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LORD ABBETT Global Fund
Equity Series o Income Series
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED JUNE 30,2000
[GRAPHIC OMITTED]
Two globally diversified portfolios
to help you achieve your goals
[LOGO]
<PAGE>
REPORT TO SHAREHOLDERS
For the Six Months Ended June 30, 2000
[PHOTO]
/s/ Robert S. Dow
-----------------
Robert S. Dow
Chairman
July 10, 2000
"We selectively added to the U.S.
portion of the portfolio, particularly
stocks of technology companies, taking
advantage of the industry sell-off
during the quarter."
------------------------------------------------
======================
DALBAR
HONORS COMMITMENT TO:
INVESTORS
1999
=====================
Lord, Abbett & Co. is proud to announce
we have received a DALBAR award for
providing consistently good service to
shareholder the 1999 Key Honor Award for
Mutual Fund Service. DALBAR, Inc. an
independent research firm and evaluator
of mutual fund service, presents the
award to financial services firms that
provide consistently solid service to
clients.
------------------------------------------------
Lord Abbett Global Fund - Equity Series and Income Series completed the first
six months of its fiscal year on June 30, 2000. Below is an overview of the
class-specific data pertaining to each Fund as of the close of the six-month
reporting period.
<TABLE>
<CAPTION>
Global Fund - Equity Series Global Fund - Income Series
------------------------------ ----------------------------------------
Six Months Ended June 30, 2000 Six Months Ended June 30, 2000
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 $15.60 $15.30 $15.33 $6.80 $6.81 $6.81 $6.79
Total return* 13.0% 12.7% 12.6% -1.5% -1.8% -1.9% -1.7%
</TABLE>
THE YEAR IN REVIEW
After a long period of economic stagnation, continental Europe and Japan are
showing signs of improving economic conditions, suggesting a brightening outlook
for the stocks of companies in these regions. Unemployment in Europe and Japan
has fallen from historically high levels and domestic sales and industrial
production levels have improved. In June, Japan reported an increase in its
Gross Domestic Product (GDP) for the first quarter, and the report confirmed
that the growth stemmed mostly from private domestic demand and not from the
special government stimulus on which Japan has often relied. In the global
credit (bond) markets, the valuation of the euro (the common European currency)
has remained a key focus for most of this year. When 2000 began, the euro's
weakness was a factor in the European Central Banks' decision to raise interest
rates. However, by the second quarter, the euro rebounded and as a result, many
euro- denominated debt securities performed well relative to the first quarter.
The European Central Banks followed the Federal Reserve Board, raising
short-term interest rates and thereby reinforcing the trend in the euro.
Likewise, the yen also rose in value against the U.S. dollar.
ABOUT THE EQUITY SERIES**
Our overweighting in the stocks of European companies contributed to the Fund's
positive performance during the past six months. Improving economic conditions
in this region have led to an increase in certain equity valuations and we
believe the stage is set for a more widespread positive European stock market
response. In addition, we selectively added to the U.S. portion of the
portfolio, particularly stocks of technology companies, taking advantage of the
industry sell-off during the quarter. We believe the U.S. economy will continue
to show hints of a slowdown, while the European and Japanese economies are
likely to continue to gain momentum. This should result in an improvement in the
performance of non-U.S. stocks and will likely benefit the performance of the
Lord Abbett Global Fund -- Equity Series.
ABOUT THE INCOME SERIES**
As 2000 began, the weakness of the euro prompted us to reduce the portfolio's
exposure to this currency throughout the first quarter. This reduction in our
European bond holdings enabled us to increase our exposure to U.S. bonds, where
yield spreads, or the difference in yield between Treasury and non-Treasury
securities of similar maturities, had widened significantly. In April, however,
the situation started to reverse as the euro began to
<PAGE>
rebound significantly. At the first signs of this, we rebuilt our positions in
euro-denominated bonds, a decision that added to the Fund's performance. We also
sold some of our government holdings and bought more corporate debt and U.S.
agency securities, which although still of investment-grade quality, were
trading at attractively wide spreads relative to U.S. government securities. We
will continue to emphasize these securities until their yield spreads narrow
more significantly.
As economic growth in Europe continues to increase, we believe the stage is set
for periods in which the euro could continue to outperform the U.S. dollar. In
terms of currency exposure, we will try to take advantage of these possible
currency movements while generally maintaining a neutral stance in terms of
overall currency exposure relative to the market.
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.
Past performance is no indication of future results.
* Total return, which is not annualized, is the percent change in net asset
value, assuming the reinvestment of all distributions.
** The Series' portfolio is actively managed and is subject to change.
Risk: As noted, foreign securities markets may not be subject to the same degree
of regulation and may be more volatile and less liquid than major U.S. markets.
Foreign investments may also be subject to currency exposure. These and other
risks are more fully described in the prospectus. There can be no assurance that
the Fund will meet its investment objective.
1
<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 3.
PERCENT OF THE WORLD'S MARKET CAPITALIZATIONS
[PIE CHART GRAPHIC OMITTED]
Pie Chart Data shows: 49.3% Based in the U.S.
50.7% Based outside the U.S.
Source: Morgan Stanley Capital International World Index. Data as of 6/30/00,
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 3). The geographic data illustrated below does not include cash and
short-term investments.
[MAP CHART GRAPHIC OMITTED]
Map Chart Data shows:
Canada 5.7%
U.S. 33.9%
Sweden 4.6%
Netherlands 4.0%
UK 7.8%
France 15.1%
Germany 6.3%
Japan 12.5%
Australia 1.8%
Data as of 6/30/00. The Global Fund - Equity Series portfolio is actively
managed and its holdings are subject to change.
2
<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 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 9/30/2000, this report must be
accompanied by Lord Abbett's Performance Quarterly for the most recently
completed calendar quarter.
STATEMENT OF NET ASSETS (UNAUDITED)
Equity Series June 30, 2000
<TABLE>
<CAPTION>
Investments Currency Shares U.S. $ Value
====================================================================================================================================
Long-Term Investments in Securities 91.75%
====================================================================================================================================
Foreign 57.89 %
====================================================================================================================================
<S> <C> <C>
Australia 1.82% *Novogen Ltd.- Biotechnology company specializing in
plant sterol-based OTC and eventually ethical
pharmaceutical products AUD 600,000 $ 1,433,640
-------------------------------------------------------------------------------------------------------------------------===========
Canada 5.76% *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 CAD 50,000 4,528,864
--------------------------------------------------------------------------------------------------------------------------==========
France 15.14% Alcatel-Develops, produces and distributes cables and offers
telecommunications services EUR 75,000 4,918,061
Axa-One of Europe's largest financial organizations EUR 13,000 2,047,403
Cap Gemini SA-Offers computer consulting services EUR 8,000 1,408,842
Sanofi-Synthelabo SA-Manufactures health care products
and medical and surgical equipment EUR 30,000 1,428,887
Suez Lyonnaise des Eaux-Water and business services group EUR 10,000 1,751,507
Vivendi SA-Industrial services group EUR 4,000 352,974
Total 11,907,674
--------------------------------------------------------------------------------------------------------------------------==========
Germany 6.29% SAP AG-World's fourth-largest software firm,
dominating the global market
for relational database and software tools EUR 15,000 2,240,689
Siemens AG-Manufactures a wide range of industrial
and consumer electrical products EUR 18,000 2,706,007
Total 4,946,696
--------------------------------------------------------------------------------------------------------------------------==========
Japan 12.47% Canon Inc.- Manufacturer of business machines,
cameras and optical products JPY 16,000 795,892
Hitachi Ltd.-One of Japan's major manufacturers of
communications and electronic equipment, heavy electronic
and industrial machinery, and consumer electronics JPY 68,000 980,169
Ito-Yokado Co., Ltd.-Diversified retailing operations JPY 12,000 721,278
Matsushita Electric Industrial Co. Ltd.-One of the
world's largest manufacturers of electric and
electronic products JPY 23,000 595,882
Mitsubishi Electric Corp.- Develops, manufactures and
markets electronic and electric equipment JPY 181,000 1,957,587
Nippon Telephone & Telegraph Corp.-Holding company
of one of Japan's largest telecommunications groups JPY 65 863,442
Secom Co., Ltd.-Leading security service provider in Japan JPY 12,000 876,160
Shiseido Co., Ltd.-One of Japan's leading cosmetic manufacturers JPY 25,000 386,264
Sony Corp.-One of Japan's leading consumer
electronics and entertainment companies JPY 8,000 746,149
Taisho Pharmaceuticals Co., Ltd.-One of the largest
OTC drug manufacturers in Japan JPY 13,000 465,400
The Kansai Electric Power Co.-Electricity distributor
that generates electricity from water, steam, thermal,
nuclear and liquefied natural gas power JPY 52,400 936,975
The Tokyo Electric Power Co.-One of Japan's largest
electric power suppliers JPY 20,000 487,070
Total 9,812,268
-------------------------------------------------------------------------------------------==========
3
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Equity Series June 30, 2000
Investments Currency Shares U.S. $ Value
====================================================================================================================================
Netherlands 3.99% Elsevier NV-A holding company with a 50% interest
in Reed Elsevier plc, an international publishing
and information provider EUR 100,000 $ 1,211,260
Koninklijke Numico NV-Develops, manufactures and markets
nutritional products EUR 40,587 1,925,392
Total 3,136,652
--------------------------------------------------------------------------------------------------------------------------==========
Sweden 4.62% LM Ericsson AB B Shares - Develops and produces advanced
systems and products for wired and mobile communications SEK 184,000 3,637,889
--------------------------------------------------------------------------------------------------------------------------==========
United Kingdom 7.80% BAE Systems plc - Provides air, naval and land systems to
customers in some 72 countries GBP 64,318 400,851
BAE Systems plc 7.45% due 11/30/2003-Provides air, naval
and land systems to customers in some 72 countries GBP 20,314 30,512
Jarvis plc-Specialist engineering and service company
focused on the installation and maintenance
of related track and signals GBP 250,000 680,715
Marconi plc-An international company which specializes
in the communications marketplace GBP 150,289 1,955,142
*NXT plc-Makes high-quality loudspeakers and has
developed the first commercial flat panel speaker GBP 120,000 1,869,697
Pilkington plc-Manufactures and distributes glass for
the building and automotive markets GBP 845,044 1,201,600
SmithKline Beecham plc - United Kingdom-based
pharmaceutical company GBP 79 1,034
Total 6,139,551
------------------------------------------------------------------------------------------===========
Total Investments in Foreign Securities (Cost $31,641,207) 45,543,234
====================================================================================================================================
United States 33.86%
====================================================================================================================================
American Home Products Corp.-Producer of drugs and
packaged medicine and medical products USD 31,600 1,856,500
American International Group, Inc.-Provides a variety of
insurance-related services in the United States and overseas USD 6,400 752,000
BellSouth Corp.-Regional telephone company USD 18,800 801,350
Cardinal Health, Inc.-Provides complementary products
and services to healthcare providers and manufacturers USD 25,000 1,850,000
*Cisco Systems, Inc.-Manufacturer of computer network products USD 23,600 1,500,075
Computer Associates International, Inc.-Designs,
develops, markets, licenses and supports standarized
computer software products USD 15,800 808,763
*Concord EFS, Inc.-Provides electronic transaction
authorization, processing, settlement, and funds
transfer services across the United States USD 32,400 842,400
Devon Energy Corp.-An independent energy company
involved in oil and gas property acquisition,
exploration and production USD 13,600 764,150
*Electronics for Imaging, Inc.-Develops technologies
that enable digital color printing over computer networks USD 6,700 169,594
Eli Lilly & Co.-A global, research-based pharmaceutical company USD 20,000 1,997,500
Exxon Mobil Corp.-World's largest integrated oil company USD 13,600 1,067,600
General Electric Co.-Leading manufacturer of electrical products,
appliances and aircraft engines USD 30,000 1,590,000
H.J. Heinz Co.-Domestic packaged foods producer USD 15,000 656,250
Intel Corp.-Leading producer of semi-conductor processing circuits USD 19,800 2,647,013
*Microsoft Corp.-Develops, manufactures, licenses, sells
and supports software products USD 12,600 1,008,000
Philip Morris Companies, Inc. - Leading tobacco company USD 15,000 398,438
SBC Communications, Inc. - Regional telephone monopoly USD 40,700 1,760,275
Schlumberger Ltd.- Provider of oilfield services USD 9,300 694,013
Sonoco Products Co.-A leading U.S. producer of specialty
paper and plastic packaging components USD 50,000 1,028,125
State Street Corp.- Commercial and investment bank USD 27,100 2,874,294
Time Warner, Inc.- A major entertainment and communications firm USD 14,500 1,102,000
4
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Equity Series June 30, 2000
Investments Currency Shares U.S. $ Value
====================================================================================================================================
United Parcel Service, Inc. Class B-Delivers packages and documents
throughout the United States and in other countries USD 7,900 $ 466,100
Total Investments in United States Securities (Cost $22,405,052) 26,634,440
====================================================================================================================================
Total Long-Term Investments (Cost $54,046,259) 72,177,674
====================================================================================================================================
Short-Term Investments 7.33% Principal Amount
====================================================================================================================================
American General Corp. 6.85% due 7/3/2000 USD 2,850,000 2,850,000
Associates Corp. NA 6.95% due 7/3/2000 USD 2,920,000 2,920,000
Total Short-Term Investments in Securities (Cost $5,770,000) 5,770,000
----------------------------------------------------------------------------------------------------
Total Investments 99.08% (Cost $59,816,259) 77,947,674
====================================================================================================================================
Other Assets, Less Liabilities .92%
Cash 69,297
====================================================================================================================================
Receivables for: Securities sold 7,190,161
Dividends 122,761
Capital shares sold 49,411
Interest 1,934
Total Other Assets 7,433,564
------------------------------------------------------------------------------------------------------------------------------------
Payables for: Securities purchased 6,519,666
Capital shares reacquired 80,038
Other 112,959
Total Liabilities 6,712,663
-----------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 720,901
====================================================================================================================================
Net Assets 100.00% $78,668,575
====================================================================================================================================
Class A Shares-Net asset value ($70,008,055 /
4,486,308 shares outstanding) $15.60
Maximum offering price (net asset value plus
sales charge of 5.75% of the offering price) $16.55
Class B Shares-Net asset value ($5,611,147 / 366,854 shares outstanding) $15.30
Class C Shares-Net asset value ($3,049,373 / 198,906 shares outstanding) $15.33
*Non-income producing security.
See Notes to Financial Statements.
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP British Pound
JPY Japanese Yen
SEK Swedish Krona
5
</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 3.
A COMPARISON OF 10-YEAR U.S. AND GLOBAL GOVERNMENT BONDS, AFTER CURRENCY
TRANSLATIONS
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
(as of 6/30/00)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasuries(1) 15.20% 7.21% 10.63% (3.35%) 18.45% 2.61% 9.62% 12.76% (8.25%) 7.43%
Government Bond Index(2) 15.44% 4.55% 12.27% 1.28% 19.31% 4.40% 1.40% 15.31% (5.08%) 7.69%
</TABLE>
Past performance is no indication of future results.
All figures indicate percentage total returns in U.S. dollars; ( ) signify
negative return; all periods ending 12/31, except where indicated.
(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>
12/31/99 As of 6/30/00 12/31/99 As of 6/30/00
<S> <C> <C> <C> <C>
United States 6.43% 6.03% Italy 5.57% 5.59%
Australia 6.96% 6.16% Japan 1.65% 1.75%
Canada 6.25% 5.86% New Zealand 7.29% 6.78%
France 5.47% 5.38% South Africa 13.66% 14.20%
Germany 5.35% 5.22% Sweden 5.70% 5.27%
Greece 6.45% 6.09% United Kingdom 5.48% 5.17%
</TABLE>
Past performance is no indication of 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: Bloomberg, Inc. (as of June 30, 2000).
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 Statement of Net Assets on
page 7). The geographic data illustrated below does not include cash and
short-term investments.
HIGH-QUALITY
PORTFOLIO HOLDINGS: MAP GRAPHIC OMITTED
AAA 72.6%
AA 23.8%
A 2.2%
The MAP GRAPHIC contains the following data:
Canada 2.2% Sweden 2.5% Japan 13.2%
U.S. 32.3% Denmark 1.2% Australia 0.5%
Netherlands 2.8% New Zealand 0.6%
U.K. 6.8%
France 7.3%
Germany 13.4%
Spain 3.2%
Italy 6.5%
Greece 2.1%
Turkey 1.4%
Data as of 6/30/00. The Global Fund - Income Series' portfolio is actively
managed and its holdings are subject to change.
6
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Income Series June 30, 2000
<TABLE>
<CAPTION>
Principal
Amount In
Rating: S&P Local Currency
Investments or Moody's (000) U.S. $ Value
====================================================================================================================================
Long-Term Investments in Securities 96.08%
====================================================================================================================================
Foreign 63.74%
====================================================================================================================================
<S> <C> <C>
Australia .53% Australian Government 71/2% due 7/15/2005 AAA AUD 640 $ 406,152
-------------------------------------------------------------------------------------------------------------------------==========-
Canada 2.23% Government of Canada 9% due 6/1/2025 AAA CAD 1,800 1,707,287
-------------------------------------------------------------------------------------------------------------------------==========-
Denmark 1.23% Kingdom of Denmark 8% due 11/15/2001 AAA DKK 7,170 940,669
France 7.32% Government of France 51/2% due 10/25/2007 AAA EUR 5,817 5,618,954
-------------------------------------------------------------------------------------------------------------------------==========-
Germany 13.37% Allgemeine Hypobank AG 51/2% due 7/13/2010 AAA EUR 3,000 2,790,194
Deutschland Republic 53/8% due 1/4/2010 AAA EUR 2,729 2,633,484
Deutschland Republic 73/8% due 1/3/2005 AAA EUR 4,661 4,838,181
Total 10,261,859
-------------------------------------------------------------------------------------------------------------------------==========-
Greece 2.09% Hellenic Republic 8.60% due 3/26/2008 A GRD 493,000 1,604,727
-------------------------------------------------------------------------------------------------------------------------==========-
Italy 6.51% Republic of Italy (BTPS) 5% due 5/1/2008 AA EUR 5,400 4,999,156
Japan 13.17% Republic of Italy 3.80% due 3/27/2008* AA JPY 925,000 10,107,141
Netherlands 2.78% Netherlands Government 51/4% due 7/15/2008 AAA EUR 2,250 2,136,887
-
New Zealand .60% New Zealand Government 8% due 4/15/2004 AAA NZD 950 462,442
Spain 3.20% Spanish Government 6% due 1/31/2008 AA+ EUR 2,500 2,454,139
Sweden 2.55% Swedish Government 101/4% due 5/5/2003 AAA SEK 15,300 1,958,179
Turkey 1.3 9 % Republic of Turkey 123/8% due 6/15/2009 B+ USD 1,000 1,062,500
-------------------------------------------------------------------------------------------------------------------------==========-
United Kingdom 6.77% United Kingdom Treasury 6% due 12/7/2028 AAA GBP 805 1,511,682
United Kingdom Treasury 10% due 9/8/2003 AAA GBP 2,190 3,687,161
Total 5,198,843
-------------------------------------------------------------------------------------------------------------------------==========-
Total Investments in Foreign Securities (Cost $56,118,654) 48,918,935
United States 32.34%
-------------------------------------------------------------------------------------------------------------------------==========-
Commercial Mortgage Asset Trust 7.55% due 1/17/2010 AAA USD 2,000 1,998,910
Federal Home Loan Mortgage Corp. 5% due 1/15/2004 AAA USD 9,700 9,086,184
Federal National Mortgage Association 65/8% due 9/15/2009+ AAA USD 12,100 11,689,689
U.S. Treasury Bond 61/8% due 11/15/2027+ AAA USD 1,000 997,810
U.S. Treasury Bond 61/4% due 5/15/2030+ AAA USD 1,000 1,049,220
Total Investments in United States Securities (Cost $24,709,207) 24,821,813
-------------------------------------------------------------------------------------------------------------------------==========-
Total Long-Term Investments (Cost $80,827,861) 73,740,748
-------------------------------------------------------------------------------------------------------------------------==========-
Short-Term Investments 5.86%
-------------------------------------------------------------------------------------------------------------------------==========-
American General Corp. 6.85% due 7/3/2000 USD 1,040 1,040,000
Associates Corp. NA 6.95% due 7/3/2000 USD 3,460 3,460,000
Total Short-Term Investments (Cost $4,500,000) 4,500,000
------------------------------------------------------------------------------------------==========-
Total Investments 101.94% (Cost $85,327,861) 78,240,748
------------------------------------------------------------------------------------------==========-
7
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Income Series June 30, 2000
====================================================================================================================================
Other Assets, Less Liabilities (1.94)%
====================================================================================================================================
Other (See Note 5) $ 3,197,498
-----------------------------------------------------------------------------------------------------------------------------------
Cash 122,285
-----------------------------------------------------------------------------------------------------------------------------------
Receivables for: Securities sold 37,729,209
Interest 1,807,349
Closed foreign currency contracts 498,279
Capital shares sold 5,374
Total Other Assets 43,359,994
-----------------------------------------------------------------------------------------------------------------------------------
Payables for: Securities purchased 40,754,273
- -
Collateral on securities loaned 3,197,498
Dividends 416,122
Unrealized depreciation on foreign currency contracts 149,882
Capital shares reacquired 75,672
Other 255,085
Total Liabilities 44,848,532
------------------------------------------------------------------------------------------==========-
Total Other Assets, Less Liabilities (1,488,538)
====================================================================================================================================
Net Assets 100.00% $76,752,210
====================================================================================================================================
Class A Shares-Net asset value ($72,989,397 / 10,733,300 shares outstanding)
$6.80
Maximum offering price (net asset value plus sales charge of 4.75%
of the offering price) $7.14
Class B Shares-Net asset value ($1,407,335 / 206,609 shares outstanding) $6.81
Class C Shares-Net asset value ($2,090,989 / 306,831 shares outstanding) $6.81
Class P Shares-Net asset value ($264,489 / 38,968 shares outstanding) $6.79
*Security priced relative to Japanese yield curve.
+Securities (or a portion of securities) on loan. See Note 5.
See Notes to Financial Statements.
AUD Australian Dollars
CAD Canadian Dollar
DKK Danish Krone
EUR Euro
GBP British Pound
GRD Greek Drachma
JPY Japanese Yen
NZD New Zealand Dollar
SEK Swedish Krona
</TABLE>
8
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended June 30, 2000
------------------------------------------------------------------------------------------------------------------------------------
Investment Income Equity Series Income Series
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Income Dividends $ 451,667 $ -
Interest 165,328 2,694,609
Foreign taxes withheld (17,307) -
Securities lending - 5,442
Total income 599,688 2,700,051
----------------------------------------------------------------------------------------------------------------------
Expenses Management fee 285,788 204,780
12b-1 distribution plan-Class A 121,556 134,232
12b-1 distribution plan-Class B 23,608 7,087
12b-1 distribution plan-Class C 13,608 11,194
12b-1 distribution plan-Class P - 554
Shareholder servicing 186,362 93,039
Reports to shareholders 22,194 17,306
Registration 17,951 24,845
Professional 17,231 21,119
Directors' fees 1,254 1,667
Other 13,705 22,741
Total expenses before reductions 703,257 538,564
----------------------------------------------------------------------------------------------------------------------
Expense reductions (8,973) (26,282)
----------------------------------------------------------------------------------------------------------------------
Net expenses 694,284 512,282
----------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (94,596) 2,187,769
----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
====================================================================================================================================
Net realized gain (loss) from investment and foreign currency transactions 6,188,764 (9,433,531)
------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and foreign currency holdings 2,910,057 5,790,654
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and foreign currency transactions 9,098,821 (3,642,877)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $9,004,225 $(1,455,108)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended June 30, 2000 (unaudited) Year Ended December 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Equity Series Income Series Equity Series Income Series
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations Net investment income (loss) $ (94,596) $ 2,187,769 $ (576,755) $ 6,478,431
Net realized gain (loss)from investment and foreign
currency transactions 6,188,764 (9,433,531) 467,982 (2,764,221)
Net change in unrealized appreciation/depreciation
of investments and foreign currency holdings 2,910,057 5,790,654 7,718,240 (14,856,202)
Net increase (decrease) in net assets resulting
from operations 9,004,225 (1,455,108) 7,609,467 (11,141,992)
------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders from:
Net investment income-Class A - (2,812,355) - (5,200,250)
Net investment income-Class B - (46,055) - (74,071)
Net investment income-Class C - (76,393) - (151,138)
Net investment income-Class P - (8,833) - (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)
Total - (2,943,636) - (6,829,368)
------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 11,952,752 2,922,877 24,020,080 7,708,650
Net asset value of shares issued in reinvestment
of dividends and distributions - 2,103,694 - 4,584,488
Total 11,952,752 5,026,571 24,020,080 12,293,138
------------------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (15,254,567) (14,304,429) (38,756,096) (29,055,276)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets derived from capital
share transactions (3,301,815) (9,277,858) (14,736,016) (16,762,138)
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 5,702,410 (13,676,602) (7,126,549) (34,733,498)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Beginning of period 72,966,165 90,428,812 80,092,714 125,162,310
------------------------------------------------------------------------------------------------------------------------------------
End of period+ $ 78,668,575 $ 76,752,210 $ 72,966,165 $ 90,428,812
====================================================================================================================================
</TABLE>
+ Including (accumulated net investment loss) and undistributed net
investment income of $(792,456) and $5,647, respectively, as of June
30, 2000, and $(697,860) and $761,514, respectively, as of December
31, 1999.
See Notes to Financial Statements.
10
<PAGE>
FINANCIAL HIGHLIGHTS
Equity Series
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
June 30, 2000 Year Ended December 31,
Per Share Operating Performance: (unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.82 $12.29 $12.08 $12.55 $11.96 $11.55
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) (.01)(b) (.09)(b) .01(b) .07(b) .07 .16
Net realized and unrealized gain on investments and
foreign currency transactions 1.79 1.62 1.08 .90 .93 .90
Total from investment operations 1.78 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 period $15.60 $13.82 $12.29 $12.08 $12.55 $11.96
------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) 12.96%(d) 12.37% 9.07% 7.99% 8.37% 9.19%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) .89%(d) 1.94% 1.66% 1.51% 1.52% 1.63%
Net investment income (loss) (.10)%(d) (.77)% .06% .57% .54% 1.31%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares Class C Shares
------------------------------------------------------------------------------------------------------------------------------------
Six
Six Months Months
Ended Ended
June 30, Year Ended 8/1/1996(c) June 30, Year Ended 7/15/1996(c)
Per Share 2000 December 31, to 2000 December 31, to
Operating Performance: (unaudited) 1999 1998 1997 12/31/1996 (unaudited) 1999 1998 1997 12/31/1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $13.60 $12.18 $12.03 $12.53 $12.30 $13.63 $12.20 $12.05 $12.54 $12.31
------------------------------------------------------------------------------------------------------------------------------------
Income from
investment operations
Net investment loss (.05)(b) (.17)(b) (.09)(b) (.02)(b) (.01) (.06)(b) (.17)(b) (.09)(b) (.01)(b) -
Net realized and
unrealized
gain on investments
and foreign currency
transactions 1.75 1.59 1.09 .89 .58 1.76 1.60 1.09 .90 .57
Total from investment
operations 1.70 1.42 1.00 .87 .57 1.70 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 period $15.30 $13.60 $12.18 $12.03 $12.53 $15.33 $13.63 $12.20 $12.05 $12.54
------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) 12.67%(d) 11.49% 8.37% 7.19% 4.56%(d) 12.64%(d) 11.56% 8.35% 7.34% 4.64%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) 1.20%(d) 2.57% 2.37% 2.23% .83%(d) 1.20%(d) 2.57% 2.37% 2.14% .83%(d)
Net investment loss (.37)%(d) (1.42)% (.70)% (.16)% (.16)%(d) (.38)%(d)(1.44)% (.69)% (.06)% (.11)%(d)
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 2000 Year Ended December 31,
Supplemental Data For All Classes: (unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $78,669 $72,966 $80,093 $80,820 $92,164 $84,731
------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19.47% 78.74% 89.48% 99.05% 81.97% 83.32%
------------------------------------------------------------------------------------------------------------------------------------
</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, 1999 and 2000 include expenses paid through
an expense offset arrangement.
See Notes to Financial Statements.
11
<PAGE>
FINANCIAL HIGHLIGHTS
Income Series
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
June 30, 2000 Year Ended December 31,
Per Share Operating Performance: (unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.16 $8.44 $8.09 $8.34 $8.58 $7.98
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .19(b) .47(b) .55(b) .51(b) .53 .77
Net realized and unrealized gain (loss)
on investments
and foreign currency transactions (.30) (1.26) .30 (.18) (.04) .6138
Total from investment operations (.11) (.79) .85 .33 .49 1.3838
------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (.25) (.39) (.50) (.51) (.61) (.6613)
Distributions from paid-in-capital - (.10) - (.07) - -
Distributions from foreign currency transactions - - - - (.12) (.1225)
Total distributions (.25) (.49) (.50) (.58) (.73) (.7838)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.80 $7.16 $8.44 $8.09 $8.34 $8.58
------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) (1.54)%(d) (9.47)% 10.79% 4.23% 6.12% 17.86%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) .65%(d) 1.24% 1.18% 1.10% 1.04% 1.04%
Net investment income 2.71%(d) 6.08% 6.75% 6.29% 6.52% 7.60%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
June 30, 2000 December 31, 8/1/1996(c)
Per Share Operating Performance: (unaudited) 1999 1998 1997 to 12/31/1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.17 $8.44 $8.09 $8.34 $8.24
------------------------------------------------------------------------------------------------------------------------------------
Income from investment
operations
Net investment income .16(b) .43(b) .49(b) .45(b) .23
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (.30) (1.26) .30 (.18) .22
Total from investment operations (.14) (.83) .79 .27 .45
------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (.22) (.35) (.44) (.46) (.23)
Distributions from paid-in-capital - (.09) - (.06) -
Distributions from foreign currency transactions - - - - (.12)
Total distributions (.22) (.44) (.44) (.52) (.35)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.81 $7.17 $8.44 $8.09 $8.34
------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) (1.75)%(d) (10.11)% 10.03% 3.49% 5.58%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) .97%(d) 1.89% 1.87% 1.78% .73%(d)
Net investment income 2.37%(d) 5.57% 6.01% 5.57% 2.11%(d)
====================================================================================================================================
</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, 1999 and 2000 include expenses paid through
an expense offset arrangement.
See Notes to Financial Statements.
12
<PAGE>
FINANCIAL HIGHLIGHTS
Income Series
<TABLE>
<CAPTION>
Class C Shares Class P Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended Year Ended 7/15/1996(c) Ended 3/4/1999(c)
Ended June 30, 2000 December 31, to June 30, 2000 to
Per Share Operating Performance: (unaudited) 1999 1998 1997 12/31/1996 (unaudited) 12/31/1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.17 $8.44 $8.09 $8.34 $8.14 $7.16 $7.91
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .16(b) .43(b) .50(b) .45(b) .21 .18(b) .42(b)
Net realized and unrealized gain (loss)
on investments and
foreign currency transactions (.30) (1.26) .29 (.18) .37 (.31) (.85)
Total from investment operations (.14) (.83) .79 .27 .58 (.13) (.43)
------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (.22) (.35) (.44) (.46) (.26) (.24) (.25)
Distributions from paid-in-capital - (.09) - (.06) - - (.07)
Distributions from foreign currency
transactions - - - - (.12) - -
Total distributions (.22) (.44) (.44) (.52) (.38) (.24) (.32)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.81 $7.17 $8.44 $8.09 $8.34 $6.79 $7.16
------------------------------------------------------------------------------------------------------------------------------------
Total Return(a) (1.89)%(d) (9.98)% 10.03% 3.48% 7.43%(d) (1.73)%(d) (5.51)%(d)
====================================================================================================================================
Ratios to Average Net Assets:
Expenses(e) .95%(d) 1.88% 1.85% 1.77% .87%(d) .69%(d) 1.25%(d)
Net investment income 2.40%(d) 5.42% 6.08% 5.62% 2.69%(d) 2.64%(d) 5.66%(d)
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 2000 Year Ended December 31,
Supplemental Data For All Classes: (unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $76,752 $90,429 $125,162 $148,785 $202,494 $238,291
====================================================================================================================================
Portfolio turnover rate 209.30% 314.07% 359.13% 616.63% 621.79% 1,073.69%
====================================================================================================================================
</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, 1999 and 2000 include expenses paid through
an expense offset arrangement.
See Notes to Financial Statements.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 accounting principles
generally accepted in the United States of America which permit 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 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 Oper ations.
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.
At June 30, 2000, the management fees payable were $48,318 for Equity Series and
$40,642 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 daily net
14
<PAGE>
Notes to Financial Statements (unaudited)
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 June 30, 2000, the 12b-1 fees payable with respect to all classes of Series
aggregated $41,741 for Equity Series and $42,614 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 $14,070 $78,624
--------------------------------------------------------------------------------
Income 1,292 6,643
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 June 30,
2000, accumulated net realized capital gain (loss) for financial reporting
purposes ag gre gated $6,656,746 and $(36,096,838), 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 accounting
principles generally accepted in the United States of America.
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 June 30,
2000, 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 June 30, 2000, paid-in-cap ital amounted to
$54,672,870 for Equity Series and $120,080,396 for Income Series. Transactions
in shares of capital stock were as follows:
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
Equity Series Income Series
Class A Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 633,968 $ 9,441,374 367,492 $ 2,530,991
Shares issued to share-
holders in reinvestment of
dividends and distributions - - 293,294 2,009,898
Total 633,968 9,441,374 660,786 4,540,889
--------------------------------------------------------------------------------
Shares reacquired (992,870) (14,631,824) (1,943,396) (13,382,842)
Decrease (358,902) $ (5,190,450) (1,282,610) $ (8,841,953)
--------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
Equity Series Income Series
Class B Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 119,528 $1,781,841 19,651 $ 134,880\
Shares issued to share-
holders in reinvestment of
dividends and distributions - - 5,617 38,494
Total 119,528 1,781,841 25,268 173,374
--------------------------------------------------------------------------------
Shares reacquired (23,781) (348,370) (29,066) (200,295)
Increase (decrease) 95,747 $1,433,471 (3,798) $ (26,921)
--------------------------------------------------------------------------------
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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
--------------------------------------------------------------------------------
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
Equity Series Income Series
Class C Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 48,798 $ 729,537 4,632 $ 31,920
Shares issued to share-
holders in reinvestment of
dividends and distributions - - 7,623 52,395
Total 48,798 729,537 12,255 84,315
--------------------------------------------------------------------------------
Shares reacquired (19,090) (274,373) (81,498) (560,005)
Increase (decrease) 29,708 $ 455,164 (69,243) $(475,690)
--------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
Income Series
Class P Shares Amount
--------------------------------------------------------------------------------
Sales of shares 32,608 $ 225,086
Shares issued to shareholders
in reinvestment of dividends 422 2,907
Total 33,030 227,993
--------------------------------------------------------------------------------
Shares reacquired (23,426) (161,287)
Increase 9,604 $ 66,706
--------------------------------------------------------------------------------
March 4, 1999
(Commencement
of Offering
Class P Shares)
to December 31, 1999
--------------------------------------------------------------------------------
Income Series
Class P Shares Amount
--------------------------------------------------------------------------------
Sales of shares 39,096 $303,139
Shares issued to shareholders
in reinvestment of dividends
and distributions 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 June 30,
2000, the value of securities loaned for Income Series was $3,127,848. These
loans were collateralized by cash of $3,197,498. Interest income earned on the
securities loaned is accounted for in the same manner as other interest income.
During the six months ended June 30, 2000, purchases and sales of investment
securities, exclusive of short-term investments and foreign currency
transactions, were $13,713,808 and $20,854,288, respectively, for the Equity
Series and $185,032,982 and $217,387,746, respectively, for the Income Series.
As of June 30, 2000, net unrealized appreciation (depreciation), gross
unrealized appreciation and gross unrealized depre ciation of investments based
on cost for federal income tax purposes were as follows:
Net Unrealized
Appreciation Unrealized Unrealized
Series (Depreciation) Appreciation Depreciation
--------------------------------------------------------------------------------
Equity $ 18,131,415 $21,281,407 $(3,149,992)
Income (7,087,113) 418,627 (7,505,740)
--------------------------------------------------------------------------------
The cost of investments for federal income tax purposes is substantially the
same as that used for financial reporting purposes.
At June 30, 2000, the Income Series had outstanding forward currency contracts
to buy foreign currencies as follows:
Foreign Value at Current Unrealized
Currency Settlement Date Value Depreciation
Contracts Type Local Currency U.S.Dollars U.S. Dollars U.S. Dollars
--------------------------------------------------------------------------------
Japanese Yen,
expiring 10/6/00 Buy 512,500,000 $ 5,234,994 $ 5,096,085 $(138,909)
--------------------------------------------------------------------------------
Japanese Yen,
expiring 2/23/01 Buy 579,500,000 5,714,539 5,703,566 (10,973)
Total $10,949,533 $10,799,651 $(149,882)
--------------------------------------------------------------------------------
At June 30, 2000, there was a net receivable under a master netting agreement
relating to closed foreign currency contracts in the amount of $498,279.
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, 2000 under a deferred compensation plan, were approximately $57,245.
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.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 0.09% per annum. There
were no loans outstanding pursuant to this Facility at June 30, 2000, 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
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
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 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
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
GROWTH
---------------------------------------------------------------------------------------------------------------------------
INCOME
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS GROWTH & BALANCED FUND INCOME FUNDS TAX-FREE MONEY
GROWTH FUNDS INCOME FUNDS INCOME FUNDS MARKET FUND
Large-Cap Balanced World Bond-
Growth Growth Fund Research Fund - Series** Debenture Series o National U. S. Government
Opportunities Large-Cap o California Securities Money
Fund Research Fund- Series Global Fund - o Connecticut Market Fund + ++
Small-Cap Value Income Series o Florida
Series Growth & o Georgia
Income Series High Yield Fund o Hawaii
Alpha Series* o Michigan
Affiliated Fund Bond-Debenture o Minnesota
International Fund o Missouri
Developing Series o New Jersey
Growth Fund Limited Duration o New York
U. S. Government o Pennsylvania
Lord Abbett Mid-Cap Securities Series+ o Texas
Developing Value Fund o Washington
Growth Fund U. S. Government
is closed to Global Fund- Securities Series+
new investors. Equity Series
</TABLE>
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:
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-3-600
(8/00)
