<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 811-09597
LORD ABBETT LARGE-CAP GROWTH FUND
---------------------------------
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
--------------
Date of fiscal year end: 7/31
Date of reporting period: 7/31/2003
<Page>
ITEM 1: Report to Shareholders.
<Page>
[LORD ABBETT LOGO]
2003
ANNUAL
REPORT
LORD ABBETT
LARGE-CAP GROWTH FUND
FOR THE YEAR ENDED JULY 31, 2003
<Page>
LORD ABBETT LARGE-CAP GROWTH FUND
ANNUAL REPORT
FOR THE FISCAL YEAR ENDED JULY 31, 2003
DEAR SHAREHOLDERS: We are pleased to provide you with an overview of the Lord
Abbett Large-Cap Growth Fund's (the "Fund") strategies and performance for the
fiscal year ended July 31, 2003. On this and the following pages, we discuss the
major 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 Fund's fiscal year began with low expectations as a result of the
downward economic revisions experienced during an extremely negative third
quarter of 2002. But, as the third quarter progressed, economic data began to
reveal some positive news. As the economy moved toward the end of 2002,
corporations appeared to be overly cautious. Concerns existed that corporate
earnings would not improve as rapidly as anticipated, and economic growth would
continue at a slower-than-expected pace. In addition, higher oil prices and the
threat of international conflict weighed on investor confidence and economic
recovery.
In November 2002, the Federal Reserve Board (the "Fed") surprised the
markets with a 50 basis point cut in the fed funds rate--its twelfth cut in two
years. As the new year approached, investors seemed more willing to take on risk
to achieve higher returns, providing a boost to the corporate bond market.
War and general geopolitical concerns had a negative effect on the psyche of
businesses and consumers during the first part of the new year. Corporations
entered the first quarter of 2003 cautiously and remained wary, selling existing
inventories and announcing layoffs, as the economy continued to decelerate. The
unemployment rate in the U.S. rose in the last seven months, reaching 6.2% by
July. Consumers responded to heightened war threats and treacherous weather
conditions on the east coast by reducing spending. But, as the coalition's war
effort made clear progress in the early spring, the fog of global uncertainty
lifted, and broad equity indices experienced meaningful advances.
On June 25, 2003 the Fed cut interest rates 25 basis points to 1%, in a
continued attempt to spark the economy. With interest rates at levels not seen
for over 40 years, the Fed is attempting a variety of measures to promote and
sustain growth.
1
<Page>
Over the past year, the U.S. dollar weakened versus the euro. A weaker
dollar can translate into more competitive pricing for U.S. goods overseas.
Additionally, imports can become more expensive and less attractive to the U.S.
consumer, resulting in higher sales of American-made goods within the
U.S.--providing further stimulus for economic growth. During the second quarter
of 2003, President Bush signed into law a tax reform/economic stimulus package
with accelerated tax cuts and dividend exclusions, which should benefit
after-tax consumer purchasing power.
FUND REVIEW(1)
The Fund returned 9.7%(2) for the fiscal year ended July 31, 2003,
underperforming its benchmark, the Russell 1000(R) Growth Index(3), which
returned 11.6% for the same period. STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS
FOR 1 YEAR AND SINCE INCEPTION (12/30/99) WERE -5.27%, AND -24.26%,
RESPECTIVELY, AS OF JUNE 30, 2003(4). FOR ADDITIONAL PERFORMANCE INFORMATION
PLEASE SEE PAGE 4.
On the negative side, stock selection in the technology sector hurt Fund
performance as declining sales, higher expenses and strong price competition
hurt Fund holdings. In addition, stock selection in the consumer staple sector
detracted from performance, as consumer-related stores in the drug industry
declined as rising operating expense hurt margins and profits.
The Fund benefited from stock selection in the consumer discretionary sector
where holdings in consumer, internet-related companies appreciated. In addition,
Fund performance was aided from positions in large conglomerate companies that
benefited from a weaker U.S. dollar and increased sales.
Past performance is no guarantee of future results.
(1) The views of the Fund's management and the portfolio holdings described in
this report are as of July 31, 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) Reflects performance at the Net Asset Value (NAV) of Class A shares, with
all distributions reinvested, for the fiscal year ended July 31, 2003.
(3) The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted growth
values. The Russell 1000(R) Growth Index does not reflect deduction of fees or
expenses. Indices are unmanaged, do not reflect the deduction of fees or
expenses and are not available for direct investment.
(4) Reflects performance at the maximum 5.75% sales charge applicable to class A
share investments and includes the reinvestment of all distributions.
2
<Page>
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 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. 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 is actively managed and, as a result, asset allocation may change.
Sectors may include many industries.
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. 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.
3
<Page>
INVESTMENT COMPARISON
Below is a comparison of a $10,000 investment in Class A shares with the same
investment in the Russell 1000(R) Growth Index (the "Index"), assuming
reinvestment of all dividends and distributions. The performance of other
classes will be greater than or less than the performance shown in the graph
below due to different sales loads and expenses applicable to such classes. The
graph and performance table below do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
[CHART]
<Table>
<Caption>
THE FUND (CLASS A SHARES) THE FUND (CLASS A SHARES) AT RUSSELL 1000(R)
AT NET ASSET VALUE MAXIMUM OFFERING PRICE(1) GROWTH INDEX(2)
30-Dec-99 $ 10,000 $ 9,425 $ 10,000
3/31/2000 $ 10,501 $ 9,897 $ 10,713
6/30/2000 $ 10,037 $ 9,460 $ 10,424
9/30/2000 $ 9,842 $ 9,276 $ 9,863
12/31/2000 $ 7,754 $ 7,308 $ 7,757
3/31/2001 $ 5,771 $ 5,439 $ 6,136
6/30/2001 $ 6,172 $ 5,817 $ 6,653
9/30/2001 $ 4,617 $ 4,351 $ 5,361
12/31/2001 $ 5,483 $ 5,167 $ 6,173
3/31/2002 $ 5,120 $ 4,825 $ 6,013
6/30/2002 $ 3,993 $ 3,764 $ 4,890
9/30/2002 $ 3,351 $ 3,159 $ 4,154
12/31/2002 $ 3,547 $ 3,343 $ 4,452
3/31/2003 $ 3,565 $ 3,360 $ 4,404
6/30/2003 $ 4,012 $ 3,781 $ 5,034
31-Jul-03 $ 4,105 $ 3,869 $ 5,159
</Table>
FISCAL YEAR-END 7/31
AVERAGE ANNUAL TOTAL RETURN AT MAXIMUM APPLICABLE
SALES CHARGE FOR THE PERIOD ENDED JULY 31, 2003
<Table>
<Caption>
1 YEAR LIFE OF CLASS
CLASS A(3) 3.28% -23.27%
CLASS B(4) 5.11% -23.14%
CLASS C(5) 9.11% -22.48%
CLASS P(6) 9.93% -21.89%
CLASS Y(7) 8.75% -22.28%
</Table>
(1) Reflects the deduction of the maximum initial sales charge of 5.75%.
(2) Performance of the unmanaged Index does not reflect any fees or expenses.
The performance of the Index is not necessarily representative of the Fund's
performance.
(3) Total return, which is the percentage change in value, after deduction of
the maximum initial sales charge of 5.75% applicable to Class A shares, with all
dividends and distributions reinvested for the periods shown ended July 31, 2003
using the SEC-required uniform method to compute total return. The Class A
shares were first offered on December 30, 1999.
(4) The Class B shares were first offered on December 30, 1999. Performance
reflects the deduction of a CDSC of 4% for 1 year and 3% for the life of the
class.
(5) The Class C shares were first offered on December 30, 1999. The 1% CDSC for
Class C shares normally applies before the first anniversary of the purchase
date. Performance is at net asset value.
(6) The Class P shares were first offered on December 30, 1999. Performance is
at net asset value.
(7) The Class Y shares were first offered on December 30, 1999. Performance is
at net asset value.
4
<Page>
SCHEDULE OF INVESTMENTS
JULY 31, 2003
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.14%
BANKS: NEW YORK CITY 0.31%
J.P. Morgan Chase & Co. 8,000 $ 280
------------
BANKS: OUTSIDE NEW YORK CITY 2.14%
Bank of America Corp. 6,800 562
MBNA Corp. 30,600 682
Wells Fargo & Co. 14,000 707
------------
TOTAL 1,951
------------
BEVERAGE: BREWERS 0.86%
Anheuser-Busch Cos., Inc. 15,096 782
------------
BEVERAGE: SOFT DRINKS 2.36%
PepsiCo, Inc. 35,000 1,612
The Coca-Cola Co. 12,000 540
------------
TOTAL 2,152
------------
BIOTECHNOLOGY RESEARCH & PRODUCTION 2.97%
Amgen, Inc.* 27,183 1,891
Genentech, Inc.* 10,100 816
------------
TOTAL 2,707
------------
CABLE TELEVISION SERVICES 1.30%
EchoStar
Communications Corp.* 7,200 261
Viacom, Inc.* 21,150 921
------------
TOTAL 1,182
------------
COMMUNICATIONS & MEDIA 0.73%
AOL Time Warner, Inc.* 43,000 663
------------
COMMUNICATIONS TECHNOLOGY 0.35%
UTStarcom, Inc.*^ 7,500 319
------------
COMPUTER SERVICES SOFTWARE & SYSTEMS 8.07%
Amdocs Ltd.*(a) 12,000 $ 245
Check Point Software Technologies Ltd.*^(a) 5,000 89
IPass, Inc.* 10,000 182
Microsoft Corp. 160,800 4,245
Oracle Corp.* 92,000 1,104
PeopleSoft, Inc.* 10,100 168
QLogic Corp.* 1,500 63
SAP AG ADR 24,000 705
Symantec Corp.* 5,028 235
Veritas Software Corp.* 10,500 323
------------
TOTAL 7,359
------------
COMPUTER TECHNOLOGY 8.56%
Cisco Systems, Inc.* 155,000 3,025
Dell, Inc.* 48,867 1,646
EMC Corp.* 39,500 420
Hewlett-Packard Co. 13,000 275
International Business Machines Corp. 23,874 1,940
NETGEAR, Inc.* 4,840 86
Network Appliance, Inc.* 12,000 192
Seagate Technology*(a) 10,000 218
------------
TOTAL 7,802
------------
CONSUMER ELECTRONICS 1.48%
Electronic Arts, Inc.* 8,000 672
Yahoo!, Inc.* 21,750 677
------------
TOTAL 1,349
------------
DIVERSIFIED FINANCIAL SERVICES 4.39%
Accenture Ltd. Class A*(a) 8,700 169
American Express Co. 27,500 1,215
Citigroup, Inc. 31,900 1,429
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2003
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
Marsh & McLennan
Cos., Inc. 12,500 $ 620
Morgan Stanley 12,031 571
------------
TOTAL 4,004
------------
DIVERSIFIED MANUFACTURING 0.14%
Corning, Inc.* 16,000 130
------------
DRUG & GROCERY STORE CHAINS 0.94%
Walgreen Co. 28,500 853
------------
DRUGS & PHARMACEUTICALS 16.85%
Abbott Laboratories 28,100 1,103
Biovail Corp.*^(a) 11,500 442
Cardinal Health, Inc. 16,700 914
Chiron Corp.* 9,600 438
Eli Lilly & Co. 23,200 1,527
Forest Laboratories, Inc.* 8,200 393
Gilead Sciences, Inc.* 8,800 603
Johnson & Johnson 45,992 2,382
Merck & Co., Inc. 20,800 1,150
Pfizer, Inc. 133,200 4,444
Teva Pharmaceutical Industries Ltd. ADR 8,500 487
Wyeth 32,520 1,482
------------
TOTAL 15,365
------------
ELECTRICAL: HOUSEHOLD APPLIANCE 0.69%
Best Buy Co., Inc.* 14,500 633
------------
ELECTRONICS: MEDICAL SYSTEMS 1.58%
Medtronic, Inc. 28,050 1,445
------------
ELECTRONICS: SEMI-CONDUCTORS / COMPONENTS 6.32%
Analog Devices, Inc.* 7,500 285
Broadcom Corp.* 6,500 132
Intel Corp. 134,200 $ 3,348
Jabil Circuit, Inc.* 9,000 207
Linear Technology Corp. 7,400 273
Marvell Technology Group*(a) 7,500 264
Maxim Integrated Products 6,800 266
Texas Instruments, Inc. 40,000 755
Xilinx, Inc.* 9,000 236
------------
TOTAL 5,766
------------
ELECTRONICS: TECHNOLOGY 0.43%
Motorola, Inc. 43,000 389
------------
FINANCE: SMALL LOAN 0.70%
SLM Corp. 15,300 634
------------
FINANCIAL DATA PROCESSING SERVICES & SYSTEMS 1.43%
First Data Corp. 17,400 657
Fiserv, Inc.* 11,000 429
Paychex, Inc. 6,700 218
------------
TOTAL 1,304
------------
GOVERNMENT SPONSORED ENTERPRISE 1.86%
Federal National Mortgage Assoc. 26,552 1,700
------------
HEALTHCARE FACILITIES 0.52%
HCA, Inc. 9,097 321
Quest Diagnostics, Inc.* 2,500 149
------------
TOTAL 470
------------
HEALTHCARE MANAGEMENT SERVICES 1.84%
UnitedHealth Group, Inc. 18,000 938
WellPoint Health Networks, Inc.* 8,900 744
------------
TOTAL 1,682
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2003
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
HOMEBUILDING 0.61%
Lennar Corp. Class A^ 8,500 $ 554
------------
INSURANCE: MULTI-LINE 2.33%
AFLAC, Inc. 9,200 295
American Int'l. Group, Inc. 28,470 1,828
------------
TOTAL 2,123
------------
MEDICAL & DENTAL INSTRUMENTS & SUPPLIES 1.81%
Biomet, Inc. 11,450 339
Boston Scientific Corp.* 9,597 607
St. Jude Medical, Inc.* 6,400 343
Zimmer Holdings, Inc.* 7,500 359
------------
TOTAL 1,648
------------
MISCELLANEOUS BUSINESS & CONSUMER DISCRETIONARY 0.27%
Scripps Co. 3,000 249
------------
MULTI-SECTOR COMPANIES 4.92%
3M Co. 7,800 1,094
General Electric Co. 119,318 3,393
------------
TOTAL 4,487
------------
OIL: INTEGRATED INTERNATIONAL 0.35%
Exxon Mobil Corp. 9,000 320
------------
PRODUCTION TECHNOLOGY EQUIPMENT 1.52%
Applied Materials, Inc.* 46,050 898
KLA-Tencor Corp.*^ 9,500 491
------------
TOTAL 1,389
------------
RADIO & TV BROADCASTERS 0.57%
Clear Channel Communications, Inc.* 12,774 523
------------
RESTAURANTS 1.10%
Starbucks Corp.* 20,350 $ 556
Yum! Brands, Inc.* 15,000 449
------------
TOTAL 1,005
------------
RETAIL 9.94%
Amazon.com, Inc.* 13,000 542
Bed Bath & Beyond, Inc.* 11,000 427
Costco Wholesale Corp.* 13,200 489
Kohl's Corp.* 14,557 864
Lowe's Cos., Inc. 22,600 1,075
Target Corp. 27,800 1,065
The Home Depot, Inc. 43,250 1,349
TJX Cos., Inc. 24,000 467
Wal-Mart Stores, Inc. 49,750 2,782
------------
TOTAL 9,060
------------
SAVINGS & LOAN 0.97%
Washington Mutual, Inc. 22,400 884
------------
SECURITIES BROKERAGE & SERVICES 0.54%
Lehman Brothers Holdings, Inc. 7,750 490
------------
SERVICES: COMMERCIAL 1.62%
eBay, Inc.* 11,750 1,260
InterActiveCorp.*^ 5,300 214
------------
TOTAL 1,474
------------
SHOES 0.31%
NIKE, Inc. Class B 5,500 285
------------
SOAPS & HOUSEHOLD CHEMICALS 2.58%
Colgate-Palmolive Co. 13,100 715
Gillette Co. 11,000 339
The Procter & Gamble Co. 14,750 1,296
------------
TOTAL 2,350
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
SCHEDULE OF INVESTMENTS (CONCLUDED)
JULY 31, 2003
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
TEXTILES APPAREL MANUFACTURERS 0.38%
Coach, Inc.* 6,600 $ 350
------------
TOBACCO 0.55%
Altria Group, Inc. 12,500 500
------------
TRANSPORTATION MISCELLANEOUS 0.30%
Harley-Davidson, Inc. 5,900 277
------------
UTILITIES: CABLE TV & RADIO 0.37%
Comcast Corp.* 11,100 337
------------
UTILITIES: TELECOMMUNICATIONS 1.28%
Nextel Communications, Inc.* 24,000 438
QUALCOMM, Inc. 19,500 731
------------
TOTAL 1,169
------------
TOTAL COMMON STOCKS
(Cost $94,203,651) 90,395
============
SHORT-TERM INVESTMENTS 1.68%
COLLATERAL FOR SECURITIES ON LOAN 1.08%
State Street Navigator Securities Lending
Prime Portfolio, 1.03%(b) 988,700 $ 989
------------
<Caption>
PRINCIPAL
AMOUNT
(000)
------------
REPURCHASE AGREEMENT 0.60%
Repurchase Agreement dated 7/31/2003, 1.05% due
8/1/2003 with State Street Bank & Trust Co.
collateralized by $555,000 of Federal National
Mortgage Assoc. at 1.875% due 2/15/2005;
value: $561,532; proceeds: $547,702 $ 548 548
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,536,386) 1,537
============
TOTAL INVESTMENTS
100.82% (Cost $95,740,037) $ 91,932
============
</Table>
* Non-income producing security.
^ All (or a portion) of security on loan. See Note 5.
(a) Foreign security traded in U.S. dollars.
(b) Rate shown reflects 7 day yield as of July 31, 2003.
ADR American Depository Receipt.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
STATEMENT OF ASSETS AND LIABILITIES
July 31, 2003
<Table>
ASSETS:
Investment in securities, at value (cost $95,740,037) $ 91,931,570
Receivables:
Interest and dividends 62,612
Investment securities sold 789,270
Capital shares sold 318,642
Prepaid expenses and other assets 36,948
- -----------------------------------------------------------------------------
TOTAL ASSETS 93,139,042
- -----------------------------------------------------------------------------
LIABILITIES:
Payable upon return of securities on loan 988,700
Payables:
Investment securities purchased 568,246
Capital shares reacquired 89,102
Management fee 60,871
12b-1 distribution fees 62,188
Fund administration 7,976
Trustees' fees 8,970
Accrued expenses 172,286
- -----------------------------------------------------------------------------
TOTAL LIABILITIES 1,958,339
=============================================================================
NET ASSETS $ 91,180,703
=============================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 166,566,830
Accumulated net investment loss (8,970)
Accumulated net realized loss on investments (71,568,690)
Net unrealized depreciation on investments (3,808,467)
- -----------------------------------------------------------------------------
NET ASSETS $ 91,180,703
=============================================================================
NET ASSETS BY CLASS:
Class A Shares $ 65,177,458
Class B Shares $ 15,452,337
Class C Shares $ 10,549,915
Class P Shares $ 501.36
Class Y Shares $ 491.60
OUTSTANDING SHARES BY CLASS:
Class A Shares 14,773,075
Class B Shares 3,584,465
Class C Shares 2,449,012
Class P Shares 113.13
Class Y Shares 112.89
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 4.41
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 5.75%) $ 4.68
Class B Shares-Net asset value $ 4.31
Class C Shares-Net asset value $ 4.31
Class P Shares-Net asset value $ 4.43
Class Y Shares-Net asset value $ 4.35
=============================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
STATEMENT OF OPERATIONS
For the Year Ended July 31, 2003
<Table>
INVESTMENT INCOME:
Dividends $ 730,286
Interest 25,321
Securities lending-net 1,439
Foreign withholding tax (610)
- ----------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 756,436
- ----------------------------------------------------------------------------------
EXPENSES:
Management fee 569,860
12b-1 distribution plan-Class A 222,253
12b-1 distribution plan-Class B 117,918
12b-1 distribution plan-Class C 75,400
12b-1 distribution plan-Class P 3
Shareholder servicing 492,514
Professional 45,737
Reports to shareholders 54,580
Fund accounting 10,837
Fund administration 25,819
Custody 12,752
Trustees' fees 3,135
Registration 53,347
Securities lending 466
- ----------------------------------------------------------------------------------
Gross expenses 1,684,621
Expense reductions (1,170)
- ----------------------------------------------------------------------------------
NET EXPENSES 1,683,451
- ----------------------------------------------------------------------------------
NET INVESTMENT LOSS (927,015)
- ----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN:
Net realized loss on investments (27,860,887)
Net change in unrealized appreciation/depreciation on investments 36,548,923
==================================================================================
NET REALIZED AND UNREALIZED GAIN 8,688,036
==================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,761,021
==================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS JULY 31, 2003 JULY 31, 2002
OPERATIONS:
Net investment loss $ (927,015) $ (1,298,660)
Net realized loss on investments (27,860,887) (30,129,949)
Net change in unrealized appreciation/depreciation on investments 36,548,923 (9,107,063)
- ----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 7,761,021 (40,535,672)
====================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 32,212,353 48,249,246
Cost of shares reacquired (21,229,979) (29,462,103)
- ----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS 10,982,374 18,787,143
====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS 18,743,395 (21,748,529)
====================================================================================================
NET ASSETS:
Beginning of year 72,437,308 94,185,837
- ----------------------------------------------------------------------------------------------------
END OF YEAR $ 91,180,703 $ 72,437,308
====================================================================================================
ACCUMULATED NET INVESTMENT LOSS $ (8,970) $ (40,144)
====================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.02 $ 6.33 $ 10.57 $ 10.00
========== ========== ========== ==============
Investment operations:
Net investment loss(a) (.04) (.07) (.08) (.05)
Net realized and unrealized gain (loss) .43 (2.24) (4.14) .62
---------- ---------- ---------- --------------
Total from investment operations .39 (2.31) (4.22) .57
---------- ---------- ---------- --------------
Distributions to shareholders from net realized gain - - (.02) -
---------- ---------- ---------- --------------
NET ASSET VALUE, END OF PERIOD $ 4.41 $ 4.02 $ 6.33 $ 10.57
========== ========== ========== ==============
Total Return(b) 9.70% (36.49)% (39.96)% 5.70%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waivers and expense reductions 2.06% 2.02% 1.68% .82%(c)
Expenses, excluding waivers and expense reductions 2.06% 2.02% 1.69% 1.12%(c)
Net investment loss (1.06)% (1.29)% (1.01)% (.44)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 2001 7/31/2000
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 65,178 $ 56,665 $ 78,064 $ 83,703
Portfolio turnover rate 47.02% 42.08% 36.53% 14.66%
=====================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.95 $ 6.26 $ 10.51 $ 10.00
========== ========== ========== ==============
Investment operations:
Net investment loss(a) (.07) (.10) (.13) (.07)
Net realized and unrealized gain (loss) .43 (2.21) (4.10) .58
---------- ---------- ---------- --------------
Total from investment operations .36 (2.31) (4.23) .51
---------- ---------- ---------- --------------
Distributions to shareholders from net realized gain - - (.02) -
---------- ---------- ---------- --------------
NET ASSET VALUE, END OF PERIOD $ 4.31 $ 3.95 $ 6.26 $ 10.51
========== ========== ========== ==============
Total Return(b) 9.11% (36.90)% (40.34)% 5.20%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 2.67% 2.63% 2.29% 1.07%(c)
Expenses, excluding waiver and expense reductions 2.67% 2.63% 2.30% 1.53%(c)
Net investment loss (1.67)% (1.92)% (1.64)% (.68)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 2001 7/31/2000
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 15,452 $ 10,041 $ 11,522 $ 8,046
Portfolio turnover rate 47.02% 42.08% 36.53% 14.66%
=====================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.95 $ 6.25 $ 10.51 $ 10.00
========== ========== ========== ==============
Investment operations:
Net investment loss(a) (.07) (.10) (.13) (.07)
Net realized and unrealized gain (loss) .43 (2.20) (4.11) .58
---------- ---------- ---------- --------------
Total from investment operations .36 (2.30) (4.24) .51
---------- ---------- ---------- --------------
Distributions to shareholders from net realized gain - - (.02) -
---------- ---------- ---------- --------------
NET ASSET VALUE, END OF PERIOD $ 4.31 $ 3.95 $ 6.25 $ 10.51
========== ========== ========== ==============
Total Return(b) 9.11% (36.80)% (40.44)% 5.20%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 2.67% 2.63% 2.34% 1.01%(c)
Expenses, excluding waiver and expense reductions 2.67% 2.63% 2.35% 1.53%(c)
Net investment loss (1.67)% (1.91)% (1.69)% (.61)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 2001 7/31/2000
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 10,550 $ 5,731 $ 4,598 $ 2,066
Portfolio turnover rate 47.02% 42.08% 36.53% 14.66%
=====================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.03 $ 6.32 $ 10.53 $ 10.00
========== ========== ========== ==============
Investment operations:
Net investment loss(a) (.03) (.05) (.07) (.05)
Net realized and unrealized gain (loss) .43 (2.24) (4.12) .58
---------- ---------- ---------- --------------
Total from investment operations .40 (2.29) (4.19) .53
---------- ---------- ---------- --------------
Distributions to shareholders from net realized gain - - (.02) -
---------- ---------- ---------- --------------
NET ASSET VALUE, END OF PERIOD $ 4.43 $ 4.03 $ 6.32 $ 10.53
========== ========== ========== ==============
Total Return(b) 9.93% (36.23)% (39.83)% 5.30%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 2.12%+ 2.08% 1.74% .87%(c)
Expenses, excluding waiver and expense reductions 2.12%+ 2.08% 1.75% 1.19%(c)
Net investment loss (1.12)%+ (1.35)% (1.08)% (.43)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 2001 7/31/2000
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 1 $ -(e) $ 1 $ 1
Portfolio turnover rate 47.02% 42.08% 36.53% 14.66%
=====================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS Y SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.00 $ 6.31 $ 10.54 $ 10.00
========== ========== ========== ==============
Investment operations:
Net investment loss(a) (.07) (.08) (.08) (.01)
Net realized and unrealized gain (loss) .42 (2.23) (4.13) .55
---------- ---------- ---------- --------------
Total from investment operations .35 (2.31) (4.21) .54
---------- ---------- ---------- --------------
Distributions to shareholders from net realized gain - - (.02) -
---------- ---------- ---------- --------------
NET ASSET VALUE, END OF PERIOD $ 4.35 $ 4.00 $ 6.31 $ 10.54
========== ========== ========== ==============
Total Return(b) 8.75% (36.61)% (39.98)% 5.40%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 1.67%+ 1.63% 1.29% .59%(c)
Expenses, excluding waiver and expense reductions 1.67%+ 1.63% 1.30% .90%(c)
Net investment loss (.67)%+ (.87)% (.58)% (.11)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
---------------------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 2001 7/31/2000
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ -(e) $ -(e) $ 1 $ 1
Portfolio turnover rate 47.02% 42.08% 36.53% 14.66%
=====================================================================================================================
</Table>
+ The ratios have been determined on a Fund basis.
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of investment operations on December 15, 1999; SEC effective
date and date shares first became available to the public is
December 30, 1999.
(e) Amount represents less than $1,000.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Lord Abbett Large-Cap Growth Fund (the "Fund") is registered under the
Investment Company Act of 1940 (the "Act") as a diversified, open-end management
company. The Fund was organized as a Delaware Business Trust on September 29,
1999. The Fund commenced operations on December 15, 1999, and the Securities and
Exchange Commission declared the Fund effective and each class of shares became
available to the public on December 30, 1999.
The Fund's investment objective is to seek long-term capital growth. The Fund
offers five classes of shares: Classes A, B, C, P and Y, each with different
expenses and dividends. A front-end sales charge is normally added to the Net
Asset Value for Class A shares. There is no front-end sales charge in the case
of the Class B, C, P and Y shares, although there may be a contingent deferred
sales charge ("CDSC") as follows: certain redemptions of Class A shares made
within 24 months following any purchases made without a sales charge; Class B
shares redeemed before the sixth anniversary of purchase; and Class C shares
redeemed before the first anniversary of purchase. Class B shares will convert
to Class A shares on the eighth anniversary of the original purchase of Class B
shares.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) INVESTMENT VALUATION-Securities traded on any recognized U.S. or non-U.S.
exchange or on NASDAQ, Inc. are valued at the last sale price or official
closing price on the exchange or system on which they are principally
traded. Unlisted equity securities are valued at the last quoted sales price
or, if no sales price is available, at the mean between the most recently
quoted bid and asked prices. Securities for which market quotations are not
readily available are valued at fair value as determined by management and
approved in good faith by the Board of Trustees. Short-term securities with
60 days or less remaining to maturity are valued using the amortized cost
method, which approximates current market value.
(b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date that
the securities are purchased or sold (trade date). Realized gains and losses
on sales of portfolio securities are calculated using the identified-cost
method. Realized and unrealized gains or losses are allocated to each class
of shares, based upon the relative proportion of net assets at the beginning
of the day.
(c) INVESTMENT INCOME-Dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis and discounts are accreted
and premiums are amortized using the effective interest method. Investment
income is allocated to each class of shares based upon the relative
proportion of net assets at the beginning of the day.
(d) FEDERAL TAXES-It is the policy of the Fund to meet the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute
17
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
substantially all taxable income and capital gains to its shareholders.
Therefore, no federal income tax provision is required.
(e) EXPENSES-Expenses, excluding class specific expenses, are allocated to each
class of shares based upon the relative proportion of net assets at the
beginning of the day. Class A, Class B, Class C and Class P shares bear all
expenses and fees relating to their respective 12b-1 Distribution Plans.
(f) SECURITIES LENDING-The Fund may lend its securities to member banks of the
Federal Reserve System and to registered broker/dealers approved by the
Fund. The loans are collateralized at all times by cash and/or U.S. Treasury
securities. The collateral received is at least equal to 102% of the market
value of the securities loaned (105% in the case of foreign securities
loaned), as determined at the close of business on the preceding business
day.
The dividend and interest income earned on the securities loaned is
accounted for in the same manner as other dividend and interest income.
Lending portfolio securities could result in a loss or delay in recovering
the Fund's securities if the borrower defaults.
(g) 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 and agreed-upon price on an
agreed-upon date. The Fund requires at all times that the repurchase
agreement be collateralized by cash, U.S. Government securities or U.S.
Government Sponsored Enterprise 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 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 average daily net assets at
an annual rate of 0.75%.
In addition, effective January 1, 2003, Lord Abbett began providing certain
administrative services to the Fund pursuant to an Administrative Services
Agreement at the 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.
12b-1 DISTRIBUTION PLANS
The Fund has adopted a distribution 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
18
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 CLASS B CLASS C CLASS P
- -----------------------------------------------------------------------------------
Service .25% .25% .25% .20%
Distribution .10%(1)(2) .75% .75% .25%
</Table>
(1) In addition, the Fund pays a one-time distribution fee of up to 1% on
certain qualifying purchases, which is generally amortized over a two-year
period.
(2) Until January 1, 2003, the Fund paid an incremental marketing fee of
approximately .03% of average daily net assets attributable to Class A.
Class Y does not have a distribution plan.
COMMISSIONS
Distributor received the following commissions on sales of Class A shares of the
Fund after concessions were paid to authorized dealers for the year ended July
31, 2003:
<Table>
<Caption>
DISTRIBUTOR DEALERS'
COMMISSIONS CONCESSIONS
- --------------------------
$ 58,222 $ 335,308
</Table>
One Trustee and certain of the Fund's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS
Dividends from net investment income, if any, are declared and paid at least
annually. Taxable net realized gains from investment transactions, reduced by
capital loss carryforwards, if any, are declared and distributed to shareholders
at least annually. Dividends and distributions to shareholders are recorded on
the ex-dividend date. The amounts of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with federal income tax regulations which may differ from accounting principles
generally accepted in the United States of America. These book/tax differences
are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
components of net assets based on their federal tax basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for tax purposes are
reported as distributions of paid-in capital.
As of July 31, 2003, the Fund's components of accumulated earnings (losses) on a
tax basis are as follows:
<Table>
Capital loss carryforwards* $ (61,235,073)
Temporary differences (4,798,311)
Unrealized losses - net (9,352,743)
- -------------------------------------------------------
Total accumulated losses - net $ (75,386,127)
=======================================================
</Table>
* At July 31, 2003, the capital loss carryforwards along with the related
expiration dates are as follows:
<Table>
<Caption>
2010 2011 TOTAL
- -------------------------------------------------
$ 13,538,523 $ 47,696,550 $ 61,235,073
</Table>
Capital losses incurred after October 31 ("post-October losses") within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
$4,789,341 during fiscal 2003.
19
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of July 31, 2003, the Fund's aggregate security unrealized gains and losses
based on cost for U.S. federal income tax purposes are as follows:
<Table>
Tax cost $ 101,284,313
- --------------------------------------------------------
Gross unrealized gain 6,536,011
Gross unrealized loss (15,888,754)
- --------------------------------------------------------
Net unrealized security loss $ (9,352,743)
========================================================
</Table>
The difference between book-basis and tax-basis unrealized gains (losses) is
primarily attributable to wash sales and other temporary tax adjustments.
Permanent items identified during the year ended July 31, 2003, have been
reclassified among the components of net assets based on their tax basis
treatment as follows:
<Table>
<Caption>
ACCUMULATED NET PAID-IN
INVESTMENT LOSS CAPITAL
- -------------------------------
$ 958,189 $ (958,189)
</Table>
5. PORTFOLIO SECURITIES TRANSACTIONS
As of July 31, 2003, the value of securities loaned is $1,219,280. These loans
are collateralized by cash of $988,700, which is invested in a restricted money
market account, and U.S. Treasury securities with a value of $236,250, for a
total of $1,224,950. In accordance with the Fund's Security Lending
Authorization Agreement, additional collateral was received by the Fund on
August 1, 2003, the first business day following July 31, 2003. In connection
with the securities lending program, State Street Bank and Trust Company ("SSB")
received fees of $683. Fees of $217 for the period January 1, 2003 to July 31,
2003 have been netted against securities lending income on the Statement of
Operations.
Purchases and sales of investment securities (other than short-term investments)
for the year ended July 31, 2003 are as follows:
<Table>
<Caption>
PURCHASES SALES
- ---------------------------------
$ 44,164,429 $ 35,208,482
</Table>
There were no purchases or sales of U.S. Government securities for the year
ended July 31, 2003.
6. TRUSTEES' REMUNERATION
The Fund's officers and the one Trustee who are associated with Lord Abbett do
not receive any compensation from the Fund for serving in such capacities.
Outside Trustees' fees are allocated among all Lord Abbett-sponsored funds based
on the net assets of each fund. There is an equity based plan available to all
outside Trustees under which outside Trustees must defer receipt of a portion
of, and may elect to defer receipt of an additional portion of Trustees' fees.
The deferred amounts are treated as though equivalent dollar amounts have been
invested proportionately in the funds. Such amounts and earnings accrued thereon
are included in Trustees' fees on the Statement of Operations and in Trustees'
fees payable on the Statement of Assets and Liabilities and are not deductible
for U.S. federal income tax purposes until such amounts are paid.
7. EXPENSE REDUCTIONS
The Fund has entered into arrangements with its transfer agent and custodian
whereby credits realized as a result of uninvested cash balances are used to
reduce a portion of the Fund's expenses.
20
<Page>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
8. LINE OF CREDIT
The Fund, along with certain other funds managed by Lord Abbett, has available a
$200,000,000 unsecured revolving credit facility ("Facility"), from a consortium
of banks, to be used for temporary or emergency purposes as an additional source
of liquidity to fund redemptions of investor shares. Any borrowings under this
Facility will bear interest at current market rates as defined in the agreement.
The fee for this Facility is at an annual rate of .09%. As of July 31, 2003,
there were no loans outstanding pursuant to this Facility nor was the Facility
utilized at any time during the year.
9. CUSTODIAN AND ACCOUNTING AGENT
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 value.
10. INVESTMENT RISKS
The Fund is subject to the general risks and considerations associated with
equity investing as well as the particular risks associated with growth stocks.
The value of an investment will fluctuate in response to movements in the stock
market in general and to the changing prospects of individual companies in which
the Fund invests. Different types of stocks shift in and out of favor depending
on market and economic conditions. Growth stocks tend to be more volatile than
other stocks. In addition, if the Fund's assessment of a company's potential for
growth or market conditions is wrong, it could suffer losses or produce poor
performance relative to other funds, even in a rising market. These factors can
affect fund performance.
11. SUMMARY OF CAPITAL TRANSACTIONS
The Fund has an unlimited number of authorized shares of beneficial interest.
<Table>
<Caption>
YEAR ENDED YEAR ENDED
JULY 31, 2003 JULY 31, 2002
- ------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A SHARES
Shares sold 4,734,716 $ 18,975,565 6,501,782 $ 34,950,631
Shares reacquired (4,060,644) (16,055,071) (4,744,631) (23,960,082)
- ------------------------------------------------------------------------------------------------
Increase 674,072 $ 2,920,494 1,757,151 $ 10,990,549
- ------------------------------------------------------------------------------------------------
CLASS B SHARES
- ------------------------------------------------------------------------------------------------
Shares sold 1,910,525 $ 7,468,325 1,403,563 $ 7,361,337
Shares reacquired (867,222) (3,347,856) (704,334) (3,438,233)
- ------------------------------------------------------------------------------------------------
Increase 1,043,303 $ 4,120,469 699,229 $ 3,923,104
- ------------------------------------------------------------------------------------------------
CLASS C SHARES
- ------------------------------------------------------------------------------------------------
Shares sold 1,472,944 $ 5,768,463 1,127,206 $ 5,937,278
Shares reacquired (475,199) (1,827,052) (411,396) (2,063,788)
- ------------------------------------------------------------------------------------------------
Increase 997,745 $ 3,941,411 715,810 $ 3,873,490
- ------------------------------------------------------------------------------------------------
CLASS P SHARES
- ------------------------------------------------------------------------------------------------
Shares reacquired (0.01) $ (0.04) - $ -
- ------------------------------------------------------------------------------------------------
Decrease (0.01) $ (0.04) - $ -
- ------------------------------------------------------------------------------------------------
</Table>
21
<Page>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS,
LORD ABBETT LARGE-CAP GROWTH FUND:
We have audited the accompanying statement of assets and liabilities of Lord
Abbett Large-Cap Growth Fund (the "Fund"), including the schedule of
investments, as of July 31, 2003, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund'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 July 31, 2003 by correspondence with the custodian and
brokers. 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 Large-Cap Growth Fund as of July 31, 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 periods
presented, in conformity with accounting principles generally accepted in the
United States of America.
/s/ Deloitte & Touche LLP
New York, New York
September 23, 2003
22
<Page>
BASIC INFORMATION ABOUT MANAGEMENT
The Board of Trustees is responsible for the management of the business and
affairs of the Fund in accordance with the laws of the State of Delaware. 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 TRUSTEE
The following Trustee 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 Trustee and Managing Partner and Chief N/A
Lord, Abbett & Co. LLC Chairman since 1999 Investment Officer of Lord
90 Hudson Street Abbett since 1996.
Jersey City, NJ
Date of Birth: 3/8/1945
</Table>
----------
INDEPENDENT TRUSTEES
The following outside Trustees 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 TRUST DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------
E. THAYER BIGELOW Trustee since 1999 Managing General Partner, Currently serves as
Bigelow Media, LLC Bigelow Media, LLC (since 2000); director of Adelphia
41 Madison Ave., Senior Adviser, Time Warner Inc. Communications
Suite 3810 (1998 - 2000); Acting Chief Corp., Crane Co. and
New York, NY Executive Officer of Courtroom Huttig Building
Date of Birth: 10/22/1941 Television Network (1997 - Products Inc.
1998); President and Chief
Executive Officer of Time Warner
Cable Programming, Inc. (1991 -
1997).
WILLIAM H.T. BUSH Trustee since 1999 Co-founder and Chairman of the Currently serves as
Bush-O'Donnell & Co., Inc. Board of the financial advisory director of
101 South Hanley Road firm of Bush-O'Donnell & Company Wellpoint Health
Suite 1250 (since 1986). Network, Inc., DT
St. Louis, MO Industries Inc., and
Date of Birth: 7/14/1938 Engineered Support
Systems, Inc.
</Table>
23
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH TRUST DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------
ROBERT B. CALHOUN, JR. Trustee since 1999 Managing Director of Monitor Currently serves as
Monitor Clipper Partners Clipper Partners (since 1997) director of
650 Madison Ave. 9th Fl. and President of Clipper Asset Avondale, Inc. and
New York, NY Management Corp. (since 1991), Interstate Bakeries
Date of Birth: 10/25/1942 both private equity investment Corp.
funds.
STEWART S. DIXON Trustee since 1999; Partner in the law firm of N/A
Wildman, Harrold, retired 12/31/2002 Wildman, Harrold, Allen & Dixon
Allen & Dixon (since 1967).
225 W. Wacker Drive,
Suite 2800
Chicago, IL
Date of Birth: 11/5/1930
FRANKLIN W. HOBBS Trustee since 2000 Senior Advisor (since April Currently serves as
Houlihan Lokey 2003) and Former Chief Executive director of Adolph
Howard & Zukin Officer of Houlihan Lokey Howard Coors Company.
685 Third Ave. & Zukin, an investment bank
New York, NY (January 2002 - April 2003);
Date of Birth: 7/30/1947 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 Trustee since 1999 Retired - General Business and Currently serves as
415 Round Hill Road Governance Consulting (since director of
Greenwich, CT 1992); formerly President and Fountainhead Water
Date of Birth: 5/19/1933 CEO of Nestle Foods. Company, Lincoln
Snacks, H.J. Baker,
and Seix Fund, Inc.*
THOMAS J. NEFF Trustee since 1999 Chairman of Spencer Stuart, an Currently serves as
Spencer Stuart executive search consulting firm director of Ace,
277 Park Avenue (since 1996); President of Ltd. and Exult, Inc.
New York, NY Spencer Stuart (1979 - 1996).
Date of Birth: 10/2/1937
</Table>
24
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH TRUST DURING PAST FIVE YEARS DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------------
JAMES F. ORR, III Trustee since 2002; President and CEO of Currently serves as
80 Pinckney Street retired 3/3/2003 LandingPoint Capital (since Chairman of
Boston, MA 2002); Chairman and CEO of Rockefeller
Date of Birth: 3/5/1943 United Asset Management Foundation, Director
Corporation (2000 to 2001); of Nashua Corp. and
Chairman and CEO of UNUM SteelPoint
Provident Corporation (1999 - Technologies.
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.
----------
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 1999 Managing Partner and
(3/8/1945) Officer and President Chief Investment
Officer of Lord Abbett
since 1996.
ROBERT G. MORRIS Vice President Elected in 1999 Partner and Director of
(11/6/1944) Equity Investments,
joined Lord Abbett in
1991.
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,
prior thereto Vice
President - Head of
Fund Administration of
Morgan Grenfell.
JOAN A. BINSTOCK Chief Financial Elected in 1999 Partner and Chief
(3/4/1954) Officer and Vice Operations Officer,
President joined Lord Abbett in
1999, prior thereto
Chief Operating Officer
of Morgan Grenfell.
</Table>
25
<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
- -------------------------------------------------------------------------------------------------
DANIEL E. CARPER Vice President Elected in 1999 Partner, joined Lord
(1/22/1952) Abbett in 1979.
PAUL A. HILSTAD Vice President and Elected in 1999 Partner and General
(12/13/1942) Secretary Counsel, joined Lord
Abbett in 1995.
LAWRENCE H. KAPLAN Vice President and Elected in 1999 Partner and Deputy
(1/16/1957) Assistant Secretary General Counsel, joined
Lord Abbett in 1997.
A. EDWARD OBERHAUS, III Vice President Elected in 1999 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
(11/12/1957) Assistant Secretary Counsel, 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.
ROSELIA ST. LOUIS Vice President Elected in 2000 Assistant Investment
(1/1/1967) Manager, joined Lord
Abbett in 2000, prior
thereto Assistant
Portfolio Manager of
United Church Pension
Boards.
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 Trustees. It is
available free upon request.
26
<Page>
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.
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that Lord Abbett uses to vote
proxies relating to the Fund's portfolio securities is available without charge,
upon request, by calling 888-522-2388 or on Lord Abbett's web site at
www.LordAbbett.com.
27
<Page>
<Table>
[LORD ABBETT(R) LOGO]
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 Lord Abbett Large-Cap Growth Fund
current Fund prospectus.
Lord Abbett Mutual Fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC LALCG-2-703
90 Hudson Street - Jersey City, New Jersey 07302-3973 (9/03)
</Table>
<Page>
ITEM 2: Code of Ethics.
(a) In accordance with applicable requirements, the Registrant adopted a
Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the
principal executive officer and senior financial officers of the
Registrant ("Code of Ethics"). The Code of Ethics was in effect from
June 19, 2003 through the end of the reporting period on July 31,
2003 (the "Period").
(b) Not applicable.
(c) The Registrant has not amended the Code of Ethics as described in
Form N-CSR during the Period.
(d) The Registrant has not granted any waiver, including an implicit
waiver, from a provision of the Code of Ethics as described in Form
N-CSR during the Period.
(e) Not applicable.
(f) See Item 10(a) concerning the filing of the Code of Ethics.
ITEM 3: Audit Committee Financial Expert.
The Registrant's Board of Trustees has determined that each of the
independent Trustees who comprise the audit committee are audit committee
financial experts. The members of the audit committee are E. Thayer
Bigelow, Robert B. Calhoun, and Franklin W. Hobbs. Each audit committee
member is independent within the meaning of the Form N-CSR.
ITEM 4: Principal Accountant Fees and Services.
Not applicable.
ITEM 5: Audit Committee of Listed Registrants
Not applicable.
ITEM 6: [Reserved]
ITEM 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
<Page>
ITEM 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-3(c) under the Investment
Company Act of 1940) as of September 26, 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 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
Registrant's last fiscal half-year that have materially affected, or
are reasonably likely to materially affect, the Registrant's
internal control over financial reporting.
ITEM 10: Exhibits.
ITEM 10(a): Code of Ethics, as required by Item 2, is attached hereto as part of
EX-99.CODEETH.
ITEM 10(b):
(i) Certification of each principal executive officer and principal financial
officer of the Registrant as required by Rule 30a-2(a) 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 LARGE-CAP GROWTH FUND
/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: September 26, 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 LARGE-CAP GROWTH FUND
/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: September 26, 2003