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Previous: MERRILL LYNCH FUND FOR TOMORROW INC, N-30B-2, 1995-06-07 |
Next: BUCYRUS ERIE CO /DE, 8-K, 1995-06-07 |
Lord Abbett TAX-FREE INCOME FUND
National . New York . Texas . New Jersey . Connecticut
Missouri . Hawaii . Washington . Minnesota
Semi-Annual Report for the Six Months Ended March 31, 1995
A mutual fund with an objective of providing you with high tax-free income.
[PHOTO - Older gentlelman pushing child on tricycle]
[LOGO] Lord
Abbett
& Co
<PAGE>
[PHOTO - Ronald P. Lynch, Chairman]
- -------------------------
Ronald P. Lynch, Chairman
April 13, 1995
- --------------------------------------------------------------------------------
Report to Shareholders For the Six Months Ended March 31, 1995
Lord Abbett Tax-Free Income Fund completed the first half of fiscal year 1995 on
March 31 with aggregate net assets of $1.68 billion. The net assets of each
Series were as follows:
- -----------------------------------------
National: $655.8 million
New York: $332.9 million
Texas: $101.6 million
New Jersey: $188.0 million
Connecticut: $111.0 million
Missouri: $127.2 million
Hawaii: $ 87.6 million
Washington: $ 73.9 million
Minnesota
(established 12/27/94): $ 2.2 million
- -----------------------------------------
The past six months have been among the most volatile on record for the
municipal bond market. The period can be divided into two distinct segments. The
first, October and November, was a continuation of the cycle which began in
February 1994 when the Federal Reserve began to raise short-term interest rates.
Investors contributed to the continued rise in interest rates and erosion of
bond prices as they sold their bonds.
The subsequent four months, the second segment of the period, saw the Federal
Reserve's actions, combined with indications of slower economic activity, cause
long-term interest rates to decline. This resulted in a solid rally in the
fixed-income markets. Municipal bonds, in particular, benefited. Prices
rebounded sharply from the oversold conditions of last fall.
The demand for municipal bonds, combined with a shortage of new issues and the
redemption of a large number of bonds with call dates between 1994 and 1996, has
provided an attractive supply/demand scenario. Given this attractive
supply/demand environment and a slowing economy, long-term municipal bonds
should be attractive to investors seeking tax-free income in the year ahead.
The Fund benefited from the decision to extend maturities last fall. Although
market sentiment for municipals was decidedly negative at that time, the
underlying fundamentals in the market (e.g., constricted future supply,
inflation under control and very cheap valuations relative to taxable bonds)
suggested municipal bond prices would increase.
Consistent with our value investment strategy, your Fund continues to focus on
high-quality issues. We believe that, although net asset values may fluctuate in
the interim, long-term investors will benefit from the Fund's management style.
We welcome any questions or comments you may have about your Fund and look
forward to helping you achieve your financial goals in the months ahead.
<PAGE>
================================================================================
Fund Facts
- --------------------------------------------------------------------------------
LORD ABBETT'S FOCUS ON QUALITY
- ------------------------------
All series managed by Lord Abbett emphasize high quality, call protection and
total return potential. Portfolio quality shown as of 3/31/95.
[PIE CHARTS APPEAR HERE]
National Series
AAA - 67.8%
AA - 18.4%
A - 7.6%
BBB - 6.2%(1)
New York Series
AAA - 60.9%
AA - 14.0%
A - 19.6%
BBB - 5.5%
Texas Series
AAA - 54.7%
AA - 28.9%
A - 16.9%
BBB - 0.5%(1)
New Jersey Series
AAA - 71.0%
AA - 17.5%
A - 6.2%
BBB - 5.3%(1)
LORD ABBETT'S TAX-FREE RECORD AND SEC-REQUIRED INFORMATION AS OF 3/31/95
------------------------------------------------------------------------
<TABLE>
<CAPTION>
National New York Texas New Jersey
Series Series Series Series
<S> <C> <C> <C> <C>
Date of Inception 4/2/84 4/2/84 1/20/87 1/2/91
Distribution Rate at Net Asset Value 5.76% 5.74% 5.71% 5.69%
Average Annual Rate of Total Return(2) at Net Asset Value:
1 Year 5.46% 3.27% 7.00% 6.10%
10 Years or Life of Series 9.64% 9.24% 7.94%(3) 8.55%(3)
(per yr.) (per yr.) (per yr.) (per yr.)
30-Day SEC Yield 5.16% 5.10% 5.00% 5.03%
Average Annual Rate of Total Return at the Maximum Offering Price:
1 Year 0.50% -1.70% 1.90% 1.10%
5 Years 6.81% 6.55% 7.22% ---
(per yr.) (per yr.) (per yr.) (per yr.)
10 Years or Life of Series 9.10% 8.70% 7.29%(3) 7.32%(3)
(per yr.) (per yr.) (per yr.) (per yr.)
</TABLE>
/(1)/Includes holdings which are not rated by independent ratings services but
are, in Lord Abbett's opinion, of comparable quality.
/(2)/Total return is the percent change in value with dividends and capital
gains reinvested. In the event a portfolio invests in private activity
bonds, the interest income derived therefrom may increase the alternative
minimum tax liability only for shareholders subject to that tax. In the
event a portfolio does not invest entirely in municipal bonds, federal,
state and/or local taxes (as applicable) may be applicable to interest
income of such Series.
/(3)/Since inception.
<PAGE>
[PIE CHARTS APPEARS HERE]
Connecticut Series
AAA - 61.6%
AA - 19.0%
A - 16.8%
BBB - 2.6%
Missouri Series
AAA - 74.7%
AA - 16.0%
A - 4.6%
BBB - 4.7%(1)
Hawaii Series
AAA - 77.9%
AA - 12.7%
A - 9.4%
Washington Series
AAA - 81.9%
AA - 9.01%
A - 9.1%
Minnesota Series
AAA - 66.3%
AA - 15.7%
A - 18.9%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Connecticut Missouri Hawaii Washington Minnesota
Series Series Series Series Series
<S> <C> <C> <C> <C>
4/1/91 5/31/91 10/28/91 4/15/92 12/27/94
5.80% 5.65% 5.73% 5.99% 6.11%
5.60% 5.01% 5.79% 5.82% -
7.87%(3) 7.82%(3) 6.88%(3) 6.86%(3) 4.82%(3)
(per yr.) (per yr.) (per yr.) (per yr.) (3 mos.)
5.21% 5.01% 5.03% 5.45% 4.39%
0.60% 0.00% 0.80% 0.80% -
- - - - -
6.55%(3) 6.47%(3) 5.36%(3) 5.11%(3) -0.20%(3)
(per yr.) (per yr.) (per yr.) (per yr.) (3 mos.)
</TABLE>
The results quoted herein represent past performance which is no indication of
future results. The investment return and principal value of an investment in
the Series will fluctuate so that shares, on any given day or when redeemed, may
be worth more or less than their original cost.
The respective SEC-required uniformly computed average annual rates of total
return are at the maximum sales charge of 4.75%.
See Important Information on page 1.
<PAGE>
================================================================================
Important Information
- --------------------------------------------------------------------------------
As of 3/31/95, no Series of the Fund had more than 6% of its net assets invested
in residual interest bonds ("RIBs"), although each portfolio may invest up to
20% of its net assets in such securities. A RIB, sometimes referred to as an
inverse floater, is a debt instrument with a floating or variable interest rate
that moves in the opposite direction of the interest rate on another security or
the value of an index. Changes in the interest rate on the other security or
index inversely affect the residual interest paid on the RIB, with the result
that when interest rates rise, RIBs give lower interest payments and their
values fall faster than other similar fixed-rate bonds. But when interest rates
fall, not only do RIBs give higher interest payments, their values also rise
faster than other similar fixed-rate bonds. The market for RIBs is relatively
new.
If used as sales material after 6/30/95, this report must be accompanied by Lord
Abbett's Performance Quarterly for the most recently completed calendar quarter.
See prospectus for a discussion of fees waived and expenses assumed by Lord,
Abbett & Co.
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NATIONAL SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Austin TX Wtr Sewer & Elec Ref Rev 14 1/4% 11/15/2006 AAA $ 1,100M $1,307,625
23.62% Bexar Co TX Health Facs 9 1/2% 11/1/2015 AAA 2,030M 2,121,350
Brainerd MN Health Care Facs/Benedictine Health-St Joseph Prjt
8 3/8% 2/15/2020 AAA 2,500M 2,896,875
Bristol TN Health & Ed FGIC+ 7% 9/1/2021 AAA 1,390M 1,548,113
Clermont Co OH Hosp Facs 7 1/2% 9/1/2019 AAA 285M 322,763
Clermont Co OH Hosp Facs AMBAC+ 7 1/2% 9/1/2019 AAA 965M 1,078,388
Colorado River TX Muni Wtr AMBAC+ 6 3/4% 1/1/2011 AAA 1,000M 1,081,250
Dallas TX Wtrwks & Sewer 7.40% 4/1/2002 AAA 1,000M 1,071,250
East Bay CA Muni Util Dist 7 1/2% 3/1/2012 AAA 1,300M 1,368,250
Fort Worth TX Wtr & Sewer Rev 6 1/2% 2/15/2012 AAA 4,725M 5,055,750
Fulton Co GA Hosp Auth Rev MBIA+ 6.60% 10/1/2011 AAA 3,000M 3,318,750
Green Co PA Gen Facs Auth 7% 7/1/2011 AAA 5,825M 6,480,313
Harris Co TX Flood MBIA+ 6 1/2% 11/1/2010 AAA 1,000M 1,062,500
Illinois St 11% 11/1/2004 AAA 1,600M 1,770,000
Illinois St 11% 11/1/2005 AAA 2,000M 2,212,500
Illinois St Sales Tax Rev 7.20% 6/15/2001 AAA 1,200M 1,284,000
Illinois St Sales Tax Rev 6 3/4% 6/15/2006 AAA 1,150M 1,220,438
Intermountain UT Pwr Auth 7 3/4% 7/1/2020 AAA 225M 248,625
King Co WA Sch Dist 6 3/4% 12/1/2008 AAA 1,000M 1,077,500
King Co WA Sch Dist No 415 Kent 7.70% 12/1/2008 AAA 1,000M 1,128,750
Los Angeles Co CA Flood 7 7/8% 7/15/2017 AAA 3,000M 3,258,750
Los Angeles CA Harbor Rev 7.60% 10/1/2018 AAA 5,000M 5,518,750
Maryland St Dept Trans Cons Trans Second Issue 6.80% 11/15/2001 AAA 2,000M 2,152,500
Maryland St Dept Trans Cons Trans Second Issue 6.80% 11/15/2002 AAA 2,000M 2,155,000
Massachusetts St 7 1/4% 7/1/2005 AAA 2,175M 2,365,313
Massachusetts St Health & Ed Facs Rev/Salem Hosp 8.15% 7/1/2014 AAA 6,000M 6,825,000
Metropolitan Govt Nashville & Davidson Co TN Wtr & Sewer
10 5/8% 12/1/2007 AAA 2,365M 2,710,880
Michigan Comprehensive Trans 7 5/8% 9/1/2008 AAA 1,100M 1,212,750
Michigan St Hosp 10% 10/1/2016 AAA 3,960M 4,143,150
Missouri St Convention 6.90% 8/15/2021 AAA 3,000M 3,352,500
Montgomery Co PA Higher Ed & Health/Bryn Mawr 7 3/8% 12/1/2019 AAA 500M 558,750
</TABLE>
1
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NATIONAL SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
New Jersey Health Care Facs Fin Auth Rev/St Peters Med Ctr
MBIA+ 8.60% 7/1/2017 AAA $ 2,100M $ 2,312,625
New York City NY Muni Wtr Fin Auth Wtr & Sewer Sys Rev
AMBAC+ 6 1/2% 6/15/2021 AAA 315M 331,931
New York Housing Corp Rev 9% 11/1/2017 AAA 13,250M 14,873,125
Ohio St Higher Ed Fac 7.70% 10/1/2018 AAA 2,650M 2,865,313
Ohio Wtr Rev AMBAC+ 9 1/4% 12/1/2012 AAA 1,475M 1,530,313
Ohio Wtr Rev 9 1/4% 12/1/2012 AAA 235M 243,813
Orlando FL Util Comm Wtr 8 1/2% 10/1/2009 AAA 8,000M 8,320,000
Pennsylvania St Higher Ed MBIA+ 7% 6/15/2011 AAA 1,100M 1,212,750
Plano TX Indpt Sch Dist FGIC+ 8 5/8% 2/15/2002 AAA 2,000M 2,350,000
Puerto Rico Commonwealth 8% 7/1/2007 AAA 1,000M 1,117,500
Puerto Rico Commonwealth 8% 7/1/2007 AAA 375M 413,438
Puerto Rico Commonwealth Hwy 8% 7/1/2005 AAA 1,215M 1,357,763
Puerto Rico Commonwealth Hwy 6 5/8% 7/1/2018 AAA 250M 277,812
Puerto Rico Commonwealth Hwy 6 1/2% 7/1/2022 AAA 1,635M 1,804,630
Puerto Rico Ind Med & Environmental 9 3/8% 12/1/2007 AAA 2,000M 2,275,000
Rhode Island Depositors Economic Protection Corp Spcl Oblig
MBIA+ 7 1/2% 8/1/2014 AAA 5,000M 5,712,500
Salt Lake City UT Arpt FGIC+ AMT 7 7/8% 12/1/2018 AAA 1,500M 1,638,750
Salt River AZ 7 7/8% 1/1/2028 AAA 1,425M 1,563,937
Santa Clara Valley CA Wtr 6.60% 2/1/2015 AAA 1,350M 1,466,437
Seattle WA Muni Light & Pwr Rev 7 3/4% 7/1/2006 AAA 1,000M 1,087,500
Seattle WA Muni Metro 7 3/8% 1/1/2030 AAA 3,000M 3,251,250
Snohomish Co WA Sch Dist No 015 Edmonds 7.15% 12/1/2006 AAA 2,500M 2,725,000
South Carolina St 6.90% 8/1/1999 AAA 2,000M 2,135,000
Southern CA Pub Pwr Auth Transmission Prjt Rev 6% 7/1/2020 AAA 500M 509,375
Texas Muni Pwr Agy Rev 6 1/4% 9/1/2010 AAA 5,000M 5,268,750
Texas Muni Pwr Agy Rev 14 5/8% 9/1/2012 AAA 3,115M 3,671,805
Uintah Co UT Poll Ctrl Rev 10 1/2% 6/15/2014 AAA 1,000M 1,280,000
University of Houston TX Bd of Regents MBIA+ 7 3/8% 2/15/2009 AAA 1,500M 1,648,125
Washington St 8% 9/1/2005 AAA 1,250M 1,309,375
Washington St Pub Pwr Supply 7 1/2% 7/1/2018 AAA 6,000M 6,727,500
Washington St Pub Pwr Supply Sys Nuclear Prjt No 2
Rev 7 1/2% 7/1/2004 AAA 1,500M 1,689,375
Total 154,879,025
============
General Obligation Florida St Bd Pub Ed 6.70% 6/1/2022 AA 3,000M 3,183,750
State New York St Ref-Ser B 6 1/4% 8/15/2005 A 1,500M 1,599,375
2.34% Tennessee St Ser A 5 3/4% 3/1/2015 Aaa 2,000M 1,987,500
Texas St RIBS 8.871% 9/30/2011++ AA 2,000M 2,200,000
Texas St AMT 6.30% 6/1/2014 AA 1,500M 1,526,250
Texas St Wtr Dev Bd 7.15% 8/1/2035 AA 1,415M 1,521,125
Washington St Ref-Ser R-93B 5.70% 10/1/2015 AA 3,500M 3,351,250
Total 15,369,250
============
General Obligation Anne Arundel Co MD 6.30% 8/1/2023 AA 785M 806,588
Local Anne Arundel Co MD 6.30% 8/1/2023 AA 720M 739,800
3.04% Anne Arundel Co MD 6.30% 8/1/2024 AA 285M 292,837
Baltimore MD FGIC+ 7 3/8% 10/15/2002 AAA 1,245M 1,408,406
Chatman Co GA Sch Dist MBIA+ 6 3/4% 8/1/2020 AAA 785M 838,969
</TABLE>
2
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NATIONAL SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Douglas Co KS Uni Sch Dist No 497 6% 9/1/2009 Aa $ 1,750M $ 1,785,000
Fulton Co GA Sch Dist 6 3/8% 5/1/2016 AA 6,550M 6,967,562
Grandview Heights OH City Sch Dist 6.10% 12/1/2019 AAA 1,000M 1,005,000
Kitsap Co WA Sch Dist 5 1/2% 12/1/2011 A 800M 756,000
Nassau Co NY MBIA+ 6 3/8% 5/15/2014 AAA 250M 258,438
Olentangy Loc Sch Dist OH 6 1/4% 12/1/2014 AA 500M 510,625
Olentangy Loc Sch Dist OH 6 1/4% 12/1/2015 AA 520M 531,050
Snohomish Co WA MBIA+ 5 7/8% 12/1/2018 AAA 1,000M 983,750
University City MO Sch Dist MBIA+ 10% 2/15/2008 AAA 2,250M 3,099,375
Total 19,983,400
===========
Education Alabama Agric & Mechanical Univ Rev MBIA+ 6% 11/1/2015 AAA 875M 872,812
8.30% Alabama Agric & Mechanical Univ Rev MBIA+ 6 1/2% 11/1/2025 AAA 1,000M 1,032,500
Arkansas St Student Loan Auth Rev AMT 7 1/4% 6/1/2009 A 3,500M 3,801,875
Connecticut St Health & Ed LINK 5.786% 6/10/2030 AAA 14,000M 13,860,000
Connecticut St Higher Ed AMT 7 3/8% 11/15/2005 A 100M 104,625
District of Columbia Rev MBIA+ 7.15% 4/1/2021 AAA 1,000M 1,068,750
George Mason Univ VA Rev 6 1/4% 2/1/2014 A 500M 506,250
George Mason Univ VA Rev 6 1/4% 2/1/2015 A 500M 506,250
Glendale AZ Ind Dev Auth Ed Facs Rev CNLA+ 7 1/8% 7/1/2020 AAA 1,000M 1,081,250
Indiana St Ed Facs Auth Rev 6.65% 3/1/2019 Aaa 11,600M 12,209,000
Morgan St Univ MD Academic & Aux Facs Fees Rev
MBIA+ 6.05% 7/1/2015 AAA 1,500M 1,530,000
Nebraska Higher Ed Loan Program AMT 6% 6/1/2028 A 1,075M 1,005,125
New Hampshire Higher Ed & Health Facs Auth Rev
RIBS FGIC+ 7.12% 8/15/2024++ AAA 5,100M 5,055,375
New Jersey St Ed Facs Auth MBIA+ 6.85% 7/1/2019 AAA 400M 420,000
New York St Dorm Auth Revs St Univ Ed Facs-Ser A
5 7/8% 5/15/2011 BBB 3,000M 2,883,750
New York St Urban Development Higher Ed Tech Grants
MBIA+ 6% 4/1/2010 AAA 1,305M 1,295,212
Ohio St Higher Ed Fac Comm Rev Unrefunded Balance 7.70%
10/1/2018 Aa 100M 106,875
Pennsylvania St Higher Ed 5.90% 9/1/2015 AA 2,000M 1,970,000
Pennsylvania St Higher Ed RIBS AMBAC+ AMT 7.975% 3/1/2022++ AAA 3,000M 2,801,250
Texas St Higher Ed Coord AMT 7.70% 10/1/2025 A 800M 844,000
University NM Tech Dev Corp Lease Rev/Univ Ctr Res Pk Prjt
MBIA+ 6.55% 8/15/2025 AAA 1,410M 1,455,825
Total 54,410,724
==========
Finance Cumberland Co NC Ctf Partn Civic Ctr AMBAC+ 6.40% 12/1/2019 AAA 1,800M 1,865,250
3.62% Hawaii St Dept Bdg & Fin Spcl Purp Mtge Rev LINK 5.395%
12/15/2023 AAA 4,000M 3,630,000
Indiana Bd Bk Rev Guarantee-St Revolving Fd PGB 6 3/4% 2/1/2017 A 500M 513,750
Indianapolis IN Loc Pub Imp 6 1/2% 2/1/2022 A 1,350M 1,351,687
Iowa Fin Auth Rev 6 1/4% 5/1/2024 A 1,500M 1,537,500
Municipal Assistance Corp NY 7.60% 7/1/2004 Aa 6,000M 6,675,000
Municipal Assistance Corp NY 7 5/8% 7/1/2008 Aa 4,460M 4,911,575
Weber Co UT Muni Bldg Auth Lease Rev 7 1/2% 12/15/2019 AA 3,000M 3,232,500
Total 23,717,262
==========
Health and Hospital
9.77% Abilene TX Health Facs Dev Corp Hosp Rev Ref & Imp/Hendric
MBIA+ 6.15% 9/1/2025 AAA 2,000M 1,975,000
Amarillo TX Health Facs Corp LINK FSA+ 6.562% 1/1/2022 AAA 3,100M 3,196,875
Charleston Co SC Hosp Facs Rev/Bon Secours Health Sys Prjt
FSA+ 5 5/8% 8/15/2025 AAA 5,750M 5,376,250
</TABLE>
3
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NATIONAL SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Colorado Health Fac Auth 7 1/2% 10/1/2020 BBB $ 2,845M $2,969,468
Illinois Health Facs Auth 9 3/4% 9/1/2015 AA 3,000M 3,123,750
Illinois Health Facs Auth Rev/Evangelical Hosps
6 1/4% 4/15/2022 AA 1,000M 975,000
Louisiana Pub Fin Auth Hosp RIBS FSA+ 6.29% 7/22/2024++ AAA 3,000M 2,272,500
Massachusetts St Health & Ed Facs Auth Rev LINK MBIA+ 5.24%
7/1/2017 AAA 8,000M 7,200,000
Massachusetts St Health & Ed Facs Auth Rev MBIA+ 6% 10/1/2019 AAA 1,500M 1,473,750
Michigan St Hosp Fin Auth 10% 10/1/2016 A 40M 41,750
Montgomery AL Med Clinic 7% 3/1/2015 A 1,750M 1,809,062
New Jersey Health Care Facs MBIA+ 6 5/8% 7/1/2010 AAA 250M 260,000
New Jersey Health Care Facs Fin Auth Rev/St Peters Med Ctr
MBIA+ 8.60% 7/1/2017 AAA 400M 434,000
New York City Health & Hosp Corp RIBS AMBAC+ 6.94% 2/15/2023++ AAA 3,250M 2,864,062
New York St Med Care Facs Fin Agy Rev 8 7/8% 8/15/2007 BBB 2,905M 3,184,606
Peninsula Ports Auth VA Healthcare Facs Rev 7% 8/1/2017 BBB 1,000M 1,016,250
Prince William Co VA Ind AMBAC+ 5 5/8% 4/1/2012 AAA 1,500M 1,441,875
Prince William Co VA Ind Dev Auth Hosp Rev 5 5/8% 4/1/2012 A 1,250M 1,167,187
Prince William Co VA Ind Dev Auth Hosp Rev/Potomac Hosp
6.85% 10/1/2025 A 250M 259,687
Rochester MN Health Care Reg Fixed ARS LINK 6.026% 11/15/2015 AA 19,900M 19,999,500
South Carolina Jobs-Economic Dev Auth Hosp Facs Rev/Oconee
CNLA+ 6.15% 3/1/2025 AAA 2,000M 1,970,000
St Paul MN Hsg & Redev Auth Hosp Rev 9 5/8% 11/1/2008 Baa 1,000M 1,088,750
Total 64,099,322
==========
Housing Alaska St Hsg Fin Corp GNMA+ 7 7/8% 6/1/2024 AAA 440M 464,200
5.09% Colorado Hsg & Fin Auth FHA+ 8 3/4% 9/1/2017 Aa 200M 209,250
Connecticut St Hsg Fin Auth FHA+ AMT 7.20% 11/15/2008 AA 895M 957,650
Connecticut St Hsg Fin Auth AMT 6 1/2% 5/15/2027 AA 1,450M 1,451,813
De Kalb Co GA Hsg Auth FSA+ 7.15% 1/1/2025 AAA 900M 929,250
Fulton Co GA Hsg Auth Sing Fam Rev GNMA+ AMT 6.20% 3/1/2013 AAA 1,000M 1,001,250
Georgia St Hsg & Fin Auth Rev AMT 6.40% 12/1/2015 AA 4,245M 4,218,469
Idaho Hsg Agy AMT 7.45% 7/1/2015 Aaa 1,250M 1,318,750
Idaho Hsg Agy AMT 6.70% 7/1/2027 AAA 3,000M 3,007,500
Illinois Hsg Dev Auth Multi Fam Hsg/Lawndale
FHA+ AMT 6.80% 12/1/2016 AAA 2,490M 2,558,475
Indiana St Hsg Fin Auth GNMA+ 7.80% 1/1/2022 Aaa 1,000M 1,062,500
Indiana St Hsg Fin Auth Sing Fam Mtge 10.20% 1/1/2016 Aa 245M 252,044
Maryland Sing Fam Mtge FHA/VA+ AMT 7.85% 4/1/2029 Aa 1,505M 1,600,944
Maryland St Comm Dev Admin Dept Hsg & Cmnty Dev Sing Fam
6 1/4% 4/1/2017 Aa 4,920M 4,907,700
Maryland St Comm Dev Admin Sing Fam AMT 7.30% 4/1/2025 Aa 500M 529,375
Massachusetts Hsg Fin Auth AMT 8.10% 6/1/2020 Aa 1,385M 1,454,250
Massachusetts St Hsg Fin Agy Hsg Rev Rental-Mtge-FHA Insd-Ser
AMBAC+ AMT 7.35% 1/1/2035 AAA 1,485M 1,585,238
Minnesota St Hsg Fin Agy 10.20% 7/1/2016 AA 105M 108,281
Missouri St Hsg Dev Comm GNMA+ AMT 7 3/8% 8/1/2023 AAA 540M 572,400
New Jersey Hsg & Mtge Fin Agy MBIA+ AMT 7.90% 10/1/2022 AAA 845M 892,531
Ohio Hsg Fin Auth GNMA+ AMT 7.85% 9/1/2021 AAA 670M 714,387
Puerto Rico Hsg Fin Corp GNMA+ 6.85% 10/15/2024 AAA 450M 466,875
Tennessee Hsg Dev Agy Mtge Ser A AMT 7 1/8% 7/1/2026 A 500M 515,625
Texas Hsg Fin Agy Sing Fam 9 3/8% 9/1/2015 Aa 65M 66,950
</TABLE>
4
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NATIONAL SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Utah St Hsg Fin Agy Sing Fam FHA+ AMT 7 3/4% 1/1/2023 AA $ 515M $ 537,531
Vermont Hsg Fin Auth FHA/VA+ AMT 8.10% 6/1/2022 A 1,890M 1,989,225
Total 33,372,463
===========
Industrial Revenue Chicago IL Gas Supply Rev 10 1/4% 3/1/2015 AA 1,000M 1,041,250
Bonds Delaware Economic Dev Auth MBIA+ AMT 7.60% 3/1/2020 AAA 2,600M 2,827,500
3.41% Maryland St Ind Dev Fin Auth Economic Dev Rev
RIBS FSA+ 7.338% 8/26/2022++ AAA 3,050M 2,924,188
New York NY City Ind Dev Agy Spcl Fac Rev Terminal One Group
AMT 6% 1/1/2019 A 2,500M 2,368,750
New York St Energy/Bklyn Union Gas 9% 5/15/2015 A 1,000M 1,023,750
Pennsylvania Economic Dev Fin Auth Exempt Facs Rev/Macmillan
AMT 7.60% 12/1/2020 Baa 2,500M 2,640,625
Puerto Rico Ind Med & Environmental Ctrl/Upjohn 7 1/2%
12/1/2023 AA 7,000M 7,647,500
Rhode Island St Ind Facs Corp Marine Term Rev/Mobil Oil 6%
11/1/2014 AA 1,900M 1,878,625
Total 22,352,188
==========
Miscellaneous Atlanta GA Downtown Dev Auth Ref-Underground Atlanta Prjt
3.73% 6 1/4% 10/1/2016 AA 400M 407,000
Cobb-Marietta GA Coliseum & Exhibit Hall Auth Rev MBIA+
5 5/8% 10/1/2023 AAA 3,300M 3,122,625
Illinois Civic Ctr AMBAC+ 6 1/2% 12/15/2008 AAA 855M 910,575
Riverside Co CA Trans Comm Sales Tax Rev Ser A AMBAC+ 6 1/2%
6/1/2009 AAA 5,000M 5,187,500
St Louis Co MO Ind Dev Rev Arena Prjt AMT 7 7/8% 12/1/2024 BBB* 3,500M 3,570,000
St Louis MO Land Clearance Redev 7 3/4% 7/1/2021 BBB* 7,350M 7,726,688
Valparaiso IN Multi-Schs Bldg Corp AMBAC+ 5% 1/1/2013 AAA 4,000M 3,525,000
Total 24,449,388
==========
Pollution Control Burke Co GA Dev Auth Poll Ctrl Rev MBIA+ 6.60% 7/1/2024 AAA 450M 461,813
Revenue Carroll Co KY Collateralized Poll Ctrl Rev Muni Forwards
2.39% 7.45% 9/15/2016 Aa 1,000M 1,120,000
De Soto Parish LA Poll Ctrl Ref-Southwestern Elec Pwr Co Prjt
7.60% 1/1/2019 Aa 1,000M 1,127,500
Missouri St Environmental Imp & Energy Res Wtr Poll Ctrl 7.20% Aa 3,250M 3,623,750
7/1/2016
Ohio St Air Quality Dev Auth Rev FGIC+ 8% 12/1/2013 AAA 4,000M 4,650,000
Pleasant Prairie WI Poll Ctrl Rev/WI Elec 9 3/4% 9/15/2015 AA 4,500M 4,685,625
Total 15,668,688
==========
Power Effingham Co GA Dev Auth MBIA+ 6 3/4% 2/1/2022 AAA 2,450M 2,505,125
8.12% Georgia Muni Elec Auth Pwr Rev FSA+ 6 1/8% 1/1/2012 AAA 3,000M 3,011,250
Hawaii Elec Dept Bdg & Fin AMT 7 5/8% 12/1/2018 Baa 2,000M 2,137,500
New York St Energy Res & Dev RIBS 8.133% 4/1/2020++ A 500M 503,125
New York St Energy Res & Dev/Con Edison AMT 9 1/4% 9/15/2022 Aa 1,000M 1,103,750
Prince Georges Co MD Poll Ctrl Rev 5 3/4% 3/15/2010 A 13,000M 13,032,500
Puerto Rico Elec Pwr Auth 7% 7/1/2011 A 1,000M 1,070,000
Puerto Rico Elec Pwr Auth 7 1/8% 7/1/2014 A 1,335M 1,411,763
Rock Hill SC Util Sys Rev FGIC+ 7 7/8% 1/1/2009 AAA 1,000M 1,071,250
South Carolina St Pub Svc Auth Rev AMBAC+ 6 1/8% 1/1/2014 AAA 5,945M 5,833,531
Tacoma WA Elec Sys Rev LINK AMBAC+ 6.372% 1/2/2015 AAA 9,800M 10,045,000
Western Generation Agy OR Cogeneration Prjt Rev AMT 7.40%
1/1/2016 BBB* 1,500M 1,531,875
Wisconsin Pub Pwr Inc Sys Pwr Supply Sys Rev
LINK AMBAC+ 5.44% 7/1/2014 AAA 8,000M 7,440,000
Wisconsin St Pub Pwr Supply Sys Rev RIBS AMBAC+ 6 1/2%
7/1/2014++ AAA 3,000M 2,531,250
Total 53,227,919
==========
Solid Waste Broward Co FL Wtr & Sewer 7.95% 12/1/2008 A 67M 72,695
3.91% Butler AL Ind Bd Solid Waste Disp Rev/James River Corp AMT 8%
9/1/2028 BBB 1,500M 1,575,000
</TABLE>
5
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NATIONAL SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Cobb Co GA Solid Waste Mgmt Auth AMT 6.40% 1/1/2015 Aa $ 900M $ 915,750
Connecticut St Dev Auth Solid Waste Disp Facs Rev AMT 7%
7/1/2025 AAA 2,000M 2,140,000
Henderson Co KY Solid Waste Disp Rev/Macmillan Bloedel Prjt
7% 3/1/2025 Baa 8,000M 8,020,000
Palm Beach Co FL Solid Waste 8 3/4% 7/1/2010 A 5,845M 6,473,338
Regional Waste Sys ME 7.95% 7/1/2010 AA 3,900M 4,294,875
York PA Solid Waste 8.10% 12/1/2007 AA 2,000M 2,170,000
Total 25,661,658
============
Transportation Albuquerque NM Arpt Rev Ser A AMBAC+ AMT 6.60% 7/1/2016 AAA 1,900M 1,959,375
4.68% Allegheny PA Arpt MBIA+ AMT 8 1/4% 1/1/2016 AAA 3,450M 3,751,875
Capital Regional Arpt Comm VA AMBAC+ 8 1/8% 7/1/2014 AAA 14,000M 16,590,000
Hillsborough Co FL Aviation FGIC+ 6.90% 10/1/2011 AAA 500M 532,500
Houston TX Arpt Sys Rev MBIA+ AMT 8.20% 7/1/2017 AAA 1,500M 1,663,125
Maryland St Trans Auth Spcl Oblig Rev Baltimore/Wa Intl Arpt
FGIC+ AMT 6.40% 7/1/2019 AAA 1,500M 1,556,250
Metropolitan Atlanta Rapid Tran Auth GA Sales Tax Rev
AMBAC+ 6 1/4% 7/1/2020 Aaa 2,210M 2,298,400
New York St Twy Auth Hwy & Brdg Tr Fd 6% 4/1/2014 A 750M 738,750
Port Auth NY & NJ AMT 7 1/4% 8/1/2025 AA 1,000M 1,066,250
Wayne Charter Co MI Arpt Rev MBIA+ AMT 6 3/4% 12/1/2021 AAA 500M 516,875
Total 30,673,400
============
Water and Sewer Camden Co NJ Muni Util Auth FGIC+ 8 1/4% 12/1/2017 AAA 13,255M 14,530,794
12.08% Fairfax Co VA Wtr Auth 6% 4/1/2022 Aa 2,000M 1,977,500
Grand Rapids MI San Sewer Sys Rev MBIA+ 6% 1/1/2022 AAA 1,500M 1,462,500
Metropolitan Govt Nashville Wtr & Sewer
RIBS AMBAC+ 7.668% 1/7/2022++ AAA 25,000M 24,937,500
Michigan City IN Wtrwrks Rev MBIA+ 6% 3/1/2017 AAA 3,000M 2,951,250
New York City Muni Wtr Fin Auth Wtr & Sewer Sys Rev
RIBS MBIA+ 6.295% 6/15/2013++ AAA 25,000M 21,500,000
Ohio St Wtr Dev Auth Rev AMBAC+ 5.70% 6/1/2009 AAA 2,030M 2,037,612
Ohio Wtr Rev AMBAC+ 9 1/4% 12/1/2012 AAA 105M 108,938
Tacoma WA Sewer Rev FGIC+ 8% 12/1/2008 AAA 4,705M 5,734,219
Texas Wtr Resource Fin Auth 7 5/8% 8/15/2008 A 1,970M 2,105,437
West Virginia St Wtr Dev Auth Ref-Loan Prog II-Ser A-II
FSA+ 5 3/4% 11/1/2029 AAA 2,000M 1,865,000
Total 79,210,750
============
Total Municipal Bonds 94.10% (Cost $611,514,721) 617,075,437
============
<CAPTION>
OTHER ASSETS, LESS LIABILITIES 5.90%
<S> <C> <C> <C> <C>
Short-Term Los Angeles Co CA Tax & Rev Anticipation Notes 4 1/2% MIG1 16,000M 16,005,920
Securities 6/30/1995
Michigan St Notes 5% 9/29/1995 MIG1 1,400M 1,405,922
Pennsylvania St Tax Anticipation Notes 4 3/4% 6/30/1995 MIG1 450M 450,491
Texas St Tax & Rev Anticipation Notes 5% 8/31/1995 MIG1 4,450M 4,463,840
Total (Cost $22,328,341) 22,326,173
============
Cash and Receivables,
Net of Liabilities 16,352,223
Total Other Assets, Less Liabilities 38,678,396
============
Net Assets (equivalent to $10.84 a share on 60,492,776 shares of $.001
100.00% par value capital stock outstanding; authorized,
80,000,000 shares) $655,753,833
============
</TABLE>
* This security has not been rated by an independent ratings service but is, in
Lord Abbett's opinion, of comparable quality.
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the
rate in effect at March 31, 1995.
See Notes to Financial Statements.
6
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NEW YORK SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Albany Muni Wtr Fin Auth 7 1/2% 12/1/2017 AAA $ 1,445M $ 1,600,337
25.13% Battery Pk City NY Auth Rev 7.70% 5/1/2015 AAA 1,450M 1,624,000
New York City Wtr Fin Auth 7 3/4% 6/15/2020 AAA 11,750M 13,585,938
New York St Dorm Auth Revs 7.70% 5/15/2012 AAA 12,850M 14,632,938
New York St Med Care Facs FHA+ 8% 2/15/2025 AAA 3,805M 4,161,719
New York St Med Care Facs Fin Agy Rev 8 7/8% 8/15/2007 AAA 4,855M 5,401,188
New York St Med Care Facs Fin Agy Rev 7 1/2% 2/15/2021 AAA 2,150M 2,451,000
New York St Med Care Facs Fin Hosp & Nursing Home
FHA+ 7.70% 2/15/2022 AAA 4,150M 4,601,312
New York St Med Care Facs Fin Hosp & Nursing Home
FHA+ 8% 2/15/2028 AAA 2,240M 2,503,200
New York State Dorm Auth Rev 7.10% 7/1/1996 AAA 5,755M 5,949,230
Puerto Rico Aqu & Sewer 10 1/4% 7/1/2009 AAA 2,000M 2,750,000
Puerto Rico Commonwealth 7 3/4% 7/1/2006 AAA 4,500M 5,000,625
Puerto Rico Commonwealth 7.30% 7/1/2020 AAA 1,000M 1,127,500
Puerto Rico Commonwealth 6.80% 7/1/2021 AAA 2,000M 2,242,500
Puerto Rico Commonwealth Hwy 8% 7/1/2005 AAA 550M 614,625
Puerto Rico Commonwealth Hwy 8 1/8% 7/1/2013 AAA 3,300M 3,700,125
Puerto Rico Commonwealth Hwy 7 3/4% 7/1/2016 AAA 1,000M 1,147,500
Puerto Rico Elec Pwr Auth 8 3/8% 7/1/2007 AAA 2,500M 2,750,000
Puerto Rico Elec Pwr Auth 8% 7/1/2008 AAA 7,000M 7,822,500
Total 83,666,237
===========
General Obligation Puerto Rico Commonwealth RIBS FSA+ 7.432% 7/1/2020++ AAA 12,000M 11,385,000
State Puerto Rico Commonwealth 6 1/2% 7/1/2023 A 1,500M 1,533,750
3.88% Total 12,918,750
===========
Education New York St Dorm Auth Revs/St Univ Ed Fac-Ser B 7 1/2% 5/15/2011 BBB 4,800M 5,436,000
7.83% New York St Dorm Auth Revs/City Univ MBIA+ 6 7/8% 7/1/2014 AAA 5,400M 5,865,750
New York St Dorm Auth Revs/City Univ FGIC+ 7% 7/1/2014 AAA 4,425M 4,723,687
New York St Dorm Auth Revs/City Univ AMBAC+ 6 1/4% 7/1/2016 AAA 2,365M 2,427,080
New York St Dorm Auth Revs/Cornell Univ 7 3/8% 7/1/2020 AA 5,075M 5,512,718
New York St Dorm Auth Revs/Univ Rochester-Ser A 6.40% 7/1/2013 A 2,030M 2,095,975
Total 26,061,210
===========
Finance Municipal Assistance Corp NY 7 5/8% 7/1/2008 Aa 2,515M 2,769,644
8.08% Municipal Assistance Corp NY 7 3/4% 7/1/2008 Aa 265M 293,156
New York St Loc Govt Assistance Corp 6 1/2% 4/1/2015 A 5,075M 5,144,781
New York St Loc Govt Assistance Corp 6% 4/1/2018 A 2,000M 1,942,500
New York St Loc Govt Assistance Corp 6 7/8% 4/1/2019 A 6,550M 6,869,312
New York St Loc Govt Assistance Corp 6 1/2% 4/1/2020 A 9,750M 9,896,250
Total 26,915,643
===========
Health and Hospital New York City Health & Hosp Corp RIBS AMBAC+ 6.792% 2/15/2011++ AAA 1,850M 1,704,313
11.59% New York City Health & Hosp Corp RIBS AMBAC+ 6.94% 2/15/2023++ AAA 6,250M 5,507,813
New York St Med Care Facs Fin/Beth Israel MBIA+ 7 1/2% 11/1/2010 AAA 1,250M 1,360,938
New York St Med Care Facs Fin/North Shore Univ Hosp
MBIA+ 7.20% 11/1/2020 AAA 7,140M 7,675,500
New York St Med Care Facs Fin/St Francis Hosp FGIC+ 7.60%
11/1/2008 AAA 1,000M 1,097,500
New York St Med Care Facs Fin/St Francis Hosp FGIC+ 7 5/8%
11/1/2021 AAA 1,775M 1,923,656
New York St Med Care Facs Fin Rev/Mental Health 7 1/2%
2/15/2021 BBB 10,585M 11,418,569
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl Facs
MBIA+ 6 1/4% 7/1/2016 AAA 3,800M 3,895,000
</TABLE>
7
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NEW YORK SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl Facs
MBIA+ 6 1/4% 7/1/2024 AAA $ 3,900M $ 3,987,750
Total 38,571,039
===========
Housing New York St Mtge Agy Rev FHA+ 9 3/4% 10/1/2010 Aa 15M 15,619
1.29% New York St Mtge Agy Rev Homeowner Mtge-Ser 44
AMT 7 1/2% 4/1/2026 Aa 2,500M 2,675,000
Puerto Rico Hsg Fin Corp GNMA+ 6.85% 10/15/2024 AAA 1,550M 1,608,125
Total 4,298,744
===========
Industrial Revenue New York City Ind Dev Agy Civil Fac Rev/Natl Tennis Ctr
Bonds FSA+ 6 3/8% 11/15/2014 AAA 6,650M 6,857,813
3.10% New York City Ind Dev Agy Spcl Fac Rev/Terminal One Group
AMT 6% 1/1/2019 A 3,645M 3,453,638
Total 10,311,451
===========
Miscellaneous United Nations Dev Corp 6% 7/1/2026 A 4,200M 4,152,750
2.16% United Nations Dev Corp 6 1/4% 7/1/2026 A 3,000M 3,037,500
Total 7,190,250
===========
Pollution Control New York St Energy Res & Dev/Central Hudson Gas & Elec
Revenue MBIA+ AMT 8 3/8% 12/1/2028 AAA 1,965M 2,181,150
9.85% New York St Energy Res & Dev/Bklyn Union Gas
MBIA+ AMT 6 3/4% 2/1/2024 AAA 12,800M 13,360,000
New York St Energy Res & Dev/Bklyn Union Gas
RIBS AMT 9.412% 7/1/2026++ A 4,000M 4,415,000
New York St Environmental Fac Poll Ctrl Rev St Wtr 7 1/2%
6/15/2012 Aa 7,000M 7,682,500
New York St Environmental Fac Poll Ctrl Rev St Wtr 6 7/8%
6/15/2014 Aa 4,780M 5,138,500
Total 32,777,150
===========
Power New York St Energy Res & Dev/Con Edison AMT 7 3/8% 7/1/2024 Aa 1,465M 1,532,756
16.01% New York St Energy Res & Dev/Con Edison AMT 7 1/2% 7/1/2025 Aa 2,700M 2,841,750
New York St Energy Res & Dev/Con Edison MBIA+ AMT 7 1/8%
12/1/2029 AAA 2,350M 2,543,875
New York St Energy Res & Dev Gas Facs Rev/Bklyn Union Gas
MBIA+ 7% 12/1/2020 AAA 2,500M 2,590,625
New York St Energy Res & Dev Poll Ctrl Rev/Niagara Mohawk
FGIC+ 7.20% 7/1/2029 AAA 11,600M 12,818,000
New York St Pwr Auth 8% 1/1/2017 Aa 6,515M 7,101,350
New York St Pwr Auth 6 1/2% 1/1/2019 Aa 5,500M 5,685,625
Puerto Rico Elec Pwr Auth 7% 7/1/2021 A 17,010M 18,200,700
Total 53,314,681
===========
Solid Waste .72% Dutchess Co Resource Recovery FGIC+ 7 1/2% 1/1/2009 AAA 2,200M 2,395,250
Transportation Metropolitan Trans Auth NY AMBAC+ 7 1/2% 7/1/2017 AAA 2,310M 2,468,813
5.96% Metropolitan Trans Auth NY Ser O MBIA+ 6 1/4% 7/1/2014 AAA 4,710M 4,810,088
Metropolitan Trans Auth NY Svc Contact Commuter Facs 6% 7/1/2019 Baa 1,350M 1,282,500
New York St Twy Auth Gen Rev Ser C FGIC+ 6% 1/1/2015 AAA 3,850M 3,854,813
Niagara NY Frontier Trans Auth Arpt Rev/Greater Buffalo Intl
AMBAC+ 6% 4/1/2024 AAA 1,500M 1,494,375
Port Auth NY & NJ Cons-65th Ser FGIC+ 7% 9/1/2024 AAA 1,500M 1,569,375
Triborough Brdg & Tunl Auth 8 1/8% 1/1/2012 Aa 4,000M 4,375,000
Total 19,854,964
===========
Water and Sewer New York City Muni Wtr Fin Auth Wtr & Sewer Sys Rev 6% A 2,750M 2,681,250
2.01% 6/15/2019
New York City Muni Wtr Fin Auth Wtr & Sewer Sys Rev
FGIC+ 6% 6/15/2019 AAA 1,750M 1,741,250
</TABLE>
8
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NEW YORK SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
New York City Muni Wtr Fin Auth Wtr & Sewer Sys Rev
AMBAC+ 6.20% 6/15/2021 AAA $ 2,230M $ 2,257,875
Total 6,680,375
============
Total Municipal Bonds 97.61% (Cost $314,861,738) 324,955,744
============
<CAPTION>
OTHER ASSETS, LESS LIABILITIES 2.39%
<S> <C> <C>
Cash and Receivables,
Net of Liabilities 7,941,001
Net Assets (equivalent to $10.67 a share on 31,201,780 shares of
100% $.001 par value capital stock outstanding; authorized,
40,000,000 shares) $332,896,745
</TABLE>
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
March 31, 1995.
See Notes to Financial Statements.
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
TEXAS SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moodys Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Bexar Co TX Health Facs 6.70% 6/15/2009 AAA $ 1,000M $ 1,092,500
22.29% Board of Regents TX A&M Univ 7.80% 8/15/2009 AAA 900M 979,875
Bryant TX Util Sys Rev 8.05% 7/1/1999 AAA 2,200M 2,455,750
Colorado River TX Muni Wtr AMBAC+ 6 5/8% 1/1/2021 AAA 1,000M 1,075,000
Dallas Co TX Util & Reclamation Dist MBIA+ 8.30% 2/15/2016 AAA 700M 764,750
Harris Co TX Health Facs Dev Corp Rev/Hermann Trust
9% 10/1/2017 AAA 2,500M 2,790,625
Harris Co TX 7.70% 5/1/2003 AAA 415M 454,944
Harris Co TX Detention MBIA+ 7.80% 12/15/2011 AAA 1,110M 1,237,650
Houston TX Wtr & Sewer Sys Rev Prior Lien MBIA+
7.40% 12/1/2018 AAA 1,000M 1,128,750
Lower CO River Auth TX MBIA+ 7 5/8% 1/1/2016 AAA 925M 1,008,250
North Central TX Health MBIA+ 7 7/8% 7/1/2018 AAA 750M 813,750
Puerto Rico Commonwealth 7.30% 7/1/2020 AAA 500M 563,750
Puerto Rico Commonwealth Hwy 6 5/8% 7/1/2018 AAA 122M 135,439
Puerto Rico Pub Bldg Auth 7 7/8% 7/1/2007 AAA 500M 545,000
San Antonio TX Elec & Gas Rev 10 1/2% 2/1/2013 AAA 1,000M 1,166,250
Texas St 8.10% 6/1/2007 AAA 1,090M 1,193,550
Texas St 7 1/8% 4/1/2020 AAA 4,500M 4,978,125
Texas St Tnpk Auth Dallas Northwy Rev AMBAC+ 7 1/8% 1/1/2015 AAA 250M 272,813
Total 22,656,771
==========
General Obligation Texas St RIBS 8.871% 9/30/2011++ AA 6,000M 6,600,000
State Texas St AMT 6.30% 6/1/2014 AA 2,000M 2,035,000
15.22% Texas St RIBS 6.97% 12/1/2023++ AA 6,000M 5,115,000
Texas St Wtr Dev Bd 7.15% 8/1/2035 AA 1,600M 1,720,000
Total 15,470,000
==========
General Obligation Clear Creek TX Indpt Sch Dist 4 3/4% 2/1/2015 AAA 1,500M 1,276,875
Local Conroe TX Indpt Sch Dist 6.60% 8/15/2018 AAA 1,500M 1,591,875
5.80% Harris Co TX 6 1/8% 8/15/2020 AA 520M 526,500
Tarrant Co TX Jr Coll Dist 4 5/8% 2/15/2015 AA 3,000M 2,501,250
Total 5,896,500
==========
Education Texas St Higher Ed Coord AMT 7.70% 10/1/2025 A 990M 1,044,450
2.32% Texas St Pub Fin Auth Bldg Rev Ref-TX St Technical Coll
MBIA+ 6 1/4% 8/1/2009 AAA 1,250M 1,312,500
Total 2,356,950
==========
</TABLE>
9
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
TEXAS SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Finance .48% Texas St Pub Fin Auth Bldg Rev AMBAC+ 5 3/4% 2/1/2015 AAA $ 500M $ 486,875
Health and Hospital Abilene TX Health Facs Dev Corp Hosp Rev Ref & Imp/Hendric
22.66% MBIA+ 6.15% 9/1/2025 AAA 1,000M 987,500
Amarillo TX Health Facs Corp LINK FSA+ 6.562% 1/1/2022 AAA 8,000M 8,250,000
Amarillo TX Health Facs Corp LINK FSA+ 6.562% 1/1/2022 AAA 7,000M 7,218,750
Bexar Co TX Health Facs MBIA+ 7 1/2% 8/15/2010 AAA 750M 825,938
Harris Co TX Health Facs 7.10% 7/1/2021 AA 3,400M 3,574,250
North Central TX Health Facs 9 1/4% 11/1/2005 AA 95M 99,275
North Central TX Health Facs Dev Corp Rev Reg Fxd Opt Bds
LINK MBIA+ 6.685% 6/22/2021 AAA 2,000M 2,072,500
Total 23,028,213
============
Housing Dallas TX Hsg Corp Cap Prjts/Estell Vlg Apts 7 7/8% 12/1/2009 BBB* 530M 535,300
.67% Texas Hsg Agy AMT 8.40% 1/1/2021 Aa 140M 148,575
Total 683,875
============
Industrial Revenue Brazos River Auth TX MBIA+ 8.10% 5/1/2019 AAA 750M 817,500
Bonds Brazos River Auth TX 8 1/4% 5/1/2019 A 1,000M 1,071,250
13.10% Harris Co TX Ind Dev Corp Marine Term & Wtr Poll Ctrl Rev
6 5/8% 2/1/2024 A 1,500M 1,509,375
Matagorda Co TX Nav Dist 7.70% 2/1/2019 A 3,000M 3,172,500
Matagorda Co TX Nav Dist FGIC+ 7.70% 2/1/2019 AAA 240M 255,600
Puerto Rico Ind Med & Environmental Ctrl/Baxter Lab 8%
9/1/2012 A 2,315M 2,563,862
Puerto Rico Ind Med & Environmental Ctrl/Upjohn 7 1/2%
12/1/2023 AA 1,500M 1,638,750
Texas City TX Ind Dev Corp Marine Term Rev 7 3/8% 10/1/2020 A 2,000M 2,287,500
Total 13,316,337
============
Miscellaneous .87% Texas Correctional Facs MBIA+ 5% 3/15/2014 AAA 1,000M 885,000
============
Pollution Control
Revenue 4.07% Red River Auth TX Poll AMT 6 7/8% 4/1/2017 AA 4,000M 4,135,000
============
Power Austin TX Util Sys 7.80% 11/15/2012 A 640M 702,400
3.34% Texas Muni Pwr Agy Rev AMBAC+ 6 3/4% 9/1/2012 AAA 2,500M 2,687,500
Total 3,389,900
============
Transportation Houston TX Arpt Sys Rev MBIA+ AMT 8.20% 7/1/2017 AAA 1,500M 1,663,125
2.08% Puerto Rico Commonwealth Hwy 6 5/8% 7/1/2018 A 433M 445,571
Total 2,108,696
============
Water and Sewer Puerto Rico Commonwealth Aqu & Sewer 7 7/8% 7/1/2017 A 2,000M 2,177,500
3.04% Texas Wtr Resource Fin Auth 7 5/8% 8/15/2008 A 500M 534,375
Texas Wtr Resource Fin Auth AMBAC+ 7 1/2% 8/15/2013 AAA 350M 373,625
Total 3,085,500
============
Total Municipal Bonds 95.94% (Cost $96,432,957) 97,499,617
============
<CAPTION>
OTHER ASSETS, LESS LIABILITIES 4.06%
<S> <C> <C> <C> <C>
Short-Term Los Angeles Co CA Tax & Rev Anticipation Notes
Securities 4 1/2% 6/30/1995 (Cost $3,801,257) MIG1 3,800M 3,801,406
============
Cash and Receivables,
Net of Liabilities 323,686
Total Other Assets, Less Liabilities 4,125,092
============
Net Assets (equivalent to $9.87 a share on 10,292,929 shares of $.001
100.00% par value capital stock outstanding; authorized,
40,000,000 shares) $101,624,709
============
</TABLE>
* This security has not been rated by an independent ratings service but is,
in Lord Abbett's opinion, of comparable quality.
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the
rate in effect at March 31, 1995.
See Notes to Financial Statements.
10
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NEW JERSEY SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Bergen Co NJ Util Auth FGIC+ 7 3/4% 3/15/2013 AAA $ 2,000M $ 2,165,000
26.14% Hudson Co NJ Certificate Correctional Fac MBIA+ 7.60% 12/1/2021 AAA 10,225M 11,349,750
Hudson Co NJ Util Auth Sys Rev 10% 7/1/2011 AAA 1,000M 1,290,000
Monmouth Co NJ MBIA+ 6 7/8% 8/1/2012 AAA 750M 825,938
Monmouth Co NJ Muni Util Imp Auth MBIA+ 6 3/4% 2/1/2013 AAA 500M 550,000
New Jersey Health Care Facs Fin Auth Rev AMBAC+ 8% 7/1/2018 AAA 460M 511,750
New Jersey St 7.30% 4/15/2010 AAA 290M 317,550
New Jersey St Ed Facs Auth 8 3/8% 7/1/2012 AAA 500M 538,125
New Jersey St Ed Facs Auth AMBAC+ 7.20% 7/1/2019 AAA 320M 353,200
New Jersey St ETM 7.10% 4/1/2011 AAA 305M 338,550
New Jersey St Hwy Auth 7 1/4% 1/1/2016 AAA 250M 274,375
Northeast Monmouth Co NJ MBIA+ 6.70% 11/1/2016 AAA 1,340M 1,458,925
Puerto Rico Commonwealth MBIA+ 6.60% 7/1/2013 AAA 475M 527,250
Puerto Rico Commonwealth 7.70% 7/1/2020 AAA 5,000M 5,731,250
Puerto Rico Commonwealth 6.80% 7/1/2021 AAA 2,150M 2,410,688
Puerto Rico Commonwealth Hwy 8% 7/1/2003 AAA 750M 838,125
Puerto Rico Commonwealth Hwy 6 1/2% 7/1/2022 AAA 4,400M 4,856,500
Puerto Rico Ind Med & Environmental 9 3/8% 12/1/2007 AAA 2,000M 2,275,000
Puerto Rico Pub Bldg Auth 8 7/8% 7/1/2012 AAA 2,000M 2,063,240
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2021 AAA 1,250M 1,407,813
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2021 AAA 1,880M 2,117,350
Rutgers St Univ NJ 7.90% 5/1/2010 AAA 400M 442,500
Rutgers St Univ NJ Univ Rev 7.90% 5/1/2008 AAA 1,230M 1,360,688
Stony Brook Regl Sewer Auth NJ Rev 7.40% 12/1/2009 AAA 1,000M 1,113,750
Tinton Falls NJ Sch Bd Ed FSA+ 6 1/2% 6/15/2017 AAA 1,000M 1,083,750
Union Co NJ 6 1/2% 2/1/2011 AAA 1,000M 1,087,500
Virgin Islands Pub Fin Auth 7.30% 10/1/2018 AAA 1,650M 1,850,063
Total 49,138,630
============
General Obligation Puerto Rico Commonwealth LINK MBIA+ 5.782% 7/1/2008 AAA 5,400M 5,454,000
State Puerto Rico Commonwealth RIBS MBIA+ 7.384% 7/1/2008++ AAA 5,000M 5,068,750
5.60% Total 10,522,750
============
General Obligation Keansburg NJ 6.80% 12/1/2010 A 1,000M 1,063,750
Local Morristown NJ FSA+ 6 1/2% 8/1/2019 AAA 3,440M 3,603,400
5.97% Newark NJ AMBAC+ 4.90% 12/1/2010 AAA 1,300M 1,183,000
Paterson NJ FSA+ 9.30% 2/15/2004 AAA 4,200M 5,360,250
Total 11,210,400
============
Education Essex Co NJ Imp Auth Rev GTD-Coll AMBAC+ 7% 12/1/2024 AAA 1,750M 1,883,438
4.63% New Jersey St Ed Facs Auth MBIA+ 6.85% 7/1/2019 AAA 750M 787,500
New Jersey St Ed Facs Auth 6 3/8% 7/1/2022 AA 5,000M 5,156,250
Rutgers St Univ NJ 6.85% 5/1/2021 AA 800M 857,000
University of Puerto Rico 6 1/2% 6/1/2013 A 25M 25,375
Total 8,709,563
============
Finance .55% Hamilton Township NJ Bd Ed (Ser B) FSA+ 7% 12/15/2015 AAA 970M 1,036,688
Health and Hospital New Jersey Health Care Facs FSA+ 6 3/4% 7/1/2020 AAA 735M 774,506
4.38% New Jersey Health Care Facs FHA+ 7 1/4% 2/15/2021 Aa 1,485M 1,590,806
New Jersey Health Care Facs FHA+ 6 1/2% 2/1/2022 AAA 970M 989,400
New Jersey Health Care Facs Fin Auth Rev CNLA+ 7% 7/1/2004 AAA 2,915M 3,224,718
New Jersey Health Care Facs Fin Auth Rev/Bayonne Hosp
FSA+ 6 1/4% 7/1/2012 AAA 1,600M 1,644,000
Total 8,223,430
============
</TABLE>
11
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
NEW JERSEY SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Housing New Jersey St Hsg & Mtge Fin MBIA+ 7.70% 10/1/2029 AAA $ 1,760M $ 1,859,000
1.64% Puerto Rico Hsg Fin Corp GNMA+ 7.65% 10/15/2022 AAA 595M 632,188
Virgin Islands Hsg Fin Auth Sing Fam Rev GNMA+ AMT 6 1/2%
3/1/2025 AAA 600M 598,500
Total 3,089,688
============
Industrial Revenue New Jersey Economic Dev Auth AMT 7 1/4% 3/1/2021 A 1,500M 1,580,625
Bonds New Jersey Economic Dev Auth 6.70% 8/1/2021 A 1,250M 1,289,063
3.04% Puerto Rico Tel Auth Rev LINK MBIA+ 5.365% 1/16/2015 AAA 3,000M 2,846,250
Total 5,715,938
============
Miscellaneous Monmouth Co NJ Imp Auth Rev Govt Loan MBIA+ 6.40% 12/1/2009 AAA 1,075M 1,140,843
3.55% New Jersey Economic Dev Auth 6 3/4% 6/15/2012 A 2,375M 2,481,875
New Jersey Economic Dev Auth Mkt Transition Fac Rev
MBIA+ 5 7/8% 7/1/2011 AAA 2,000M 2,000,000
New Jersey Sports & Expo Auth Rev 8% 1/1/2025 BBB* 1,000M 1,043,750
Total 6,666,468
============
Pollution Control Cape May Co NJ Ind Poll Ctrl Rev Fin Auth MBIA+ 7% 11/1/2029 AAA 500M 537,500
Revenue Union Co NJ Ind Poll Ctrl Fin Auth Poll Ctrl Rev 5.80% A 750M 744,375
.68% 9/1/2009
Total 1,281,875
============
Power Essex Co NJ Imp Auth Rev Orange Muni Util & Lease
14.65% MBIA+ 6.80% 7/1/2014 AAA 1,710M 1,831,837
Guam Pwr Auth Rev 6 1/4% 10/1/2014 BBB 500M 501,250
Guam Pwr Auth Rev Ser A 6 3/4% 10/1/2024 BBB 2,000M 2,007,500
Puerto Rico Elec Pwr LINK FSA+ 6.30% 7/1/2018 AAA 16,000M 16,400,000
Puerto Rico Elec Pwr Auth 7 1/8% 7/1/2014 A 715M 756,112
Puerto Rico Elec Pwr Auth RIBS FSA+ 7.648% 7/1/2023++ AAA 5,000M 4,837,500
Raritan Township NJ Muni Util Auth 6.45% 5/1/2012 A 1,180M 1,205,075
Total 27,539,274
============
Transportation New Jersey Economic Dev Auth 7% 7/1/2016 BBB* 5,545M 5,711,350
17.39% New Jersey St Tnpk Auth 6 1/2% 1/1/2016 A 500M 528,750
New Jersey St Tnpk Auth Ser C MBIA+ 6 1/2% 1/1/2016 AAA 5,000M 5,362,500
Port Auth NY & NJ AMT 7 7/8% 3/1/2024 AA 2,990M 3,120,812
Port Auth NY & NJ 7.35% 10/1/2027 AA 5,500M 6,077,500
Port Auth NY & NJ 6 1/8% 6/1/2094 AA 12,000M 11,880,000
Total 32,680,912
============
Water and Sewer Camden Co NJ Muni Util Auth FGIC+ 8 1/4% 12/1/2017 AAA 3,575M 3,919,093
5.13% Middlesex Co NJ Util FGIC+ 6 1/2% 9/15/2011 AAA 1,000M 1,045,000
New Jersey Economic Dev Auth 7% 10/1/2017 A 1,250M 1,281,250
New Jersey Economic Dev Auth MBIA+ AMT 5 1/4% 2/1/2029 AAA 950M 836,000
New Jersey Wastewtr MBIA+ 7% 5/15/2006 AAA 500M 533,750
New Jersey Wastewtr 6 7/8% 6/15/2009 AA 1,905M 2,033,587
Total 9,648,680
============
Total Municipal Bonds 93.35% (Cost $171,356,494) 175,464,296
============
<CAPTION>
OTHER ASSETS, LESS LIABILITIES 6.65%
<S> <C> <C>
Cash and Receivables,
Net of Liabilities 12,494,020
============
Net Assets (equivalent to $5.06 a share on 37,119,914 shares of $.001
100.00% par value capital stock outstanding; authorized,
40,000,000 shares) $187,958,316
============
</TABLE>
* This security has not been rated by an independent ratings service but is, in
Lord Abbett's opinion, of comparable quality.
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the
rate in effect at March 31, 1995.
See Notes to Financial Statements.
12
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT SERIES March 31, 1995 Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Connecticut St 6 1/2% 3/15/2009 AAA $ 1,000M $ 1,088,750
24.71% Connecticut St 6 3/4% 3/1/2011 AAA 100M 109,500
Connecticut St 6 1/2% 3/15/2012 AAA 1,000M 1,088,750
Connecticut St Health & Ed/St Raphael Hosp AMBAC+ 7 1/2%
7/1/2014 AAA 1,000M 1,098,750
Connecticut St Spcl Tax Oblig Rev 6.80% 6/1/2006 AAA 1,250M 1,376,563
Connecticut St Spcl Tax Oblig Rev 7 1/8% 6/1/2007 AAA 2,095M 2,338,544
Puerto Rico Commonwealth FGIC+ 7.10% 7/1/2002 AAA 1,400M 1,566,250
Puerto Rico Commonwealth 7.70% 7/1/2020 AAA 4,500M 5,158,125
Puerto Rico Commonwealth Hwy 7 3/4% 7/1/2016 AAA 750M 860,625
Puerto Rico Commonwealth Hwy 6 5/8% 7/1/2018 AAA 583M 647,992
Puerto Rico Elec Pwr Auth 9 1/8% 7/1/2015 AAA 1,250M 1,302,163
Puerto Rico Pub Bldg Auth 7 7/8% 7/1/2007 AAA 3,000M 3,270,000
Puerto Rico Pub Bldg Auth 8 7/8% 7/1/2012 AAA 1,000M 1,031,620
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2021 AAA 1,725M 1,942,781
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2021 AAA 250M 281,563
Virgin Islands Pub Fin Auth 7.30% 10/1/2018 AAA 3,800M 4,260,750
Total 27,422,726
============
General Obligation
State .92% Puerto Rico Commonwealth 6.45% 7/1/2017 A 1,000M 1,022,500
============
General Obligation Hartford CT 6 1/2% 12/15/2005 AA 730M 782,013
Local Killingly CT 7 1/4% 12/15/2004 A 250M 267,500
2.66% Monroe CT 6.60% 4/15/2005 A 100M 109,000
Montville CT 6.70% 6/15/2009 Aa 550M 611,188
Montville CT 6.70% 6/15/2010 Aa 575M 638,250
Portland CT 7.10% 12/15/2000 A 100M 108,375
Redding CT 6.60% 4/15/2010 Aa 100M 110,875
Voluntown CT 6 3/4% 10/1/2002 A 100M 108,125
Watertown CT 6 1/2% 6/15/2003 A 100M 106,625
West Haven CT MBIA+ 6 1/2% 6/15/2006 AAA 100M 109,250
Total 2,951,201
============
Education Connecticut St Health & Ed LINK 5.786% 6/10/2030 AAA 9,600M 9,504,000
11.54% Connecticut St Health & Ed/Yale Univ RIBS 7.527% 6/10/2030++ AAA 2,000M 1,952,500
Connecticut St Higher Ed AMT 7 3/8% 11/15/2005 A 825M 863,156
Connecticut St Higher Ed AMT 7.20% 11/15/2010 A 460M 484,725
Total 12,804,381
============
Health and Connecticut St Health & Ed/Bridgeport Hosp MBIA+ 6 5/8% 7/1/2018 AAA 1,250M 1,307,813
Hospital Connecticut St Health & Ed/Loomis Chaffee Sch 6% 7/1/2015 AAA 250M 251,563
7.06% Connecticut St Health & Ed/New Britain Gen Hosp AMBAC+ 6% AAA 1,350M 1,334,813
7/1/2024
Connecticut St Health & Ed/St Marys Hosp 7 3/8% 7/1/2020 Baa 2,750M 2,763,750
Connecticut St Health & Ed/Waterbury Hosp FSA+ 7% 7/1/2020 AAA 100M 105,500
Connecticut St Health & Ed/William Backus Hosp 6 3/8% 7/1/2022 A 850M 826,625
Connecticut St Health & Ed/Yale-New Haven Hosp MBIA+ 7%
7/1/2010 AAA 75M 79,500
Connecticut St Health & Ed/Yale-New Haven Hosp MBIA+ 7.10%
7/1/2025 AAA 1,105M 1,172,681
Total 7,842,245
============
Housing Connecticut St Hsg Fin Auth FHA+ AMT 7.20% 11/15/2008 AA 950M 1,016,500
8.03% Connecticut St Hsg Fin Auth 6.90% 5/15/2020 AA 1,000M 1,032,500
Connecticut St Hsg Fin Auth 6 3/4% 11/15/2023 AA 3,250M 3,331,250
Connecticut St Hsg Fin Auth AMT 6 1/2% 5/15/2027 AA 3,525M 3,529,405
Total 8,909,655
============
</TABLE>
13
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
CONNECTICUT SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Industrial Revenue Eastern CT Resource Recovery/Wheelabrator Lisbon Prjt
Bonds AMT 5 1/2% 1/1/2020 A $ 4,000M $ 3,295,000
7.18% Puerto Rico Ind Med & Environmental/Upjohn 7 1/2% 12/1/2023 AA 1,000M 1,092,500
Puerto Rico Ind Med & Environmental/American Home Product
5.10% 12/1/2018 A 2,000M 1,750,000
Puerto Rico Ind Med & Environmental/Warner Lambert 7.60%
5/1/2014 Aa 1,650M 1,827,375
Total 7,964,875
============
Miscellaneous Connecticut Middletown Courthouse MBIA+ 6 1/4% 12/15/2010 AAA 575M 592,250
9.59% Connecticut St Dev Govt Lease Rev MBIA+ 6.60% 6/15/2014 AAA 500M 525,625
New Haven CT Air Rights Pkg MBIA+ 6 1/2% 12/1/2015 AAA 9,175M 9,530,530
Total 10,648,405
============
Pollution Control
Revenue 3.29% Connecticut St Dev Auth/Pfizer Inc 6.55% 2/15/2013 AAA 3,450M 3,648,375
============
Power Connecticut St Dev Auth/New England Pwr Co 7 1/4% 10/15/2015 A 760M 809,400
5.44% Puerto Rico Elec Pwr Auth RIBS FSA+ 8.163% 7/1/2018++ AAA 5,000M 5,225,000
Total 6,034,400
============
Solid Waste Connecticut St Dev Auth Solid Waste Disp Facs Rev AMT 7%
7.38% 7/1/2025 AAA 2,000M 2,140,000
Connecticut St Resource Recovery/American Ref Fuel AMT 8%
11/15/2015 AA 1,100M 1,203,125
Connecticut St Resource Recovery/American Ref Fuel AMT 6.45%
11/15/2022 A 4,985M 4,854,143
Total 8,197,268
============
Transportation Connecticut St Spcl Tax Oblig Rev 10% 10/1/2000 AA 4,000M 4,965,000
5.71% Connecticut St Spcl Tax Oblig Rev FGIC+ 6.10% 10/1/2011 AAA 1,000M 1,028,750
Puerto Rico Commonwealth Hwy 5 3/4% 7/1/2018 A 300M 281,250
Puerto Rico Commonwealth Hwy 6 5/8% 7/1/2018 A 67M 68,803
Total 6,343,803
============
Water and Sewer Connecticut St Clean Wtr Fd 10% 7/1/1995 AA 720M 729,900
3.99% Connecticut St Clean Wtr Fd 7% 1/1/2011 AA 400M 431,000
Puerto Rico Commonwealth Aqu & Sewer 7 7/8% 7/1/2017 A 3,000M 3,266,250
Total 4,427,150
============
Total Municipal Bonds 97.50% (Cost $107,864,917) 108,216,984
============
OTHER ASSETS, LESS LIABILITIES 2.50%
Cash and Receivables,
Net of Liabilities 2,779,364
============
Net Assets (equivalent to $9.93 a share on 11,174,258 shares of $.001 par value capital
100.00% stock outstanding; authorized, 40,000,000 shares) $110,996,348
============
</TABLE>
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
March 31, 1995.
See Notes to Financial Statements.
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
MISSOURI SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Central MO St Univ MBIA+ 7% 7/1/2014 AAA $ 150M $ 167,625
28.77% Missouri St Convention 6.90% 8/15/2021 AAA 12,250M 13,689,375
Missouri St Health & Ed MBIA+ 6 5/8% 6/1/2011 AAA 525M 576,188
Missouri St Health & Ed FGIC+ 6 7/8% 2/15/2013 AAA 2,100M 2,323,125
Missouri St Health & Ed MBIA+ 7% 11/15/2013 AAA 1,030M 1,156,175
Missouri St Health & Ed MBIA+ 6 1/2% 11/15/2017 AAA 1,195M 1,308,525
Missouri St 3rd St Bldg 7 1/2% 8/1/2007 AAA 3,000M 3,176,250
Puerto Rico Commonwealth 7 5/8% 7/1/2010 AAA 2,000M 2,285,000
</TABLE>
14
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
MISSOURI SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Puerto Rico Commonwealth 7.70% 7/1/2020 AAA $ 3,070M $ 3,518,988
Puerto Rico Commonwealth Hwy 6 1/2% 7/1/2022 AAA 125M 137,969
Puerto Rico Elec Pwr Auth 8% 7/1/2008 AAA 3,000M 3,352,500
Puerto Rico Ind Med & Environmental 9 3/8% 12/1/2007 AAA 3,135M 3,566,063
Springfield MO Sch Dist #12 FGIC+ 6 3/4% 3/1/2011 AAA 1,225M 1,330,656
Total 36,588,439
============
General Obligation Puerto Rico Commonwealth RIBS MBIA+ 7.384% 7/1/2008++ AAA 1,000M 1,013,750
State Puerto Rico Commonwealth RIBS FSA+ 7.432% 7/1/2020++ AAA 3,750M 3,557,813
3.60% Total 4,571,563
============
General Obligation
Local .91% St Peters MO 5.85% 1/1/2013 A 1,150M 1,155,750
============
Education Missouri Sch Bd Assistance Ctfs MBIA+ 7 3/8% 3/1/2006 AAA 980M 1,044,925
7.19% Missouri St Health & Ed Facs/St Louis Univ HS 6.35% 10/1/2014 A 1,600M 1,644,000
Platte Co MO Reorg Sch Dist 7 1/8% 1/1/2011 A 500M 535,000
Southeast MO St Univ Hsg Sys Rev MBIA+ 5 7/8% 4/1/2021 AAA 750M 742,500
St Louis MO Sch Dist FGIC+ 6% 4/1/2012 AAA 1,275M 1,295,719
University of MO Rev AMBAC+ 6 1/2% 11/1/2011 AAA 3,250M 3,408,438
University of MO Rev 5 1/2% 11/1/2023 AA 500M 467,500
Total 9,138,082
============
Finance Kansas City MO Muni Assistance AMBAC+ 6 5/8% 4/15/2015 AAA 5,225M 5,479,719
17.85% Kansas City MO Muni Assistance AMBAC+ 7 1/8% 4/15/2016 AAA 805M 865,375
Kansas City MO Muni Assistance AMBAC+ 6% 4/15/2020 AAA 13,780M 13,848,900
Puerto Rico Muni Fin Agy FSA+ 6% 7/1/2014 AAA 450M 453,375
St Louis MO Muni Fin Corp Leasehold Rev FGIC+ 6 1/4% 2/15/2012 AAA 2,000M 2,052,500
Total 22,699,869
============
Health and Hospital Jackson Co MO Ind Dev Rev/St Joseph Health Ctr 7% 7/1/2022 Baa 1,500M 1,543,125
12.33% Missouri St Health & Ed/BJC Health 6 1/2% 5/15/2020 AA 4,650M 4,830,188
Missouri St Health & Ed/Health Midwest MBIA+ 6 1/4% 6/1/2014 AAA 2,490M 2,555,363
Missouri St Health & Ed/Heartland Health Sys AMBAC+ 6.35%
11/15/2017 AAA 5,100M 5,233,875
Missouri St Health & Ed/SE Hosp MBIA+ 6 5/8% 6/1/2011 AAA 475M 495,780
Puerto Rico Ind Tourist Ed Med & Environmental Ctrl Facs
MBIA+ 6 1/4% 7/1/2024 AAA 1,000M 1,022,500
Total 15,680,831
============
Housing Missouri St Hsg Dev Comm GNMA+ AMT 6 3/4% 6/1/2024 AAA 355M 365,650
2.42% Missouri St Hsg Dev Comm GNMA+ 6.40% 12/1/2024 AAA 2,135M 2,145,675
Puerto Rico Hsg Fin Corp GNMA+ 7.80% 10/15/2021 AAA 80M 84,000
Puerto Rico Hsg Fin Corp GNMA+ 7.65% 10/15/2022 AAA 165M 175,313
Puerto Rico Hsg Fin Corp GNMA+ 6.85% 10/15/2024 AAA 300M 311,250
Total 3,081,888
============
Industrial Revenue
Bonds .47% Missouri St Environmental Imp & Energy/Union Elec 7.40%
5/1/2020 AA 550M 598,125
============
Miscellaneous Clay Co MO Pub Bldg Auth Leasehold FGIC+ 7% 5/15/2014 AAA 1,000M 1,077,500
4.32% St Louis Co MO Ind Dev Rev Arena Prjt AMT 7 7/8% 12/1/2024 BBB* 2,000M 2,040,000
St Louis MO Land Clearance Redev 7 3/4% 7/1/2021 BBB* 2,255M 2,370,568
Total 5,488,068
============
Pollution Control Missouri St Environmental Imp & Energy Res Wtr Poll Ctrl 7.20%
Revenue 7/1/2016 Aa 2,250M 2,508,750
3.61% Missouri St Environmental Imp & Energy Wtr Poll Rev 6.55%
7/1/2014 Aa 2,000M 2,082,500
Total 4,591,250
============
Power Puerto Rico Elec Pwr Auth 7% 7/1/2021 A 2,400M 2,568,000
5.39% Puerto Rico Elec Pwr Auth RIBS FSA+ 7.648% 7/1/2023++ AAA 2,500M 2,418,750
</TABLE>
15
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
MISSOURI SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Sikeston MO Elec MBIA+ 6 1/4% 6/1/2022 AAA $1,845M $ 1,872,675
Total 6,859,425
============
Transportation Kansas City MO Arpt Rev CGIC+ AMT 6.90% 9/1/2011 AAA 1,500M 1,605,000
2.52% Kansas City MO Arpt Rev CGIC+ 6 7/8% 9/1/2014 AAA 1,490M 1,598,025
Total 3,203,025
============
Water and Sewer Cape Girardeau MO Wtrwks Sys FGIC+ 6.40% 3/1/2012 AAA 1,150M 1,191,687
10.90% Kansas City MO Sewer Rev 6.40% 3/1/2010 Aa 730M 755,550
Kansas City MO Sewer Rev 6.40% 3/1/2011 Aa 780M 806,325
Kansas City MO Sewer Rev 6.40% 3/1/2012 Aa 755M 780,480
Kansas City MO Wtr Rev 6.40% 3/1/2012 AA 4,425M 4,574,343
Kansas City MO Wtr Rev 6.65% 12/1/2013 AA 2,800M 2,978,500
St Louis MO Wtr Rev FGIC+ 6% 7/1/2014 AAA 2,750M 2,777,500
Total 13,864,385
============
Total Municipal Bonds 100.28% (Cost $123,847,639) 127,520,700
============
<CAPTION>
OTHER ASSETS, LESS LIABILITIES (.28)%
<S> <C> <C> <C> <C>
Short-Term Securities University of Missouri Prjt Notes 4 1/2% 6/30/1995
(Cost $725,392) MIG1 725M 725,326
============
Cash and Receivables,
Net of Liabilities (1,077,696)
Total Other Assets, Less Liabilities (352,370)
============
Net Assets (equivalent to $4.99 a share on 25,460,293 shares of $.001 par
100.00% value capital stock outstanding; authorized, 40,000,000 shares) $127,168,330
============
</TABLE>
* This security has not been rated by an independent ratings service but is, in
Lord Abbett's opinion, of comparable quality.
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
March 31, 1995.
See Notes to Financial Statements.
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
HAWAII SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Hawaii St 6.90% 6/1/2002 AAA $ 1,000M $ 1,082,500
27.44% Hawaii St 7% 9/1/2003 AAA 500M 549,375
Hawaii St 7 1/8% 9/1/2009 AAA 700M 773,500
Hawaii St 7% 6/1/2010 AAA 2,430M 2,642,625
Hawaii St Dept Bdg & Fin/Pali Moni Med Ctr 7.60% 7/1/2010 AAA 200M 229,250
Hawaii St Dept Bdg & Fin/Pali Moni Med Ctr 7.65% 7/1/2019 AAA 1,000M 1,148,750
Honolulu HI City & Co 7% 10/1/2005 AAA 1,000M 1,081,250
Honolulu HI City & Co 7.10% 6/1/2006 AAA 1,000M 1,095,000
Honolulu HI City & Co 6.70% 8/1/2007 AAA 3,000M 3,277,500
Honolulu HI City & Co 7% 10/1/2007 AAA 1,500M 1,621,875
Honolulu HI City & Co 7.15% 6/1/2008 AAA 500M 550,625
Honolulu HI City & Co 7.15% 6/1/2010 AAA 1,000M 1,101,250
Honolulu HI City & Co 6.90% 12/1/2010 AAA 400M 439,000
Maui Co HI Bd Wtr ETM FGIC+ 5.85% 12/1/2000 AAA 490M 510,213
Maui Co HI Bd Wtr ETM FGIC+ 6% 12/1/2001 AAA 520M 546,000
Puerto Rico Commonwealth 7 5/8% 7/1/2010 AAA 375M 428,438
Puerto Rico Commonwealth 7.70% 7/1/2020 AAA 850M 974,313
Puerto Rico Commonwealth 6.80% 7/1/2021 AAA 1,000M 1,121,250
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2012 AAA 500M 563,125
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2012 AAA 450M 506,813
</TABLE>
16
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
HAWAII SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Puerto Rico Pub Bldg Auth 8 7/8% 7/1/2012 AAA $ 1,500M $ 1,547,430
Puerto Rico Pub Bldg Auth 6 7/8% 7/1/2021 AAA 2,000M 2,252,500
Total 24,042,582
===========
General Obligation Hawaii St 7% 6/1/2009 Aaa 1,000M 1,087,500
State Hawaii St 6% 10/1/2010 AA 500M 518,750
8.59% Hawaii St 6% 10/1/2012 AA 500M 515,000
Hawaii St 6 1/4% 1/1/2015 AA 2,500M 2,562,500
Puerto Rico Commonwealth RIBS FSA+ 7.432% 7/1/2020++ AAA 3,000M 2,846,250
Total 7,530,000
===========
General Obligation Hawaii Co HI FGIC+ 5.60% 5/1/2013 AAA 1,830M 1,770,525
Local Honolulu HI City & Co FGIC+ 5 1/2% 10/1/2011 AAA 1,000M 975,000
6.02% Honolulu HI City & Co FGIC+ 6 1/8% 6/1/2013 AAA 1,000M 1,026,250
Honolulu HI City & Co 6% 12/1/2015 AAA 1,000M 1,012,500
Maui Co HI 5 3/4% 1/1/2011 AAA 250M 248,750
Maui Co HI FGIC+ 5 3/4% 1/1/2013 AAA 250M 245,938
Total 5,278,963
===========
Education
.34% University of Hawaii Sys Rev AMBAC+ 5.45% 10/1/2006 AAA 300M 296,250
===========
Health and Hospital Hawaii St Dept Bdg & Fin/Queens Med Hosp FGIC+ 6 1/2% 7/1/2012 AAA 250M 254,062
4.40% Hawaii St Dept Bdg & Fin/St Francis Hosp CGIC+ 6 1/2% 7/1/2022 AAA 2,200M 2,238,500
Puerto Rico Ind Med & Environmental/St Luke Hosp 6 1/4% 6/1/2010 A 1,390M 1,363,938
Total 3,856,500
===========
Housing Hawaii St Hsg Fin & Dev Corp 5.70% 7/1/2013 Aa 480M 453,600
8.74% Hawaii St Hsg Fin & Dev Corp 5.85% 7/1/2017 Aa 4,450M 4,233,063
Hawaii St Hsg Fin & Dev Corp 5.70% 7/1/2018 A 500M 466,250
Hawaii St Hsg Fin & Dev Corp FNMA+ AMT 7.10% 7/1/2024 Aa 960M 985,200
Puerto Rico Hsg Fin Corp GNMA+ 7.65% 10/15/2022 AAA 75M 79,688
Puerto Rico Hsg Fin Corp GNMA+ 6.85% 10/15/2024 AAA 1,390M 1,442,125
Total 7,659,926
===========
Industrial Revenue Puerto Rico Ind Med & Environmental/Warner Lambert 7.60%
Bonds 5/1/2014 Aa 1,500M 1,661,250
6.23% Puerto Rico Tel Auth Rev LINK MBIA+ 5.365% 1/16/2015 AAA 4,000M 3,795,000
Total 5,456,250
===========
Power Hawaii St Dept Bdg & Fin/HI Elec MBIA+ AMT 7 3/8% 12/1/2020 AAA 2,500M 2,684,375
21.58% Hawaii St Dept Bdg & Fin/HI Elec MBIA+ AMT 6.55% 12/1/2022 AAA 1,000M 1,017,500
Hawaii St Dept Bdg & Fin/HI Elec MBIA+ AMT 6.60% 1/1/2025 AAA 2,750M 2,811,875
Hawaii St Dept Bdg & Fin Spcl Purp Mtge
LINK 5.538% 12/15/2023 AAA 10,000M 9,100,000
Puerto Rico Elec Pwr Auth 6% 7/1/2014 A 1,500M 1,462,635
Puerto Rico Elec Pwr Auth 7 1/8% 7/1/2014 A 365M 385,987
Puerto Rico Elec Pwr Auth RIBS FSA+ 7.648% 7/1/2023++ AAA 1,500M 1,451,250
Total 18,913,622
===========
Transportation Hawaii St Arpts Sys Rev MBIA+ AMT 7% 7/1/2018 AAA 2,125M 2,255,155
13.42% Hawaii St Arpts Sys Rev MBIA+ AMT 6 3/4% 7/1/2021 AAA 2,745M 2,830,780
Hawaii St Hbr Cap Imp Rev FGIC+ AMT 6 1/2% 7/1/2012 AAA 1,000M 1,027,500
Hawaii St Hbr Cap Imp Rev FGIC+ AMT 6 1/4% 7/1/2015 AAA 500M 501,875
Hawaii St Hbr Cap Imp Rev FGIC+ AMT 6 1/2% 7/1/2019 AAA 1,350M 1,373,625
Hawaii St Hbr Cap Imp Rev FGIC+ AMT 6 3/8% 7/1/2024 AAA 500M 505,000
Puerto Rico Commonwealth Hwy 6 3/4% 7/1/2005 A 1,000M 1,062,500
Puerto Rico Commonwealth Hwy 6 5/8% 7/1/2012 A 500M 514,375
</TABLE>
17
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
HAWAII SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Puerto Rico Commonwealth Hwy 5 3/4% 7/1/2018 A $ 1,800M $ 1,687,500
Total 11,758,310
===========
Water and Sewer
1.24% Puerto Rico Commonwealth Aqu & Sewer 7 7/8% 7/1/2017 A 1,000M 1,088,750
===========
Total Municipal Bonds 98.00% (Cost $85,612,816) 85,881,153
===========
<CAPTION>
OTHER ASSETS, LESS LIABILITIES 2.00%
<S> <C> <C>
Cash and Receivables,
Net of Liabilities 1,753,451
===========
Net Assets (equivalent to $4.82 a share on 18,168,159 shares of $.001
100.00% par value capital stock outstanding; authorized, 40,000,000
shares) $87,634,604
===========
</TABLE>
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
March 31, 1995.
See Notes to Financial Statements.
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
WASHINGTON SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Douglas Co WA Pub Util Dist No 001 Wells Hydroelec 8 3/4%
19.14% 9/1/2018 AAA $ 150M $ 196,875
King Co WA Sch Dist 6 3/4% 12/1/2008 AAA 2,565M 2,763,788
King Co WA Sch Dist No 411 Issaquah 7% 12/1/2009 AAA 2,000M 2,212,500
Lewis Co WA Pub Util Dist No 001 Cowlitz Falls Hydroelec
7% 10/1/2022 AAA 500M 559,375
Puerto Rico Pub Bldg Auth 7 7/8% 7/1/2007 AAA 1,000M 1,090,000
Seattle WA Muni Metro 6 7/8% 1/1/2014 AAA 500M 545,625
Seattle WA Muni Metro 6 7/8% 1/1/2031 AAA 500M 545,625
Tacoma WA Elec Sys Rev FGIC+ 7 3/8% 1/1/2009 AAA 500M 548,125
Washington St Pub Pwr Supply 7 3/8% 7/1/2012 AAA 1,790M 2,007,038
Washington St Pub Pwr Supply 7 1/4% 7/1/2015 AAA 1,250M 1,378,125
Washington St Pub Pwr Supply 10 1/4% 7/1/2015 AAA 1,100M 1,196,250
Washington St Pub Pwr Supply 8% 7/1/2017 AAA 475M 545,063
Washington St Pub Pwr Supply Sys Nuclear Prjt No 2 Rev
7 1/2% 7/1/2004 AAA 500M 563,125
Total 14,151,514
===========
General Obligation
State 1.94% Washington St Ref-Ser R-93B 5.70% 10/1/2015 AA 1,500M 1,436,250
===========
General Obligation King Co WA Sch Dist No 415 Kent AMBAC+ 7 1/2% 6/1/2008 AAA 500M 578,125
Local Mount Vernon WA AMBAC+ 6.85% 12/1/2014 AAA 1,285M 1,358,888
6.37% Pierce Co WA Sch Dist 5.45% 12/1/2013 A 2,875M 2,659,375
Whatcom Co WA 5 3/4% 12/1/2012 A 115M 112,125
Total 4,708,513
===========
Education Eastern Washington Univ WA Rev MBIA+ 5% 10/1/2018 AAA 1,045M 909,150
1.59% Washington St Higher Ed Facs Auth Rev CNLA+ 7% 10/1/2015 AAA 250M 264,688
Total 1,173,838
===========
Health and Hospital
2.56% Washington St Health Care Facs MBIA+ 6 5/8% 7/1/2020 AAA 1,825M 1,898,000
===========
Housing Skagit Co WA Hsg Auth Low Income Hsg Assistance Coll
5.58% GNMA+ 7% 6/20/2035 AAA 1,000M 1,050,000
Washington St Hsg Fin Comm Sing Fam Mtge Rev
GNMA+ AMT 6.65% 7/1/2016 AAA 1,000M 1,017,500
Washington St Hsg Fin Comm Sing Fam Mtge Rev
GNMA+ AMT 7.05% 7/1/2022 AAA 2,000M 2,057,500
Total 4,125,000
===========
</TABLE>
18
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
WASHINGTON SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Industrial Revenue Port Longview WA Ind Dev Corp Solid Waste Disp Rev
Bonds AMT 6 7/8% 10/1/2008 A $ 500M $ 534,375
1.31% Puerto Rico Tel Auth Rev RIBS MBIA+ 6.509% 1/16/2015++ AAA 500M 433,125
Total 967,500
===========
Miscellaneous
2.80% Pike Place Mkt Preservation 6.60% 12/1/2021 AA 2,000M 2,072,500
===========
Power Douglas Co WA Pub Util Dist No 001 Wells Hydroelec
36.78% AMBAC+ 8 3/4% 9/1/2006 AAA 6,555M 7,759,481
Douglas Co WA Pub Util Dist No 001 Wells Hydroelec
8 3/4% 9/1/2018 A 350M 437,062
Grant Co WA Pub Util Dist No 002 Wanapum Hydroelec
Rev 6 3/8% 1/1/2023 A 630M 631,575
Mason Co WA Pub Util Dist 6.35% 1/1/2013 A 1,040M 1,059,500
Puerto Rico Elec Pwr Auth RIBS FSA+ 7.648% 7/1/2023++ AAA 3,500M 3,386,250
Tacoma WA Elec Sys Rev LINK AMBAC+ 6.372% 1/2/2015 AAA 4,000M 4,100,000
Tacoma WA Elec Sys Rev RIBS AMBAC+ 8.637% 1/2/2015++ AAA 2,500M 2,621,875
Washington St Pub Pwr Supply Sys Nuclear Prjt No 2 Rev Spcl
FSA+ 5.26% 7/1/2012 AAA 8,000M 7,200,000
Total 27,195,743
===========
Solid Waste
.52% Snohomish Co WA MBIA+ 7% 12/1/2010 AAA 360M 382,500
===========
Transportation Port Seattle WA Rev AMT 7.60% 12/1/2009 AA 750M 834,375
7.51% Port Seattle WA Rev AMT 6.70% 11/1/2010 AA 250M 263,125
Port Seattle WA Rev AMBAC+ AMT 7.70% 12/1/2011 AAA 4,000M 4,455,000
Total 5,552,500
===========
Water and Sewer Bremerton WA Wtr & Sewer Rev FGIC+ 5 1/2% 9/1/2007 AAA 500M 493,750
9.63% Covington Wtr Dist WA Wtr Rev Ref AMBAC+ 6% 3/1/2015 AAA 660M 653,400
Pasco WA Wtr & Sewer Rev MBIA+ 6.40% 6/1/2014 AAA 865M 887,705
Renton WA Wtr & Sewer Rev 6.55% 11/1/2013 A 1,000M 1,036,250
Seattle WA Drain & Wtr Sewer Util 7% 12/1/2011 AA 950M 1,014,125
Seattle WA Muni Metro FGIC+ 6.60% 1/1/2032 AAA 2,250M 2,306,250
Tacoma WA Wtr Rev 5 1/2% 12/1/2013 Aa 750M 731,250
Total 7,122,730
===========
Total Municipal Bonds 95.73% (Cost $69,615,758) 70,786,588
===========
<CAPTION>
OTHER ASSETS, LESS LIABILITIES 4.27%
<S> <C> <C> <C> <C>
Short-Term Los Angeles Co CA Tax & Rev Anticipation Notes 4 1/2%
6/30/1995 MIG1 200M 200,074
Securities Texas St Tax & Rev Anticipation Notes 5% 8/31/1995 MIG1 1,600M 1,604,976
Total (Cost $1,804,942) 1,805,050
===========
Cash and Receivables,
Net of Liabilities 1,350,024
Total Other Assets, Less Liabilities 3,155,074
===========
Net Assets (equivalent to $4.81 a share on 15,367,365 shares of $.001 par value
100.00% capital stock outstanding; authorized, 40,000,000 shares) $73,941,662
===========
</TABLE>
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
++ The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
March 31, 1995.
See Notes to Financial Statements.
19
<PAGE>
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
MINNESOTA SERIES March 31, 1995
<TABLE>
<CAPTION>
Rating: S&P Principal Market Value
Security or Moody's Amount (Note 1a)
-------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Prerefunded Brainerd MN Health Care Facs/Benedictine Health-St Joseph Prjt
50.72% 8 3/8% 2/15/2020 AAA $ 525M $ 608,344
Breckenridge MN Hosp Facs Rev/Franciscan Sisters Healthcare
9 3/8% 9/1/2017 AAA 300M 336,750
Southern MN Muni Pwr Agy 9 1/2% 1/1/2017 AAA 150M 158,438
Total 1,103,532
==========
General Obligation
State 11.33% Minnesota St 5 1/4% 8/1/2024 AA 265M 246,450
==========
General Obligation
Local 4.54% Fairbault MN Indpt Sch Dist No 656 CGIC+ 5 3/4% 6/1/2015 AAA 100M 98,875
==========
Health and Hospital
4.62% Rochester MN Health Care Reg Fixed ARS LINK 6.026% 11/15/2015 AA 100M 100,500
==========
Housing 9.57% Minnesota St Hsg Fin Agy 7.10% 2/1/2021 A 205M 208,331
==========
Transportation 8.62% Puerto Rico Commonwealth Hwy 5 3/4% 7/1/2018 A 200M 187,500
==========
Water and Sewer Marshall MN Elec & Wtr Util 6.45% 7/1/2011 AAA 150M 156,750
11.94% Minnesota Pub Facs Auth Wtr Poll Ctrl Rev 6 1/4% 3/1/2016 AAA 100M 103,000
Total 259,750
==========
Total Municipal Bonds 101.34% (Cost $2,182,513) 2,204,938
==========
<CAPTION>
OTHER ASSETS, LESS LIABILITIES (1.34)%
<S> <C> <C>
Cash and Receivables,
Net of Liabilities (29,114)
==========
Net Assets (equivalent to $4.91 a share on 442,918 shares of $.001 par
100.00% value capital stock outstanding; authorized, 40,000,000 shares) $2,175,824
==========
</TABLE>
+ Insured or guaranteed by the indicated municipal bond insurance corporation
or Federal agency.
See Notes to Financial Statements.
20
<PAGE>
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended 3/31/95
----------------------------------------------------------------------------------------------
National New York Texas New Jersey Connecticut Missouri Hawaii
Investment Income Series Series Series Series Series Series Series
-------------- ------------ ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Income
Interest $ 22,053,610 $ 11,191,654 $ 3,373,664 $ 6,135,559 $ 3,415,181 $ 3,937,018 $ 2,805,991
Expenses (Note 2)
Management fee 1,524,617 809,457 246,817 456,097 261,220 298,456 212,638
Management fees waived - - (123,261) (136,595) (199,574) (90,447) (126,409)
12b-1 distribution plan 788,882 395,477 115,714 258,885 147,998 152,227 120,257
Shareholder servicing 145,000 110,000 36,000 42,000 20,000 53,000 16,500
Registration 4,000 - 3,000 - 3,000 500 500
Reports to shareholders 18,000 9,000 3,000 9,000 4,500 4,750 6,000
Audit and tax 36,000 24,000 7,000 18,200 10,500 11,100 11,100
Legal 5,000 3,000 600 2,000 900 900 1,500
Directors' fees 15,000 9,000 600 3,000 1,200 1,500 1,050
Organization (Note 1e) - - - 1,824 1,584 846 450
Other 19,320 9,157 10,082 7,640 9,272 8,451 9,463
Expenses assumed
by Lord, Abbett & Co. - - - - - - -
Net expenses 2,555,819 1,369,091 299,552 662,051 260,600 441,283 253,049
Net investment income 19,497,791 9,822,563 3,074,112 5,473,508 3,154,581 3,495,735 2,552,942
Realized and Unrealized Gain
(Loss) on Investments
(Note 6)
Realized gain (loss) from
security transactions
Proceeds from sales 1,012,234,798 241,550,277 77,356,224 179,010,433 45,951,935 50,236,114 73,345,091
Cost of securities sold 1,019,126,192 249,091,775 77,913,243 180,555,314 46,839,255 53,487,855 75,710,635
Net realized gain (loss) (6,891,394) (7,541,498) (557,019) (1,544,881) (887,320) (3,251,741) (2,365,544)
Unrealized appreciation
(depreciation) of investments
Beginning of period (13,757,037) (1,065,205) (2,084,740) (1,447,630) (3,091,394) (2,528,771) (3,654,705)
End of period 5,558,549 10,094,006 1,066,810 4,107,803 352,067 3,672,995 268,336
Net unrealized appreciation 19,315,586 11,159,211 3,151,550 5,555,433 3,443,461 6,201,766 3,923,041
Net realized and unrealized
gain on investments 12,424,192 3,617,713 2,594,531 4,010,552 2,556,141 2,950,025 1,557,497
Net Increase in Net Assets
Resulting from Operations $ 31,921,983 $ 13,440,276 $ 5,668,643 $ 9,484,060 $ 5,710,722 $ 6,445,760 $ 4,110,439
</TABLE>
<TABLE>
<CAPTION>
For the Period
12/27/94
(Commencement
For the Six Months of Operations)
Ended 3/31/95 to 3/31/95
------------------ --------------
Washington Minnesota
Investment Income Series Series
------------------ --------------
<S> <C> <C>
Income
Interest $ 2,427,517 $ 13,703
Expenses (Note 2)
Management fee 182,833 1,492
Management fees waived (53,733) (1,492)
12b-1 distribution plan - -
Shareholder servicing 26,000 250
Registration 3,000 500
Reports to shareholders 3,500 300
Audit and tax 9,600 700
Legal 800 -
Directors' fees 1,200 -
Organization (Note 1e) 2,862 339
Other 12,131 254
Expenses assumed
by Lord, Abbett & Co. - (2,343)
Net expenses 188,193 -
Net investment income 2,239,324 13,703
Realized and Unrealized Gain (loss)
on Investments (Note 6)
Realized gain (loss) from
security transactions
Proceeds from sales 56,659,410 929,420
Cost of securities sold 59,011,041 917,995
Net realized gain (loss) (2,351,631) 11,425
Unrealized appreciation
(depreciation) of investments
Beginning of period (2,224,984) -
End of period 1,170,937 22,424
Net unrealized appreciation 3,395,921 22,424
Net realized and unrealized gain
on investments 1,044,290 33,849
Net Increase in Net Assets
Resulting from Operations $ 3,283,614 $ 47,552
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended 3/31/95 Year Ended 9/30/94
------------------------------------------- ------------------------------------------
National New York Texas National New York Texas
Increase (Decrease) in Net Assets Series Series Series Series Series Series
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 19,497,791 $ 9,822,563 $ 3,074,112 $ 39,800,670 $ 20,801,208 $ 6,424,404
Net realized loss from
security transactions (6,891,394) (7,541,498) (557,019) (15,259,353) (11,962,835) (266,516)
Net unrealized appreciation
(depreciation) of invest-
ments 19,315,586 11,159,211 3,151,550 (65,253,454) (32,300,490) (11,253,087)
Net increase (decrease) in
net assets resulting
from operations 31,921,983 13,440,276 5,668,643 (40,712,137) (23,462,117) (5,095,199)
Distributions to shareholders from
Net investment income (19,496,606) (9,930,114) (2,944,167) (40,073,629) (20,788,545) (6,437,223)
Net realized gain from
security transactions - - - (25,470,289) (11,442,158) (1,504,645)
Total distributions (19,496,606) (9,930,114) (2,944,167) (65,543,918) (32,230,703) (7,941,868)
Capital share transactions (Note 4)
Net proceeds from sales of
shares 50,042,532 24,703,978 5,665,638 97,045,511 43,572,278 18,132,364
Net asset value of shares
issued to shareholders
in reinvestment of net
investment income
and realized gain from
security transactions 10,520,934 5,920,621 1,500,737 38,761,464 19,920,756 4,061,906
Total 60,563,466 30,624,599 7,166,375 135,806,975 63,493,034 22,194,270
Cost of shares reacquired (79,615,337) (39,777,264) (12,101,716) (76,583,576) (45,716,920) (14,553,753)
Increase (decrease) in net
assets derived from
capital share transactions (19,051,871) (9,152,665) (4,935,341) 59,223,399 17,776,114 7,640,517
Total decrease in net assets (6,626,494) (5,642,503) (2,210,865) (47,032,656) (37,916,706) (5,396,550)
Net Assets
Beginning of period 662,380,327 338,539,248 103,835,574 709,412,983 376,455,954 109,232,124
End of period+ $655,753,833 $332,896,745 $101,624,709 $662,380,327 $338,539,248 $103,835,574
</TABLE>
+ Includes overdistributed net investment income of $1,866,619, $1,019,815 and
$64,958, respectively, at March 31, 1995 and overdistributed net investment
income of $1,867,804, $912,264 and $194,903, respectively, at September 30,
1994. See Notes to Financial Statements.
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Period 12/27/94
(Commencement of
Operations) to
Six Months Ended 3/31/95 3/31/95
------------------------------------------------------------------------- -----------
New Jersey Connecticut Missouri Hawaii Washington Minnesota
Increase (Decrease) in Net Assets Series Series Series Series Series Series
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 5,473,508 $ 3,154,581 $ 3,495,735 $ 2,552,942 $ 2,239,324 $ 13,703
Net realized gain (loss)
from security
transactions (1,544,881) (887,320) (3,251,741) (2,365,544) (2,351,631) 11,425
Net unrealized appreciation
of investments 5,555,433 3,443,461 6,201,766 3,923,041 3,395,921 22,424
Net increase in net assets
resulting from operations 9,484,060 5,710,722 6,445,760 4,110,439 3,283,614 47,552
Distributions to shareholders from
Net investment income (5,366,399) (3,140,145) (3,491,538) (2,592,196) (2,247,526) (15,687)
Capital share transactions (Note 4)
Net proceeds from sales of
shares 24,897,817 16,436,450 10,313,707 5,834,953 2,359,956 2,135,170
Net asset value of shares
issued to shareholders
in reinvestment of net
investment income
and realized gain from
security transactions 2,941,263 1,485,953 1,948,571 1,111,624 1,212,362 8,813
Total 27,839,080 17,922,403 12,262,278 6,946,577 3,572,318 2,143,983
Cost of shares reacquired (28,228,112) (11,115,834) (7,738,064) (13,802,217) (9,520,432) (1,024)
Increase (decrease) in net
assets derived from
capital share transactions (389,032) 6,806,569 4,524,214 (6,855,640) (5,948,114) 2,142,959
Total increase (decrease) in net assets 3,728,629 9,377,146 7,478,436 (5,337,397) (4,912,026) 2,174,824
Net Assets
Beginning of period 184,229,687 101,619,202 119,689,894 92,972,001 78,853,688 1,000
End of period+ $187,958,316 $110,996,348 $127,168,330 $ 87,634,604 $ 73,941,662 $ 2,175,824
</TABLE>
+ Includes (overdistributed) undistributed net investment income of $(37,315),
$(264,815), $(194,726), $(226,872), $33,503 and $(1,984), respectively, for
the six months ended March 31, 1995. See Notes to Financial Statements.
22
<PAGE>
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended 9/30/94
-------------------------------------------------------------------------
New Jersey Connecticut Missouri Hawaii Washington
Increase (Decrease) in Net Assets Series Series Series Series Series
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 10,820,795 $ 5,819,564 $ 6,539,831 $ 5,477,269 $ 4,834,029
Net realized loss from
security transactions (3,826,489) (1,602,822) (2,796,757) (821,739) (2,257,881)
Net unrealized depreciation
of investments (14,699,515) (9,813,447) (10,133,472) (10,048,115) (7,445,006)
Net decrease in net assets
resulting from operations (7,705,209) (5,596,705) (6,390,398) (5,392,585) (4,868,858)
Distributions to shareholders from
Net investment income (10,935,474) (6,035,780) (6,666,054) (5,448,147) (4,763,181)
Net realized gain from
security transactions (3,073,699) (1,383,528) (1,193,677) (813,711) (699,466)
Total distributions (14,009,173) (7,419,308) (7,859,731) (6,261,858) (5,462,647)
Capital share transactions (Note 4)
Net proceeds from sales of shares 49,131,677 34,728,051 32,915,805 17,819,078 17,475,210
Net asset value of shares issued
to shareholders in
reinvestment of net investment
income and realized
gain from security transactions 7,845,477 3,579,297 4,430,504 2,745,623 2,682,763
Total 56,977,154 38,307,348 37,346,309 20,564,701 20,157,973
Cost of shares reacquired (29,799,791) (16,691,968) (10,884,365) (8,821,275) (8,296,424)
Increase in net assets derived
from capital share
transactions 27,177,363 21,615,380 26,461,944 11,743,426 11,861,549
Total increase in net assets 5,462,981 8,599,367 12,211,815 88,983 1,530,044
Net Assets
Beginning of year 178,766,706 93,019,835 107,478,079 92,883,018 77,323,644
End of year+ $184,229,687 $101,619,202 $119,689,894 $ 92,972,001 $78,853,688
</TABLE>
+ Includes overdistributed net investment income of $144,424, $279,251,
$198,923, $187,618 and undistributed net investment income of $41,705,
respectively, for the year ended September 30, 1994. See Notes to Financial
Statements.
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
National Series
<TABLE>
<CAPTION>
Six Months Year Ended 9/30, Six Months Year Ended 3/31,
Ended -------------------------------- Ended ---------------------
Per Share Operating Performance: 3/31/95 1994 1993 1992 9/30/91 1991 1990
---------- -------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.62 $ 12.37 $ 11.72 $ 11.31 $ 11.05 $ 10.86 $ 10.66
Income (loss) from investment
operations
Net investment income .3182 .657 .695 .700 .359 .743 .769
Net realized and unrealized
gain (loss) on investments .221 (1.3124) .9255 .4795 .293 .2225 .206
Total from investment
operations .5392 (.6554) 1.6205 1.1795 .652 .9655 .975
======== ======== ======== ======== ======= ======== =======
Distributions
Dividends from net
investment income (.3192) (.6596) (.693) (.717) (.362) (.738) (.775)
Distributions from net
realized gain - (.435) (.2775) (.0525) (.03) (.0375) -
Net asset value, end of period $ 10.84 $ 10.62 $ 12.37 $ 11.72 $ 11.31 $ 11.05 $ 10.86
======== ======== ======== ======== ======== ======== ========
Total Return* 5.23%+ (5.64)% 14.57% 10.78% 6.01%+ 9.21% 9.30%
======== ======== ======== ======== ======== ======== ========
Ratios/Supplemental Data:
Net assets, end of
period (000) $655,754 $662,380 $709,413 $546,768 $396,221 $340,476 $317,660
Ratios to Average Net Assets:
Expenses 0.40%+ 0.86% 0.87% 0.83% 0.43%+ 0.75% 0.61%
Net investment income 3.08%+ 5.76% 5.79% 6.00% 3.20%+ 6.79% 7.00%
Portfolio turnover rate 132.50% 184.07% 138.06% 87.56% 18.77% 57.71% 42.60%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
23
<PAGE>
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
New York Series
<TABLE>
<CAPTION>
Six Months Year Ended 9/30, Six Months Year Ended 3/31,
Ended -------------------------------- Ended ---------------------
Per Share Operating Performance: 3/31/95 1994 1993 1992 9/30/91 1991 1990
---------- -------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.54 $ 12.27 $ 11.60 $ 11.26 $ 10.89 $ 10.78 $ 10.71
Income (loss) from investment
operations
Net investment income .3093 .649 .682 .691 .366 .741 .777
Net realized and unrealized
gain (loss) on investments .134 (1.3665) .874 .458 .407 .179 .18
Total from investment
operations .4433 (.7175) 1.556 1.149 .773 .92 .957
========== ========== ========= ========= ========== ========= =========
Distributions
Dividends from net
investment income (.3133) (.6475) (.681) (.709) (.368) (.750) (.787)
Distributions from net
realized gain - (.365) (.205) (.10) (.035) (.06) (.10)
Net asset value, end of period $ 10.67 $ 10.54 $ 12.27 $ 11.60 $ 11.26 $ 10.89 $ 10.78
========== ========== ========= ========= ========== ========= =========
Total Return* 4.35%+ (6.21)% 13.95% 10.69% 7.24%+ 8.87% 9.08%
========== ========== ========= ========= ========== ========= =========
Ratios/Supplemental Data:
Net assets, end of
period (000) $332,897 $338,539 $376,456 $306,447 $230,014 $201,132 $176,280
Ratios to Average Net Assets:
Expenses 0.42%+ 0.83% 0.85% 0.81% 0.37%+ 0.76% 0.60%
Net investment income 3.02%+ 5.72% 5.72% 5.98% 3.29%+ 6.83% 7.04%
Portfolio turnover rate 57.08% 149.13% 101.59% 146.68% 51.79% 39.84% 27.55%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
Texas Series
<TABLE>
<CAPTION>
Six Months Year Ended 9/30, Six Months Year Ended 3/31,
Ended -------------------------------- Ended ---------------------
Per Share Operating Performance: 3/31/95 1994 1993 1992 9/30/91 1991 1990
---------- -------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.59 $ 10.82 $ 10.28 $ 9.94 $ 9.64 $ 9.41 $ 9.16
Income (loss) from investment operations
Net investment income .2935 .604 .624 .611 .317 .658 .678
Net realized and unrealized
gain (loss) on investments .268 (1.0802) .7135 .4155 .309 .227 .251
Total from investment operations .5615 (.4762) 1.3375 1.0265 .626 .885 .929
========== ========== ========= ========= ========== ========= =========
Distributions
Dividends from net
investment income (.2815) (.6038) (.615) (.629) (.326) (.655) (.679)
Distributions from net
realized gain - (.15) (.1825) (.0575) - - -
Net asset value, end of period $ 9.87 $ 9.59 $ 10.82 $ 10.28 $ 9.94 $ 9.64 $ 9.41
========== ========== ========= ========= ========== ========= =========
Total Return* 6.02%+ (4.60)% 13.64% 10.68% 6.59%+ 9.74% 10.53%
========== ========== ========= ========= ========== ========= =========
Ratios/Supplemental Data:
Net assets, end of period (000) $101,625 $103,836 $109,232 $ 90,205 $ 66,746 $ 30,529 $ 25,886
Ratios to Average Net Assets:
Expenses, including waiver 0.30%+ 0.50% 0.57% 0.60% 0.25%+ 0.40% 0.27%
Expenses, excluding waiver 0.43%+ 0.87% 0.97% 1.00% 0.45%+ 0.84% 0.76%
Net investment income 3.11%+ 5.97% 5.96% 5.96% 3.09%+ 6.91% 7.18%
Portfolio turnover rate 50.10% 96.79% 58.10% 123.33% 50.19% 50.52% 25.52%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
24
<PAGE>
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
New Jersey Series
<TABLE>
<CAPTION>
For the Period
1/2/91
Six Months Year Ended 9/30, Six Months (Commencement
Ended -------------------------------------- Ended of Operations) to
Per Share Operating Performance: 3/31/95 1994 1993 1992 9/30/91 3/31/91
---------- -------- -------- -------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 4.95 $ 5.55 $ 5.14 $ 4.97 $ 4.81 $ 4.76
Income (loss) from investment operations
Net investment income .1369 .300 .318 .320 .167 .083
Net realized and unrealized
gain (loss) on investments .1162 (.507) .439 .185 .165 .051
Total from investment operations .2531 (.207) .757 .505 .332 .134
========== ========= ========= ========= ========= =========
Distributions
Dividends from net investment
income (.1431) (.303) (.307) (.325) (.172) (.084)
Distributions from net realized
gain - (.09) (.04) (.01) - -
Net asset value, end of period $ 5.06 $ 4.95 $ 5.55 $ 5.14 $ 4.97 $ 4.81
========== ========= ========= ========= ========= =========
Total Return* 5.27%+ (3.91)% 15.26% 10.51 % 7.01%+ 2.77%+
========== ========= ========= ========= ========= =========
Ratios/Supplemental Data:
Net assets, end of period (000) $187,958 $184,230 $178,767 $118,386 $ 59,463 $ 23,203
Ratios to Average Net Assets:
Expenses, including waiver 0.36%+ 0.51% 0.35% 0.19% 0.00%+ 0.00%+
Expenses, excluding waiver 0.44%+ 0.83% 0.83% 0.73% 0.38%+ 0.28%+
Net investment income 3.00%+ 5.76% 5.88% 6.09% 3.23%+ 1.42%+
Portfolio turnover rate 94.11% 75.62% 88.29% 54.63% 49.33% 6.51%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
Connecticut Series
<TABLE>
<CAPTION>
For the Period
4/1/91
Six Months Year Ended 9/30, (Commencement
Ended -------------------------------------- of Operations) to
Per Share Operating Performance: 3/31/95 1994 1993 1992 9/30/91
---------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.71 $ 11.01 $ 10.16 $ 9.86 $ 9.525
Income (loss) from investment
operations
Net investment income .2892 .585 .612 .617 .313
Net realized and unrealized gain
(loss) on investments .217 (1.1287) .906 .311 .335
Total from investment operations .5062 (.5437) 1.518 .928 .648
========== ========== ========= ========= ========
Distributions
Dividends from net investment
income (.2862) (.6038) (.608) (.628) (.313)
Distributions from net realized
gain - (.1525) (.06) - -
Net asset value, end of period $ 9.93 $ 9.71 $ 11.01 $ 10.16 $ 9.860
========== ========== ========= ========= ========
Total Return* 5.39%+ (5.13)% 15.48% 9.69% 6.91%+
========== ========== ========= ========= ========
Ratios/Supplemental Data:
Net assets, end of period (000) $110,996 $101,619 $ 93,020 $ 58,880 $ 21,895
Ratios to Average Net Assets:
Expenses, including waiver 0.25%+ 0.49% 0.44% 0.20% 0.00%+
Expenses, excluding waiver 0.44%+ 0.86% 0.91% 0.74% 0.40%+
Net investment income 3.02%+ 5.67% 5.60% 5.96% 3.00%+
Portfolio turnover rate 35.77% 97.42% 45.81% 54.90% 2.15%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
25
<PAGE>
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
Missouri Series
<TABLE>
<CAPTION>
For the Period
5/31/91
Six Months Year Ended 9/30, (Commencement
Ended ----------------------------------- of Operations) to
Per Share Operating Performance: 3/31/95 1994 1993 1992 9/30/91
---------- ----------- ----------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.88 $ 5.51 $ 5.14 $ 4.91 $ 4.762
Income (loss) from investment operations
Net investment income .1406 .2926 .305 .310 .106
Net realized and unrealized gain (loss)
on investments .1095 (.5681) .381 .236 .150
Total from investment operations .2501 (.2755) .686 .546 .256
========== ========== ========= ========= ========
Distributions
Dividends from net investment income (.1401) (.297) (.301) (.316) (.108)
Distributions from net realized gain - (.0575) (.015) - -
Net asset value, end of period $ 4.99 $ 4.88 $ 5.51 $ 5.14 $ 4.910
========== ========== ========= ========= ========
Total Return* 5.29%+ (5.22)% 13.80% 11.47% 5.46%+
========== ========== ========= ========= ========
Ratios/Supplemental Data:
Net assets, end of period (000) $127,168 $119,690 $107,478 $ 65,812 $ 24,230
Ratios to Average Net Assets:
Expenses, including waiver 0.37%+ 0.60% 0.48% 0.26% 0.00%+
Expenses, excluding waiver 0.45%+ 0.91% 0.92% 0.79% 0.37%+
Net investment income 2.93%+ 5.60% 5.66% 5.94% 1.81%+
Portfolio turnover rate 37.60% 50.59% 56.20% 44.19% 0.00%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
Hawaii Series
<TABLE>
<CAPTION>
For the Period
10/28/91
Six Months Year Ended 9/30, (Commencement
Ended ------------------------ of Operations) to
Per Share Operating Performance: 3/31/95 1994 1993 9/30/92
---------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.72 $ 5.34 $ 4.89 $ 4.76
Income (loss) from investment operations
Net investment income .1372 .2918 .297 .281
Net realized and unrealized gain (loss) on investments .103 (.578) .454 .138
Total from investment operations .2402 (.2862) .751 .419
========== ========== ========= =========
Distributions
Dividends from net investment income (.1402) (.2888) (.301) (.289)
Distribution from net realized gain - (.045) - -
Net asset value, end of period $ 4.82 $ 4.72 $ 5.34 $ 4.89
========== ========== ========= =========
Total Return* 5.26%+ (5.54)% 15.85% 9.06%+
========== ========== ========= =========
Ratios/Supplemental Data:
Net assets, end of period (000) $ 87,635 $ 92,972 $ 92,883 $ 47,031
Ratios to Average Net Assets:
Expenses, including waiver 0.30%+ 0.41% 0.40% 0.00%+
Expenses, excluding waiver 0.45%+ 0.87% 0.90% 0.74%+
Net investment income 3.00%+ 5.80% 5.62% 5.96%+
Portfolio turnover rate 75.51% 66.04% 34.49% 53.24%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
26
<PAGE>
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
Washington Series
Minnesota Series
<TABLE>
<CAPTION>
Washington Series Minnesota Series
----------------------------------------------------------- ----------------
For the Period For the Period
4/15/92 12/27/94
Six Months Year Ended 9/30, (Commencement (Commencement
Ended ----------------------- of Operations) to of Operations) to
Per Share Operating Performance: 3/31/95 1994 1993 9/30/92 3/31/95
---------- ---------- --------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.72 $ 5.35 $ 4.92 $ 4.76 $ 4.76
Income (loss) from investment operations
Net investment income .1416 .2976 .304 .140 .0744
Net realized and unrealized gain (loss)
on investments .0903 (.5895) .427 .165 .1545
Total from investment operations .2319 (.2919) .731 .305 .2289
=========== ========= ======== ========= ==========
Distributions
Dividends from net investment income (.1419) (.2931) (.301) (.145) (.0789)
Distribution from net realized gain - (.045) - - -
Net asset value, end of period $ 4.81 $ 4.72 $ 5.35 $ 4.92 $ 4.91
=========== ========= ======== ========= ==========
Total Return* 5.08%+ (5.65)% 15.32% 6.47%+ $ 4.82+
=========== ========= ======== ========= ==========
Ratios/Supplemental Data:
Net assets, end of period (000) $ 73,942 $78,854 $77,324 $ 42,627 $ 2,176
Ratios to Average Net Assets:
Expenses, including waiver 0.26%+ 0.29% 0.30% 0.00%+ 0.00%+
Expenses, excluding waiver 0.33%+ 0.67% 0.80% 0.38%+ 0.14%+
Net investment income 3.06%+ 5.93% 5.86% 2.58%+ 1.26%+
Portfolio turnover rate 54.82% 137.74% 85.45% 37.23% 93.01%
</TABLE>
* Total return does not consider the effects of sales loads.
+ Not annualized.
See Notes to Financial Statements.
================================================================================
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies The Company is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. Effective December 22, 1994, the Minnesota Series was added to the
Fund, and the Company received an initial capital contribution of $1,000 and
issued 210 shares to the partners of Lord, Abbett & Co. The following is a
summary of significant accounting policies consistently followed by the
Company. The policies are in conformity with generally accepted accounting prin-
ciples. (a) Market value is determined as follows: Securities are valued at
latest prices on the basis of valuations furnished by an independent pricing
service or, in their absence, fair value as determined under procedures approved
by the Board of Directors. (b) It is the policy of the Company to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all net investment income and net
realized gains. Therefore, there is no provision for federal income tax. (c)
Security transactions are accounted for on the date that the securities are
purchased or sold (trade date). Interest income is recorded on the accrual
basis. (d) Dividends from net investment income are declared daily and paid
monthly. (e) The organization expenses of the New Jersey Series, Connecticut
Series, Missouri Series, Hawaii Series, Washington and Minnesota Series are
being amortized evenly over a period of five years from their respective
commencements of operations. 2. Management Fee and Other Transactions With
Affiliates The Company has a management agreement with Lord, Abbett & Co.
Pursuant to the agreement, Lord, Abbett & Co. 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, statistical work
and the supervision of the Company's investment portfolios. The management fee
is based on average daily net assets for each month at the annual rate of 1/2 of
1%. Lord, Abbett & Co. may voluntarily pay or reimburse any Series for certain
of its other expenses. Any such other expenses paid or reimbursed for the Hawaii
and Washington Series are subject to repayment by the respective Series
pursuant to a formula based on the expense ratio of that Series until five years
from the commencement of its operations or the termination of the management
agreement, whichever is earlier. As of September 30, 1993, all such amounts were
accrued for the Hawaii and Washington Series. As of March 31, 1995, no
additional amounts were accrued. From December 22, 1994 to March 31, 1995, Lord,
Abbett & Co. waived the Minnesota Series' management fee of $1,492 and assumed
$2,343 of other expenses. Lord, Abbett & Co. received the following commissions
on sales of capital stock of the Company after concessions were paid to
authorized distributors:
<TABLE>
<CAPTION>
Lord, Abbett & Co. Distributors'
Series Commissions Concessions
------------------ -------------
<S> <C> <C>
National $70,830 $460,499
New York 32,888 215,273
Texas 12,972 87,089
New Jersey 53,946 351,144
Connecticut 24,829 167,131
Missouri 40,613 254,943
Hawaii 18,065 125,428
Washington 11,107 65,810
Minnesota - 97,278
</TABLE>
27
<PAGE>
================================================================================
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Company adopted a separate Rule 12b-1 Plan which became effective June 1,
1990 for each of the National, New York and Texas Series, and which provides for
the payment of (1) an annual fee for services (payable quarterly) of .15% of the
average daily net asset value of the Company's shares sold by dealers prior to
that date and .25% of the average daily net asset value of such shares sold on
and after that date, and (2) a one-time 1% sales distribution fee, at the time
of sale, on such shares sold at net asset value of $1 million or more. Separate
Rule 12b-1 Plans have been approved for each of the New Jersey, Connecticut,
Missouri, Hawaii, Washington and Minnesota Series. Each Series' initial and
public shareholders approved its Plan, except for the Washington and Minnesota
Series' Plans which have initial shareholders' approval. Each Plan has become
effective except for the Washington and Minnesota Series which will go into
effect on the first day (the "effective date") of the calendar quarter
subsequent to each Series' net assets reaching $100 million. Each Plan provides
for the payment of (1) an annual service fee (payable quarterly) of (a) in the
case of the Connecticut and Missouri Series, .25% of the average daily net asset
value of shares sold by broker-dealers from commencement of each Series' public
offering, and (b) in the case of the Hawaii, New Jersey, Washington and
Minnesota Series, .15% of the average daily net asset value of such shares sold
prior to each Series' effective date and .25% of the average daily net asset
value of such shares sold on or after that date, and (2) a one-time 1% sales
distribution fee, at the time of sale, on such shares sold on or after the
Plan's effective date at net asset value of $1 million or more. Certain of the
Company's officers and directors have an interest in Lord, Abbett & Co. 3.
Distributions Dividends from net investment income are declared daily and paid
monthly. Taxable net realized gains from security transactions, if any, will be
distributed to shareholders in December 1995. At March 31, 1995, the accumulated
net realized gain (loss) for financial reporting purposes, which is
substantially the same as for federal income tax purposes, aggregated
$(22,189,091) for the National Series, $(19,450,015) for the New York Series,
$(837,843) for the Texas Series, $(5,525,413) for the New Jersey Series,
$(2,575,236) for the Connecticut Series, $(6,189,454) for the Missouri Series,
$(3,201,419) for the Hawaii Series, $(4,634,470) for the Washington Series and
$11,425 for the Minnesota Series. Income and capital gains distributions are
determined in accordance with income tax regulations which may differ from
methods used to determine the corresponding income and capital gains amounts in
accordance with generally accepted accounting principles.
4. Capital Share Transactions Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
Six Months Ended 3/31/95 Year Ended 9/30/94
------------------------------------------------ -------------------------------------------------
National New York Texas New Jersey National New York Texas New Jersey
Series Series Series Series Series Series Series Series
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales of shares 4,859,247 2,439,141 601,499 5,152,059 8,460,951 3,769,712 1,772,757 9,284,688
Shares issued to shareholders
in reinvestment of net
investment income and
realized gain from security
transactions 1,012,819 577,997 159,333 606,521 3,352,904 1,731,651 395,615 1,487,941
Total 5,872,066 3,017,138 760,832 5,758,580 11,813,855 5,501,363 2,168,372 10,772,629
Shares reacquired (7,734,511) (3,937,742) (1,294,582) (5,868,200) (6,793,428) (4,053,755) (1,433,403) (5,753,941)
Increase (decrease) in
shares (1,862,455) (920,604) (533,750) (109,620) 5,020,427 1,447,608 734,969 5,018,688
</TABLE>
<TABLE>
<CAPTION>
For the Period
12/27/94
(Commencement
of Operations)
Six Months Ended 3/31/95 to 3/31/95
-------------------------------------------------- --------------
Connecticut Missouri Hawaii Washington Minnesota
Series Series Series Series Series
----------- --------- --------- ---------- --------------
<S> <C> <C> <C> <C> <C>
Sales of shares 1,740,258 2,157,515 1,270,928 507,151 441,116
Shares issued to
shareholders in
reinvestment of net
investment income
and realized gain
from security
transactions 156,681 408,836 242,041 262,788 1,807
Total 1,896,939 2,566,351 1,512,969 769,939 442,923
Shares reacquired (1,188,129) (1,638,622) (3,045,366) (2,093,884) (215)
Increase (decrease) in
shares 708,810 927,729 (1,532,397) (1,323,945) 442,708
</TABLE>
<TABLE>
<CAPTION>
Year Ended 9/30/94
--------------------------------------------------
Connecticut Missouri Hawaii Washington
Series Series Series Series
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Sales of shares 3,303,066 6,265,978 3,519,234 3,401,499
Shares issued to
shareholders in
reinvestment of net
investment income
and realized gain
from security
transactions 345,225 844,562 544,401 532,182
Total 3,648,291 7,110,540 4,063,635 3,933,681
Shares reacquired (1,632,769) (2,095,634) (1,756,220) (1,692,858)
Increase (decrease) in
shares 2,015,522 5,014,906 2,307,415 2,240,823
</TABLE>
28
<PAGE>
================================================================================
Notes to Financial Statements
- --------------------------------------------------------------------------------
5. Capital Paid In At March 31, 1995, capital paid in aggregated $674,283,874
for the National Series, $343,273,690 for the New York Series, $101,462,673 for
the Texas Series, $189,418,092 for the New Jersey Series, $113,484,329 for the
Connecticut Series, $129,879,552 for the Missouri Series, $90,794,558 for the
Hawaii Series, $77,371,698 for the Washington Series and $2,143,959 for the
Minnesota Series. 6. Purchases and Sales of Securities Purchases and sales of
investment securities (other than short-term investments) were as follows:
<TABLE>
<CAPTION>
Series Purchases Sales
- ------ ------------ ------------
<S> <C> <C>
National $829,978,268 $904,450,207
New York 182,968,124 239,349,340
Texas 48,945,131 56,508,603
New Jersey 168,085,236 179,010,507
Connecticut 41,990,929 36,351,936
Missouri 51,389,071 44,856,569
Hawaii 64,737,831 73,345,091
Washington 39,550,232 46,191,924
Minnesota 1,353,163 929,420
</TABLE>
Security gains and losses are computed on the identified cost basis.
As of March 31, 1995, unrealized appreciation and depreciation of
investments based on cost for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Unrealized Unrealized
Series Appreciation Depreciation
- ------ ------------ ------------
<S> <C> <C>
National $ 15,448,471 $ 9,889,922
New York 12,843,343 2,749,337
Texas 3,005,662 1,938,852
New Jersey 4,774,632 666,829
Connecticut 2,372,314 2,020,247
Missouri 4,331,691 658,696
Hawaii 1,462,525 1,194,189
Washington 1,754,080 583,143
Minnesota 22,718 294
</TABLE>
The cost of investments for federal income tax purposes is the same as that used
for financial reporting purposes. 7. Directors' Remuneration The Directors of
the Company associated with Lord, Abbett & Co. and all officers of the Company
receive no compensation from the Company for acting as such. Outside Directors'
fees, including attendance fees for board and committee meetings, and outside
Directors' retirement costs, are allocated among all funds in the Lord Abbett
group based on net assets of each fund. The direct remuneration accrued during
the period for outside Directors of the Company as a group was $25,073
(exclusive of expenses), which has been deemed invested in shares of the Company
under a deferred compensation plan contemplating future payment of the value of
those shares. As of March 31, 1995, the aggregate amount in Directors' accounts
maintained under the plan was $282,414. Retirement costs accrued during the
period amounted to $7,075. 8. Change in Fiscal Year-End The financial statements
cover a short year (six months ended September 30, 1991) because the fiscal
year-end was changed from March 31 to September 30.
Copyright (C) 1995 by Lord Abbett Tax-Free Income Fund, Inc., 767 Fifth Avenue,
New York, NY 10153-0203
This publication, when not used for the general information of shareholders of
Lord Abbett Tax-Free Income Fund, Inc., is to be distributed only if preceded or
accompanied by a current prospectus which includes information concerning the
Fund's investment objective and policies, sales charges and other matters.
All rights reserved. Printed in the U.S.A.
29
<PAGE>
THE LORD ABBETT FAMILY OF FUNDS
The General Motors Building
767 Fifth Avenue
New York, NY 10153-0203
Lord, Abbett & Co. Investment Management
<PAGE>
================================================================================
The Lord Abbett Family Meeting Investor Needs Since 1929
- --------------------------------------------------------------------------------
Lord, Abbett & Co. manages a spectrum of mutual funds to meet the investment
goals of its shareholders. Assets may be allocated or transferred among these
funds as described in the relevant prospectus. The exchange privilege may be
modified or terminated. For more information about a Lord Abbett fund, including
charges and expenses, please call us at 800-874-3733 for a prospectus. Please
read the prospectus carefully before investing.
================================================================================
Equity Portfolios
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Affiliated Fund
Established 1934
Seeks long-term growth of capital and income without excessive fluctuations in
market value. Portfolio emphasis: The stocks of large, well-seasoned companies.
Lord Abbett Developing Growth Fund
Established 1973
Seeks aggressive, long-term capital appreciation. Price volatility is not
uncommon. Portfolio emphasis: The stocks of small growth companies mostly traded
over the counter.
Lord Abbett Fundamental Value Fund
Established 1986
Seeks growth of capital and growth of income consistent with reasonable risk.
Portfolio emphasis: The stocks of large and midsized companies with strong
underlying fundamentals.
Lord Abbett Global Fund
Equity Series
Established 1988
Seeks long-term growth of capital and, secondarily, production of current
income. Portfolio: A diversified portfolio of stocks from around the world.
Lord Abbett Value Appreciation Fund
Established 1983
Seeks capital appreciation. Portfolio emphasis: The stocks of midsized
companies.
================================================================================
Balanced Portfolio
- --------------------------------------------------------------------------------
Lord Abbett Balanced Series
Established 1994
Seeks current income and capital growth. Portfolio: A blend of stocks and fixed-
income securities.
================================================================================
Fixed-Income Portfolios
- --------------------------------------------------------------------------------
Lord Abbett Bond-Debenture Fund
Established 1971
Seeks high current income and capital growth to produce a high total return.
Portfolio emphasis: Convertible issues and lower rated debt.
Lord Abbett Global Fund
Income Series
Established 1988
Seeks high current income and, secondarily, capital appreciation. Portfolio:
High-quality international and U.S. debt.
Lord Abbett Limited Duration U.S. Government Securities Series
Established 1993
Seeks a high level of income, relative to money market instruments, with less
fluctuations in principal than long-term U.S. Government securities. Portfolio
emphasis: Limited duration fixed-income securities (primarily U.S. Government
securities).
Lord Abbett U.S. Government Securities Fund
Established 1932
Seeks high current income. Portfolio: Since 1985, U.S. Government securities
exclusively.
================================================================================
Tax-Free Portfolios
- --------------------------------------------------------------------------------
Lord Abbett Tax-Free Income Funds
National and New York Series Established 1984
California Fund Established 1985
Texas Series Established 1987
New Jersey, Connecticut, Missouri, Hawaii, Florida and Pennsylvania Series
Established 1991
Washington and Michigan Series Established 1992
Georgia and Minnesota Series Established 1994
Seek high tax-free income. Portfolios' emphasis: High-quality municipal bonds.
================================================================================
Money Market Portfolio
- --------------------------------------------------------------------------------
Lord Abbett U.S. Government Securities
Money Market Fund
Established 1979
Seeks high current income and preservation of capital. Portfolio: U.S.
Government money market instruments.
An investment in this Fund is neither insured nor guaranteed by the U.S.
Government and there can be no assurance that this Fund will be able to maintain
a stable net asset value of $1.00 per share. This Fund is managed to maintain,
and has maintained, its stable $1.00 per share price.
FPO
The Lord Abbett Family of Funds
The General Motors Building
767 Fifth Avenue
New York, NY 10153-0203
Lord, Abbett & Co. Investment Management
LATFI-3-395
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