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 | 811-02924 |
|
LORD ABBETT U.S. GOVERNMENT & GOVERNMENT SPONSORED ENTERPRISES MONEY MARKET FUND, INC. |
(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: | 6/30 | |
|
Date of reporting period: | 12/31/06 | |
| | | | | | | |
Item 1: Report to Shareholders.
LORD ABBETT
2006
Semiannual
Report
Lord Abbett
U.S. Government & Government
Sponsored Enterprises
Money Market Fund
For the six-month period ended December 31, 2006
Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund Semiannual Report
For the six-month period ended December 31, 2006
Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund's performance for the six-month period ended December 31, 2006. On this page 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 December 31, 2006?
A. The bond market rallied in the period, reflecting investors' expectations that the Federal Reserve Board (the Fed) would begin lowering interest rates. In August, the Fed decided to hold the fed funds rate (the rate at which banks lend to one another) steady at 5.25%, after increasing it 17 straight times since June 2004. The Fed subsequently held rates steady through the end of 2006.
The U.S. economy slowed in the period. Second quarter 2006 gross domestic product (GDP) came in at 2.6%, sharply lower than first quarter GDP of 5.6%, while third quarter GDP was 2.0%. The downshift in economic activity is supportive of bond prices, as investors expect the Fed to be compelled to hold rates steady, or lower them, in order to
1
avert a recession. In addition, benign inflation reports suggest that rate increases to date have been, in the context of a slowing economy, sufficient enough to temper incipient inflationary pressure. The Producer Price Index (PPI) and the Consumer Price Index (CPI) each actually fell in October, as the energy-dampened CPI decreased by 0.5% for the month and measured 1.3% year over year, and the PPI fell 1.6% during the month, posting a 1.6% annual decline. Excluding food and energy, the core numbers were 0.1% and -0.9%, respectively.
Q. How did the Fund perform during the six-month period ended December 31, 2006?
A. The Fund (Class A shares) finished the six-month period with total net assets of $356.5 million and a seven-day current yield of 4.57%. The current yield refers to the income generated by an investment in the Fund over a seven-day period, which is then annualized. The yield quotation more closely reflects the current earnings of the fund than the one-year total return quotation. For the six-month period ended December 31, 2006, the Fund returned 2.3%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared with its peer group, the Lipper U.S. Government Money Market Funds Average,1 which returned 2.3% in the same period.
Q. What were the most significant factors affecting performance?
A. In general, Fund yield kept pace with short-term interest rates. Consistent with its objective to provide current income with minimum credit risk, the portfolio remained invested in high-quality short-term securities issued by the U.S. Treasury and certain U.S. government agency securities. As rates rose, the portfolio's average maturity was extended. The portfolio was concentrated in specific areas of the money market yield curve that were expected to provide the highest yield.
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.
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 www.lordabbett.com. Read the prospectus carefully before investing.
2
1 The Lipper U.S. Government Money Market Funds Average aims at investments in financial instruments issued or guaranteed by the U.S. Government, its agencies or its instrumentalities, with dollar-weighted average maturities of less than 90 days. Peer averages are based on universes of funds with similar investment objectives. Peer group averages include reinvested dividends and capital gains, if any, and exclude sales charges.
Source: Lipper, Inc. ©2007 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content is expressly prohibited without the prior written consent of Lipper.
Important Performance and Other Information
An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corp. or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Performance data quoted reflect past performance and are no guarantee of future 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.
During certain periods shown, expense reimbursements were in place. Without such expense reimbursements, the Fund's returns would have been lower.
The views of the Fund's management and the portfolio holdings described in this report are as of December 31, 2006; 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.
3
Expense Example
As a shareholder of the Fund you incur ongoing costs, including management fees; distribution and service (12b-1) fees (currently only Class B shares have an active 12b-1 Plan); 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 (July 1, 2006 through December 31, 2006).
Actual Expenses
For each class of the 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 entitled "Expenses Paid During the Period 7/1/06 – 12/31/06" 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 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 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.
4
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† | |
| | 7/1/06 | | 12/31/06 | | 7/1/06 – 12/31/06 | |
Class A | |
Actual | | $ | 1,000.00 | | | $ | 1,023.20 | | | $ | 3.57 | | |
Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.68 | | | $ | 3.57 | | |
Class B | |
Actual | | $ | 1,000.00 | | | $ | 1,019.40 | | | $ | 7.38 | | |
Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,017.88 | | | $ | 7.38 | | |
Class C | |
Actual | | $ | 1,000.00 | | | $ | 1,023.20 | | | $ | 3.57 | | |
Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.69 | | | $ | 3.57 | | |
Class Y | |
Actual | | $ | 1,000.00 | | | $ | 1,023.20 | | | $ | 3.54 | | |
Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,021.73 | | | $ | 3.54 | | |
† For each class of the Fund, expenses are equal to the annualized expense ratio for such class (0.70% for Class A, 1.45% for Class B, and 0.70% for Classes C & Y) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).
Portfolio Holdings Presented by Credit Rating
December 31, 2006
Credit Rating | | %* | |
A-1+ | | | 90.23 | % | |
Repurchase Agreements | | | 9.77 | % | |
Total | | | 100.00 | % | |
* Represents percent of total investments.
5
Schedule of Investments (unaudited)
December 31, 2006
Investments | | Interest Rate | | Maturity Date | | Rating | | Principal Amount (000) | | Amortized Cost | |
GOVERNMENT SPONSORED ENTERPRISES SECURITIES 90.62% | |
Federal Home Loan Bank | | | 5.145 | % | | 1/10/2007 | | A-1+ | | $ | 18,000 | | | $ | 17,976,848 | | |
Federal Home Loan Bank | | | 5.155 | % | | 1/31/2007 | | A-1+ | | | 10,000 | | | | 9,957,042 | | |
Federal Home Loan Bank | | | 5.155 | % | | 2/2/2007 | | A-1+ | | | 4,000 | | | | 3,981,671 | | |
Federal Home Loan Bank | | | 5.16 | % | | 1/5/2007 | | A-1+ | | | 5,000 | | | | 4,997,133 | | |
Federal Home Loan Bank | | | 5.162 | % | | 1/12/2007 | | A-1+ | | | 15,000 | | | | 14,976,341 | | |
Federal Home Loan Bank | | | 5.175 | % | | 1/3/2007 | | A-1+ | | | 25,000 | | | | 24,992,813 | | |
Federal Home Loan Bank | | | 5.19 | % | | 1/19/2007 | | A-1+ | | | 30,000 | | | | 29,922,150 | | |
Federal Home Loan Bank | | | 5.195 | % | | 1/19/2007 | | A-1+ | | | 30,000 | | | | 29,922,075 | | |
Federal Home Loan Mortgage Corp. | | | 5.14 | % | | 2/13/2007 | | A-1+ | | | 5,021 | | | | 4,990,174 | | |
Federal Home Loan Mortgage Corp. | | | 5.145 | % | | 2/28/2007 | | A-1+ | | | 15,000 | | | | 14,875,663 | | |
Federal Home Loan Mortgage Corp. | | | 5.15 | % | | 1/26/2007 | | A-1+ | | | 10,000 | | | | 9,964,236 | | |
Federal Home Loan Mortgage Corp. | | | 5.15 | % | | 2/1/2007 | | A-1+ | | | 5,000 | | | | 4,977,826 | | |
Federal Home Loan Mortgage Corp. | | | 5.155 | % | | 2/1/2007 | | A-1+ | | | 30,000 | | | | 29,866,829 | | |
Federal Home Loan Mortgage Corp. | | | 5.16 | % | | 1/16/2007 | | A-1+ | | | 25,000 | | | | 24,946,250 | | |
Federal Home Loan Mortgage Corp. | | | 5.18 | % | | 1/31/2007 | | A-1+ | | | 4,450 | | | | 4,430,791 | | |
Federal Home Loan Mortgage Corp. | | | 5.21 | % | | 1/23/2007 | | A-1+ | | | 30,000 | | | | 29,904,483 | | |
Federal National Mortgage Assoc. | | | 5.135 | % | | 3/14/2007 | | A-1+ | | | 12,000 | | | | 11,876,760 | | |
Federal National Mortgage Assoc. | | | 5.14 | % | | 2/28/2007 | | A-1+ | | | 10,000 | | | | 9,917,189 | | |
Federal National Mortgage Assoc. | | | 5.15 | % | | 1/10/2007 | | A-1+ | | | 10,000 | | | | 9,987,125 | | |
Federal National Mortgage Assoc. | | | 5.15 | % | | 1/11/2007 | | A-1+ | | | 13,000 | | | | 12,981,403 | | |
Federal National Mortgage Assoc. | | | 5.15 | % | | 1/17/2007 | | A-1+ | | | 13,000 | | | | 12,970,244 | | |
Federal National Mortgage Assoc. | | | 5.15 | % | | 1/25/2007 | | A-1+ | | | 20,000 | | | | 19,931,333 | | |
Federal National Mortgage Assoc. | | | 5.15 | % | | 2/5/2007 | | A-1+ | | | 5,000 | | | | 4,974,965 | | |
Federal National Mortgage Assoc. | | | 5.18 | % | | 1/3/2007 | | A-1+ | | | 15,778 | | | | 15,773,481 | | |
Total | | | | | | | | | | | | | | | 359,094,825 | | |
See Notes to Financial Statements.
6
Schedule of Investments (unaudited) (concluded)
December 31, 2006
| | Principal Amount (000) | | Amortized Cost | |
Repurchase Agreements 9.81% | |
Repurchase Agreement dated 12/29/2006, 5.00% due 1/2/2007 with J.P. Morgan Chase & Co. collateralized by $38,075,000 of Federal Home Loan Bank 4.00% due 10/29/2009; value: $38,595,066; proceeds: $37,597,876 | | $ | 37,577 | | | $ | 37,577,000 | | |
Repurchase Agreement dated 12/29/2006, 4.61% due 1/2/2007 with State Street Bank & Trust Co. collateralized by $1,345,000 of Federal National Mortgage Assoc. at Zero Coupon due 1/16/2007; value: $1,341,638; proceeds: $1,315,003 | | | 1,314 | | | | 1,314,330 | | |
Total | | | | | 38,891,330 | | |
Total Investments 100.43% | | | | | 397,986,155 | * | |
Liabilities in Excess of Other Assets (0.43%) | | | | | (1,706,832 | ) | |
Net Assets 100.00% | | | | $ | 396,279,323 | | |
* Cost for Federal income tax purposes is $397,986,155. Average maturity of investments: 23 days.
See Notes to Financial Statements.
7
Statement of Assets and Liabilities (unaudited)
December 31, 2006
ASSETS: | |
Investment in securities, at amortized cost | | $ | 397,986,155 | | |
Receivables: | |
Capital shares sold | | | 1,375,434 | | |
From advisor (See Note 3) | | | 76,907 | | |
Interest | | | 16,162 | | |
Prepaid expenses | | | 44,665 | | |
Total assets | | | 399,499,323 | | |
LIABILITIES: | |
Payables: | |
Capital shares reacquired | | | 1,254,973 | | |
Management fees | | | 168,032 | | |
Directors' fees | | | 153,651 | | |
12b-1 distribution fees-Class B | | | 14,609 | | |
Fund administration | | | 9,621 | | |
Distributions payable | | | 1,349,195 | | |
Accrued expenses and other liabilities | | | 269,919 | | |
Total liabilities | | | 3,220,000 | | |
NET ASSETS | | $ | 396,279,323 | | |
COMPOSITION OF NET ASSETS: | |
Paid-in capital | | $ | 396,279,064 | | |
Undistributed net investment income | | | 259 | | |
Net Assets | | $ | 396,279,323 | | |
Net assets by class: | |
Class A Shares | | $ | 356,469,331 | | |
Class B Shares | | $ | 21,284,179 | | |
Class C Shares | | $ | 11,249,478 | | |
Class Y Shares | | $ | 7,276,335 | | |
Outstanding shares by class: | |
Class A Shares (700 million shares of common stock authorized, $.001 par value) | | | 356,469,112 | | |
Class B Shares (400 million shares of common stock authorized, $.001 par value) | | | 21,284,160 | | |
Class C Shares (300 million shares of common stock authorized, $.001 par value) | | | 11,249,466 | | |
Class Y Shares (100 million shares of common stock authorized, $.001 par value) | | | 7,276,335 | | |
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares): | | | | | |
Class A Shares-Net asset value | | $ | 1.00 | | |
Class B Shares-Net asset value | | $ | 1.00 | | |
Class C Shares-Net asset value | | $ | 1.00 | | |
Class Y Shares-Net asset value | | $ | 1.00 | | |
See Notes to Financial Statements.
8
Statement of Operations (unaudited)
For the Six Months Ended December 31, 2006
Investment income: | |
Interest | | $ | 10,801,393 | | |
Expenses: | |
Management fees | | | 983,758 | | |
Shareholder servicing | | | 714,305 | | |
12b-1 distribution plan-Class B | | | 95,224 | | |
Fund administration | | | 81,844 | | |
Registration | | | 49,426 | | |
Professional | | | 25,229 | | |
Reports to shareholders | | | 24,564 | | |
Custody | | | 13,087 | | |
Directors' fees | | | 4,998 | | |
Other | | | 332 | | |
Gross expenses | | | 1,992,767 | | |
Expense reductions (See Note 6) | | | (7,381 | ) | |
Expenses assumed by advisor (See Note 3) | | | (454,785 | ) | |
Net expenses | | | 1,530,601 | | |
Net investment income | | $ | 9,270,792 | | |
See Notes to Financial Statements.
9
Statements of Changes in Net Assets
INCREASE IN NET ASSETS | | For the Six Months Ended December 31, 2006 (unaudited) | | For the Year Ended June 30, 2006 | |
Operations: | |
Net investment income | | $ | 9,270,792 | | | $ | 11,842,992 | | |
Distributions to shareholders from: | |
Net investment income | |
Class A | | | (8,326,586 | ) | | | (10,631,657 | ) | |
Class B | | | (483,717 | ) | | | (605,575 | ) | |
Class C | | | (292,191 | ) | | | (404,083 | ) | |
Class Y | | | (168,298 | ) | | | (201,677 | ) | |
Total distributions to shareholders | | | (9,270,792 | ) | | | (11,842,992 | ) | |
Capital share transactions (See Note 9): | |
Net proceeds from sales of shares | | | 433,877,850 | | | | 798,420,634 | | |
Reinvestment of distributions | | | 8,667,466 | | | | 10,725,131 | | |
Cost of shares reacquired | | | (429,906,320 | ) | | | (742,542,608 | ) | |
Net increase in net assets resulting from capital share transactions | | | 12,638,996 | | | | 66,603,157 | | |
Net increase in net assets | | | 12,638,996 | | | | 66,603,157 | | |
NET ASSETS: | |
Beginning of period | | $ | 383,640,327 | | | $ | 317,037,170 | | |
End of period | | $ | 396,279,323 | | | $ | 383,640,327 | | |
Undistributed net investment income | | $ | 259 | | | $ | 259 | | |
See Notes to Financial Statements.
10
Financial Highlights
| | Class A Shares | |
| | Six Months Ended 12/31/2006 | | Year Ended 6/30 | |
| | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
Per Share Operating Performance | |
Net asset value, beginning of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Investment operations: | |
Net investment income(b) | | | .02 | | | | .03 | | | | .01 | | | | — | (d) | | | .01 | | | | .01 | | |
Distributions to shareholders from: | |
Net investment income | | | (.02 | ) | | | (.03 | ) | | | (.01 | ) | | | — | (d) | | | (.01 | ) | | | (.01 | ) | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Total Return(c) | | | 2.32 | %(e) | | | 3.51 | % | | | 1.35 | % | | | .21 | % | | | .55 | % | | | 1.48 | % | |
Ratios to Average Net Assets: | |
Expenses, including expense reductions and expenses assumed | | | .35 | %(e) | | | .70 | % | | | .81 | % | | | .83 | % | | | .88 | % | | | .86 | % | |
Expenses, excluding expense reductions and including expenses assumed | | | .35 | %(e) | | | .70 | % | | | .81 | % | | | .83 | % | | | .88 | % | | | .86 | % | |
Expenses, excluding expense reductions and expenses assumed | | | .47 | %(e) | | | 1.01 | % | | | .94 | % | | | .97 | % | | | .98 | % | | | .87 | % | |
Net investment income | | | 2.30 | %(e) | | | 3.47 | % | | | 1.32 | % | | | .21 | % | | | .56 | %† | | | 1.46 | %† | |
Supplemental Data: | |
Net assets, end of period (000) | | $ | 356,469 | | | $ | 337,018 | | | $ | 271,720 | | | $ | 289,336 | | | $ | 266,528 | | | $ | 227,169 | | |
See Notes to Financial Statements.
11
Financial Highlights (continued)
| | Class B Shares | |
| | Six Months Ended 12/31/2006 | | Year Ended 6/30 | |
| | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
Per Share Operating Performance | |
Net asset value, beginning of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Investment operations: | |
Net investment income(b) | | | .02 | | | | .03 | | | | .01 | | | | — | (d) | | | — | (d) | | | .01 | | |
Distributions to shareholders from: | |
Net investment income | | | (.02 | ) | | | (.03 | ) | | | (.01 | ) | | | — | (d) | | | — | (d) | | | (.01 | ) | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Total Return(c) | | | 1.94 | %(e) | | | 2.73 | % | | | .72 | % | | | .20 | % | | | .29 | % | | | .80 | % | |
Ratios to Average Net Assets: | |
Expenses, including expense reductions and expenses assumed | | | .73 | %(e) | | | 1.45 | % | | | 1.41 | % | | | .83 | % | | | 1.15 | % | | | 1.53 | % | |
Expenses, excluding expense reductions and including expenses assumed | | | .73 | %(e) | | | 1.45 | % | | | 1.41 | % | | | .83 | % | | | 1.15 | % | | | 1.53 | % | |
Expenses, excluding expense reductions and expenses assumed | | | .85 | %(e) | | | 1.76 | % | | | 1.69 | % | | | 1.72 | % | | | 1.73 | % | | | 1.62 | % | |
Net investment income | | | 1.92 | %(e) | | | 2.67 | % | | �� | .62 | % | | | .21 | % | | | .29 | %† | | | .71 | %† | |
Supplemental Data: | |
Net assets, end of period (000) | | $ | 21,284 | | | $ | 26,534 | | | $ | 26,388 | | | $ | 47,789 | | | $ | 39,609 | | | $ | 26,000 | | |
See Notes to Financial Statements.
12
Financial Highlights (continued)
| | Class C Shares | |
| | Six Months Ended 12/31/2006 | | Year Ended 6/30 | |
| | (unaudited) | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
Per Share Operating Performance | |
Net asset value, beginning of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Investment operations: | |
Net investment income(b) | | | .02 | | | | .03 | | | | .01 | | | | — | (d) | | | .01 | | | | .01 | | |
Distributions to shareholders from: | |
Net investment income | | | (.02 | ) | | | (.03 | ) | | | (.01 | ) | | | — | (d) | | | (.01 | ) | | | (.01 | ) | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Total Return(c) | | | 2.32 | %(e) | | | 3.51 | % | | | 1.35 | % | | | .21 | % | | | .55 | % | | | 1.48 | % | |
Ratios to Average Net Assets: | |
Expenses, including expense reductions and expenses assumed | | | .35 | %(e) | | | .70 | % | | | .83 | % | | | .83 | % | | | .88 | % | | | .86 | % | |
Expenses, excluding expense reductions and including expenses assumed | | | .35 | %(e) | | | .70 | % | | | .83 | % | | | .83 | % | | | .88 | % | | | .86 | % | |
Expenses, excluding expense reductions and expenses assumed | | | .47 | %(e) | | | 1.01 | % | | | .94 | % | | | .97 | % | | | .98 | % | | | .87 | % | |
Net investment income | | | 2.31 | %(e) | | | 3.42 | % | | | 1.19 | % | | | .21 | % | | | .56 | %† | | | 1.46 | %† | |
Supplemental Data: | |
Net assets, end of period (000) | | $ | 11,249 | | | $ | 13,064 | | | $ | 13,872 | | | $ | 26,945 | | | $ | 14,720 | | | $ | 10,769 | | |
See Notes to Financial Statements.
13
Financial Highlights (concluded)
| | Class Y Shares | |
| | Six Months Ended 12/31/2006 (unaudited) | | Year Ended 6/30/2006 | | 10/20/2004(a) to 6/30/2005 | |
Per Share Operating Performance | |
Net asset value, beginning of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Investment operations: | |
Net investment income(b) | | | .02 | | | | .03 | | | | .01 | | |
Distributions to shareholders from: | |
Net investment income | | | (.02 | ) | | | (.03 | ) | | | (.01 | ) | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | |
Total Return(c) | | | 2.32 | %(e) | | | 3.51 | % | | | 1.18 | %(e) | |
Ratios to Average Net Assets: | |
Expenses, including expense reductions and expenses assumed | | | .35 | %(e) | | | .70 | % | | | .53 | %(e) | |
Expenses, excluding expense reductions and including expenses assumed | | | .35 | %(e) | | | .70 | % | | | .53 | %(e) | |
Expenses, excluding expense reductions and expenses assumed | | | .47 | %(e) | | | 1.01 | % | | | .67 | %(e) | |
Net investment income | | | 2.30 | %(e) | | | 3.50 | % | | | 1.21 | % | |
Supplemental Data: | |
Net assets, end of period (000) | | $ | 7,276 | | | $ | 7,024 | | | $ | 5,057 | | |
† The ratios have been determined on a fund basis.
(a) Commencement of offering of class shares.
(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) Amount is less than $.01.
(e) Not annualized.
See Notes to Financial Statements.
14
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 (the "Act") as a diversified, open-end management investment company. The Fund was incorporated under Maryland law on May 9, 1979.
The investment objective of the Fund is to seek high current income and preservation of capital through investments in high quality, short-term, liquid securities.
The Fund offers four classes of shares: Classes A, B, C and Y. There are no front end sales charges on shares of each class, although there may be a contingent deferred sales charge ("CDSC") applied to each class of shares as follows: Class A shares acquired through an exchange and redeemed 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.
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–The Fund values securities utilizing the amortized cost method, which approximates market value. Under this method, all investments purchased at a discount or premium are valued by amortizing the difference between the original purchase price and maturity value of the issue over the period to maturity. Securities purchased at face value are valued at cost, which approximates 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.
(c) Investment Income–Interest income is recorded on the accrual basis. 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 net income 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 B shares bear all expenses and fees related to the Class B 12b-1 distribution plan.
15
Notes to Financial Statements (unaudited) (continued)
(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 FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fee
The Fund has a management agreement with Lord, Abbett & Co. LLC ("Lord Abbett") pursuant to which Lord Abbett supplies the Fund with investment management services and executive and other personnel, 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 $250 million | | | .50 | % | |
Next $250 million | | | .45 | % | |
Over $500 million | | | .40 | % | |
For the six months ended December 31, 2006, the effective management fee paid to Lord Abbett was at a rate of .48% of the Fund's average daily net assets.
For the period July 1, 2006 through October 31, 2007, Lord Abbett has contractually agreed to reimburse the Fund to the extent necessary so that each class' total annual operating expenses do not exceed the following annual rates:
Class | | % of Average Daily Net Assets | |
A | | | .70 | % | |
B | | | 1.45 | % | |
C | | | .70 | % | |
Y | | | .70 | % | |
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.
12b 1 Distribution Plans
The Fund has adopted a distribution plan (the "Plan") with respect to its Class A, B and C 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(1) | | Class B | | Class C(1) | |
Service and distribution fee | | | .15 | % | | | .75 | % | | | .25 | % | |
(1) The Fund has not activated its Class A and Class C Plans, and therefore, no payments are currently authorized under the Plans.
16
Notes to Financial Statements (unaudited) (continued)
Class Y does not have a distribution plan.
Two Directors and certain of the Fund's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS
Dividends from net investment income are declared daily and paid monthly.
5. DIRECTORS' REMUNERATION
The Fund's officers and the two Directors who are associated with Lord Abbett do not receive any compensation from the Fund for serving in such capacities. Outside Directors' 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 Directors under which outside Directors must defer receipt of a portion of, and may elect to defer receipt of an additional portion of Directors' 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 Directors' fees on the Statement of Operations and in Directors' 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.
6. 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.
7. 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.
8. INVESTMENT RISKS
The Fund's yield may vary in response to changes in interest rates and other market factors.
The Fund generally invests a substantial portion of its assets in money market securities issued by various government sponsored enterprises such as Federal Home Loan Mortgage Corporation and Federal National Mortgage Association. Such securities are not guaranteed by the U.S. Government, but are supported only by the credit of the particular government sponsored enterprises involved, and the discretionary authority of the U.S. Treasury to purchase the enterprise obligations. There is no assurance that the U.S. Government will provide financial support to such enterprises.
An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the Fund.
These factors can affect the Fund's performance.
17
Notes to Financial Statements (unaudited) (concluded)
9. SUMMARY OF CAPITAL TRANSACTIONS
Transactions in shares of capital stock are as follows:
| | Six Months Ended December 31, 2006 (unaudited) | | Year Ended June 30, 2006 | |
Class A Shares | | Shares | | Amount | | Shares | | Amount | |
Shares sold | | | 417,093,347 | | | $ | 417,093,347 | | | | 755,784,943 | | | $ | 755,784,953 | | |
Reinvestment of distributions | | | 7,810,669 | | | | 7,810,669 | | | | 9,675,318 | | | | 9,675,318 | | |
Shares reacquired | | | (405,453,194 | ) | | | (405,453,196 | ) | | | (700,161,375 | ) | | | (700,161,380 | ) | |
Increase | | | 19,450,822 | | | $ | 19,450,820 | | | | 65,298,886 | | | $ | 65,298,891 | | |
Class B Shares | |
Shares sold | | | 8,113,758 | | | $ | 8,113,759 | | | | 23,172,101 | | | $ | 23,172,101 | | |
Reinvestment of distributions | | | 431,602 | | | | 431,603 | | | | 507,584 | | | | 507,584 | | |
Shares reacquired | | | (13,795,031 | ) | | | (13,795,032 | ) | | | (23,533,931 | ) | | | (23,533,932 | ) | |
Increase (decrease) | | | (5,249,671 | ) | | $ | (5,249,670 | ) | | | 145,754 | | | $ | 145,753 | | |
Class C Shares | |
Shares sold | | | 5,110,418 | | | $ | 5,110,418 | | | | 14,885,062 | | | $ | 14,885,061 | | |
Reinvestment of distributions | | | 266,324 | | | | 266,324 | | | | 352,434 | | | | 352,434 | | |
Shares reacquired | | | (7,191,089 | ) | | | (7,191,089 | ) | | | (16,046,000 | ) | | | (16,046,000 | ) | |
Decrease | | | (1,814,347 | ) | | $ | (1,814,347 | ) | | | (808,504 | ) | | $ | (808,505 | ) | |
Class Y Shares | |
Shares sold | | | 3,560,326 | | | $ | 3,560,326 | | | | 4,578,519 | | | $ | 4,578,519 | | |
Reinvestment of distributions | | | 158,870 | | | | 158,870 | | | | 189,794 | | | | 189,795 | | |
Shares reacquired | | | (3,467,002 | ) | | | (3,467,003 | ) | | | (2,801,296 | ) | | | (2,801,296 | ) | |
Increase | | | 252,194 | | | $ | 252,193 | | | | 1,967,017 | | | $ | 1,967,018 | | |
10. 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. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Fund will adopt FIN 48 no later than June 29, 2007 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.
18
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 | | | 192,954,887.174 | | | | 1,406,045.706 | | | | – | | | | – | | |
William H.T. Bush | | | 193,083,030.926 | | | | 1,277,901.954 | | | | – | | | | – | | |
Robert B. Calhoun, Jr. | | | 193,116,274.823 | | | | 1,244,658.057 | | | | – | | | | – | | |
Robert S. Dow | | | 193,186,235.369 | | | | 1,174,697.511 | | | | – | | | | – | | |
Daria L. Foster | | | 192,996,008.011 | | | | 1,364,924.869 | | | | – | | | | – | | |
Julie A. Hill | | | 193,194,378.667 | | | | 1,166,554.213 | | | | – | | | | – | | |
Franklin W. Hobbs | | | 193,192,422.719 | | | | 1,168,510.161 | | | | – | | | | – | | |
Thomas J. Neff | | | 193,088,744.804 | | | | 1,272,188.076 | | | | – | | | | – | | |
James L.L. Tullis | | | 192,991,827.523 | | | | 1,369,105.357 | | | | – | | | | – | | |
19
Approval of Advisory Contract
At meetings on December 11 and 12, 2006, the Board, including all of the Directors 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 third quintile of its performance universe for the nine-month, one-year, and three-year periods, in the fourth quintile for the five-year period, and in the fifth quintile for the ten-year period. The Board also observed that the investment performance was below that of the Lipper U.S. Government Money Market Index for each of those 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
20
management personnel. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.
Nature and Quality of Other Services. The Board considered the nature, quality, costs, and extent of compliance, administrative, and other services performed by Lord Abbett and Lord Abbett Distributor 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 Lord Abbett had implemented an expense reimbursement agreement for the Fund that limited the total expense ratios of Class A, Class C, and Class Y to not more than 0.70% and the total expense ratio of Class B to not more than 1.45%, and that the Board and Lord Abbett had agreed to a new expense reimbursement agreement with the same terms. The Board observed that the contractual and actual management and administrative services fees were approximately eleven basis points above the median of the peer group. The Board also observed that the total expense ratio of Classes A and C were approximately one basis point below the median of the peer group, the total e xpense ratio of Class B was approximately ten basis points above the median of the peer group, and the total expense ratio of Class Y was approximately forty 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
21
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, Lord Abbett accrues certain benefits for its business of providing investment advice to clients other than the Lord Abbett Funds, but that 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.
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.
22
Householding
The Fund has adopted a policy that allows it to send only one copy of the Fund's Prospectus, proxy material, annual report and semiannual report to certain shareholders residing at the same "household." This reduces Fund expenses, which benefits you and other shareholders. If you need additional copies or do not want your mailings to be "householded," please call Lord Abbett at 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 web site 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 will be 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.
23
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 U.S. Government & Government Sponsored
Enterprises Money Market Fund, Inc.
LAMM-3-1206
(02/07)
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 U.S. GOVERNMENT & GOVERNMENT
SPONSORED ENTERPRISES MONEY MARKET FUND,
INC.
| /s/ Robert S. Dow | |
| Robert S. Dow |
| Chief Executive Officer, |
| Chairman |
|
|
| /s/ Joan A. Binstock | |
| Joan A. Binstock |
| Chief Financial Officer and Vice President |
Date: February 26, 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 U.S. GOVERNMENT & GOVERNMENT
SPONSORED ENTERPRISES MONEY MARKET FUND,
INC.
| /s/ Robert S. Dow | |
| Robert S. Dow |
| Chief Executive Officer, |
| Chairman |
|
|
| /s/ Joan A. Binstock | |
| Joan A. Binstock |
| Chief Financial Officer and Vice President |
| |
Date: February 26, 2007