1940 Act File No.811-5476
1933 Act File No.33-20309
SECURITIES & EXCHANGE COMMISSION
Washington, D.C.20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Post-Effective Amendment No.8 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT [X]
OF 1940
Post-Effective Amendment No.8 [X]
LORD ABBETT GLOBAL FUND, INC.
Exact Name of Registrant as Specified in Charter
767 FIFTH AVENUE, NEW YORK, N. Y. 10153-0203
Address of Principal Executive Office
Registrant's Telephone Number (212) 848-1800
Kenneth B.Cutler, Vice President & Secretary
767 FIFTH AVENUE, NEW YORK, N. Y. 10153
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box)
immediately on filing pursuant to paragraph (b) of Rule 485
X on May 1, 1996 pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a) (1) of Rule 485
on (date) pursuant to paragraph (a) (1) of Rule 485
75 days after filing pursuant to paragraph (a) (2) of Rule 485
on (date) pursuant to paragraph (a) (2) of Rule 485
If appropriate, check the following box:
this post-effective amendment designates a new effective date for
a previously filed post-effective amendment
Registrant has registered an indefinite amount of securities under the
Securities Act of 1933 pursuant to Rule 24f-2(a) (1) and a Rule 24f-2 Notice for
Registrant's most recent fiscal year was filed with the Commission on or about
February 28, 1996.
<PAGE>
LORD ABBETT GLOBAL FUND, INC.
FORM N-1A
Cross Reference Sheet
to Rule 481 (a)
Post-Effective Amendment No. 8
Form N-1A Location In Prospectus or
Item No. Statement of Additional Information
1 Cover Page
2 Fee Table
3 (a) Financial Highlights; Performance
3 (b) N/A
3 (c) Performance
3 (d) N/A
4 (a) (i) Cover Page
4 (a) (ii) Investment Objectives and Policies
4 (b) Investment Objectives and Policies
4 (c) Risk Factors
5 (a) Our Management
5 (b) (c) Our Management; Back Cover Page
5 (d) N/A
5 (e) Back Cover Page
5 (f) Our Management
5 (g) N/A
5 A Performance
6 (a) Cover Page
6 (b) (c) (d) N/A
6 (e) Cover Page
6 (f) (g) Dividends, Capital Gains
Distributions and Taxes
6 (h) Cover Page
7 (a) Back Cover Page
7 (b) (c) (d)
(e) (f) Purchases
8 Redemptions
9 N/A
10 Cover Page
11 Cover Page - Table of Contents
12 N/A
13 Investment Objectives and Policies
14 Directors and Officers
15 (a) (b) N/A
15 (c) Directors and Officers
16 (a) (i) Investment Advisory and Other Services
16 (a) (ii) Directors and Officers
16 (a) (iii) Investment Advisory and Other Services
16 (b) Investment Advisory and Other Services
16 (c)(d)(e)(g) N/A
16 (f) Purchases, Redemptions
and Shareholder Services; Directors and Officers
16 (h) Investment Advisory and Other Services
16 (i) N/A
<PAGE>
Form N-1A Location In Prospectus or
Item No. Statement of Additional Information
17 (a) Portfolio Transactions
17 (b) N/A
17 (c) (d) Portfolio Transactions
17 (e) N/A
18 (a) Cover Page
18 (b) N/A
19 (a) (b) Purchases, Redemptions
and Shareholder Services
19 (c) N/A
20 Taxes
21 (a) Purchases, Redemptions
and Shareholder Services
21 (b) (c) N/A
22 (a) N/A
22 (b) Past Performance
23 Financial Statements
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,
1996. 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.
CONTENT 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 12
9 Redemptions 13
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.
<TABLE>
<CAPTION>
EQUITY INCOME
SERIES SERIES
<S> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
(AS A PERCENTAGE OF OFFERING PRICE)
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") 0.75% 0.50%
12b-1 Fees (See "Purchases") 0.26%(3) 0.25%(3)
Other Expenses (See "Our Management") 0.62% 0.29%
Total Operating Expenses 1.63%(3) 1.04%(3)
<FN>
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(4) 3 years(4) 5 years(4) 10 years(4)
Equity Series $73 $106 $141 $240
Income Series $58 $79 $102 $169
(1) Sales "load" is referred to as sales "charge" and "deferred sales load" is
referred to as "contingent deferred reimbursement charge" throughout this
Prospectus. With a front-end sales charge and the Rule 12b-1 plan described
herein, long-term shareholders may pay more than the economic equivalent of
the maximum permitted front-end sales charge pursuant to the rules of the
National Association of Securities Dealers.
(2) Redemptions of shares on which the Fund's 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) The Board of Directors has approved under a new 12b-1 plan, subject to
shareholder approval, payments that, had they been in effect for the Fund's
most recent fiscal year, would have increased 12b-1 fees and total expenses
to 0.30% and 1.67%, respectively, for the Equity Series and to 0.29% and
1.08%, respectively for the Income Series. See "Rule 12b-1 Plan" for more
details.
(4) 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.
</FN>
</TABLE>
2 FINANCIAL HIGHLIGHTS
The following table has been audited by Deloitte & Touche llp, independent
public accountants, in connection with their annual audit of the Fund's
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
Per Share Operating Year Ended December 31, of Operations) to
Performance: 1995 1994 1993 1992 1991 1990 1989 December 31, 1988
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.55 $12.44 $10.48 $10.79 $9.57 $11.09 $9.62 $9.28
Income from investment operations
Net investment income .16 .10 .04 .078 .134 .211 .170 .073
Net realized and unrealized
gain (loss) on securities .90 (.1125) 2.635 (.268) 1.276 (1.551) 1.53 .327
Total from investment operations 1.06 (.0125) 2.675 (.190) 1.410 (1.340) 1.70 .400
Distributions
Dividends from net investment income (.17) (.10) (.10) (.12) (.12) (.18) (.12) (.06)
Distributions from net realized gain (.48) (.7775) (.615) . (.07) . (.11) .
Net asset value, end of period $11.96 $11.55 $12.44 $10.48 $10.79 $9.57 $11.09 $9.62
Total Return* 9.19% (0.09)% 26.05% (1.73)% 14.76% (12.13)% 17.73% 4.37%**
Ratios/Supplemental Data:
Net assets, end of period (000) $84,731 $83,739 $71,632 $34,332 $36,654 $32,986 $27,692 $7,623
Ratios to Average Net Assets:
Expenses, including waiver 1.63% 1.56% 1.68% 1.84% 1.61% 1.45% 1.26% .24%**
Expenses, excluding waiver 1.63% 1.56% 1.68% 1.84% 1.61% 1.72% 2.16% 1.06%**
Net investment income 1.31% .79% .70% .76% 1.30% 2.03% 1.52% .93%**
Portfolio turnover rate 83.32% 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.
See Notes to Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Income Series For the Period
September 30, 1988
(Commencement
Per Share Operating Year Ended December 31, of Operations) to
Performance: 1995 1994 1993 1992 1991 1990 1989 December 31, 1988
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.98 $9.02 $8.87 $9.40 $9.13 $9.28 $9.37 $9.53
Income from investment operations
Net investment income .77 .65 .76 .808 .877 .940 .998 .233
Net realized and unrealized
gain (loss) on securities .6133 (.9603) .174 (.288) .316 .059 (.07) (.1028)
Total from investment operations 1.3838 (.3103) .934 .520 1.193 .999 .928 .1302
Distributions
Dividends from net investment income (.6613) (.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 (.1225) (.21) . (.19) . (.05)
Net asset value, end of period $8.58 $7.98 $9.02 $8.87 $9.40 $9.13 $9.28 $9.37
Total Return* 17.86% (3.40)% 10.78% 5.76% 14.33% 11.88% 10.58% 1.41%**
Ratios/Supplemental Data:
Net assets, end of period (000) $238,291 $249,490 $277,495 $148,137 $101,023 $68,587 $37,470 $8,048
Ratios to Average Net Assets:
Expenses, including waiver 1.04% 1.02% 1.04% 1.22% 1.30% 1.16% .90% .24%**
Expenses, excluding waiver 1.04% 1.02% 1.04% 1.22% 1.30% 1.33% 1.64% .74%**
Net investment income 7.60% 7.72% 7.81% 8.50% 9.96% 10.13% 10.41% 2.41%**
Portfolio turnover rate 1,073.69% 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.
See Notes to Financial Statements.
</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 Fund's 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 management's ability to anticipate market changes, as well as its
ability to properly value 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 it invests, will occasionally be guided by the
prospect of a more attractive risk-adjusted total return from an issuer's debt
securities versus its equity securities. As of the Equity
<PAGE>
Series' fiscal year ended December 31, 1995, 5.20% of its assets were invested
in debt securities.
Under normal circumstances, the Equity Series will invest its total assets in
domestic and foreign securities with at least 65% of such assets invested in
equity securities primarily traded in at least three countries, including the
United States. However, this guideline may not be followed for temporary
defensive periods when Fund management believes that it should invest entirely
in domestic securities or in securities primarily traded in one or more foreign
countries or in debt securities to a greater extent than 35% of the total assets
of the Equity Series.
THE INCOME SERIES. The investment objective of the Income Series is high current
income consistent with reasonable risk. Capital appreciation is a secondary
consideration for the Income Series.
Under normal market conditions, the Income Series will be invested primarily in
a portfolio of (i) high-quality debt securities issued or guaranteed by U.S. and
foreign governments or their agencies, instrumentalities or political
subdivisions; (ii) high-quality debt securities issued or guaranteed by
supranational organizations, such as the World Bank; (iii) high-quality U.S. and
foreign corporate debt securities including commercial paper; and (iv) debt
obligations of banks and bank holding companies. The high-quality debt
securities described above will consist of those rated at the time of purchase
within one of the two highest grades assigned by Standard & Poor's Ratings
Services ("S&P") or Moody's Investors Service, Inc. ("Moody's") or, if unrated,
judged by Fund management to be of comparable quality. Up to 35% of the Income
Series' total assets may be invested in equity securities and in debt securities
rated below S&P's and Moody's two highest grades but rated at the time of
purchase BBB or better by S&P or Baa or better by Moody's or, if unrated, judged
by Fund management to be of comparable quality. Bonds rated Baa by Moody's or
BBB by S&P are considered medium-grade and have speculative characteristics and
are more sensitive to economic change than higher rated bonds. A description of
S&P's and Moody's ratings is included in the Appendix to the Statement of
Additional Information. Fundamental economic strength, credit quality, currency
exchange and interest-rate trends will be the principal determinants of the
various country, geographic and industry sector weightings within the Income
Series' portfolio. The Income Series will invest in countries and in currency
denominations where the combination of fixed-income market returns, price
appreciation of fixed-income obligations, equity securities and currency
exchange rate movements appear to present opportunities for an attractive total
return consistent with the Income Series' investment objective.
The U.S. Government securities in which the Income Series may invest include
direct obligations of the United States Treasury (such as Treasury bills, notes
and bonds) and obligations issued by United States Government agencies and
instrumentalities, including securities that are supported by the full faith and
credit of the United States (such as Government National Mortgage Association
"GNMA" certificates), securities that are supported by the right of the issuer
to borrow from the United States Treasury (such as securities of the Federal
Home Loan Banks) and securities supported solely by the creditworthiness of the
issuer (such as Federal National Mortgage Association "FNMA" and Federal Home
Loan Mortgage Corporation "FHLMC" securities).
The Income Series may purchase U.S. Government securities on a when-issued basis
and, while awaiting delivery and before paying for them ("settlement"), normally
may invest in short-term U.S. Government securities. The Income Series does not
start earning interest on these when-issued securities until settlement and
often they are sold prior to settlement. While this investment strategy may
contribute significantly to a portfolio turnover rate in excess of 100%, it has
little or no transaction costs or adverse tax consequences for the Income
Series. Transaction costs normally do not include brokerage because the Income
Series' fixed-income portfolio transactions usually are on a principal basis and
at the time of purchase the Series normally anticipates that any markups charged
will be more than offset by the anticipated economic benefits of the
transaction. During the period between purchase and settlement, the value of the
securities will fluctuate and assets consisting of cash and/or marketable
securities marked to market daily in an amount sufficient to make payment at
settlement will be segregated at our custodian in order to pay for the
commitment. There is a risk that market yields available at settlement may be
higher than yields obtained on the purchase date, which could result in
depreciation of value.
The other debt securities in which the Income Series may invest include, but are
not limited to, domestic and foreign, fixed- and floating-rate notes, bonds,
debentures, convertibles, certificates, warrants, commercial paper, and
principal and interest pass-throughs issued by governments,
<PAGE>
authorities, partnerships, corporations, trust companies, banks and bank holding
companies, and banker's acceptances, certificates of deposit, time deposits and
deposit notes issued by domestic and foreign banks.
Under normal circumstances, the Income Series will invest its total assets in
domestic and foreign securities with at least 65% of such assets invested in
long-term debt securities primarily traded in at least three countries,
including the United States. However, this guideline may not be followed for
temporary defensive periods when Fund management believes that it should invest
entirely in domestic securities or in securities primarily traded in one or more
foreign countries or in equity or short-term debt securities to a greater extent
than 35% of the total assets of the Income Series. The market prices of
long-term debt securities tend to be more volatile than those of short-term debt
securities when interest rates change.
INVESTMENT POLICIES AND TECHNIQUES
COMMON TO BOTH SERIES
The Fund will not be required to sell debt securities which become unrated or
are downgraded after purchase.
COUNTRY DIVERSIFICATION AND DEFENSIVE POSITION. It is the present intention of
each Series to invest its assets in securities which are primarily traded in the
United Kingdom, Western Europe (Austria, Germany, the Netherlands, France,
Switzerland, Italy, Belgium, Norway, Sweden, Denmark and Spain), Australia,
Canada, the Far East (Japan, Hong Kong, Korea, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Mexico and Venezuela) and the United States.
However, investments may be made, from time to time, in securities which are
primarily traded in other developed countries. Except for the guidelines
described above with respect to investing in at least three countries, including
the United States, there are no limitations on how much of each Series' assets
can be invested in securities primarily traded in any one country.
When Fund management believes that one or both Series should assume a temporary
defensive position because of unfavorable investment conditions, the affected
Series may temporarily hold its assets in cash and short-term money market
instruments.
FOREIGN CURRENCY HEDGING TECHNIQUES. Each Series may utilize various foreign
currency hedging techniques described below.
A forward foreign currency contract involves an obligation to purchase or sell a
specific amount of a currency at a set price on a future date. Each Series may
enter into forward foreign currency contracts (but not in excess of the amount a
Series has invested in non-U.S. dollar-denominated securities at the time any
such contract is entered into) in primarily two circumstances. First, when a
Series enters into a contract for the purchase or sale of a security denominated
in a foreign currency, the Series may desire to "lock in" the U.S. dollar price
of the security. By entering into a forward contract for the purchase or sale of
the amount of foreign currency involved in the underlying security transaction,
the Series will be able to protect against a possible loss resulting from an
adverse change in the relationship between the U.S. dollar and the subject
foreign currency during the period between the date of purchase or sale and the
date of settlement.
Second, when Fund management believes that the currency of a particular foreign
country may suffer a decline against the U.S. dollar, a Series may enter into a
forward contract to sell the amount of foreign currency approximating the value
of some or all of a Series' portfolio securities denominated in such foreign
currency or, in the alternative, a Series may use a cross-currency-hedging
technique whereby it enters into such a forward contract to sell another
currency (obtained in exchange for the currency which the portfolio securities
are denominated in if such securities are sold) which it expects to decline in a
similar manner but which has a lower transaction cost. Precise matching of the
forward contract and the value of the securities involved will generally not be
possible since the future value of such securities denominated in foreign
currencies will change as a consequence of market movements in the value of
those securities between the date the forward contract is entered into and the
date the contract matures. The Series intend to enter into such forward
contracts under this second circumstance periodically.
Each Series also may purchase foreign currency put options and write foreign
currency call options on U.S. exchanges or U.S. over-the-counter markets. A put
option gives a Series, upon payment of a premium, the right to sell a currency
at the exercise price until the expiration of the option and serves to insure
against adverse currency price movements in the underlying portfolio assets
denominated in that currency. The premiums paid for such foreign currency put
options will not exceed 5% of the net assets of a Series.
<PAGE>
Exchange-listed options markets in the United States include several major
currencies, and trading may be thin and illiquid. A number of major investment
firms trade unlisted options which are more flexible than exchange-listed
options with respect to strike price and maturity date. These unlisted options
generally are available on a wider range of currencies, including those of most
of the developed countries mentioned above. Unlisted foreign-currency options
generally are less liquid than listed options and involve the credit risk
associated with the individual issuer.
Unlisted options together with other illiquid securities may comprise no more
than 5% of each Series' net assets.
A foreign currency call option written by a Series gives the purchaser, upon
payment of a premium, the right to purchase from that Series a currency at the
exercise price until the expiration of the option. A Series may write a call
option on a foreign currency only in conjunction with a purchase of a put option
on that currency. Such a strategy is designed to reduce the cost of downside
currency protection by limiting currency appreciation potential. The face value
of such writing or cross-hedging (described above) may not exceed 90% of the
value of the securities denominated in such currency (a) invested in by a Series
to cover such call writing or (b) to be crossed.
Limitations imposed by the Internal Revenue Code on regulated investment
companies may restrict each Series' ability to engage in transactions in
options, forward contracts and cross hedges.
The Fund's custodian will segregate cash or liquid high-grade debt securities
belonging to a Series in an amount not less than that required by SEC Release
10666 with respect to a Series' assets committed to (a) writing options, (b)
forward foreign currency contracts and (c) cross hedges entered into by a
Series. If the value of the securities segregated declines, additional cash or
debt securities will be added on a daily basis (i.e., marked to market), so that
the segregated amount will not be less than the amount of a Series' commitments
with respect to such written options, forward foreign currency contracts and
cross hedges.
OTHER INVESTMENT TECHNIQUES COMMON TO BOTH SERIES
Each Series intends to utilize, from time to time, one or
more of the investment techniques identified below. It is currently intended
that no more than 5% of each Series' net assets will be at risk in the use of
any one of such investment techniques. While some of these techniques involve
risk when utilized independently, Fund management intends to use them to reduce
risk and volatility in the portfolios, although this result cannot be assured.
Covered Call Options. Each Series may write call options on securities it owns,
provided that the securities we hold to cover such options do not represent more
than 5% of a Series' net assets. A call option on stock gives the purchaser of
the option, upon payment of a premium to the writer of the option, the right to
call upon the writer to deliver a specified number of shares of a stock on or
before a fixed date at a predetermined price.
Rights and Warrants. Each Series may invest in rights and warrants to purchase
securities. Included within these purchases, but not exceeding 2% of the value
of each Series' net assets, may be warrants which are not listed on the New York
Stock Exchange or American Stock Exchange.
Repurchase Agreements. Each Series may enter into repurchase agreements with
respect to a security. A repurchase agreement is a transaction by which a Series
acquires a security and simultaneously commits to resell that security to the
seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon
date. Such repurchase agreement must, at all times, be collateralized by cash or
U.S. Government securities having a value equal to, or in excess of, the value
of the repurchase agreement.
OTHER POLICIES COMMON TO BOTH SERIES
It is currently intended that no more than 5% of each Series' net assets will be
at risk in the use of any one of the policies identified below.
Closed-end Investment Companies. Each Series may invest in shares of closed-end
investment companies if bought in the primary or secondary market with a fee or
commission no greater than the customary broker's commission. Shares of such
investment companies sometimes trade at a discount or premium in relation to
their net asset value and there may be duplication of fees, for example, to the
extent that a Series and the closed-end investment company both charge a
management fee.
Lending of Portfolio Securities. Each Series may seek to earn income by lending
its portfolio securities if the loan is collateralized and its terms are in
accordance with regulatory requirements.
<PAGE>
Emergency Borrowing. As a temporary measure for extraordinary or emergency
purposes, each Series may borrow money from banks on an unsecured basis.
Each Series' investment objective may not be changed without the shareholder
approval of that Series.
PORTFOLIO TURNOVER. The portfolio turnover rate for the fiscal year ended
December 31, 1995 was 83.32% versus 75.39% for the prior year for the Equity
Series and 1,073.69%, versus 1,230.20% for the prior year for the Income Series.
The high portfolio turnover rate for the Income Series relates to substantial
trading of U.S. and U.S. agency mortgage-backed securities to take advantage of
value changes among different agencies, coupons and maturities. Also, there was
significant movement of investments from country to country to take advantage of
return differentials.
4 RISK FACTORS
Investment in the Fund requires consideration of certain factors that are not
normally involved in investments in U.S. securities. Generally, most of the
assets of each Series will be denominated or traded in foreign currencies.
Accordingly, a change in the value of any foreign currency relative to the U.S.
dollar will result in a corresponding change in the U.S. dollar value of a
Series' assets denominated or traded in that currency. The performance of each
Series will be measured in U.S. dollars, the base currency of the Series.
Securities markets of foreign countries in which a Series may invest generally
are not subject to the same degree of regulation as the U.S. markets and may be
more volatile and less liquid than the major U.S. markets. Lack of liquidity may
affect a Series' ability to purchase or sell large blocks of securities and thus
obtain the best price. There may be less publicly-available information on
publicly-traded companies, banks and governments in foreign countries than is
generally the case for such entities in the United States. The lack of uniform
accounting standards and practices among countries impairs the validity of
direct comparisons of valuation measures (such as price/earnings ratios) for
securities in different countries. In addition, a Series may incur costs
associated with currency hedging and the conversion of foreign currency into
U.S. dollars and may be adversely affected by restrictions on the conversion or
transfer of foreign currency. Other considerations include political and social
instability, expropriation, higher transaction costs and different securities
settlement practices. Settlement periods for foreign securities, which are
sometimes longer than those for securities of U.S. issuers, may affect portfolio
liquidity. These different settlement practices may cause missed purchasing
opportunities and/or the loss of interest on money market and debt investments
pending further equity or long-term debt investments. In addition, foreign
securities held by a Series may be traded on days that the Series do not value
their portfolio securities, such as Saturdays and customary business holidays,
and, accordingly, a Series' net asset value may be significantly affected on
days when shareholders do not have access to the Series.
5 PURCHASES
You may buy our shares through any independent securities dealer having a sales
agreement with Lord Abbett, our exclusive selling agent. Place your order with
your investment dealer or send it to Lord Abbett Global Fund, Inc. (P.O. Box
419100, Kansas City, Missouri 64141). The minimum initial investment is $1,000,
except for Invest-A-Matic and Div-Move ($250 initial and $50 subsequent minimum)
and Retirement Plans ($250 minimum). Subsequent investments may be made in any
amount. See "Shareholder Services".
The net asset value of our shares is calculated every business day as of the
close of the New York Stock Exchange ("NYSE") by dividing net assets by the
number of shares outstanding. Securities are valued at their market value as
more fully described in the Statement of Additional Information.
Orders for shares received by the Fund prior to the close of the NYSE, or
received by dealers prior to such close and received by Lord Abbett prior to the
close of its business day, will be confirmed at the applicable public offering
price effective at such NYSE close. Orders received by
<PAGE>
dealers after the NYSE closes and received by Lord Abbett in proper form prior
to the close of its next business day will be executed at the applicable public
offering price effective as of the close of the NYSE on that next business day.
The dealer is responsible for the timely transmission of orders to Lord Abbett.
A business day is a day on which the NYSE is open for trading.
For information regarding the proper form of a purchase or redemption order,
call the Fund at 800-821-5129. This offering may be suspended, changed or
withdrawn. Lord Abbett reserves the right to reject any order.
The offering price is based on the per-share net asset value next computed after
your order is accepted plus a sales charge as follows:
<TABLE>
<CAPTION>
Equity Series Sales Charge as a Dealer's
Percentage of: Concession
as a To Compute
Net Percentage Offering
Offering Amount of Offering Price, Divide
Size of Investment Price Invested Price* NAV by
<S> <C> <C> <C> <C>
Less than $50,000 5.75% 6.10% 5.00% .9425
$50,000 to $99,999 4.75% 4.99% 4.00% .9525
$100,000 to $249,999 3.75% 3.90% 3.25% .9625
$250,000 to $499,999 2.75% 2.83% 2.25% .9725
$500,000 to $999,999 2.00% 2.04% 1.75% .9800
$1,000,000 or more No Sales Charge 1.00% 1.0000
</TABLE>
<TABLE>
<CAPTION>
Income Series Sales Charge as a Dealer's
Percentage of: Concession
as a To Compute
Net Percentage Offering
Offering Amount of Offering Price, Divide
Size of Investment Price Invested Price* NAV by
<S> <C> <C> <C> <C>
Less than $50,000 4.75% 4.99% 4.00% .9525
$50,000 to $99,999 4.75% 4.99% 4.25% .9525
$100,000 to $249,999 3.75% 3.90% 3.25% .9625
$250,000 to $499,999 2.75% 2.83% 2.50% .9725
$500,000 to $999,999 2.00% 2.04% 1.75% .9800
$1,000,000 or more No Sales Charge 1.00% 1.0000
<FN>
*Lord Abbett may, for specified periods, allow dealers to retain the full sales
charge for sales of shares during such periods, or pay an additional concession
to a dealer who, during a specified period, sells a minimum dollar amount of our
shares and/or shares of other Lord Abbett-sponsored funds. In some instances,
such additional concessions will be offered only to certain dealers expected to
sell significant amounts of shares. Lord Abbett may, from time to time,
implement promotions under which Lord Abbett will pay a fee to dealers with
respect to certain purchases not involving the imposition of a sales charge.
Additional payments may be paid from Lord Abbett's own resources and will be
made in the form of cash or, if permitted, non-cash payments. The non-cash
payments will include business seminars at resorts or other locations, including
meals and entertainment, or the receipt of merchandise. The cash payments will
include payment of various business expenses of the dealer.
</FN>
</TABLE>
In selecting dealers to execute portfolio transactions for the Fund's
portfolios, if two or more dealers are considered capable of obtaining best
execution, we may prefer the dealer who has sold our shares and/or shares of
other Lord Abbett-sponsored funds.
VOLUME DISCOUNTS. This section describes several ways to qualify for a lower
sales charge if you inform Lord Abbett or the Fund that you are eligible at the
time of purchase. (1) Any purchaser (as described below) may aggregate a
purchase in the Fund with purchases of any other eligible Lord Abbett-sponsored
fund, together with the current value at maximum offering price of any shares in
the Fund and in any eligible Lord Abbett-sponsored funds held by the purchaser.
(Holdings in the following funds are not eligible for the above rights of
accumulation: Lord Abbett Equity Fund ("LAEF"), Lord Abbett Series Fund
("LASF"), any series of the Lord Abbett Research Fund if not offered to the
general public ("LARF") and Lord Abbett U.S. Government Securities Money Market
Fund ("GSMMF"), except for existing holdings in GSMMF which are attributable to
shares exchanged from a Lord Abbett-sponsored fund offered with a front-end
sales charge or from a fund in the Lord Abbett Counsel Group.) (2) A purchaser
may sign a non-binding 13-month statement of intention to invest $50,000 or more
in the Fund or in any of the above eligible funds. If the intended purchases are
completed during the period, each purchase will be at the sales charge, if any,
applicable to the aggregate of such purchaser's intended purchases. If not
completed, each purchase will be at the sales charge for the aggregate of the
actual purchases. Shares issued upon reinvestment of dividends or distributions
are not included in the statement of intention. The term "purchaser" includes
(i) an individual, (ii) an individual and his or her spouse and children under
the age of 21 and (iii) a trustee or other fiduciary purchasing shares for a
single trust estate or single
<PAGE>
fiduciary account (including a pension, profit-sharing, or other employee
benefit trust qualified under Section 401 of the Internal Revenue Code -- more
than one qualified employee benefit trust of a single employer, including its
consolidated subsidiaries, may be considered a single trust, as may qualified
plans of multiple employers registered in the name of a single bank trustee as
one account), although more than one beneficiary is involved.
Our shares may be purchased at net asset value by our directors, employees of
Lord Abbett, employees of our shareholder servicing agent and employees of any
securities dealer having a sales agreement with Lord Abbett who consents to such
purchases or by the trustee or custodian under any pension or profit-sharing
plan or Payroll Deduction IRA established for the benefit of such persons or for
the benefit of any national securities trade organization to which Lord Abbett
belongs or any company with an account(s) in excess of $10 million managed by
Lord Abbett on a private-advisory-account basis. For purposes of this paragraph,
the terms "directors" and "employees" include a director's or employee's spouse
(including the surviving spouse of a deceased director or employee). The terms
"directors" and "employees of Lord Abbett" also include other family members and
retired directors and employees. Our shares also may be purchased at net asset
value (a) at $1 million or more, (b) with dividends and distributions from other
Lord Abbett-sponsored funds, except for dividends and distributions on shares of
LARF, LAEF, LASF and Lord Abbett Counsel Group, (c) under the loan feature of
the Lord Abbett-sponsored prototype 403(b) plan for share purchases representing
the repayment of principal and interest, (d) by certain authorized brokers,
dealers, registered investment advisers or other financial institutions who have
entered into an agreement with Lord Abbett in accordance with certain standards
approved by Lord Abbett, providing specifically for the use of our shares in
particular investment products made available for a fee to clients of such
brokers, dealers, registered investment advisers and other financial
institutions ("mutual fund wrap fee programs"), (e) by employees, partners and
owners of unaffiliated consultants and advisers to Lord Abbett or Lord
Abbett-sponsored funds who consent to such purchase if such persons provide
services to Lord Abbett or such funds on a continuing basis and are familiar
with such funds and (f) subject to appropriate documentation, through a
securities dealer where the amount invested represents redemption proceeds from
shares ("Redeemed Shares") of a registered open-end management investment
company not distributed or managed by Lord Abbett (other than a money market
fund), if such redemptions have occurred no more than 60 days prior to the
purchase of our shares, the Redeemed Shares were held for at least six months
prior to redemption and the proceeds of redemption were maintained in cash or a
money market fund prior to purchase. Purchasers should consider the impact, if
any, of contingent deferred sales charges in determining whether to redeem
shares for subsequent investment in our shares. Lord Abbett may suspend or
terminate the purchase option referred to in (f) above at any time.
Our shares may be issued at net asset value in exchange for the assets, subject
to possible tax adjustment, of a personal holding company or an investment
company.
RULE 12B-1 PLAN. The Fund has adopted a Rule 12b-1 Plan (the "Plan") which
authorizes the payment of distribution fees to dealers (except as to certain
accounts for which tracking data is not available) in order to provide
additional incentives for them (a) to provide continuing information and
investment services to their shareholder accounts and otherwise to encourage
their accounts to remain invested in the Fund and (b) to sell shares of the
Fund. Under the Plan the Fund pays to Lord Abbett, who passes on to dealers, (1)
an annual service fee (payable quarterly) of .25% of the average daily net asset
value of the Fund's shares sold by dealers and (2) a one-time 1% sales
distribution fee, at the time of sale, on all shares at the $1 million level
sold by dealers on or after June 1, 1990. The shareholder privileges of rights
of accumulation and 13-month statements of intention may be used in calculating
such sales eligible for the 1% sales distribution fee. Lord Abbett is required
to pay the full amount of the sales distribution fees to dealers as compensation
for selling our shares.
Holders of shares on which the 1% sales distribution fee has been paid will be
required to pay to the Fund a contingent deferred reimbursement charge of 1% of
the original cost or the then net asset value, whichever is less, of all shares
so purchased which are redeemed out of the Lord Abbett-sponsored family of funds
on or before the end of the twenty-fourth month after the month in which the
purchase occurred. (An exception is made for redemptions by tax-qualified plans
under Section 401 of the Internal Revenue Code due to plan loans, hardship
withdrawals, death, retirement, or separation from service with respect to plan
participants.) If the shares have been exchanged into another Lord
Abbett-sponsored fund and are thereafter redeemed out of the family on or before
the end of such twenty-fourth month, the charge will be collected for the Fund
by the other fund. The Fund will collect such a charge for other Lord
Abbett-sponsored funds in a similar situation. Shares of a fund or series on
which the 1% sales distribution fee has been paid may not be exchanged into a
fund or series with a Rule 12b-1 Plan for which the payment provisions have not
been in effect for at least one year.
<PAGE>
The Board of Directors of the Fund has approved, subject to shareholder approval
at a meeting to be held on June 19, 1996, a new Rule 12b-1 plan. Under the most
significant difference between the two plans, the board could approve under the
proposed new plan maximum annual fees of up to 0.50% of average daily net
assets. The board has approved under the proposed new plan, subject to such
shareholder approval, payments that, had they been in effect for the Fund's most
recent fiscal year, would have increased 12b-1 fees from 0.26% to 0.30% of
average net assets for the Equity Series and from 0.25% to 0.29% of average
daily net assets for the Income Series.
6 SHAREHOLDER SERVICES
We offer the following shareholder services:
Telephone Exchange Privilege: Shares may be exchanged, without a service charge,
for those of any other Lord Abbett-sponsored fund except for (i) LAEF, LARF,
LASF and Lord Abbett Counsel Group and (ii) certain tax-free single-state series
where the exchanging shareholder is a resident of a state in which such series
is not offered for sale (together, "Eligible Funds").
You or your representative with proper identification can instruct the Fund to
exchange uncertificated shares (held by the transfer agent) by telephone.
Shareholders have this privilege unless they refuse it in writing. The Fund will
not be liable for following instructions communicated by telephone that it
reasonably believes to be genuine and will employ reasonable procedures to
confirm that instructions received are genuine, including requesting proper
identification and recording all telephone exchanges. Instructions must be
received by the Fund in Kansas City (800-821-5129) prior to the close of the
NYSE to obtain each fund's net asset value per share on that day. Expedited
exchanges by telephone may be difficult to implement in times of drastic
economic or market change. The exchange privilege should not be used to take
advantage of short-term swings in the market. The Fund reserves the right to
terminate or limit the privilege of any shareholder who makes frequent
exchanges. The Fund can revoke the privilege for all shareholders upon 60 days'
prior written notice. A prospectus for the other Lord Abbett-sponsored fund
selected by you should be obtained and read before an exchange. Exercise of the
Exchange Privilege will be treated as a sale for federal income tax purposes
and, depending on the circumstances, a capital gain or loss may be recognized.
Systematic Withdrawal Plan: Except for retirement plans for which there is no
such minimum, if the maximum offering price value of your uncertificated shares
is at least $10,000, you may have periodic cash withdrawals automatically paid
to you in either fixed or variable amounts.
Div-Move: You can invest the dividends paid on your account ($250 initial and
$50 subsequent minimum investment) into an existing account in any other
Eligible Fund. The account must be either your account, a joint account for you
and your spouse, a single account for your spouse, or a custodial account for
your minor child under the age of 21. You should read the prospectus of the
other fund before investing.
Invest-A-Matic: You can make fixed, periodic investments ($50 minimum
investment) into the Fund and/or any Eligible Fund by means of automatic money
transfers from your bank checking account. You should read the prospectus of the
other fund before investing.
Retirement Plans: Lord Abbett makes available the retirement plan forms and
custodial agreements for IRAs (Individual Retirement Accounts including
Simplified Employee Pensions), 403(b) plans and pension and profit-sharing
plans, including 401(k) plans.
Householding: A new procedure has been inaugurated whereby a single copy of an
annual or semi-annual report is sent to an address to which more than one
registered shareholder of the Fund with the same last name has indicated mail is
to be delivered, unless additional reports are specifically requested in writing
or by telephone.
All correspondence should be directed to Lord Abbett Global Fund, Inc. (P.O. Box
419100, Kansas City, Missouri 64141; 800-821-5129).
7 OUR MANAGEMENT
Our business is managed by our officers on a day-to-day basis under the overall
direction of our Board of Directors. We employ Lord Abbett as investment manager
pursuant to a Management Agreement. Lord Abbett is solely responsible for
advising each Series of the Fund with respect to portfolio investments. Lord
Abbett has been an investment manager for over 65 years and currently manages
over $19 billion in a family of mutual funds and other advisory accounts. Lord
Abbett provides us with investment management services and executive and other
personnel, pays the remuneration of our officers and our directors affiliated
with Lord Abbett, provides us with office space and pays for ordinary and
necessary office and clerical expenses relating to research, statistical work
and supervision of our portfolios and certain other costs. Lord Abbett provides
<PAGE>
similar services to fifteen other Lord Abbett-sponsored funds having various
investment objectives and also advises other investment clients. E. Wayne
Nordberg, Executive Vice President of the Fund, serves as portfolio manager of
the Equity Series. Mr. Nordberg has over 35 years of investment experience and
joined Lord Abbett in 1988. Zane E. Brown, Executive Vice President of the Fund,
serves as portfolio manager of the Income Series. Mr. Brown is Lord Abbett's
Director of Fixed Income. Prior to joining Lord Abbett in 1992, Mr. Brown was
Executive Vice President of Equitable Capital Management Corporation. He has
over 19 years of investment experience.
The Fund's Board of Directors has approved, subject to approval by the Equity
Series shareholders, an agreement (the "New Agreement") with respect to the
Equity Series of the Fund between Lord Abbett and Dunedin Fund Managers Limited
(the "Sub-Adviser"), under which the Sub-Adviser provides Lord Abbett with
advice with respect to that portion of the Equity Series' assets invested in
countries other than the United States (the "foreign assets"). The New Agreement
replaces the agreement (the "Prior Agreement") between Lord Abbett and the
Sub-Adviser under which the Sub-Adviser provided Lord Abbett with advice with
respect to the foreign assets of both Series. The Prior Agreement terminated on
March 19, 1996, when Edinburgh Fund Managers Group plc ("Edinburgh") purchased
100% of the outstanding voting stock of the sole stockholder of the Sub-Adviser.
The Fund's Board of Directors has determined that, in view of Lord Abbett's
anticipated capability with respect to foreign debt investments, a sub-adviser
is no longer desirable with respect to the Income Series, and so Lord Abbett
will continue as the investment manager of the Income Series under the
Management Agreement referred to below without the assistance of a sub-adviser.
The New Agreement, which is subject to the approval of the Equity Series
shareholders at a meeting to be held on June 19, 1996, contains the same terms
and provides for payment of a sub-advisory fee on the same basis (one-half of
the fee paid to Lord Abbett) with respect to the Equity Series as contained and
provided for in the Prior Agreement. The acquisition of the Sub-Adviser by
Edinburgh created a major fund management group based in Scotland, with assets
under management valued at approximately $12 billion. Edinburgh has advised Lord
Abbett and the Fund that it currently anticipates that all of the Sub-Adviser's
officers and employees will continue in their present capacities and will
continue to provide sub-investment services to Lord Abbett with respect to the
Equity Series with no material changes in operating personnel, except that the
Sub-Adviser has advised the Fund that it will now have access to the resources
of the Edinburgh group, which will have some 50 investment professionals,
representing an enlarged fund management capability. The Sub-Adviser and its
parent holding company, DFM Holdings Limited, are located at Donaldson House, 97
Haymarket Terrace, Edinburgh, Scotland. The Sub-Adviser furnishes Lord Abbett
with advice and recommendations with respect to the foreign assets, including
advice on the allocation of investments among foreign securities markets and
foreign equity and debt securities and, subject to consultation with Lord
Abbett, advice as to cash holdings and what securities in the portfolios of
foreign assets should be purchased, held or disposed of. The Sub-Adviser also
gives advice with respect to foreign currency matters.
Subject to the direction of the Board of Directors, Lord Abbett, in consultation
with the Sub-Adviser, will determine at least quarterly, and more frequently as
Lord Abbett determines, the percentage of the assets of the Equity Series that
shall be allocated (the "Asset Allocation") for investment in the United States
and in foreign markets, respectively.
Under the Management Agreement, the Fund is obligated to pay Lord Abbett a
monthly fee based on average daily net assets for each month at annual rates of
.75 of 1% for the Equity Series and .50 of 1% for the Income Series. For the
fiscal year ended December 31, 1995, Lord Abbett paid the Sub-Adviser under the
Prior Agreement a monthly fee equal to one-half of Lord Abbett's fee as
described above. For the fiscal year ended December 31, 1995, the fees paid to
Lord Abbett as a percentage of average daily net assets for the Equity and
Income Series were at the annual rate of .75 of 1% and .50 of 1%, respectively.
In addition, the Fund pays all expenses not expressly assumed by Lord Abbett.
The ratios of expenses, including management fee expenses, to average net assets
for the year ended December 31, 1995 were 1.63% and 1.04%, respectively, for the
Equity and Income Series.
Each Series is contingently obligated to repay Lord Abbett for any fees and
expenses assumed by Lord Abbett to the extent that such repayments would not in
any year, when added to expenses actually incurred in that year, increase the
expense ratio above 1.5%, in the case of the Equity Series, or 1.3%, in the case
of the Income Series. While the Income Series has repaid its contingent
obligation to Lord Abbett, the entire amount of the contingent repayment
obligation remains outstanding for the Equity Series ($283,550 as of December
31, 1995). See the Statement of Additional Information.
8 DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS AND TAXES
Net investment income is paid to Equity and Income Series' shareholders
semi-annually and monthly, respectively, as a dividend. Dividends may be taken
in cash or reinvested in additional shares at net asset value without a sales
charge. If you elect a cash payment (i) a check will be mailed to you as soon as
possible after the monthly reinvestment date or (ii) if you arrange for direct
deposit, your payment will be wired directly to your bank account within one day
after the date on which the dividend is paid.
A long-term capital gains distribution is made by a Series when it has net
profits during the year from sales of securities which a Series has held more
than one year. If a Series realizes net short-term capital gains, they also will
be distributed. Any capital gains distribution will be paid in December. You may
take the distribution in cash or reinvest it in additional shares at net asset
value without a sales charge.
Distributions (taxed as ordinary income) from gains attributable to changes in
exchange rates of foreign currencies will automatically be reinvested in
additional Series shares at net asset value unless a shareholder elects to take
capital gains distributions in cash.
Supplemental dividends and distributions also may be paid in December or
January. Dividends and distributions declared in October, November or December
of any year to shareholders of record as of a date in such a month will be
treated for federal income tax purposes as having been received by shareholders
in that year if they are paid before February 1 of the following year.
We intend to continue to meet the requirements of Subchapter M of the Internal
Revenue Code with respect to each Series. We will try to distribute to
shareholders all our net investment income and net realized capital gains so as
to avoid the necessity of the Fund paying federal income tax.
<PAGE>
Shareholders, however, must report dividends and capital gains distributions as
taxable income. Distributions derived from net long-term capital gains which are
designated by a Series as "capital gains dividends" will be taxable to
shareholders as long-term capital gains, whether received in cash or shares,
regardless of how long a taxpayer held the shares. Under current law, net
long-term capital gains are taxed at the rates applicable to ordinary income,
except that the maximum rate for long-term capital gains for individuals is 28%.
Legislation pending in Congress as of the date of this Prospectus, would have
the effect of reducing the federal income tax rate on capital gains. See
"Performance" for a discussion of the Income Series' purchase of high-coupon
securities at a premium and the distributions to shareholders as ordinary income
of all interest income on those securities. This practice increases current
income of the Income Series, but may result in higher taxable income to the
Income Series shareholders than other portfolio management practices.
A Series may be subject to foreign withholding taxes which would reduce the
yield on its investments. Tax treaties between certain countries and the United
States may reduce or eliminate such taxes. Shareholders who are subject to
United States federal income tax may be entitled, subject to certain rules and
limitations, to claim a federal income tax credit or deduction for foreign
income taxes paid by a Series. See the Statement of Additional Information for
additional details.
Shareholders may be subject to a $50 penalty under the Internal Revenue Code and
we may be required to withhold and remit to the U.S. Treasury a portion (31%) of
any redemption or repurchase proceeds (including the value of shares exchanged
to another Lord Abbett-sponsored fund) and of any dividend or distribution on
any account where the payee (shareholder) failed to provide a correct taxpayer
identification number or to make certain required certifications.
The Fund will inform shareholders of the federal tax status of each dividend and
distribution shortly after the end of each calendar year. Shareholders should
consult their tax advisers concerning applicable state and local taxes as well
as on the tax consequences of gains or losses from the redemption or exchange of
our shares.
9 REDEMPTIONS
To obtain the proceeds of an expedited redemption of $50,000 or less, you or
your representative with proper identification can telephone the Fund. The Fund
will not be liable for following instructions communicated by telephone that it
reasonably believes to be genuine and will employ reasonable procedures to
confirm that instructions received are genuine, including requesting proper
identification, recording all telephone redemptions and mailing the proceeds
only to the named shareholder at the address appearing on the account
registration.
If you do not qualify for the procedures described above, to redeem shares
directly, send your request to Lord Abbett Global Fund, Inc. (P.O. Box 419100,
Kansas City, Missouri 64141) with signature(s) and any legal capacity of the
signer(s) guaranteed by an eligible guarantor, accompanied by any certificates
for shares to be redeemed and other required documentation. We will make payment
of the net asset value of the shares on the date the redemption order was
received in proper form. Payment will be made within three days. The Fund may
suspend the right to redeem shares for not more than seven days (or longer under
unusual circumstances as permitted by federal law). If you have purchased Fund
shares by check and subsequently submit a redemption request, redemption
proceeds will be paid upon clearance of your purchase check, which may take up
to 15 days. To avoid delays you may arrange for the bank upon which a check was
drawn to communicate to the Fund that the check has cleared. Shares also may be
redeemed by the Fund at net asset value through your securities dealer who, as
an unaffiliated dealer, may charge you a fee. If your dealer receives your order
prior to the close of the NYSE and communicates it to Lord Abbett, as our agent,
prior to the close of Lord Abbett's business day, you will receive the net asset
value of the shares being redeemed as of the close of the NYSE on that day. If
the dealer does not communicate such an order to Lord Abbett until the next
business day, you will receive the net asset value as of the close of the NYSE
on that next business day.
Shareholders who have redeemed their shares have a one-time right to reinvest
into another account having the identical registration, in any of the Eligible
Funds, at the then applicable net asset value of the shares being purchased
without the payment of a sales charge. Such reinvestment
<PAGE>
must be made within 60 days of the redemption and is limited to no more than the
dollar amount of the redemption proceeds.
Under certain circumstances and subject to prior written notice, the Fund's
Board of Directors may authorize redemption of all of the shares in any account
in which there are fewer than 25 shares.
Tax-Qualified Plans: For redemptions of $50,000 or less follow normal redemption
procedures. Redemptions over $50,000 must be in writing from the employer,
broker or plan administrator stating the reason for the redemption. The reason
for the redemption must be received by the Fund prior to, or concurrent with,
the redemption request.
10 PERFORMANCE
The Lord Abbett Global Fund's Equity Series ended fiscal 1995 on December 31
with a per-share net asset value of $11.96 versus $11.07 one year ago (after
adjustment for a $.48 capital gains distribution). Based on these distributions,
the total return for 1995 was 9.20%.
During the first half of 1995, the Equity Series maintained its largest
commitment to the North American market while reducing exposure to Asia. At
mid-year, superior relative performance in North America and current valuations
favored a reversal of that policy. The Americas component of the
Equity Series was reduced, while the Pacific Rim was moved up from 24% to 46% of
the Equity Series' assets.
The Income Series ended fiscal 1995 on December 31 with a per-share net asset
value of $8.58 versus $7.98 one year ago. Based on this net asset value and the
monthly dividend of $.055 per share, annualized, the Series' distribution rate
was 7.7%; based on the December 31 maximum offering price of $9.01, this rate
was 7.3%. The Series' total return was 17.9% for the fiscal year.
1995 was characterized by slowing economic growth and lower interest rates in
the U.S., which gave way to similar conditions abroad. Globally, inflation also
remained at low, favorable levels. In the first half of the year, when the
dollar was weak, the Income Series benefited from its foreign exposure. However,
by August, the dollar began to appreciate relative to the yen. As we anticipated
the dollar would also gain strength against other currencies (such as the German
mark and the French franc) we acted defensively by hedging our exposure to these
currencies and reducing our long-term holdings in Japan. In addition, we
increased our weighting in countries with higher yielding securities, such as
Italy and Spain.
YIELD AND TOTAL RETURN. Yield and total return data may, from time to time, be
included in advertisements about the Fund. "Yield" is calculated by dividing a
Series' annualized net investment income per share during a recent 30-day period
by the maximum public offering price per share on the last day of that period.
The Fund's yield reflects the deduction of the maximum initial sales charge and
reinvestment of all income dividends and capital gains distributions. "Total
return" for the one-, five- and life-of-fund periods represents the average
annual compounded rate of return on an investment of $1,000 in a Series at the
maximum public offering price. Total return also may be presented for other
periods or based on investment at reduced sales charge levels or net asset
value. Any quotation of total return not reflecting the maximum initial sales
charge would be reduced if such sales charge were used. Quotations of yield or
total return for any period when an expense limitation is in effect will be
greater than if the limitation had not been in effect.
The Income Series' dividend distribution rate differs from its SEC yield
primarily because the Income Series may purchase short- and intermediate-term
high-coupon securities at a premium and, consistent with applicable tax
regulations, distribute to shareholders all of the interest income on these
securities without amortizing the premiums. This practice also is used by the
Income Series for financial statement purposes and is in accordance with
generally accepted accounting principles. In other words, the Income Series may
pay more than face value for a security that pays a greater-than-market rate of
interest and then distribute all such interest as dividends. The principal
payable on the security at maturity will equal the security's face value, and so
the market value of the security will gradually decrease to face value, assuming
no changes in the market
<PAGE>
rate of interest or in the credit quality of the issuer. Shareholders of the
Income Series should recognize that such dividends will, therefore, tend to
decrease the net asset value per share. Dividends paid from this interest income
are taxable to shareholders of the Income Series at ordinary income tax rates.
The Income Series may make distributions in excess of net investment income from
time to time to provide more stable dividends. Such distributions could cause
slight decreases in net asset values over time, but historically have not
resulted in a return of capital for tax purposes.
See "Past Performance" in the Statement of Additional Information for a more
detailed discussion concerning the computation of each Series' total return and
yield.
This Prospectus does not constitute an offering in any jurisdiction in which
such offer is not authorized or in which the person making such offer is not
qualified to do so or to anyone to whom it is unlawful to make such offer.
No person is authorized to give any information or to make any representations
not contained in this Prospectus, or in supplemental sales material authorized
by the Fund and no person is entitled to rely upon any information or
representation not contained herein or therein.
<PAGE>
Comparison of change in value of a $10,000 investment in Lord Abbett Global Fund
EquitySeries, assuming reinvestment of all dividends and distributions, and the
Morgan Stanley World Index.
<TABLE>
<CAPTION>
FUND FUND
AT AT MORGAN
NET MAXIMUM STANLEY
ASSET OFFERING WORLD
DATE VALUE PRICE INDEX
---- ------ -------- ----------
<S> <C> <C> <C>
09-30-88 $10,000 $10,000
12-31-88 10,437 $ 9,837 11,143
12-31-89 12,288 11,582 13,059
12-31-90 10,798 10,178 10,901
12-31-91 12,392 11,681 12,969
12-31-92 12,178 11,478 12,365
12-31-93 15,351 14,469 15,225
12-31-94 15,337 14,456 16,075
12-31-95 16,747 15,785 19,501
<FN>
(1)Data reflects the deduction of the maximum sales charge of 5.75%.
(2)Performance numbers for the unmanaged Morgan Stanley World Index do not
reflect transaction costs or management fees. An investor cannot invest
directly in the Index.
(3)Total return is the percent change in value, after deduction of the maximum
sales charge of 5.75%, with all dividends and distributions reinvested for
the periods shown ending December 31, 1995 using the SEC-required uniform
method to compute such return.
</FN>
</TABLE>
Comparison of change in value of a $10,000 investment in Lord Abbett Global Fund
Income Series, assuming reinvestment of all dividends and distributions, and the
J.P. Morgan Global Government Bond Index.
<TABLE>
<CAPTION>
FUND FUND J.P.
AT AT MORGAN
NET MAXIMUM GLOBAL
ASSET OFFERING GOV'T BOND
DATE VALUE PRICE INDEX
---- ------ -------- ----------
<S> <C> <C> <C>
09-30-88 $10,000 $10,000
12-31-88 10,141 $ 9,659 10,422
12-31-89 11,214 10,682 11,132
12-31-90 12,546 11,950 12,442
12-31-91 14,344 13,662 14,363
12-31-92 15,169 14,449 15,016
12-31-93 16,806 16,007 16,075
12-31-94 16,235 15,463 17,074
12-31-95 19,134 18,224 19,547
<FN>
(1)Data reflects the deduction of the maximum sales charge of 4.75%.
(2)Performance numbers for the unmanaged J.P. Morgan Global Government Bond
Index do not reflect transaction costs or management fees. An investor cannot
invest directly in the Index.
(3)Total return is the percent change in value, after deduction of the maximum
sales charge of 4.75%, with all dividends and distributions reinvested for
the periods shown ending December 31, 1995 using the SEC-required uniform
method to compute such return.
</FN>
</TABLE>
<PAGE>
Underwriter and Investment Manager
Lord, Abbett & Co.
The General Motors Building
767 Fifth Avenue
New York, New York 10153-0203
212-848-1800
Custodian
The Bank of New York
48 Wall Street
New York, New York 10286
Transfer Agent and Dividend
Disbursing Agent
United Missouri Bank of Kansas City, N.A.
Tenth and Grand
Kansas City, Missouri 64141
Shareholder Servicing Agent
DST Systems, Inc.
P.O. Box 419100
Kansas City, Missouri 64141
800-821-5129
Auditors
Deloitte & Touche llp
Counsel
Debevoise & Plimpton
Printed in the U.S.A.
<PAGE>
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
Part B - Statement of Net Assets at December 31, 1995.
Statement of Operations for the year ended December 31,
1995. Statements of Changes in Net Assets for the year ended
December 31, 1994 and 1995. Financial Highlights for the
Period September 30, 1988 (commencement of operations) -
December 31, 1988 and each of six separate fiscal years
ended December 31, 1995.
(b) Exhibits -
99B.1 Articles of Incorporation**
99B.2 By-Laws**
99B.6 Distribution Agreement**
99B.7 a Retirement Plan for Non-interested Person
Directors and Trustees of Lord Abbett
Funds.***
99B.7 b Lord Abbett Prototype Retirements Plans**
(1) 401(k)
(2) IRA
(3) 403(b)
(4) Profit-Sharing, and
(5) Money Purchases
99.B11 Consent of Deloitte & Touche*
99.B16 Total Return and Yield Computations*
* Filed herewith.
** Previously filed.
*** Incorporated by reference to Post-Effective Amendment
No. 7 to the Registration Statement (on Form N1-A)
of Lord Abbett Equity Fund (File No. 811-6033).
Item 25. Persons Controlled by or Under Common Control with Registrant
None.
Item 26. Number of Record Holders of Securities
At April 1, 1996 -
Equity Series 9,273
Income Series 13,126
Item 27. Indemnification
Registrant is incorporated under the laws of the State of
Maryland and is subject to Section 2-418 of the Corporations and
Associations Article of the Annotated Code of the State of
Maryland controlling the indemnification of directors and
officers. Since Registrant has its executive offices in the State
of New York, and is qualified as a foreign corporation doing
business in such State, the persons covered by the foregoing
statute may also be entitled to and subject to the limitations of
the indemnification provisions of Section 721-726 of the New York
Business Corporation Law.
The general effect of these statutes is to protect officers,
directors and employees of Registrant against legal liability and
expenses incurred by reason of their positions with the
Registrant. The statutes provide
1
<PAGE>
for indemnification for liability for proceedings not brought on
behalf of the corporation and for those brought on behalf of the
corporation, and in each case place conditions under which
indemnification will be permitted, including requirements that
the officer, director or employee acted in good faith. Under
certain conditions, payment of expenses in advance of final
disposition may be permitted. The By-Laws of Registrant, without
limiting the authority of Registrant to indemnify any of its
officers, employees or agents to the extent consistent with
applicable law, makes the indemnification of its directors
mandatory subject only to the conditions and limitations imposed
by the above-mentioned Section 2-418 of Maryland Law and by the
provisions of Section 17(h) of the Investment Company Act of 1940
as interpreted and required to be implemented by SEC Release No.
IC-11330 of September 4, 1980.
In referring in its By-Laws to, and making indemnification of
directors subject to the conditions and limitations of, both
Section 2-418 of the Maryland Law and Section 17(h) of the
Investment Company Act of 1940, Registrant intends that
conditions and limitations on the extent of the indemnification
of directors imposed by the provisions of either Section 2-418 or
Section 17(h) shall apply and that any inconsistency between the
two will be resolved by applying the provisions of said Section
17(h) if the condition or limitation imposed by Section 17(h) is
the more stringent. In referring in its By-Laws to SEC Release
No. IC-11330 as the source for interpretation and implementation
of said Section 17(h), Registrant understands that it would be
required under its By-Laws to use reasonable and fair means in
determining whether indemnification of a director should be made
and undertakes to use either (1) a final decision on the merits
by a court or other body before whom the proceeding was brought
that the person to be indemnified ("indemnitee") was not liable
to Registrant or to its security holders by reason of willful
malfeasance, bad faith, gross negligence, or reckless disregard
of the duties involved in the conduct of his office ("disabling
conduct") or (2) in the absence of such a decision, a reasonable
determination, based upon a review of the facts, that the
indemnitee was not liable by reason of such disabling conduct, by
(a) the vote of a majority of a quorum of directors who are
neither "interested persons" (as defined in the 1940 Act) of
Registrant nor parties to the proceeding, or (b) an independent
legal counsel in a written opinion. Also, Registrant will make
advances of attorneys' fees or other expenses incurred by a
director in his defense only if (in addition to his undertaking
to repay the advance if he is not ultimately entitled to
indemnification) (1) the indemnitee provides a security for his
undertaking, (2) Registrant shall be insured against losses
arising by reason of any lawful advances, or (3) a majority of a
quorum of the non- interested, non-party directors of Registrant,
or an independent legal counsel in a written opinion, shall
determine, based on a review of readily available facts, that
there is reason to believe that the indemnitee ultimately will be
found entitled to indemnification.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expense incurred or
paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
In addition, Registrant maintains a directors' and officers'
errors and omissions liability insurance policy protecting
directors and officers against liability for breach of duty,
negligent act, error or omission committed in their capacity as
directors or officers. The policy contains certain exclusions,
among which is exclusion from coverage for active or deliberate
dishonest or fraudulent acts and exclusion for fines or penalties
imposed by law or other matters deemed uninsurable.
2
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Lord, Abbett & Co. acts as investment advisor for fifteen, other
open-end investment companies (of which it is principal
underwriter for fifteen), and as investment adviser to
approximately 5,100 private accounts. Other than acting as
directors and/or officers of open-end investment companies
managed by Lord, Abbett & Co., none of Lord, Abbett & Co.'s
partners has, in the past two fiscal years, engaged in any other
business, profession, vocation or employment of a substantial
nature for his own account or in the capacity of director,
officer, employee, partner or trustee of any entity except as
follows:
John J. Walsh
Trustee
The Brooklyn Hospital Center
100 Parkside Avenue
Brooklyn, N.Y.
Item 29. Principal Underwriter
(a) Lord Abbett Affiliated Fund, Inc.
Lord Abbett U. S. Government Securities Fund, Inc.
Lord Abbett Bond-Debenture Fund, Inc.
Lord Abbett Value Appreciation Fund, Inc.
Lord Abbett Developing Growth Fund, Inc.
Lord Abbett Tax-Free Income Fund, Inc.
Lord Abbett California Tax-Free Income Fund, Inc.
Lord Abbett Fundamental Value Fund, Inc.
Lord Abbett U.S. Government Securities Money Market Fund,
Inc.
Lord Abbett Series Fund, Inc.
Lord Abbett Equity Fund
Lord Abbett Tax-Free Income Trust
Lord Abbett Securities Trust
Lord Abbett Investment Trust
Lord Abbett Research Fund, Inc.
Investment Adviser
American Skandia Trust (Lord Abbett Growth and Income
Portfolio)
(b) The partners of Lord, Abbett & Co. are:
Name and Principal Positions and Offices
Business Address(1) with Registrant
Ronald P. Lynch Chairman
Robert S. Dow President
E. Wayne Nordberg Executive Vice President
Kenneth B. Cutler Vice President & Secretary
Stephen I. Allen Vice President
Daniel E. Carper Vice President
Robert G. Morris Vice President
Thomas S. Henderson Vice President
John J. Walsh Vice President
3
<PAGE>
(1) Each of the above has a principal business address
767 Fifth Avenue, New York, NY 10153
(c) Not applicable
Item 30. Location of Accounts and Records
Registrant maintains the records required by Rules 31a -
1(a) and (b) and 31a - 2(a) at its main office.
Lord, Abbett & Co. maintains the records required by Rules
31a - 1(f) and 31a - 2(e) at its main office.
Certain records such as canceled stock certificates and
correspondence may be physically maintained at the main
office of the Registrant's Transfer Agent, Custodian, or
Shareholder Servicing Agent within the requirements of Rule
31a-3.
Item 31. Management Services
None
Item 32. Undertakings
The Registrant undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's
latest annual report to shareholders, upon request and
without charge.
The registrant undertakes, if requested to do so by the
holders of at least 10% of the registrant's outstanding
shares, to call a meeting of shareholders for the purpose of
voting upon the question of removal of a director or
directors and to assist in communications with other
shareholders as required by Section 16(c).
4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 the Registrant certifies that it meets all the requirements
for effectiveness of this Registration Statement pursuant to Rule 485(b) under
the Securities Act of 1933 and has duly caused this Registration Statement
and/or any amendment thereto to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York and State of New York on the
29th day of April 1996.
LORD ABBETT GLOBAL FUND, INC.
By /S/ RONALD P. LYNCH
Ronald P. Lynch, Chairman
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated.
NAME TITLE DATE
- ----- ----- ----
Chairman,
/s/ Ronald P. Lynch & Director April 29, 1996
/s/ John J. Gargana, Jr. Vice President & April 29, 1996
Chief Financial Officer
/s/ Robert S. Dow President & Director April 29, 1996
/s/ E. Thayer Bigelow Director April 29, 1996
/s/ Stewart S. Dixon Director April 29, 1996
/s/ John C. Jansing Director April 29, 1996
/s/ C. Alan MacDonald Director April 29, 1996
/s/ Hansel B. Millican, Jr. Director April 29, 1996
/s/ Thomas J. Neff Director April 29, 1996
Thomas S. Henderson Director
<PAGE>
EXHIBIT INDEX
Exhibit
No. Description
- ------ -----------
99.B11 Consent of Deloitte & Touche
99.B16 Total Return and Yield Computations
27 Financial Data Schedule
EXHIBIT 99.B11
CONSENT OF INDEPENDENT AUDITORS
Lord Abbett Global Fund, Inc.:
We consent to the use in Post-Effective Amendment No. 8 to Registration
Statement No. 33-20309 of our report dated February 9, 1996 appearing in the
annual report to shareholders and to the reference to us under the captions
"Financial Highlights" in the Prospectus and "Investment Advisory and Other
Services" and "Financial Statements" in the Statement of Additional Information,
both of which are part of such Registration Statement.
/s/ DELOITTE & TOUCHE LLP
New York, New York
April 26, 1996
EXHIBIT 99.B16
Lord Abbett Global Fund, Inc.
(Income Series)
Post Effective Amendment No. 8 on Form N-1A
Results of a $1,000 investment reflecting the maximum sales charge (4.75) and
the reinvestment of all distributions:
Period Ending December 31, 1995
1 Year 5 Years Life of Fund
------ ------- ------------
P = 1,000 P = 1,000 P = 1,000
N = 1 N = 5 N = 7.25
ERV = 1123 ERV = 1452 ERV = 1823
T = Average annual total return
P(1+T)N = ERV
<TABLE>
<CAPTION>
<S> <C> <C>
1,000 (1+T)1 = 1123 1,000 (1+T)5 = 1452 1,000 (1+T)5 = 1823
(1+T) = 1123 (1+T)5 = 1452 (1+T)5 = 1823
----- ----- -----
1,000 1,000 1,000
1+T = 1123 1+T = [1452].20 1+T = [1823].1378
----- ------- -------
1,000 [1,000] [1,000]
T = [1123] - 1 T = [1452].20 -1 T = [1823].1378 -1
------- ------- -------
[1,000] [1,000] [1,000]
T = 12.30% T = 7.74% T = 9.64%
</TABLE>
*The Fund's Income Series commenced operations on 9/30/88
<PAGE>
Lord Abbett Global Fund, Inc.
(Equity Series)
Post Effective Amendment No. 8 on Form N-1A
Results of a $1,000 investment reflecting the maximum sales charge (5.75) and
the reinvestment of all distributions:
Period Ending December 31, 1995
1 Year 5 Years Life of Fund
------ ------- ------------
P = 1,000 P = 1,000 P = 1,000
N = 1 N = 5 N = 7.25
ERV = 1029 ERV = 1462 ERV = 1578
T = Average annual total return
P(1+T)N = ERV
<TABLE>
<CAPTION>
<S> <C> <C>
1,000 (1+T)1 = 1029 1,000 (1+T)5 = 1462 1,000 (1+T)5 = 1578
(1+T) = 1029 (1+T)5 = 1462 (1+T)7.25 = 1578
----- ----- -----
1,000 1,000 1,000
1+T = 1029 1+T = [1462].20 1+T = [1578].1378
----- ------- -------
1,000 [1,000] [1,000]
T = [1029] - 1 T = [1462].20 -1 T = [1578].1378 -1
------- ------- -------
[1,000] [1,000] [1,000]
T = 2.90% T = 7.89% T = 6.49%
</TABLE>
*The Fund's Equity Series commenced operations on 9/30/88
<PAGE>
Calculation of yield appearing in the Statement of Additional Information for
Lord Abbett Global Fund - Income Series Post- Effective Amendment No. 8 on Form
N-1A
YIELD FORMULA
For the 30 Days
Ended December 30, 1995
YIELD = 2[(a-b +1)6-1] = 4.62%
cd
Where: a = Fund dividends and interest earned during the period in the
amount of $1,143,826
b = Fund expenses accrued for the period (net of reimbursements)
in the amount of $194,613
c = The average daily number of Series shares outstanding during
the period that were entitled to receive dividends were
27,604,592
d = The maximum offering price per Series share on the last day of
the period was $9.01
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000829901
<NAME> LORD ABBETT GLOBAL FUND, INC.
<SERIES>
<NUMBER> 1
<NAME> EQUITY SERIES
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 76484445
<INVESTMENTS-AT-VALUE> 80328245
<RECEIVABLES> 12266871
<ASSETS-OTHER> 105320
<OTHER-ITEMS-ASSETS> 4050000
<TOTAL-ASSETS> 96750436
<PAYABLE-FOR-SECURITIES> 11250191
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 768865
<TOTAL-LIABILITIES> 12019056
<SENIOR-EQUITY> 7083
<PAID-IN-CAPITAL-COMMON> 79699992
<SHARES-COMMON-STOCK> 7083040
<SHARES-COMMON-PRIOR> 7247971
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 90350
<ACCUMULATED-NET-GAINS> 1067077
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4054666
<NET-ASSETS> 84731380
<DIVIDEND-INCOME> 1924122
<INTEREST-INCOME> 498746
<OTHER-INCOME> 0
<EXPENSES-NET> 1343262
<NET-INVESTMENT-INCOME> 1079606
<REALIZED-GAINS-CURRENT> 3386066
<APPREC-INCREASE-CURRENT> 2793155
<NET-CHANGE-FROM-OPS> 7258827
<EQUALIZATION> (33583)
<DISTRIBUTIONS-OF-INCOME> 1159614
<DISTRIBUTIONS-OF-GAINS> 3241931
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1071166
<NUMBER-OF-SHARES-REDEEMED> 1584676
<SHARES-REINVESTED> 348579
<NET-CHANGE-IN-ASSETS> 992238
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1061256
<OVERDISTRIB-NII-PRIOR> 115073
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 617448
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1343262
<AVERAGE-NET-ASSETS> 82554900
<PER-SHARE-NAV-BEGIN> 11.55
<PER-SHARE-NII> .16
<PER-SHARE-GAIN-APPREC> .90
<PER-SHARE-DIVIDEND> .17
<PER-SHARE-DISTRIBUTIONS> .48
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.96
<EXPENSE-RATIO> 1.63
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000829901
<NAME> LORD ABBETT GLOBAL FUND, INC.
<SERIES>
<NUMBER> 2
<NAME> INCOME SERIES
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 274616865
<INVESTMENTS-AT-VALUE> 278959945
<RECEIVABLES> 86189208
<ASSETS-OTHER> 800420
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 365949573
<PAYABLE-FOR-SECURITIES> 125590590
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2068387
<TOTAL-LIABILITIES> 127658977
<SENIOR-EQUITY> 27770
<PAID-IN-CAPITAL-COMMON> 253951476
<SHARES-COMMON-STOCK> 27769696
<SHARES-COMMON-PRIOR> 31266119
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 318773
<ACCUMULATED-NET-GAINS> (20352403)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5010295
<NET-ASSETS> 238290596
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 21398160
<OTHER-INCOME> 0
<EXPENSES-NET> 2575543
<NET-INVESTMENT-INCOME> 18722617
<REALIZED-GAINS-CURRENT> 5675438
<APPREC-INCREASE-CURRENT> 16480478
<NET-CHANGE-FROM-OPS> 40878533
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 19419519
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 3359656
<NUMBER-OF-SHARES-SOLD> 1228622
<NUMBER-OF-SHARES-REDEEMED> 6086496
<SHARES-REINVESTED> 1361451
<NET-CHANGE-IN-ASSETS> (11199249)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (21016177)
<OVERDISTRIB-NII-PRIOR> 1273879
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1232346
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2575543
<AVERAGE-NET-ASSETS> 246470448
<PER-SHARE-NAV-BEGIN> 7.98
<PER-SHARE-NII> .77
<PER-SHARE-GAIN-APPREC> .6138
<PER-SHARE-DIVIDEND> .6613
<PER-SHARE-DISTRIBUTIONS> .1225
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.58
<EXPENSE-RATIO> 1.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
