Lord Abbett Global Fund
Income Series Equity Series
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED JUNE 30, 1999
[GRAPHIC OMITTED]
Two globally diversified portfolios
to help you achieve your goals
[LOGO]
<PAGE>
Report to Shareholders
For the Six Months Ended June 30, 1999
[PHOTO]
Robert S. Dow
Chairman
July 21, 1999
Table of Contents
Global Fund - Income Series
- ----------------------------------------
About the Global Fund 1
--Income Series
Statement of Net Assets 2
Global Fund - Equity Series
- ----------------------------------------
About the Global Fund 4
- Equity Series
Statement of Net Assets 5
Global Fund - Income and Equity Series
- ----------------------------------------
Statements of Operations 7
Statements of Changes in 8
Net Assets
Financial Highlights 9
Notes to Financial Statements 11
Lord Abbett Global Fund - Income Series and Lord Abbett Global Fund - Equity
Series completed the first half of their fiscal years on June 30, 1999. Below is
an overview of the class-specific data pertaining to each Fund as of the close
of the period.
<TABLE>
<CAPTION>
Global Fund - Income Series Global Fund - Equity Series
--------------------------------------------------------------------------
Six Months Ended June 30, 1999 Six Months Ended June 30, 1999
--------------------------------------------------------------------------
Class A Class B Class C Class P** Class A Class B Class C
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value $7.53 $7.53 $7.54 $7.54 $12.03 $11.87 $11.89
Total return* -7.98% -8.30% -8.18% -3.78% -2.12% -2.55% -2.54%
</TABLE>
European economies showed renewed growth in the first half of the year amid
rising global interest rates. However, interest rates in Europe did not rise as
much as those in the U.S., reflecting the fact that European economies have not
grown as aggressively. While European bonds outperformed U.S. bonds for the most
part, the euro (the common European currency) fell to an all-time low during the
period as investors became increasingly concerned about economic conditions, the
Kosovo conflict, and a lack of leadership in the European community. Meanwhile,
Japan's economy showed signs of improvement following a series of economic
initiatives, including tax-cuts and banking reforms.
About the Income Series
Relative to the J.P. Morgan Government Bond Index (1) we remained moderately
over- weighted in European bonds with a continued focus on Greek government
bonds. During the period, Greece received a credit rating upgrade as it
continued to make progress on reducing its fiscal deficit and inflation.
Exposure to the euro, which came under pressure during the period, negatively
affected Fund performance. With 87% of the portfolio invested in AAA securities,
the overall credit of the portfolio remained at the high end of the quality
spectrum. Given the increase in U.S. interest rates, we expect domestic growth
to slow to more moderate and sustainable levels during the second half of 1999.
Should rates continue to rise, we would expect to increase investments in U.S.
bonds, which in our opinion would provide attractive yields relative to many
international bond investments. We expect that European economies will continue
to improve due to the stable interest rate environment, economic reforms, and
stronger growth in the German economy. As such, we anticipate a better climate
for euro-denominated bond investments, and we are working to position the Fund
to benefit should such an improvement occur. Since economic conditions in Japan
are still uncertain, we currently remain on the sidelines with respect to
investing in Japanese bonds.
About the Equity Series
Overall, the portfolio remained overweighted in European companies and
underweighted in investments in Japan and the U.S. This strategy affected
performance somewhat, as the European markets did not perform as strongly as the
U.S. market. Throughout the quarter we continued to add shares of European
companies, particularly industrial ones, because we believe they offer the best
combination of value and growth due to their substantial cost-cutting efforts
and productivity enhancements. We also continued to limit Japanese holdings, due
to our concern that Japanese companies are not showing enough corporate earnings
growth to support long-term economic expansion. We believe that an expected
European economic growth rate of approximately 2% and significant corporate
restructuring programs will create an attractive environment for many European
companies. Therefore, we expect to continue to emphasize our European holdings.
Although Japan has recovered somewhat from its recent financial crisis, its
economy remains lackluster. As such, we will remain cautious when evaluating
opportunities in Japan. Thank you for including Lord Abbett Global Fund in your
investment portfolio. We remain committed to helping you achieve your long-term
financial goals, and look forward to maintaining our relationship with you in
the coming years.
* Total return, which is not annualized, is the percent change in net asset
value, assuming the reinvestment of all distributions.
** The inception date for Global Fund - Income Series Class P Shares was
3/4/99.
(1) The J. P. Morgan Government Bond Index is the most widely used benchmark
for measuring performance and for quantifying risk across international
fixed-income markets. It includes only traded issues available to
international investors. The Index is unmanaged, does not reflect the
deduction of fees or expenses, and is not available for direct investment.
<PAGE>
About Lord Abbett Global Fund - Income Series
Global Diversification
Our research team seeks to identify the best value in relation to risk by
analyzing economic factors and interest-rate trends in the world's major bond
markets. Investing in many bond markets, versus investing only in the U.S., has
the potential to increase returns and reduce risk. The returns below are not the
returns of Global Fund-Income Series.
<TABLE>
<CAPTION>
A Comparison of 10-Year U. S. and Global Government Bonds, After Currency Translations
6 Months
1990 1991 1992 1993 1994 1995 1996 1997 1998 Ended 6/30/99
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U. S. Treasuries (1) 8.65% 15.20% 7.21% 10.63% (3.35%) 18.45% 2.61% 9.62% 12.76% (6.36%)
J. P. Morgan Government Bond Index (2) 11.77% 15.44% 4.55% 12.27% 1.28% 19.31% 4.40% 1.40% 15.31% 7.19%
</TABLE>
Past performance does not indicate future results.
All figures indicate percentage total returns in U. S. dollars; () signify
negative return.
(1) U. S. Treasury bills and government bonds are guaranteed as to the timely
payment of interest, and if held to maturity, provide a guaranteed return
of principal. Source: Bloomberg, LP.
(2) The J. P. Morgan Government Bond Index is the most widely used benchmark
for measuring performance and quantifying risk across international
fixed-income bond markets. It includes only traded issues available to
international investors. Investors cannot invest directly in an unmanaged
index such as The J. P. Morgan Government Bond Index. Source: J. P. Morgan
Securities.
Where in the World Can You Find Higher Yields?
A portfolio that includes high-quality foreign bonds has the opportunity to
search for higher yields around the globe. As shown below, yields on
high-quality bonds vary from country to country. This data does not represent
Global Fund -Income Series performance, nor is there a guarantee that the
portfolio will include holdings from all the countries listed below.
<TABLE>
<CAPTION>
As of 6/30/98 As of 6/30/99 As of 6/30/98 As of 6/30/99
<S> <C> <C> <C> <C> <C>
United States 5.45% 5.78% Italy 5.01% 4.81%
Australia 5.60% 6.29% Japan 1.35% 1.85%
Canada 5.36% 5.47% New Zealand 6.34% 6.63%
Denmark 4.89% 4.94% South Africa 15.15% 15.19%
France 4.78% 4.61% Spain 4.94% 4.76%
Germany 4.71% 4.51% Sweden 4.94% 5.04%
Greece 7.62% 6.13% United Kingdom 5.85% 5.06%
</TABLE>
Past performance does not indicate futureresults.
Semi-annual yields to maturity on 10-year government benchmark bond yields.
Source: Bloomberg, LP (as of June 30, 1999).
Diversification in High-Quality
Global Bonds In seeking its goal of high income with reasonable risk, the Global
Fund - Income Series focuses on quality. Using global diversification, the
Global Fund - Income Series attempts to reduce risk while striving to capture
high interest rates from quality bonds around the world (see the portfolio of
investments in securities on page 2). The geographic data illustrated below does
not include cash and short-term investments.
High-Quality
Portfolio Holdings:
AAA 87.0%
A 10.7%
BBB 2.3%
[GRAPHIC OMITTED]
Canada 3.7%
US 28.0%
Columbia 0.8%
Denmark 1.1%
Netherlands 4.2%
UK 16.9%
France 5.2%
Germany 29.0%
Tunisia 1.0%
Italy 1.3%
Greece 7.3%
Australia 1.0%
New Zealand 1.0%
Data as of 6/30/99. The Global Fund-Income Series' portfolio is actively
managed and its holdings are subject to change.
1
<PAGE>
A Note About Year 2000 Matters
As you may know, there has been extensive media coverage about possible problems
that may arise as a result of uncertainties about the ability of computers to
"understand" dates using the year 2000. Potentially, these problems could
disrupt the services and systems that the Fund relies on in its daily
operations.
As a general matter, we believe the financial industry has taken a leadership
role addressing year 2000 (Y2K) issues and this should help to inspire
confidence among concerned investors. More specifically, Lord Abbett, Lord
Abbett Distributor LLC and the Fund's transfer agent, custodian and other
providers of services critical to the Fund have been actively working on
reviewing and replacing or updating computer systems and computer-to-computer
interfaces, as needed. Each has completed or is in the process of testing new or
revised systems and interfaces and generally expects that their systems, as well
as those of their key external service providers, will be ready to handle Y2K
without significant problems. Furthermore, the Fund has been routinely taking
each company's Y2K preparations into account when considering or reviewing
investments.
In summary, while the Y2K problem is unprecedented and we cannot completely
eliminate the possibility that the Fund could be affected in some way, we are
confident that all parties involved are taking appropriate steps to resolve Y2K
concerns.
Important Information
Prior to July 15, 1996, the Income Series had only one class of shares, which is
now designated as Class A shares. The investment return and principal value of a
Fund investment will fluctuate so that shares, on any given day or when
redeemed, may be worth more or less than their original cost. Foreign investment
risk factors include less regulation and the potential for less liquidity and
more volatility than U.S. markets; currency fluctuation; potentially less
publicly available information about companies, banks and governments than for
U.S. counterparts; lack of uniform accounting standards among countries,
impairing comparisons; potentially higher transaction costs and different
securities settlement and trading practices. Each Series of the Fund issues
additional classes of shares with distinct pricing options. For a full
discussion of the differences in pricing alternatives, please call 800-874-3733
and ask for the Fund's current prospectus. If used as sales material after
9/30/99, this report must be accompanied by Lord Abbett's Performance Quarterly
for the most recently completed calendar quarter.
Statement of Net Assets
INCOME SERIES June 30, 1999
<TABLE>
<CAPTION>
Principal
Amount In
Rating: S& P Local Currency
Investments or Moody's (000) Value
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in Securities 97. 50%
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign 65.47%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Canada 3.62% Government of Canada 5 1/4% due 9/1/2003 AAA $ 3,000 $ 2,039,157
Government of Canada 9% due 6/1/2025 AAA 1,800 1,776,547
Total 3,815,704
- -----------------------------------------------------------------------------------------------------------------------=============
Chile .91% Codelco Inc. 7 3/8% due 5/1/2009 ** A 1,000 952,500
- -----------------------------------------------------------------------------------------------------------------------=============
Columbia .78% Republic of Colombia 9 3/4% due 4/23/2009 BBB 1,000 825,600
- -----------------------------------------------------------------------------------------------------------------------=============
Denmark 1. 04% Kingdom of Denmark 8% due 11/15/2001 AAA 7,170 1,093,091
- -----------------------------------------------------------------------------------------------------------------------=============
Germany 26.85% Bundesobligation 5% due 8/20/2001 AAA 3,375 3,614,178
Deutschland Republic 6% due 1/5/2006 AAA 4,850 5,508,019
Deutschland Republic 6 1/4% due 1/4/2024 AAA 3,700 4,277,399
Deutschland Republic 7 3/8% due 1/3/2005 AAA 4,661 5,588,443
Hypothekenbk in Essen 4% due 1/19/2009 AAA 3,000 2,921,014
Treuhandanstalt 7 1/2% due 9/9/2004 AAA 5,317 6,370,921
Total 28,279,974
- -----------------------------------------------------------------------------------------------------------------------=============
Greece 8.02% Hellenic Republic 6 1/2% due 1/11/2014 * A 2,050,000 6,630,131
Hellenic Republic 8.60% due 3/26/2008 A 493,000 1,812,169
Total 8,442,300
- -----------------------------------------------------------------------------------------------------------------------=============
</TABLE>
2
<PAGE>
Statement of Net Assets
INCOME SERIES June 30, 1999
<TABLE>
<CAPTION>
Principal
Amount In
Rating: S& P Local Currency
Investments or Moody's (000) Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Israel 1. 50% Israel Electric Corp. Ltd. 7 3 /4% due 3/1/2009 ++ A $ 1,600 $ 1,576,000
- -----------------------------------------------------------------------------------------------------------------===============
Italy 1. 22% Republic of Italy 5% due 2/15/2003 AAA 1,200 1,286,215
- -----------------------------------------------------------------------------------------------------------------===============
Netherlands 5.86% Bk Nederlandse Gemeenten 6 1/2% due 11/4/2008 AAA 3,200 1,892,378
Government of Netherlands 9 1/4% due 11/30/2000 AAA 1,653 1,851,411
Netherlands Government 5 1/4% due 7/15/2008 AAA 2,250 2,432,368
Total 6,176,157
- -----------------------------------------------------------------------------------------------------------------===============
New Zealand .58% Government of New Zealand 8% due 11/15/2006 AAA 1,050 607,988
- -----------------------------------------------------------------------------------------------------------------===============
Sweden 2.06% Swedish Government 10 1/4% due 5/5/2003 AAA 15,300 2,171,275
- -----------------------------------------------------------------------------------------------------------------===============
Tunisia .91% Banque Centrale De Tunisie 7 1/2% due 9/19/2007 BBB 1,000 962,500
- -----------------------------------------------------------------------------------------------------------------===============
United Kingdom 12.12% Glaxo Wellcome plc 8 3/4% due 12/1/2005 AA 800 1,426,214
United Kingdom Treasury 7% due 6/7/2002 AAA 2,000 3,287,718
United Kingdom Treasury 10% due 9/8/2003 AAA 4,390 8,053,162
Total 12,767,094
- -----------------------------------------------------------------------------------------------------------------===============
Total Investments in Foreign Securities
(Cost $75,913,761) 68,956,398
================================================================================================================================
United States 32.03%
FHLMC 5 3 /4% due 3/15/2009 AAA 2,000 1,900,000
FNMA 6 7 /8% due 6/7/2002 AAA 3,050 4,922,349
FGLMC 7% due 7/14/2029* AAA 16,000 15,920,000
Household Finance Corp. 5 1/8% due 6/24/2009 AAA 3,000 3,040,034
U. S. Treasury Notes 6 1/8% due 11/15/2027 + AAA 8,000 7,946,248
Total Investments in United States Securities
(Cost $34,377, 059) 33,728,631
-------------------------------------------------------------------------------===============
Total Investments in Securities (Cost $110,290,820) 102,685,029
================================================================================================================================
Other Assets, Less Liabilities 2.5%
================================================================================================================================
Short-term Investments American General Finance Corp. 5.7% due 7/1/1999 4,740 4,740,000
FHLB Discount Note 4.47% due 7/1/1999 6,820 6,820,000
Prudential Funding Corp. 5 5 /8% due 7/1/1999 4,740 4,740,000
Total Short-term Investments (Cost $16,300,000) 16,300,000
-------------------------------------------------------------------------------===============
Other (See Note 5) 15,032,171
-------------------------------------------------------------------------------===============
Cash 38,914
- -----------------------------------------------------------------------------------------------------------------===============
Receivable for: Securities sold 25,406,505
Interest 2,424,240
Capital stock sold 126,885
Total Other Assets 59,328,715
- -----------------------------------------------------------------------------------------------------------------===============
Payable for: Securities purchased 40,663,423
Collateral on securities loaned 15,032,171
Dividends 405,712
Capital stock reacquired 257,655
Unrealized depreciation on forward currency contracts 61,459
Other 278,935
Total Liabilities 56,699,355
- -----------------------------------------------------------------------------------------------------------------===============
Total Other Assets, Less Liabilities 2,629,360
================================================================================================================================
Net Assets 100.00% $105,314,389
- -----------------------------------------------------------------------------------------------------------------===============
Class A Shares- Net asset value ($ 100,054,435 ~ 13,285,531 shares outstanding) $7.53
Maximum offering price (net asset value plus sales charge of 4.75% of the offering price) $7.91
Class B Shares- Net asset value ($ 1,754,875 ~ 232,975 shares outstanding) $7.53
Class C Shares- Net asset value ($ 3,346,071 ~ 444,021 shares outstanding) $7.54
Class P Shares- Net asset value ($ 159,008 ~ 21,079 shares outstanding) $7.54
*To be announced. + Securities (or a portion of securities) on loan. See Note 5. ++ Restricted security under Rule 144A.
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
About Lord Abbett Global Fund- Equity Series
Why Invest Internationally?
International investors have a larger choice of exceptional companies to choose
from than investors who concentrate solely on U.S.-based companies.
Percent of the World's Market Capitalizations
[GRAPHIC OMITTED]
52% Based in the U.S.
48% Based outside the U.S.
Source: Morgan Stanley Capital International World Index. Data as of 6/30/99,
based on market capitalization.
Managed to Participate in Global Growth
Portfolio diversification positions the Global Fund -Equity Series to
participate in global opportunities. Ten countries were represented in the
Global Fund - Equity Series at period end (see the portfolio of investments in
securities on page 5). The geographic data illustrated below does not include
cash and short-term investments.
[GRAPHIC OMITTED]
Canada 3.2%
US 35.7%
Sweden 3.0%
Switzerland 4.3%
Netherlands 6.3%
UK 9.6%
France 10.2%
Germany 9.3%
Japan 11.9%
Australia 1.7%
Data as of 6/30/99. The Global Fund - Equity Series portfolio is actively
managed and its holdings are subject to change.
4
<PAGE>
Statement of Net Assets
EQUITY SERIES June 30, 1999
<TABLE>
<CAPTION>
Investments Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments in Securities 95.27%
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign 59.55%
- ------------------------------------------------------------------------------------------------------------------------------------
Australia 1. 69% *Novogen Limited- Biotechnology company specializing in plant
sterol-based OTC and eventually ethical pharmaceutical products 600,000 $ 1,186,277
- -----------------------------------------------------------------------------------------------------------------------=============
Canada 3.19% *Ballard Power Systems Inc.- Designs, manufactures and develops
methanol-or hydrogen-based fuel cells that are the only
true zero emission power source for vehicles 70,000 2,239,580
- -----------------------------------------------------------------------------------------------------------------------=============
France 10.17% Alcatel- Develops, produces and distributes telecommunications
equipment, cables, software and offers turnkey
telecommunication solutions 15,000 2,118,139
AX-UAP- One of Europe's largest financial organizations 12,000 1,468,576
Suez Lyonnaise des Eaux- Water and business services group 10,000 1,809,340
Thomson-CSF- A major leader in aerospace systems and industrial
electronic products 50,000 1,743,132
Total 7,139,187
- -----------------------------------------------------------------------------------------------------------------------=============
Germany 9.25% Daimler-Chrysler Ag- World's 3rd largest manufacturer of cars and trucks 17,000 1,477,266
Siemens Ag- Manufactures a wide range of industrial and consumer
electrical products 18,000 1,392,851
SAP Ag- World's fourth-largest software firm dominating the
global market for relational database management software tools 5,000 1,696,580
Volkswagen Ag- European auto manufacturer 30,000 1,927,274
Total 6,493,971
- -----------------------------------------------------------------------------------------------------------------------=============
Japan 11. 92% Bridgestone Corp.- Owns Firestone, making it one of the world's
top 3 tire manufacturers 22,000 664,354
Canon Inc.- Manufacturer of business machines, cameras and optical products 16,000 459,405
Citizen Watch Co.- One of the world's leading manufacturers of
watches and machine tools 29,000 251,237
East Japan Railway Co.- Japan's largest railway company 40 214,521
Fuji Photo Film Co.- Major manufacturer of photosensitive
materials and digital imaging equipment 12,000 453,464
Honda Motor Co. Ltd.- Major automotive group, world's largest
manufacturer of motorcycles 10,000 423,266
Ito-Yokado Co. Ltd.- Diversified retailing operations 6,000 400,989
Matsushita Electric Industrial Co. Ltd.- One of world's largest
manufacturer of electric and electronic products 23,000 445,956
Nichiei Co. Ltd.- Provides commercial/industrial loans to small/medium firms 3,900 341,088
Nippon Telephone & Telegraph Corp.- Holding company of Japan's largest
telecommunications group 65 756,186
Sankyo Co. Ltd.- Major pharmaceutical company in Japan 10,000 251,649
Secom Co. Ltd.- Leading security service provider in Japan 6,000 623,760
Shiseido Co. Ltd.- Japan's leading cosmetic manufacturer 25,000 374,174
Sony Corp.- Leading consumer electronics and entertainment company 4,000 430,692
Sumitomo Electric Industries- Manufacturer of electric wire and
cables, optic fibers and communication related machinery and equipment 41,000 465,477
Taisho Pharmaceuticals Co. Ltd.- Largest OTC drug manufacturer in Japan 13,000 429,042
Takefuji Corp.- Largest Japanese consumer finance firm 3,500 361,261
Terumo Corp.- Japan's largest maker of disposable medical supplies 13,000 289,067
Tokyo Electric Power- Japan's largest electric power supplier 15,000 316,212
Toyota Motor Corp.- One of the world's biggest automakers 13,000 410,807
Total 8,362,607
- -----------------------------------------------------------------------------------------------------------------------=============
Netherlands 6.33% Ahold (koninklijke) NV- Dominant Dutch food retail chain among the top 10 of
U. S. supermarket organizations 34,305 1,185,317
ING Groep NV- Banking and insurance company 30,503 1,656,656
VNU NV- Diversified media company 40,000 1,603,475
Total 4,445,448
- -----------------------------------------------------------------------------------------------------------------------=============
Sweden 3.02% Ericsson (L. M.) Series B- Leading supplier of telecommunications systems 66,000 2,122,699
- -----------------------------------------------------------------------------------------------------------------------=============
Switzerland 4.34% UBS Ag- Major global commercial and investment bank 4,440 1,330,251
Zurich Allied Ag- Major European property & casualty insurer 3,000 1,712,404
Total 3,042,655
- -----------------------------------------------------------------------------------------------------------------------=============
United Kingdom General Electric Company plc- Electronics group 245,000 2,481,407
9.64%
</TABLE>
5
<PAGE>
Statement of Net Assets
EQUITY SERIES June 30, 1999
<TABLE>
<CAPTION>
Shares or
Investments Principal Amount Value
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Jarvis plc- Specialist engineering and service company
focused on the installation of railway related track and signals 250,000 $ 1,177,284
NXT plc- Specializes in the development and licensing of
flat panel speaker technology 420,000 3,104,244
Total 6,762,935
---------------------------------------------------------------------------------------------=============
Total Investments in Foreign Securities (Cost $39,965,517) 41,795,359
==================================================================================================================================
United States 35.72%
==================================================================================================================================
Allstate Corp.- Second largest provider of personal lines of
insurance in the U. S. 30,000 1,076,250
American General Corp.- A leading provider of financial services,
including life/health insurance, annuities, consumer credit and
mortgage financing 27,100 2,042,662
American Home Products Corp.- Producer of drugs, food housewares
medicine and medical products 31,600 1,817,000
Cardinal Health Inc.- Provides complementary products and services to healthcare
and packaged providers and manufacturers 25,000 1,603,125
Ford Motor Co.- World's second largest producer of cars and trucks 31,600 1,783,425
Heinz (H. J.) Co.- Domestic packaged foods producer 30,000 1,503,750
Intel Corp.- Leading producer of semi-conductor processing circuits 36,100 2,147,950
Lilly, Eli & Co.- A global, research-based pharmaceutical corp. 20,000 1,432,500
*Net. B@ nk, Inc.- Provider of banking services over the internet 35,000 1,330,000
Omnicare Inc.- Provides professional pharmacy, related consulting, and data
management services 60,000 757,500
Rite Aid Corp.- Operates retail drugstores 75,000 1,846,875
Sonoco Products Co.- A leading U. S. producer of specialty paper and plastic
packaging components 50,000 1,496,875
State Street Corp.- Commercial and investment bank 27,100 2,313,663
SBC Communications Inc.- Regional telephone company 40,700 2,360,600
Time Warner Inc.- A major entertainment and communications firm 14,500 1,065,750
Warner-Lambert Co.- Drug and consumer products manufacturer 7,000 485,625
Total Investments in United States Securities (Cost $23,283,345) 25,063,550
---------------------------------------------------------------------------------------------=============
Total Investments in Securities (Cost $63,248,862) 66,858,909
==================================================================================================================================
Other Assets, Less Liabilities 4.73%
==================================================================================================================================
Short-Term Investments American General Finance Corp. 5.7% due 7/1/1999 $ 160,000 160,000
Prudential Funding Corp. 5 5 /8% due 7/1/1999 3,040,000 3,040,000
Total Short-Term Investments (Cost $3,200,000) 3,200,000
---------------------------------------------------------------------------------------------=============
Cash 115,864
- ---------------------------------------------------------------------------------------------------------------------=============
Receivable for: Securities sold 4,284,535
Dividends and interest 139,154
Capital stock sold 93,554
Total Other Assets 7,833,107
- ---------------------------------------------------------------------------------------------------------------------=============
Payable for: Securities purchased 4,334,231
Capital stock reacquired 56,790
Other 120,155
Total Liabilities 4,511,176
---------------------------------------------------------------------------------------------=============
Total Other Assets, Less Liabilities 3,321,931
====================================================================================================================================
Net Assets 100.00% $70,180,840
====================================================================================================================================
Class A Shares- Net asset value ($ 65,292,246 ~ 5,426,302 shares outstanding) $12.03
Maximum offering price (net asset value plus sales charge of 5.75% of the offering price) $12.76
Class B Shares- Net asset value ($ 2,958,649 ~ 249,204 shares outstanding) $11.87
Class C Shares- Net asset value ($ 1,929,945 ~ 162,258 shares outstanding) $11.89
</TABLE>
* Non-income producing security.
The descriptions of the companies shown in
the portfolio, which were obtained from
published reports and other sources believed
to be reliable, are supplemental and
unaudited.
See Notes to Financial Statements.
6
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
Six Months Ended June 30, 1999
-----------------------------------
Investment Income Equity Series Income Series
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Income Dividends $ 489,825 $ -
Interest 31,860 4,193,878
Foreign taxes withheld (861) -
Securities lending - 15,346
Total income 520,824 4,209,224
----------------------------------------------------------------------------------------------------------
Expenses Management fee 277,072 298,963
12b-1 distribution plan- Class A 105,879 169,015
12b-1 distribution plan- Class B 14,092 8,439
12b-1 distribution plan- Class C 8,749 17,618
12b-1 distribution plan- Class P - 138
Shareholder servicing 198,241 118,322
Reports to shareholders 22,596 33,585
Professional 19,029 29,454
Registration 17,805 23,596
Directors' fees 1,232 2,182
Other 24,775 8,571
Total expenses before reductions 689,470 709,883
Expense reductions (9,053) (9,386)
Net expenses 680,417 700,497
----------------------------------------------------------------------------------------------------------
Net investment income (loss) (159,593) 3,508,727
----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency transactions
=========================================================================================================================
Net realized gain (loss) from investment and foreign currency transactions 2,331,127 (3,592,547)
=========================================================================================================================
Net change in unrealized appreciation of investments and foreign currency holdings (3,893,071) (9,495,803)
=========================================================================================================================
Net realized and unrealized loss on investment and foreign currency transactions (1,561,944) (13,088,350)
=========================================================================================================================
Net Decrease in Net Assets Resulting From Operations $ (1,721,537) $ (9,579,623)
=========================================================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended June 30, 1999 Year Ended December 31, 1998
-------------------------------- --------------------------------
Increase (Decrease) in Net Assets Equity Series Income Series Equity Series Income Series
================================================================================================== ================================
<S> <C> <C> <C> <C>
Operations Net investment income (loss) $ (159,593) $ 3,508,727 $ 19,866 $ 8,862,091
Net realized gain (loss) from
investment and foreign currency transactions 2,331,127 (3,592,547) 5,196,409 2,030,984
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency holdings (3,893,071) (9,495,803) 1,745,245 2,496,490
Net increase (decrease) in net assets
resulting from operations (1,721,537) (9,579,623) 6,961,520 13,389,565
----------------------------------------------------------------------------------- --------------------------------
Dividends and distributions to shareholders from:
Net investment income- Class A - (3,325,232) (180,595) (7,633,729)
Net investment income- Class B - (45,153) - (73,682)
Net investment income- Class C - (98,844) - (228,255)
Net investment income- Class P - (1,955) - -
Net realized gain from investment and
foreign currency transactions- Class A - - (4,907,820) -
Net realized gain from investment and
foreign currency transactions- Class B - - (180,889) -
Net realized gain from investment and
foreign currency transactions- Class C - - (115,737) -
Net realized gain from investment and
foreign currency transactions- Class P - - - -
Total - (3,471,184) (5,385,041) (7,935,666)
----------------------------------------------------------------------------------- --------------------------------
Capital share transactions:
Net proceeds from sales of shares 18,587,681 5,277,063 10,776,471 6,251,481
Net asset value of shares issued in
reinvestment of dividends and distributions - 2,191,797 5,194,218 5,089,826
Total 18,587,681 7,468,860 15,970,689 11,341,307
----------------------------------------------------------------------------------- --------------------------------
Cost of shares reacquired (26,778,018) (14,265,974) (18,274,782) (40,417,825)
----------------------------------------------------------------------------------- --------------------------------
Increase (decrease) in net assets
derived from capital share transactions (8,190,337) (6,797,114) (2,304,093) (29,076,518)
----------------------------------------------------------------------------------- --------------------------------
Decrease in net assets (9,911,874) (19,847,921) (727,614) (23,622,619)
- -------------------------------------------------------------------------------------------------- --------------------------------
Net Assets Beginning of period 80,092,714 125,162,310 80,820,328 148,784,929
----------------------------------------------------------------------------------- --------------------------------
End of period + $70,180,840 $105,314,389) $ 80,092,714 $125,162,310
----------------------------------------------------------------------------------- --------------------------------
</TABLE>
+ Including undistributed (distributions in excess of) net investment income
of $(280,698) and $1,149,994, respectively, as of June 30,1999 and
$(121,105) and $1, 112,451, respectively, as of December 31, 1998.
See Notes to Financial Statements.
8
<PAGE>
Financial Highlights
INCOME SERIES
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------------------
Six Months Ended
June 30, Year Ended December 31,
Per Share Operating Performance: 1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.44 $8.09 $8.34 $8.58 $7.98 $9.02
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .25(b) .55(b) .51(b) .53 .77 .65
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (.91) .30 (.18) (.04) .6138 (.9603)
Total from investment operations (.66) .85 .33 .49 1.3838 (.3103)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (.25) (.50) (.51) (.61) (.6613) (.6035)
Distributions to shareholders from paid-in-capital -- -- (.07) -- -- (.1262)
Distributions from foreign currency transactions -- -- -- (.12) (.1225) --
Total distributions (.25) (.50) (.58) (.73) (.7838) (.7297)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.53 $8.44 $8.09 $8.34 $8.58 $7.98
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (a) (7.98)%(d) 10.79% 4.23%(c) 6.12% 17.86% (3.40)%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses (e) .59% (d) 1.18% 1.10% 1.04% 1.04% 1.02%
Net investment income 3.06% (d) 6.75% 6.29% 6.52% 7.60% 7.72%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares Class C Shares Class P Shares
------------------------------------------ ----------------------------------- -------------
Six Months Year Ended Six Months Year Ended
Per Share Operating Ended December 31, 8/1/96 (c) Ended December 31, 7/15/96(c) 3/4/99 (c)
Performance: 6/30/99 1998 1997 to 12/31/96 6/30/99 1998 1997 to 12/31/96 to 6/30/99
- ------------------------------------------------------------------------------- --------------------------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $8.44 $8.09 $8.34 $8.24 $8.44 $8.09 $8.34 $8.14 $7.91
- ------------------------------------------------------------------------------- --------------------------------------- ----------
Income from investment
operations
Net investment income .23 (b) .49(b) .45(b) .23 .22 (b) .50(b) .45(b) .21 .24(b)
Net realized and unrealized
gain (loss) on investments
and foreign currency transactions (.92) .30 (.18) .22 (.90) .29 (.18) .37 (.53)
Total from investment
operations (.69) .79 .27 .45 (.68) .79 .27 .58 (.29)
- ------------------------------------------------------------------------------- --------------------------------------- ----------
Distributions
Dividends from net
investment income (.22) (.44) (.46) (.23) (.22) (.44) (.46) (.26) (.08)
Distributions to shareholders
from paid-in-capital - - (.06) - - - (.06) - -
Distributions from foreign
currency transactions - - - (.12) - - - (.12) -
Total distributions (.22) (.44) (.52) ( 35) (.22) (.44) (.52) (.38) (.08)
- ------------------------------------------------------------------------------- --------------------------------------- ----------
Net asset value, end of period $7.53 $8.44 $8.09 $8.34 $7.54 $8.44 $8.09 $8.34 $7.54
- ------------------------------------------------------------------------------- --------------------------------------- ----------
Total Return (a) (8.30)%(d)10.03% 3.49% 5.58%(d) (8.18)%(d) 10.03% 3.48% 7.43%(d)(3.78)%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses (e) .95% (d) 1.87% 1.78% .73% (d) .93% (d) 1.85% 1.77% .87%(d) .64%(d)
Net investment income 2.84%(d) 6.01% 5.57% 2.11%(d) 2.69%(d) 6.08% 5.62% 2.69%(d) 3.05%(d)
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
Supplemental Data For All Classes: 6/30/99 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $105,314 $125,162 $148,785 $202,494 $238,291 $249,490
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 190.72% 359.13% 616.63% 621.79% 1,073.69% 1,230.20%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Total return does not consider the effects of sales loads and assumes
the reinvestment of all distributions. (b) Calculated using average shares
outstanding during the period.
(c) Commencement of offering respective Class shares.
(d) Not annualized.
(e) The ratios for 1997, 1998 and 1999 include expenses paid through an
expense offset arrangement. See Notes to Financial Statements.
9
<PAGE>
Financial Highlights
EQUITY SERIES
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------------------------------------------
Six Months Ended June 30, Year Ended December 31,
Per Share Operating Performance: 1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.29 $12.08 $12.55 $11.96 $11.55 $12.44
Income from investment operations
Net investment income (loss) (.02)(b) .01(b) .07(b) .07 .16 .10
Net realized and unrealized gain (loss) on investments (.24) 1.08 .90 .93 .90 (.1125)
Total from investment operations (.26) 1.09 .97 1.00 1.06 (.0125)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income - (.03) (.06) (.07) (.17) (.10)
Distributions to shareholders from net realized gains - (.85) (1.11) (.21) (.48) (.7775)
Distributions from foreign currency transactions - - (.27) (.13) - -
Total distributions - (.88) (1.44) (.41) (.65) (.8775)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.03 $12.29 $12.08 $12.55 $11.96 $11.55
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (a) (2.12)% (d) 9.07% 7.99% (c) 8.37% 9.19% (.09)%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses (e) .89% (d) 1.66% 1.51% 1.52% 1.63% 1.56%
Net investment income (loss) (.19)% (d) .06% .57% .54% 1.31% .79%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares Class C Shares
------------------------------------------------------------------------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, 8/1/96 (c) Ended December 31, 7/15/96 (c)
Per Share Operating Performance: 6/30/99 1998 1997 to 12/31/96 6/30/99 1998 1997 to 12/31/96
- ---------------------------------------------------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.18 $12.03 $12.53 $12.30 $12.20 $12.05 $12.54 $12.31
- ---------------------------------------------------------------------------------------- -----------------------------------------
Income from investment operations
Net investment income (loss) (.06)(b) (.09)(b) (.02)(b) (.01) (.06)(b) (.09)(b) (.01)(b) -
Net realized and unrealized gain
on investments (.25) 1.09 .89 .58 (.25) 1.09 .90 .57
Total from investment operations (.31) 1.00 .87 .57 (.31) 1.00 .89 .57
- ---------------------------------------------------------------------------------------- -----------------------------------------
Distributions
Dividends from net investment income - - - - - - (.01) -
Distributions to shareholders from
net realized gains - (. 85) (1.11) (.21) - (.85) (1.11) (.21)
Distributions from foreign currency
transactions - - (.26) (.13) - - (.26) (.13)
Total distributions - (.85) (1.37) (.34) - (.85) (1.38) (.34)
- ---------------------------------------------------------------------------------------- -----------------------------------------
Net asset value, end of period $11.87 $12.18 $12.03 $12.53 $11.89 $12.20 $12.05 $12.54
- ---------------------------------------------------------------------------------------- -----------------------------------------
Total Return (a) (2.55)% (d) 8.37% 7.19% 4.56%(d) (2.54)% (d) 8.35% 7.34% 4.64%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses (e) 1.24%(d) 2.37% 2.23% .83%(d) 1.24% (d) 2.37% 2.14% .83% (d)
Net investment income (loss) (.53)%(d) (.70)% (. 16)% (.16)%(d) (.54)% (d) (. 69)% (.06)% (.11)%(d)
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
Supplemental Data For All Classes: 6/30/99 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $70,181 $80,093 $80,820 $92,164 $84,731 $83,739
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 44.33% 89.48% 99.05% 81.97% 83.32% 75.39%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Total return does not consider the effects of sales loads and assumes
the reinvestment of all distributions.
(b) Calculated using average shares outstanding during the period.
(c) Commencement of offering respective Class shares.
(d) Not annualized.
(e) The ratios for 1997, 1998 and 1999 include expenses paid through an
expense offset arrangement. See Notes to Financial Statements.
10
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies Lord Abbett Global Fund, Inc. (the "Company")
is an open-end management investment company. The Company consists of two
portfolios ("Series") - Lord Abbett Global Fund - Equity Series ("Equity
Series") and Lord Abbett Global Fund - Income Series ("Income Series"). Equity
Series is diversified as defined under the Investment Company Act of 1940.
Income Series is non-diversified. The financial statements have been prepared in
conformity with generally accepted accounting principles which require
management to make certain estimates and assumptions at the date of the
financial statements. The following summarizes the significant accounting
policies of the Company: (a) Securities are valued as follows: Portfolio
securities listed or admitted to trading privileges on any securities exchange
are valued at the last sales price on the exchange on which such securities are
traded, or, lacking any sales, at the latest price on the basis of current
quotations from dealers, or from valuations furnished by an independent pricing
service. Short-term securities are valued at amortized cost which approximates
market value. Securities for which market quotations are not available are
valued at fair value as determined under procedures approved by the Board of
Directors. (b) It is the policy of the Company to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income. Therefore, no federal income tax provision
is required. (c) Security transactions are accounted for on the date that the
securities are purchased or sold (trade date). Realized gains and losses from
security transactions are calculated on the identified cost basis. Dividend
income and distributions to shareholders are recorded on the ex-dividend date
and interest income is recorded on the accrual basis. Discounts on strips are
accrued to maturity using the constant yield method. Net investment income
(other than distribution and service fees) and realized and unrealized gains or
losses are allocated to each class of shares based upon the relative proportion
of net assets at the beginning of the day. (d) The Company enters into forward
currency contracts and currency option contracts in order to hedge its exposure
to changes in foreign currency exchange rates on its foreign portfolio holdings.
A forward contract is a commitment to purchase or sell a foreign currency at a
future date (usually the security transaction settlement date) at a negotiated
forward rate. A currency option contract gives you the right, but not the
obligation, to purchase or sell a foreign currency at a fixed price during a
specified period. The contracts are valued daily at current exchange rates or
market values (currency option) and any unrealized gain or loss is included in
net unrealized appreciation or depreciation of investment and foreign currency
holdings. The gain or loss, if any, arising from the difference between the
settlement value of the forward contract (or the cost of the option) and the
closing of such contracts, is included as net realized gain or loss from
investment and foreign currency transactions. Risk may arise due to a change in
the value of the foreign currency and as a result of the potential inability of
the counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the Fund's portfolio of
investments and the U. S. dollar. (e) Net realized gains and losses from foreign
currency transactions represent net gains and losses from sales and maturities
of forward currency contracts, disposition of foreign currencies, currency gains
and losses realized between the trade and settlement dates on securities
transactions, and the differences between the amount of net investment income
accrued and the U. S. dollar amount actually received. The effect of changes in
foreign currency exchange rates on investments in securities is not segregated
in the Statements of Operations from the effect of changes in market prices of
those securities.
2. Management Fee and Other Transactions With Affiliates The Company has a
management agreement with Lord, Abbett & Co. (" Lord Abbett") pursuant to which
Lord Abbett supplies the Company with investment management services and
executive and other personnel, pays the remuneration of officers, provides
office space and pays for ordinary and necessary office and clerical expenses
relating to research, statistical work and the supervision of the Company's
investment portfolios. The management fee is based on average daily net assets
for each month at the annual rate of .75% for the Equity Series and .50% for the
Income Series. Lord Abbett has entered into a sub-investment management
agreement with Fuji-Lord Abbett International, Ltd. (" Sub-Adviser"). Lord
Abbett is a minority owner of the SubAdviser. The Sub-Adviser furnishes
investment advisory services in connection with the management of the Equity
Series' portfolio. Lord Abbett pays for the cost of the Sub-Adviser's services.
Prior to June 15, 1998, the Sub-Adviser was Edinburgh Fund Managers PLC.
The Company has Rule 12b-1 plans and agreements (the "Class A, Class B, Class C
and Class P Plans") with Lord Abbett Distributor LLC (" Distributor"), an
affiliate of Lord Abbett. The Company makes payments to Distributor which uses
or passes on such payments to authorized institutions. Pursuant to the Class A
Plan, the Company pays Distributor (1) an annual service fee of 0.25% of the
average daily net asset value of Class A shares, (2) a one-time distribution fee
of up to 1% on certain qualifying purchases and (3) an annual distribution fee
of 0.10% of the average daily net asset value of Class A shares. Pursuant to the
Class B Plan, the Company pays Distributor an annual service and distribution
fee of 0.25% and 0.75%, respectively, of the average daily net asset value of
the Class B shares. Pursuant to the Class C Plan, the Company pays Distributor
(1) a service fee and a distribution fee, at the time such shares are sold, not
to exceed 0.25% and 0.75%, respectively, of the net asset value of such shares
sold and (2) at each quarter-end after the first anniversary of the sale of such
shares, a service fee and a distribution fee at an annual rate not to exceed
0.25% and 0.75%, respectively, of the average annual net asset value of such
shares outstanding. Pursuant to the Class P Plan, the Company pays Distributor
an annual service and distribution fee of 0.20% and 0.25%, respectively, of the
average daily net asset value of the Class P shares.
Distributor received the following commissions on sales of Class A shares of the
Company after concessions were paid to authorized dealers:
Lord Abbett Dealers'
Series Commissions Concessions
- --------------------------------------------------------------------------------
Equity $8,787 $52,957
- --------------------------------------------------------------------------------
Income $4,404 $29,487
- --------------------------------------------------------------------------------
Certain of the Company's officers and directors have an interest in Lord Abbett.
3. Distributions Dividends from net investment income are declared semiannually
for Equity Series and daily for Income Series. Distributions from net realized
gain from investment and foreign currency transactions are declared annually. At
June 30, 1999, accumulated net realized capital gain (loss) for financial
reporting purposes aggregated $2,331,127 and $(27, 491,633), respectively for
Equity Series and Income Series. The Income Series had a capital loss
carryforward as of December 31, 1998 of approximately $23,900,000, of which
$18,770,000 expires in 2002, $4,450,000 expires in 2004 and $680,000 expires in
2005. Accordingly, no capital gain distribution is expected to be paid to
shareholders until net gains have been realized in excess of such amount.
Income and capital gains distributions are determined in accordance with income
tax regulations which may differ from methods used to determine the
corresponding income and capital gains amounts in accordance with generally
accepted accounting principles.
4. Capital The Equity Series has authorized 500 million shares of $. 001 par
value capital stock designated as follows: Class A- 445 million shares, Class B-
15 million shares, Class C- 20 million shares and Class P- 20 million shares.
The Income Series has authorized 500 million shares of $. 001 par value capital
stock designated as follows: Class A- 430 million shares, Class B- 30 million
shares, Class C- 20 million shares and Class P- 20 million shares. At June 30,
1999, paid-in-capital amounted to $64,520,364 for Equity Series and $139,323,278
for Income Series. Transactions in shares of capital stock were as follows:
11
<PAGE>
Notes to Financial Statements
Six Months Ended June 30, 1999
-------------------------------------------------------
Equity Series Income Series
Class A Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 1,434,662 $ 17,425,352 526,079 $ 4,199,551
Shares issued to share-
holders in reinvestment
of dividends - - 262,490 2,091,525
Total 1,434,662 17,425,352 788,569 6,291,076
- --------------------------------------------------------------------------------
Shares reacquired (2,152,156) (26,047,828) (1,653,005) (13,256,283)
Decrease (717,494) $ (8,622,476) (864,436) $ (6,965,207)
- --------------------------------------------------------------------------------
Year Ended December 31, 1998
-------------------------------------------------------
Equity Series Income Series
Class A Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 592,845 $ 7,590,246 602,202 $ 4,926,227
Shares issued to share-
holders in reinvestment of
dividends and distributions 400,239 4,901,021 591,975 4,867,562
Total 993,084 12,491,267 1,194,177 9,793,789
- --------------------------------------------------------------------------------
Shares reacquired (1,361,881) (17,229,837) (4,630,821) (37,899,665)
Decrease (368,797) $(4,738,570) (3,436,644) $(28,105,876)
Six Months Ended June 30, 1999
-------------------------------------------------------
Equity Series Income Series
Class B Shares Amount Shares Amount
Sales of shares 59,107 $693,768 76,137 $610,681
Shares issued to share-
holders in reinvestment
of dividends - - 4,120 32,737
Total 59,107 $693,768 80,257 643,418
- --------------------------------------------------------------------------------
Shares reacquired (38,292) (450,923) (27,711) (220,242)
Increase 20,815 242,845) 52,546 $423,176
- --------------------------------------------------------------------------------
Year Ended December 31, 1998
-------------------------------------------------------
Equity Series Income Series
Class B Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 132,702 $1,674,377 88,582 $ 729,022
Shares issued to share-
holders in reinvestment of
dividends and distributions 14,692 177,473 6,465 53,163
Total 147,394 1,851,850 95,047 782,185
- --------------------------------------------------------------------------------
Shares reacquired (30,356) (381,107) (80,786) (662,699)
Increase 117,038 $1,470,743) 14,261 $ 119,486
- --------------------------------------------------------------------------------
Six Months Ended June 30, 1999
-------------------------------------------------------
Equity Series Income Series
Class C Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 39,274 $468,561 35,549 $277,297
Shares issued to share-
holders in reinvestment
of dividends - - 8,287 66,059
Total 39,274 $468,561 43,836 343,356
- --------------------------------------------------------------------------------
Shares reacquired (23,601) (279,267) (96,352) (766,605)
Increase (decrease) 15,673 $189,294) (52,516) $(423,249)
- --------------------------------------------------------------------------------
Year Ended December 31, 1998
-------------------------------------------------------
Equity Series Income Series
Class C Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 120,481 $1,511,848 71,857 $ 596,232
Shares issued to share-
holders in reinvestment of
dividends and distributions 9,564 115,724 20,597 169,101
- --------------------------------------------------------------------------------
Total 130,045 1,627,572 92,454 765,333
Shares reacquired (51,938) (663,838) (227,122) (1,855,461)
Increase (decrease) 78,107 $ 963,734) (134,668) $(1,090,128)
- --------------------------------------------------------------------------------
3/4/99
(Commencement
of Offering
Class P Shares)
to 6/30/99
----------------------------
Income Series
Class P Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 23,810 $189,534
Shares issued to share-
holders in reinvestment
of dividends 191 1,476
Total 24,001 191,010
- --------------------------------------------------------------------------------
Shares reacquired (2,922) (22,844)
Increase 21,079 $168,166
- --------------------------------------------------------------------------------
5. Purchases and Sales of Investments The Company may lend its securities to
member banks of the Federal Reserve System and to registered broker-dealers
approved by the Company. The loans are collateralized at all times by cash
and/or U. S. Treasury securities in an amount at least equal to the market value
of the securities loaned. As of June 30, 1999, the value of securities loaned
for Income Series was $14,451,600. These loans were collateralized by cash of
$15,030,000. Income from securities lending of $15,346 is included in interest
income on the Statement of Operations. The dividend and interest income earned
on the securities loaned is accounted for in the same manner as other dividend
and interest income.
During the six months ended June 30,1999, purchases and sales of investment
securities, exclusive of short-term investments and foreign currency
transactions, were $32,538,785 and $40,156,596, respectively, for the Equity
Series and $241,398,843 and $245,742,045, respectively, for the Income Series.
As of June 30, 1999, net unrealized appreciation (depreciation), unrealized
appreciation and unrealized depreciation of investments based on cost for
federal income tax purposes were as follows:
Net Unrealized
Appreciation Unrealized Unrealized
Series (Depreciation) Appreciation (Depreciation)
- --------------------------------------------------------------------------------
Equity $ 3,610,047 $9,555,383 $(5,945,336)
Income $(7,605,791) $ 195,289 $(7,801,080)
- --------------------------------------------------------------------------------
The cost of investments for federal income tax purposes is substantially the
same as that used for financial reporting purposes.
At June 30,1999, the Income Series had outstanding forward currency contracts to
sell and buy foreign currencies as follows:
Value at
Foreign Currency Settlement Date Current Unrealized
Sell Contracts Receivable Value Appreciation
- --------------------------------------------------------------------------------
British Pounds,
expiring 9/13/99 $ 3,231,800 $ 3,157,034 $ 74,766
- --------------------------------------------------------------------------------
Euro Dollars,
expiring 10/19/99 to 2/29/00 $10,651,558 $10,496,811 $154,747
- --------------------------------------------------------------------------------
Total $13,883,358 $13,653,845 $229,513
- --------------------------------------------------------------------------------
Value at
Foreign Currency Settlement Date Current Unrealized
Buy Contracts Payable Value (Depreciation)
- --------------------------------------------------------------------------------
Euro Dollars,
expiring 9/23/99 $5,497,000 $5,206,028 $(290,972)
- --------------------------------------------------------------------------------
12
<PAGE>
Notes
Notes to
to Financial
Financial Statements
Statements
6. Directors' Remuneration The Directors of the Company associated with Lord
Abbett and all officers of the Company receive no compensation from the Company
for acting as such. Outside Directors' fees and retirement costs are allocated
among all funds in the Lord Abbett group based on net assets of each fund.
Directors' fees payable at June 30, 1999 under a deferred compensation plan,
were approximately $51,279.
7.Expense Reduction The Company has entered into an arrangement with its
transfer agent whereby credits realized as a result of uninvested cash balances
were used to reduce a portion of each Series' expenses.
8. Line of Credit The Equity Series, along with certain other funds managed by
Lord Abbett, has available a $200,000,000 unsecured revolving credit facility ("
Facility"), from a consortium of banks, to be used for temporary or emergency
purposes as an additional source of liquidity to fund redemptions of investor
shares. Any borrowings under this Facility will bear interest at current market
rates as defined in the agreement. The fee for this Facility is 0.06% per annum.
There were no loans outstanding pursuant to this Facility at June 30, 1999, nor
was the Facility utilized at any time during the period.
Our Management
Board of Directors
Robert S. Dow
William H. T. Bush* +
Robert B. Calhoun, Jr.*
E. Thayer Bigelow*
Stewart S. Dixon* +
John C. Jansing* +
C. Alan MacDonald*
Hansel B. Millican, Jr.*
Thomas J. Neff * +
* Outside Director
+ Audit Committee
Investment Manager and
Underwriter
Lord, Abbett & Co. and
Lord Abbett Distributor LLC
The General Motors Building
767 Fifth Avenue
New York, NY 10153-0203
212-848-1800
Sub-Adviser
Fuji-Lord Abbett International, Ltd.
7-11 Finsbury Circus
London EC2M7HJ England
Custodian
The Bank of New York
New York, NY
Transfer Agent
United Missouri Bank of
Kansas City, N. A.
Shareholder Servicing Agent
DST Systems, Inc.
P. O. Box 419100
Kansas City, MO 64141
800-821-5129
Auditors
Deloitte & Touche LLP
New York, NY
Counsel
Debevoise & Plimpton
New York, NY
Copyright (C)1999 by Lord Abbett Global Fund, Inc., 767 Fifth Avenue, New York,
NY 10153-0203
This publication, when not used for the general information of shareholders of
Lord Abbett Global Fund, Inc., is to be distributed only if preceded or
accompanied by a current prospectus which includes information concerning each
Series' investment objective and policies, sales charges and other matters.
There is no guarantee that the forecasts contained within this publication will
come to pass.
All rights reserved. Printed in the U. S. A.
<PAGE>
Investing in the
Lord Abbett
Family of Funds
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GROWTH
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INCOME
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Aggressive Growth Funds Growth & Balanced Fund Income Funds Tax-Free Money
Growth Fund Income Funds Income Funds Market Fund
Developing Research Fund - Research Fund - Balanced World Bond- National U. S. Government
Growth Fund* Small-Cap Value Large-Cap Series*** Debenture Series California Securities Money
Series Series Global Fund - Connecticut Market Fund ++
Alpha Series** Growth & Income Series Florida
International Income Series High Yield Fund Georgia
Series Affiliated Fund Bond-Debenture Hawaii
Mid-Cap Fund Michigan
Value Fund Limited Duration Minnesota
Growth U. S. Government Missouri
Opportunities Securities Series+ New Jersey
Fund U. S. Government) New York
Global Fund - Securities Series+ Pennsylvania
Equity Series Texas
Washington
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Finding the right mutual fund can be confusing. At Lord, Abbett & Co., we
believe your investment professional provides value in helping you identify and
understand your investment objectives and, ultimately, offering fund
recommendations suitable for your individual needs.
This publication, when used as sales literature, is to be distributed only if
preceded or accompanied by a current prospectus for the fund(s) covered by this
report.
For more complete information about any Lord Abbett fund, including risks,
charges and ongoing expenses, call your investment professional or Lord Abbett
Distributor LLC at 800-874-3733 for a prospectus. Read it carefully before
investing.
The Lord Abbett Family of Funds lets you access more than 30 portfolios designed
to meet a variety of investment needs.
Diversification. You and your investment professional can diversify your
investments between equity and income funds.
Flexibility. As your investment goals change, your investment professional can
help you reallocate your portfolio.
You may reallocate assets among our funds at any time. Speak with your
investment professional to help you customize your investment plan.
Numbers to Keep Handy
For Shareholder Account or Statement
Inquiries: 800-821-5129
For Literature Only: 800-874-3733
24-Hour Automated Shareholder
Service Line: 800-865-7582
Visit Our Web Site:
http://www.lordabbett.com
*** Lord Abbett Developing Growth Fund Class A, B and C will close to new
investors on 9/30/99.
*** Lord Abbett Securities Trust - Alpha Series is a fund of funds investing in
shares of Lord Abbett Developing Growth Fund, Lord Abbett Research Fund -
Small-Cap Value Series and Lord Abbett Securities Trust International
Series.
*** Lord Abbett Balanced Series is a fund of funds investing in shares of
certain other Lord Abbett funds.
+ An investment in this Fund is neither insured nor guaranteed by the U. S.
Government.
++ An investment in this Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund. This Fund is managed to
maintain and has maintained its stable $1.00 price per share.
[LOGO]
Lord Abbett mutual fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC
The GM Building o 767 Fifth Avenue o New York, NY o 10153-0203
LAG-3-699
(8/99)
