<PAGE>
SUPPLEMENT DATED SEPTEMBER 28, 1995 TO THE CURRENT STATEMENT OF ADDITIONAL
INFORMATION OF LORD ABBETT AFFILIATED FUND.
This page together with the Affiliated sales piece, constitutes the entire
supplement dated September 28, 1995 to the Lord Abbett Affiliated Fund's current
statement of additional information.
<PAGE>
SEC-required uniformly computed average annual rates of total return for
Affiliated Fund at the current maximum sales charge of 5.75% for the following
periods ended 6/30/95 were:
<TABLE>
<CAPTION>
10 YEARS 5 YEARS 1 YEAR
- --------------------------------------------------------------------------------
<S> <C> <C>
+12.55% +10.89% +16.30%
</TABLE>
Past performance is no indication of future results. The investment return and
principal value of an investment will fluctuate so that shares, on any given day
or when redeemed, may be worth more or less than their original cost. Total
return is the percent change in value with all distributions reinvested. For
more complete information about Affiliated Fund (or any other Lord Abbett-
managed fund), including a description of charges and expenses, call your
financial adviser or Lord, Abbett & Co. at 800-874-3733 for a prospectus. You
should read the prospectus carefully before investing. If used after 9/30/95,
this piece must be accompanied by Lord Abbett's Performance Quarterly for the
most recently completed calendar quarter.
If You Need Two More Reasons ...
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IT'S EASY
We can automatically debit your bank checking account by a fixed-dollar amount
twice a month, monthly, every other month or quarterly. To receive information
on establishing an automatic investment plan (Invest-A-Matic), call
800-874-3733:
. For existing Lord Abbett accounts, ask for an Invest-A-Matic Instructions and
Authorization Form.
. For new accounts, ask for a prospectus. The Invest-A-Matic section is in the
application. The minimum initial investment amount for a new account is $250.
LOW INVESTMENT
AMOUNTS
. Fixed investment amounts can be as low as $50 a month.
------------------------------
Don't Put Off Paying
------------------------------
Yourself Another Day...
------------------------------
Get Started Today!
------------------------------
[LOGO OF LORD ABBETT Lord, Abbett & Co.
& CO. APPEARS HERE] Investment Management
A Tradition of Performance Through Disciplined Investing
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The GM Building * 767 Fifth Avenue * New York, NY 10153-0203 * 800-426-1130
LAC508118
(9/95)
Most People
Don't Plan
to fail...
They
Fail To Plan
-------
<PAGE>
WITH SO MANY BILLS TO PAY ...
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RENT/MORTGAGE
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TELEPHONE
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ELECTRICITY
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CAR INSURANCE
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HEAT
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LIFE INSURANCE
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TUITION
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MEDICAL
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SUBSCRIPTIONS
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CREDIT CARDS
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... HAVE YOU REMEMBERED TO PAY YOURSELF???
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Investing for your future requires discipline. The trouble is, most people put
off making regular investments -- but time has a funny way of sneaking past
quickly. Don't get caught. There's an investment strategy that involves making
regular, fixed investments for your future goals called dollar-cost averaging
that can help you discipline your investing.
WHAT IS DOLLAR-COST AVERAGING?
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It is a disciplined strategy in which you make systematic investments in the
same dollar amount regardless of whether securities markets are moving up or
down. When the share price of a mutual fund is low, the same investment dollars
will buy more shares than they will when the fund's price is higher, thereby
enabling investors to reduce their average share cost. DOLLAR-COST AVERAGING IS
AVAILABLE ON MOST LORD ABBETT-MANAGED FUNDS.
CALL YOUR FINANCIAL ADVISER
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Your financial adviser can help identify your investment needs and assess how
dollar-cost averaging, using Lord Abbett's Invest-A-Matic service, can help you.
Additionally, your financial professional can review your portfolio to see if
any additional Lord Abbett funds might be appropriate for you. For example,
investors reinvesting their dividends are seeking to grow their assets. If you
are reinvesting in a fixed-income fund, why not talk to your financial
professional about adding an equity fund? A systematic investment example using
Affiliated Fund, which seeks long-term growth of capital and income without
excessive fluctuations in market value, is illustrated below.
SYSTEMATIC INVESTING RESULTS CAN BE IMPRESSIVE
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Here's an example of investing systematically in Lord Abbett's Affiliated Fund,
one of the nation's oldest growth and income mutual funds.
In order to plan for their son's college education costs, the Johnsons started a
college fund when he was born with a $250 investment in Lord Abbett's Affiliated
Fund. Every month they invested $100 in the Fund; they reinvested all dividends
and capital gains distributions, which compounded their earnings. After 18 1/2
years, their son's college fund was worth $95,162.
12/31/76 - 6/30/95
[GRAPH APPEARS HERE]
DOLLAR-COST AVERAGING GRAPH
This graph indicates a hypothetical cumulative investment of $22,450, that
between the period from 12/31/76 to 6/30/95, grew to a total value of $95,162
(assuming the reinvestment of all dividends and capital gains.)
<TABLE>
<CAPTION>
CUMULATIVE TOTAL
INVESTMENT VALUE
<S> <C>
250 236
1,450 1,324
2,650 2,515
3,850 4,541
5,050 6,958
6,250 8,100
7,450 11,427
8,650 15,590
9,850 17,895
11,050 24,002
12,250 30,723
13,450 32,721
14,650 38,107
15,850 48,328
17,050 46,930
18,250 58,512
19,450 66,997
20,650 77,064
21,850 81,374
22,450 95,162
</TABLE>
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This hypothetical investment reflects the deduction of the maximum 5.75% sales
charge for investments under $50,000. For account values over $50,000, the
reduced sales charge of 4.75% was applied under Rights of Accumulation. A
program of systematic investing does not guarantee a profit or protect against
loss of principal in declining markets and, investors should consider their
ability to buy shares continuously during periods of falling prices, when the
value of their investments may be declining.
