LORD ABBETT GLOBAL FUND, INC.
THE GENERAL MOTORS BUILDING
767 FIFTH AVENUE
NEW YORK, NY 10153-0203
800-426-1130
LORD ABBETT GLOBAL FUND, INC. (WE OR THE FUND) IS A DIVERSIFIED, OPEN-END
MANAGEMENT INVESTMENT COMPANY INCORPORATED UNDER MARYLAND LAW ON FEBRUARY 23,
1988. THE FUND COMPRISES TWO DISTINCT INVESTMENT PORTFOLIOS, THE EQUITY SERIES
AND THE INCOME SERIES. SHARES OF EACH SERIES HAVE EQUAL RIGHTS AS TO VOTING,
DIVIDENDS, ASSETS AND LIQUIDATION WITH RESPECT TO OTHER SHARES OF THAT SERIES.
THE EQUITY SERIES SEEKS LONG-TERM GROWTH OF CAPITAL AND INCOME CONSISTENT
WITH REASONABLE RISK. THE PRODUCTION OF CURRENT INCOME IS A SECONDARY
CONSIDERATION FOR THE EQUITY SERIES. THE INCOME SERIES SEEKS HIGH CURRENT INCOME
CONSISTENT WITH REASONABLE RISK. CAPITAL APPRECIATION IS A SECONDARY
CONSIDERATION FOR THE INCOME SERIES. THERE CAN BE NO ASSURANCE THAT EACH SERIES
WILL ACHIEVE ITS OBJECTIVE.
BY INVESTING IN GLOBALLY-DIVERSIFIED SECURITIES, THE FUND OFFERS THE
OPPORTUNITY FOR INVESTORS TO TAKE ADVANTAGE OF CAPITAL AND INCOME GROWTH (IN THE
CASE OF THE EQUITY SERIES) AND HIGH CURRENT INCOME WITH CAPITAL APPRECIATION (IN
THE CASE OF THE INCOME SERIES) THAT MAY BE PREVALENT, FROM TIME TO TIME, IN
PARTICULAR COUNTRIES THROUGHOUT THE WORLD.
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE FUND THAT A
PROSPECTIVE INVESTOR SHOULD KNOW BEFORE INVESTING. ADDITIONAL INFORMATION ABOUT
THE FUND HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE
STATEMENT OF ADDITIONAL INFORMATION IS INCORPORATED BY REFERENCE INTO THIS
PROSPECTUS AND MAY BE OBTAINED, WITHOUT CHARGE, BY WRITING TO THE FUND OR BY
CALLING 800-874-3733. ASK FOR PART B OF THE PROSPECTUS THE STATEMENT OF
ADDITIONAL INFORMATION.
THE DATE OF THIS PROSPECTUS AND THE DATE OF THE STATEMENT OF ADDITIONAL
INFORMATION IS MAY 1, 1995. UNLESS OTHERWISE STATED, USE OF THE WORD FUND IN
THIS PROSPECTUS WILL MEAN BOTH SERIES.
PROSPECTUS
INVESTORS SHOULD READ AND RETAIN THIS PROSPECTUS. SHAREHOLDER INQUIRIES SHOULD
BE MADE IN WRITING TO THE FUND OR BY CALLING 800-821-5129. YOU CAN ALSO MAKE
INQUIRIES THROUGH YOUR BROKER-DEALER.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
AN INVESTMENT IN THE FUND INVOLVES RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
CONTENTS PAGE
1 Fee Table 2
2 Financial Highlights 2
3 Investment
Objectives and Policies 3
4 Risk Factors 7
5 Purchases 7
6 Shareholder Services 10
7 Our Management 10
8 Dividends, Capital Gains
Distributions and Taxes 11
9 Redemptions 12
10 Performance 13
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
1 FEE TABLE
A summary of each Series expenses is set forth in the table below. The example
is not a representation of past or future expenses. Actual expenses may be
greater or less than those shown.
SHAREHOLDER TRANSACTION EXPENSES EQUITY INCOME
(AS A PERCENTAGE OF OFFERING PRICE) SERIES SERIES
------ ------
Maximum Sales Load(1) on Purchases
(See Purchases) 5.75% 4.75%
Deferred Sales Load(1)(See Purchases) None(2) None(2)
- ------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees (See Our Management) .75% .50%
12b-1 Fees (See Purchases) .23% .26%
Other Expenses (See Our Management) .58% .26%
- ------------------------------------------------------------------
Total Operating Expenses 1.56% 1.02%
==================================================================
Example: Assume an annual return of 5% and there is no change in the level of
expenses described above. For every $1,000 invested, with reinvestment of all
distributions, you would pay the following total expenses if you closed your
account after the number of years indicated.
1 year(3) 3 years(3) 5 years(3) 10 years(3)
-------- --------- --------- ----------
Equity Series $72 $104 $138 $232
Income Series $57 $78 $101 $166
(1)Sales load is referred to as sales charge and deferred sales load is referred
to as contingent deferred reimbursement charge throughout this Prospectus.
(2)Redemptions of shares on which the Funds 1% Rule 12b-1 sales distribution fee
for purchases of $1 million or more has been paid are subject to a 1%
contingent deferred reimbursement charge, if the redemption occurs within
24 months after the month of purchase, subject to certain exceptions
described herein.
(3)Based on total operating expenses shown in the table above.
The foregoing is provided to give investors a better understanding of the
expenses that are incurred by an investment in the Fund.
2 FINANCIAL HIGHLIGHTS
The following table has been audited by Deloitte & Touche LLP, independent
accountants, in connection with their annual audit of the Funds Financial
Statements, whose report thereon is incorporated by reference in the Statement
of Additional Information and may be obtained on request, and has been included
herein in reliance upon their authority as experts in accounting and auditing.
<TABLE>
<CAPTION>
EQUITY SERIES FOR THE PERIOD
SEPTEMBER 30, 1988
(COMMENCEMENT
OF OPERATIONS) TO
PER SHARE OPERATING YEAR ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PERFORMANCE: 1994 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.44 $10.48 $10.79 $9.57 $11.09 $9.62 $9.28
INCOME FROM INVESTMENT OPERATIONS
Net investment income .10 .04 .078 .134 .211 .170 .073
Net realized and unrealized
gain (loss) on securities (.1125) 2.635 (.268) 1.276 (1.551) 1.53 .327
TOTAL FROM INVESTMENT OPERATIONS (.0125) 2.675 (.190) 1.410 (1.340) 1.70 .400
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (.10) (.10) (.12) (.12) (.18) (.12) (.06)
Distributions from net realized gain (.7775) (.615) - (.07) - (.11) -
NET ASSET VALUE, END OF PERIOD $11.55 $12.44 $10.48 $10.79 $9.57 $11.09 $9.62
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN* (0.09)% 26.05% (1.73)% 14.76% (12.13)% 17.73% 4.37%**
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $83,739 $71,632 $34,332 $36,654 $32,986 $27,692 $7,623
RATIOS TO AVERAGE NET ASSETS:
Expenses, including waiver 1.56% 1.68% 1.84% 1.61% 1.45% 1.26% .24%**
Expenses, excluding waiver 1.56% 1.68% 1.84% 1.61% 1.72% 2.16% 1.06%**
Net investment income .79% .70% .76% 1.30% 2.03% 1.52% .93%**
PORTFOLIO TURNOVER RATE 75.39% 197.59% 136.75% 74.83% 76.24% 50.12% 3.86%
<FN>
* Total return does not consider the effects of sales loads.
** Not annualized.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INCOME SERIES FOR THE PERIOD
SEPTEMBER 30, 1988
(COMMENCEMENT
OF OPERATIONS) TO
PER SHARE OPERATING YEAR ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PERFORMANCE: 1994 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $9.02 $8.87 $9.40 $9.13 $9.28 $9.37 $9.53
INCOME FROM INVESTMENT OPERATIONS
Net investment income .65 .76 .808 .877 .940 .998 .233
Net realized and unrealized
gain (loss) on securities (.9603) .174 (.288) .316 .059 (.07) (.1028)
TOTAL FROM INVESTMENT OPERATIONS (.3103) .934 .520 1.193 .999 .928 .1302
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (.6035) (.784) (.840) (.873) (.959) (.998) (.2402)
Distributions from net realized gain - - - (.05) - (.02) -
Distribution to shareholders in
excess of net investment income (.1262) - - - - - -
Special distributions from foreign
currency transactions - (.21) - (.19) - - (.05)
NET ASSET VALUE, END OF PERIOD $7.98 $9.02 $8.87 $9.40 $9.13 $9.28 $9.37
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN* (3.40)% 10.78% 5.76% 14.33% 11.88% 10.58% 1.41%**
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $249,490 $277,495 $148,137 $101,023 68,587 $37,470 $8,048
RATIOS TO AVERAGE NET ASSETS:
Expenses, including waiver 1.02% 1.04% 1.22% 1.30% 1.16% .90% .24%**
Expenses, excluding waiver 1.02% 1.04% 1.22% 1.30% 1.33% 1.64% .74%**
Net investment income 7.72% 7.81% 8.50% 9.96% 10.13% 10.41% 2.41%**
PORTFOLIO TURNOVER RATE 1,230.20% 1,559.43% 812.01% 543.90% 613.01% 757.32% 22.62%
<FN>
* Total return does not consider the effects of sales loads.
** Not annualized.
</FN>
</TABLE>
3 INVESTMENT OBJECTIVES AND POLICIES
THE EQUITY SERIES. The investment objective of the Equity Series is long-term
growth of capital and income consistent with reasonable risk. The production of
current income is a secondary consideration for the Equity Series.
The Equity Series believes that the needs of most long-term investors are
best served by capital growth without excessive fluctuations in market value.
Fund management (hereinafter meaning the officers of the Fund on a day-to-day
basis subject to the overall direction of the Funds Board of Directors with the
advice of Lord Abbett) will try to anticipate major changes in the world economy
and select for the Equity Series domestic and foreign securities which Fund
management believes will benefit most from these changes. The Equity Series
normally invests primarily in common stocks (including securities convertible
into common stocks) of domestic and foreign companies in sound financial
condition, which common stocks are expected to show above-average price
appreciation. Although the prices of common stocks fluctuate and their dividends
vary, historically, common stocks have appreciated in value and their dividends
have increased when the companies they represent have prospered and grown.
Success in achieving the investment objective of the Equity Series is dependent
upon Fund managements ability to anticipate market changes, as well as its
ability to value properly particular companies. Thus, there is no assurance that
the portfolio investments made by Fund management on behalf of the Equity Series
will attain the results sought.
The Equity Series constantly balances the opportunity for profit against
the risk of loss. In the past, very few industries or economies have
continuously provided the best investment opportunities. The Equity Series
policy is to take a flexible approach and to adjust the portfolio to reflect
changes in the opportunity for sound investments relative to the risk assumed.
Therefore, domestic and foreign securities judged to be overvalued will be sold
and the proceeds will be reinvested in other securities believed to offer better
values.
The Equity Series, while having no specific rating requirements with
respect to the debt securities in which
<PAGE>
it invests, will occasionally be guided by the prospect of a more attractive
risk-adjusted total return from an issuers debt securities versus its equity
securities. As of the Equity Series fiscal year ended December 31, 1994, 9.7% of
its assets were invested in debt securities.
Under normal circumstances, the Equity Series will invest its total assets
