A Shares | |
| | | Six Months
Ended
1/31/2007 | |
Year Ended 7/31 | |
| | | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| Per Share Operating Performance | |
Net asset value,
beginning of period | | $ | 16.08 | | | $ | 16.71 | | | $ | 14.37 | | | $ | 11.71 | | | $ | 9.18 | | | $ | 10.45 | | |
| Investment operations: | |
| Net investment loss(a) | | | (.06 | ) | | | (.12 | ) | | | (.15 | ) | | | (.16 | ) | | | (.12 | ) | | | (.12 | ) | |
Net realized and
unrealized gain (loss) | | | 2.23 | | | | (.03 | ) | | | 3.88 | | | | 3.07 | | | | 2.65 | | | | (1.15 | ) | |
Total from investment
operations | | | 2.17 | | | | (.15 | ) | | | 3.73 | | | | 2.91 | | | | 2.53 | | | | (1.27 | ) | |
Distributions to shareholders
from: | | | | | |
| Net realized gain | | | (.86 | ) | | | (.48 | ) | | | (1.39 | ) | | | (.25 | ) | | | – | | | | – | (c) | |
Net asset value,
end of period | | $ | 17.39 | | | $ | 16.08 | | | $ | 16.71 | | | $ | 14.37 | | | $ | 11.71 | | | $ | 9.18 | | |
| Total Return(b) | | | 13.56 | %(d) | | | (.99 | )% | | | 27.38 | % | | | 24.96 | % | | | 27.56 | % | | | (12.11 | )% | |
Ratios to Average
Net Assets: | | | | | |
Expenses, including
expense reductions | | | .68 | %(d) | | | 1.38 | % | | | 1.47 | % | | | 1.55 | % | | | 1.71 | % | | | 1.66 | % | |
Expenses, excluding
expense reductions | | | .68 | %(d) | | | 1.38 | % | | | 1.47 | % | | | 1.55 | % | | | 1.89 | % | | | 2.41 | % | |
| Net investment loss | | | (.37 | )%(d) | | | (.71 | )% | | | (.96 | )% | | | (1.12 | )% | | | (1.30 | )% | | | (1.09 | )% | |
| Supplemental Data: | |
Net assets, end of
period (000) | | $ | 792,873 | | | $ | 767,283 | | | $ | 465,124 | | | $ | 162,651 | | | $ | 59,717 | | | $ | 29,962 | | |
| Portfolio turnover rate | | | 24.29 | %(d) | | | 55.39 | % | | | 58.65 | % | | | 84.91 | % | | | 68.48 | % | | | 47.69 | % | |
See Notes to Financial Statements.
13
Financial Highlights (continued)
| | | Class B Shares | |
| | | Six Months
Ended
1/31/2007 | |
Year Ended 7/31 | |
| | | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| Per Share Operating Performance | |
Net asset value,
beginning of period | | $ | 15.60 | | | $ | 16.34 | | | $ | 14.15 | | | $ | 11.56 | | | $ | 9.12 | | | $ | 10.45 | | |
| Investment operations: | |
| Net investment loss(a) | | | (.12 | ) | | | (.23 | ) | | | (.24 | ) | | | (.24 | ) | | | (.18 | ) | | | (.18 | ) | |
Net realized and
unrealized gain (loss) | | | 2.17 | | | | (.03 | ) | | | 3.82 | | | | 3.02 | | | | 2.62 | | | | (1.15 | ) | |
Total from investment
operations | | | 2.05 | | | | (.26 | ) | | | 3.58 | | | | 2.78 | | | | 2.44 | | | | (1.33 | ) | |
Distributions to shareholders
from: | | | | | |
| Net realized gain | | | (.86 | ) | | | (.48 | ) | | | (1.39 | ) | | | (.19 | ) | | | – | | | | – | (c) | |
Net asset value,
end of period | | $ | 16.79 | | | $ | 15.60 | | | $ | 16.34 | | | $ | 14.15 | | | $ | 11.56 | | | $ | 9.12 | | |
| Total Return(b) | | | 13.20 | %(d) | | | (1.70 | )% | | | 26.71 | % | | | 24.19 | % | | | 26.75 | % | | | (12.68 | )% | |
Ratios to Average
Net Assets: | | | | | |
Expenses, including
expense reductions | | | 1.00 | %(d) | | | 2.02 | % | | | 2.10 | % | | | 2.18 | % | | | 2.33 | % | | | 2.27 | % | |
Expenses, excluding
expense reductions | | | 1.00 | %(d) | | | 2.02 | % | | | 2.10 | % | | | 2.18 | % | | | 2.51 | % | | | 3.02 | % | |
| Net investment loss | | | (.70 | )%(d) | | | (1.36 | )% | | | (1.61 | )% | | | (1.75 | )% | | | (1.92 | )% | | | (1.70 | )% | |
| Supplemental Data: | |
Net assets, end of
period (000) | | $ | 90,879 | | | $ | 89,943 | | | $ | 81,117 | | | $ | 45,384 | | | $ | 21,518 | | | $ | 12,013 | | |
| Portfolio turnover rate | | | 24.29 | %(d) | | | 55.39 | % | | | 58.65 | % | | | 84.91 | % | | | 68.48 | % | | | 47.69 | % | |
See Notes to Financial Statements.
14
Financial Highlights (continued)
| | | Class C Shares | |
| | | Six Months
Ended
1/31/2007 | |
Year Ended 7/31 | |
| | | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| Per Share Operating Performance | |
Net asset value,
beginning of period | | $ | 15.59 | | | $ | 16.32 | | | $ | 14.14 | | | $ | 11.56 | | | $ | 9.12 | | | $ | 10.45 | | |
| Investment operations: | |
| Net investment loss(a) | | | (.12 | ) | | | (.23 | ) | | | (.24 | ) | | | (.24 | ) | | | (.18 | ) | | | (.18 | ) | |
Net realized and
unrealized gain (loss) | | | 2.17 | | | | (.02 | ) | | | 3.81 | | | | 3.02 | | | | 2.62 | | | | (1.15 | ) | |
Total from investment
operations | | | 2.05 | | | | (.25 | ) | | | 3.57 | | | | 2.78 | | | | 2.44 | | | | (1.33 | ) | |
Distributions to shareholders
from: | | | | | |
| Net realized gain | | | (.86 | ) | | | (.48 | ) | | | (1.39 | ) | | | (.20 | ) | | | – | | | | – | (c) | |
Net asset value,
end of period | | $ | 16.78 | | | $ | 15.59 | | | $ | 16.32 | | | $ | 14.14 | | | $ | 11.56 | | | $ | 9.12 | | |
| Total Return(b) | | | 13.21 | %(d) | | | (1.64 | )% | | | 26.65 | % | | | 24.18 | % | | | 26.75 | % | | | (12.68 | )% | |
| Ratios to Average Net Assets: | |
Expenses, including
expense reductions | | | 1.00 | %(d) | | | 2.02 | % | | | 2.10 | % | | | 2.18 | % | | | 2.33 | % | | | 2.27 | % | |
Expenses, excluding
expense reductions | | | 1.00 | %(d) | | | 2.02 | % | | | 2.10 | % | | | 2.18 | % | | | 2.51 | % | | | 3.02 | % | |
| Net investment loss | | | (.70 | )%(d) | | | (1.36 | )% | | | (1.60 | )% | | | (1.75 | )% | | | (1.92 | )% | | | (1.70 | )% | |
| Supplemental Data: | |
Net assets, end of
period (000) | | $ | 308,710 | | | $ | 317,028 | | | $ | 221,554 | | | $ | 64,447 | | | $ | 23,039 | | | $ | 10,432 | | |
| Portfolio turnover rate | | | 24.29 | %(d) | | | 55.39 | % | | | 58.65 | % | | | 84.91 | % | | | 68.48 | % | | | 47.69 | % | |
See Notes to Financial Statements.
15
Financial Highlights (continued)
| | | Class P Shares | |
| | | Six Months
Ended
1/31/2007 | |
Year Ended 7/31 | |
| | | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| Per Share Operating Performance | |
Net asset value,
beginning of period | | $ | 16.12 | | | $ | 16.77 | | | $ | 14.42 | | | $ | 11.73 | | | $ | 9.19 | | | $ | 10.45 | | |
| Investment operations: | |
| Net investment loss(a) | | | (.07 | ) | | | (.14 | ) | | | (.17 | ) | | | (.37 | ) | | | (.10 | ) | | | (.12 | ) | |
Net realized and
unrealized gain (loss) | | | 2.24 | | | | (.03 | ) | | | 3.91 | | | | 3.28 | | | | 2.64 | | | | (1.14 | ) | |
Total from investment
operations | | | 2.17 | | | | (.17 | ) | | | 3.74 | | | | 2.91 | | | | 2.54 | | | | (1.26 | ) | |
Distributions to shareholders
from: | | | | | |
| Net realized gain | | | (.86 | ) | | | (.48 | ) | | | (1.39 | ) | | | (.22 | ) | | | – | | | | – | (c) | |
Net asset value,
end of period | | $ | 17.43 | | | $ | 16.12 | | | $ | 16.77 | | | $ | 14.42 | | | $ | 11.73 | | | $ | 9.19 | | |
| Total Return(b) | | | 13.53 | %(d) | | | (1.11 | )% | | | 27.35 | % | | | 24.97 | % | | | 27.64 | % | | | (12.01 | )% | |
| Ratios to Average Net Assets: | |
Expenses, including
expense reductions | | | .73 | %(d) | | | 1.48 | % | | | 1.69 | % | | | 1.63 | %† | | | 1.78 | %† | | | 1.72 | % | |
Expenses, excluding
expense reductions | | | .73 | %(d) | | | 1.48 | % | | | 1.70 | % | | | 1.63 | %† | | | 1.96 | %† | | | 2.47 | % | |
| Net investment loss | | | (.42 | )%(d) | | | (.80 | )% | | | (1.06 | )% | | | (1.20 | )%† | | | (1.37 | )%† | | | (1.15 | )% | |
| Supplemental Data: | |
Net assets, end of
period (000) | | $ | 94,069 | | | $ | 80,298 | | | $ | 13,954 | | | $ | 218 | | | $ | 1 | | | $ | 1 | | |
| Portfolio turnover rate | | | 24.29 | %(d) | | | 55.39 | % | | | 58.65 | % | | | 84.91 | % | | | 68.48 | % | | | 47.69 | % | |
See Notes to Financial Statements.
16
Financial Highlights (concluded)
| | | Class Y Shares | |
| | | Six Months
Ended
1/31/2007 | |
Year Ended 7/31 | |
| | | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| Per Share Operating Performance | |
Net asset value,
beginning of period | | $ | 16.31 | | | $ | 16.88 | | | $ | 14.45 | | | $ | 11.75 | | | $ | 9.20 | | | $ | 10.45 | | |
| Investment operations: | |
| Net investment loss(a) | | | (.03 | ) | | | (.06 | ) | | | (.09 | ) | | | (.10 | ) | | | (.11 | ) | | | (.10 | ) | |
Net realized and
unrealized gain (loss) | | | 2.26 | | | | (.03 | ) | | | 3.91 | | | | 3.07 | | | | 2.66 | | | | (1.15 | ) | |
Total from investment
operations | | | 2.23 | | | | (.09 | ) | | | 3.82 | | | | 2.97 | | | | 2.55 | | | | (1.25 | ) | |
Distributions to shareholders
from: | | | | | |
| Net realized gain | | | (.86 | ) | | | (.48 | ) | | | (1.39 | ) | | | (.27 | ) | | | – | | | | – | (c) | |
Net asset value,
end of period | | $ | 17.68 | | | $ | 16.31 | | | $ | 16.88 | | | $ | 14.45 | | | $ | 11.75 | | | $ | 9.20 | | |
| Total Return(b) | | | 13.74 | %(d) | | | (.61 | )% | | | 27.88 | % | | | 24.45 | % | | | 27.72 | % | | | (11.92 | )% | |
Ratios to Average
Net Assets: | | | | | |
Expenses, including
expense reductions | | | .50 | %(d) | | | 1.03 | % | | | 1.17 | % | | | 1.18 | %† | | | 1.33 | %† | | | 1.27 | % | |
Expenses, excluding
expense reductions | | | .50 | %(d) | | | 1.03 | % | | | 1.17 | % | | | 1.18 | %† | | | 1.51 | %† | | | 2.02 | % | |
| Net investment loss | | | (.20 | )%(d) | | | (.36 | )% | | | (.57 | )% | | | (.75 | )%† | | | (.92 | )%† | | | (.70 | )% | |
| Supplemental Data: | |
Net assets, end of
period (000) | | $ | 307,039 | | | $ | 258,461 | | | $ | 95,788 | | | $ | 5,295 | | | $ | 1 | | | $ | 1 | | |
| Portfolio turnover rate | | | 24.29 | %(d) | | | 55.39 | % | | | 58.65 | % | | | 84.91 | % | | | 68.48 | % | | | 47.69 | % | |
† The ratios have been determined on a Fund basis.
(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) Amount represents less than $.01.
(d) Not annualized.
See Notes to Financial Statements.
17
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Lord Abbett Blend Trust (the "Trust") is registered under the Investment Company Act of 1940 (the "Act") as a diversified, open-end management company, organized as a Delaware Statutory Trust on May 1, 2001. The Trust has one series, Lord Abbett Small-Cap Blend Fund (the "Fund"). The Securities and Exchange Commission declared the registration of the Fund and its shares effective on June 26, 2001 and each class of shares became available to the public on July 2, 2001. As of the close of business on January 31, 2006, Class A, B, C, P, and Y shares of the Fund were not available for purchase by new investors other than through certain retirement and benefit plans, and financial intermediaries that provide recordkeeping or advisory services and have entered into special arrangements with the Fund or the Distributor. In addition, Directors/Trustees of the Lord Abbett Funds, partners and employees of Lord Abbett, and the family members of such pe rsons may purchase shares of the Fund. Investors should note, however, that the Fund reserves the right to refuse any order that might disrupt the efficient management of 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 offers five classes of shares: Classes A, B, C, P and Y, 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 the Class B, C, P and Y shares, although there may be a contingent deferred sales charge ("CDSC") as follows: certain redemptions of Class A shares made within 12 months (24 months if shares were purchased prior to November 1, 2004) following certain purchases made without a sales charge; 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 convert to Class A shares on the eighth anniversary of the original purchase of Class B shares.
The preparation of 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–Securities traded on any recognized U.S. or non-U.S. exchange or on NASDAQ, Inc. are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. 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. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Trustees. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market 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
18
Notes to Financial Statements (unaudited)(continued)
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. Discounts are accreted and premiums are amortized using the effective interest method. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day.
(d) Federal 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 Federal income tax provision is required.
(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, and P shares bear their class-specific share of all expenses and fees relating to the Fund's 12b-1 Distribution Plans.
(f) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which the 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 value of those securities has dec lined, the Fund may incur a loss upon disposition of the securities.
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fees
The Trust has a management agreement with Lord, Abbett & Co. LLC ("Lord Abbett") pursuant to which Lord Abbett supplies the Fund with investment management services and executive and other personnel, pays the remuneration of officers, 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 rates:
| First $1 billion | | | .75 | % | |
| Over $1 billion | | | .70 | % | |
For the six months ended January 31, 2007, the effective management fee paid to Lord Abbett was at a rate of .73% of the Fund's average daily net assets.
Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund's average daily net assets.
19
Notes to Financial Statements (unaudited)(continued)
12b-1 Distribution Plan
The Fund has adopted a distribution plan with respect to Class A, B, C and P 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 ("Distributor"), an affiliate of Lord Abbett. The fees are accrued daily at annual rates based upon average daily net assets as follows:
| Fee | | Class A | | Class B | | Class C | | Class P | |
| Service | | | .25 | % | | | .25 | % | | | .25 | % | | | .20 | % | |
| Distribution | | | .10 | %(1) | | | .75 | % | | | .75 | % | | | .25 | % | |
(1) The amount of CDSC collected by the Fund during the six months ended January 31, 2007 was $13,621.
Class Y does not have a distribution plan.
Commissions
Distributor received the following commissions on sales of shares of the Fund, after concessions were paid to authorized dealers, for the six months ended January 31, 2007:
Distributor
Commissions | | Dealers'
Concessions | |
| $ | 56,727 | | | $ | 320,034 | | |
Distributor received CDSCs of $13,549 and $21,958 for Class A and Class C shares, respectively, for the six months ended January 31, 2007.
Two Trustees and certain of the Trust's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARD
Dividends from net investment income, if any, are declared and paid at least annually. Taxable net realized gains from investment transactions, reduced by 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 amount 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 di fferences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.
20
Notes to Financial Statements (unaudited)(continued)
The tax character of distributions paid during the six months ended January 31, 2007 and the fiscal year ended July 31, 2006 are as follows:
| | | Six Months Ended
1/31/2007
(unaudited) | | Year Ended
7/31/2006 | |
| Distributions paid from: | |
| Ordinary income | | $ | 25,645,656 | | | $ | 16,605,582 | | |
| Net long-term capital gains | | | 52,945,416 | | | | 15,526,741 | | |
| Total distributions paid | | $ | 78,591,072 | | | $ | 32,132,323 | | |
As of January 31, 2007, the aggregate unrealized security gains and losses based on cost for U.S. Federal income tax purposes are as follows:
| Tax cost | | $ | 1,438,905,975 | | |
| Gross unrealized gain | | | 187,657,848 | | |
| Gross unrealized loss | | | (43,504,305 | ) | |
| Net unrealized security gain | | $ | 144,153,543 | | |
The difference between book-basis and tax-basis unrealized gains (losses) is attributable to wash sales.
5. PORTFOLIO SECURITIES TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments) for the six months ended January 31, 2007 are as follows:
| Purchases | | Sales | |
| $ | 366,767,816 | | | $ | 473,560,710 | | |
There were no purchases or sales of U.S. Government securities for the six months ended January 31, 2007.
6. TRUSTEES' REMUNERATION
The Trust's officers and the two Trustees, who are associated with Lord Abbett, do not receive any compensation from the Trust for serving in such capacities. Outside 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 outside Trustees under which outside 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 have been invested proportionately 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.
7. EXPENSE REDUCTIONS
The Fund has entered into arrangements 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.
21
Notes to Financial Statements (unaudited)(continued)
8. LINE OF CREDIT
The Fund, along with certain other funds managed by Lord Abbett, has available a $250,000,000 unsecured revolving credit facility ("Facility") from a consortium of banks, to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Any borrowings under this Facility will bear interest at current market rates as defined in the agreement. The fee for this Facility is at an annual rate of .08%. As of January 31, 2007, there were no loans outstanding pursuant to this Facility nor was the Facility utilized at any time during the six months ended January 31, 2007.
9. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank & Trust Company ("SSB") is the Fund's custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund's NAV.
10. TRANSACTIONS WITH AFFILIATED ISSUERS
An affiliated issuer is one in which the Fund has ownership of at least 5% of the outstanding voting securities of the underlying issuer at any point during the fiscal year. The Fund had the following transactions with affiliated issuers during the six months ended January 31, 2007:
| Affiliated Issuer | | Balance of
Shares Held
at 7/31/2006 | | Gross
Additions | | Gross
Sales | | Balance of
Shares Held
at 1/31/2007 | | Value
at
1/31/2007 | | Net Realized
Gain (Loss)
8/1/2006
to 1/31/2007(c) | | Dividend
Income
8/1/2006
to 1/31/2007(c) | |
| Amedisys, Inc.(b) | | | 1,108,184 | | | | 358,395 | | | | (87,101 | ) | | | 1,379,478 | | | $ | 44,584,729 | | | $ | 699,186 | | | $ | - | | |
Beacon Roofing
Supply, Inc.(a) | | | 1,967,797 | | | | 334,553 | | | | (169,100 | ) | | | 2,133,250 | | | | - | | | | 937,222 | | | | - | | |
Entravision
Communications(a) | | | 3,159,300 | | | | 41,100 | | | | (204,600 | ) | | | 2,995,800 | | | | - | | | | (93,313 | ) | | | - | | |
| LCA-Vision Inc.(a) | | | 1,071,356 | | | | 13,600 | | | | (94,300 | ) | | | 990,656 | | | | - | | | | (187,917 | ) | | | 128,563 | | |
Measurement
Specialties, Inc. | | | 1,378,145 | | | | - | | | | (102,600 | ) | | | 1,275,545 | | | | 26,709,912 | | | | 74,699 | | | | - | | |
| Option Care, Inc.(a) | | | 1,811,866 | | | | 23,000 | | | | (157,500 | ) | | | 1,677,366 | | | | - | | | | 435,772 | | | | 71,386 | | |
| RadiSys Corp. | | | 959,804 | | | | 190,221 | | | | (59,400 | ) | | | 1,090,625 | | | | 18,333,406 | | | | - | | | | - | | |
| Select Comfort Corp. | | | 2,807,938 | | | | 128,170 | | | | (243,600 | ) | | | 2,692,508 | | | | 49,649,848 | | | | 2,308,538 | | | | - | | |
| SpectraLink Corp. | | | 1,253,937 | | | | 15,900 | | | | (110,200 | ) | | | 1,159,637 | | | | 10,483,118 | | | | (267,264 | ) | | | - | | |
| Stratasys, Inc. | | | 902,624 | | | | 13,500 | | | | (84,200 | ) | | | 831,924 | | | | 26,821,230 | | | | 937,738 | | | | - | | |
| Universal Electronics, Inc. | | | 1,004,369 | | | | - | | | | (161,141 | ) | | | 843,228 | | | | 17,606,601 | | | | 1,374,530 | | | | - | | |
| Total | | | | | | | | | | | | | | | | | | $ | 194,188,844 | | | $ | 6,219,191 | | | $ | 199,949 | | |
(a) No longer an affiliated issuer as of January 31, 2007.
(b) 358,395 shares acquired in a 4-for-3 stock split; ex-date December 5, 2006.
(c) Represents realized gains (losses) and dividend income earned only when the issuer was an affiliate of the Fund.
11. INVESTMENT RISKS
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 will fluctuate in response to movements in the stock market in general and to the changing prospects of individual companies in which the Fund invests. Different types of stocks shift in and
22
Notes to Financial Statements (unaudited)(continued)
out of favor depending on market and economic conditions. Growth stocks tend to 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 a company's potential for growth or market conditions 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.
These factors can affect the Fund's performance.
12. SUMMARY OF CAPITAL TRANSACTIONS
Transactions in shares of beneficial interest are as follows:
| | | Six Months Ended
January 31, 2007
(unaudited) | | Year Ended
July 31, 2006 | |
| Class A Shares | | Shares | | Amount | | Shares | | Amount | |
| Shares sold | | | 5,162,264 | | | $ | 87,446,701 | | | | 28,333,877 | | | $ | 487,451,536 | | |
| Reinvestment of distributions | | | 2,015,772 | | | | 34,570,493 | | | | 888,249 | | | | 14,860,535 | | |
| Shares reacquired | | | (9,299,188 | ) | | | (157,435,097 | ) | | | (9,336,966 | ) | | | (158,820,032 | ) | |
| Increase (decrease) | | | (2,121,152 | ) | | $ | (35,417,903 | ) | | | 19,885,160 | | | $ | 343,492,039 | | |
| Class B Shares | |
| Shares sold | | | 201,310 | | | $ | 3,307,977 | | | | 1,604,893 | | | $ | 26,461,264 | | |
| Reinvestment of distributions | | | 238,156 | | | | 3,948,629 | | | | 137,504 | | | | 2,242,684 | | |
| Shares reacquired | | | (791,466 | ) | | | (12,982,564 | ) | | | (943,816 | ) | | | (15,752,364 | ) | |
| Increase (decrease) | | | (352,000 | ) | | $ | (5,725,958 | ) | | | 798,581 | | | $ | 12,951,584 | | |
| Class C Shares | |
| Shares sold | | | 832,994 | | | $ | 13,710,954 | | | | 9,006,248 | | | $ | 148,198,140 | | |
| Reinvestment of distributions | | | 691,331 | | | | 11,455,356 | | | | 346,405 | | | | 5,643,031 | | |
| Shares reacquired | | | (3,458,213 | ) | | | (56,560,646 | ) | | | (2,591,892 | ) | | | (43,028,434 | ) | |
| Increase (decrease) | | | (1,933,888 | ) | | $ | (31,394,336 | ) | | | 6,760,761 | | | $ | 110,812,737 | | |
| Class P Shares | |
| Shares sold | | | 1,528,948 | | | $ | 25,910,610 | | | | 5,038,099 | | | $ | 87,319,105 | | |
| Reinvestment of distributions | | | 232,088 | | | | 3,989,599 | | | | 44,887 | | | | 753,644 | | |
| Shares reacquired | | | (1,343,957 | ) | | | (22,902,638 | ) | | | (934,488 | ) | | | (16,031,475 | ) | |
| Increase | | | 417,079 | | | $ | 6,997,571 | | | | 4,148,498 | | | $ | 72,041,274 | | |
| Class Y Shares | |
| Shares sold | | | 3,017,132 | | | $ | 53,145,067 | | | | 12,168,212 | | | $ | 211,588,096 | | |
| Reinvestment of distributions | | | 830,145 | | | | 14,469,439 | | | | 210,220 | | | | 3,556,929 | | |
| Shares reacquired | | | (2,329,343 | ) | | | (40,172,075 | ) | | | (2,201,768 | ) | | | (37,998,618 | ) | |
| Increase | | | 1,517,934 | | | $ | 27,442,431 | | | | 10,176,664 | | | $ | 177,146,407 | | |
23
Notes to Financial Statements (unaudited)(concluded)
13. RECENT ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position must meet before being recognized in the financial statements. The Fund will adopt FIN 48 no later than January 31, 2008 and the impact to the Fund's financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No.157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
24
Supplemental Proxy Information (unaudited)
A meeting of the Fund's shareholders was held on December 18, 2006. The meeting was held for the purpose of approving the election of the following nine (9) Directors:
• E. Thayer Bigelow
• William H.T. Bush
• Robert B. Calhoun, Jr.
• Robert S. Dow
• Daria L. Foster
• Julie A. Hill
• Franklin W. Hobbs
• Thomas J. Neff
• James L.L. Tullis
The results of the proxy solicitation on the preceding matter were as follows:
| Matter | | Votes For | | Votes
Against | | Votes
Withheld | | Abstentions | |
| E. Thayer Bigelow | | | 62,152,382.478 | | | | 303,435.052 | | | | – | | | | – | | |
| William H.T. Bush | | | 62,146,180.378 | | | | 309,367.152 | | | | – | | | | – | | |
| Robert B. Calhoun, Jr. | | | 62,171,179.478 | | | | 284,638.052 | | | | – | | | | – | | |
| Robert S. Dow | | | 62,172,602.846 | | | | 283,214.684 | | | | – | | | | – | | |
| Daria L. Foster | | | 62,166,991.342 | | | | 288,826.188 | | | | – | | | | – | | |
| Julie A. Hill | | | 61,896,683.569 | | | | 559,133.961 | | | | – | | | | – | | |
| Franklin W. Hobbs | | | 62,163,740.564 | | | | 292,076.966 | | | | – | | | | – | | |
| Thomas J. Neff | | | 62,158,643.619 | | | | 297,173.911 | | | | – | | | | – | | |
| James L.L. Tullis | | | 62,169,973.632 | | | | 285,843.898 | | | | – | | | | – | | |
25
Approval of Advisory Contract
At meetings on December 11 and 12, 2006, the Board, including all of the Trustees who are not interested persons, considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contracts Committee during the year.
The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the "performance universe") and to the investment performance of an appropriate securities index (if such an index existed), for various time periods each ending September 30, 2006, (2) information on the effective management fee rates and expense ratios for one or more groups of funds with similar objectives and similar size (the "peer expense group"), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett's financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) 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 noted that Lord Abbett did not use brokerage commissions to purchase third-party research. 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 and Compliance. The Board reviewed the Fund's investment performance versus that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the investment performance of the Class A shares of the Fund was in the fifth quintile of its performance universe for the nine-month and one-year periods, in the second quintile for the three-year period, and in the first quintile for the five-year period. The Board also observed that the investment performance was below that of the Lipper Small-Cap Core Index for the nine-month and one-year periods and above that of the Index for the three-year and five-year periods.
Lord Abbett's Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to the Fund, in light of its investment objective and discipline. Among other things, they considered the size, experience, and turnover rates of Lord Abbett's investment management staff, Lord Abbett's investment methodology and philosophy, and Lord Abbett's approach to recruiting, training, and retaining investment management personnel. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.
26
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 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 ratio of the Fund and the expense ratios of the peer expense groups. It also considered the amount and nature of the fees paid by shareholders. The Board observed that the contractual and actual management and administrative services fees were approximately one basis point above the median of the peer group. The Board also observed that the total expense ratio of Class A was approximately six basis points above the median of the peer group, the total expense ratios of Class B and Class C were approximately the same as the median of the peer group, the total expense ratio of Class P was approximately twelve basis points above the median of the peer group, and the total expense ratio of Class Y was approximately three basis points above the median 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 the profits realized by Lord Abbett in connection with the operation of 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 businesses 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 personn el. The Board recognized that Lord Abbett's profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett's profitability had increased in recent years, in part due to an increase in assets under management, but concluded that Lord Abbett's profitability overall and as to the Fund was not excessive.
Economies of Scale. The Board considered whether there had been any economies of scale in managing the Fund, whether the Fund had appropriately benefited from any such economies of scale, and whether there was potential for realization of any further economies of scale. The Board concluded that the existing advisory fee schedule, with its breakpoints in the level of the advisory 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 Lord Abbett 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 Lord Abbett 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 Fund, and receives a portion of the sales charges on sales and redemptions of some classes of shares. In addition, Lord Abbett accrues certain benefits for its business of providing i nvestment advice to clients other than the Fund, but that that business also benefits the Fund. 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.
27
Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, employing one or more alternative arrangements might be in the best interests of the Fund, such as continuing to employ Lord Abbett, but on different terms.
In considering whether to approve the continuation of the management agreement, the Board did not identify any single factor as paramount or controlling. This summary does not discuss in detail all matters considered. After considering all of the relevant factors, the Board unanimously found that continuation of the existing management agreement was in the best interests of the Fund and its shareholders and voted unanimously to approve the continuation of the management agreement.
28
Householding
The 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 800-821-5129 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 Record
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, 2006 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 Trust 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 800-821-5129. You can also obtain copies of Form N-Q by (i) 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); (ii) sending your request and a duplicating fee to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfo@sec.gov.
29
This report, when not used for the general information of shareholders of the fund, is to be distributed only if preceded or accompanied by a current fund prospectus.
Lord Abbett mutual fund shares are distributed by
LORD ABBETT DISTRIBUTOR LLC.
Lord Abbett Blend Trust
Lord Abbett Small-Cap Blend Fund
LASCB-3-107
(03/07)
Item 2: | Code of Ethics. |
| |
| Not applicable. |
| |
Item 3: | Audit Committee Financial Expert. |
| |
| Not applicable. |
| |
Item 4: | Principal Accountant Fees and Services. |
| |
| Not applicable. |
| |
Item 5: | Audit Committee of Listed Registrants. |
| |
| Not applicable. |
| |
Item 6: | Schedule of Investments. |
| |
| 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 significant 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) | Amendments to Code of Ethics – Not applicable. |
| |
(a)(2) | Certification of each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as a part of EX-99.CERT. |
| |
(a)(3) | Not applicable. |
| |
(b) | Certification of each principal executive officer and principal financial officer of the Registrant as required by Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto 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 BLEND TRUST |
| |
| |
| /s/ Robert S. Dow | |
| Robert S. Dow |
| Chief Executive Officer and Chairman |
| |
| |
| /s/ Joan A. Binstock | |
| Joan A. Binstock |
| Chief Financial Officer and Vice President |
| |
Date: March 22, 2007 | |
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.
| LORD ABBETT BLEND TRUST |
| |
| |
| /s/ Robert S. Dow | |
| Robert S. Dow |
| Chief Executive Officer and Chairman |
| |
| |
| /s/ Joan A. Binstock | |
| Joan A. Binstock |
| Chief Financial Officer and Vice President |
| |
Date: March 22, 2007 | |
