<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-02924
LORD ABBETT U.S. GOVERNMENT & GOVERNMENT SPONSORED
ENTERPRISES MONEY MARKET FUND, INC.
-----------------------------------
(Exact name of registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
--------------
Date of fiscal year end: 6/30
----
Date of reporting period: 12/31/2004
----------
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ITEM 1: REPORT TO SHAREHOLDERS.
<Page>
[LORD ABBETT LOGO]
2004
SEMI-
ANNUAL
REPORT
LORD ABBETT
U.S. GOVERNMENT &
GOVERNMENT SPONSORED
ENTERPRISES MONEY
MARKET FUND
FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2004
<Page>
- --------------------------------------------------------------------------------
LORD ABBETT U.S. GOVERNMENT & GOVERNMENT SPONSORED ENTERPRISES MONEY MARKET FUND
SEMI-ANNUAL REPORT
FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2004
DEAR SHAREHOLDERS: We are pleased to provide you with this overview of the Lord
Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund's
(the Fund) strategies and performance for the six-month period ended December
31, 2004. On this and the following pages, we discuss the major factors that
influenced performance.
Thank you for investing in Lord Abbett Mutual Funds. We value the trust
that you place in us and look forward to serving your investment needs in the
years to come.
BEST REGARDS,
/S/ Robert S. Dow
ROBERT S. DOW
CHAIRMAN
- --------------------------------------------------------------------------------
Q. WHAT WERE THE OVERALL MARKET CONDITIONS OF THE REPORTING PERIOD?
A. As expected, the Federal Reserve Board (the Fed) began raising the fed funds
rate (the short-term rate at which banks lend to one another) in 2004. All told,
the rate increased in 0.25% increments from an extremely accommodative 1% to
2.25%. Since the Fed moves were widely anticipated, their effects were only felt
in the shortest of maturities. On the other hand, long-term rates, which reflect
inflation expectations, actually fell.
With short-term rates rising and long-term rates falling, the yield curve
(a graph that compares short-term rates to intermediate and long-term rates) is
said to have "flattened." This "flattening" occurred in the latter half of the
year as previously expected and inflation did not fully materialize.
Q. HOW DID THE FUND PERFORM OVER THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2004?
A. The Fund (Class A shares) finished the six-month period ended December 31,
2004 with total net assets of $265.4 million and a seven-day current yield of
1.3%. The current yield refers to the income generated by an investment in the
Fund over a seven-day period, which is then annualized. The yield quotation more
closely reflects the current earnings of the Fund than the one-year total return
quotation. For the six-month period ended December 31, 2004, the Fund returned
0.4%, reflecting performance at the Net Asset Value (NAV) of Class A shares with
all distributions reinvested, compared with its peer group, the Lipper U.S.
Government Money Market Funds Average,(1) which returned 0.5% in same period.
Standardized Average Annual Returns, which include the reinvestment of all
distributions as of December 31, 2004, are 1 Year: 0.48%, 5 Years: 2.03% and 10
Years: 3.36%. Class A shares purchased subject to a front-end sales charge have
no contingent deferred sales charge (CDSC). However, certain Class A shares
acquired through an exchange may be subject to a CDSC of 1% if the
1
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- --------------------------------------------------------------------------------
shares are redeemed within 12 months following the purchase without a sales
charge.
PERFORMANCE DATA QUOTED REFLECT PAST PERFORMANCE AND ARE NO GUARANTEE OF FUTURE
RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE QUOTED.
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. YOU CAN OBTAIN PERFORMANCE DATA CURRENT TO THE
MOST RECENT MONTH END BY CALLING LORD ABBETT AT 800-821-5129 OR REFERRING TO OUR
WEBSITE AT www.lordabbett.com.
Q. WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A. In general, Fund yield kept pace with short-term interest rates. Consistent
with its objective to provide current income with minimum credit risk, the
portfolio remained invested in high-quality, short-term securities issued by the
U.S. Treasury(2) and certain U.S. government agency securities. As rates rose,
the portfolio's average maturity was extended. The portfolio was concentrated in
specific areas of the money market yield curve that were expected to provide the
highest risk-adjusted yield.
THE FUND'S PORTFOLIO IS ACTIVELY MANAGED AND, THEREFORE, ITS HOLDINGS AND
WEIGHTINGS OF A PARTICULAR ISSUER OR PARTICULAR SECTOR AS A PERCENTAGE OF
PORTFOLIO ASSETS ARE SUBJECT TO CHANGE.
THE PROSPECTUS CONTAINS IMPORTANT INFORMATION ABOUT THE FUND, INCLUDING THE
FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND ONGOING EXPENSES, THAT AN
INVESTOR SHOULD CAREFULLY CONSIDER BEFORE INVESTING. TO OBTAIN A PROSPECTUS ON
THIS FUND OR ANY LORD ABBETT MUTUAL FUND, PLEASE CONTACT YOUR INVESTMENT
PROFESSIONAL OR LORD ABBETT DISTRIBUTOR LLC AT 800-874-3733 OR VISIT
www.lordabbett.com. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
(1) The Lipper U.S. Government Money Market Funds Average aims at investments in
financial instruments issued or guaranteed by the U.S. Government, its agencies
or its instrumentalities, with dollar-weighted average maturities of less than
90 days. Peer averages are based on universes of funds with similar investment
objectives. Peer group averages include reinvested dividends and capital gains,
if any, and exclude sales charges. Indices are unmanaged, do not reflect the
deduction of fees or expenses and are not available for direct investment.
Source: Lipper, Inc. (C)2004 REUTERS. All rights reserved. Any copying,
republication or redistribution of Lipper content is expressly prohibited
without the prior written consent of Lipper.
(2) Unlike U.S. Treasury Securities, an investment in the Fund is neither
insured nor guaranteed by the U.S. Government.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
The views of the Fund's management and the portfolio holdings described in this
report are as of December 31, 2004; 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: BECAUSE OF ONGOING MARKET VOLATILITY, FUND PERFORMANCE MAY BE
SUBJECT TO SUBSTANTIAL FLUCTUATION. Except where noted, comparative Fund
performance does not account for the deduction of sales charges and would be
different if sales charges 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 Fund's Prospectus.
MUTUAL FUNDS ARE NOT INSURED BY THE FDIC, ARE NOT DEPOSITS OR OTHER OBLIGATIONS
OF, OR GUARANTEED BY BANKS, AND ARE SUBJECT TO INVESTMENT RISKS INCLUDING
POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
2
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EXPENSE EXAMPLE
As a shareholder of the Fund you incur ongoing costs, including management
fees; distribution and service (12b-1) fees (currently only Class B shares have
an active 12b-1 Plan); and other Fund expenses. This Example is intended to help
you understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period (July 1, 2004 through December 31,
2004).
ACTUAL EXPENSES
For each class of the Fund, the first line of the applicable table on the
following pages provides information about actual account values and actual
expenses. You may use the information in this line, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the first line under
the heading entitled "Expenses Paid During the Period 7/1/04 - 12/31/04" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
For each class of the Fund, the second line of the applicable table on the
following pages provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
3
<Page>
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Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE PERIOD+
------------ ------------ ------------
7/1/04 -
7/1/04 12/31/04 12/31/04
------------ ------------ ------------
CLASS A^
Actual $ 1,000.00 $ 1,003.70 $ 4.50
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.87 $ 4.53
CLASS B^
Actual $ 1,000.00 $ 1,001.20 $ 6.81
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,017.09 $ 6.87
CLASS C^
Actual $ 1,000.00 $ 1,003.70 $ 4.50
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.87 $ 4.53
CLASS Y*^
Actual $ 1,000.00 $ 1,002.10 $ 3.59
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,020.87 $ 3.63
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense ratio
for such class (0.89% for Class A, 1.35% for Class B, 0.89% for Class C, and
0.71% for Class Y) multiplied by the average account value over the period,
multiplied by 184/365 (to reflect one-half year period).
* Commencement of offering of class shares was on October 19, 2004.
^ The annualized expenses of each class have been restated (0.70% for Class A,
1.45% for Class B, 0.70% for Class C, and 0.70% for Class Y). Had these restated
expenses been in place throughout the most recent fiscal half-year, expenses
paid during the period would have been:
<Table>
<Caption>
HYPOTHETICAL
(5% RETURN
ACTUAL BEFORE EXPENSES)
----------- ----------------
Class A $ 3.53 $ 3.57
Class B $ 7.31 $ 7.38
Class C $ 3.53 $ 3.57
Class Y $ 3.53 $ 3.57
</Table>
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY CREDIT RATING
DECEMBER 31, 2004
<Table>
<Caption>
CREDIT RATING %*
A-I+ 78.87%
Repurchase Agreement 21.13%
------
Total 100.00%
</Table>
* Represents percent of total investments.
4
<Page>
SCHEDULE OF INVESTMENTS (UNAUDITED)
DECEMBER 31, 2004
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT AMORTIZED
INVESTMENTS RATE DATE RATING (000) COST
- ----------------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED ENTERPRISES
SECURITIES 79.48%
Federal Home Loan Bank 2.25% 1/19/2005 A-1+ $ 20,000 $ 19,977,500
Federal Home Loan Mortgage Corp. 2.25% 1/31/2005 A-1+ 100,000 99,812,500
Federal Home Loan Mortgage Corp. 2.32% 2/23/2005 A-1+ 50,000 49,829,222
Federal National Mortgage Assoc. 2.24% 1/3/2005 A-1+ 15,000 14,998,133
Federal National Mortgage Assoc. 2.24% 2/1/2005 A-1+ 19,000 18,963,351
Federal National Mortgage Assoc. 2.25% 1/10/2005 A-1+ 40,000 39,977,500
---------------
TOTAL 243,558,206
---------------
SHORT-TERM INVESTMENT 21.30%
REPURCHASE AGREEMENT 21.30%
Repurchase agreement dated 12/31/2004,
1.80% due 1/3/2005 with State Street
Bank & Trust Co. collateralized by
$20,715,000 of Federal Home Loan Bank at
1.703% due 7/16/2018 and $45,610,000 of
Federal National Mortgage Assoc. at
1.875% due 2/15/2005; value:
$66,565,983; proceeds: $65,265,042 65,255 65,255,254
---------------
TOTAL INVESTMENTS IN SECURITIES 100.78% 308,813,460*
---------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (0.78%) (2,384,903)
---------------
NET ASSETS 100.00% $ 306,428,557
===============
</Table>
* Cost for federal income tax purposes is $308,813,460.
Average maturity of investments: 24 days.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
December 31, 2004
<Table>
ASSETS:
Investment in securities, at amortized cost $ 243,558,206
Repurchase agreement, at cost 65,255,254
Receivables:
Interest 3,263
Capital shares sold 1,191,484
From advisor 34
Prepaid expenses and other assets 31,233
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 310,039,474
- -----------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Capital shares reacquired 2,818,296
Management fee 140,787
12b-1 distribution plan-Class B 17,522
Fund administration 7,202
Directors' fees 137,038
Dividends payable 273,080
Accrued expenses and other liabilities 216,992
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,610,917
===========================================================================================================
NET ASSETS $ 306,428,557
===========================================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 306,428,298
Undistributed net investment income 259
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $ 306,428,557
===========================================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 265,440,254
Class B Shares $ 26,177,613
Class C Shares $ 10,109,528
Class Y Shares $ 4,701,162
OUTSTANDING SHARES BY CLASS:
Class A Shares (700 million shares of common stock authorized, $.001 par value) 265,440,035
Class B Shares (400 million shares of common stock authorized, $.001 par value) 26,177,594
Class C Shares (300 million shares of common stock authorized, $.001 par value) 10,109,515
Class Y Shares (100 million shares of common stock authorized, $.001 par value) 4,701,162
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (NET ASSETS DIVIDED BY
OUTSTANDING SHARES):
Class A Shares-Net asset value $ 1.00
Class B Shares-Net asset value $ 1.00
Class C Shares-Net asset value $ 1.00
Class Y Shares-Net asset value $ 1.00
===========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
STATEMENT OF OPERATIONS (UNAUDITED)
For the Six Months Ended December 31, 2004
<Table>
INVESTMENT INCOME:
Interest $ 2,984,455
EXPENSES:
Management fee 881,625
12b-1 distribution plan-Class B 153,451
Shareholder servicing 611,415
Professional 26,905
Reports to shareholders 26,525
Fund administration 72,693
Custody 7,774
Directors' fees 2,823
Registration 31,346
Other 3,862
- -----------------------------------------------------------------------------------------------------------
Gross expenses 1,818,419
Expense reductions (1,435)
Expenses assumed by advisor (59,102)
- -----------------------------------------------------------------------------------------------------------
NET EXPENSES 1,757,882
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,226,573
===========================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE
SIX MONTHS ENDED FOR THE
DECEMBER 31, 2004 YEAR ENDED
INCREASE IN NET ASSETS (UNAUDITED) JUNE 30, 2004
OPERATIONS:
Net investment income $ 1,226,573 $ 711,112
=========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,102,699) (594,550)
Class B (46,287) (79,779)
Class C (69,688) (36,783)
Class Y (7,899) --
- -----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,226,573) (711,112)
=========================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 331,107,484 812,471,629
Reinvestment of distributions 942,153 669,236
Cost of shares reacquired (389,691,351) (769,927,698)
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS (57,641,714) 43,213,167
=========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS (57,641,714) 43,213,167
=========================================================================================
NET ASSETS:
Beginning of period 364,070,271 320,857,104
- -----------------------------------------------------------------------------------------
END OF PERIOD $ 306,428,557 $ 364,070,271
=========================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 259 $ 259
=========================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2004 ----------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
PER SHARE OPERATING PERFORMANCE
(CLASS A SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
Investment operations:
Net investment income(b) -(d) -(d) .01 .01 .05 .05
Net realized gain - - - - -(d) -
----------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations -(d) -(d) .01 .01 .05 .05
----------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
net investment income -(d) -(d) (.01) (.01) (.05) (.05)
----------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
Total Return(c) .37%(e) .21% .55% 1.48% 5.02% 4.93%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including waiver and
expense reductions .46%(e) .83% .88% .86% .87% .84%
Expenses, excluding waiver and
expense reductions .46%(e) .97% .98% .87% .90% .84%
Net investment income .37%(e) .21% .56%+ 1.46%+ 4.89%+ 4.79%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2004 ----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 265,440 $ 289,336 $ 266,528 $ 227,169 $ 201,174 $ 190,817
=======================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2004 ---------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
PER SHARE OPERATING PERFORMANCE
(CLASS B SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
Investment operations:
Net investment income(b) -(d) -(d) -(d) .01 .04 .04
Net realized gain - - - - -(d) -
----------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations -(d) -(d) -(d) .01 .04 .04
----------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
net investment income -(d) -(d) -(d) (.01) (.04) (.04)
----------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
Total Return(c) .12%(e) .20% .29% .80% 4.24% 4.13%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including waiver and
expense reductions .69%(e) .83% 1.15% 1.53% 1.62% 1.59%
Expenses, excluding waiver and
expense reductions .84%(e) 1.72% 1.73% 1.62% 1.65% 1.59%
Net investment income .11%(e) .21% .29%+ .71%+ 4.14%+ 4.01%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2004 ----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 26,178 $ 47,789 $ 39,609 $ 26,000 $ 14,059 $ 8,987
=======================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2004 --------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
PER SHARE OPERATING PERFORMANCE
(CLASS C SHARES)
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
Investment operations:
Net investment income(b) -(d) -(d) .01 .01 .05 .05
Net realized gain - - - - -(d) -
----------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations -(d) -(d) .01 .01 .05 .05
----------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
net investment income -(d) -(d) (.01) (.01) (.05) (.05)
----------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
Total Return(c) .37%(e) .21% .55% 1.48% 5.02% 4.93%
RATIOS TO AVERAGE NET ASSETS:
Expenses, including waiver and
expense reductions .45%(e) .83% .88% .86% .87% .84%
Expenses, excluding waiver and
expense reductions .45%(e) .97% .98% .87% .90% .84%
Net investment income .34%(e) .21% .56%+ 1.46%+ 4.89%+ 4.78%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED 6/30
12/31/2004 ----------------------------------------------------------------
SUPPLEMENTAL DATA: (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 10,110 $ 26,945 $ 14,720 $ 10,769 $ 6,693 $ 1,929
========================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<Table>
<Caption>
10/19/2004(a)
TO
12/31/2004
(UNAUDITED)
PER SHARE OPERATING PERFORMANCE
(CLASS Y SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
==========
Investment operations:
Net investment income(b) -(d)
----------
Distributions to shareholders from
net investment income -(d)
----------
NET ASSET VALUE, END OF PERIOD $ 1.00
==========
Total Return(c) .21%(e)
RATIOS TO AVERAGE NET ASSETS:
Expenses, including waiver and expense reductions .19%(e)
Expenses, excluding waiver and expense reductions .19%(e)
Net investment income .21%(e)
</Table>
<Table>
<Caption>
10/19/2004(a)
TO
SUPPLEMENTAL DATA: 12/31/2004
- --------------------------------------------------------------------
Net assets, end of period (000) $ 4,701
====================================================================
</Table>
+ The ratios have been determined on a Fund basis.
(a) Commencement of offering of class shares.
(b) Calculated using average shares outstanding during the period.
(c) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(d) Amount is less than $.01.
(e) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market
Fund, Inc. (the "Fund"), is registered under the Investment Company Act of 1940
(the "Act") as a diversified, open-end management investment company. The Fund
was incorporated under Maryland law on May 9, 1979.
The investment objective of the Fund is to seek high current income and
preservation of capital through investments in high quality, short-term, liquid
securities.
The Fund offers four classes of shares: Classes A, B, C, and Y. There are no
front end sales charges on shares of each class, although a contingent deferred
sales charge ("CDSC") may be applied to each class of shares as follows: Class A
shares acquired through an exchange and redeemed within 24 months (12 months if
shares were purchased on or after November 1, 2004) following the purchase made
without a sales charge; Class B shares redeemed before the sixth anniversary of
purchase; Class C shares redeemed before the first anniversary of purchase.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) INVESTMENT VALUATION-The Fund values securities utilizing the amortized cost
method, which approximates market value. Under this method, all investments
purchased at a discount or premium are valued by amortizing the difference
between the original purchase price and maturity value of the issue over the
period to maturity. Securities purchased at face value are valued at cost,
which approximates market value.
(b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date that
the securities are purchased or sold (trade date). Realized gains and losses
on sales of portfolio securities are calculated using the identified-cost
method.
(c) INVESTMENT INCOME-Interest income is recorded on the accrual basis.
Investment income is allocated to each class of shares based upon the
relative proportion of net assets at the beginning of the day.
(d) FEDERAL TAXES-It is the policy of the Fund to meet the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all taxable income to its
shareholders. Therefore, no federal income tax provision is required.
(e) EXPENSES-Expenses, excluding class specific expenses, are allocated to each
class of shares based upon the relative proportion of net assets at the
beginning of the day. Class B shares bear all expenses and fees related to
the Class B 12b-1 distribution plan.
(f) REPURCHASE AGREEMENTS-The Fund may enter into repurchase agreements with
respect to securities. A repurchase agreement is a transaction in which the
Fund acquires a security and simultaneously commits to resell that security
to the seller (a bank or securities dealer) at an
13
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
agreed-upon price on an agreed-upon date. The Fund requires at all times
that the repurchase agreement be collateralized by cash, or by securities of
the U.S. Government, its agencies, its instrumentalities, or U.S. Government
sponsored enterprises having a value equal to, or in excess of, the value of
the repurchase agreement (including accrued interest). If the seller of the
agreement defaults on its obligation to repurchase the underlying securities
at a time when the value of those securities has declined, the Fund may
incur a loss upon disposition of the securities.
3. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE
The Fund has a management agreement with Lord, Abbett & Co. LLC ("Lord Abbett")
pursuant to which Lord Abbett supplies the Fund with investment management
services and executive and other personnel, pays the remuneration of officers,
provides office space and pays for ordinary and necessary office and clerical
expenses relating to research and statistical work and supervision of the Fund's
investment portfolio.
The management fee is based on average daily net assets at the following annual
rates:
First $250 million .50%
Next $250 million .45%
Over $500 million .40%
Lord Abbett provides certain administrative services to the Fund pursuant to an
Administrative Services Agreement at an annual rate of .04% of the Fund's
average daily net assets.
For the six months ended December 31, 2004, Lord Abbett voluntarily reimbursed
the Fund's expenses in the amount of $59,102.
12b-1 DISTRIBUTION PLANS
The Fund has adopted a distribution plan with respect to one or more classes of
shares pursuant to Rule 12b-1 of the Act, which provides for the payment of
ongoing distribution and service fees to Lord Abbett Distributor LLC
("Distributor"), an affiliate of Lord Abbett. The fees are accrued daily at
annual rates based upon average daily net assets as follows:
<Table>
<Caption>
FEE CLASS A(1) CLASS B CLASS C(1)
- --------------------------------------------------------------------------------
Service and distribution fee .15% .75% .25%
</Table>
(1) The Fund has not activated its Class A and Class C Plans, and therefore, no
payments are currently authorized under the Plans.
One Director and certain of the Fund's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS
Dividends from net investment income are declared daily and paid monthly.
5. DIRECTORS' REMUNERATION
The Fund's officers and the one Director who are associated with Lord Abbett do
not receive any compensation from the Fund for serving in such capacities.
Outside Directors' fees are allocated among all Lord Abbett-sponsored funds
based on the net assets of each fund. There is an equity based plan available to
all outside Directors under which outside Directors must defer receipt of
14
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
a portion of, and may elect to defer receipt of an additional portion of
Directors' fees. The deferred amounts are treated as though equivalent dollar
amounts have been invested proportionately in the funds. Such amounts and
earnings accrued thereon are included in Directors' Fees on the Statement of
Operations and in Directors' Fees Payable on the Statement of Assets and
Liabilities and are not deductible for federal income tax purposes until such
amounts are paid.
6. EXPENSE REDUCTIONS
The Fund has entered an arrangement with its transfer agent whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's expenses.
7. CUSTODIAN AND ACCOUNTING AGENT
State Street Bank and Trust Company ("SSB") is the Fund's custodian and
accounting agent. SSB performs custodian, accounting and recordkeeping functions
relating to portfolio transactions and calculating the Fund's net asset value.
8. INVESTMENT RISKS
The Fund's yield may vary in response to changes in interest rates and other
market factors.
The Fund generally invests a substantial portion of its assets in money market
securities issued by various government sponsored enterprises such as Federal
Home Loan Mortgage Corporation and Federal National Mortgage Association. Such
securities are not guaranteed by the U.S. Government, but are supported only by
the credit of the particular government sponsored enterprises involved, and the
discretionary authority of the U.S. Treasury to purchase the enterprise
obligations. There is no assurance that the U.S. Government will provide
financial support to such enterprises.
An investment in the Fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corp. or any other government agency. Although
the Fund seeks to preserve the value of an investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
These factors can affect Fund performance.
15
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONCLUDED)
9. SUMMARY OF CAPITAL TRANSACTIONS
Transactions in shares of capital stock are as follows:
<Table>
<Caption>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
DECEMBER 31, 2004 (UNAUDITED) JUNE 30, 2004
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
Shares Sold 313,360,194 $ 313,360,195 694,069,357 $ 694,069,355
Reinvestment of distributions 843,289 843,289 567,082 567,082
Shares reacquired (338,099,681) (338,099,683) (671,828,239) (671,828,242)
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) (23,896,198) $ (23,896,199) 22,808,200 $ 22,808,195
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
- ------------------------------------------------------------------------------------------------------------
Shares Sold 7,317,074 $ 7,317,073 62,895,327 $ 62,895,327
Reinvestment of distributions 40,756 40,756 71,545 71,545
Shares reacquired (28,968,990) (28,968,990) (54,786,816) (54,786,817)
- ------------------------------------------------------------------------------------------------------------
Increase (Decrease) (21,611,160) $ (21,611,161) 8,L80,056 $ 8,180,055
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
- ------------------------------------------------------------------------------------------------------------
Shares Sold 5,342,297 $ 5,342,297 55,506,947 $ 55,506,947
Reinvestment of distributions 54,107 54,107 30,609 30,609
Shares reacquired (22,231,921) (22,231,920) (43,312,638) (43,312,639)
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) (16,835,517) $ (16,835,516) 12,224,918 $ 12,224,917
- ------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
FOR PERIOD ENDED
CLASS Y SHARES DECEMBER 31, 2004*
- --------------------------------------------------------------------------
Shares Sold 5,087,919 $ 5,087,919
Reinvestment of distributions 4,001 4,001
Shares reacquired (390,758) (390,758)
- --------------------------------------------------------------------------
Increase 4,701,162 $ 4,701,162
- --------------------------------------------------------------------------
</Table>
* For the period October 19, 2004 (commencement of offering of class shares)
to December 31, 2004.
10. SUBSEQUENT EVENT
Effective January 1, 2005, Lord Abbett has contractually agreed to reimburse the
Fund to the extent necessary so that each class' total annual operating expenses
do not exceed the following annualized rates:
<Table>
<Caption>
CLASS % OF AVERAGE DAILY NET ASSETS
- ------------------------------------------
A 0.70%
B 1.45%
C 0.70%
Y 0.70%
</Table>
16
<Page>
HOUSEHOLDING
The Fund has adopted a policy that allows it to send only one copy of the Fund's
Prospectus, proxy material, annual report and semi-annual report to certain
shareholders residing at the same "household." This reduces Fund expenses, which
benefits you and other shareholders. If you need additional copies or do not
want your mailings to be "householded," please call Lord Abbett at 800-821-5129
or send a written request with your name, the name of your fund or funds and
your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336,
Kansas City, MO 64121.
SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE
The Fund is required to file its complete schedule of portfolio holdings with
the SEC for its first and third fiscal quarters on Form N-Q for fiscal quarters
ending on or after July 9, 2004. Once filed, the Fund's Form N-Q will be
available without charge, upon request, on the SEC's website at www.sec.gov and
may be available by calling Lord Abbett at 800-821-5129. You can also obtain
copies of Form N-Q by (i) visiting the SEC's Public Reference Room in
Washington, DC (information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating
fee to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii)
sending your request electronically to publicinfo@sec.gov.
17
<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 Lord Abbett U.S. Government & Government Sponsored
by a current Fund Prospectus. Enterprises Money Market Fund, Inc.
Lord Abbett Mutual Fund shares are distributed by: LAMM-3-1204
LORD ABBETT DISTRIBUTOR LLC (2/05)
</Table>
<Page>
ITEM 2: CODE OF ETHICS.
Not applicable
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable.
ITEM 10: 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 a date within 90 days prior to the filing date of
this report, the Chief Executive Officer and Chief Financial Officer
of the Registrant have concluded that such disclosure controls and
procedures are reasonably designed and effective to ensure that
material information relating to the Registrant, including its
consolidated subsidiaries, is made known to them by others within
those entities.
(b) There were no significant changes in the Registrant's internal
controls over financial reporting (as defined in Rule 30a-3(d) under
the Investment Company Act of 1940) that occurred during the
Registrant's last second fiscal quarter of the period covered by this
report that have materially
<Page>
affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 11: EXHIBITS.
ITEM 11(a): NOT APPLICABLE.ITEM 11(b):
(i) Certification of each principal executive officer and principal
financial officer of the Registrant as required by Rule 30a-2 under
the Act (17 CFR 270.30a-2) is attached hereto as a part of EX-99.CERT.
(ii) Certification of each principal executive officer and principal
financial officer of the Registrant as required by Section 906 of the
Sarbanes-Oxley Act of 2002 is attached hereto as a part of
EX-99.906CERT.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
LORD ABBETT U.S. GOVERNMENT &
GOVERNMENT SPONSORED
ENTERPRISES MONEY MARKET
FUND, INC.
/s/ Robert S. Dow
-----------------------------
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
-------------------------
Joan A. Binstock
Chief Financial Officer and Vice President
Date: February 22, 2005
<Page>
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
LORD ABBETT U.S. GOVERNMENT &
GOVERNMENT SPONSORED
ENTERPRISES MONEY MARKET
FUND, INC.
/s/ Robert S. Dow
-----------------------------
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/ Joan A. Binstock
-------------------------
Joan A. Binstock
Chief Financial Officer and Vice President
Date: February 22, 2005