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LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio
Mid-Cap Value Portfolio
International Portfolio
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED JUNE 30, 2000
[LOGO]
<PAGE>
[Blank Page]
<PAGE>
REPORT TO SHAREHOLDERS
For the Six Months Ended June 30, 2000
[PHOTO OF
ROBERT S. DOW]
/s/ Robert S. Dow
Robert S. Dow
Chairman
JULY 10, 2000
"Our relatively large
exposure to energy com-
panies paid off well
throughout the period,
as rising oil prices helped
boost the price of many of
our stocks."
The Lord Abbett Series Fund -- Growth and Income Portfolio completed the first
six months of its fiscal year on June 30, 2000 with aggregate net assets of
$52.8 million.
A VOLATILE START TO THE NEW MILLENNIUM
Throughout 1999 and the opening months of this year, many investors were caught
up in a "momentum market" whereby they bought stocks simply because the price
was going up. Investors all but ignored the sustainability of corporate
earnings, valuations and the implications of rising interest rates. The
performance variance between stocks of "old economy" and "new economy" companies
became apparent, and investors poured money into the small number of stocks that
provided positive returns in the recent past. Excessively high stock prices
relative to company fundamentals made it increasingly difficult to find value in
many "new economy" companies, especially those involved with technology.
This pattern began to change in late March as investors seemed to wake up to the
risks of "momentum" investing, and value investing once again returned to favor.
However, uncertainty proliferated with respect to the ultimate economic and
market impact of the Federal Reserve's interest rate initiatives. Investors
reacted abruptly to economic and corporate earnings announcements as well as
consumer-oriented indicators (retail sales, housing and investor confidence),
many of which signaled an economic slowdown. Hope for a "soft landing" emerged,
and momentum-oriented sectors, such as technology, returned to favor in June.
Nevertheless, a renewed sensitivity to risk and wariness about fundamentals
challenged many investors' decisions.
HOW WE POSITIONED YOUR PORTFOLIO*
At the onset of the year, our technology company stocks continued to be the
shining stars in the portfolio. However, while we enjoyed the performance of
many of these stocks, we had to pay close attention to accelerating valuations
and, in some cases, sell off positions when stock prices appreciated to where we
believed they were fully-valued. By the beginning of the second quarter, we had
already significantly reduced the portfolio's weighting in technology, but our
remaining exposure hurt performance during the market's late period tech
selloff. We also eliminated several other "new economy" stocks in the
telecommunications and media sectors due to high valuations. In exchange, we
made select investments in undervalued "old economy" stocks in basic industries,
utilities and financial services (especially insurance stocks) where we saw more
intrinsic value.
Our relatively large exposure to energy companies paid off well throughout the
period, as rising oil prices helped boost the price of many of our stocks.
However, utility stocks became the new star performers, as a development in the
utilities sector involving industry consolidation and the convergence of
electric and gas power helped to benefit several of our holdings. Our careful
stock picking and general overweighting in stocks of consumer non-cyclical
companies, particularly health-care companies, also significantly buoyed
performance during the period.
Our move to basic industries (paper and metals) proved to be a bit premature and
worked against our performance for the period. Many of our holdings in other
industries also held back overall performance, especially the stocks of
companies in interest rate-sensitive sectors, such as consumer cyclicals
(entertainment and retail), capital goods (industrial equipment and electronics)
and transportation. Stocks of financial services companies also underperformed,
but since the prospect of several Fed rate increases was already priced into
their stocks, they fared better than they typically have during periods of
interest rate anxiety.
OUR OUTLOOK
We do not anticipate a change in our investment strategy for the short term.
However, in the longer term we may look to rebuild some of our consumer cyclical
positions (retail, autos, etc.), possibly accompanied by a reduction in our
energy positions when changes in economic and market conditions portend a likely
reduction in oil prices. We will also look to rebuild positions in some of our
"old favorites" in the technology sector as valuations and fundamentals permit.
Thank you for your continued confidence in Lord Abbett Series Fund.
We look forward to helping you achieve your financial goals in the future.
* Past performance does not guarantee future results. The portfolio is actively
managed and is subject to change.
-------------------------------------------------------------------------------
| DALBAR Lord, Abbett & Co. is proud to |
| HONORS COMMITMENT TO announce we have received a DALBAR |
| INVESTORS award for providing consistently |
| 1999 good service to shareholders, the |
| 1999 Key Honors 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. |
-------------------------------------------------------------------------------
1
<PAGE>
LORD ABBETT SERIES FUND - GROWTH & INCOME PORTFOLIO
Serving Insurance Companies and Their Clients Since 1989
Consistent Management - W. Thomas Hudson, Partner of Lord Abbett, heads the
Series Fund -- Growth & Income Portfolio management team. Tom has been the lead
manager of the Fund since it was established in 1989.
Consistent Results - Average Annual Return of 15.2%(1) - Lower Volatility - No
Down Years(2)
Growth of $10,000: 12/11/89 - 6/30/00
Average Annual Returns(1)
[LINE CHART GRAPHIC OMITTED]
<TABLE>
<CAPTION>
12/89 12/90 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 6/30/00
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Value at Year End(3) $10,070 $10,290 $13,069 $15,109 $17,347 $17,826 $23,141 $27,654 $34,361 $38,873 $45,387 $44,464
Total Returns 0.7% 2.2% 27.0% 15.6% 14.8% 2.8% 29.8% 19.5% 24.4% 12.9% 16.7% -2.0%
</TABLE>
(1) Reflects the percent change in net asset value for the period 12/11/89
(inception) through 6/30/00 and includes the reinvestment of all
distributions.
(2) For the period 12/11/89 (inception) through 6/30/00, Lord Abbett Series
Fund - Growth and Income Portfolio had no complete calendar years of
negative performance. The 101 1/42-year period above was a period of
generally good performance for the equity markets. During that period, the
S&P 500 Index annualized return was 17.21% in the aggregate, with dividends
reinvested.
(3) Value at year end figure represents total account value, assuming the
reinvestment of dividends and capital gains distributions.
THE PORTFOLIO AND PERFORMANCE
The Fund has performed well over time relative to the Morningstar Large Value
Funds Category Average.
[BAR CHART GRAPHIC OMITTED]
The Portfolio(4)
3 Years - 11.3%
5 Years - 16.3%
10 Years - 15.5%
Morningstar Large Value Funds
Category Average(5)
3 Years - 8.7%
5 Years - 15.2%
10 Years - 13.4%
(4) Average annual total returns are at NAV that include the reinvestment of
dividends and the effect of deducting an investment option's expenses, but
do not include mortality and expense charges, any policy administrative
charges or any deferred sales charges specific to any variable insurance
product. Total returns would be reduced with the inclusion of variable
insurance contract charges.
(5) Source: Morningstar, Inc.
2
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Growth & Income Portfolio June 30, 2000
<TABLE>
<CAPTION>
Investments Shares Value
====================================================================================================================================
Common Stocks 90.79%
====================================================================================================================================
<S> <C> <C>
Aerospace/Defense 2.37% Boeing Co. 9,000 $ 376,313
TRW, Inc. 12,000 520,500
United Technologies Corp. 6,000 353,250
Total 1,250,063
----------------------------------------------------------------------------------------------------------------------==============
Aluminum 1.81% Alcoa, Inc. 33,000 957,000
----------------------------------------------------------------------------------------------------------------------==============
Automotive .44% General Motors Corp. 4,000 232,250
----------------------------------------------------------------------------------------------------------------------==============
Banks: Money Center 1.75% Chase Manhattan Corp. 20,000 921,250
----------------------------------------------------------------------------------------------------------------------==============
Banks: Regional 4.17% Bank One Corp. 15,000 398,438
Fleet Boston Financial Corp. 28,000 952,000
Wells Fargo & Co. 22,000 852,500
Total 2,202,938
----------------------------------------------------------------------------------------------------------------------==============
Chemicals 2.93% Dow Chemical Co. 33,000 996,188
Rohm & Haas Co. 16,000 552,000
Total 1,548,188
----------------------------------------------------------------------------------------------------------------------==============
Communications Services .10% *General Motors Corp. (Hughes Electronics) 594 52,124
----------------------------------------------------------------------------------------------------------------------==============
Communications Technology .17% *QUALCOMM, Inc. 1,500 90,000
----------------------------------------------------------------------------------------------------------------------==============
Computer Services 1.74% *Computer Sciences Corp. 5,000 373,438
First Data Corp. 11,000 545,875
Total 919,313
----------------------------------------------------------------------------------------------------------------------==============
Computer: Hardware 4.30% *Apple Computer, Inc. 10,000 523,750
Compaq Computer Corp. 24,700 631,394
International Business Machines Corp. 6,000 657,375
*Sun Microsystems, Inc. 5,000 454,687
Total 2,267,206
----------------------------------------------------------------------------------------------------------------------==============
Computer: Software 2.87% *Cadence Design Systems, Inc. 33,200 676,450
*Oracle Corp. 10,000 840,625
Total 1,517,075
----------------------------------------------------------------------------------------------------------------------==============
Conglomerates 3.78% Honeywell International, Inc. 25,000 842,187
Minnesota Mining & Manufacturing Co. 14,000 1,155,000
Total 1,997,187
----------------------------------------------------------------------------------------------------------------------==============
Consumer Products .76% Avon Products, Inc. 9,000 400,500
----------------------------------------------------------------------------------------------------------------------==============
Drugs 4.15% American Home Products Corp. 25,000 1,468,750
Pharmacia Corp. 14,000 723,625
Total 2,192,375
----------------------------------------------------------------------------------------------------------------------==============
Electric Power 7.62% Dominion Resources, Inc. 25,000 1,071,875
Duke Energy Corp. 17,000 958,375
FirstEnergy Corp. 34,000 794,750
Reliant Energy, Inc. 14,400 425,700
Unicom Corp. 20,000 773,750
Total 4,024,450
----------------------------------------------------------------------------------------------------------------------==============
Electronics:
Semiconductor 1.30% Texas Instruments, Inc. 10,000 686,875
----------------------------------------------------------------------------------------------------------------------==============
Energy Equipment & Services Schlumberger Ltd. 15,000 1,119,375
2.73% Transocean Sedco Forex, Inc. 6,000 320,625
Total 1,440,000
----------------------------------------------------------------------------------------------------------------------==============
3
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Growth & Income Portfolio June 30, 2000
Investments Shares Value
====================================================================================================================================
Entertainment 1.54% *Viacom, Inc. 11,935 $ 813,817
----------------------------------------------------------------------------------------------------------------------==============
Financial Services 1.34% Morgan Stanley Dean Witter & Co. 8,500 707,625
----------------------------------------------------------------------------------------------------------------------==============
Financial: Miscellaneous 1.58% Fannie Mae 16,000 835,000
----------------------------------------------------------------------------------------------------------------------==============
Food 1.30% Archer-Daniels-Midland Co. 70,000 686,875
----------------------------------------------------------------------------------------------------------------------==============
Health Care Services 4.42% CIGNA Corp. 8,000 748,000
HCA-The Healthcare Co. 24,000 729,000
UnitedHealth Group, Inc. 10,000 857,500
Total 2,334,500
----------------------------------------------------------------------------------------------------------------------==============
Hospital Supplies .52% Baxter International, Inc. 3,900 274,219
----------------------------------------------------------------------------------------------------------------------==============
Household Equipment/Products
1.04% Black & Decker Corp. 14,000 550,375
----------------------------------------------------------------------------------------------------------------------==============
Insurance 11.39% ACE Ltd. 45,000 1,260,000
AON Corp. 32,000 994,000
American General Corp. 20,000 1,220,000
Jefferson-Pilot Corp. 15,000 846,562
*MetLife, Inc. 56,000 1,179,500
St. Paul Companies, Inc. 15,000 511,875
Total 6,011,937
----------------------------------------------------------------------------------------------------------------------==============
Machinery: Agriculture 1.75% Deere & Co. 25,000 925,000
----------------------------------------------------------------------------------------------------------------------==============
Natural Gas 2.31% Coastal Corp. 20,000 1,217,500
----------------------------------------------------------------------------------------------------------------------==============
Oil 1.08% Tosco Corp. 20,000 566,250
----------------------------------------------------------------------------------------------------------------------==============
Oil: Integrated International BP Amoco plc ADR 23,000 1,300,938
6.59% Exxon Mobil Corp. 15,000 1,177,500
Total Fina SA ADR 13,000 998,562
Total 3,477,000
----------------------------------------------------------------------------------------------------------------------==============
Paper and Forest
Products 1.70% Bowater, Inc. 17,000 750,125
International Paper Co. 4,951 147,605
Total 897,730
----------------------------------------------------------------------------------------------------------------------==============
Publishing 1.67% Dow Jones & Co., Inc. 12,000 879,000
----------------------------------------------------------------------------------------------------------------------==============
Retail 1.53% *Consolidated Stores Corp. 25,000 300,000
*Federated Department Stores, Inc. 15,000 506,250
Total 806,250
----------------------------------------------------------------------------------------------------------------------==============
Steel .63% USX-U.S. Steel Group, Inc. 18,000 334,125
----------------------------------------------------------------------------------------------------------------------==============
Supermarkets 1.37% *Safeway, Inc. 16,000 722,000
----------------------------------------------------------------------------------------------------------------------==============
Telecommunications 5.42% AT&T Corp. 10,000 316,250
Alltel Corp. 10,000 619,375
Bell Atlantic Corp. 15,000 762,188
SBC Communications, Inc. 11,000 475,750
*Worldcom, Inc. 15,000 688,125
Total 2,861,688
----------------------------------------------------------------------------------------------------------------------==============
Transportation: Miscellaneous
.62% United Parcel Service, Inc. 5,500 324,500
----------------------------------------------------------------------------------------------------------------------==============
Total Common Stocks (Cost $45,081,763) 47,924,185
----------------------------------------------------------------------------------------------------------------------==============
4
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Growth & Income Portfolio June 30, 2000
Investments Shares Value
====================================================================================================================================
Convertible-Preferred Stock 1.62%
====================================================================================================================================
Communications Services .70% Houston Industries Inc. Conv. Pfd. 7% into Time Warner $ 369,750
----------------------------------------------------------------------------------------------------------------------==============
Entertainment .92% Seagram Co. Ltd. Conv. Pfd. 7.50% 483,750
----------------------------------------------------------------------------------------------------------------------==============
Total Convertible-Preferred Stocks (Cost $728,532) 853,500
----------------------------------------------------------------------------------------------------------------------==============
Total Long-Term Investments 92.41% (Cost $45,810,295) 48,777,685
====================================================================================================================================
Short-Term Investments 6.45% Principal Amount
====================================================================================================================================
American General Corp. 6.85% due 7/3/2000 $1,045,000 1,045,000
Associates Corp. NA 6.95% due 7/3/2000 2,360,000 2,360,000
Total Short-Term Investments (Cost $3,405,000) 3,405,000
----------------------------------------------------------------------------------------------------------------------==============
Total Investments 98.86% (Cost $49,215,295) 52,182,685
====================================================================================================================================
Other Assets, Less Liabilities 1.14%
====================================================================================================================================
Cash 98,127
------------------------------------------------------------------------------------------------------------------------------------
Receivables for: Securities sold 3,649,864
Capital stock sold 285,320
Dividends 121,310
Interest 969
Total Other Assets 4,155,590
----------------------------------------------------------------------------------------------------------------------==============
Payables for: Securities purchased 3,533,124
Capital stock reacquired 11,883
Other 7,526
Total Liabilities 3,552,533
----------------------------------------------------------------------------------------------------------------------==============
Total Other Assets, Less Liabilities 603,057
====================================================================================================================================
Net Assets 100.00% Equivalent to $21.71 per share; 2,431,018 shares of $.001
par value capital stock outstanding; 50,000,000 shares authorized) $52,785,742
====================================================================================================================================
*Non-income producing security.
ADR American Depositary Receipt.
See Notes to Financial Statements.
STATEMENT OF NET ASSETS (UNAUDITED)
Mid-Cap Value Portfolio June 30, 2000
Investments Shares Value
====================================================================================================================================
Common Stocks 95.05%
====================================================================================================================================
Air Transportation .92% *AMR Corp. 300 $ 7,931
----------------------------------------------------------------------------------------------------------------------==============
Apparel .28% V.F. Corp. 100 2,381
----------------------------------------------------------------------------------------------------------------------==============
Auto: Replacement Parts 2.77% Genuine Parts Co. 400 8,000
Snap-on, Inc. 600 15,975
Total 23,975
----------------------------------------------------------------------------------------------------------------------==============
Chemicals 1.98% Crompton Corp. 1,400 17,150
----------------------------------------------------------------------------------------------------------------------==============
Containers 5.52% American National Can Group, Inc. 800 13,500
Ball Corp. 600 19,313
*Pactiv Corp. 1,900 14,962
Total 47,775
----------------------------------------------------------------------------------------------------------------------==============
Electric Power 5.03% Constellation Energy Group 300 9,769
Dynegy, Inc. 321 21,928
Reliant Energy, Inc. 400 11,825
Total 43,522
----------------------------------------------------------------------------------------------------------------------==============
5
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Mid-Cap Value Portfolio June 30, 2000
Investments Shares Value
====================================================================================================================================
Fertilizer 3.23% IMC Global, Inc. 1,300 $ 16,900
Potash Corp. of Saskatchewan, Inc. 200 11,038
Total 27,938
----------------------------------------------------------------------------------------------------------------------==============
Financial Services 1.50% C.I.T. Group, Inc. Class A 800 13,000
----------------------------------------------------------------------------------------------------------------------==============
Food 6.89% Dean Foods Co. 400 12,675
*Del Monte Foods Co. 300 2,044
IBP, Inc. 800 12,350
*Smithfield Foods, Inc. 500 14,031
Universal Foods Corp. 1,000 18,500
Total 59,600
----------------------------------------------------------------------------------------------------------------------==============
Health Care Products 9.09% *Acuson Corp. 1,200 16,200
*Boston Scientific Corp. 700 15,356
*St. Jude Medical, Inc. 600 27,525
*Varian Medical Systems, Inc. 500 19,563
Total 78,644
----------------------------------------------------------------------------------------------------------------------==============
Health Care Services 7.61% *Caremark Rx, Inc. 4,300 29,294
*Oxford Health Plans, Inc. 1,100 26,194
*Trigon Healthcare, Inc. Class A 200 10,312
Total 65,800
----------------------------------------------------------------------------------------------------------------------==============
Insurance 6.96% ACE Ltd. 400 11,200
PartnerRe Ltd. 300 10,631
Transatlantic Holdings, Inc. 200 16,750
XL Capital Ltd. Class A 400 21,650
Total 60,231
----------------------------------------------------------------------------------------------------------------------==============
Milling: Fruits/Grain 2.55% Archer-Daniels-Midland Co. 900 8,831
Corn Products International, Inc. 500 13,250
Total 22,081
----------------------------------------------------------------------------------------------------------------------==============
Natural Gas 3.49% EOG Resources, Inc. 900 30,150
----------------------------------------------------------------------------------------------------------------------==============
Oil: Crude Producers 5.23% Kerr-McGee Corp. 400 23,575
*Santa Fe Snyder Corp. 1,900 21,613
Total 45,188
----------------------------------------------------------------------------------------------------------------------==============
Oil: Integrated Domestic 1.43% Amerada Hess Corp. 200 12,350
----------------------------------------------------------------------------------------------------------------------==============
Oil: Services 6.49% ENSCO International, Inc. 400 14,325
*R&B Falcon Corp. 1,100 25,919
Valero Energy Corp. 500 15,875
Total 56,119
----------------------------------------------------------------------------------------------------------------------==============
REIT 1.97% Healthcare Realty Trust, Inc. 1,000 17,062
----------------------------------------------------------------------------------------------------------------------==============
Restaurants 3.06% CBRL Group, Inc. 1,800 26,438
----------------------------------------------------------------------------------------------------------------------==============
Retail 5.38% *Consolidated Stores Corp. 1,600 19,200
Delhaize America, Inc. 500 8,844
J.C. Penney Co., Inc. 1,000 18,437
Total 46,481
----------------------------------------------------------------------------------------------------------------------==============
Synthetic Fibers 1.71% Polymer Group, Inc. 1,600 14,800
----------------------------------------------------------------------------------------------------------------------==============
Utilities: Electrical 9.09% FirstEnergy Corp. 700 16,363
IPALCO Enterprises, Inc. 700 14,088
*Niagara Mohawk Holdings, Inc. 1,000 13,938
Northeast Utilities 700 15,225
6
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
Mid-Cap Value Portfolio June 30, 2000
Investments Shares Value
====================================================================================================================================
SCANA Corp. 289 $ 6,971
TECO Energy, Inc. 600 12,037
Total 78,622
----------------------------------------------------------------------------------------------------------------------==============
Utilities: Gas 2.87% Eastern Enterprises 200 12,600
Southwest Gas Corp. 700 12,250
Total 24,850
----------------------------------------------------------------------------------------------------------------------==============
Total Investments in Common Stocks 95.05% (Cost $775,157) 822,088
====================================================================================================================================
Short-Term Investments 9.25% Principal Amount
====================================================================================================================================
FHLMC Discount Note 6.30% due 7/3/2000 (Cost $79,971) $80,000 79,971
----------------------------------------------------------------------------------------------------------------------==============
Total Investments 104.30% (Cost $855,128) 902,059
====================================================================================================================================
Other Assets, Less Liabilities (4.30)%
====================================================================================================================================
Cash 8,965
------------------------------------------------------------------------------------------------------------------------------------
Receivables for: Securities sold 86,410
Capital stock sold 3,398
Other 3,150
Total Other Assets 101,923
----------------------------------------------------------------------------------------------------------------------==============
Payables for: Securities purchased 139,077
----------------------------------------------------------------------------------------------------------------------==============
Total Other Assets, Less Liabilities (37,154)
Net Assets 100.00% (Equivalent to $11.65 per share; 74,226 shares of $.001 par value capital stock
outstanding;
50,000,000 shares authorized) $864,905
====================================================================================================================================
*Non-income producing security.
REIT Real Estate Investment Trust.
See Notes to Financial Statements.
STATEMENT OF NET ASSETS (UNAUDITED)
International Portfolio June 30, 2000
Investments Currency Shares U.S. $
Value
====================================================================================================================================
Common Stocks and Warrants 76.68%
====================================================================================================================================
Australia 2.40% *Novogen Ltd. AUD 10,000 $ 23,894
------------------------------------------------------------------------------------------------------------------------------------
Canada 5.75% *Ballard Power Systems, Inc. CAD 400 36,231
*Burntsand, Inc. CAD 3,000 13,688
*EcomPark, Inc. CAD 10,000 7,233
Total 57,152
------------------------------------------------------------------------------------------------------------------------------------
France 10.25% Alcatel EUR 600 39,344
Cap Gemini SA EUR 100 17,611
*Guillemot Corp. EUR 400 21,190
*UBI Soft Entertainment SA Warrants expiring 2002 EUR 20 716
*UBI Soft Entertainment SA EUR 600 22,965
Total 101,826
------------------------------------------------------------------------------------------------------------------------------------
Germany 18.10% CeWe Color Holding AG EUR 880 19,873
*LHS Group, Inc. EUR 500 17,706
Marschollek Laut Und Part AG EUR 65 32,510
MobilCom AG EUR 175 17,489
SAP AG EUR 150 22,407
SKW Trostberg AG EUR 2,000 12,122
*Vectron Systems AG EUR 400 17,945
7
<PAGE>
STATEMENT OF NET ASSETS (UNAUDITED)
International Portfolio June 30, 2000
Investments Currency Shares U.S. $
Value
====================================================================================================================================
Vossloh AG EUR 1,600 $ 26,115
*W.E.T. Automotive Systems AG EUR 400 13,745
Total 179,912
------------------------------------------------------------------------------------------------------------------------------------
Japan 17.06% Asahi Chemical Industry Co., Ltd. JPY 3,000 21,197
Colin Corp. JPY 100 9,609
Honda Tsushin Kogyo Co., Ltd. JPY 300 13,990
Japan Asia Investment Co., Ltd JPY 2,000 15,074
Katokichi Co., Ltd. JPY 1,000 25,296
Nomura Securities Co., Ltd. JPY 1,000 24,448
Omron Corp. JPY 700 18,993
Park24 Co., Ltd. JPY 200 25,079
Toyoda Gosei Co., Ltd. JPY 250 15,851
Total 169,537
------------------------------------------------------------------------------------------------------------------------------------
Netherlands 1.55% Getronics NV EUR 1,000 15,415
------------------------------------------------------------------------------------------------------------------------------------
United Kingdom 21.57% Ashtead Group plc GBP 10,000 14,522
DBS Management plc GBP 5,000 13,387
First Technology plc GBP 2,750 22,256
*gameplay.com plc GBP 4,000 15,430
Hays plc GBP 4,000 22,297
Jarvis plc GBP 7,500 20,421
London Bridge Software Holdings plc GBP 2,250 16,678
Mayflower Corp. plc GBP 7,500 16,224
*NXT plc GBP 1,500 23,371
Pilkington plc GBP 20,703 29,438
Trifast plc GBP 1,250 20,350
Total 214,374
-----------------------------------------------------------------------------------------------------
Total Common Stocks and Warrants 76.68% (Cost $729,773) 762,110
====================================================================================================================================
Short-Term Investments 15.08% Principal Amount
====================================================================================================================================
FHLMC Discount Note 6.57% due 7/3/2000 (Cost $149,945) USD $149,945 149,945
-----------------------------------------------------------------------------------------------------
Total Investments 91.76% (Cost $879,718) 912,055
====================================================================================================================================
Other Assets, Less Liabilities 8.24%
====================================================================================================================================
Cash 10,051
------------------------------------------------------------------------------------------------------------------------------------
Receivable for: Securities sold 240,001
Capital stock sold 62,810
Dividends 2,985
Other 5,905
Total Other Assets 321,752
------------------------------------------------------------------------------------------------------------------------------------
Payable for: Securities purchased 239,875
------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 81,877
====================================================================================================================================
Net Assets 100.00% (Equivalent to $11.50 per share; 86,412 shares of $.001
par value capital stock outstanding; 50,000,000 shares authorized) $993,932
====================================================================================================================================
*Non-income producing security.
See Notes to Financial Statements.
8
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
Six Months Ended June 30, 2000
-----------------------------------------------------
Growth & Income Mid-Cap Value International
Investment Income Portfolio Portfolio Portfolio
===================================================================================================================================
<S> <C> <C> <C>
Income Dividends $ 421,002 $ 4,711 $ 5,735
Interest 61,156 1,164 1,872
Foreign taxes withheld (1,001) - (475)
Total income 481,157 5,875 7,132
-----------------------------------------------------------------------------------------------------------------------------------
Expenses Management fee 115,501 2,418 4,162
Management fee waived - (2,418) (4,162)
Shareholder servicing 36,593 408 408
Professional 14,590 2,573 1,791
Reports to shareholders 8,155 136 136
Other 3,363 1,632 4,578
Total expenses before reimbursements 178,202 4,749 6,913
---------------------------------------------------------------------------------------------------------------------
Expense reimbursements - (4,749) (6,913)
---------------------------------------------------------------------------------------------------------------------
Net expenses 178,202 - -
---------------------------------------------------------------------------------------------------------------------
Net investment income 302,955 5,875 7,132
---------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
===================================================================================================================================
Net realized gain (loss) from investment transactions (459,248) 53,621 7,184
-----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments (375,503) 42,570 (63,994)
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (834,751) 96,191 (56,810)
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $(531,796) $102,066 $(49,678)
===================================================================================================================================
See Notes to Financial Statements.
9
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Sept 15, Sept 15,
1999* to 1999* to
Year Ended Dec. 31, Dec. 31,
Six Months Ended June 30, 2000 (unaudited) Dec. 31, 1999 1999 1999
--------------------------------------------------------------------------------------- ------------- --------- ------------
Growth & Mid-Cap Growth & Mid-Cap
Income Value International Income Value International
Increase (Decrease) in Net Assets Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
======================================================================================= ============= ========= ============
<S> <C> <C> <C> <C> <C> <C>
Operations Net investment income $ 302,955 $ 5,875 $ 7,132 $ 653,788 $ 2,492 $ 1,489
Net realized gain (loss)from
investment transactions (459,248) 53,621 7,184 153,506,849 (9,558) 51,600
Net change in
unrealized appreciation
(depreciation) of investments (375,503) 42,570 (63,994) (118,506,201) 4,361 96,331
Net increase (decrease)
in net assets
resulting from operations (531,796) 102,066 (49,678) 35,654,436 (2,705) 149,420
--------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders from:
Net investment income - - - (606,447) (2,455) (1,461)
Net realized gain from
investment transactions - - - (2,143,412) - (52,431)
Total Distributions - - - (2,749,859) (2,455) (53,892)
--------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 20,610,574 279,524 397,326 30,453,087 534,471 513,766
Net asset value of shares issued
in reinvestments of dividends - - - 2,749,859 2,455 53,887
Total 20,610,574 279,524 397,326 33,202,946 536,926 567,653
--------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (3,484,685) (48,423) (16,885) (592,834,481) (28) (12)
--------------------------------------------------------------------------------------------------------------------
Redemption in kind - - - (151,355,638) - -
--------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets derived
from capital share transactions 17,125,889 231,101 380,441 (710,987,173) 536,898 567,641
--------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 16,594,093 333,167 330,763 (678,082,596) 531,738 663,169
----------------------------------------------------------------------------------------------------------------------------------
Net Assets Beginning of period 36,191,649 531,738 663,169 714,274,245 - -
--------------------------------------------------------------------------------------------------------------------
End of period+ $52,785,742 $864,905 $993,932 $ 36,191,649 $531,738 $663,169
====================================================================================================================
* Commencement of operations.
+ Including undistributed (distribution in excess of) net
investment income of $240,405, $5,912 and $7,160, respectively,
as of June 30, 2000, and $(62,550), $37 and $28, respectively, as
of December 31, 1999.
See Notes to Financial Statements.
10
<PAGE>
FINANCIAL HIGHLIGHTS
Growth and Income Portfolio
-------------------------------------------------------------------------------------------
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 $22.16 $20.649 $19.510 $17.022 $15.241 $12.710
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .15(a) .52(a) .360(a) .393(a) .408 .459
Net realized and unrealized gain
(loss) on investments (.60) 2.90 2.149 3.755 2.563 3.332
Total from investment operations (.45) 3.42 2.509 4.148 2.971 3.791
------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
Dividends from net investment income - (.42) (.325) (.34) (.36) (.36)
Distributions from net realized gain - (1.49) (1.045) (1.32) (.83) (.90)
Total dividends and distributions - (1.91) (1.37) (1.66) (1.19) (1.26)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.71 $22.16 $20.649 $19.510 $17.022 $15.241
------------------------------------------------------------------------------------------------------------------------------------
Total Return(d) (2.03)%(b) 16.74% 12.82% 24.34% 19.49% 29.82%
====================================================================================================================================
Ratios to Average Net Assets:
Expenses .40%(b) .87% .51% .52% .52% .52%
Net investment income .68%(b) 2.15% 1.78% 2.02% 2.32% 2.91%
====================================================================================================================================
Supplemental Data:
====================================================================================================================================
Net assets, end of period (000) $52,786 $36,192 $714,274 $512,438 $303,982 $193,575
Portfolio turnover rate 22.50% 188.35% 76.62% 43.09% 48.93% 70.30%
====================================================================================================================================
Mid-Cap Value Portfolio International Portfolio
----------------------------------- ----------------------------------
Six Months September 15, Six Months September 15,
Ended June 30, 1999(c) to Ended June 30, 1999(c) to
2000 December 2000 December
Per Share Operating Performance: (unaudited) 31, 1999 (unaudited) 31, 1999
========================================================================================== ====================================
<S> <C> <C> <C> <C>
Net asset value, beginning of period $9.87 $10.00 $11.86 $10.00
------------------------------------------------------------------------------------------ ------------------------------------
Income from investment operations
Net investment income(a) .10 .05 .11 .03
Net realized and unrealized gain (loss) on investments 1.68 (.13) (.47) 2.88
Total from investment operations 1.78 (.08) (.36) 2.91
------------------------------------------------------------------------------------------ ------------------------------------
Dividends and distributions
Dividends from net investment income - (.05) - (.03)
Distributions from net realized gain - - - (1.02)
Total dividends and distributions - (.05) - (1.05)
------------------------------------------------------------------------------------------ ------------------------------------
Net asset value, end of period $11.65 $9.87 $11.50 $11.86
---------------------------------------------------------------------------------------------------------------------------------
Total Return(b)(d) 18.03% (.82)% (3.04)% 29.39%
=================================================================================================================================
Ratios to Average Net Assets(b):
Expense, including waiver and reimbursements .00% .00% .00% .00%
Expense, excluding waiver and reimbursements 1.11% 1.09% 1.33% 1.53%
Net investment income .91% .51% .86% .27%
=================================================================================================================================
Supplemental Data:
=================================================================================================================================
Net assets, end of period (000) $865 $532 $994 $663
Portfolio turnover rate 47.80% 22.92% 11.30% 38.29%
=================================================================================================================================
(a) Calculated using average shares outstanding during the period.
(b) Not annualized.
(c) Commencement of operations.
(d) Total return assumes the reinvestment of all distributions.
See Notes to Financial Statements.
11
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
Lord Abbett Series Fund, Inc. (the "Company") is an open-end management
investment company incorporated under Maryland law on August 28, 1989. The
Company currently consists of three active portfolios-Growth and Income
Portfolio, Mid-Cap Value Portfolio and International Portfolio ("Series"). Each
Series is diversified as defined under the Investment Company Act of 1940.
Growth and Income Portfolio began operations on December 11, 1989. Mid-Cap Value
Portfolio and International Portfolio commenced operations on September 15,
1999. Shares of each Series are currently issued and redeemed only in connection
with investment in, and payments under, variable annuity contracts issued by
life insurance and insurance-related companies. 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: Portfolio securities listed or admitted to
trading privileges on any national 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, at the mean between the last bid and asked
prices on such exchange. Securities traded in the over-the-counter market are
valued at the mean between the bid and asked prices, except that securities
admitted to trading on the NASDAQ (National Association of Securities Dealers
and Quotations) National Market System are valued at the last sales price if it
is determined that such price more accurately reflects the value of such
securities. Securities, for which market quotations are not available, are
valued at fair value under procedures approved by the Board of Directors.
Short-term securities maturing in 60 days or less, are valued at amortized cost
which approximates market value. (b) Transactions denominated in foreign
currencies are recorded in the Company's records at the rate prevailing when
earned or incurred. Asset and liability accounts, 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) Investment transactions are accounted for on the date that the securities
are purchased or sold (trade date). Realized gains and losses from investment
transactions are calculated on the identified cost basis. Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Interest
income is recorded on the accrual basis.
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 fees of
officers, provides office space and pays for ordinary and necessary office and
clerical expenses pertaining to research and statistical work. The management
fee paid to Lord Abbett is based on average daily net assets at an annual rate
of .50% for the Growth and Income Portfolio, .75% for Mid-Cap Value Portfolio
and 1.00% for International Portfolio. Lord Abbett waived its fees for Mid-Cap
Value Portfolio and International Portfolio for the period ended June 30, 2000.
On June 30, 2000, the management fee payable was $20,152 for Growth and Income
Portfolio. Certain Company Officers and Directors have an interest in Lord
Abbett. 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 International Portfolio. Lord Abbett
pays for the cost of the sub-adviser's services.
The Growth and Income Portfolio has service agreements, permiting it to make
payments under certain circumstances to insurance companies at the annual rate
of .25% of the average daily net asset value of shares of the Series
attributable to the insurance companies' variable annuity contract owners.
Amounts accrued under these agreements are included under the caption
"shareholder servicing" in the statement of operations.
3. Distributions
Distributions from net investment income and net realized gain from investment
transactions, if any, are declared annually. Undistributed net realized capital
gain (loss) as of June 30, 2000 for financial statement purposes, aggregated
$(272,713) for the Growth and Income Portfolio, $44,063 for the Mid-Cap Value
Portfolio and $6,353 for the International Portfolio.
Income and capital gains distributions are determined in accordance with income
tax regulations, which may differ from methods used to determine the
corresponding income and capital gain amounts in accordance with generally
accepted accounting principles.
4. Capital
Transactions in shares of capital stock were as follows:
Six Months Ended June 30, 2000
--------------------------------------------------------------------------------
Growth and Income Mid-Cap Value International
Portfolio Portfolio Portfolio
--------------------------------------------------------------------------------
Sales of shares 960,220 24,543 31,888
Shares issued to
shareholders in
reinvestment of
dividends and
distributions - - -
Total 960,220 24,543 31,888
--------------------------------------------------------------------------------
Shares reacquired (162,099) (4,211) (1,393)
Increase 798,121 20,332 30,495
--------------------------------------------------------------------------------
Year Ended September 15, 1999* September 15, 1999* December
31, 1999to December 31, 1999 to December 31, 1999
--------------------------------------------------------------------------------
Growth and Income Mid-Cap Value International
Portfolio Portfolio Portfolio
--------------------------------------------------------------------------------
Sales of shares 1,354,299 53,641 51,252
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 126,722 256 4,666
Total 1,481,021 53,897 55,918
--------------------------------------------------------------------------------
Shares reacquire (152,251) (3) (1)
Redemption in kind (34,287,022) - -
Increase (decrease) (32,958,252) 53,894 55,917
--------------------------------------------------------------------------------
*Commencement of operations.
As of June 30, 2000, paid-in-capital aggregated $49,850,660 for the Growth and
Income Portfolio, $767,999 for the Mid-Cap Value Portfolio and, $948,082 for the
International Portfolio.
12
<PAGE>
5. Purchases and Sales of Securities
Purchases and sales of investment securities (other than short-term investments
and redemption in kind in Growth and Income Portfolio) for the period ended June
30, 2000 were as follows:
Series Purchases Sales
--------------------------------------------------------------------------------
Growth and Income Portfolio $25,309,105 $9,563,913
--------------------------------------------------------------------------------
Mid-Cap Value Portfolio $ 515,391 $ 281,119
--------------------------------------------------------------------------------
International Portfolio $ 262,866 $ 83,450
--------------------------------------------------------------------------------
As of June 30, 2000, net unrealized appreciation, gross unrealized appreciation
and gross unrealized depreciation of invest ments based on cost for federal
income tax purposes were as follows:
Net Unrealized Unrealized Unrealized
Series Appreciation Appreciation Depreciation
--------------------------------------------------------------------------------
Growth and Income Portfolio $2,967,390 $6,015,703 $(3,048,313)
--------------------------------------------------------------------------------
Mid-Cap Value Portfolio $ 46,931 $ 93,366 $ (46,435)
--------------------------------------------------------------------------------
International Portfolio $ 32,337 $ 139,530 $ (107,193)
--------------------------------------------------------------------------------
For federal income tax purposes, the identified cost of investments as of June
30, 2000 was substantially the same as the cost for financial reporting
purposes.
6. Directors' Remuneration
Directors and Officers of the Company associated with Lord Abbett 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
the net assets of each Fund. Directors' fees, payable as of June 30, 2000 under
a deferred compensation plan, were $35,221.
7. Redemption In Kind
On January 8, 1999, the Growth and Income Portfolio incurred a redemption in
kind from a shareholder (insurance company separate account) in the amount of
34,287,022 shares. A redemption in kind occurs when a shareholder account is
redeemed with portfolio securities in lieu of cash. The unrealized appreciation
related to the securities transferred in kind totaled $151,355,638 and is
included in capital activity in the Statements of Changes in Net Assets.
Copyright(C)2000 by Lord Abbett Growth and Income Series, Inc., 90 Hudson
Street, Jersey City, NJ 07302-3973
This publication, when not used for the general information of shareholders of
Lord Abbett Growth and Income Series, Inc., is to be distributed only if
preceded or accom panied by a current prospectus which includes information
concerning the Fun d's 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.
13
<PAGE>
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
[LOGO] LORD ABBETT & CO.
Investment Management
A Tradition of Performance Through Disciplined Investing
Lord Abbett mutual fund shares are distributed by:
LORD ABBETT DISTRBUTOR LLC
--------------------------------------------------
90 Hudson Street o Jersey City, New Jersey 07302-3973
LASF-3-600
(8/00)
