Exhibit 17(g)
Lord Abbett Equity Fund
SEMI ANNUAL REPORT FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
[GRAPHIC OMITTED]
An insured investment designed
to help you capture capital
growth over the long term
Visit our Web Site and get: up to date statistics and other useful information
at www.lordabbett.com
Report to Shareholders
For the Six Months Ended November 30, 1999
[PHOTO]
Robert S. Dow
Chairman
December 13, 1999
"We anticipate that the global economy will maintain its steady growth. We
continue to be encouraged by low inflation figures and minimal trade
restrictions."
Report to Shareholders
For the Six Months Ended November 30, 1999
Lord Abbett Equity Fund completed the first six months of its fiscal year on
November 30, 1999. The Fund's net asset value was $28.39 per share versus $29.36
per share on May 31, 1999. The Fund's total return for the period (its percent
change in net asset value with all distributions reinvested) was -3.34%.* Since
inception on June 1, 1990, the Fund has generated an annual average total return
of 12.28%.
On December 21, 1999, the Board of Trustees of Lord Abbett Equity Fund declared
a dividend of $0.4660 per share, a short-term capital gain distribution of
$0.2836 per share and a long-term capital gain distribution of $3.6021 per
share. These distributions were reinvested on December 21, 1999, on behalf of
shareholders of record on December 21, 1999. As described in the prospectus, all
such distributions are reinvested in additional shares of the Fund (unless
otherwise instructed), and then a "reverse split" is effected, thus retaining
the same number of shares outstanding and the same total value of the shares
that existed prior to the payment of the distributions. This enables
shareholders to see the Fund's performance on a per share basis. The Fund
encourages shareholders to reinvest all distributions because it maintains the
amount of insurance on your original investment.
The period was characterized by continued overall strength in both the equity
market and the U.S. economy. In addition, the global economy continued to grow.
These factors combined to create an environment that, among large companies,
favored a very select group of growth stocks with predictable earnings growth.
Rather than venturing into unknown waters, investors stayed with names familiar
to them, investing in companies that exhibited strong earnings and recent
outstanding stock performance.
The Fund's performance was aided largely by our exposure to the technology
sector with solid gains coming from many of our holdings. We are now beginning
to gradually pare back the portfolio's allocation to technology stocks. The
proceeds from those sales will be used to increase our allocation to basic
industry stocks such as paper and chemicals, as well as other industrial stocks
that should benefit from improving global economies.
We also began focusing some attention on the property and casualty insurance
sector, and will continue to seek out companies in this market segment that
display improving fundamentals. At the same time, we were generally
underweighted in financial companies, which worked to the Fund's advantage since
many of these stocks continued to struggle as interest rates increased.
Our holdings in health care services challenged the Fund, as political issues
and government influence hurt performance in this area. Further, electric
utilities stocks, which typically do not perform well in a rising interest rate
environment, also underperformed.
We anticipate that the global economy will maintain its steady growth. We
continue to be encouraged by low inflation figures and minimal trade
restrictions. As we begin the New Year, we believe that global cyclicals (paper,
chemicals and electric equipment) are among the best values in the market. Many
financial services companies currently display solid fundamentals and, save for
an increase in short-term interest rates by the Federal Reserve, we will likely
add to our exposure in this area.
There are some signs that the U.S. economy may be moderating. As consumer debt
levels continue to climb, and mortgage refinancings (which reduce consumers'
monthly mortgage payments) continue to decrease, a slowdown in consumer spending
is possible. Consequently, we remain moderately underweighted in consumer
stocks, especially those that are highly sensitive to changes in economic
activity.
Thank you for your confidence in Lord Abbett Equity Fund. We wish you a safe and
happy New Year, and look forward to serving your investment needs in the future.
*Not annualized.
Fund Facts
A Reminder of Your Guarantee:
Participate in the stock market's potential rewards without risking the loss of
your original invest-ment in the initial offering, if held until May 31, 2000,
with all dividends and distributions reinvested
Lord Abbett Equity Fund: The Insured Investment That Does Not Sacrifice Capital
Growth Potential(1) While investments in both Lord Abbett Equity Fund and a
Certificate of Deposit ("CD") are insured, Fund shareholders participate in the
growth potential of equities. During the period shown below, Lord Abbett Equity
Fund provided impressive total returns relative to the average CD.
Comparison Of Change In Value Of A $10,000 Investment In Lord Abbett Equity
Fund(2) And Six-Month CDs(3)
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It is important to remember that the interest rate on a CD, unlike the Fund, is
fixed and this rate and the principal, if held until maturity, are guaranteed.
The Federal Deposit Insurance Corporation (FDIC) insures CDs up to $100,000. The
guarantee applicable to shares of the Fund is issued by Financial Security
Assurance Inc., a private company, rated Aaa by Moody's and AAA by Standard &
Poor's. Past performance is no guarantee of future results.
SEC-Required Average Annual Rates Of Total Return At The Maximum Sales Charge Of
5.5% For The Periods Ended 12/31/99 Were:
1 Year 5 Years Life of Fund (inception: 6/1/90)
------ ------- --------------------------------
-0.70% +13.55% +12.32%
Unless otherwise stated, the results quoted above represent past performance
based on the maximum sales charge of 5.5% and reflect appropriate Rule 12b-1
Plan expenses. Tax consequences are not reflected. The investment return and
principal value of a Fund investment will fluctuate so that shares, on any given
day or when redeemed on a day other than May 31, 2000, may be worth more or less
than their original cost.
The Fund Offers The Growth Potential Of Stocks With The Security Of Insurance
At 11/30/99, Lord Abbett Equity Fund was invested in a diversified portfolio of
60 equity securities.
Lord Abbett Equity Fund's Top Five Equity Holdings Percent of Investments
- -------------------------------------------------- ----------------------
SCANA Corp. 3.98%
Mobil Corp. 3.82%
AON Corp. 2.38%
AT&T Corp. 2.33%
Duke Energy Corp. 2.11%
Total 14.62%
(1) The Fund's insurance policy guarantees unconditionally and irrevocably that
the net asset value of each initially purchased share will not be less than
$10 on May 31, 2000, provided all dividends and distributions attributable
to that share are reinvested.
(2) Data reflects the deduction of the maximum sales charge of 5.5%.
(3) CDs start at 11/30/90. Source: Lipper, Inc.
1
Statement of Net Assets (unaudited)
November 30, 1999
Investments Shares Value
----------- ------ -----
Investments in Securities 100.75%
- ------------------------------------------------------------------
Common Stocks 79.69%
- ------------------------------------------------------------------
Aerospace/Defense
.86% Boeing Co. 12,500 $ 510,156
- --------------------------------------------------------==========
Aluminum 1.49% Alcoa Inc. 13,500 884,250
- --------------------------------------------------------==========
Automotive 1.81% General Motors Corp. 15,000 1,080,000
- --------------------------------------------------------==========
Banks: Money Bank of America Corp. 10,000 585,000
Center 5.05% Chase Manhattan Corp. 9,500 733,875
Mellon Financial Corp. 27,500 1,002,031
U.S. Bancorp 20,000 683,750
Total 3,004,656
- --------------------------------------------------------==========
Banks: Regional First Security Corp. 22,000 618,750
3.15% Wells Fargo Co. 27,000 1,255,500
Total 1,874,250
- --------------------------------------------------------==========
Cable Services MediaOne Group Inc.* 10,500 832,125
1.40%
- --------------------------------------------------------==========
Chemicals 2.51% Dow Chemical Co. 6,500 761,313
Rohm & Haas Co. 20,000 732,500
Total 1,493,813
- --------------------------------------------------------==========
Computer Services Ceridian Corp.* 22,000 475,750
2.54% Unisys Corp.* 36,100 1,037,875
Total 1,513,625
- --------------------------------------------------------==========
Computer: Hardware Compaq Computer Corp. 12,500 305,469
1.12% International Business
Machines Corp. 3,500 360,719
Total 666,188
- --------------------------------------------------------==========
Computer: Software Cadence Design
1.10% Systems Inc.* 10,000 177,500
Oracle Corp.* 7,000 474,688
Total 652,188
- --------------------------------------------------------==========
Conglomerates Minnesota Mining &
1.60% Manufacturing Co. 10,000 955,625
- --------------------------------------------------------==========
Copper 1.22% Phelps Dodge Corp. 14,000 728,000
- --------------------------------------------------------==========
Data Processing
Equipment &
Components 1.02% First Data Corp. 14,000 605,500
- --------------------------------------------------------==========
Drugs 4.66% American Home
Products Corp. 20,000 1,040,000
Bristol-Myers Squibb Co. 6,500 474,906
Pharmacia & Upjohn Inc. 23,000 1,257,813
Total 2,772,719
- --------------------------------------------------------==========
Electric Power Carolina Power & Light 18,000 542,250
9.53% Co.
Dominion Resources Inc. 12,000 544,500
Duke Energy Corp. 25,000 1,267,187
FPL Group Inc. 17,500 765,625
FirstEnergy Corp. 7,000 163,188
SCANA Corp. 88,000 2,387,000
Total 5,669,750
- --------------------------------------------------------==========
Investments Shares Value
----------- ------ -----
Electrical AlliedSignal Inc.* 20,000 $ 1,196,250
Equipment 4.22% Emerson Electric Co. 17,000 969,000
Rockwell International 7,000 347,375
Corp.
Total 2,512,625
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Energy Equipment &
Services 1.46% Baker Hughes Inc. 34,500 871,125
- --------------------------------------------------------==========
Food 4.29% Heinz H.J. Co. 30,000 1,256,250
Ralston-Ralston
Purina Group 24,000 712,500
Sara Lee Corp. 24,000 582,000
Total 2,550,750
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Health Care
Management
Services .90% Cigna Corp. 6,500 534,625
- --------------------------------------------------------==========
Insurance 4.54% ACE Ltd. 32,000 544,000
AON Corp. 40,000 1,427,500
American General Corp. 10,000 733,125
Total 2,704,625
- --------------------------------------------------------==========
Machinery:
Agriculture 1.51% Deere & Co. 21,000 901,687
- --------------------------------------------------------==========
Metals & Minerals
.99% Newmont Mining Corp. 25,000 592,188
- --------------------------------------------------------==========
Natural Gas 1.18% Coastal Corp. 20,000 705,000
- --------------------------------------------------------==========
Oil: Integrated Chevron Corp. 6,000 531,375
International 8.13% Exxon Corp.* 10,000 793,125
Mobil Corp. 22,000 2,294,875
Texaco Inc. 20,000 1,218,750
Total 4,838,125
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Paper & Forest Champion
Products 2.45% International Corp. 15,000 831,562
International Paper Co. 12,000 626,250
Total 1,457,812
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Publishing 4.12% Dow Jones & Co. Inc. 14,000 848,750
Gannett Co. Inc. 9,000 644,063
Tribune Co. 20,000 961,250
Total 2,454,063
- --------------------------------------------------------==========
Retail 2.00% Federated Department
Stores Inc.* 12,500 588,281
Consolidated Stores 38,000 598,500
Corp.*
Total 1,186,781
- --------------------------------------------------------==========
Telecommunications Alltel Corp. 7,500 648,750
2.21% Bell Atlantic Corp. 10,500 664,781
Total 1,313,531
- --------------------------------------------------------==========
Telephone:
Long Distance 2.35% AT&T Corp. 25,000 1,396,875
- --------------------------------------------------------==========
Transportation: United Parcel Service Inc.
Miscellaneous .28% Class B 2,500 165,156
- --------------------------------------------------------==========
Total Investments in
Common Stocks 79.69%
(Cost $42,125,510) 47,427,813
- --------------------------------------------------------==========
2
Statement of Net Assets (unaudited)
November 30, 1999
Principal
Investments Amount Value
----------- ------ -----
U.S. Government Obligations 18.04%
- ------------------------------------------------------------------
U.S. Treasury Strip
due 5/15/2000
(Cost $10,569,645) $11,000,000 $10,733,250
- ------------------------------------------------------------------
Short-Term Investment 3.02%
- ------------------------------------------------------------------
FNMA Discount Note
5.69% due 12/1/1999
(Cost $1,799,000) 1,799,000 1,799,000
- ------------------------------------------------------------------
Total Investments
in Securities
(Cost $54,494,155) 59,960,063
----------------------------------------------
- ------------------------------------------------------------------
Cash and Receivables, Net of Liabilitites (.75)% $ (445,243)
- ------------------------------------------------------------------
Net Assets 100.00% (equivalent to $28.39 a share
on 2,096,412 shares of
beneficial interest outstanding) $ 59,514,820
- ------------------------------------------------------------------
*Non-income producing security.
See Notes to Financial Statements.
Statement of Operations (unaudited)
Investment Income Six Months Ended November 30, 1999
- --------------------------------------------------------------------------------------------------------------------
Income Dividends $522,913
Interest 493,801
Total income $ 1,016,714
- --------------------------------------------------------------------------------------------------------------------
Expenses Management fee 201,513
12b-1 distribution plan 77,888
Insurance 58,913
Shareholder servicing 46,965
Professional 18,179
Reports to shareholders 10,149
Other 1,834
--------
Total expense before reductions 415,441
Expense reductions (1,730)
------------------------------------------------------------------------------------------------------
Net expenses 413,711
------------------------------------------------------------------------------------------------------
Net investment income 603,003
- --------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
- --------------------------------------------------------------------------------------------------------------------
Net realized gain from investment transactions 4,268,848
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation of investments (6,976,224)
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments (2,707,376)
- --------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations $(2,104,373)
- --------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
3
Statements of Changes in Net Assets
Six Months Ended
November 30, 1999 Year
Ended May 31,
Decrease in Net Assets
(unaudited) 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Operations Net investment income $
603,003 $ 843,277
Net realized gain from investment transactions
4,268,848 4,745,601
Net change in unrealized appreciation of investments
(6,976,224) 356,986
Net increase (decrease)in net assets resulting from operations
(2,104,373) 5,945,864
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Dividends and Distributions to shareholders from:
Net investment income
- - (594,683)
Net realized gain from investment transactions
- - (5,153,708)
Total
- - (5,748,391)
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Capital share transactions:
Net asset value of 0 and 226,821 shares issued in reinvestment of
dividends and distributions, respectively
- - 5,751,284
Cost of 102,426 and 299,113 shares reacquired, respectively
(2,942,542) (7,971,180)
Reverse share split of 0 and 226,821 shares, respectively
- - -
Decrease in net assets derived from capital share transactions
(net decrease in shares of 102,426 and 299,113, respectively)
(2,942,542) (2,219,896)
- ----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
(5,046,915) (2,022,423)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets
Beginning of period
64,561,735 66,584,158
- ----------------------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment income of
$1,353,861 and $750,858, respectively)
$59,514,820 $64,561,735
- ----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
Financial Highlights
Six Months Ended
November 30, 1999 Year
Ended May 31,
Per Share Operating Performance: (unaudited) 1999 1998 1997
1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $29.36 $ 26.66 $ 22.54 $ 19.05 $
16.40 $ 14.04
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .28(b) .36 .43 .54
.47 .36
Net realized and unrealized gain (loss) on
investments (1.25) 2.34 3.69 2.95
2.18 2.00
Total from investment operations (.97) 2.70 4.12 3.49
2.65 2.36
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income - (.25) (.50) (.47)
(.22) (.34)
Distributions from net realized gain - (2.17) (2.78) (2.18)
(1.61) (1.25)
Total distributions - (2.42) (3.28) (2.65)
(1.83) (1.59)
Reverse share split - 2.42 3.28 2.65
1.83 1.59
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $28.39 $ 29.36 $ 26.66 $ 22.54 $
19.05 $ 16.40
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) (3.34)%(c) 10.17% 18.27% 18.32%
16.16% 16.81%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (000) $59,515 $64,562 $66,584 $61,254
$57,351 $54,717
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses, including waiver .67%(c) 1.35% 1.36% 1.45%
1.50% 1.80%
Expenses, excluding waiver .67%(c) 1.35% 1.36% 1.45%
1.50% 1.81%
Net investment income .97%(c) 1.35% 1.71% 2.66%
2.63% 2.48%
Portfolio turnover rate 39.71% 59.17% 43.10% 51.68%
66.48% 35.12%
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(b) Calculated using average shares outstanding during the period.
(c) Not annualized.
See Notes to Financial Statements.
4
Notes to Financial Statements (unaudited)
1. Significant Accounting Policies
Lord Abbett Equity Fund (the "Company") was organized as a Massachusetts
business trust on January 19, 1990 and is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements. The following
is a summary of significant accounting policies of the Company: (a) Security
valuation is determined as follows: Portfolio securities listed or admitted to
trad ing privileges on any national securities exchange are valued at the last
sales price on the principal securities exchange on which such securities are
traded, or, if there is no sale, at the mean between the last bid and asked
prices on such exchange. Securities traded in the over-the-counter market are
valued at the mean between the last bid and asked prices in such market, except
that securities admitted to trading on the NASDAQ National Market System are
valued at the last sales price if it is determined that such price more
accurately reflects the value of such securities. Short-term securities maturing
in 60 days or less are valued at amortized cost which approximates market value.
Securities for which market quotations are not available are valued at fair
value under procedures approved by the Board of Trustees. (b) It is the policy
of the Company to meet the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its taxable income.
Therefore, no federal income tax provision is required. (c) Investment
transactions are accounted for on the date that the investments are purchased or
sold (trade date). Realized gains and losses from investment transactions are
calculated on the identified cost basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. (d) It is the policy of the
Company to accrue discounts on U.S. Treasury Strips using the constant yield-to-
maturity method. (e) Reverse Share Splits: The Trustees may authorize reverse
share splits immediately after, and of a size so as to exactly offset, the
payment of dividends and distributions. After taking into account the reverse
share split, a shareholder reinvesting dividends and distributions will hold
exactly the same number of shares as owned prior to the distribution and reverse
share split. A shareholder electing to receive dividends and distributions in
cash will have fewer shares than previously owned.
2. Management Fee and Other Transactions with Affiliates
The Company has a management agreement with Lord, Abbett & Co. ("Lord Abbett")
pursuant to which Lord Abbett supplies the Company with investment management,
research, statistical and advisory services, and pays officers' remuneration and
certain other expenses of the Company. The management fee paid is based on
average daily net assets at the rate of .65% per annum. Certain of the Company's
officers and trustees have an interest in Lord Abbett. The Company adopted a
Rule 12b-1 Plan which provides for the payment of .25% of the average daily net
asset value of shares of the Company.
3. Paid In Capital
At November 30, 1999, paid in capital aggregated $43,766,431.
4. Purchases and Sales of Securities
Purchases and sales of investment securities (other than U.S. Government
obligations and short-term securities) aggregated $23,982,862 and $26,730,211,
respectively. As of November 30, 1999, net unrealized appreciation for federal
income tax purposes aggregated $5,465,908 of which $6,770,016 related to
appreciated securities and $1,304,108 related to depre ciated securities. The
cost of investments for federal income tax purposes is substantially the same as
that used for financial reporting purposes.
5. Distributions
Distributions from net investment income and net realized gains from investment
transactions are declared annually. Accumulated net realized gain at November
30, 1999 for financial reporting purposes, aggregated $8,928,620. Income and
capital gains distributions are determined in accordance with income tax
regulations which may differ from methods used to determine the corresponding
income and capital gains amounts in ac cordance with generally accepted
accounting principles.
Distributions declared on December 21, 1999 and paid on December 21, 1999, to
shareholders of record on December 21, 1999 were as follows:
Rate Aggregate
Per Share Amount
- --------------------------------------------------------------------------------
Net Investment Income $ 0.4660 $ 966,976
Capital Gains $ 3.8857 $8,063,041
The Trustees of the Company declared the following reverse share splits:
Declaration Date Rate
- --------------------------------------------------------------------------------
12/28/94 .889583333
12/27/95 .900489396
12/27/96 .872289157
12/23/97 .866286180
12/23/98 .911290323
12/21/99 .844809133
- --------------------------------------------------------------------------------
6. Insurance
The Company has entered into an agreement with Financial Security Assurance Inc.
("Financial Security"), pursuant to which Financial Security has guaranteed
unconditionally and irrevocably to the Company that the net asset value of each
initially purchased share will not be less than $10 on May 31, 2000, provided
that all dividends and distributions attributable to that share are reinvested.
Insurance expense includes an annual pre mium equal to .50% of the total amount
guaranteed.
7. Trustees' Remuneration
The Trustees of the Trust associated with Lord Abbett and all officers of the
Trust receive no compensation from the Trust for acting as such. Outside
Trustees' fees and retirement costs are allocated among all funds in the Lord
Abbett group based on the net assets of each fund.
8. Expense Reduction
The Company has entered into an arrangement with its transfer agent whereby
credits realized as a result of uninvested cash balances were used to reduce a
portion of the Company's expenses.
Investing in the
Lord Abbett
Family of Funds
GROWTH
- ---------------------------------------------------------------------------------------------------------------------------
INCOME
- ---------------------------------------------------------------------------------------------------------------------------
Aggressive Growth Funds Growth & Balanced Fund Income Funds Tax-Free Money
Growth Fund Income Funds Income Funds Market Fund
Developing Research Fund - Research Fund - Balanced World Bond- National U. S.
Government
Growth Fund* Small-Cap Value Large-Cap Series*** Debenture Series California Securities
Money
Series Series Global Fund - Connecticut Market Fund
+++
Growth Alpha Series** Growth & Income Series Florida
Opportunities International Income Series High Yield Fund Georgia
Fund Series Affiliated Fund Bond-Debenture Hawaii
Mid-Cap Fund Michigan
Value Fund Limited Duration Minnesota
Global Fund - U. S. Government Missouri
Equity Series Securities Series+ New Jersey
U. S. Government) New York
Securities Series+ Pennsylvania
Texas
Washington
Finding the right mutual fund can be confusing. At Lord, Abbett & Co., we
believe your investment professional provides value in helping you identify and
understand your investment objectives and, ultimately, offering fund
recommendations suitable for your individual needs.
This publication, when used as sales literature, is to be distributed only if
preceded or accompanied by a current prospectus for the fund(s) covered by this
report.
For more complete information about any Lord Abbett fund, including risks,
charges and ongoing expenses, call your investment professional or Lord Abbett
Distributor LLC at 800-874-3733 for a prospectus. Read it carefully before
investing.
The Lord Abbett Family of Funds lets you access more than 30 portfolios designed
to meet a variety of investment needs.
Diversification. You and your investment professional can diversify your
investments between equity and income funds.
Flexibility. As your investment goals change, your investment professional can
help you reallocate your portfolio.
You may reallocate assets among our funds at any time. Speak with your
investment professional to help you customize your investment plan.
Numbers to Keep Handy
For Shareholder Account or Statement Inquiries: 800-821-5129
For Literature Only: 800-874-3733
24-Hour Automated Shareholder
Service Line: 800-865-7582
Visit Our Web Site:
www.lordabbett.com
* Lord Abbett Developing Growth Fund is closed to new investors.
** Lord Abbett Securities Trust - Alpha Series is a fund of funds investing in
shares of Lord Abbett Developing Growth Fund, Lord Abbett Research Fund -
Small-Cap Value Series and Lord Abbett Securities Trust - International
Series.
*** Lord Abbett Balanced Series is a fund of funds investing in shares of
certain other Lord Abbett funds.
+ An investment in this Fund is neither insured nor guaranteed by the U.S.
Government.
++ An investment in this Fund 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 your investment at $1.00 per share, it
is possible to lose money by investing in the Fund. This Fund is managed to
maintain, and has maintained its stable $1.00 price per share.
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