<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 811-2924
Lord Abbett U.S. Government & Government Sponsored
--------------------------------------------------
Enterprises Money Market Fund, Inc.
-----------------------------------
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
-------------
Date of fiscal year end: 6/30
----
Date of reporting period: 12/31/2003
----------
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ITEM 1: Report to Shareholders.
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[LORD ABBETT LOGO]
2003
SEMI-
ANNUAL
REPORT
LORD ABBETT
U.S. GOVERNMENT &
GOVERNMENT SPONSORED
ENTERPRISES MONEY
MARKET FUND
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003
<Page>
- --------------------------------------------------------------------------------
LORD ABBETT U.S. GOVERNMENT & GOVERNMENT
SPONSORED ENTERPRISES MONEY MARKET FUND
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003
DEAR SHAREHOLDERS: We are pleased to provide you with an overview of the Lord
Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund's
(the Fund) performance for the six months ended December 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
- --------------------------------------------------------------------------------
Q. WHAT WERE THE OVERALL MARKET CONDITIONS OF THE REPORTING PERIOD?
A. At December 31, 2003, Treasury rates were higher than their lows at the
beginning of the six-month period, as the pace of recovery quickened and the
prospect of an eventual rate tightening by the Federal Reserve Board (the Fed)
emerged. The money markets, however, remained anchored to the fed funds rate.
This measure, the rate at which banks borrow or lend to one another on an
overnight basis, was lowered from 1.25% to 1.00% in June. Since the beginning of
the six-month period, the additional yield available from extending from
one-month to one-year maturities increased from two to twelve basis points.
Q. HOW DID THE FUND PERFORM FOR THE SIX MONTHS ENDED DECEMBER 31, 2003?
A. The Fund (Class A shares) ended the period with total net assets of $255.7
million and a seven-day current yield of 0.2%. The current yield refers to the
income generated by an investment in the Fund over a seven-day period, which is
then annualized. The yield quotation more closely reflects the current earnings
of the Fund than the one-year total return quotation. The Fund returned 0.1%,
reflecting performance at the Net Asset Value (NAV) of Class A shares, with all
distributions reinvested, for the six months ended December 31, 2003. Its peer
group, the Lipper U.S. Government Money Market Funds Average,(1) returned 0.2%
in the same period. Standardized Average Annual Total Returns, which include the
reinvestment of all distributions, as of December 31, 2003 are: 1 Year: 0.26%, 5
Years: 2.81% and 10 Years: 3.66%.
Q. WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A. In general, portfolio yield kept pace with short-term interest rates.
Consistent
1
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with its goal of providing current income with minimum credit risk, the Fund
remained invested in high-quality, short-term securities issued by the U.S.
Treasury and certain government sponsored enterprises, such as the Federal Home
Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage
Association (Fannie Mae). The Fund maintained an average maturity of 24.5 days
and concentrated on specific areas of the money market yield curve that the Fund
believes has the potential provide the highest risk-adjusted yield.
The Fund's portfolio is actively managed and, therefore, its holdings are
subject to change.
(1) The Lipper U.S. Government Money Market Funds Average aims at investments in
financial instruments issued or guaranteed by the U.S. Government, its agencies
or its instrumentalities, with dollar-weighted average maturities of less than
90 days. Peer averages are based on universes of funds with similar investment
objectives. Peer group averages include reinvested dividends and capital gains,
if any, and exclude sales charges. Indices are unmanaged, do not reflect the
deduction of fees or expenses and are not available for direct investment.
Source: Lipper Inc. (C)2003 REUTERS All rights reserved. Any copying,
republication or redistribution of Lipper content is expressly prohibited
without the prior written consent of Lipper.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
The views of the Fund's management and the portfolio holdings described in this
report are as of December 31, 2003; these views and portfolio holdings may have
changed subsequent to this date and they do not guarantee the future performance
of the markets or the Fund. Information provided in this report should not be
considered a recommendation to purchase or sell securities.
A NOTE ABOUT RISK: See Notes to Financial Statements for a discussion of
investment risks. For a more detailed discussion of the risks associated with
the Fund, please see the Fund's Prospectus.
PERFORMANCE: Performance data quoted above is historical. Past performance is no
guarantee of future results, and current performance may be higher or lower than
the performance data quoted. The Fund offers additional classes of shares with
distinct pricing options. For a full description of the differences in pricing
alternatives, please see the Fund's Prospectus.
YOU CAN OBTAIN PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END (AVAILABLE
WITHIN SEVEN BUSINESS DAYS OF THE MOST RECENT MONTH END) BY CALLING LORD ABBETT
AT 800-821-5129 OR REFER TO OUR WEBSITE AT www.LordAbbett.com.
THE PROSPECTUS CONTAINS IMPORTANT INFORMATION ABOUT THE FUND INCLUDING THE
FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND ONGOING EXPENSES THAT YOU
SHOULD CAREFULLY CONSIDER BEFORE INVESTING. TO OBTAIN A PROSPECTUS ON THIS FUND
OR ANY LORD ABBETT MUTUAL FUND, PLEASE CALL YOUR INVESTMENT PROFESSIONAL OR LORD
ABBETT DISTRIBUTOR LLC AT 800-874-3733 OR VISIT www.LordAbbett.com. READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
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.
2
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT AMORTIZED
INVESTMENTS RATE DATE RATING (000) COST
- --------------------------------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED ENTERPRISES
SECURITIES 87.04%
Federal Home Loan Bank 1.01% 1/16/2004 A1+ $ 15,000 $ 14,994,108
Federal Home Loan Mortgage Corp. 1.04% 2/3/2004 A1+ 15,000 14,986,134
Federal Home Loan Mortgage Corp. 1.045% 3/18/2004 A1+ 15,000 14,966,908
Federal Home Loan Mortgage Corp. 1.05% 1/8/2004 A1+ 10,000 9,998,250
Federal Home Loan Mortgage Corp. 1.05% 1/27/2004 A1+ 10,000 9,992,708
Federal Home Loan Mortgage Corp. 1.06% 1/22/2004 A1+ 10,000 9,994,111
Federal National Mortgage Assoc. 1.04% 1/2/2004 A1+ 15,000 15,000,000
Federal National Mortgage Assoc. 1.04% 1/6/2004 A1+ 10,000 9,998,845
Federal National Mortgage Assoc. 1.04% 1/9/2004 A1+ 10,000 9,997,978
Federal National Mortgage Assoc. 1.04% 1/13/2004 A1+ 10,000 9,996,822
Federal National Mortgage Assoc. 1.05% 1/8/2004 A1+ 10,000 9,998,250
Federal National Mortgage Assoc. 1.05% 1/12/2004 A1+ 5,000 4,998,542
Federal National Mortgage Assoc. 1.06% 1/5/2004 A1+ 15,000 14,998,675
Federal National Mortgage Assoc. 1.06% 1/14/2004 A1+ 15,000 14,994,700
Federal National Mortgage Assoc. 1.065% 1/7/2004 A1+ 15,000 14,997,781
Federal National Mortgage Assoc. 1.065% 2/4/2004 A1+ 15,000 14,985,356
Federal National Mortgage Assoc. 1.065% 2/11/2004 A1+ 10,000 9,988,167
Federal National Mortgage Assoc. 1.07% 2/18/2004 A1+ 10,000 9,986,031
Federal National Mortgage Assoc. 1.07% 3/3/2004 A1+ 35,000 34,936,543
Federal National Mortgage Assoc. 1.075% 1/28/2004 A1+ 10,000 9,992,236
--------------
TOTAL 259,802,145
--------------
SHORT-TERM INVESTMENT 13.22%
REPURCHASE AGREEMENT 13.22%
Repurchase Agreement 13.22%
Repurchase Agreement dated 12/31/2003,
0.80% due 1/2/2004 with State Street
Bank & Trust Co. collateralized by
$14,595,000 of Federal Home Loan Mortgage
Corp. at 2.07% due 8/26/2005, and
$25,535,000 of Federal National Mortgage
Assoc. at 1.04% due 7/26/2004; value:
$40,250,365; proceeds: $39,458,224 0.80% 1/2/2004 39,456 39,456,470
--------------
TOTAL INVESTMENTS 100.26% $ 299,258,615*
==============
</Table>
* Cost for federal income tax purposes is $299,258,615. Average maturity of
investments: 24.5 days.
SEE NOTES TO FINANCIAL STATEMENTS.
3
<Page>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
December 31, 2003
<Table>
ASSETS:
Investment in securities, at amortized cost $ 259,802,145
Repurchase agreement, at cost 39,456,470
Receivables:
Interest 1,754
Capital shares sold 1,540,427
From Lord, Abbett & Co. LLC 41,065
- -----------------------------------------------------------------------------
TOTAL ASSETS 300,841,861
- -----------------------------------------------------------------------------
LIABILITIES:
Payables:
Capital shares reacquired 1,851,214
Management fee 138,502
12b-1 distribution fees 21,867
Fund administration 7,180
Directors' fees 138,942
To affiliate 17,517
Dividends payable 51,583
Accrued expenses and other liabilities 122,470
- -----------------------------------------------------------------------------
Total liabilities 2,349,275
=============================================================================
NET ASSETS $ 298,492,586
=============================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 298,492,327
Undistributed net investment income 259
- -----------------------------------------------------------------------------
NET ASSETS $ 298,492,586
=============================================================================
NET ASSETS BY CLASS:
Class A Shares $ 255,659,039
Class B Shares $ 32,733,411
Class C Shares $ 10,100,136
OUTSTANDING SHARES BY CLASS:
Class A Shares 255,658,817
Class B Shares 32,733,391
Class C Shares 10,100,123
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 1.00
Class B Shares-Net asset value $ 1.00
Class C Shares-Net asset value $ 1.00
=============================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<Page>
STATEMENT OF OPERATIONS (UNAUDITED)
For the Six Months Ended December 31, 2003
<Table>
INVESTMENT INCOME:
Interest $ 1,838,318
EXPENSES:
Management fee 852,766
12b-1 distribution plan-Class B 169,367
Shareholder servicing 539,335
Market data 275
Professional 22,809
Reports to shareholders 29,396
Fund administration 70,170
Custody 7,343
Directors' fees 2,695
Registration 18,202
Other 2,231
- -----------------------------------------------------------------------------
Gross expenses 1,714,589
Expense reductions (1,274)
Expenses assumed by Lord, Abbett & Co. LLC (249,163)
- -----------------------------------------------------------------------------
NET EXPENSES 1,464,152
- -----------------------------------------------------------------------------
NET INVESTMENT INCOME $ 374,166
=============================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE
SIX MONTHS ENDED FOR THE
DECEMBER 31, 2003 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) JUNE 30, 2003
OPERATIONS:
Net investment income $ 374,166 $ 1,632,779
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (308,487) (1,416,808)
Class B (46,040) (120,997)
Class C (19,639) (94,974)
- ---------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (374,166) (1,632,779)
=======================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 378,974,445 778,169,232
Reinvestment of distributions 358,839 1,594,109
Cost of shares reacquired (401,697,802) (722,844,562)
- ---------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (22,364,518) 56,918,779
=======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (22,364,518) 56,918,779
=======================================================================================
NET ASSETS:
Beginning of period 320,857,104 263,938,325
- ---------------------------------------------------------------------------------------
END OF PERIOD $ 298,492,586 $ 320,857,104
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 259 $ 259
=======================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2003 ------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Investment operations
Net investment income(a) -(c) .01 .01 .05 .05 .04
Net realized gain - - - -(c) - -
--------- --------- --------- --------- --------- ---------
Total from investment
operations -(c) .01 .01 .05 .05 .04
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income -(c) (.01) (.01) (.05) (.05) (.04)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return(b) .11%(d) .55% 1.48% 5.02% 4.93% 4.36%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions .43%(d) .88% .86% .87% .84% .76%
Expenses, excluding waiver and
expense reductions .45%(d) .98% .87% .90% .84% .76%
Net investment income .10%(d) .56%+ 1.46%+ 4.89%+ 4.79% 4.31%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2003 ------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 255,659 $ 266,528 $ 227,169 $ 201,174 $ 190,817 $ 184,600
============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2003 ------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Investment operations
Net investment income(a) -(c) -(c) .01 .04 .04 .04
Net realized gain - - - -(c) - -
--------- --------- --------- --------- --------- ---------
Total from investment
operations -(c) - .01 .04 .04 .04
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income -(c) -(c) (.01) (.04) (.04) (.04)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return(b) .10%(d) .29% .80% 4.24% 4.13% 3.76%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions .43%(d) 1.15% 1.53% 1.62% 1.59% 1.52%
Expenses, excluding waiver and
expense reductions .83%(d) 1.73% 1.62% 1.65% 1.59% 1.52%
Net investment income .10%(d) .29%+ .71%+ 4.14%+ 4.01% 3.52%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2003 ------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 32,734 $ 39,609 $ 26,000 $ 14,059 $ 8,987 $ 11,188
============================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2003 ------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Investment operations
Net investment income(a) -(c) .01 .01 .05 .05 .04
Net realized gain - - - -(c) - -
--------- --------- --------- --------- --------- ---------
Total from investment
operations -(c) .01 .01 .05 .05 .04
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from
net investment income -(c) (.01) (.01) (.05) (.05) (.04)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return(b) .11%(d) .55% 1.48% 5.02% 4.93% 4.36%
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions .43%(d) .88% .86% .87% .84% .76%
Expenses, excluding waiver and
expense reductions .45%(d) .98% .87% .90% .84% .76%
Net investment income .10%(d) .56%+ 1.46%+ 4.89%+ 4.78% 4.27%
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2003 ------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2003 2002 2001 2000 1999
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 10,100 $ 14,720 $ 10,769 $ 6,693 $ 1,929 $ 5,193
=============================================================================================================================
</Table>
+ The ratios have been determined on a Fund basis.
(a) Calculated using average shares outstanding during the period.
(b) Total return assumes the reinvestment of all distributions.
(c) Amount is less than $.01.
(d) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market
Fund, Inc. (the "Fund") formerly known as Lord Abbett U.S. Government Securities
Money Market Fund, Inc. is registered under the Investment Company Act of 1940
(the "Act") as a diversified, open-end management investment company. The Fund
was incorporated under Maryland law on May 9, 1979.
The investment objective of the Fund is to seek high current income and
preservation of capital through investments in high quality, short-term, liquid
securities.
The Fund offers three classes of shares: Classes A, B, and C. There are no front
end sales charges on shares of each class, although a contingent deferred sales
charge ("CDSC") may be applied to each class of shares as follows: Class A
shares acquired through an exchange; Class B shares redeemed before the sixth
anniversary of purchase; Class C shares redeemed before the first anniversary of
purchase.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) INVESTMENT VALUATION-The Fund values securities utilizing the amortized cost
method, which approximates market value. Under this method, all investments
purchased at a discount or premium are valued by amortizing the difference
between the original purchase price and maturity value of the issue over the
period to maturity. Securities purchased at face value are valued at cost,
which approximates market value.
(b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date that
the securities are purchased or sold (trade date). Realized gains and losses
on sales of portfolio securities are calculated using the identified-cost
method.
(c) INVESTMENT INCOME-Interest income is recorded on the accrual basis.
Investment income is allocated to each class of shares based upon the
relative proportion of net assets at the beginning of the day.
(d) FEDERAL TAXES-It is the policy of the Fund to meet the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all taxable income to its
shareholders. Therefore, no federal income tax provision is required.
(e) EXPENSES-Expenses, excluding class specific expenses, are allocated to each
class of shares based upon the relative proportion of net assets at the
beginning of the day. Class B shares bear all expenses and fees related to
its 12b-1 distribution plan.
(f) REPURCHASE AGREEMENTS-The Fund may enter into repurchase agreements with
respect to securities. A repurchase agreement is a transaction in which the
Fund acquires a security and simultaneously commits to resell that security
to the seller (a bank or securities dealer) at an agreed-upon price on an
agreed-upon date. The Fund requires at all times that the
10
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
repurchase agreement be collateralized by cash, U.S. Government securities
or U.S. government sponsored enterprises 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 those securities has declined, the Fund may
incur a loss upon disposition of the securities.
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES
The Fund has a management agreement with Lord, Abbett & Co. LLC ("Lord Abbett")
pursuant to which Lord Abbett supplies the Fund with investment management
services and executive and other personnel, pays the remuneration of officers,
provides office space and pays for ordinary and necessary office and clerical
expenses relating to research and statistical work and supervision of the Fund's
investment portfolio.
The management fee is based on average daily net assets at the following annual
rates:
- ----------------------------------
<Table>
First $250 million .50%
Next $250 million .45%
Over $500 million .40%
</Table>
Lord Abbett provides certain administrative services to the Fund pursuant to an
Administrative Services Agreement at an annual rate of .04% of the Fund's
average daily net assets.
For the six months ended December 31, 2003, Lord Abbett voluntarily limited the
Fund's Class A, Class B and Class C expenses to maintain an annualized yield of
..20%. Lord Abbett may stop limiting expenses at any time.
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(1) CLASS B CLASS C(1)
- ---------------------------------------------------------------------------------
Service and distribution fee .15% .75% .25%
</Table>
(1) The Fund has not activated the Class A and Class C Plans, and therefore, no
payments are authorized currently under the Plans.
One Director and certain of the Fund's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS
Dividends from net investment income are declared daily and paid monthly.
Certain amounts have been reclassified within the components of net assets based
on their federal tax treatment.
5. DIRECTORS' REMUNERATION
The Fund's officers and the one Director who are associated with Lord Abbett do
not receive any compensation from the Fund for serving in such capacities.
Outside Directors' fees are allocated among all Lord Abbett-sponsored funds
based on the net assets of each fund. There is an equity
11
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
based plan available to all outside Directors under which outside Directors must
defer receipt of a portion of, and may elect to defer receipt of an additional
portion of Directors' fees. The deferred amounts are treated as though
equivalent dollar amounts have been invested proportionately in the funds. Such
amounts and earnings accrued thereon are included in Directors' fees on the
Statement of Operations and in Directors' fees payable on the Statement of
Assets and Liabilities and are not deductible for federal income tax purposes
until such amounts are paid.
6. EXPENSE REDUCTIONS
The Fund has entered into arrangements with its transfer agent and custodian
whereby credits realized as a result of uninvested cash balances are used to
reduce a portion of the Fund's expenses.
7. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank and Trust Company ("SSB") is the Fund's custodian and
accounting agent. SSB performs custodian, accounting and record keeping
functions relating to portfolio transactions and calculating the Fund's net
asset value.
8. INVESTMENT RISKS
The Fund's yield may vary in response to changes in interest rates and other
market factors.
The Fund may invest a substantial portion of its assets in money market
securities issued by various government sponsored enterprises such as Federal
Home Loan Mortgage Corporation and Federal National Mortgage Association. Such
securities are not guaranteed by the U.S. Government, but are supported only by
the credit of the particular government sponsored enterprises involved, and the
discretionary authority of the U.S. Treasury to purchase the enterprise
obligations. There is no assurance that the U.S. Government will provide
financial support to such enterprises.
An investment in the Fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corp. or any other government agency. Although
the Fund seeks to preserve the value of an investment at $1.00 per share, it is
possible to lose money by investing in the Fund. These factors can affect Fund
performance.
12
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONCLUDED)
9. SUMMARY OF CAPITAL TRANSACTIONS
The Fund has authorized 1,500,000,000 shares of $0.001 par value capital stock
designated as follows: 800,000,000 Class A shares, 400,000,000 Class B shares
and 300,000,000 Class C shares.
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 (UNAUDITED) JUNE 30, 2003
- -------------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
Shares sold 322,571,249 $ 322,571,249 676,711,702 $ 676,711,702
Reinvestment of distributions 298,201 298,201 1,403,363 1,403,363
Shares reacquired (333,738,666) (333,738,668) (638,756,373) (638,756,373)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) (10,869,216) $ (10,869,218) 39,358,692 $ 39,358,692
- -------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Shares sold 29,511,222 $ 29,511,221 56,996,775 $ 56,996,775
Reinvestment of distributions 42,996 42,996 103,760 103,760
Shares reacquired (36,429,525) (36,429,525) (43,491,543) (43,491,543)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) (6,875,307) $ (6,875,308) 13,608,992 $ 13,608,992
- -------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Shares sold 26,891,975 $ 26,891,975 44,460,755 $ 44,460,755
Reinvestment of distributions 17,642 17,642 86,986 86,986
Shares reacquired (31,529,608) (31,529,609) (40,596,646) (40,596,646)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) (4,619,991) $ (4,619,992) 3,951,095 $ 3,951,095
- -------------------------------------------------------------------------------------------------------------------
</Table>
13
<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 219336,
Kansas City, MO 64121.
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that Lord Abbett uses to vote
proxies related to the Fund's portfolio securities is available without charge,
upon request, (i) by calling 888-522-2388; (ii) on Lord Abbett's web site at
www.LordAbbett.com; and (iii) on the SEC's website at www.sec.gov.
14
<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 U.S. Government & Government Sponsored
Enterprises Money Market Fund, Inc.
Lord Abbett Mutual Fund shares are distributed by: LAMM-3-1203
LORD ABBETT DISTRIBUTOR LLC (2/04)
90 Hudson Street - Jersey City, New Jersey 07302-3973
</Table>
<Page>
ITEM 2: Code of Ethics.
Not Applicable in Semi-Annual Report.
ITEM 3: Audit Committee Financial Expert.
Not Applicable in Semi-Annual Report.
ITEM 4: Principal Accountant Fees and Services.
Not applicable in Semi-Annual Report.
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.
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 February 20, 2004, 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.
<Page>
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 U.S. GOVERNMENT &
GOVERNMENT SPONSORED ENTERPRISES
MONEY MARKET FUND, INC.
/s/ Robert S. Dow
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President
Date: February 20, 2004
<Page>
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
LORD ABBETT U.S. GOVERNMENT &
GOVERNMENT SPONSORED ENTERPRISES
MONEY MARKET FUND, INC.
/s/ Robert S. Dow
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President
Date: February 20, 2004