<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 811-5476
Lord Abbett Global Fund, Inc.
-----------------------------
(Exact name of Registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
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(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
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Date of fiscal year end: 12/31
-----
Date of reporting period: 12/31/2003
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ITEM 1: Report to Shareholders.
<Page>
[LORD ABBETT LOGO]
2003
ANNUAL
REPORT
LORD ABBETT
GLOBAL EQUITY FUND
GLOBAL INCOME FUND
FOR THE YEAR ENDED DECEMBER 31, 2003
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LORD ABBETT GLOBAL FUND
ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003
DEAR SHAREHOLDER: We are pleased to provide you with this twelve-month overview
of the Funds' strategies and performance for the fiscal year 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
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Q. WHAT WERE THE OVERALL MARKET CONDITIONS DURING THE REPORTING PERIOD?
A. Economic fundamentals in Europe remained weak in the first half of the year,
prompting the European Central Bank (the ECB) to lower a key interest rate by
one-quarter of a percentage point in March and an additional one-half of a
percentage point in June. Signs of economic recovery in the United States were
somewhat more encouraging. Nonetheless, in June the U.S. Federal Reserve Board
(the Fed) lowered the fed funds rate again to 1%, its lowest level in 45 years,
to provide additional stimulus and to avoid the risk -- albeit small -- of
deflation.
Sentiment improved in the second half of the year. In Germany, Europe's
largest economy, a business sentiment index rose for the fourth straight month.
Elsewhere, in Asia, growth trends were positive. The outlook for Japan grew
brighter, with some forecasters expecting the Japanese economy to expand 3.2%
for the fiscal year ending in March 2004. The U.S. economy grew at the fastest
pace in 20 years in the third quarter, rising at an annualized 8.2%.
World commodity prices rose in 2003, reflecting, in part, increased demand
for basic materials, in itself another sign of global economic recovery. The
currencies of commodity-based economies, such as Chile and Australia, were the
beneficiaries.
An improving global economic picture helped to power international equities
to a strong year in 2003, following an early sell-off that ended in mid-March.
International equity returns to U.S. investors were also helped by the declining
U.S. dollar, which fell sharply against the euro during the period, and less
sharply versus the yen and sterling. Stronger local currencies did not appear to
impact export-related business in other countries as global demand rose.
Global interest rates remained low throughout the year, the result of highly
1
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accommodative monetary policies in the major economies. In the fixed-income
markets, investors searched for yield, favoring higher-yielding, lower-quality
credits. Reflecting stronger economic growth patterns in the second half of the
year, however, the central banks of the United Kingdom and Australia raised
rates in November.
LORD ABBETT GLOBAL EQUITY FUND
Q. HOW DID THE FUND PERFORM FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003?
A. The Fund returned 26.4%, reflecting the performance at the Net Asset Value
(NAV) of Class A shares, with all distributions reinvested, underperforming the
MSCI World Index,(1) which returned 33.8% over the same period. STANDARDIZED
AVERAGE ANNUAL TOTAL RETURNS, which reflect performance at the maximum 5.75%
sales charge applicable to Class A share investments and include the
reinvestment of all distributions, as of December 31, 2003 are: 1 Year: 19.09%,
5 Years: -2.02% and 10 Years: 2.31%.
Q. WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A. The Fund's stock selection in the financial sector detracted from
performance. In particular, the Fund's positions in U.S. regional banks lowered
returns. Stock selection in the industrial sector also lowered returns, as did
the Fund's underweight in the materials sector.
The Fund's stock selection within the energy sector added performance
relative to the index, as strong top-line revenue growth and net income in
certain Chinese oil and energy companies benefited performance. In addition,
stock selection within the telecomm services sector helped performance, as
deleveraging and stronger demand in the industry brought higher hopes for better
financial results.
The Fund's portfolio is actively managed and, therefore, allocations are
subject to change, and sectors may include many industries.
LORD ABBETT GLOBAL INCOME FUND
Q. HOW DID THE FUND PERFORM FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003?
A. The Fund returned 12.8%, reflecting performance at the Net Asset Value (NAV)
of Class A shares, with all distributions reinvested, for the year ended
December 31, 2003, and outperforming its benchmark, the Lehman Global Aggregate
Index,(2) which returned 12.5% for the same period.
(1) The MSCI World Index is an unmanaged Index that reflects the stock markets
of 22 countries, including the United States, Canada, Europe, Australasia and
the Far East, with values expressed in U.S. dollars. Indices are unmanaged, do
not reflect the deduction of fees or expenses and are not available for direct
investment.
(2) The Lehman Global Aggregate Index provides a broad-based measure of the
global investment-grade, fixed-income markets. The three major components of
this Index are the U.S. Aggregate, the Pan-European Aggregate, and the
Asian-Pacific Aggregate Indices. The Index also includes Eurodollar and Euro-Yen
corporate bonds, Canadian Government securities and USD investment grade 144A
securities. Indices are unmanaged, do not reflect the deduction of fees or
expenses and are not available for direct investment.
2
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Standardized Average Annual Total Returns, which reflect performance at the
maximum 4.75% sales charge applicable to Class A share investments and include
the reinvestment of all distributions, as of December 31, 2003 are: 1 Year:
7.50%, 5 Years: 2.62% and 10 Years: 4.73%.
Q. WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A. During the year, the Fund benefited from its underweight position, relative
to its benchmark, in the U.S. dollar, reflecting expectations that growing U.S.
fiscal and current account deficits would continue to pressure the dollar lower,
particularly against the euro and the Japanese yen. At the same time, the Fund
was overweight the euro, which rose nearly 20% against the U.S. dollar in 2003,
adding to the performance of the Fund. Meanwhile, positions in commodity-based
currencies, such as the Chilean peso and the Canadian dollar, also contributed
to performance.
The Fund also benefited from overweight positions in emerging market
sovereign bonds and high-yield corporate bonds, as investors continued their
search for higher yield, pushing prices of riskier assets higher.
Detracting from performance in the fiscal year was a small position in the
high-yield bonds of a basic industry company, as higher energy prices increased
manufacturing costs.
The Fund's portfolio is actively managed and, therefore, its holdings are
subject to change.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
The views of the Fund 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 IS HISTORICAL. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE
PERFORMANCE DATA QUOTED. 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. Except
where noted, comparative fund performance does not account for the deduction of
sales charges and would be different if sales charges
3
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were included. The Fund offers additional classes of shares with distinct
pricing options. For a full description of the differences in pricing
alternatives, please see the Funds' 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 REFERRING 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.
4
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GLOBAL EQUITY FUND
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INVESTMENT COMPARISON
Below is a comparison of a $10,000 investment in Class A shares with the same
investment in the Morgan Stanley Capital International World Index, assuming
reinvestment of all dividends and distributions. The performance of the 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) MORGAN STANLEY CAPITAL
THE FUND (CLASS A SHARES) AT MAXIMUM INTERNATIONAL
AT NET ASSET VALUE OFFERING PRICE(1) WORLD INDEX(2)
12/31/93 $ 10,000 $ 9,425 $ 10,000
12/31/94 $ 9,989 $ 9,415 $ 10,558
12/31/95 $ 10,907 $ 10,280 $ 12,809
12/31/96 $ 11,820 $ 11,140 $ 14,602
12/31/97 $ 12,764 $ 12,030 $ 16,972
12/31/98 $ 13,922 $ 13,122 $ 21,181
12/31/99 $ 15,644 $ 14,745 $ 26,549
12/31/2000 $ 16,392 $ 15,449 $ 23,119
12/31/2001 $ 12,655 $ 11,927 $ 19,299
12/31/2002 $ 10,556 $ 9,949 $ 15,528
12/31/2003 $ 13,341 $ 12,574 $ 20,771
</Table>
FISCAL YEAR-END 12/31
AVERAGE ANNUAL TOTAL RETURN AT MAXIMUM APPLICABLE
SALES CHARGE FOR THE PERIOD ENDED DECEMBER 31, 2003
<Table>
<Caption>
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND
CLASS A(3) 19.09% -2.02% 2.31% --
CLASS B(4) 21.62% -1.68% -- 1.61%
CLASS C(5) 25.59% -1.53% -- 1.62%
</Table>
(1) Reflects the deduction of the maximum sales charge of 5.75%.
(2) Performance for the unmanaged index does not reflect transaction costs,
management fees or sales charges. The performance of the index is not
necessarily representative of the Fund's performance.
(3) Class A shares were first offered on September 30, 1988. Total return, which
is the percent change in value, after deduction of the maximum sales charge of
5.75% applicable to Class A shares, with all distributions reinvested for the
periods shown ending December 31, 2003 using the SEC-required uniform method to
compute such return.
(4) Class B shares were first offered on August 1, 1996. Performance reflects
the deduction of a CDSC of 4% for 1 year and 0% for 5 years and life of the
class.
(5) Class C Shares were first offered on July 15, 1996 and made available to the
public on August 1, 1996. The 1% CDSC for Class C shares normally applies before
the first anniversary of the purchase date. Performance began on August 1, 1996
and is at net asset value.
5
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GLOBAL INCOME FUND
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INVESTMENT COMPARISON
Below is a comparison of a $10,000 investment in Class A shares with the same
investment in the Lehman Global Aggregate Index, assuming reinvestment of all
dividends and distributions. The performance of the 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 MAXIMUM LEHMAN GLOBAL
AT NET ASSET VALUE OFFERING PRICE(1) AGGREGATE INDEX(2)
12/31/93 $ 10,000 $ 9,525 $ 10,000
12/31/94 $ 9,660 $ 9,201 $ 10,022
12/31/95 $ 11,385 $ 10,844 $ 11,992
12/31/96 $ 12,082 $ 11,508 $ 12,581
12/31/97 $ 12,593 $ 11,995 $ 13,056
12/31/98 $ 13,951 $ 13,288 $ 14,848
12/31/99 $ 12,630 $ 12,030 $ 14,080
12/31/2000 $ 12,624 $ 12,025 $ 14,527
12/31/2001 $ 12,861 $ 12,250 $ 14,755
12/31/2002 $ 14,777 $ 14,075 $ 17,191
12/31/2003 $ 16,667 $ 15,875 $ 19,338
</Table>
FISCAL YEAR-END 12/31
AVERAGE ANNUAL TOTAL RETURN AT MAXIMUM APPLICABLE
SALES CHARGE FOR THE PERIOD ENDED DECEMBER 31, 2003
<Table>
<Caption>
1 YEAR 5 YEARS 10 YEARS LIFE OF CLASS
CLASS A(3) 7.50% 2.62% 4.73% --
CLASS B(4) 8.22% 2.86% -- 4.59%
CLASS C(5) 12.29% 3.03% -- 4.81%
CLASS P(6) 12.78% -- -- 4.54%
</Table>
(1) Reflects the deduction of the maximum sales charge of 4.75%.
(2) Performance for the unmanaged index does not reflect transaction costs,
management fees or sales charges. The performance of the index is not
necessarily representative of the Fund's performance.
(3) Class A shares were first offered on September 30, 1988. Total return, which
is the percent change in value, after deduction of the maximum sales charge of
4.75% applicable to Class A shares, with all dividends and distributions
reinvested for the periods shown ending December 31, 2003 using the SEC-required
uniform method to compute such return.
(4) Class B shares were first offered on August 1, 1996. Performance reflects
the deduction of a CDSC of 4% for 1 year and 0% for 5 years and life of the
class.
(5) Class C shares were first offered on July 15,1996. The 1% CDSC for Class C
shares normally applies before the first anniversary of the purchase date.
Performance is at net asset value.
(6) Class P shares were first offered on March 4, 1999. Performance is at net
asset value.
6
<Page>
SCHEDULE OF INVESTMENTS
GLOBAL EQUITY FUND DECEMBER 31, 2003
<Table>
<Caption>
U.S. $
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCK 97.80%
CHINA 2.08%
China Life Insurance
Co. ADR*^ 411 $ 14
China Petroleum &
Chemical 2,898,000 1,297
------------
TOTAL 1,311
------------
FINLAND 1.31%
Nokia Oyj 47,800 827
------------
FRANCE 5.77%
Axa 44,600 955
BNP Paribas S.A. 16,250 1,023
Casino Guichard Perrachon^ 8,750 851
Credit Agricole S.A. 33,700 805
------------
TOTAL 3,634
------------
GERMANY 1.42%
Metro AG 20,300 896
------------
HONG KONG 1.13%
Sun Hung Kai Properties 86,250 714
------------
IRELAND 1.29%
Bank of Ireland 59,800 815
------------
ITALY 1.71%
ENI S.P.A.^ 56,900 1,074
------------
JAPAN 6.46%
Advantest Corp. 8,100 643
Canon, Inc. 20,815 969
Fast Retailing Co. Ltd. 12,500 759
Oriental Land Co. Ltd.^ 13,600 839
Toyota Motor Corp. 25,500 861
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TOTAL 4,071
------------
NETHERLANDS 1.55%
Royal Dutch Petroleum Co. 18,500 $ 975
------------
NEW ZEALAND 1.50%
Telecom Corp. of
New Zealand Ltd.^ 267,300 942
------------
SOUTH KOREA 1.93%
SK Telecom Co. Ltd. ADR^ 65,000 1,212
------------
SPAIN 4.67%
ACS, Actividades Cons. Y Serv. 20,000 976
Banco Santander Central
Hispano S.A.^ 85,500 1,013
Telefonica S.A. 64,600 948
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TOTAL 2,937
------------
SWEDEN 1.26%
Hennes & Mauritz AB -
B Shares 33,444 795
------------
SWITZERLAND 2.92%
Adecco S.A. 14,200 913
UBS AG-Registered 13,500 924
------------
TOTAL 1,837
------------
UNITED KINGDOM 16.08%
Astrazeneca plc 18,300 878
Barclays plc 100,100 893
BP plc 140,000 1,135
Compass Group plc 147,160 1,001
GlaxoSmithKline plc 45,000 1,031
HSBC Holdings plc 61,800 971
Reckitt Benckiser plc 44,900 1,016
Royal Bank of Scotland
Group plc 28,200 831
Smith & Nephew plc 131,200 1,102
Vodafone Group plc 512,000 1,270
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TOTAL 10,128
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL EQUITY FUND DECEMBER 31, 2003
<Table>
<Caption>
U.S. $
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------
UNITED STATES 46.72%
Advance PCS* 17,400 $ 916
Amgen, Inc.* 14,200 878
Bank of America Corp. 12,300 989
Bed Bath & Beyond, Inc.* 18,200 789
Cardinal Health, Inc. 13,750 841
Citigroup, Inc. 17,800 864
Clear Channel Comm., Inc. 16,800 787
Dell, Inc.* 29,100 988
eBay, Inc.* 13,800 891
Entergy Corp. 14,500 828
Exxon Mobil Corp. 20,500 840
First Data Corp. 24,000 986
Fortune Brands, Inc. 16,300 1,165
Gannett Co., Inc. 9,700 865
General Growth Properties, Inc. 47,700 1,324
Getty Images, Inc.* 21,600 1,083
Gilead Sciences, Inc.* 13,500 785
Intel Corp. 35,340 1,138
InterActiveCorp.* 26,350 894
ITT Industries, Inc. 11,800 876
Leapfrog Enterprises, Inc.*^ 23,400 621
Medco Health Solutions, Inc.* 1,393 47
Mercury Interactive Corp.* 21,700 1,056
Microsoft Corp. 32,000 881
Molex, Inc. 25,600 893
North Fork Bancorp, Inc. 22,200 899
Pfizer, Inc. 25,400 897
Pitney Bowes, Inc. 19,460 791
Starbucks Corp.* 31,000 1,025
Target Corp. 22,600 868
Varian Medical Systems Inc.* 11,900 822
Wachovia Corp. 24,300 1,132
Wal-Mart Stores, Inc. 14,350 761
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TOTAL 29,420
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TOTAL COMMON STOCKS
(Cost $51,328,828) 61,588
============
SHORT-TERM INVESTMENTS 9.30%
COLLATERAL FOR SECURITIES ON LOAN 8.72%
State Street Navigator Securities
Lending Prime Portfolio,
1.07%(a) 5,492 $ 5,492
------------
<Caption>
PRINCIPAL
AMOUNT
(000)
---------
REPURCHASE AGREEMENT 0.58%
Repurchase Agreement
dated 12/31/2003,
0.80% due 1/2/2004
with State Street Bank
& Trust Co. collateralized
by $370,000 of Federal
National Mortgage Assoc.
at 1.72% due 3/24/2005;
value: $372,187;
proceeds: $364,812 $ 365 365
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TOTAL SHORT-TERM INVESTMENTS
(Cost $5,856,355) 5,857
============
TOTAL INVESTMENTS 107.10%
(Cost $57,185,183) $ 67,445
============
</Table>
* Non-income producing security.
^ Security (or a portion of security) on loan.
See Note 5.
ADR - American Depository Receipt.
(a) Rate shown reflects 7 day yield as of December 31, 2003.
SEE NOTES TO FINANCIAL STATEMENTS.
8
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SCHEDULE OF INVESTMENTS (CONCLUDED)
GLOBAL EQUITY FUND DECEMBER 31, 2003
<Table>
SECURITIES PRESENTED BY INDUSTRY (UNAUDITED):
Advertising 1.72%
Apparel Retail 2.47%
Application Software 1.68%
Automobile Manufacturers 1.37%
Banks 13.45%
Biotechnology 2.64%
Broadcasting & Cable TV 1.25%
Computer Hardware 1.57%
Construction & Engineering 1.55%
Data Processing &
Outsourced Services 1.57%
Diversified Capital Markets 1.47%
Diversified Financial Services 1.37%
Electric Utilities 1.31%
Electronic Equipment
& Instruments 1.42%
Employment Services 1.45%
Food Retail 1.35%
General Merchandise Stores 1.38%
Health Care Distribution
& Services 1.33%
Health Care Equipment 1.31%
Health Care Services 1.53%
Health Care Supplies 1.75%
Household Products 1.61%
Housewares & Specialties 1.85%
Hypermarkets & Super Centers 2.63%
Industrial Machinery 1.39%
Integrated Oil & Gas 8.45%
Integrated Telecommunication 3.00%
Internet Retail 2.83%
Leisure Facilities 1.33%
Leisure Products 0.99%
Life & Health Insurance 0.02%
Multi-Line Insurance 1.52%
Office Electronics 1.54%
Office Services & Supplies 1.26%
Pharmaceuticals 4.46%
Publishing & Printing 1.37%
Real Estate Investment Trusts 2.10%
Real Estate Managment &
Development 1.13%
Regional Banks 1.43%
Restaurants 3.22%
Semiconductor &
Semiconductor Equipment 1.81%
Semiconductor Equipment 1.02%
Short-Term Investments 9.30%
Specialty Stores 1.25%
Systems Software 1.40%
Telecommunications Equipment 1.31%
Wireless Telecommunication
Services 3.94%
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TOTAL 107.10%
--------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
SCHEDULE OF INVESTMENTS
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
IN LOCAL
INTEREST MATURITY CURRENCY US $
INVESTMENTS RATE DATE (000) VALUE
- ---------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 105.57%
FOREIGN BONDS 58.99%
AUSTRALIA 0.21%
Australian Government(a) 7.50% 7/15/2005 AUD 177 $ 137,613
--------------
BRAZIL 0.19%
Tele Norte Leste Part ADR+ 8.00% 12/18/2013 USD 125 123,438
--------------
BULGARIA 0.26%
Republic of Bulgaria+ 8.25% 1/15/2015 USD 150 176,625
--------------
CANADA 1.17%
Government of Canada(a) 5.50% 6/1/2010 CAD 577 477,268
Shaw Communications, Inc.(a) 7.50% 11/20/2013 CAD 200 156,545
Telus Corp. 8.00% 6/1/2011 USD 130 152,269
--------------
TOTAL 786,082
--------------
DENMARK 0.46%
Kingdom of Denmark(a) 4.00% 8/15/2008 DKK 1,800 309,422
--------------
FRANCE 1.80%
France Telecom 9.75% 3/1/2031 USD 185 246,650
French Treasury Note(a) 4.50% 7/12/2006 EUR 735 965,278
--------------
TOTAL 1,211,928
--------------
GERMANY 14.47%
Bundes Obligation(a) 4.25% 2/15/2008 EUR 1,633 2,125,702
Bundes Obligation(a) 5.00% 2/17/2006 EUR 1,410 1,865,088
Bundesrepub. Deutschland(a) 4.75% 7/4/2028 EUR 39 47,935
Bundesrepub. Deutschland(a) 5.25% 1/4/2011 EUR 969 1,317,246
Deutschland Republic(a) 5.25% 7/4/2010 EUR 2,386 3,237,789
Kredit Wiederauf(a) 5.625% 11/27/2007 EUR 835 1,135,626
--------------
TOTAL 9,729,386
--------------
GREECE 0.58%
Hellenic Republic(a) 5.25% 5/18/2012 EUR 290 390,594
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
IN LOCAL
INTEREST MATURITY CURRENCY US $
INVESTMENTS RATE DATE (000) VALUE
- ---------------------------------------------------------------------------------------------------------------
IRELAND 0.41%
Eircom Funding^ 8.25% 8/15/2013 USD 250 $ 278,125
--------------
ITALY 2.51%
Buoni Poliennali Del Tes(a) 6.00% 5/1/2031 EUR 1,175 1,687,002
--------------
JAPAN 12.52%
European Investment Bank(a) 3.00% 9/20/2006 JPY 186,000 1,869,932
Japan - 190 (10 Year Issue)(a) 2.90% 12/20/2006 JPY 172,000 1,730,602
Japan - 199 (10 Year Issue)(a) 2.20% 12/20/2007 JPY 73,000 729,311
Japan - 58 (20 Year Issue)(a) 1.90% 9/20/2022 JPY 36,000 342,977
Japan Finance Corp. for
Municipal Enterprises(a) 1.55% 2/21/2012 JPY 191,000 1,831,502
Japan Govt 10-YR(a) 1.60% 3/21/2011 JPY 196,950 1,912,786
--------------
TOTAL 8,417,110
--------------
LUXEMBOURG 0.26%
Telecom Italia Capital+ 5.25% 11/15/2013 USD 125 125,536
Telecom Italia Capital+ 6.375% 11/15/2033 USD 50 50,483
--------------
TOTAL 176,019
--------------
MEXICO 1.11%
United Mexican States 6.375% 1/16/2013 USD 290 301,600
United Mexican States+(a) 7.50% 3/8/2010 EUR 315 442,196
--------------
TOTAL 743,796
--------------
NETHERLANDS 9.73%
Deutsche Telekom Fin 9.25% 6/1/2032 USD 49 67,482
Netherlands Government(a) 3.00% 7/15/2006 EUR 3,000 3,796,269
Netherlands Government(a) 5.75% 2/15/2007 EUR 1,969 2,678,747
--------------
TOTAL 6,542,498
--------------
OTHER 1.10%
European Investment Bank(a) 2.125% 9/20/2007 JPY 74,000 736,272
--------------
PANAMA 0.17%
Republic of Panama 9.625% 2/8/2011 USD 100 116,000
--------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
IN LOCAL
INTEREST MATURITY CURRENCY US $
INVESTMENTS RATE DATE (000) VALUE
- ---------------------------------------------------------------------------------------------------------------
ROMANIA 0.58%
Romania(a) 10.625% 6/27/2008 EUR 250 $ 387,634
--------------
RUSSIA 0.46%
Russian Federation+ 5.00%# 3/31/2030 USD 319 308,632
--------------
SPAIN 5.44%
Spanish Government(a) 6.00% 1/31/2008 EUR 2,633 3,657,094
--------------
SWEDEN 1.37%
Swedish Government(a) 8.00% 8/15/2007 SEK 5,825 922,702
--------------
UNITED KINGDOM 3.94%
European Investment Bank(a) 6.25% 12/7/2008 GBP 657 1,241,907
United Kingdom Treasury(a) 4.00% 3/7/2009 GBP 117 203,609
United Kingdom Treasury(a) 6.00% 12/7/2028 GBP 300 639,750
United Kingdom Treasury(a) 9.00% 7/12/2011 GBP 249 565,846
--------------
TOTAL 2,651,112
--------------
VENEZUELA 0.25%
Republic of Venezuela+^ 10.75% 9/19/2013 USD 150 160,875
--------------
TOTAL FOREIGN BONDS (Cost $33,351,379) 39,649,959
==============
UNITED STATES BONDS 46.58%
AES Corp.+ 8.75% 5/15/2013 USD 150 168,375
Agco Corp. 8.50% 3/15/2006 USD 15 15,075
Airgas, Inc. 7.75% 9/15/2006 USD 125 131,875
AK Steel Corp.^ 7.875% 2/15/2009 USD 40 35,300
Altria Group, Inc. 7.00% 11/4/2013 USD 31 33,130
American Airlines 8.608% 4/1/2011 USD 35 31,895
American Express Credit 1999-2 A 5.95% 12/15/2006 USD 600 610,913
American Standard, Inc. 7.625% 2/15/2010 USD 120 136,800
AOL Time Warner, Inc. 7.625% 4/15/2031 USD 75 86,856
AT&T Corp. 8.75% 11/15/2031 USD 30 35,178
AT&T Wireless Services, Inc. 8.75% 3/1/2031 USD 30 37,146
Bowater, Inc.^ 6.50% 6/15/2013 USD 100 97,219
Browning Ferris Industries Inc. 6.375% 1/15/2008 USD 85 84,788
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
IN LOCAL
INTEREST MATURITY CURRENCY US $
INVESTMENTS RATE DATE (000) VALUE
- ---------------------------------------------------------------------------------------------------------------
Caesar's Entertainment Inc. 7.50% 9/1/2009 USD 155 $ 171,275
Charter Communications Hldgs.^ 10.00% 4/1/2009 USD 90 80,550
Chesapeake Energy Corp. 8.375% 11/1/2008 USD 90 99,450
Cincinnati Bell, Inc.+ 8.375% 1/15/2014 USD 60 64,800
Citibank Credit Card Master 1999-1 A 5.50% 2/15/2006 USD 625 628,675
Constellation Energy Group 4.55% 6/15/2015 USD 113 104,105
Corning Glass 7.00% 3/15/2007 USD 160 160,800
Corn Products Int'l., Inc. 8.45% 8/15/2009 USD 125 140,313
Couche-Tard+ 7.50% 12/15/2013 USD 40 42,100
Credit Suisse First Boston 1998-C2 A1 5.96% 11/11/2030 USD 798 848,279
CRH America, Inc. 6.95% 3/15/2012 USD 125 141,252
Dean Foods Co. 8.15% 8/1/2007 USD 90 99,900
Dillards, Inc.^ 6.43% 8/1/2004 USD 85 86,488
Discover Card Master Trust I
2001-5 A 5.30% 11/16/2006 USD 300 304,565
Dow Chemical Co. 5.97% 1/15/2009 USD 127 136,775
DRS Tech, Inc.+ 6.875% 11/1/2013 USD 85 87,763
Dun & Bradstreet Corp. 6.625% 3/15/2006 USD 237 254,137
Echostar DBS Corp.+ 6.375% 10/1/2011 USD 150 154,500
Enterprise Products Operating 7.50% 2/1/2011 USD 180 201,432
Federal Gold Home Loan Mortgage 4.50% TBA USD 490 490,000
Federal Gold Home Loan Mortgage 5.50% TBA USD 1,295 1,341,944
Federal Gold Home Loan Mortgage 6.00% TBA USD 1,165 1,203,955
Federal Home Loan Mortgage Corp.(a) 4.75% 1/15/2013 EUR 151 194,500
Federal Home Loan Mortgage Corp. C54792 7.00% 7/1/2031 USD 211 223,119
Federal Home Loan Mortgage Corp. E90346 6.00% 6/1/2017 USD 84 88,609
Federal Home Loan Mortgage Corp. E96458 5.00% 5/1/2018 USD 1,359 1,386,591
Federal National Mortgage Assoc. 4.75% 2/21/2013 USD 2,410 2,377,041
Federal National Mortgage Assoc. 5.50% TBA USD 2,085 2,112,366
Federal National Mortgage Assoc. 6.125% 3/15/2012 USD 540 602,421
Federal National Mortgage Assoc. 6.50% TBA USD 400 417,000
Federal National Mortgage Assoc. 6.625% 11/15/2030 USD 674 768,822
Federal National Mortgage Assoc. 7.25% 1/15/2010 USD 775 914,894
Federal National Mortgage Assoc. 20218 6.75% 3/1/2005 USD -(b) 143
Federal National Mortgage Assoc. 404304 6.50% 2/1/2028 USD 693 725,903
Federal National Mortgage Assoc. 694125 6.50% 1/1/2033 USD 687 718,738
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
IN LOCAL
INTEREST MATURITY CURRENCY US $
INVESTMENTS RATE DATE (000) VALUE
- ---------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assoc. 753420 5.50% 11/1/2033 USD 640 $ 648,858
First USA Credit Card MT 1999-3 A 1.25%# 12/19/2006 USD 375 375,298
FMC Corp. 6.75% 5/5/2005 USD 105 107,100
Ford Credit Auto Owner Trust 2000-G B 6.92% 4/15/2005 USD 340 342,514
Ford Motor Credit Corp. 6.875% 2/1/2006 USD 1,045 1,115,877
Fort James Corp. 6.875% 9/15/2007 USD 110 116,600
General Electric Capital Corp. 6.75% 3/15/2032 USD 120 133,296
General Electric Co. 5.00% 2/1/2013 USD 75 75,987
GMAC Mortgage Corp. 8.00% 11/1/2031 USD 185 208,369
Harrah's Operating Co., Inc. 8.00% 2/1/2011 USD 85 99,985
Houghton Mifflin Co. 8.25% 2/1/2011 USD 85 91,375
Household Finance Corp. 6.375% 10/15/2011 USD 125 137,861
Household Finance Corp. 7.625% 5/17/2032 USD 70 84,910
Insight Midwest^ 10.50% 11/1/2010 USD 55 60,087
Int'l. Flavors & Frag., Inc. 6.45% 5/15/2006 USD 275 298,834
Jones Intercable 8.875% 4/1/2007 USD 60 62,252
Kansas City Power & Light Co. 7.125% 12/15/2005 USD 500 544,879
Key Energy Services, Inc. 6.375% 5/1/2013 USD 40 40,800
KFW Int'l. Finance(a) 6.00% 12/7/2028 GBP 162 328,387
Lincoln National Corp. 6.20% 12/15/2011 USD 125 136,592
MBNA Master Credit Card Trust 1995-A A 1.433%# 1/16/2007 USD 330 330,567
Morgan Stanley 6.75% 4/15/2011 USD 160 181,291
Niagara Mohawk Holdings, Inc. 5.375% 10/1/2004 USD 90 92,476
NRG Energy, Inc.+ 8.00% 12/15/2013 USD 225 237,656
Pemex Project Funding Master Tr.+(a) 6.25% 8/5/2013 EUR 300 378,794
Pfizer, Inc.(a) 0.80% 3/18/2008 JPY 175,000 1,647,608
Quest Diagnostics, Inc. 7.50% 7/12/2011 USD 125 145,595
Republic of Brazil, Federal 9.25% 10/22/2010 USD 195 210,600
Residential Asset Sec. Corp. 1997-KS3 AI6 6.90% 8/25/2027 USD 44 43,598
Saks, Inc. 7.50% 12/1/2010 USD 90 98,100
Scholastic Corp. 5.75% 1/15/2007 USD 150 160,831
Semco Energy, Inc.(d) 7.125% 5/15/2008 USD 100 104,625
Sonat, Inc. 7.625% 7/15/2011 USD 48 44,700
The Goldman Sachs Group, Inc. 6.125% 2/15/2033 USD 25 25,262
The Goldman Sachs Group, Inc. 6.60% 1/15/2012 USD 60 67,158
The Goldman Sachs Group, Inc. 6.875% 1/15/2011 USD 180 204,699
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT
IN LOCAL
INTEREST MATURITY CURRENCY US $
INVESTMENTS RATE DATE (000) VALUE
- ---------------------------------------------------------------------------------------------------------------
Titan Corp.+ 8.00% 5/15/2011 USD 90 $ 102,600
Triton PCS, Inc. 8.50% 6/1/2013 USD 85 91,800
TRW Automotive, Inc. 9.375% 2/15/2013 USD 65 74,587
U.S. Treasury Bond 5.25% 2/15/2029 USD 556 561,082
U.S. Treasury Inflation Index Bond(c) 3.00% 7/15/2012 USD 608 662,697
U.S. Treasury Note 2.125% 10/31/2004 USD 100 100,809
U.S. Treasury Note 5.625% 5/15/2008 USD 200 221,609
U.S. Treasury Note 6.50% 2/15/2010 USD 380 441,691
U.S. Treasury Strips Zero Coupon 8/15/2020 USD 1,182 488,278
Verizon Global Funding Corp. 7.25% 12/1/2010 USD 170 196,061
Viacom, Inc. 5.50% 5/15/2033 USD 45 42,054
Waste Management, Inc. 7.10% 8/1/2026 USD 78 84,644
Waste Management, Inc. 7.375% 8/1/2010 USD 155 179,345
Westinghouse Air Brake Co.+ 6.875% 7/31/2013 USD 100 104,125
Westvaco Corp. 8.20% 1/15/2030 USD 38 44,683
Weyerhaeuser Co. 7.375% 3/15/2032 USD 50 54,534
--------------
TOTAL UNITED STATES BONDS (Cost $30,229,775) 31,311,775
==============
TOTAL LONG-TERM INVESTMENTS (Cost $63,581,154) 70,961,734
==============
<Caption>
SHARES
(000)
------
SHORT-TERM INVESTMENTS 1.11%
Collateral for Securities on Loan 1.11%
State Street Navigator Securities
Lending Prime Portfolio, 1.07%(e)
(Cost $746,950) USD 747 746,950
--------------
TOTAL INVESTMENTS 106.68% (Cost $64,328,104) $ 71,708,684
==============
</Table>
+ Restricted security under Rule 144A.
^ All (or a portion) of security on loan. See note 5.
# Variable rate security. The interest rate represents the rate at December
31, 2003.
(a) Investment in non-U.S. dollar denominated securities (55.91% of total
investments). The remaining securities (44.09% of total investments) are
invested in U.S. dollar denominated securities.
(b) Amount represents less than $1,000 principal.
(c) Principal amount is adjusted periodically for inflation.
(d) Private placement.
(e) Rate shown reflects 7 day yield as of December 31, 2003.
TBA To be announced. Security purchased on a forward commitment basis with an
approximate principal and maturity date. Actual principal and maturity will
be determined upon settlement when the specific mortgage pools are
assigned.
AUD Australian Dollar
CAD Canadian Dollar
DKK Danish Krone
EUR Euro
GBP British Pound
JPY Japanese Yen
SEK Swedish Krona
USD U.S. Dollar
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
GLOBAL INCOME FUND DECEMBER 31, 2003
<Table>
SECURITIES PRESENTED BY INDUSTRY (UNAUDITED):
Aerospace/Defense 0.28%
Airlines 0.05%
Asset Backed 1.36%
Auto Loans 0.51%
Auto Parts & Equipment 0.11%
Banking 2.78%
Brokerage 0.27%
Building & Construction 0.21%
Building Materials 0.20%
Chemicals 0.56%
Consumer-Products 0.44%
Electric-Generation 0.60%
Electric-Integrated 1.06%
Energy - Exploration
& Production 0.71%
Environmental 0.52%
Food - Wholesale 0.36%
Food & Drug Retailers 0.06%
Foreign Sovereign 33.42%
Forestry/Paper 0.47%
Gaming 0.40%
Gas Distribution 0.07%
Government Guaranteed 5.15%
Health Services 2.67%
Integrated Energy 0.45%
Investments & Misc Financial
Services 21.43%
Machinery 0.18%
Media - Cable 0.53%
Media - Diversified 0.13%
Media - Services 0.23%
Mortgage Backed 14.64%
Non-Electric Utilities 0.16%
Non-Food & Drug Retailers 0.27%
Oil Field Equipment & Services 0.06%
Printing & Publishing 0.38%
Short-Term Investment 1.11%
Sovereign 11.82%
Steel Producers/Products 0.05%
Supranational 1.10%
Telecom - Fixed Line 0.37%
Telecom - Integrated/Services 0.97%
Telecom - Wireless 0.19%
Telecommunications Equipment 0.24%
Theaters & Entertainment 0.06%
Tobacco 0.05%
--------
TOTAL 106.68%
--------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
SCHEDULE OF INVESTMENTS (CONCLUDED)
GLOBAL INCOME FUND DECEMBER 31, 2003
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AS OF DECEMBER 31, 2003:
<Table>
<Caption>
FORWARD U.S. $ COST U.S. $
FOREIGN CURRENCY EXPIRATION FOREIGN ON ORIGINATION CURRENT UNREALIZED UNREALIZED
PURCHASE CONTRACTS DATE CURRENCY DATE VALUE APPRECIATION DEPRECIATION
- ------------------ ---------- ---------- -------------- ----------- ------------ ------------
EUR 4/5/2004 750,000 $ 873,675 $ 943,529 $ 69,854 $ -
THB 1/16/2004 40,650,000 1,000,000 1,025,932 25,932 -
-------------- ----------- ------------ ------------
Total Forward Foreign Currency
Purchase Contracts $ 1,873,675 $ 1,969,461 $ 95,786 $ -
============== =========== ============ ============
</Table>
<Table>
<Caption>
FORWARD U.S. $ COST U.S. $
FOREIGN CURRENCY EXPIRATION FOREIGN ON ORIGINATION CURRENT UNREALIZED UNREALIZED
SALE CONTRACTS DATE CURRENCY DATE VALUE APPRECIATION DEPRECIATION
- ------------------ ---------- ---------- -------------- ----------- ------------ ------------
EUR 4/5/2004 750,000 $ 864,300 $ 943,529 $ - $ 79,229
THB 1/16/2004 40,650,000 1,012,201 1,025,932 - 13,731
-------------- ----------- ------------ ------------
Total Forward Foreign Currency
Sale Contracts $ 1,876,501 $ 1,969,461 $ - $ 92,960
============== =========== ============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2003
<Table>
<Caption>
GLOBAL GLOBAL
EQUITY FUND INCOME FUND
ASSETS:
Investment in securities, at cost $ 57,185,183 $ 64,328,104
- --------------------------------------------------------------------------------
Investment in securities, at value $ 67,444,685 $ 71,708,684
Foreign cash, at value (cost $1,277,602 and
$1,189,303, respectively) 1,318,887 1,213,026
Receivables:
Interest and dividends 87,495 1,326,351
Investment securities sold 899,092 -
Capital shares sold 163,789 91,364
Forward foreign currency exchange
contracts appreciation - 95,786
Prepaid expenses and other assets 3,444 399
- --------------------------------------------------------------------------------
TOTAL ASSETS 69,917,392 74,435,610
- --------------------------------------------------------------------------------
LIABILITIES:
Payable upon return of securities on loan 5,491,559 746,950
Payables:
Investment securities purchased 1,197,528 5,789,363
Capital shares reacquired 72,501 116,353
Management fees 38,162 28,017
12b-1 distribution fees 26,332 32,734
Fund administration 2,051 2,249
Directors' fees 28,765 54,139
To bank - 105,372
Forward foreign currency exchange contracts
depreciation - 92,960
Dividends payable - 168,058
Accrued expenses and other liabilities 88,552 78,517
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 6,945,450 7,214,712
================================================================================
NET ASSETS $ 62,971,942 $ 67,220,898
================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 64,793,520 $ 70,920,410
Undistributed net investment income 63,233 1,000,291
Accumulated net realized loss on investments,
futures contracts and foreign currency
related transactions (12,186,549) (12,214,977)
Net unrealized appreciation on investments
and translation of assets and liabilities
denominated in foreign currencies 10,301,738 7,515,174
- --------------------------------------------------------------------------------
NET ASSETS $ 62,971,942 $ 67,220,898
================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 52,827,647 $ 56,385,862
Class B Shares $ 6,033,553 $ 3,718,766
Class C Shares $ 4,110,742 $ 5,212,304
Class P Shares - $ 1,903,966
OUTSTANDING SHARES BY CLASS:
Class A Shares 5,024,597 7,586,827
Class B Shares 597,394 499,311
Class C Shares 406,476 699,906
Class P Shares - 257,770
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE (NET ASSETS DIVIDED BY OUTSTANDING
SHARES):
Class A Shares-Net asset value $ 10.51 $ 7.43
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 5.75%
and 4.75%, respectively) $ 11.15 $ 7.80
Class B Shares-Net asset value $ 10.10 $ 7.45
Class C Shares-Net asset value $ 10.11 $ 7.45
Class P Shares-Net asset value - $ 7.39
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 2003
<Table>
<Caption>
GLOBAL GLOBAL
EQUITY FUND INCOME FUND
INVESTMENT INCOME:
Dividends $ 939,148 $ -
Interest and other 276,783 2,451,493
Securities lending-net 18,244 746
Foreign withholding tax (55,263) (5,792)
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,178,912 2,446,447
- --------------------------------------------------------------------------------
EXPENSES:
Management fees 367,444 323,180
12b-1 distribution plan-Class A 139,538 201,193
12b-1 distribution plan-Class B 49,127 35,410
12b-1 distribution plan-Class C 30,475 39,950
12b-1 distribution plan-Class P - 7,016
Shareholder servicing 283,544 132,413
Market data 1,082 1,236
Professional 38,781 44,986
Reports to shareholders 24,628 36,843
Fund administration 19,656 26,080
Custody 15,290 23,261
Directors' fees 1,515 1,553
Registration 39,062 52,806
- --------------------------------------------------------------------------------
Gross expenses 1,010,142 925,927
Expense reductions (467) (688)
- --------------------------------------------------------------------------------
NET EXPENSES 1,009,675 925,239
NET INVESTMENT INCOME 169,237 1,521,208
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments and foreign
currency related transactions 42,937 3,652,218
Net change in unrealized
appreciation/depreciation on investments
and translation of assets and liabilities
denominated in foreign currencies 11,618,358 2,529,292
================================================================================
NET REALIZED AND UNREALIZED GAIN 11,661,295 6,181,510
================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 11,830,532 $ 7,702,718
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE YEAR ENDED
DECEMBER 31, 2003
-------------------------------
GLOBAL GLOBAL
EQUITY FUND INCOME FUND
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 169,237 $ 1,521,208
Net realized gain on investments and foreign
currency related transactions 42,937 3,652,218
Net change in unrealized
appreciation/depreciation on investments and
translation of assets and liabilities
denominated in foreign currencies 11,618,358 2,529,292
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 11,830,532 7,702,718
================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (85,217) (2,661,889)
Class B - (147,508)
Class C - (174,027)
Class P - (76,223)
================================================================================
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (85,217) (3,059,647)
================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 20,725,470 16,224,299
Reinvestment of distributions 81,162 2,443,699
Cost of shares reacquired (13,748,707) (18,421,931)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS 7,057,925 246,067
================================================================================
Net increase in net assets 18,803,240 4,889,138
================================================================================
NET ASSETS:
Beginning of year 44,168,702 62,331,760
- --------------------------------------------------------------------------------
END OF YEAR $ 62,971,942 $ 67,220,898
================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 63,233 $ 1,000,291
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE YEAR ENDED
DECEMBER 31, 2002
-------------------------------
GLOBAL GLOBAL
EQUITY FUND INCOME FUND
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 109,538 $ 1,754,843
Net realized loss on investments, futures
contracts and foreign currency related
transaction (7,613,223) (35,548)
Net change in unrealized
appreciation/depreciation on investments
and translation of assets and liabilities
denominated in foreign currencies (1,357,869) 6,133,197
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (8,861,554) 7,852,492
================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (126,911) (1,975,221)
Class B - (67,909)
Class C - (81,891)
Class P - (43,835)
Paid-in capital
Class A - (856,981)
Class B - (29,464)
Class C - (35,529)
Class P - (19,019)
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (126,911) (3,109,849)
================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 24,423,505 15,838,843
Reinvestment of distributions 120,282 2,406,368
Cost of shares reacquired (25,232,326) (17,302,170)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS (688,539) 943,041
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (9,677,004) 5,685,684
================================================================================
NET ASSETS
Beginning of year 53,845,706 56,646,076
- --------------------------------------------------------------------------------
END OF YEAR $ 44,168,702 $ 62,331,760
================================================================================
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME $ (29,262) $ (204,304)
================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
FINANCIAL HIGHLIGHTS
GLOBAL EQUITY FUND
<Table>
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 8.33 $ 10.02 $ 12.98 $ 13.82 $ 12.29
========== ========== ========== ========== ==========
Investment operations
Net investment income (loss)(a) .04 .03 (.02) (.05) (.09)
Net realized and unrealized gain (loss) 2.16 (1.69) (2.94) .65 1.62
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.20 (1.66) (2.96) .60 1.53
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (.02) (.03) - - -
Net realized gain - - - (1.44) -
---------- ---------- ---------- ---------- ----------
Total distributions (.02) (.03) - (1.44) -
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 10.51 $ 8.33 $ 10.02 $ 12.98 $ 13.82
========== ========== ========== ========== ==========
Total Return(b) 26.38% (16.58)% (22.80)% 4.78% 12.37%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 1.95% 2.29% 1.99% 1.78% 1.94%
Expenses, excluding expense reductions 1.95% 2.29% 2.01% 1.79% 1.94%
Net investment income (loss) .45% .30% (.19)% (.34)% (.77)%
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 52,828 $ 37,555 $ 47,016 $ 64,288 $ 66,975
Portfolio turnover rate 56.26% 43.52% 97.27% 41.21% 78.74%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
GLOBAL EQUITY FUND
<Table>
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 8.04 $ 9.70 $ 12.65 $ 13.60 $ 12.18
========== ========== ========== ========== ==========
Investment operations
Net investment loss(a) (.02) (.03) (.09) (.14) (.17)
Net realized and unrealized gain (loss) 2.08 (1.63) (2.86) .63 1.59
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.06 (1.66) (2.95) .49 1.42
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net realized gain - - - (1.44) -
---------- ---------- ---------- ---------- ----------
Total distributions - - - (1.44) -
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 10.10 $ 8.04 $ 9.70 $ 12.65 $ 13.60
========== ========== ========== ========== ==========
Total Return(b) 25.62% (17.11)% (23.32)% 4.12% 11.49%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 2.61% 2.92% 2.62% 2.40% 2.57%
Expenses, excluding expense reductions 2.61% 2.92% 2.64% 2.41% 2.57%
Net investment loss (.21)% (.33)% (.82)% (.92)% (1.42)%
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 6,033 $ 4,208 $ 4,568 $ 5,615 $ 3,686
Portfolio turnover rate 56.26% 43.52% 97.27% 41.21% 78.74%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
GLOBAL EQUITY FUND
<Table>
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 8.06 $ 9.73 $ 12.69 $ 13.63 $ 12.20
========== ========== ========== ========== ==========
Investment operations
Net investment loss(a) (.02) (.03) (.08) (.14) (.17)
Net realized and unrealized gain (loss) 2.07 (1.64) (2.88) .64 1.60
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.05 (1.67) (2.96) .50 1.43
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net realized gain - - - (1.44) -
---------- ---------- ---------- ---------- ----------
Total distributions - - - (1.44) -
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 10.11 $ 8.06 $ 9.73 $ 12.69 $ 13.63
========== ========== ========== ========== ==========
Total Return(b) 25.59% (17.16)% (23.33)% 4.19% 11.56%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 2.61% 2.92% 2.62% 2.40% 2.57%
Expenses, excluding expense reductions 2.61% 2.92% 2.64% 2.41% 2.57%
Net investment loss (.29)% (.33)% (.78)% (.94)% (1.44)%
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 4,111 $ 2,406 $ 2,262 $ 3,027 $ 2,305
Portfolio turnover rate 56.26% 43.52% 97.27% 41.21% 78.74%
===================================================================================================================
</Table>
(a) Calculated using average shares outstanding during the year.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<Page>
FINANCIAL HIGHLIGHTS
GLOBAL INCOME FUND
<Table>
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 6.91 $ 6.35 $ 6.65 $ 7.16 $ 8.44
========== ========== ========== ========== ==========
Investment operations
Net investment income(a) .18 .20 .25(e) .23 .47
Net realized and unrealized gain (loss) .68 .72 (.12) (.25) (1.26)
---------- ---------- ---------- ---------- ----------
Total from investment operations .86 .92 .13 (.02) (.79)
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (.34) (.25) (.40) - (.39)
Paid-in capital - (.11) (.03) (.49) (.10)
---------- ---------- ---------- ---------- ----------
Total distributions (.34) (.36) (.43) (.49) (.49)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 7.43 $ 6.91 $ 6.35 $ 6.65 $ 7.16
========== ========== ========== ========== ==========
Total Return(b) 12.79% 14.90% 1.87% (.03)% (9.47)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 1.35% 1.44% 1.25% 1.25% 1.24%
Expenses, excluding expense reductions 1.35% 1.44% 1.29% 1.31% 1.24%
Net investment income 2.43% 3.09% 3.85% 3.42% 6.08%
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 56,386 $ 55,419 $ 52,449 $ 62,592 $ 86,015
Portfolio turnover rate 239.18% 216.16% 393.95% 406.50% 314.07%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
GLOBAL INCOME FUND
<Table>
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 6.92 $ 6.37 $ 6.67 $ 7.17 $ 8.44
========== ========== ========== ========== ==========
Investment operations
Net investment income(a) .13 .16 .21(e) .19 .43
Net realized and unrealized gain (loss) .70 .71 (.12) (.25) (1.26)
---------- ---------- ---------- ---------- ----------
Total from investment operations .83 .87 .09 (.06) (.83)
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (.30) (.22) (.36) - (.35)
Paid-in capital - (.10) (.03) (.44) (.09)
---------- ---------- ---------- ---------- ----------
Total distributions (.30) (.32) (.39) (.44) (.44)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 7.45 $ 6.92 $ 6.37 $ 6.67 $ 7.17
========== ========== ========== ========== ==========
Total Return(b) 12.22% 14.04% 1.28% (.44)% (10.11)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 1.99% 2.06% 1.88% 1.86% 1.89%
Expenses, excluding expense reductions 1.99% 2.06% 1.92% 1.92% 1.89%
Net investment income 1.79% 2.42% 3.20% 2.79% 5.57%
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 3,719 $ 2,842 $ 1,519 $ 1,317 $ 1,508
Portfolio turnover rate 239.18% 216.16% 393.95% 406.50% 314.07%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
GLOBAL INCOME FUND
<Table>
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF YEAR $ 6.92 $ 6.37 $ 6.66 $ 7.17 $ 8.44
========== ========== ========== ========== ==========
Investment operations
Net investment income(a) .13 .17 .21(e) .19 .43
Net realized and unrealized gain (loss) .70 .71 (.11) (.26) (1.26)
---------- ---------- ---------- ---------- ----------
Total from investment operations .83 .88 .10 (.07) (.83)
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (.30) (.23) (.36) - (.35)
Paid-in capital - (.10) (.03) (.44) (.09)
---------- ---------- ---------- ---------- ----------
Total distributions (.30) (.33) (.39) (.44) (.44)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 7.45 $ 6.92 $ 6.37 $ 6.66 $ 7.17
========== ========== ========== ========== ==========
Total Return(b) 12.29% 14.19% 1.34% (.73)% (9.98)%
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 1.99% 1.94% 1.84% 1.90% 1.88%
Expenses, excluding expense reductions 1.99% 1.94% 1.88% 1.96% 1.88%
Net investment income 1.79% 2.56% 3.23% 2.77% 5.42%
<Caption>
YEAR ENDED 12/31
----------------------------------------------------------------
SUPPLEMENTAL DATA: 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $ 5,212 $ 2,989 $ 2,152 $ 1,852 $ 2,696
Portfolio turnover rate 239.18% 216.16% 393.95% 406.50% 314.07%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
GLOBAL INCOME FUND
<Table>
<Caption>
YEAR ENDED 12/31 3/4/1999(c)
--------------------------------------------------- TO
2003 2002 2001 2000 12/31/1999
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.87 $ 6.32 $ 6.62 $ 7.16 $ 7.91
========== ========== ========== ========== ==========
Investment operations
Net investment income(a) .17 .20 .24(e) .22 .42
Net realized and unrealized gain (loss) .69 .71 (.11) (.28) (.85)
---------- ---------- ---------- ---------- ----------
Total from investment operations .86 .91 .13 (.06) (.43)
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (.34) (.25) (.40) - (.25)
Paid-in capital - (.11) (.03) (.48) (.07)
---------- ---------- ---------- ---------- ----------
Total distributions (.34) (.36) (.43) (.48) (.32)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 7.39 $ 6.87 $ 6.32 $ 6.62 $ 7.16
========== ========== ========== ========== ==========
Total Return(b) 12.78% 14.82% 1.84% (.57)% (5.51)%(d)
RATIOS TO AVERAGE NET ASSETS
Expenses, including expense reductions 1.44% 1.51% 1.33% 1.31% 1.25%(d)
Expenses, excluding expense reductions 1.44% 1.51% 1.37% 1.37% 1.25%(d)
Net investment income 2.34% 2.96% 3.69% 3.34% 5.66%(d)
<Caption>
YEAR ENDED 12/31 3/4/1999(c)
--------------------------------------------------- TO
SUPPLEMENTAL DATA: 2003 2002 2001 2000 12/31/1999
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 1,904 $ 1,082 $ 526 $ 229 $ 210
Portfolio turnover rate 239.18% 216.16% 393.95% 406.50% 314.07%
===================================================================================================================
</Table>
(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) Commencement of offering of class shares.
(d) Not annualized.
(e) Interest expense is less than $.01.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<Page>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Lord Abbett Global Fund, Inc. (the "Company") is registered under the Investment
Company Act of 1940 (the "Act") as an open-end management investment company,
incorporated under Maryland law on February 23, 1988. The Company consists of
the following two portfolios ("Funds") and their respective classes: Equity
Series ("Global Equity Fund"), Class A, B, C, and P shares; and Income Series
("Global Income Fund"), Class A, B, C, and P shares. As of the date of this
report, no P shares have been issued for Global Equity Fund. Global Equity Fund
is diversified as defined under the Act. Global Income Fund is non-diversified.
Global Equity Fund's investment objective is long-term growth of capital and
income consistent with reasonable risk. The production of current income is a
secondary consideration. Global Income Fund's investment objective is high
current income consistent with reasonable risk. Capital appreciation is a
secondary consideration. Each class of shares has different expenses and
dividends. A front-end sales charge is normally added to the NAV for Class A
shares. There is no front-end sales charge in the case of the Class B, C, and P
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 purchase 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 an 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
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. Fixed income securities are valued at the mean
between the bid and asked prices on the basis of prices supplied by
independent pricing services, which reflect broker/dealer supplied
valuations and electronic data processing techniques. Futures contracts are
valued at the last sale price in the market where they are principally
traded. If no sale has occurred, the mean between the most recently quoted
bid and asked prices is used. 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 Directors. 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.
29
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(c) INVESTMENT INCOME-Dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Discounts are accreted and
premiums are amortized using the effective interest method. Investment
income is allocated to each class of shares based upon the relative
proportion of net assets at the beginning of the day.
(d) FEDERAL TAXES-It is the policy of each 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 incurred by the Company that do not specifically relate to
an individual Fund are allocated to the Funds within the Company on a pro
rata basis. 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) FOREIGN TRANSACTIONS-The books and records of the Funds are maintained in
U.S. dollars and transactions denominated in foreign currencies are recorded
in the Funds' records at the rate prevailing when earned or recorded. Asset
and liability accounts that are denominated in foreign currencies are
adjusted to reflect current exchange rates. The resultant exchange gains and
losses are included as net realized gain (loss) on investments, futures
contracts and foreign currency related transactions on the Statements of
Operations. The Funds do not isolate that portion of the results of
operations arising as a result of changes in the foreign exchange rates from
the changes in market prices of the securities.
(g) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS-The Funds may enter into forward
foreign currency exchange contracts in order to reduce their exposure to
changes in foreign currency exchange rates on their foreign portfolio
holdings and to lock in the U.S. dollar cost of firm purchase and sale
commitments for securities denominated in foreign currencies. Global Income
Fund also may use these transactions as an efficient way to gain exposure to
short-term interest rates in a particular country instead of investing in
securities denominated in the country's currency. A forward foreign currency
exchange contract is a commitment to purchase or sell a foreign currency at
a future date at a negotiated rate. The contracts are valued daily at
forward exchange rates and any unrealized gain or loss is included in net
unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies on the Statements
of Operations. The gain or loss arising from the difference between the U.S.
dollar cost of the original contract and the value of the foreign currency
in U.S. dollars upon closing of such contracts is included in net realized
gain or loss on investments, futures contracts and foreign currency related
transactions on the Statements of Operations.
(h) FUTURES CONTRACTS-Futures contracts are marked to market daily and the
variation margin is recorded as an unrealized gain or loss. When a contract
is closed, a realized gain or loss is recorded equal to the difference
between the opening and closing value of the contract. Generally, open
futures contracts are marked to market for federal income tax purposes at
fiscal year-end. As of December 31, 2003, there are no open futures
contracts.
(i) SECURITIES LENDING-Each Fund may lend its securities to member banks of the
Federal Reserve System and to registered broker/dealers approved by the
Company. The loans are collateralized at all times by cash and/or U.S.
Treasury securities in an amount at least equal
30
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
to 102% of the market value of the domestic securities loaned (105% in the
case of foreign securities loaned) as determined at the close of business on
the preceding business day. The dividend and interest income earned on the
securities loaned is accounted for in the same manner as other dividend and
interest income. Lending portfolio securities could result in a loss or
delay in recovering the Fund's securities if the borrower defaults.
(j) REPURCHASE AGREEMENTS-Each Fund may enter into repurchase agreements with
respect to securities. A repurchase agreement is a transaction in which a
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. Each Fund requires at all times that the 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 these 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 Company has a management agreement with Lord, Abbett & Co. LLC ("Lord
Abbett") pursuant to which Lord Abbett supplies the Company 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 Company's investment portfolios.
The management fee is based on average daily net assets at the following annual
rates:
<Table>
- -------------------------------
Global Equity Fund .75%
Global Income Fund .50%
</Table>
Lord Abbett provides certain administrative services to each Fund pursuant to an
Administrative Services Agreement at an annual rate of .04% of each Fund's
average daily net assets.
12b-1 DISTRIBUTION PLANS
Each 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) .75% .75% .25%
</Table>
(1) In addition, each Fund pays a one-time distribution fee of up to 1% on
certain qualifying purchases, which is generally amortized over a two-year
period. Global Equity Fund and Global Income Fund collected $8,670 and
$15,125 respectively, of CDSCs during the year.
31
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
COMMISSIONS
Distributor received the following commissions on sales of Class A shares of the
Funds after concessions were paid to authorized dealers for the year ended
December 31, 2003:
<Table>
<Caption>
DISTRIBUTOR DEALERS'
COMMISSIONS CONCESSIONS
- --------------------------------------------------------------------------------
Global Equity Fund $ 29,708 $ 161,426
Global Income Fund 14,917 75,603
</Table>
One Director and certain of the Company's officers have an interest in Lord
Abbett.
4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS
Dividends from net investment income, if any, are declared and paid
semi-annually for Global Equity Fund, and declared daily and paid monthly for
Global Income Fund. 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 amount 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 December 31, 2003
and December 31, 2002 are as follows:
<Table>
<Caption>
GLOBAL EQUITY FUND GLOBAL INCOME FUND
- -------------------------------------------------------------------------------------------------------
12/31/2003 12/31/2002 12/31/2003 12/31/2002
- -------------------------------------------------------------------------------------------------------
Distributions paid from:
Ordinary Income $ 85,217 $ 126,911 $ 3,059,647 $ 2,168,856
- -------------------------------------------------------------------------------------------------------
Total distributions 85,217 126,911 3,059,647 2,168,856
Tax Return of Capital - - - 940,993
- -------------------------------------------------------------------------------------------------------
Total distributions paid $ 85,217 $ 126,911 $ 3,059,647 $ 3,109,849
- -------------------------------------------------------------------------------------------------------
</Table>
As of December 31, 2003, the components of accumulated losses on a tax basis are
as follows:
<Table>
<Caption>
GLOBAL EQUITY FUND GLOBAL INCOME FUND
- -------------------------------------------------------------------------------------------------------
Undistributed ordinary income - net $ 91,998 $ 1,045,055
- -------------------------------------------------------------------------------------------------------
Total undistributed earnings $ 91,998 $ 1,045,055
Capital loss carryforwards* (12,193,916) (10,938,435)
Temporary differences (28,765) (44,764)
Unrealized gains - net 10,309,105 6,238,632
- -------------------------------------------------------------------------------------------------------
Total accumulated losses - net $ (1,821,578) $ (3,699,512)
=======================================================================================================
</Table>
* As of December 31, 2003, the capital loss carryforwards along with the related
expiration dates are as follows:
<Table>
<Caption>
2004 2005 2007 2008 2009 2010 TOTAL
- -------------------------------------------------------------------------------------------------------------------
Global Equity Fund $ - $ - $ - $ - $ 4,576,424 $ 7,617,492 $ 12,193,916
Global Income Fund 3,050,476 680,831 1,473,226 2,677,712 3,056,190 - 10,938,435
</Table>
32
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of December 31, 2003, the Funds' aggregate unrealized security gains and
losses based on cost for U.S. federal income tax purposes are as follows:
<Table>
<Caption>
GLOBAL EQUITY FUND GLOBAL INCOME FUND
- -------------------------------------------------------------------------------------------------
Tax Cost $ 57,177,816 $ 65,604,646
- -------------------------------------------------------------------------------------------------
Gross unrealized gain 11,160,996 6,179,962
Gross unrealized loss (894,127) (75,924)
- -------------------------------------------------------------------------------------------------
Net unrealized security gain (loss) 10,266,869 6,104,038
- -------------------------------------------------------------------------------------------------
</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 December 31, 2003 have been
reclassified among the components of net assets based on their tax basis
treatment as follows:
<Table>
<Caption>
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT NET REALIZED
INCOME GAIN (LOSS)
- -------------------------------------------------------------------------------------------------
Global Equity Fund $ 8,475 $ (8,475)
Global Income Fund 2,743,034 (2,743,034)
</Table>
5. PORTFOLIO SECURITIES TRANSACTIONS
As of December 31, 2003, the value of securities loaned for Global Equity Fund
and Global Income Fund is $5,290,090 and $732,254, respectively. These loans are
collateralized by cash of $5,491,559 and $746,950 which is invested in a
restricted money market account. In connection with the securities lending
program, State Street Bank and Trust Company ("SSB") received fees of $8,808 for
Global Equity Fund and $382 for Global Income Fund.
Purchases and sales of investment securities (other than short-term investments)
for the year ended December 31, 2003 are as follows:
<Table>
<Caption>
U.S. NON - U.S. U.S. NON - U.S.
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES* PURCHASES SALES* SALES
- -------------------------------------------------------------------------------------------------------
Global Equity Fund $ - $ 34,346,562 $ - $ 25,724,273
Global Income Fund 110,136,137 52,057,258 106,688,510 50,219,471
</Table>
* Includes U.S. Government sponsored enterprises securities.
6. DIRECTORS' REMUNERATION
The Company's officers and the one Director who are associated with Lord Abbett
do not receive any compensation from the Company for serving in such capacities.
Outside Directors' fees are allocated among all Lord Abbett-sponsored funds
based on the net assets of each fund. There is an equity based plan available to
all outside Directors under which outside Directors must defer receipt of a
portion of, and may elect to defer receipt of an additional portion of
Directors' fees. The deferred amounts are treated as though equivalent dollar
amounts have been invested proportionately in the funds. Such amounts and
earnings accrued thereon are included in Directors' fees on the Statements of
Operations and in Directors' fees payable on the Statements of Assets and
Liabilities and are not deductible for U.S. federal income tax purposes until
such amounts are paid.
33
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. EXPENSE REDUCTIONS
The Company has entered into arrangements with its transfer agent and custodian
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of each Fund's expenses.
8. LINE OF CREDIT
Global Equity 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 an annual rate of .09%.
As of December 31, 2003 there were no loans outstanding pursuant to this
Facility nor was the Facility utilized at any time during the year ended
December 31, 2003.
9. CUSTODIAN AND ACCOUNTING AGENT
SSB is the Company's custodian and accounting agent. SSB performs custodian,
accounting and recordkeeping functions relating to portfolio transactions and
calculating each Fund's net asset value.
10. INVESTMENT RISKS
Global Equity Fund is subject to the general risks and considerations associated
with equity investing. 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 Global Equity Fund invests. Although certain
companies in which Global Equity Fund may invest may exhibit earnings and
revenue growth above the market trend, the stocks of these companies may be more
volatile and may drop in value if earnings and revenue growth do not meet
expectations.
Global Income Fund is subject to the general risks and considerations associated
with investing in fixed income securities. The value of an investment will
change as interest rates fluctuate and in response to market movements. When
interest rates rise, the prices of fixed income securities are likely to
decline; when rates fall, such prices tend to rise. Longer-term securities are
usually more sensitive to interest rate changes. The mortgage-related securities
in which Global Income Fund may invest, including those of such government
sponsored enterprises as Federal Home Loan Mortgage Corporation and Federal
National Mortgage Association, may be particularly sensitive to changes in
prevailing interest rates due to prepayment risk. There is also the risk that an
issuer of a fixed income security will fail to make timely payments of principal
or interest to Global Income Fund, a risk that is greater with high yield
securities (sometimes called "lower rated debt securities" or "junk bonds") in
which Global Income Fund may invest. Some issuers, particularly of high yield
securities, may default as to principal and/or interest payments after Global
Income Fund purchases its securities. A default, or concerns in the market about
an increase in risk of default, may result in losses to the Fund. High yield
securities are subject to greater price fluctuations, as well as additional
risks.
Both Funds are subject to the risks of investing in securities that are issued
by non-U.S. entities. Foreign securities may pose greater risks than domestic
securities, including less liquidity which may subject them to greater price
fluctuation, less government regulation, and higher
34
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
transaction costs. Foreign investments also may be affected by changes in
currency rates or currency controls and political risks. With respect to foreign
currency transactions in which the Funds may engage, there is no guarantee that
these transactions will be successful. They may lower a Fund's return or result
in significant losses. These factors can affect Fund performance.
11. SUMMARY OF CAPITAL TRANSACTIONS
Global Equity Fund has authorized 500 million shares of $.001 par value capital
stock designated as follows: 445 million Class A shares, 15 million Class B
shares, 20 million Class C shares and 20 million Class P shares. As of December
31, 2003 no Class P shares have been issued. Global Income Fund has authorized
500 million shares of $.001 par value capital stock designated as follows: 430
million Class A shares, 30 million Class B shares, 20 million Class C shares and
20 million Class P shares.
<Table>
<Caption>
YEAR ENDED YEAR ENDED
GLOBAL EQUITY FUND DECEMBER 31, 2003 DECEMBER 31, 2002
- -------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------
Shares sold 1,847,467 $ 17,227,079 2,404,973 $ 21,183,545
Reinvestment of distributions 7,926 81,162 14,457 120,282
Shares reacquired (1,341,247) (11,889,867) (2,602,124) (23,018,468)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) 514,146 $ 5,418,374 (182,694) $ (1,714,641)
- -------------------------------------------------------------------------------------------------------
CLASS B SHARES
- -------------------------------------------------------------------------------------------------------
Shares sold 209,706 $ 1,851,658 211,399 $ 1,877,400
Reinvestment of distributions - - - -
Shares reacquired (135,772) (1,186,100) (158,712) (1,435,612)
- -------------------------------------------------------------------------------------------------------
Increase 73,934 $ 665,558 52,687 $ 441,788
- -------------------------------------------------------------------------------------------------------
CLASS C SHARES
- -------------------------------------------------------------------------------------------------------
Shares sold 183,026 $ 1,646,733 153,514 $ 1,362,560
Reinvestment of distributions - - - -
Shares reacquired (75,083) (672,740) (87,550) (778,246)
- -------------------------------------------------------------------------------------------------------
Increase 107,943 $ 973,993 65,964 $ 584,314
- -------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED YEAR ENDED
GLOBAL INCOME FUND DECEMBER 31, 2003 DECEMBER 31, 2002
- -------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------
Shares sold 1,170,464 $ 8,359,557 1,391,680 $ 9,212,989
Reinvestment of distributions 307,572 2,190,320 343,765 2,231,517
Shares reacquired (1,915,454) (13,622,012) (1,968,507) (12,805,863)
- -------------------------------------------------------------------------------------------------------
Decrease (437,418) $ (3,072,135) (233,062) $ (1,361,357)
- -------------------------------------------------------------------------------------------------------
CLASS B SHARES
- -------------------------------------------------------------------------------------------------------
Shares sold 461,706 $ 3,273,220 240,848 $ 1,598,843
Reinvestment of distributions 17,910 128,030 12,951 84,709
Shares reacquired (390,810) (2,741,178) (81,973) (540,521)
- -------------------------------------------------------------------------------------------------------
Increase 88,806 $ 660,072 171,826 $ 1,143,031
- -------------------------------------------------------------------------------------------------------
</Table>
35
<Page>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
<Table>
<Caption>
YEAR ENDED YEAR ENDED
GLOBAL INCOME FUND DECEMBER 31, 2003 DECEMBER 31, 2002
- -------------------------------------------------------------------------------------------------------
CLASS C SHARES SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------
Shares sold 406,649 $ 2,925,997 177,323 $ 1,185,301
Reinvestment of distributions 17,506 125,347 13,797 90,140
Shares reacquired (155,874) (1,105,614) (97,329) (635,613)
- -------------------------------------------------------------------------------------------------------
Increase 268,281 $ 1,945,730 93,791 $ 639,828
- -------------------------------------------------------------------------------------------------------
CLASS P SHARES
- -------------------------------------------------------------------------------------------------------
Shares sold 234,202 $ 1,665,525 582,512 $ 3,841,710
Reinvestment of distributions -(a) 2 -(a) 2
Shares reacquired (134,029) (953,127) (508,138) (3,320,173)
- -------------------------------------------------------------------------------------------------------
Increase 100,173 $ 712,400 74,374 $ 521,539
- -------------------------------------------------------------------------------------------------------
</Table>
(a) Amount represents less than 1 share
12. SUBSEQUENT EVENT
Effective January 1, 2004, a redemption fee of 2.00% of the NAV of the shares
being redeemed will be charged on redemptions or exchanges of shares of Global
Equity Fund held ten business days or less, other than shares acquired through
the reinvestment of dividends or other distributions or certain automatic or
systematic investment, exchange or withdrawal plans. The redemption fee is
retained by the Fund and is intended to discourage short-term investment in the
Fund in order to avoid transaction and other expenses caused by short-term
investments, and to facilitate implementation of the Fund's portfolio management
strategies and techniques.
36
<Page>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
LORD ABBETT GLOBAL FUND, INC.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of Lord Abbett Global Fund, Inc. - Equity Series
and Income Series (the "Funds") as of December 31, 2003, and the related
statements 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 Funds' 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 December 31, 2003 by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. 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 positions of Lord
Abbett Global Fund, Inc. - Equity Series and Income Series as of December 31,
2003, the results of their operations for the year then ended, the changes in
their 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
February 20, 2004
37
<Page>
BASIC INFORMATION ABOUT MANAGEMENT
The Board of Directors (the "Board") is responsible for the management of the
business and affairs of the Company in accordance with the laws of the State of
Maryland. The Board appoints officers who are responsible for the day-to-day
operations of the Company and who execute policies authorized by the Board. The
Board also approves an investment adviser to each Fund and continues to monitor
the cost and quality of the services provided by the investment adviser, and
annually considers whether to renew the contract with the adviser. Generally,
each Director holds office until his/her successor is elected and qualified or
until his/her earlier resignation or removal, as provided in the Company's
organizational documents.
Lord, Abbett & Co. LLC ("Lord Abbett"), a Delaware limited liability company, is
the Company's investment adviser.
INTERESTED DIRECTOR
The following Director is the Managing Partner of Lord Abbett and is an
"interested person" as defined in the Act. Mr. Dow is also an officer, director,
or trustee of each of the fourteen Lord Abbett-sponsored funds, which consist of
49 portfolios or series.
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH COMPANY DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Director since 1995; Managing Partner and Chief N/A
Lord, Abbett & Co. LLC Chairman since 1996 Investment Officer of Lord
90 Hudson Street Abbett since 1996.
Jersey City, NJ
Date of Birth: 3/8/1945
</Table>
-------------------------
INDEPENDENT DIRECTORS
The following independent or outside Directors are also directors or trustees of
each of the fourteen Lord Abbett-sponsored funds, which consist of 49 portfolios
or series.
<Table>
CURRENT POSITION
NAME,ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH COMPANY DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
E. THAYER BIGELOW Director since 1994 Managing General Partner, Currently serves as
Bigelow Media, LLC Bigelow Media, LLC director of Adelphia
41 Madison Ave., (since 2000); Senior Adviser, Communications,
Suite 3810 Time Warner Inc. Inc., Crane Co., and
New York, NY (1998 - 2000); Acting Chief Huttig Building
Date of Birth: 10/22/1941 Executive Officer of Products Inc.
Courtroom Television
Network (1997 - 1998);
President and Chief
Executive Officer of Time
Warner Cable Programming,
Inc. (1991 - 1997).
</Table>
38
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH COMPANY DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
WILLIAM H.T. BUSH Director since 1998 Co-founder and Chairman Currently serves as
Bush-O'Donnell & Co., of the Board of the financial director of Wellpoint
Inc. advisory firm of Health Networks, Inc.,
101 South Hanley Road, Bush-O'Donnell & Company DT Industries Inc., and
Suite 1025 (since 1986). Engineered Support
St. Louis, MO Systems, Inc.
Date of Birth: 7/14/1938
ROBERT B. CALHOUN, JR. Director since 1998 Managing Director of Currently serves as
Monitor Clipper Partners Monitor Clipper Partners director of Avondale,
650 Madison Ave., 9th Fl. (since 1997) and President Inc. and Interstate
New York, NY of Clipper Asset Management Bakeries Corp.
Date of Birth: 10/25/1942 Corp. (since 1991), both
private equity investment
funds.
JULIE A. HILL Director Elected Owner and CEO of the Currently serves as
20 Via Diamante February 2004 Hillsdale Companies, a director of Wellpoint
Newport Coast, CA business consulting firm Health Networks, Inc.;
Date of Birth: 7/16/1946 (1997 - present); Founder, Resources Connection
President and Owner of the Inc.; Holcim (US) Inc.
Hiram-Hill and Hillsdale (parent company
Development Companies Holcim Ltd).
from 1998 to 2001.
FRANKLIN W. HOBBS Director since 2000 Senior Advisor (since April Currently serves as
Houlihan Lokey Howard 2003) and Former Chief director of Adolph
& Zukin Executive Officer of Coors Company.
685 Third Ave. Houlihan Lokey Howard &
New York, NY Zukin, an investment bank
Date of Birth: 7/30/1947 (January 2002 - April 2003);
Chairman of Warburg Dillon
Read (1999 - 2001); Global
Head of Corporate Finance
of SBC Warburg Dillon Read
(1997 - 1999); Chief
Executive Officer of Dillon,
Read & Co. (1994 - 1997).
C. ALAN MacDONALD Director since 1988; Retired - General Business Currently serves as
415 Round Hill Road and Lead Independent and Governance Consulting director of Lincoln
Greenwich, CT Director (since 1992); formerly Snacks, H.J. Baker, and
Date of Birth: 5/19/1933 President and CEO of Nestle Seix Fund, Inc.*
Foods.
THOMAS J. NEFF Director since 1988 Chairman of Spencer Stuart, Currently serves as
Spencer Stuart an executive search director of Ace, Ltd.
277 Park Avenue consulting firm (since 1996); and Exult, Inc.
New York, NY President of Spencer Stuart
Date of Birth: 10/2/1937 (1979 - 1996).
</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 Company's Chairman, CEO,
and President and the Managing Partner of Lord Abbett.
39
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH COMPANY DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
JAMES F. ORR, III Director since 2002; President and CEO of Currently serves as
80 Pinckney Street resigned 3/3/2003 LandingPoint Capital (since Chairman of
Boston, MA 2002); Chairman and CEO of Rockefeller
Date of Birth: 3/5/1943 United Asset Management Foundation, Director
Corporation (2000 to 2001); of Nashua Corp. and
Chairman and CEO of UNUM SteelPoint
Provident Corporation Technologies.
(1999 - merger); Chairman
and CEO of UNUM
Corporation (1988 - 1999).
</Table>
-------------------------
OFFICERS
None of the officers listed below have received compensation from the Company.
All the officers of the Company may also be officers of the other Lord
Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ
07302.
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH COMPANY OF CURRENT POSITION DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Chief Executive Elected in 1995 Managing Partner and
(3/8/1945) Officer and President Chief Investment
Officer of Lord Abbett
since 1996.
ZANE E. BROWN Executive Vice Elected in 1993 Partner and Director
(12/09/1951) President of Fixed Income
Management, joined
Lord Abbett in 1992.
ROBERT I. GERBER Executive Vice Elected in 2001 Partner and Director
(5/29/1954) President of Taxable Fixed
Income Management,
joined Lord Abbett
in 1997.
ROBERT G. MORRIS Executive Vice Elected in 1995 Partner and Director
(11/6/1944) President of Equity Investments,
joined Lord Abbett
in 1991.
ELI M. SALZMANN Executive Vice To be Elected in Partner and Director
(3/23/1964) President March 2004 of Institutional Equity
Investments, joined
Lord Abbett in 1997.
</Table>
40
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH COMPANY OF CURRENT POSITION DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
HAROLD SHARON Executive Vice Elected 2003 Investment Manager
(9/23/1960) President and Director,
International Core
Equity, joined Lord
Abbett in 2003,
formerly Financial
Industry Consultant
for Venture Capitalist
from 2001 to 2003,
prior thereto
Managing Director of
Warburg Pincus Asset
Management and
Credit Suisse Asset
Management.
TRACIE E. AHERN Vice President and Elected in 1999 Partner and Director
(1/12/1968) Treasurer of Portfolio
Accounting and
Operations, joined
Lord Abbett in 1999,
prior thereto Vice
President - Head of
Fund Administration
of Morgan Grenfell.
JOAN A. BINSTOCK Chief Financial Elected in 1999 Partner and Chief
(3/4/1954) Officer and Vice Operations Officer,
President joined Lord Abbett in
1999, prior thereto
Chief Operating
Officer of Morgan
Grenfell.
DANIEL E. CARPER Vice President Elected in 1988 Partner, joined Lord
(1/22/1952) Abbett in 1979.
PAUL A. HILSTAD Vice President and Elected in 1995 Partner and General
(12/13/1942) Secretary Counsel, joined Lord
Abbett in 1995.
LAWRENCE H. KAPLAN Vice President and Elected in 1997 Partner and Deputy
(1/16/1957) Assistant Secretary General Counsel, joined
Lord Abbett in 1997.
JERALD LANZOTTI Vice President Elected in 1997 Fixed Income
(6/12/1967) Investment Manager,
joined Lord Abbett in
1996.
A. EDWARD OBERHAUS, III Vice President Elected in 1996 Partner and Manager of
(12/21/1959) Equity Trading, joined
Lord Abbett in 1983.
</Table>
41
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONCLUDED)
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH COMPANY OF CURRENT POSITION DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
CHRISTINA T. SIMMONS Vice President and Elected in /2001 Assistant General
(11/12/1957) Assistant Secretary Counsel, joined Lord
Abbett in 1999,
formerly Assistant
General Counsel of
Prudential
Investments from
1998 to 1999, prior
thereto Counsel of
Drinker, Biddle &
Reath LLP, a law firm.
BERNARD J. GRZELAK Assistant Treasurer Elected in 2003 Director of Fund
(6/12/1971) Administration, joined
Lord Abbett in 2003,
formerly Vice
President, Lazard Asset
Management from
2000 to 2003, prior
thereto Manager of
Deloitte & Touche LLP.
</Table>
Please call 888-522-2388 for a copy of the Statement of Additional Information
(SAI), which contains further information about the Company's Directors. It is
available free upon request.
42
<Page>
HOUSEHOLDING
The Company has adopted a policy that allows it to send only one copy of the
Funds' 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, by calling 888-522-2388 or on Lord Abbett's web site at
www.LordAbbett.com.
TAX INFORMATION
All of the ordinary income distribution paid by Global Equity Fund during
2003 is qualifying dividend income. For corporate shareholders, all of Global
Equity Fund ordinary income distribution qualified for the dividends received
deduction.
43
<Page>
[LORD ABBETT 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 Global Fund, Inc.
Equity Series
Lord Abbett Mutual Fund shares are distributed by: Income Series
LORD ABBETT DISTRIBUTOR LLC LAGF-2-1203
90 Hudson Street - Jersey City, New Jersey 07302-3973 (2/04)
</Table>
<Page>
ITEM 2: Code of Ethics.
(a) In accordance with applicable requirements, the Registrant adopted a
Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the
principal executive officer and senior financial officers of the
Registrant ("Code of Ethics"). The Code of Ethics was in effect from
June 19, 2003 through the end of the reporting period on December
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 Directors has determined that the
following independent Directors who comprise the audit committee are
audit committee financial experts: E. Thayer Bigelow, Robert B.
Calhoun, and Franklin W. Hobbs. Ms. Julie Hill is a newly elected
member of the audit committee. Each audit committee member is
independent within the meaning of the Form N-CSR.
ITEM 4. Principal Accountant Fees and Services
In response to sections (a), (b), (c) and (d) of Item 4, the
aggregate fees billed to the Registrant for the fiscal years ended
December 31, 2003 and 2002 by the Registrant's principal accounting
firm, Deloitte & Touche LLP, the member firms of Deloitte Touche
Tohmatsu and their respective affiliates (collectively, "Deloitte")
were as follows:
<Page>
<Table>
<Caption>
FISCAL YEAR ENDED:
2003 2002
Audit Fees {a} $ 70,000 $ 65,000
Audit-Related Fees {b} 32 42
-----------------------------------------------------------
Total audit and audit-related fees 70,032 65,042
-----------------------------------------------------------
Tax Fees {c} 14,132 12,500
All Other Fees {d} 48 -
-----------------------------------------------------------
Total Fees $ 84,212 $ 77,542
-----------------------------------------------------------
</Table>
----------
{a} Consists of fees for audits of the Registrant's annual financial
statements.
{b} Consists of the Registrant's proportionate share of fees for
performing certain agreed-upon procedures regarding compliance with
the provisions of Rule 17a-7 of the Investment Company Act of 1940
and related Board approved procedures.
{c} Fees for the fiscal year ended December 31, 2003 consist of fees
of $14,100 for preparing the U.S. Income Tax Return for Regulated
Investment Companies, New Jersey Corporation Business Tax Return,
New Jersey Annual Report Form, U.S. Return of Excise Tax on
Undistributed Income of Investment Companies, fees of $32 for
preparing IRS Forms 1099-MISC and 1096 Annual Summary and
Transmittal of U.S. Information Returns.
Fees for the fiscal year ended December 31, 2002 consist of fees for
preparing the U.S. Income Tax Return for Regulated Investment
Companies, New Jersey Corporation Business Tax Return, New Jersey
Annual Report Form, U.S. Return of Excise Tax on Undistributed
Income of Investment Companies.
{d} Consists of the Registrant's proportionate share of fees for
testing of Anti-Money Laundering Compliance.
(e) (1) Pursuant to Rule 2-01(c) (7) of Regulation S-X, the Registrant's
Audit Committee has adopted pre-approval policies and procedures. Such
policies and procedures generally provide that the Audit Committee must
pre-approve:
- any audit, audit-related, tax, and other services to be
provided to the Lord Abbett Funds, including the Registrant,
and
- any audit-related, tax, and other services to be provided to
the Registrant's investment adviser and any entity controlling,
controlled by or under common control with the investment
adviser that provides ongoing services to one or more Funds
comprising the Registrant if the engagement relates directly to
operations and financial reporting of a Fund,
by the independent auditor to assure that the provision of such services
does not impair the auditor's independence.
<Page>
The Audit Committee has delegated pre-approval authority to its Chairman,
subject to a fee limit of $10,000 per event, and not to exceed $25,000
annually. The Chairman will report any pre-approval decisions to the Audit
Committee at its next scheduled meeting. Unless a type of service to be
provided by the independent auditor has received general pre-approval, it
must be pre-approved by the Audit Committee. Any proposed services
exceeding pre-approved cost levels will require specific pre-approval by
the Audit Committee.
(e)(2) The Registrant's Audit Committee has approved 100% of the services
described in this Item 4 (b) through (d).
(f) Not Applicable.
(g) The aggregate non-audit fees billed by Deloitte for services rendered
to the Registrant are shown above in the response to Item 4 (a), (b), (c)
and (d) as "All Other Fees".
The aggregate non-audit fees billed by Deloitte for services rendered to
the Registrant's investment adviser, Lord, Abbett & Co. LLC ("Lord
Abbett"), for the fiscal years ended December 31, 2003 and 2002 were:
<Table>
<Caption>
FISCAL YEAR ENDED:
2003 2002
All Other Fees {a} $ 96,900 $ 171,456
</Table>
--------
{a} Fees for the fiscal year ended December 31, 2003 consist of fees
of $76,900 for Independent Services Auditors' Report on Controls
Placed in Operation and Tests of Operating Effectiveness related to
Lord Abbett's operations and general computer controls over equity
securities processing for institutional and mutual fund accounts
("SAS 70 Report") and fees of $20,000 for special tax services for
Global Equity Series.
Fees for the fiscal year ended December 31, 2002 consist of fees of
$146,456 for testing of Business Continuity Planning and $25,000 for
the SAS 70 Report.
The aggregate non-audit fees billed by Deloitte for services rendered to
entities under the common control of Lord Abbett (i.e., Lord Abbett
Distributor LLC, the Registrant's principal underwriter) for the fiscal
years ended December 31, 2003 and 2002 were:
<Table>
<Caption>
FISCAL YEAR ENDED:
2003 2002
All Other Fees {b} $ 11,378 -0-
</Table>
--------
{b} Fees for the fiscal year ended December 31, 2003 represent fees
for testing of Anti-Money Laundering Compliance.
(h) The Registrant's Audit Committee has considered the provision of
non-audit services that were rendered to the Registrant's investment
adviser, and any entity controlling, controlled by or under common control
with the investment adviser that provides ongoing services to the
Registrant, that were not pre-approved pursuant to
<Page>
Rule 2-01 (c)(7)(ii) of Regulation S-X and has determined that the
provision of such services is compatible with maintaining Deloitte's
independence.
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.
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 GLOBAL 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 GLOBAL 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