Lord Abbett
Global Fund
Equity Series o Income Series
1999 Annual Report
[GRAPHIC OMITTED]
Two globally diversified portfolios
to help you achieve your goals
Visit our Web Site
and get:
up-to-date statistics and
other useful information at
www.lordabbett.com
<PAGE>
Report to Shareholders
For the Fiscal Year Ended December 31, 1999
[PHOTO]
Robert S. Dow
Chairman
January 15, 2000
"With 86% of the portfolio invested in AAA-rated securities, the overall credit
quality of the portfolio remained at the high end of the spectrum."
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Lord, Abbett & Co. is proud to announce we have received a DALBAR award for
providing consistently good service to shareholders, the 1999 Key Honor Award
for Mutual Fund Service. DALBAR, Inc., an independent research firm and
evaluator of mutual fund service, presents the awards to financial services
firms that provide consistently solid service to clients.
Lord Abbett Global Fund - Equity Series and Income Series completed the fiscal
year on December 31, 1999. Below is an overview of the class-specific data
pertaining to each Fund as of the close of the year.
<TABLE>
<CAPTION>
Global Fund - Equity Series Global Fund - Income Series
- --------------------------------------------------------------------------------------
Year Ended December 31, 1999 Year Ended December 31, 1999
Class A Class B Class C Class A Class B Class C Class P**
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value $13.82 $13.60 $13.63 $7.16 $7.17 $7.17 $7.16
Total return* 12.4% 11.5% 11.6% -9.5% -10.1% -10.0% -5.5%
</TABLE>
The Year in Review
Favorable prospects for global growth were predominant in investors' minds
throughout most of 1999. The first half of 1999 was a time of moderate growth in
European economies amidst rising global interest rates. Since interest rates in
Europe did not rise as much as those in the U.S., European bonds outperformed
U.S. bonds. By the third and fourth quarters, global fixed income markets
experienced mild volatility. In the U.S., bonds continued to underperform, a
situation fueled by the likelihood of further increases in interest rates by the
Federal Reserve Board (the "Fed") and by concerns about higher inflation as a
result of strong Gross Domestic Product (GDP) growth and higher global commodity
prices.
About the Equity Series
Throughout the year, we underweighted the portfolio in the stocks of Japanese
companies, due to our concern that these companies were not showing enough
corporate earnings growth to support long-term economic expansion. However, by
the fourth quarter, some Japanese companies began to show signs of extended
earnings improvement and therefore some were added to the portfolio. To make
these purchases, we sold some of the stocks of UK technology companies that had
reached the target prices we set for them. Both of these decisions added to
performance of the Fund. In addition, the portfolio remained overweighted in the
stocks of European companies. Our decision to slightly underweight the portfolio
in U.S. equities detracted from performance of the Fund, as relatively, the
European equity markets did not perform as strongly as the U.S. equity market.
Going forward, we will continue to watch economic developments in Japan in order
to take advantage of any potentially rewarding investment opportunities.
About the Income Series
We remained overweighted in bonds of the U.K., Greece and core European
countries (Germany, France, Switzerland, Belgium, Austria and the Netherlands).
Exposure to the euro (the common European currency), which came under pressure
during the year, negatively affected Fund performance. We continued to limit our
exposure to Japanese bonds, especially during the second half of 1999, as we did
not perceive an opportunity for competitive returns. With 86% of the portfolio
invested in AAA-rated global securities, the overall credit of the portfolio
remained at the high end of the quality spectrum, and contributed to the
relatively lower volatility of the Fund versus some of its peers.
In 1999, the Federal Reserve Board, the Bank of England and many European
central banks raised rates in an attempt to curb inflationary expectations. We
are encouraged by these actions and expect that inflationary pressures will be
contained, thereby making the current real rates of return in the U.S. and in
Europe more attractive. With moderate growth and appropriate interest rate
policies, core European countries and the U.K. should continue to offer some
attractive opportunities in 2000. Likewise, we are optimistic that the worst of
Europe's currency problems are over.
As always, we remain committed to helping you achieve your long-term financial
goals, and thank you for including Lord Abbett Global Fund in your investment
portfolio.
* Total return is the percent change in net asset value, assuming the
reinvestment of all distributions.
** Total return for Class P shares is not annualized. The inception date for
Global Fund - Income Series Class P shares was 3/4/99.
<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. See Important Information on page 2.
Percent of the World's Market Capitalizations
[GRAPHIC OMITTED]
Source: Morgan Stanley Capital International World Index. Data as of 12/31/99,
based on market capitalization.
Managed to Participate in Global Growth Portfolio diversification positions the
Global Fund - Equity Series to participate in global opportunities. Nine
countries were represented in the Global Fund - Equity Series at period end (see
the Statement of Net Assets on page 2). The geographic data illustrated below
does not include cash and short-term investments.
[GRAPHIC OMITTED]
Data as of 12/31/99. The Global Fund - Equity Series portfolio is actively
managed and its holdings are subject to change.
1
<PAGE>
Important Information
The investment return and principal value of a Series 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 trans action 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 3/31/00, this report must be accom panied by Lord Abbett's
Performance Quarterly for the most recently completed calen dar quarter.
Statement of Net Assets
Equity Series December 31, 1999
<TABLE>
<CAPTION>
Investments
Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S>
<C> <C>
Long-Term Investments in Securities 96.23%
- -----------------------------------------------------------------------------------------------------------------------------------
Foreign 68.17%
- -----------------------------------------------------------------------------------------------------------------------------------
Australia 1.65% *Novogen Ltd.-Biotechnology company specializing in plant sterol-based OTC and
eventually ethical pharmaceutical products
600,000 $ 1,206,252
- -----------------------------------------------------------------------------------------------------------------------============
Canada 2.71% *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 1,974,732
- -----------------------------------------------------------------------------------------------------------------------============
France 13.71% AXA-One of Europe's largest financial organizations
12,000 1,673,256
Alcatel-Develops, produces and distributes telecommunications equipment,
cables, software and offers turnkey telecommunication solutions
15,000 3,445,650
Cap Gemini SA-Provides computer consulting services
8,000 2,031,120
*Sanofi-Synthelabo SA-Manufactures health care products and medical
and surgical equipment
30,000 1,249,502
Suez Lyonnaise des Eaux-Water and business services group
10,000 1,602,933
Total 10,002,461
- -----------------------------------------------------------------------------------------------------------------------============
Germany 6.53% SAP AG-World's fourth-largest software firm dominating the global
market for relational database management software tools
5,000 2,458,300
Siemens AG-Manufactures a wide range of industrial and consumer
electrical and electronic products
18,000 2,303,145
Total 4,761,445
- -----------------------------------------------------------------------------------------------------------------------============
Japan 14.59% Canon Inc.-Manufacturer of business machines, cameras and optical products
16,000 635,244
Hitachi Ltd.-One of Japan's major manufacturers of communications and
electronic equipment, heavy electronic and industrial machinery, and
consumer electronics
68,000 1,090,554
Ito-Yokado Co. Ltd.-Diversified retailing operations
12,000 1,302,562
Matsushita Electric Industrial Co. Ltd.-One of world's largest
manufacturers of electric and electronic products
23,000 636,515
Mitsubishi Electric Corp.-Develops, manufactures, and markets electronic
and electric equipment
181,000 1,168,199
Nippon Telephone & Telegraph Corp.-Company holding majority of NTT
Docomo and NTTData
65 1,112,361
Secom Co. Ltd.-Leading security service provider in Japan
12,000 1,320,164
Shiseido Co. Ltd.-Japan's leading cosmetic manufacturer
25,000 364,268
Sony Corp.-Leading consumer electronics and entertainment company
4,000 1,185,214
Taisho Pharmaceuticals Co. Ltd.-Largest OTC drug manufacturer in Japan
13,000 381,381
The Kansai Electric Power Co.-Electricity distributor that generates
electricity from water, steam, thermal, nuclear, and liquefied natural
gas power
52,400 912,619
Tokyo Electric Power-Japan's largest electric power supplier
20,000 535,889
Total 10,644,970
- -----------------------------------------------------------------------------------------------------------------------============
Netherlands 3.69% Elsevier NV-A holding company with a 50% interest in Reed Elsevier plc,
an international publishing and information provider
100,000 1,194,895
Koninklijke Numico NV-Develops, manufactures and markets nutritional products
40,156 1,498,534
Total 2,693,429
- -----------------------------------------------------------------------------------------------------------------------============
Sweden 5.81% Ericsson (L.M.) Series B-Leading supplier of telecommunications systems
66,000 4,242,353
- -----------------------------------------------------------------------------------------------------------------------============
2
<PAGE>
Statement of Net Assets
Equity Series December 31, 1999
Shares
or
Investments Principal
Amount Value
- -----------------------------------------------------------------------------------------------------------------------------------
United Kingdom 19.48% British Aerospace 7.45% due 11/30/2003-Provides avionics, airframes,
electronic defense and telecommunications systems for air, naval and
land forces in some 72 countries GBP
20,314 $ 32,541
*British Aerospace plc-Provides avionics, airframes, electronic defense
and telecommunications systems for air, naval and land forces in some
72 countries
64,318 426,699
Jarvis plc-Specialist engineering and service company focused on the
installation of railway related track and signals
350,000 1,245,937
Marconi plc-An international company which specializes in the
telecommunications equipment, software and turnkey projects
150,000 2,658,943
*NXT plc-Specializes in the development and licensing of flat panel
speaker technology
395,000 8,756,348
Pilkington plc-Manufactures and distributes glass for the building,
automotive, specialist energy and electronic markets
800,000 1,093,835
Smithkline Beecham plc-United Kingdom-based pharmaceutical company
79 1,010
Total 14,215,313
- -----------------------------------------------------------------------------------------------------------------------============
Total Investments in Foreign Securities (Cost
$35,247,752) 49,740,955
===================================================================================================================================
United States 28.06%
===================================================================================================================================
American General Corp.-A leading provider of financial services,
including life/health insurance, annuities, consumer credit and
mortgage financing
27,100 2,056,212
American Home Products Corp.-Producer of drugs, food, housewares
and packaged medicine and medical products
31,600 1,246,225
Cardinal Health Inc.-Provides complementary products and services
to healthcare providers and manufacturers
25,000 1,196,875
Computer Associates International, Inc.-Designs, develops, markets,
licenses, and supports standardized computer software products
15,800 1,105,012
*Concord EFS Inc.-Provides electronic transaction authorization,
processing, settlement, and funds transfer services across the United States
75,000 1,931,250
*FDX Corp.-Provider of transportation, package delivery, logistics solutions
for customers, and regional freight carrying service
40,000 1,637,500
Heinz (H.J.) Co.-Domestic packaged foods producer
15,000 597,188
Intel Corp.-Leading producer of semi-conductor processing circuits
30,000 2,469,375
*Lason Inc.-Provides integrated information management services for
image and data capture, data management, and output processing
20,000 220,000
Lilly, Eli & Co.-A global, research-based pharmaceutical corporation
20,000 1,330,000
*Media Metrix Inc.-Provides Internet audience measurement products and services
15,000 536,250
SBC Communications Inc.-Provides communications services, such as local
and long distance phone service, wireless communications, and Internet
access in the United States and in other countries
40,700 1,984,125
Sonoco Products Co.-A leading U.S. producer of specialty paper and plastic
packaging components
50,000 1,137,500
State Street Corp.-Commercial and investment bank
27,100 1,979,994
Time Warner Inc.-A major entertainment and communications firm
14,500 1,050,344
Total Investments in United States Securities (Cost
$19,749,695) 20,477,850
- -----------------------------------------------------------------------------------------------------------------------============
Total Long-Term Investments In Securities (Cost
$54,997,447) 70,218,805
===================================================================================================================================
Short-Term Investments 4.06%
===================================================================================================================================
American Express Credit Corp. 4.25% due 1/3/2000
$2,740,000 2,740,000
Associated First Capital 4.05% due 1/3/2000
220,000 220,000
Total Short-Term Investments (Cost
$2,960,000) 2,960,000
- -----------------------------------------------------------------------------------------------------------------------============
Total Investments 100.29% (Cost
$57,957,447) 73,178,805
- -----------------------------------------------------------------------------------------------------------------------============
Cash and Receivables, Net of Liabilities
(.29)% (212,640)
===================================================================================================================================
Net Assets
100.00%
$72,966,165
===================================================================================================================================
Class A Shares-Net asset value ($66,974,569 / 4,845,210 shares
outstanding) $13.82
Maximum offering price (net asset value plus sales charge of 5.75% of the offering
price) $14.66
Class B Shares-Net asset value ($3,686,097 / 271,107 shares
outstanding) $13.60
Class C Shares-Net asset value ($2,305,499 / 169,198 shares
outstanding) $13.63
*Non-income producing security.
GBP British Pound
The descriptions of the companies shown in the portfolio are unaudited.
See Notes to Financial Statements.
3
</TABLE>
<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. See Important Information on page 5.
A Comparison of 10-Year U.S. and Global Government Bonds, After Currency
Translations
<TABLE>
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
<C>
U.S. Treasurys(1) 8.65% 15.20% 7.21% 10.63% (3.35%) 18.45% 2.61% 9.62% 12.76%
(8.25%)
Government Bond Index(2) 11.77% 15.44% 4.55% 12.27% 1.28% 19.31% 4.40% 1.40% 15.31%
(5.08%)
</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 Government Bond Index is the J.P. Morgan Government Bond Index, 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 12/31/98 As of 12/31/99 12/31/98 12/31/99
<S> <C> <C> <C> <C> <C>
United States 4.68% 6.43% Italy 3.98% 5.57%
Australia 4.99% 6.96% Japan 2.08% 1.65%
Canada 4.94% 6.25% New Zealand 5.48% 7.29%
France 3.95% 5.47% South Africa 15.82% 13.66%
Germany 3.86% 5.35% Sweden 4.20% 5.70%
Greece 6.89% 6.45% United Kingdom 4.41% 5.48%
</TABLE>
Past performance does not indicate future results.
Semi-annual yields to maturity on 10-year government benchmark bond yields.
Currency for United States is U.S. dollars; all other countries use local
currencies.
Source: HSBC Bank plc (as of December 31, 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.
[GRAPHIC OMITTED]
Data as of 12/31/99. The Global Fund - Income Series' portfolio is actively
managed and its holdings are subject to change.
4
<PAGE>
Statement of Net Assets
Income Series December 31, 1999
<TABLE>
<CAPTION>
Principal
Amount in
Rating*:S&P Local Currency
Investments or Moody's
(000) U.S. $ Value
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Investments in Securities 113.58%
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign 73.26%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C>
Canada 2.58% Government of Canada 51/4% due 9/1/2003 AAA CAD
1,000 $ 672,205
Government of Canada 9% due 6/1/2025 AAA CAD
1,800 1,657,321
Total 2,329,526
- -----------------------------------------------------------------------------------------------------------------------============
Chile 1.04% Codelco Inc. 73/8% due 5/1/2009++ A- USD
1,000 941,750
- -----------------------------------------------------------------------------------------------------------------------============
Denmark 1.14% Kingdom of Denmark 8% due 11/15/2001 AAA DKK
7,170 1,027,223
- -----------------------------------------------------------------------------------------------------------------------============
Finland 7.25% Republic of Finland 6% due 1/29/2002 AAA JPY
600,000 6,559,751
- -----------------------------------------------------------------------------------------------------------------------============
Germany 23.36% Bundesobligation 5% due 8/20/2001 AAA EUR
3,375 3,445,053
Deutschland Republic 61/4% due 1/4/2024 AAA EUR
3,700 3,867,541
Deutschland Republic 73/8% due 1/3/2005 AAA EUR
4,661 5,189,006
Hypothekenbk in Essen 41/4% due 7/6/2009 AAA EUR
3,000 2,702,417
Treuhandanstalt 71/2% due 9/9/2004 AAA EUR
5,317 5,917,525
Total 21,121,542
- -----------------------------------------------------------------------------------------------------------------------============
- -----------------------------------------------------------------------------------------------------------------------============
Greece 8.75% Hellenic Republic 61/2% due 1/11/2014 A GRD
2,050,000 6,214,621
Helllenic Republic 8.60% due 3/26/2008 A GRD
493,000 1,701,348
Total 7,915,969
- -----------------------------------------------------------------------------------------------------------------------============
Italy 1.35% Republic of Italy (BTPS) 5% due 2/15/2003 AA EUR
1,200 1,220,486
- -----------------------------------------------------------------------------------------------------------------------============
Netherlands 8.92% Bk Nederlandse Gemeenten 61/2% due 11/4/2008 AAA DEM
3,200 1,736,201
Netherlands Government 51/4% due 7/15/2008 AAA EUR
2,250 2,247,607
Netherlands Government 91/4% due 11/30/2000 AAA EUR
1,653 1,742,321
Tecnost International NV 53/8% due 7/30/2004 A EUR
2,400 2,336,513
Total 8,062,642
- -----------------------------------------------------------------------------------------------------------------------============
New Zealand .63% New Zealand Government 8% due 11/15/2006 AAA NZD
1,050 573,552
- -----------------------------------------------------------------------------------------------------------------------============
Spain 5.61% Spanish Government 6.15% due 1/31/2013 AA EUR
4,900 5,077,447
- -----------------------------------------------------------------------------------------------------------------------============
Sweden 2.28% Swedish Government 101/4% due 5/5/2003 AAA SEK
15,300 2,065,503
- -----------------------------------------------------------------------------------------------------------------------============
United Kingdom 10.35% Glaxo Wellcome plc 83/4% due 12/1/2005 AA GBP
800 1,414,802
United Kingdom Treasury 10% due 9/8/2003 AAA GBP
4,390 7,942,378
Total 9,357,180
- -----------------------------------------------------------------------------------------------------------------------============
Total Investments in Foreign Securities (Cost
$78,374,572) 66,252,571
- -----------------------------------------------------------------------------------------------------------------------============
United States 40.32%
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 71/2% due on an announced basisAAA USD
16,000 15,835,040
Federal National Mortgage Association 51/4% due 1/15/2009 AAA USD
1,030 908,491
Household Finance Corp. 51/8% due 6/24/2009+ A EUR
3,000 2,776,318
Student Loan Marketing Association 15% due 2/1/2000 AAA USD
13,000 13,085,540
U.S. Treasury Bond 61/8% due 11/15/2027 AAA USD
2,000 1,861,240
U.S. Treasury Note Inflation Indexed 37/8% due 1/15/2009 AAA USD
2,027 1,992,500
Total Investments in United States Securities (Cost
$37,216,938) 36,459,129
- -----------------------------------------------------------------------------------------------------------------------============
Total Long-Term Investments in Securities (Cost
$115,591,510) 102,711,700
===================================================================================================================================
Short-Term Investments 1.05%
- -----------------------------------------------------------------------------------------------------------------------============
American Express CreditCorp. 1.05% due 1/3/2000 (Cost $950,000) USD
950 950,000
- -----------------------------------------------------------------------------------------------------------------------============
Total Investments 114.63% (Cost
$116,541,510) 103,661,700
- -----------------------------------------------------------------------------------------------------------------------============
5
<PAGE>
Statement of Net Assets
Income Series December 31, 1999
Investments
Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities (14.63)%
- -----------------------------------------------------------------------------------------------------------------------------------
Other (See Note
5) $
1,195,620
- -----------------------------------------------------------------------------------------------------------------------============
Cash
99,848
- -----------------------------------------------------------------------------------------------------------------------============
Receivables for:
Interest 3,403,911
Unrealized appreciation on foreign currency
contracts 568,897
Closed foreign currency
contracts 371,854
Capital shares
sold 7,963
Total Other
Assets 5,648,093
- -----------------------------------------------------------------------------------------------------------------------============
Payables for: Securities
purchased 16,045,000
Collateral on securities
loaned 1,195,620
Dividends 432,742
Unrealized depreciation on foreign currency
contracts 716,736
Capital shares
reacquired 137,588
Other 353,295
Total
Liabilities 18,880,981
- -----------------------------------------------------------------------------------------------------------------------============
Total Other Assets, Less
Liabilities (13,232,888)
===================================================================================================================================
Net Assets
100.00%
$90,428,812
===================================================================================================================================
Class A Shares-Net asset value ($86,014,579 / 12,015,910 shares outstanding)
$7.16
Maximum offering price (net asset value plus sales charge of 4.75% of the offering
price) $7.52
Class B Shares-Net asset value ($1,508,094 / 210,407 shares
outstanding) $7.17
Class C Shares-Net asset value ($2,695,958 / 376,074 shares
outstanding) $7.17
Class P Shares-Net asset value ($210,181 / 29,364 shares
outstanding) $7.16
*Ratings are unaudited.
+A portion of securities on loan. See Note 5.
++Restricted security under Rule 144A.
CAD Canadian Dollar
DEM Deutsche Mark
DKK Danish Krone
EUR Euro
GBP British Pound
GRD Greek Drachma
JPY Japanese Yen
NZD New Zealand Dollar
SEK Swedish Krona
USD U.S. Dollar
See Notes to Financial Statements.
</TABLE>
6
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
Year
Ended December 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Income Equity
Series Income Series
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
<C> <C>
Income Dividends $
707,653 $ -
Interest
111,225 7,801,471
Foreign taxes withheld
(13,015) (13,432)
Securities lending
- - 19,080
Total income
805,863 7,807,119
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses Management fee
529,582 535,412
12b-1 distribution plan-Class A
232,809 351,636
12b-1 distribution plan-Class B
29,783 16,513
12b-1 distribution plan-Class C
18,644 33,292
12b-1 distribution plan-Class P
- - 592
Shareholder servicing
384,164 211,246
Reports to shareholders
55,006 53,674
Professional
55,668 52,269
Registration
45,953 47,531
Directors' fees
2,497 4,515
Other
43,689 49,524
Total expenses before reductions
1,397,795 1,356,204
- -----------------------------------------------------------------------------------------------------------------------------------
Expense reductions
(15,177) (27,516)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses
1,382,618 1,328,688
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)
(576,755) 6,478,431
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investment and foreign currency transactions
467,982 (2,764,221)
- -----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of investments and foreign currency holdings
7,718,240 (14,856,202)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and foreign currency transactions
8,186,222 (17,620,423)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations
$7,609,467 $(11,141,992)
===================================================================================================================================
See Notes to Financial Statements.
7
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended December 31, 1999 Year Ended
December 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets Equity Series Income Series Equity
Series Income Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Operations Net investment income (loss) $ (576,755) $ 6,478,431 $ 19,866
$ 8,862,091
Net realized gain (loss)from investment and foreign
currency transactions 467,982 (2,764,221)
5,196,409 2,030,984
Net change in unrealized appreciation/depreciation of
investments and foreign currency holdings 7,718,240 (14,856,202)
1,745,245 2,496,490
Net increase (decrease) in net assets resulting from
operations 7,609,467 (11,141,992)
6,961,520 13,389,565
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders from:
Net investment income-Class A - (5,200,250)
(180,595) (7,633,729)
Net investment income-Class B - (74,071)
- - (73,682)
Net investment income-Class C - (151,138)
- - (228,255)
Net investment income-Class P - (7,060)
- - -
Paid-in-capital-Class A - (1,337,126)
- - -
Paid-in-capital-Class B - (19,046)
- - -
Paid-in-capital-Class C - (38,861)
- - -
Paid-in-capital-Class P - (1,816)
- - -
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 - (6,829,368)
(5,385,041) (7,935,666)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 24,020,080 7,708,650
10,776,471 6,251,481
Net asset value of shares issued in reinvestment of
dividends and distributions - 4,584,488
5,194,218 5,089,826
Total 24,020,080 12,293,138
15,970,689 11,341,307
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (38,756,096) (29,055,276)
(18,274,782) (40,417,825)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets derived from capital share
transactions (14,736,016) (16,762,138)
(2,304,093) (29,076,518)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets (7,126,549) (34,733,498)
(727,614) (23,622,619)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets Beginning of year 80,092,714 125,162,310
80,820,328 148,784,929
- ------------------------------------------------------------------------------------------------------------------------------------
End of year+ $ 72,966,165 $ 90,428,812) $ 80,092,714
$125,162,310
===================================================================================================================================
</TABLE>
+ Including (accumulated net investment loss) and undistributed net
investment income of $(697,860) and $761,514, respectively, as of December
31, 1999 and (distributions in excess of) and undistributed net investment
income of $(121,105) and $1,112,451, respectively, as of December 31, 1998.
See Notes to Financial Statements.
8
<PAGE>
Financial Highlights
Equity Series
<TABLE>
<CAPTION>
Class A Shares
- ------------------------------------------------------------------------------------------------------------------------------------
Year
Ended December 31,
Per Share Operating Performance: 1999 1998 1997
1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C>
Net asset value, beginning of year $12.29 $12.08 $12.55
$11.96 $11.55
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) (.09)(b) .01(b) .07(b)
.07 .16
Net realized and unrealized gain on investments and
foreign currency transactions 1.62 1.08 .90
.93 .90
Total from investment operations 1.53 1.09 .97
1.00 1.06
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income - (.03) (.06)
(.07) (.17)
Distributions from net realized gains - (.85) (1.11)
(.21) (.48)
Distributions from foreign currency transactions - - (.27)
(.13) -
Total distributions - (.88) (1.44)
(.41) (.65)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $13.82 $12.29 $12.08
$12.55 $11.96
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) 12.37%(d) 9.07% 7.99%
8.37% 9.19%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) 1.94% 1.66% 1.51%
1.52% 1.63%
Net investment income (loss) (.77)% .06% .57%
.54% 1.31%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B
Shares Class C Shares
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year
Ended
December 31, 8/1/96(c) December
31, 7/15/96(c)
Per Share Operating Performance: 1999 1998 1997 to 12/31/96 1999 1998
1997 to 12/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
<C> <C>
Net asset value, beginning of year $12.18 $12.03 $12.53 $12.30 $12.20 $12.05
$12.54 $12.31
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment loss (.17)(b) (.09)(b) (.02)(b) (.01) (.17)(b) (.09)(b)
(.01)(b) -
Net realized and unrealized gain
on investments and foreign
currency transactions 1.59 1.09 .89 .58 1.60 1.09
.90 .57
Total from investment operations 1.42 1.00 .87 .57 1.43 1.00
.89 .57
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income - - - - - -
(.01) -
Distributions 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 year $13.60 $12.18 $12.03 $12.53 $13.63 $12.20
$12.05 $12.54
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) 11.49% 8.37% 7.19% 4.56%(d) 11.56% 8.35%
7.34% 4.64%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) 2.57% 2.37% 2.23% .83%(d) 2.57% 2.37%
2.14% .83%(d)
Net investment loss (1.42)% (.70)% (.16)% (.16)%(d) (1.44)% (.69)%
(.06)% (.11)%(d)
====================================================================================================================================
Year
Ended December 31,
Supplemental Data For All Classes: 1999 1998 1997
1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $72,966 $80,093 $80,820
$92,164 $84,731
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 78.74% 89.48% 99.05%
81.97% 83.32%
====================================================================================================================================
(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 year.
(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
</TABLE>
<PAGE>
Financial Highlights
Income Series
<TABLE>
<CAPTION>
Class A Shares
- ------------------------------------------------------------------------------------------------------------------------------------
Year
Ended December 31,
Per Share Operating Performance: 1999 1998 1997
1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C>
Net asset value, beginning of year $8.44 $8.09 $8.34
$8.58 $7.98
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .47(b) .55(b) .51(b)
.53 .77
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.26) .30 (.18)
(.04) .6138
Total from investment operations (.79) .85 .33
.49 1.3838
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (.39) (.50) (.51)
(.61) (.6613)
Distributions from paid-in-capital (.10) -
(.07) - -
Distributions from foreign currency transactions - - -
(.12) (.1225)
Total distributions (.49) (.50) (.58)
(.73) (.7838)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $7.16 $8.44 $8.09
$8.34 $8.58
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) (9.47)% 10.79% 4.23%
6.12% 17.86%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) 1.24% 1.18% 1.10%
1.04% 1.04%
Net investment income 6.08% 6.75% 6.29%
6.52% 7.60%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares Class C
Shares Class P Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
Per Share Operating December 31, 8/1/96(c) December 31,
7/15/96(c) 3/4/99(c)
Performance: 1999 1998 1997 to 12/31/96 1999 1998 1997 to
12/31/96 to 12/31/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Net asset value, beginning
of year $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 .43(b) .49(b) .45(b) .23 .43(b) .50(b) .45(b)
.21 .42(b)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions (1.26) .30 (.18) .22 (1.26) .29 (.18)
.37 (.85)
Total from investment
operations (.83) .79 .27 .45 (.83) .79 .27
.58 (.43)
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (.35) (.44) (.46) (.23) (.35) (.44) (.46)
(.26) (.25)
Distributions from
paid-in-capital (.09) - (.06) - (.09) - (.06)
- - (.07)
Distributions from foreign
currency transactions - - - (.12) - - -
(.12) -
Total distributions (.44) (.44) (.52) (.35) (.44) (.44) (.52)
(.38) (.32)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $7.17 $8.44 $8.09 $8.34 $7.17 $8.44 $8.09
$8.34 $7.16
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return(a) (10.11)% 10.03% 3.49% 5.58%(d) (9.98)% 10.03% 3.48%
7.43%(d) (5.51)%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) 1.89% 1.87% 1.78% .73%(d) 1.88% 1.85% 1.77%
.87%(d) 1.25%(d)
Net investment income 5.57% 6.01% 5.57% 2.11%(d) 5.42% 6.08% 5.62%
2.69%(d) 5.66%(d)
- ------------------------------------------------------------------------------------------------------------------------------------
Year
Ended December 31,
Supplemental Data For All Classes: 1999 1998 1997
1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000) $90,429 $125,162 $148,785
$202,494 $238,291
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 314.07% 359.13% 616.63%
621.79% 1,073.69%
- ------------------------------------------------------------------------------------------------------------------------------------
(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.
</TABLE>
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: Securities listed
or admitted to trading privileges on any national or foreign securities exchange
are valued at the last sales price on the principal securities exchange on which
such securities are traded, or, if there is no sale on that day, at the mean
between the last bid and asked prices, or, in the case of bonds, in the
over-the-counter market if, in the judgement of the Series' officers, that
market more accurately reflects the market value of the bonds. Over-the-counter
securities that are not traded on the NASDAQ National Market System are valued
at the mean between the last bid and asked price. Short-term securities maturing
in 60 days or less 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)
Transactions denominated in foreign currencies are recorded in the Series'
records at the rate prevailing when earned or incurred. Asset and liability
accounts that are denominated in foreign currencies are adjusted to reflect
current exchange rates. (c) 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. (d) 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. Net
investment income (other than class-specific 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.
(e) The Series enters into forward currency 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. The contracts are valued daily at forward exchange
rates or market values 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 and the closing of such contracts, is
included as net realized gain or loss from investment and foreign currency
transactions. Risks 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 Series' portfolio of investments and the
U.S. dollar. (f) 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 from the effect of
changes in market prices of those securities in the Statements of Operations.
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, sta tistical 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 Sub-Adviser. 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. At December 31,
1999, the management fees payable were $44,933 for Equity Series and $39,290 for
Income Series.
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. Each Series makes payments to Distributor which uses
or passes on such payments to authorized institutions. Pursuant to the Class A
Plan, each Series 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, each Series 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, each Series 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, Income Series 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. At December 31, 1999, the
12b-1 fees payable with respect to all classes of shares aggregated $35,342 for
Equity Series and $58,314 for Income Series.
Distributor received the following commissions on sales of Class A shares of
each Series after concessions were paid to authorized dealers:
Distributor Dealers'
Series Commissions Concessions
- --------------------------------------------------------------------------------
Equity $16,683 $99,286
- --------------------------------------------------------------------------------
Income 7,356 45,181
Certain of the Company's officers and directors have an interest in Lord Abbett.
3. Distributions Dividends from net investment income are declared semi-annually
for Equity Series and daily for Income Series. Distributions from net realized
gain from investment and foreign currency transactions are declared annually. At
December 31, 1999, accumulated net realized capital gain (loss) for financial
reporting purposes ag gre gated $467,982 and $(26,663,307), respec tively for
Equity Series and Income Series. The Income Series had a capital loss carry
forward as of December 31, 1999 of $24,605,743, of which $17,996,255 expires in
2002, $4,455,431 expires in 2004, $680,831 expires in 2005 and $1,473,226
expires in 2007. 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 accord ance with income
tax regulations which may differ from methods used to determine the
corresponding income and capital gains amounts in accordance with gen erally
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 andClass P-20 million shares. At
December 31, 1999, no Class P shares have been issued. 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 andClass P-20 million shares. At December 31, 1999, paid-in-cap
ital amounted to $57,974,685 for Equity Series and
11
<PAGE>
Notes to Financial Statements
$129,358,254 for Income Series. Transactions in shares of capital stock were as
follows:
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
Equity Series Income Series
Class A Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 1,801,517 $ 21,729,178 778,930 $ 6,071,925
Shares issued to share-
holders in reinvestment
of dividends - - 571,917 4,382,911
Total 1,801,517 21,729,178 1,350,847 10,454,836
- --------------------------------------------------------------------------------
Shares reacquired (3,100,103) (37,234,627) (3,484,906) (26,770,804)
Decrease (1,298,586) $(15,505,449) (2,134,059) $(16,315,968)
- --------------------------------------------------------------------------------
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)
- --------------------------------------------------------------------------------
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
Equity Series Income Series
Class B Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 124,254 $1,464,263 105,078 $ 825,054
Shares issued to share-
holders in reinvestment
of dividends - - 9,258 70,800
Total 124,254 1,464,263 114,336 895,854
- --------------------------------------------------------------------------------
Shares reacquired (81,536) (974,379) (84,358) (640,937)
Increase 42,718 $489,884 29,978 $ 254,917
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
Equity Series Income Series
Class C Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 69,286 $826,639 66,462 $ 508,532
Shares issued to share-
holders in reinvestment
of dividends - - 16,704 128,510
Total 69,286 826,639 83,166 637,042
- --------------------------------------------------------------------------------
Shares reacquired (46,673) (547,090) (203,629) (1,568,295)
Increase (decrease) 22,613 $279,549 (120,463) $ (931,253)
- --------------------------------------------------------------------------------
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 12/31/99
- --------------------------------------------------------------------------------
Income Series
Class P Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 39,096 $303,139
Shares issued to share-
holders in reinvestment
of dividends 297 2,267
Total 39,393 305,406
- --------------------------------------------------------------------------------
Shares reacquired (10,029) (75,240)
Increase 29,364 $230,166
- --------------------------------------------------------------------------------
5. Purchases and Sales of Investments The Company may lend 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 December 31, 1999, the value of securities loaned for
Income Series was $1,175,160. These loans were collateralized by cash of
$1,195,620. Interest income earned on the securities loaned is accounted for in
the same manner as other interest income.
During the year ended December 31, 1999, purchases and sales of investment
securities, exclusive of short-term investments and foreign currency
transactions, were $54,455,606 and $68,433,579, respectively, for the Equity
Series and $371,522,798 and $371,058,753, respectively, for the Income Series.
As of December 31, 1999, net unrealized appreciation (depreciation), gross
unrealized appreciation and gross 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 $ 15,221,358 $20,011,861 $ (4,790,503)
Income (12,879,810) 156,401 (13,036,211)
- --------------------------------------------------------------------------------
The cost of investments for federal income tax purposes is substantially the
same as that used for financial reporting purposes.
At December 31, 1999, the Income Series had outstanding forward currency
contracts to sell and buy foreign currencies as follows:
Unrealized
Foreign Value at Current Appreciation
Currency Settlement Date Value (Depreciation)
Contracts Type Local Currency U.S.Dollars U.S. Dollars U.S. Dollars
- --------------------------------------------------------------------------------
British Pounds,
expiring 4/28/00 Buy 2,000,000 $ 3,309,000 $ 3,235,605 $ (73,395)
- --------------------------------------------------------------------------------
Euro,
expiring 3/23/00 Buy 5,000,000 5,324,750 5,068,879 (255,871)
- --------------------------------------------------------------------------------
Euro,
expiring 4/26/00 Buy 5,000,000 5,409,625 5,080,400 (329,225)
- --------------------------------------------------------------------------------
Japanese Yen,
expiring 5/22/00 Buy 579,500,000 5,397,476 5,802,765 405,289
- --------------------------------------------------------------------------------
British Pounds,
expiring 5/30/00 Sell 2,000,000 (3,177,200) (3,235,445) (58,245)
- --------------------------------------------------------------------------------
Euro,
expiring 2/29/00 Sell 5,000,000 (5,219,000) (5,060,925) 158,075
- --------------------------------------------------------------------------------
Euro,
expiring 6/2/00 Sell 5,000,000 (5,099,500) (5,093,967) 5,533
- --------------------------------------------------------------------------------
Total $ 5,945,151 $ 5,797,312 $(147,839)
- --------------------------------------------------------------------------------
At December 31, 1999, there was a net receivable under a master netting
agreement relating to closed foreign currency contracts in the amount of
$371,854.
12
<PAGE>
Notes to Financial 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 December 31, 1999 under a deferred compensation plan,
were approximately $54,625.
7. Expense Reductions 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 was at an annual
rate of 0.06% during the year. Effective December 17, 1999, this fee was
increased to 0.09% per annum. There were no loans outstanding pursuant to this
Facility at December 31, 1999, nor was the Facility utilized at any time during
the year.
Independent Auditors' Report
The Board of Directors and Shareholders,
Lord Abbett Global Fund, Inc.:
We have audited the accompanying statements of net assets of Lord Abbett Global
Fund-Equity Series and Lord Abbett Global Fund-Income Series as of December 31,
1999, the related statements of operations for the year then ended and of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the periods presented. These financial
state ments and the financial highlights are the responsibility of the Company's
manage ment. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes exam ining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1999 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the Lord Abbett
Global Fund-Equity Series and Lord Abbett Global Fund-Income Series at December
31, 1999, the results of their operations, the changes in their net assets and
their financial highlights for the periods presented in conformity with
generally accepted accounting principles.
[GRAPHIC OMITTED]
New York, New York
February 25, 2000
Copyright(C)2000 by Lord Abbett Global Fund, Inc., 90 Hudson Street, Jersey
City, NJ 07302-3973 This publication, when not used for the general infor mation
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.
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
90 Hudson Street
Jersey City, NJ 07302-3973
800-201-6984
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
Wilmer, Cutler & Pickering
Washington, DC
13
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Investing in the
Lord Abbett
Family of Funds
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GROWTH
- ---------------------------------------------------------------------------------------------------------------------------
INCOME
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<S> <C> <C> <C> <C> <C> <C>
Aggressive Growth Funds Growth & Balanced Fund Income Funds Tax-Free Money
Growth Fund Income Funds Income Funds Market
Fund
Growth Large-Cap Research Fund - Balanced World Bond- National U. S.
Government
Opportunities Growth Fund Large-Cap Series** Debenture Series California
Securities Money
Fund Research Fund- Series Global Fund - Connecticut Market
Fund +++
Small-Cap Value Growth & Income Series Florida
Series Income Series High Yield Fund Georgia
Alpha Series* Affiliated Fund Bond-Debenture Hawaii
Developing International Fund Michigan
Growth Fund Series Limited Duration Minnesota
Lord Abbett Mid-Cap U. S. Government Missouri
Developing Value Fund Securities Series+ New Jersey
Growth Fund Global Fund- U. S. Government) New York
is closed to Equity Series Securities Series+ Pennsylvania
new investors 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
under stand your investment objectives and, ultimately, offering fund recom
mendations 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, in cluding 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:
www.lordabbett.com
** 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
90 Hudson Street o Jersey City, New Jersey 07302-3973
LAG-2-1299
(3/00)
