<Page>
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 SECURITIES 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: 6/30/2003
---------
<Page>
ITEM 1: Report to Shareholders.
<Page>
[LORD ABBETT LOGO]
2003
ANNUAL
REPORT
LORD ABBETT
U.S. GOVERNMENT
MONEY MARKET FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
<Page>
- --------------------------------------------------------------------------------
LORD ABBETT U.S. GOVERNMENT MONEY MARKET FUND
ANNUAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
DEAR SHAREHOLDERS: We are pleased to provide an overview of the Fund's
performance for the fiscal year ended June 30, 2003. On this and the following
pages, we discuss the factors that influenced performance.
Thank you for investing in Lord Abbett Mutual Funds. We value the trust
that you place in us and look forward to serving your investment needs in the
years to come.
BEST REGARDS,
/s/ Robert S. Dow
ROBERT S. DOW
CHAIRMAN
- --------------------------------------------------------------------------------
MARKET REVIEW(1)
The U.S. economic recovery remained fragile in the year but seemed to gain
strength in the fourth quarter of the Fund's fiscal 2003 year end. Treasuries
remained the investment vehicle of choice among investors over much of the year,
especially in light of geopolitical risks.
The final quarter may prove to have been a critical one in terms of the
direction of the U.S. financial markets. With an end to the major conflict in
Iraq, both fixed-income and equity markets seemed determined to rally. Equity
investors responded positively to improved corporate earnings, low interest
rates and expectations for a reasonably strong economic recovery in the second
half of the year. Investors in corporate bonds also looked on the bright side,
pushing prices higher and narrowing spreads against Treasuries.
The Treasury market continued to rally, but for less benign reasons, as the
Federal Reserve Board (the "Fed") noted that potential deflation, while
unlikely, was a cause for concern. Treasury investors expected aggressive Fed
action in terms of a 50 basis point cut in the fed funds rate but were
disappointed on June 25 when the Fed lowered the fed funds rate only 25 basis
points to 1% and failed to articulate its strategy for countering the risk of
deflation. Disappointed, the bond market sold off, pushing yields on long-term
bonds higher.
There was no disputing the fact, however, that short-term rates were now at
45-year lows. Money market prices reflected an expectation of stable low
interest rates for the foreseeable future.
PERFORMANCE REVIEW(1)
The U.S. Government Money Market Fund (Class A shares) ended the fiscal year
2003 with total net assets of $266.5 million and a seven-day current yield of
0.3%.(2) For the fiscal year ended June 30, 2003, the U.S. Government Money
Market Fund
1
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- --------------------------------------------------------------------------------
returned 0.6%,(3) compared with its peer group, the Lipper U.S. Government Money
Market Funds Average,(4) which returned 0.8% in the same period. Standardized
Average Annual Returns(5) for 1-, 5- and 10-years are 0.55%, 3.25% and 3.77%
respectively as of June 30, 2003.
In general, portfolio yield kept pace with short-term interest rates, which
fell to historically low levels. Consistent with its objective to provide
current income with minimum credit risk, the Fund remained invested in
high-quality, relatively short-term securities issued by U.S. government
sponsored enterprise securities such as Fannie Maes and Freddie Macs. We
maintained an average maturity of approximately 18.3 days during the year and
concentrated on specific areas of the money market yield curve that we expected
to provide the highest risk-adjusted yield.
(1) The views of the Fund's management and the portfolio holdings described in
this report are as of June 30, 2003; these views and portfolio holdings may have
changed subsequent to this date. Information provided in this report should not
be considered a recommendation to purchase or sell securities.
(2) The Fund's Class A 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
1-year total return quotation.
(3) Reflects performance at the Net Asset Value (NAV) of Class A shares, with
all distributions reinvested, for the year ended June 30, 2003.
(4) The Lipper U.S. Government Money Market Funds Average aims to invest 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. Indices are unmanaged, do not reflect the
deduction of fees or expenses and are not available for direct investment.
Source: Lipper, Inc. (C)2003 REUTERS All rights reserved. Any copying,
republication or redistribution of Lipper content is expressly prohibited
without the prior written consent of Lipper.
(5) Reflects performance of Class A shares with all distributions reinvested.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
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.
PERFORMANCE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. BECAUSE OF
ONGOING MARKET VOLATILITY, FUND PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL
FLUCTUATION. The Fund offers several classes of shares with distinct pricing
options. For a full description of the differences in pricing alternatives,
please see the Prospectus.
The Fund's portfolio is actively managed and, therefore, allocations are subject
to change.
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. 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. For more complete information about this or any Lord
Abbett Mutual Fund, including risks, charges and ongoing expenses, please call
your Investment Professional or Lord Abbett Distributor LLC at 888-522-2388 for
a Prospectus. An investor should read the Prospectus carefully before investing.
2
<Page>
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT AMORTIZED
INVESTMENTS RATE DATE RATING+ (000) COST
- ------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED ENTERPRISE SECURITIES 88.75%
Federal Home Loan Bank 1.160% 7/2/2003 A1+ $ 10,000 $ 9,999,678
Federal Home Loan Bank 1.160% 7/11/2003 A1+ 10,000 9,996,773
Federal Home Loan Bank 1.170% 7/9/2003 A1+ 10,000 9,997,393
Federal Home Loan Mortgage Corp. 0.900% 8/19/2003 A1+ 15,000 14,981,622
Federal Home Loan Mortgage Corp. 0.950% 8/28/2003 A1+ 5,000 4,992,344
Federal Home Loan Mortgage Corp. 0.960% 8/12/2003 A1+ 10,000 9,988,796
Federal Home Loan Mortgage Corp. 0.965% 7/15/2003 A1+ 10,000 9,996,246
Federal Home Loan Mortgage Corp. 1.160% 7/7/2003 A1+ 15,000 14,997,095
Federal Home Loan Mortgage Corp. 1.160% 7/22/2003 A1+ 10,000 9,993,226
Federal Home Loan Mortgage Corp. 1.180% 7/17/2003 A1+ 5,000 4,997,372
Federal Home Loan Mortgage Corp. 1.190% 7/10/2003 A1+ 5,000 4,998,509
Federal National Mortgage Assoc. 0.880% 7/25/2003 A1+ 20,000 19,988,265
Federal National Mortgage Assoc. 0.910% 8/26/2003 A1+ 15,000 14,978,762
Federal National Mortgage Assoc. 1.000% 7/28/2003 A1+ 10,000 9,992,496
Federal National Mortgage Assoc. 1.050% 7/18/2003 A1+ 15,000 14,992,558
Federal National Mortgage Assoc. 1.060% 7/8/2003 A1+ 10,000 9,997,938
Federal National Mortgage Assoc. 1.080% 8/8/2003 A1+ 10,000 9,988,592
Federal National Mortgage Assoc. 1.110% 7/29/2003 A1+ 10,000 9,991,360
Federal National Mortgage Assoc. 1.135% 8/6/2003 A1+ 15,000 14,982,953
Federal National Mortgage Assoc. 1.150% 7/16/2003 A1+ 10,000 9,995,202
Federal National Mortgage Assoc. 1.150% 7/31/2003 A1+ 10,000 9,990,408
Federal National Mortgage Assoc. 1.150% 8/13/2003 A1+ 15,000 14,979,373
Federal National Mortgage Assoc. 1.160% 7/30/2003 A1+ 10,000 9,990,637
Federal National Mortgage Assoc. 1.170% 8/20/2003 A1+ 10,000 9,983,733
Federal National Mortgage Assoc. 1.170% 8/27/2003 A1+ 10,000 9,981,458
Federal National Mortgage Assoc. 1.180% 7/23/2003 A1+ 10,000 9,992,773
--------------
TOTAL 284,765,562
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<Page>
SCHEDULE OF INVESTMENTS (CONCLUDED)
JUNE 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT AMORTIZED
INVESTMENTS (000) COST
- ---------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 11.42%
REPURCHASE AGREEMENT 11.42%
Repurchase agreement dated
6/30/2003, 1.10% due 7/1/2003
with State Street Bank & Trust Co.
collateralized by $37,220,000 of Federal
National Mortgage Assoc. at 2.00% due
4/22/2005; value: $37,382,614;
proceeds: $36,645,820 $ 36,645 $ 36,644,700
-------------
TOTAL INVESTMENTS 100.17% $ 321,410,262*
=============
</Table>
* Cost for federal income tax purposes is $321,410,262. Average maturity of
investments: 25.8 days.
+ Ratings are unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
4
<Page>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003
<Table>
ASSETS:
Investment in securities, at amortized cost $ 284,765,562
Repurchase agreement, at cost 36,644,700
Receivables:
Interest 1,120
From Lord, Abbett & Co. LLC 114,197
Prepaid expenses and other assets 10,794
- --------------------------------------------------------------------------------
TOTAL ASSETS 321,536,373
================================================================================
LIABILITIES:
Payables:
Management fees 133,409
12b-1 distribution fees 24,787
Fund administration fees 6,788
Directors' fees 139,006
Dividends payable 65,290
Accrued expenses 309,989
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 679,269
================================================================================
NET ASSETS $ 320,857,104
================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 320,856,845
Undistributed net investment income 259
- --------------------------------------------------------------------------------
NET ASSETS $ 320,857,104
================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 266,528,267
Class B Shares $ 39,608,716
Class C Shares $ 14,720,121
OUTSTANDING SHARES BY CLASS:
Class A Shares 266,528,033
Class B Shares 39,608,698
Class C Shares 14,720,114
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
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
STATEMENT OF OPERATIONS
For the Year Ended June 30, 2003
<Table>
INVESTMENT INCOME:
Interest $ 4,544,336
EXPENSES:
Management fees 1,548,664
12b-1 distribution plan-Class B 318,112
Shareholder servicing 1,093,234
Professional 50,012
Reports to shareholders 52,848
Fund accounting 17,405
Fund administration 61,971
Custody 15,220
Directors' fees 8,516
Registration 89,930
Other 171,616
================================================================================
Gross expenses 3,427,528
Expense reductions (5,034)
12b-1 distribution plan-Class B reimbursement (244,731)
Expenses assumed by Lord, Abbett & Co. LLC (266,206)
- --------------------------------------------------------------------------------
NET EXPENSES 2,911,557
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,632,779
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
INCREASE IN NET ASSETS JUNE 30, 2003 JUNE 30, 2002
OPERATIONS:
NET INVESTMENT INCOME $ 1,632,779 $ 3,468,829
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,416,808) (3,247,108)
Class B (120,997) (135,369)
Class C (94,974) (86,352)
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,632,779) (3,468,829)
================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 778,169,232 713,385,913
Reinvestment of distributions 1,594,109 3,472,177
Cost of shares reacquired (722,844,562) (674,845,965)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 56,918,779 42,012,125
================================================================================
NET INCREASE IN NET ASSETS 56,918,779 42,012,125
================================================================================
NET ASSETS:
Beginning of year 263,938,325 221,926,200
- --------------------------------------------------------------------------------
END OF YEAR $ 320,857,104 $ 263,938,325
================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 259 $ 259
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
YEAR ENDED 6/30
---------------------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Investment operations:
Net investment income .01 .01 .05 .05 .04
Net realized gain - - -(b) - -
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .01 .05 .05 .04
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
net investment income (.01) (.01) (.05) (.05) (.04)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return(a) .55% 1.48% 5.02% 4.93% 4.36%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions .88% .86% .87% .84% .76%
Expenses, excluding waiver and
expense reductions .98% .87% .90% .84% .76%
Net investment income .56%+ 1.46%+ 4.89%+ 4.79% 4.31%
<Caption>
YEAR ENDED 6/30
---------------------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
==============================================================================================================================
Net assets, end of year (000) $ 266,528 $ 227,169 $ 201,174 $ 190,817 $ 184,600
==============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 6/30
--------------------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Investment operations:
Net investment income -(b) .01 .04 .04 .04
Net realized gain - - -(b) - -
---------- ---------- ---------- ---------- ----------
Total from investment operations -(b) .01 .04 .04 .04
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
net investment income -(b) (.01) (.04) (.04) (.04)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return(a) .29% .80% 4.24% 4.13% 3.76%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions 1.15% 1.53% 1.62% 1.59% 1.52%
Expenses, excluding waiver and
expense reductions 1.73% 1.62% 1.65% 1.59% 1.52%
Net investment income .29%+ .71%+ 4.14%+ 4.01% 3.52%
<Caption>
YEAR ENDED 6/30
--------------------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
=============================================================================================================================
Net assets, end of year (000) $ 39,609 $ 26,000 $ 14,059 $ 8,987 $ 11,188
=============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<Table>
<Caption>
YEAR ENDED 6/30
---------------------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Investment operations:
Net investment income .01 .01 .05 .05 .04
Net realized gain - - -(b) - -
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .01 .05 .05 .04
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
net investment income (.01) (.01) (.05) (.05) (.04)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return(a) .55% 1.48% 5.02% 4.93% 4.36%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions .88% .86% .87% .84% .76%
Expenses, excluding waiver and
expense reductions .98% .87% .90% .84% .76%
Net investment income .56%+ 1.46%+ 4.89%+ 4.78% 4.27%
<Caption>
YEAR ENDED 6/30
---------------------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
==============================================================================================================================
Net assets, end of year (000) $ 14,720 $ 10,769 $ 6,693 $ 1,929 $ 5,193
==============================================================================================================================
</Table>
+ The ratios have been determined on a Fund basis.
(a) Total return assumes the reinvestment of all distributions.
(b) Amount is less than $.01.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Lord Abbett U.S. Government Securities 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 three classes of shares: Classes A, B, and C. There are no front
end sales charges on shares of each class, although a contingent deferred sales
charge ("CDSC") may be applied to each class of shares as follows: Class A
shares acquired through an exchange; Class B shares redeemed before the sixth
anniversary of purchase; 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
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 of its taxable net investment
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
their 12b-1 distribution plan.
(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 date. The Fund
requires at all times that the repurchase agreement be collateralized by
cash, U.S. Government securities or Government Sponsored Enterprise
11
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
securities having a value equal to, or in excess of, the value of the
repurchase agreement. If the seller of the agreement defaults on its
obligation to repurchase the underlying securities at a time when the value
of these securities has declined, the Fund may incur a loss upon disposition
of them.
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES
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 average daily net assets at
the following annual rates:
<Table>
- ----------------------------------
First $250 million .50%
Next $250 million .45%
Over $500 million .40%
</Table>
In addition, effective January 1, 2003, Lord Abbett began providing 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. This
results in Lord Abbett paying fund accounting expenses that were previously
charged to the Fund.
For the year ended June 30, 2003, Lord Abbett voluntarily reimbursed $266,206 of
the Fund's Class A and Class C expenses (excluding management fees). Lord Abbett
may stop reimbursing expenses at any time.
12b-1 DISTRIBUTION PLANS
The Fund has adopted a distribution plan (the "Plan") with respect to one or
more classes of shares pursuant to Rule 12b-1 of 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:
<Table>
<Caption>
FEE CLASS A(1) CLASS B CLASS C(1)
- --------------------------------------------------------------------------------
Service and distribution fee .15% .75%(2) .25%
</Table>
(1) The Fund has not activated the Class A and Class C Plans, and therefore, no
payments are authorized currently under the Plans.
(2) For the year ended June 30, 2003, Distributor voluntarily reimbursed .58%.
Lord Abbett may stop reimbursing such fees at any time.
One Director 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.
Certain amounts have been reclassified within the components of net assets based
on their federal tax treatment.
12
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. DIRECTORS' REMUNERATION
The Fund's officers and the one Director 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 Fund. 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 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 were used to
reduce a portion of the Fund's expenses.
7. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank and Trust Company ("SSB") is the Fund's custodian and
accounting agent. SSB performs custodian functions and accounting and record
keeping functions relating to portfolio transactions and calculating the Fund's
net asset values.
8. INVESTMENT RISKS
The Fund may invest a substantial portion of its assets in mortgage-related
money market securities, including those of such Government Sponsored
Enterprises as Federal Home Loan Mortgage Corporation and Federal National
Mortgage Association. Such securities are guaranteed with respect to the timely
payment of interest and principal by the particular government sponsored
enterprise involved, not by the U.S. Government.
The Fund's yield may vary in response to changes in interest rates and other
market factors.
An investment in the Fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corp. 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 Fund performance.
13
<Page>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
9. SUMMARY OF CAPITAL TRANSACTIONS
The Fund has authorized 1,500,000,000 shares of $0.001 par value capital stock
designated as follows: 800,000,000 Class A shares, 400,000,000 Class B shares
and 300,000,000 Class C shares.
<Table>
<Caption>
YEAR ENDED YEAR ENDED
JUNE 30, 2003 JUNE 30, 2002
- ---------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
Shares sold 676,711,702 $ 676,711,702 658,365,239 $ 658,365,239
Reinvestment of distributions 1,403,363 1,403,363 3,258,882 3,258,882
Shares reacquired (638,756,373) (638,756,373) (635,628,293) (635,628,293)
- ---------------------------------------------------------------------------------------------------------------
Increase 39,358,692 $ 39,358,692 25,995,828 $ 25,995,828
- ---------------------------------------------------------------------------------------------------------------
CLASS B SHARES
- ---------------------------------------------------------------------------------------------------------------
Shares sold 56,996,775 $ 56,996,775 35,190,779 $ 35,190,779
Reinvestment of distributions 103,760 103,760 133,311 133,311
Shares reacquired (43,491,543) (43,491,543) (23,383,741) (23,383,741)
- ---------------------------------------------------------------------------------------------------------------
Increase 13,608,992 $ 13,608,992 11,940,349 $ 11,940,349
- ---------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ---------------------------------------------------------------------------------------------------------------
Shares sold 44,460,755 $ 44,460,755 19,829,895 $ 19,829,895
Reinvestment of distributions 86,986 86,986 79,984 79,984
Shares reacquired (40,596,646) (40,596,646) (15,833,931) (15,833,931)
- ---------------------------------------------------------------------------------------------------------------
Increase 3,951,095 $ 3,951,095 4,075,948 $ 4,075,948
- ---------------------------------------------------------------------------------------------------------------
</Table>
14
<Page>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
LORD ABBETT U.S. GOVERNMENT SECURITIES MONEY MARKET FUND, INC.:
We have audited the accompanying statement of assets and liabilities of Lord
Abbett U.S. Government Securities Money Market Fund, Inc. (the "Company"),
including the schedule of investments, as of June 30, 2003, and the related
statements of operations for the year then ended and changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 2003 by correspondence with the custodian and
broker. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Lord
Abbett U.S. Government Securities Money Market Fund, Inc. as of June 30, 2003,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
New York, New York
August 20, 2003
15
<Page>
BASIC INFORMATION ABOUT MANAGEMENT
The Board of Directors is responsible for the management of the business and
affairs of the Fund in accordance with the laws of the State of Maryland. The
Board appoints officers who are responsible for the day-to-day operations of the
Fund and who execute policies authorized by the Board. The Board also approves
an investment adviser to the Fund and continues to monitor the cost and quality
of the services provided by the investment adviser, and annually considers
whether to renew the contract with the adviser.
Lord, Abbett & Co. LLC ("Lord Abbett"), a Delaware limited liability company, is
the Fund's investment adviser.
INTERESTED DIRECTOR
The following Director is the Managing Partner of Lord Abbett and is an
"interested person" as defined in the Act. Mr. Dow is also an officer, director,
or trustee of each of the fourteen Lord Abbett-sponsored funds, which consist of
48 portfolios or series.
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS DIRECTORSHIPS
- -------------------------------------------------------------------------------------------------------
ROBERT S. DOW Director since Managing Partner and Chief N/A
Lord, Abbett & Co. LLC 1989; Chairman Investment Officer of
90 Hudson Street since 1996 Lord Abbett since 1996.
Jersey City, NJ
Date of Birth: 3/8/1945
</Table>
----------
INDEPENDENT DIRECTORS
The following outside Directors are also directors or trustees of each of the
fourteen Lord Abbett-sponsored funds, which consist of 48 portfolios or series.
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------------------
E. THAYER BIGELOW Director since 1994 Managing General Partner, Currently serves as director
Bigelow Media, LLC Bigelow Media, LLC (since of Crane Co. and Huttig
41 Madison Ave., 2000); Senior Adviser, Time Building Products Inc.
Suite 3810 Warner Inc. (1998 - 2000);
New York, NY Acting Chief Executive
Date of Birth: 10/22/1941 Officer of Courtroom
Television Network (1997 -
1998); President and Chief
Executive Officer of Time
Warner Cable Programming,
Inc. (1991 - 1997).
WILLIAM H.T. BUSH Director since 1998 Co-founder and Chairman of Currently serves as director
Bush-O'Donnell & Co., Inc. the Board of the financial of Wellpoint Health Network,
101 South Hanley Road advisory firm of Inc., DT Industries Inc.,
Suite 1025 Bush-O'Donnell & Company and Engineered Support
St. Louis, MO (since 1986). Systems, Inc.
Date of Birth: 7/14/1938
</Table>
16
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------------------
ROBERT B. CALHOUN, JR. Director since 1998 Managing Director of Monitor Currently serves as director
Monitor Clipper Partners Clipper Partners (since 1997) of Avondale, Inc., Avondale
Two Canal Park and President of Clipper Mills, Inc., IGI/Earth
Cambridge, MA Asset Management Corp. Color, Inc., Integrated
Date of Birth: 10/25/1942 (since 1991), both private Graphics, Inc., and
equity investment funds. Interstate Bakeries Corp.
STEWART S. DIXON Director since 1979; Partner in the law firm N/A
Wildman, Harrold, retired 12/31/2002 of Wildman, Harrold,
Allen & Dixon Allen & Dixon
225 W. Wacker Drive, (since 1967).
Suite 2800
Chicago, IL
Date of Birth: 11/5/1930
FRANKLIN W. HOBBS Director since 2000 Senior Advisor (since Currently serves as director
Houlihan Lokey April 2003) and Former of Adolph Coors Company.
Howard & Zukin Chief Executive Officer of
685 Third Ave. Houlihan Lokey Howard &
New York, NY Zukin, an investment bank
Date of Birth: 7/30/1947 (January 2002 - April 2003);
Chairman of Warburg Dillon
Read (1999 - 2000); Global
Head of Corporate
Finance of SBC Warburg
Dillon Read (1997 -
1999); Chief Executive
Officer of Dillon,
Read & Co. (1994 - 1997).
C. ALAN MACDONALD Director since 1988 Retired - General Business Currently serves as director
415 Round Hill Road and Governance Consulting of Fountainhead Water
Greenwich, CT (since 1992); formerly Company, Lincoln Snacks,
Date of Birth: 5/19/1933 President and CEO of Nestle H.J. Baker, and Seix Fund,
Foods. Inc.*
THOMAS J. NEFF Director since 1982 Chairman of Spencer Stuart, Currently serves as director
Spencer Stuart an executive search of Ace, Ltd. and Exult, Inc.
277 Park Avenue consulting firm (since 1996);
New York, NY President of Spencer Stuart,
Date of Birth: 10/2/1937 (1979 - 1996).
JAMES F. ORR, III Director since 2002; President and CEO of Currently serves as Chairman
80 Pinckney Street retired 3/3/2003 LandingPoint Capital of Rockefeller Foundation,
Boston, MA (since 2002); Chairman and Director of Nashua Corp. and
Date of Birth: 3/5/1943 CEO of United Asset SteelPoint Technologies.
Management Corporation
(2000 to 2001);
Chairman and CEO of UNUM
Provident Corporation
(1999 - merger);
Chairman and CEO of UNUM
Corporation (1988 - 1999).
</Table>
- ----------
* Seix Fund, Inc. is a registered investment company that is advised by Seix
Investment Advisors Inc. Seix Investment Advisors Inc.'s Chairman, CEO, and
Chief Investment Officer is married to Robert Dow, the Fund's Chairman, CEO, and
President and the Managing Partner of Lord Abbett.
----------
17
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
OFFICERS
None of the officers listed below have received compensation from the Fund. All
the officers of the Fund may also be officers of the other Lord Abbett-sponsored
funds and maintain offices at 90 Hudson Street, Jersey City, New Jersey 07302.
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH FUND OF CURRENT POSITION DURING PAST FIVE YEARS
- ---------------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Chief Executive Elected in 1995 Managing Partner and Chief
(3/8/1945) Officer and President Investment Officer of Lord
Abbett since 1996.
ROBERT I. GERBER Executive Vice Elected in 1997 Partner and Director of
(5/29/1954) President Taxable Fixed Income
Management, joined Lord
Abbett in 1997.
TRACIE E. AHERN Vice President and Elected in 1999 Partner and Director of
(1/12/1968) Treasurer Portfolio Accounting and
Operations, joined Lord
Abbett in 1999, formerly
Vice President - Head of
Fund Administration of
Morgan Grenfell from 1998
to 1999, prior thereto
Vice President of Bankers
Trust.
JOAN A. BINSTOCK Chief Financial Elected in 1999 Partner and Chief Operations
(3/4/1954) Officer and Vice Officer, joined Lord Abbett
President in 1999, prior thereto Chief
Operating Officer of Morgan
Grenfell.
DANIEL E. CARPER Vice President Elected in 1986 Partner, joined Lord Abbett
(1/22/1952) in 1979.
PAUL A. HILSTAD Vice President and Elected in 1995 Partner and General Counsel,
(12/13/1942) Secretary joined Lord Abbett in 1995.
LAWRENCE H. KAPLAN Vice President and Elected in 1997 Partner and Deputy General
(1/16/1957) Assistant Secretary Counsel, joined Lord Abbett
in 1997.
ROBERT A. LEE Vice President Elected in 2000 Partner and Fixed Income
(8/28/1969) Investment Manager -
Mortgage and Asset Backed
Securities, joined Lord
Abbett in 1997.
ROBERT G. MORRIS Vice President Elected in 1995 Partner and Director of
(11/6/1944) Equity Investments, joined
Lord Abbett in 1991.
</Table>
18
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONCLUDED)
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH FUND OF CURRENT POSITION DURING PAST FIVE YEARS
- ---------------------------------------------------------------------------------------------------------------------
A. EDWARD OBERHAUS, III Vice President Elected in 1996 Partner and Manager of
(12/21/1959) Equity Trading, joined Lord
Abbett in 1983.
CHRISTINA T. SIMMONS Vice President and Elected in 2000 Assistant General Counsel,
(11/12/1957) Assistant Secretary joined Lord Abbett in 1999,
formerly Assistant General
Counsel of Prudential
Investments from 1998
to 1999, prior thereto
Counsel of Drinker, Biddle
& Reath LLP, a law firm.
BERNARD J. GRZELAK Assistant Treasurer Elected in 2003 Director of Fund
(6/12/1971) Administration, joined Lord
Abbett in 2003, formerly
Vice President, Lazard
Asset Management from
2000 to 2003, prior
thereto Manager of Deloitte
& Touche LLP.
</Table>
Please call 1-888-522-2388 for a copy of the Statement of Additional Information
(SAI), which contains further information about the Fund's Directors. It is
available free upon request.
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 semi-annual 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 219100,
Kansas City, MO 64121.
19
<Page>
[LORD ABBETT LOGO]
This report when not used
for the general information
of shareholders of the Fund
is to be distributed only if
preceded or accompanied Lord Abbett U.S. Government
by a current Fund Prospectus. Securities Money Market Fund, Inc.
Lord Abbett Mutual Fund shares
are distributed by:
LORD ABBETT DISTRIBUTOR LLC
90 Hudson Street - Jersey City, LAMM-2-603
New Jersey 07302-3973 (8/03)
<Page>
ITEM 2: Code of Ethics.
Not applicable
ITEM 3: Audit Committee Financial Expert.
Not applicable.
ITEM 4-8: [Reserved]
ITEM 9: Controls and Procedures.
(a) Based on their evaluation of the registrant's disclosure controls
and procedures (as defined in Rule 30a-2(c) under the Investment
Company Act of 1940) as of August 21, 2003, 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
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
ITEM 10: Exhibits.
ITEM 10(a): Not applicable.
ITEM 10(b):
(i) 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.
(ii) 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.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities and 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
SECURITIES MONEY MARKET FUND,
INC.
/s/ Robert S. Dow
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President
Date: August 21, 2003
<Page>
Pursuant to the requirements of the Securities and 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
SECURITIES MONEY MARKET FUND,
INC.
/s/ Robert S. Dow
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President
Date: August 21, 2003