<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 811-10371
LORD ABBETT BLEND TRUST
-----------------------
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
Date of fiscal year end: 7/31
Date of reporting period: 7/31/2003
<Page>
ITEM 1: Report to Shareholders.
<Page>
[LORD ABBETT LOGO]
2003
ANNUAL
REPORT
LORD ABBETT
SMALL-CAP BLEND FUND
FOR THE YEAR ENDED JULY 31, 2003
<Page>
LORD ABBETT SMALL-CAP BLEND 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 Small-Cap Blend 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 25th, 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 27.6%(2) for the year ended July 31, 2003, outperforming
its benchmark, the Russell 2000(R) Index(3), which returned 23.1% for the same
period. STANDARDIZED AVERAGE ANNUAL TOTAL RETURNS FOR 1 YEAR AND SINCE INCEPTION
(6/26/01) WERE -4.95%, AND 1.27%, RESPECTIVELY, AS OF JUNE 30, 2003(4). FOR
ADDITIONAL PERFORMANCE INFORMATION PLEASE SEE PAGE 4.
The primary driver of performance in the Fund was stock selection in the
auto and transportation sector, as the prospects for economic recovery became
apparent. Specifically, holdings of manufacturers in the trucking industry
appreciated, as an economic revival increased companies' profit expectations.
The Fund's performance was also boosted by stock selection in the consumer
discretionary sector.
The largest detractor from Fund performance was stock selection in the
financial services sector. Fund holdings declined from lower revenues based on
difficult pricing trends and weaker-than-expected consumer spending. Lower
earnings in the sector also reflected higher-than-expected operating expenses.
In addition, stock selection in the energy sector hurt performance.
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 of Class A shares, with all
distributions reinvested, for the fiscal year ended July 31, 2003.
(3) The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, and represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index. 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 2000(R) Index (the "Index") assuming reinvestment of
all 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 2000(R)
AT NET ASSET VALUE MAXIMUM OFFERING PRICE(1) INDEX(2)
26-Jun-01 $ 10,000 $ 9,425 $ 10,000
9/30/2001 $ 8,976 $ 8,460 $ 7,921
12/31/2001 $ 10,850 $ 10,226 $ 9,592
3/31/2002 $ 11,437 $ 10,780 $ 9,973
6/30/2002 $ 10,791 $ 10,171 $ 9,141
9/30/2002 $ 8,802 $ 8,296 $ 7,184
12/31/2002 $ 9,220 $ 8,690 $ 7,627
3/31/2003 $ 8,634 $ 8,137 $ 7,285
6/30/2003 $ 10,882 $ 10,256 $ 8,991
7/31/2003 $ 11,648 $ 10,978 $ 9,553
</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 FUND
CLASS A(3) 20.23% 4.56%
CLASS B(4) 22.75% 5.54%
CLASS C(5) 26.75% 6.88%
CLASS P(6) 27.64% 7.63%
CLASS Y(7) 27.72% 7.72%
</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) Performance is calculated from June 26, 2001, SEC effective date. The Class
A shares were first offered to the public on July 2, 2001. This shows total
return which is the percent change in value, after deduction of the maximum
initial sales charge of 5.75% applicable to Class A Shares, with all
distributions reinvested for the periods shown ended July 31, 2003, using the
SEC-required uniform method to compute such return.
(4) Performance is calculated from June 26, 2001, SEC effective date. The Class
B shares were first offered to the public on July 2, 2001. Performance reflects
the deduction of a CDSC of 4% for 1 year and 3% for the life of the class.
(5) Performance is calculated from June 26, 2001, SEC effective date. The Class
C shares were first offered to the public on July 2, 2001. The 1% CDSC for Class
C shares normally applies before the first anniversary of the purchase date.
Performance is at net asset value.
(6) Performance is calculated from June 26, 2001, SEC effective date. The Class
P shares were first offered to the public on July 2, 2001. Performance is at net
asset value.
(7) Performance is calculated from June 26, 2001, SEC effective date. The Class
Y shares were first offered to the public on July 2, 2001. Performance is at net
asset value.
4
<Page>
SCHEDULE OF INVESTMENTS
JULY 31, 2003
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCKS 93.21%
AUTO COMPONENTS 1.61%
Wabash National Corp.* 95,500 $ 1,676
------------
BANKS 1.60%
Hanmi Financial Corp. 91,089 1,662
------------
BIOTECHNOLOGY RESEARCH & PRODUCTION 4.29%
Antigenics, Inc.* 54,400 681
Arthrocare Corp.* 159,636 2,674
Serologicals Corp.* 73,000 1,121
------------
TOTAL 4,476
------------
BUILDING: MATERIALS 1.55%
Watsco, Inc. 92,900 1,619
------------
BUILDING: ROOFING & WALLBOARD 3.10%
Elk Corp. 133,400 3,231
------------
CASINOS & GAMBLING 0.36%
Shuffle Master, Inc.* 12,800 375
------------
COMMUNICATIONS & MEDIA 2.35%
Entravision Communications* 102,000 1,086
Lamar Advertising Co.* 39,800 1,366
------------
TOTAL 2,452
------------
COMMUNICATIONS TECHNOLOGY 1.12%
TALX Corp. 54,303 1,172
------------
COMPUTER SERVICES SOFTWARE & SYSTEMS 3.49%
Websense, Inc.* 175,000 3,644
------------
CONSTRUCTION 6.55%
Cavco Industries, Inc.* 1,365 26
Centex Corp. 27,300 1,981
EMCOR Group, Inc.* 54,200 $ 2,239
Modtech Holdings, Inc.* 275,799 2,579
------------
TOTAL 6,825
------------
CONSUMER ELECTRONICS 6.85%
LoJack Corp.* 418,042 2,425
Take-Two Interactive Software, Inc.* 105,000 2,793
Universal Electronics, Inc.* 141,493 1,926
------------
TOTAL 7,144
------------
DRUGS & PHARMACEUTICALS 1.15%
Medicis Pharm Corp. 7,600 444
Noven Pharm, Inc.* 67,760 751
------------
TOTAL 1,195
------------
EDUCATION SERVICES 2.75%
Sylvan Learning Systems, Inc.* 108,000 2,872
------------
ELECTRONICS 2.89%
BEI Technologies, Inc. 221,200 3,017
------------
ELECTRONICS: TECHNOLOGY 3.30%
Titan Corp.* 224,200 3,439
------------
FOODS 1.52%
J & J Snack Foods Corp.* 46,708 1,583
------------
HEALTH & PERSONAL CARE 4.06%
Healthcare Service Group, Inc.* 82,700 1,357
Province Healthcare Co.* 214,650 2,876
------------
TOTAL 4,233
------------
HEALTHCARE MANAGEMENT SERVICES 2.03%
AmSurg Corp.* 69,700 2,114
------------
HOMEBUILDING 1.40%
Ryland Group, Inc. 22,500 1,460
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
SCHEDULE OF INVESTMENTS (CONCLUDED)
JULY 31, 2003
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
HOTEL/MOTEL 1.35%
La Quinta Corp.* 269,100 $ 1,407
------------
INSURANCE: MULTI-LINE 5.55%
Hilb, Rogal & Hamilton Co. 110,000 3,704
UICI* 148,800 2,080
------------
TOTAL 5,784
------------
INSURANCE: PROPERTY-CASUALTY 5.61%
HCC Insurance Holdings, Inc. 77,300 2,310
Ohio Casualty Corp.* 238,100 3,541
------------
TOTAL 5,851
------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES 7.11%
Grey Wolf, Inc.* 759,900 2,682
Key Energy Services, Inc.* 250,700 2,334
Pride Int'l., Inc.* 145,200 2,393
------------
TOTAL 7,409
------------
MEDICAL & DENTAL INSTRUMENTS & SUPPLIES 7.58%
ICU Medical, Inc.* 63,900 1,605
Merit Medical Systems, Inc.* 84,311 2,302
Molecular Devices Corp.* 40,600 760
Orthologic Corp.* 260,321 1,309
Theragenics Corp.* 435,900 1,931
------------
TOTAL 7,907
------------
PLASTICS 0.52%
Constar Int'l, Inc.* 89,000 543
------------
POWER TRANSMISSION EQUIPMENT 1.46%
Regal-Beloit Corp. 75,000 1,523
------------
RADIO & TV BROADCASTERS 3.18%
Regent Communications, Inc.* 582,358 3,319
------------
RECREATIONAL VEHICLES & BOATS 0.65%
Thor Industries, Inc. 3,700 $ 163
Winnebago Industries 13,100 518
------------
TOTAL 681
------------
RETAIL 0.49%
GTSI Corp.* 56,200 513
------------
SAVINGS & LOAN 1.56%
Brookline Bancorp, Inc. 109,165 1,625
------------
SERVICES: COMMERCIAL 3.49%
First Consulting Group, Inc.* 393,522 1,865
Sitel Corp.* 172,800 218
SM&A* 166,253 1,553
------------
TOTAL 3,636
------------
TELECOMMUNICATIONS EQUIPMENT 2.69%
SpectraLink Corp.* 169,200 2,805
------------
TOTAL COMMON STOCKS
(Cost $85,242,417) 97,192
============
<Caption>
PRINCIPAL
AMOUNT
(000)
------------
SHORT-TERM INVESTMENT 7.14%
REPURCHASE AGREEMENT 7.14%
Repurchase Agreement dated 7/31/2003, 1.05% due
8/1/2003 with State Street Bank & Trust Co.
collateralized by $7,530,000 of Federal National
Mortgage Assoc. at 2.17% due 9/26/2005;
value: $7,595,888; proceeds: $7,443,590
(Cost $7,443,373) $ 7,443 7,443
============
TOTAL INVESTMENTS
100.35% (Cost $92,685,790) $ 104,635
============
</Table>
* Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
STATEMENT OF ASSETS AND LIABILITIES
July 31, 2003
<Table>
ASSETS:
Investment in securities, at value (cost $92,685,790) $ 104,635,224
Receivables:
Interest and dividends 31,330
Investment securities sold 895,235
Capital shares sold 1,302,963
Prepaid expenses and other assets 17,194
- -----------------------------------------------------------------------------------
TOTAL ASSETS 106,881,946
- -----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 2,237,678
Capital shares reacquired 71,096
Management fee 70,137
12b-1 distribution fees 61,405
Fund administration 7,760
Trustees' fees 285
Accrued expenses and other liabilities 157,822
- -----------------------------------------------------------------------------------
TOTAL LIABILITIES 2,606,183
===================================================================================
NET ASSETS $ 104,275,763
===================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 92,922,630
Accumulated net investment loss (285)
Accumulated net realized loss on investments (596,016)
Net unrealized appreciation on investments 11,949,434
- -----------------------------------------------------------------------------------
NET ASSETS $ 104,275,763
===================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 59,716,800
Class B Shares $ 21,517,705
Class C Shares $ 23,038,624
Class P Shares $ 1,315.93
Class Y Shares $ 1,317.81
OUTSTANDING SHARES BY CLASS:
Class A Shares 5,098,935
Class B Shares 1,860,612
Class C Shares 1,992,257
Class P Shares 112.14
Class Y Shares 112.13
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 11.71
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 5.75%) $ 12.42
Class B Shares-Net asset value $ 11.56
Class C Shares-Net asset value $ 11.56
Class P Shares-Net asset value $ 11.73
Class Y Shares-Net asset value $ 11.75
===================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
STATEMENT OF OPERATIONS
For the Year Ended July 31, 2003
<Table>
INVESTMENT INCOME:
Dividends $ 231,290
Interest 47,143
- ----------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 278,433
- ----------------------------------------------------------------------------------
EXPENSES:
Management fee 507,004
12b-1 distribution plan-Class A 146,897
12b-1 distribution plan-Class B 145,847
12b-1 distribution plan-Class C 144,965
12b-1 distribution plan-Class P 5
Shareholder servicing 268,305
Professional 44,397
Reports to shareholders 54,504
Fund accounting 10,606
Fund administration 24,420
Custody 16,684
Trustees' fees 423
Registration 55,544
Other 36,656
- ----------------------------------------------------------------------------------
Gross expenses 1,456,257
Expense reductions (1,044)
Management fee waived (119,623)
- ----------------------------------------------------------------------------------
NET EXPENSES 1,335,590
- ----------------------------------------------------------------------------------
NET INVESTMENT LOSS (1,057,157)
- ----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 9,303
Net change in unrealized appreciation/depreciation on investments 21,299,623
==================================================================================
NET REALIZED AND UNREALIZED GAIN 21,308,926
==================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,251,769
==================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
INCREASE IN NET ASSETS JULY 31, 2003 JULY 31, 2002
OPERATIONS:
Net investment loss $ (1,057,157) $ (380,389)
Net realized gain (loss) on investments 9,303 (160,264)
Net change in unrealized appreciation/depreciation on investments 21,299,623 (9,413,287)
- ---------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 20,251,769 (9,953,940)
=========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAIN:
Class A - (4,728)
Class B - (1,408)
Class C - (956)
Class P - (1)
Class Y - (1)
- ---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS - (7,094)
=========================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 47,365,241 69,054,691
Reinvestment of distributions - 6,783
Cost of shares reacquired (15,750,280) (9,658,758)
- ---------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS 31,614,961 59,402,716
=========================================================================================================
NET INCREASE IN NET ASSETS 51,866,730 49,441,682
=========================================================================================================
NET ASSETS:
Beginning of year 52,409,033 2,967,351
- ---------------------------------------------------------------------------------------------------------
END OF YEAR $ 104,275,763 $ 52,409,033
=========================================================================================================
ACCUMULATED NET INVESTMENT LOSS $ (285) $ (353)
=========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
2003 2002 7/31/2001
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.18 $ 10.45 $ 10.00
========== ========== ==========
Unrealized appreciation on investments .06
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 10.06
==========
Investment operations:
Net investment loss(a) (.12) (.12) (.07)
Net realized and unrealized gain (loss) 2.65 (1.15) .46
---------- ---------- ----------
Total from investment operations 2.53 (1.27) .39
---------- ---------- ----------
Distributions to shareholders from net realized gain - -(g) -
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.71 $ 9.18 $ 10.45
========== ========== ==========
Total Return(b)(e) .60%(c)
Total Return(b) 27.56% (12.11)% 3.88%(c)(f)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 1.71% 1.66% .69%(c)
Expenses, excluding waiver and expense reductions 1.89% 2.41% .81%(c)
Net investment loss (1.30)% (1.09)% (.67)%(c)
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 7/31/2001
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 59,717 $ 29,962 $ 2,214
Portfolio turnover rate 68.48% 47.69% 5.86%
========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
2003 2002 7/31/2001
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.12 $ 10.45 $ 10.00
========== ========== ==========
Unrealized appreciation on investments .06
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 10.06
==========
Investment operations:
Net investment loss(a) (.18) (.18) (.07)
Net realized and unrealized gain (loss) 2.62 (1.15) .46
---------- ---------- ----------
Total from investment operations 2.44 (1.33) .39
---------- ---------- ----------
Distributions to shareholders from net realized gain - -(g) -
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.56 $ 9.12 $ 10.45
========== ========== ==========
Total Return(b)(e) .60%(c)
Total Return(b) 26.75% (12.68)% 3.88%(c)(f)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 2.33% 2.27% .75%(c)
Expenses, excluding waiver and expense reductions 2.51% 3.02% .87%(c)
Net investment loss (1.92)% (1.70)% (.76)%(c)
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 7/31/2001
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 21,518 $ 12,013 $ 283
Portfolio turnover rate 68.48% 47.69% 5.86%
========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
2003 2002 7/31/2001
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.12 $ 10.45 $ 10.00
========== ========== ==========
Unrealized appreciation on investments .06
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 10.06
==========
Investment operations:
Net investment loss(a) (.18) (.18) (.07)
Net realized and unrealized gain (loss) 2.62 (1.15) .46
---------- ---------- ----------
Total from investment operations 2.44 (1.33) .39
---------- ---------- ----------
Distributions to shareholders from net realized gain - -(g) -
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.56 $ 9.12 $ 10.45
========== ========== ==========
Total Return(b)(e) .60%(c)
Total Return(b) 26.75% (12.68)% 3.88%(c)(f)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 2.33% 2.27% .75%(c)
Expenses, excluding waiver and expense reductions 2.51% 3.02% .87%(c)
Net investment loss (1.92)% (1.70)% (.76)%(c)
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 7/31/2001
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 23,039 $ 10,432 $ 468
Portfolio turnover rate 68.48% 47.69% 5.86%
========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
2003 2002 7/31/2001
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.19 $ 10.45 $ 10.00
========== ========== ==========
Unrealized appreciation on investments .06
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 10.06
==========
Investment operations:
Net investment loss(a) (.10) (.12) (.07)
Net realized and unrealized gain (loss) 2.64 (1.14) .46
---------- ---------- ----------
Total from investment operations 2.54 (1.26) .39
---------- ---------- ----------
Distributions to shareholders from net realized gain - -(g) -
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.73 $ 9.19 $ 10.45
========== ========== ==========
Total Return(b)(e) .60%(c)
Total Return(b) 27.64% (12.01)% 3.88%(c)(f)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 1.78%+ 1.72% .70%(c)
Expenses, excluding waiver and expense reductions 1.96%+ 2.47% .82%(c)
Net investment loss (1.37)%+ (1.15)% (.68)%(c)
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 7/31/2001
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 1 $ 1 $ 1
Portfolio turnover rate 68.48% 47.69% 5.86%
=======================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<Table>
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
2003 2002 7/31/2001
PER SHARE OPERATING PERFORMANCE (CLASS Y SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.20 $ 10.45 $ 10.00
========== ========== ==========
Unrealized appreciation on investments .06
----------
NET ASSET VALUE ON SEC EFFECTIVE DATE $ 10.06
==========
Investment operations:
Net investment loss(a) (.11) (.10) (.07)
Net realized and unrealized gain (loss) 2.66 (1.15) .46
---------- ---------- ----------
Total from investment operations 2.55 (1.25) .39
---------- ---------- ----------
Distributions to shareholders from net realized gain - -(g) -
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.75 $ 9.20 $ 10.45
========== ========== ==========
Total Return(b)(e) .60%(c)
Total Return(b) 27.72% (11.92)% 3.88%(c)(f)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and expense reductions 1.33%+ 1.27% .66%(c)
Expenses, excluding waiver and expense reductions 1.51%+ 2.02% .78%(c)
Net investment loss (.92)%+ (.70)% (.63)%(c)
<Caption>
YEAR ENDED 7/31 6/18/2001(d)
---------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 7/31/2001
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 1 $ 1 $ 1
Portfolio turnover rate 68.48% 47.69% 5.86%
========================================================================================================
</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; SEC effective date on 6/26/01; Fund
shares became available to the public on 7/2/01.
(e) Total return is for the period 6/18/01 through 6/26/01.
(f) Total return is for the period 6/26/01 through 7/31/01.
(g) Amount represents less than $.01.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Lord Abbett Blend Trust (the "Trust") is registered under the Investment Company
Act of 1940 (the "Act") as an open-end management company, organized as a
Delaware Business Trust on May 1, 2001. The Trust has one series, Lord Abbett
Small-Cap Blend Fund (the "Fund"). The Securities and Exchange Commission
declared the registration of the Fund and its shares effective on June 26, 2001
and each class of shares became available to the public on July 2, 2001. The
Fund is diversified under the Act.
The Fund's investment objective is to seek long-term growth of capital by
investing primarily in stocks of small companies. The Fund offers five classes
of shares: Classes A, B, C, P and Y, each with different expenses and dividends.
A front-end sales charge is normally added to the Net Asset Value 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.
15
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(d) FEDERAL TAXES-It is the policy of the Fund to meet the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all taxable income and
capital gains to its shareholders. Therefore, no federal income tax
provision is required.
(e) EXPENSES-Expenses, excluding class specific expenses, are allocated to each
class of shares based upon the relative proportion of net assets at the
beginning of the day. Class A, Class B, Class C and Class P shares bear all
expenses and fees relating to their respective 12b-1 Distribution Plans.
(f) REPURCHASE AGREEMENTS-The Fund may enter into repurchase agreements with
respect to securities. A repurchase agreement is a transaction in which the
Fund acquires a security and simultaneously commits to resell that security
to the seller (a bank or securities dealer) at an agreed-upon price on an
agreed-upon date. The Fund requires at all times that the repurchase
agreement be collateralized by cash, 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 Trust has a management agreement with Lord, Abbett & Co. LLC ("Lord Abbett")
pursuant to which Lord Abbett supplies the Fund with investment management
services and executive and other personnel, pays the remuneration of officers,
provides office space and pays for ordinary and necessary office and clerical
expenses relating to research and statistical work and supervision of the Fund's
investment portfolio.
The management fee is based on average daily net assets at an annual rate of
0.75%. For the year ended July 31, 2003, Lord Abbett voluntarily waived a
portion of its management fee.
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.
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 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.
16
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
- ----------------------------
$ 77,352 $ 435,643
</Table>
One Trustee and certain of the Trust's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS & CAPITAL LOSS CARRYFORWARD
Dividends from net investment income, if any, are declared and paid at least
annually. Taxable net realized gains from investment transactions, reduced by
capital loss carryforwards, if any, are declared and distributed to shareholders
at least annually. The capital loss carryforward amount is available to offset
future net capital gains. 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.
The tax character of distributions paid during the years ended July 31, 2003 and
2002 are as follows:
<Table>
<Caption>
7/31/2003 7/31/2002
- ------------------------------------------------------------
Distributions paid from:
Ordinary income $ - $ 7,094
- ------------------------------------------------------------
Total distributions paid $ - $ 7,094
============================================================
</Table>
As of July 31, 2003, the Fund's components of accumulated earnings (losses) on a
tax basis are as follows:
<Table>
Temporary differences $ (428,104)
Unrealized gains - net 11,781,237
- ------------------------------------------------------------
Total accumulated gains - net $ 11,353,133
============================================================
Capital loss carryforward years of expiration None
</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
$427,819 during fiscal 2003.
17
<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 $ 92,853,987
- --------------------------------------------------------
Gross unrealized gain 14,374,994
Gross unrealized loss (2,593,757)
- --------------------------------------------------------
Net unrealized security gain $ 11,781,237
========================================================
</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 ACCUMULATED NET PAID-IN
INVESTMENT LOSS REALIZED LOSS CAPITAL
- --------------------------------------------------------
$ 1,057,225 $ (445,055) $ (612,170)
</Table>
5. PORTFOLIO SECURITIES TRANSACTIONS
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
- ---------------------------
$ 70,173,962 $ 44,309,324
</Table>
There were no purchases or sales of U.S. Government securities for the year
ended July 31, 2003.
6. TRUSTEES' REMUNERATION
The Trust's officers and the one Trustee who are associated with Lord Abbett do
not receive any compensation from the Trust for serving in such capacities.
Outside Trustees' fees are allocated among all Lord Abbett-sponsored funds based
on the net assets of each fund. There is an equity based plan available to all
outside Trustees under which outside Trustees must defer receipt of a portion
of, and may elect to defer receipt of an additional portion of Trustees' fees.
The deferred amounts are treated as though equivalent dollar amounts have been
invested proportionately in the funds. Such amounts and earnings accrued thereon
are included in Trustees' fees on the Statement of Operations and in Trustees'
fees payable on the Statement of Assets and Liabilities and are not deductible
for U.S. federal income tax purposes until such amounts are paid.
7. EXPENSE REDUCTIONS
The Fund has entered into arrangements with its transfer agent and custodian
whereby credits realized as a result of uninvested cash balances are used to
reduce a portion of the Fund's expenses.
18
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 are no loans outstanding pursuant to this Facility nor was the Facility
utilized at any time during the year ended July 31, 2003.
9. 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 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 and
value stocks. The value of an investment will fluctuate in response to movements
in the stock market in general and to the changing prospects of individual
companies in which the Fund invests. Different types of stocks shift in and out
of favor depending on market and economic conditions. Growth stocks tend to be
more volatile than other stocks. The market may fail to recognize the intrinsic
value of particular value stocks for a long time. In addition, if the Fund's
assessment of a company's potential for growth or market conditions is wrong, it
could suffer losses or produce poor performance relative to other funds, even in
a rising market. The Fund invests primarily in small company stocks, which tend
to be more volatile and can be less liquid than large company stocks. Small
companies may also have more limited product lines, markets or financial
resources, and typically experience a higher risk of failure than large
companies. These factors can affect Fund performance.
19
<Page>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
11. SUMMARY OF CAPITAL TRANSACTIONS
The Trust 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 2,908,482 $ 28,100,893 3,753,762 $ 40,724,135
Reinvestment of distributions - - 464 4,692
Shares reacquired (1,072,690) (10,036,648) (703,068) (7,449,765)
- ------------------------------------------------------------------------------------------------------
Increase 1,835,792 $ 18,064,245 3,051,158 $ 33,279,062
- ------------------------------------------------------------------------------------------------------
CLASS B SHARES
Shares sold 817,977 $ 7,840,219 1,415,515 $ 15,409,487
Reinvestment of distributions - - 122 1,234
Shares reacquired (274,061) (2,510,069) (126,045) (1,281,171)
- ------------------------------------------------------------------------------------------------------
Increase 543,916 $ 5,330,150 1,289,592 $ 14,129,550
- ------------------------------------------------------------------------------------------------------
CLASS C SHARES
Shares sold 1,192,843 $ 11,424,129 1,189,851 $ 12,921,069
Reinvestment of distributions - - 85 855
Shares reacquired (343,914) (3,203,563) (91,364) (927,822)
- ------------------------------------------------------------------------------------------------------
Increase 848,929 $ 8,220,566 1,098,572 $ 11,994,102
- ------------------------------------------------------------------------------------------------------
CLASS P SHARES
Reinvestment of distributions - $ - -(a) $ 1
- ------------------------------------------------------------------------------------------------------
Increase - $ - -(a) $ 1
- ------------------------------------------------------------------------------------------------------
CLASS Y SHARES
Reinvestment of distributions - $ - -(a) $ 1
- ------------------------------------------------------------------------------------------------------
Increase - $ - -(a) $ 1
- ------------------------------------------------------------------------------------------------------
</Table>
(a) Amount represents less than 1 share.
20
<Page>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS,
LORD ABBETT BLEND TRUST -- LORD ABBETT SMALL-CAP BLEND FUND:
We have audited the accompanying statement of assets and liabilities of Lord
Abbett Blend Trust - Lord Abbett Small-Cap Blend 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 Blend Trust - Lord Abbett Small-Cap Blend 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
21
<Page>
BASIC INFORMATION ABOUT MANAGEMENT
The Board of Trustees is responsible for the management of the business and
affairs of the Trust 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
Trust and who execute policies authorized by the Board. The Board also approves
an investment adviser to the Trust 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.
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 TRUST DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Trustee and Chairman Managing Partner and Chief N/A
Lord, Abbett & Co. LLC since 2001 Investment Officer of Lord Abbett
90 Hudson Street 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 2001 Managing General Partner, Bigelow Currently serves as director of
Bigelow Media, LLC Media, LLC (since 2000); Senior Adelphia Communications Corp.,
41 Madison Ave., Adviser, Time Warner Inc. Crane Co. and Huttig Building
Suite 3810 (1998 - 2000); Acting Chief Products Inc.
New York, NY Executive Officer of Courtroom
Date of Birth: 10/22/1941 Television Network (1997 - 1998);
President and Chief Executive
Officer of Time Warner Cable
Programming, Inc. (1991 - 1997).
WILLIAM H.T. BUSH Trustee since 2001 Co-founder and Chairman of the Currently serves as director of
Bush-O'Donnell & Co., Inc. Board of the financial advisory Wellpoint Health Network, Inc., DT
101 South Hanley Road firm of Bush-O'Donnell & Company Industries Inc., and Engineered
Suite 1250 (since 1986). Support Systems, Inc.
St. Louis, MO
Date of Birth: 7/14/1938
</Table>
22
<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 2001 Managing Director of Monitor Currently serves as director of
Monitor Clipper Partners Clipper Partners (since 1997) Avondale, Inc. and Interstate
650 Madison Ave. 9th Fl. and President of Clipper Asset Bakeries Corp.
New York, NY Management Corp. (since 1991),
Date of Birth: 10/25/1942 both private equity investment
funds.
STEWART S. DIXON Trustee since 2001; Partner in the law firm of N/A
Wildman, Harrold, retired 12/31/2002 Wildman, Harrold, Allen &
Allen & Dixon Dixon (since 1967).
225 W. Wacker Drive,
Suite 2800
Chicago, IL
Date of Birth: 11/5/1930
FRANKLIN W. HOBBS Trustee since 2001 Senior Advisor (since April Currently serves as director of
Houlihan Lokey 2003) and Former Chief Adolph Coors Company.
Howard & Zukin Executive Officer of Houlihan
685 Third Ave. Lokey Howard & Zukin, an
New York, NY investment bank (January 2002 -
Date of Birth: 7/30/1947 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 Trustee since 2001 Retired - General Business Currently serves as director of
415 Round Hill Road and Governance Consulting (since Fountainhead Water Company, Lincoln
Greenwich, CT 1992); formerly President and CEO Snacks, H.J. Baker, and Seix Fund,
Date of Birth: 5/19/1933 of Nestle Foods. Inc.*
THOMAS J. NEFF Trustee since 2001 Chairman of Spencer Stuart, an Currently serves as director of
Spencer Stuart executive search consulting Ace, Ltd. and Exult, Inc.
277 Park Avenue firm (since 1996); President
New York, NY of Spencer Stuart (1979 - 1996).
Date of Birth: 10/2/1937
</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
- -----------------------------------------------------------------------------------------------------------------------------------
JAMES F. ORR, III Trustee since 2002; President and CEO of LandingPoint Currently serves as Chairman of
80 Pinckney Street retired 3/3/2003 Capital (since 2002); Chairman Rockefeller Foundation, Director of
Boston, MA and CEO of United Asset Management Nashua Corp. and SteelPoint
Date of Birth: 3/5/1943 Corporation (2000 to 2001); Technologies.
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 Trust's Chairman, CEO,
and President and the Managing Partner of Lord Abbett.
----------
OFFICERS
None of the officers listed below have received compensation from the Trust. All
the officers of the Trust 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 TRUST OF CURRENT POSITION DURING PAST FIVE YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Chief Executive Elected in 2001 Managing Partner and Chief
(3/8/1945) Officer and President Investment Officer of Lord Abbett
since 1996.
MICHAEL T. SMITH Executive Vice Elected in 2001 Partner and Investment Manager,
(5/28/1963) President joined Lord Abbett in 1997.
TRACIE E. AHERN Vice President and Elected in 2001 Partner and Director of Portfolio
(1/12/1968) Treasurer 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 2001 Partner and Chief Operations
(3/4/1954) Officer and Vice Officer, joined Lord Abbett in 1999,
President prior thereto Chief Operating
Officer of Morgan Grenfell.
DANIEL E. CARPER Vice President Elected in 2001 Partner, joined Lord Abbett in 1979.
(1/22/1952)
</Table>
24
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONCLUDED)
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH TRUST OF CURRENT POSITION DURING PAST FIVE YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
PAUL A. HILSTAD Vice President and Elected in 2001 Partner and General Counsel, joined
(12/13/1942) Secretary Lord Abbett in 1995.
LAWRENCE H. KAPLAN Vice President and Elected in 2001 Partner and Deputy General Counsel,
(1/16/1957) Assistant Secretary joined Lord Abbett in 1997.
ROBERT G. MORRIS Vice President Elected in 2001 Partner and Director of Equity
(11/06/1944) Investments, joined Lord Abbett in
1991.
A. EDWARD OBERHAUS, III Vice President Elected in 2001 Partner and Manager of Equity
(12/21/1959) Trading, joined Lord Abbett in 1983.
VINCENT SCIALLI Vice President Elected in 2002 Senior Equity Analyst-Small Cap
(11/5/1969) Blend Team, joined Lord Abbett in
2001, formerly Senior Research
Analyst at Bear, Stearns & Co. from
2000 to 2001, prior thereto Senior
Equity Analyst at Prudential
Securities.
CHRISTINA T. SIMMONS Vice President and Elected in 2001 Assistant General Counsel, joined
(11/12/1957) Assistant Secretary 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 Administration,
(6/12/1971) 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 Trust's Trustees. It is
available free upon request.
25
<Page>
HOUSEHOLDING
The Trust has adopted a policy that allows it to send only one copy of the
Fund's Prospectus, proxy material, annual report and 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.
26
<Page>
[LORD ABBETT(R) LOGO]
<Table>
This report when not used for the general
information of shareholders of the Fund, is to
be distributed only if preceded or accompanied
by a current Fund Prospectus. Lord Abbett Blend Trust
Lord Abbett Small-Cap Blend Fund
Lord Abbett Mutual Fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC
90 Hudson Street - Jersey City, New Jersey 07302-3973 LASCB-2-703
(9/03)
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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.
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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.
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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 BLEND TRUST
/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
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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 BLEND TRUST
/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