SUPPLEMENT SATED OCTOBER 1, 1995 TO THE CURRENT STATEMENT OF ADDITIONAL
INFORMATION OF LORD ABBETT AFFILIATED FUND, INC.
This page together with the Affiliated sales piece, constitutes the entire
supplement dated October 1, 1995 to the Lord Abbett Affiliated Fund's current
statement of additional information.
<PAGE>
<PAGE>
What Does Investing A car and a tractor are two very different vehicles;
Have To Do likewise, stocks and bonds are very different investment
With Motor Vehicles? vehicles. While investment decisions may not be as easy
as choosing between a car and a tractor, your financial
goals, and the method of achieving them, should be clear
cut. A financial adviser can help you set your financial
goals and map out a plan to help you achieve your
objectives.
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Stocks or Bonds? Bond owners seek to receive a consistent income stream.
Stock owners seek to build assets. Both investments are
good choices, depending on what you need. And you
probably need both.
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Bonds: A portfolio of bonds offers the potential for high
current income. However, generally, bond investors will
not have the ability to increase their income in the
future.
10-Year U.S. Treasury Yield
Intermediate And Long-
Term Bond Income, Over
Time, Tends To Follow
The General Trend Of
Interest Rates
10-Year U.S. Treasury Yield
12/75 5.68
12/76 4.70
12/77 6.14
12/78 8.68
12/79 11.80
12/80 13.71
12/81 12.02
12/82 7.93
12/83 8.79
12/84 8.97
12/85 7.15
12/86 5.34
12/87 6.00
12/88 7.70
12/89 7.63
12/90 7.02
12/91 4.58
12/92 3.08
12/93 3.08
12/94 5.28
6/95 5.62
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Can an income investor structure a portfolio that pays the
current income needed with an opportunity for a rising stream
of income in the future?
Yes, If The Proper Ultimately, the current income potential of a portfolio
Investment Vehicles is dependent on the total amount of assets in the
Are Chosen. portfolio. Using both stocks and bonds has been a good
way to grow long-term income.
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The Equity Advantage... Equities should be part of any long-term income plan
because they have provided good protection against
inflation. In other words, equities have the potential
to expand the asset base from which income is derived.
If total assets grow, the income that is produced can
increase.
<PAGE>
How Does It Work? In the illustration to the right, the Andrews had
$100,000 to invest and initially needed about $6,500 in
annual income from their investment. Their financial
professional, John, suggested they split their money
between two investment vehicles: Lord Abbett's
Affiliated Fund, an equity vehicle, for their growth
needs, and Lord Abbett Bond-Debenture Fund, a fixed-
income vehicle, to cover their current income needs.
As the Andrews' need for income grew over time, John
transferred money from Lord Abbett's Affiliated Fund to
the Bond-Debenture Fund. These transfers helped meet the
Andrews' income needs.
[PHOTO - Two gentlemen and a woman reviewing a portfolio]
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SEC-Required Uniformly Computed Average Annual Rates of Total Return and SEC
yield at the maximum sales charge++ for the periods ended 6/30/95 were:
<TABLE>
<CAPTION>
Affiliated Fund Bond-Debenture Fund
- ------------------------------ ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 yr. 5 yrs. 10 yrs. 1 yr. 5 yrs. 10 yrs. 30-Day Yield
+16.30% +10.89% +12.55% +3.50% +11.21% +9.60% 8.57%
</TABLE>
Past results are not an indication of future results. The investment return and
principal value of an investment in either fund will fluctuate so that shares,
on any given day or when redeemed, may be worth more or less than their original
cost.
++Maximum sales charges for Affiliated Fund and Bond-Debenture Fund are 5.75%
and 4.75%, respectively.
<PAGE>
The Andrews' Investment of
$30,000 in Affiliated Fund and $70,000 in Lord Abbett Bond-Debenture Fund*
12/31/74 - 6/30/95
(For Growth Potential) (For Today's Income Needs)
This blend of vehicles provided the flexibility needed to increase income ("give
investors a raise").
<TABLE>
<CAPTION>
Affiliated Fund Transfers From Affiliated Fund Bond-Debenture Fund Bond-Debenture Fund Bond-Debenture Fund
Balance+ to Bond-Debenture Fund Cumulative Investment Principal Balance Income Paid in Cash
---------------------------------------------------------- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/74 $ 30,000 $70,000
12/75 40,358 $ 79,904 6,715
12/76 54,349 96,775 6,966
12/77 50,728 96,272 6,999
12/78 40,117 $12,000 (on 1/1/78) $82,000 102,242 8,620
12/79 51,908 100,057 9,232
12/80 64,690 98,932 9,544
12/81 49,854 $15,000 (on 1/1/81) $97,000 106,839 12,136
12/82 61,804 120,806 12,892
12/83 77,585 127,491 13,131
12/84 61,519 $20,000 (on 1/1/84) $117,000 136,841 16,386
12/85 78,048 147,152 16,722
12/86 95,957 145,371 16,754
12/87 75,803 $22,500 (on 1/1/87) $139,500 152,420 18,180
12/88 85,514 155,667 16,882
12/89 105,636 146,577 16,882
12/90 76,419 $25,000 (on 1/1/90) $164,500 139,086 19,653
12/91 93,232 170,456 18,520
12/92 104,786 178,203 18,142
12/93 87,467 $27,500 (on 1/1/93) $192,000 215,865 19,959
12/94 91,018 188,963 19,027
6/30/95 105,742 198,293 9,502**
TOTAL $292,844
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</TABLE>
At 6/30/95: The Andrews' portfolio was worth $304,035
and their portfolio was generating over $19,000 in annual income.
* A reduced sales charge of 3.75%, applicable to investments of $100,000, has
been deducted.
** Six months only.
+ Illustration assumes the reinvestment of all distributions.
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The Importance of Different investment vehicles provide for different
an Investment financial needs. Income needs in our example were
Strategy provided by an income vehicle. Growth needs were
provided by a growth vehicle. By choosing this strategy,
John structured an investment portfolio that satisfied
the Andrews' initial needs, but also had the flexibility
to meet their future needs.
The two major considerations when choosing investments
should be: what are your income needs now, and what will
you need in the future?
Your financial professional can help you develop a long-
term investment strategy that works toward reaching your
goals. Sit down with him/her to discuss how the Lord
Abbett Family of Funds can help you with your financial
objectives.
You wouldn't use a car to plow a field. Choosing the wrong
investment vehicle to pursue an investment objective
typically leads to similar frustration.
<PAGE>
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Both of these vehicles
are engineered to perform.
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[2 PHOTOS - New Automobile and Tractor]
Both are recognized for their high level of customer satisfaction.
Both cost approximately the same.
Which one should you buy?
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It depends. What do you want it to do?
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Results quoted herein represent past performance and reflect appropriate Rule
12b-1 Plan expenses for each fund. Tax consequences are not reflected. The
Funds' current sales charge structures have changed from the past. Market prices
for bonds and preferred stocks held by a Fund fluctuate as interest rates
change. Lower rated bonds held in Bond-Debenture Fund may fluctuate in value and
experience periods of reduced liquidity due to changes in economic or market
conditions.
Current prospectuses containing more complete information about the Funds,
including charges and expenses, can be obtained by calling your financial
adviser or Lord, Abbett & Co. at 800-874-3733. An investor should read the
prospectus(es) carefully before investing.
If used after 9/30/95, this literature must be accompanied by Lord Abbett's
Performance Quarterly for the most recently completed calendar quarter.
[LOGO APPEARS HERE] Lord, Abbett & Co.
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
LA-6IOG-995
(9/95)
