Lord Abbett
Growth Opportunities Fund
Prospectus
April 1, 1999
(As Revised August 1, 1999)
[LOGO]
As with all mutual funds, the Securities and Exchange Commission does not
guarantee that the information in this prospectus is accurate or complete, and
it has not judged this fund for its investment merit. It is a criminal offense
to state otherwise.
Class P shares of the fund are neither offered to the general public nor
available in all states. Please call 800-821-5129 for further information.
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Table of Contents
The Fund Page
What you should know Goal/Approach 2
about the fund Main Risks 2
Past Performance 3
Fees and Expenses 3
Your Investment
Information for managing Purchases 4
your fund account Opening Your Account 6
Redemptions 7
Distributions and Taxes 7
Services For Fund Investors 8
Sales Charges and Service Fees 9
Management 10
For More Information
How to learn more Other Investment Techniques 11
about the fund Glossary of Shaded Terms 14
Recent Performance 15
Financial Information
Financial Highlights 16
Compensation For Your Dealer 18
How to learn more about the Back Cover
fund and other Lord Abbett funds
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GOAL/APPROACH
The fund's investment objective is capital appreciation. Normally, we
invest primarily in common stocks of mid-sized companies with outstanding
equity securities having an aggregate market value between $1 billion and
$6 billion. The fund uses a growth style of investing which means that we
favor companies that show the potential for stronger than expected earnings
or growth. Under normal circumstances, at least 65% of our total assets
will consist of investments made in growth companies, as determined at the
time of purchase. The fund may invest up to 35% of its assets in foreign
securities.
Typically, in choosing stocks, we look for companies using the following
process:
Quantitative research is performed on a universe of middle-sized
companies to identify those with superior growth possibilities.
Fundamental research is performed to identify companies likely to
produce superior returns over a thirty-six month time frame,
identified by analyzing the dynamics in each company within its
industry and within the economy.
Before July 15, 1998, the fund used a value style of investing. This meant
that companies were selected without regard to current earnings, under a
process that sought to identify and invest in undervalued securities.
We may take a temporary defensive position by investing some of our assets
in shortterm debt securities. This could reduce the benefit from any
upswing in the market and present the fund from achieving its investment
objective.
MAIN RISKS
The value of your investment will fluctuate in response to stock market
movements. In addition, growth stocks tend to be more volatile than
slower-growing value stocks. This means that the fund could be more
volatile than the stock market as a whole.
The foreign securities in which the fund may invest are subject to currency
fluctuations. Foreign securities markets may not be subject to the same
degree of regulation as the U. S. markets and may be more volatile and less
liquid than the U. S. markets. Investors should also be aware that the fund
has the ability to invest in derivatives, the value of which may fluctuate
greatly.
An investment in the fund is not a bank deposit. It is not FDIC-insured or
government endorsed. It is not a complete investment program. You could
lose money in the fund, but you also have the potential to make money.
We or the fund refers to Growth Opportunities Fund, a portfolio of Lord Abbett
Research Fund, Inc. (the "company"). The fund operates under the supervision of
the company's Board with the advice of Lord, Abbett & Co. ("Lord Abbett"), its
investment manager.
About the fund. The fund is a professionally managed portfolio of securities
purchased with the pooled money of investors. It strives to reach its stated
goal although, as with all mutual funds, cannot guarantee results.
Growth stocks exhibit faster-thanaverage gains in earnings and are expected to
continue profit growth at a high-level. They tend to be more volatile than
slower-growing value stocks.
You should read this entire prospectus, including "Other Investment Techniques,"
which concisely describes the other investment strategies and their risks used
by the fund.
2 The Fund
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PAST PERFORMANCE
The information below provides some indication of the risks of investing in
the fund, by showing changes in the fund's class A shares' performance from
calendar year to calendar year and by showing how the fund's average annual
returns compare with those of a broad measure of market performance.
[GRAPHIC OMITTED]
Best Quarter: 29.75%
Worst Quarter -20.70%
The table below shows a comparison of the fund's class A average annual
total return to that of the Russell MidCap Growth Index ("RMCG Index").
Fund returns assume reinvestment of dividends and distributions and payment
of the maximum applicable front-end or deferred sales charge. All periods
end on December 31, 1998.
Class 1 Year Inception (i) RMCG Index (ii)
A 6.90% 19.50% 18.65%(iii)
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RMCG Index (ii) 17.86% -- --
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Past performance is not a prediction of future results.
(i) The date of inception for class A is: 8/1/95.
(ii) Performance for the unmanaged RMCG Index does not reflect transaction costs
or management fees.
(iii) Represents total return for the period 8/31/95 -12/31/98, to correspond
with class A inception date.
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and
hold shares of the fund.
<TABLE>
<CAPTION>
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Fee table
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Class A Class B Class C Class P
<S> <C> <C> <C> <C>
Shareholder Fees (Fees paid directly from your investment)
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Maximum Sales Charge on Purchases
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(as a % of offering price) 5.75% none none none
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Maximum Deferred Sales Charge (See "Purchases") none 5.00% (3) 1.00% none
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Annual Fund Operating Expenses (Expenses deducted from fund assets) (as a % of average net assets) (1)
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Management Fees (See "Management") 0.90% 0.90% 0.90% 0.90%
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Distribution and Service (12b-1) Fees (2) 0.35% 1.00% 1.00% 0.45%
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Other Expenses 0.81% 0.81% 0.81% 0.81%
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Total Operating Expenses 2.06% 2.71% 2.71% 2.16%
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</TABLE>
Expense example
This example, like that in other funds' prospectuses, assumes a $10,000 initial
investment at maximum sales charge, if any, 5% total return each year and no
changes in expenses. You pay the following expenses over the course of each
period shown if you sell your shares at the end of the period, although your
actual cost may be higher or lower. The expenses include any applicable
contingent deferred sales charges.
Share class 1 Year 3 Years 5 Years 10 Years
Class A shares $772 $1,183 $1,619 $2,829
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Class B shares $774 $1,141 $1,634 $2,886
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Class C shares $374 $ 841 $1,434 $3,042
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Class P shares $219 $ 676 $1,159 $2,495
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You would pay the following expenses on the same investment,
assuming you kept your shares.
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Class A shares $772 $1,183 $1,619 $2,829
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Class B shares $274 $ 841 $1,434 $2,886
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Class C shares $274 $ 841 $1,434 $3,042
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Class P shares $219 $ 676 $1,159 $2,495
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This example is for comparison and is not a representation of the fund's
actual expenses or returns, either past or present.
Management fees are payable to Lord Abbett for the fund's investment management.
12b-1 fees refer to fees incurred for activities that are primarily intended to
result in the sale of fund shares and service fees for shareholder account
service and maintenance.
Other expenses include fees paid for miscellaneous items such as transfer
agency, legal and share registration fees.
Lord Abbett is currently waiving the management fee and subsidizing the other
expenses of the fund. Lord Abbett may stop waiving the management fee and
subsidizing the other expenses at any time. Total operating expenses with the
fee waiver and expense subsidy are 0.35%, 1.00%, 1.00% and 0.45% for classes A,
B, C and P, respectively.
(1) The annual fund operating expenses have been restated from fiscal year
amounts to reflect current fees.
(2) Because 12b-1 distribution fees are paid out on an ongoing basis, over time
they will increase the cost of your investment and may cost you more than
paying other types of sales charges.
(3) Class B shares will convert to class A shares on the eighth anniversary of
your original purchase of class B shares.
The Fund 3
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PURCHASES
This prospectus offers four classes of shares: classes A, B ,C, and P (call
800-821-5129 to find out if class P shares are available in your state).
These different classes of shares represent investments in the same
portfolio of securities but are subject to different expenses. Our shares
are continuously offered. The offering price is based on the Net Asset
Value ("NAV") per share next determined after we receive your purchase
order submitted in proper form. A front-end sales charge is added to the
NAV, in the case of the class A shares. There is no front-end sales charge,
although there is a CDSC in the case of the class B and C shares, as
described below.
You should read this section carefully to determine which class of shares
represents the best investment option for your particular situation. It may
not be suitable for you to place a purchase order for class B shares of
$500,000 or more or a purchase order for class C shares of $1,000,000 or
more. You should discuss pricing options with your investment professional.
For more information, see "Alternative Sales Arrangements" in the Statement
of Additional Information.
We reserve the right to withdraw all or any part of the offering made by
this prospectus or to reject any purchase order. We also reserve the right
to waive or change minimum investment requirements. All purchase orders are
subject to our acceptance and are not binding until confirmed or accepted
in writing.
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Front-End Sales Charges -Class A Shares
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To Compute
As a % of As a % of Offering Price
Your Investment Offering Price Your Investment Divide NAV by
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Less than $50,000 5.75% 6.10% .9425
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$50,000 to $99,999 4.75% 4.99% .9525
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$100,000 to $249,999 3.95% 4.11% .9605
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$250,000 to $499,999 2.75% 2.83% .9725
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$500,000 to $999,999 1.95% 1.99% .9805
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$1,000,000 and over No Sales Charge 1.0000
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Reducing Your Class A Front-End Sales Charges. Class A shares may be
purchased at a discount if you qualify under either of the following
conditions:
Rights of Accumulation - A Purchaser can apply the value (at public
offering price) of the shares already owned to a new purchase of class
A shares of any Eligible Fund in order to reduce the sales charge.
Statement of Intention - A Purchaser of class A shares can purchase
additional shares of any Eligible Fund over a 13-month period and
receive the same sales charge as if all shares were purchased at once.
Shares purchased through reinvestment of dividends or distributions
are not included. A statement of intention can be backdated 90 days.
Current holdings under rights of accumulation can be included in a
statement of intention.
For more information on eligibility for these privileges, read the
applicable sections in the attached application.
NAV per share for each class of fund shares is calculated each business day at
the close of regular trading on the New York Stock Exchange (" NYSE"). The fund
is open on those business days when the NYSE is open. Purchases and sales of
fund shares are executed at the NAV next determined after the fund receives your
order. In calculating NAV, securities for which market quotations are available
are valued at those quotations. Securities for which such quotations are not
available are valued at fair value under procedures approved by the Board.
Share classes
Class A
normally offered with a front-end sales charge
Class B
no front-end sales charge, however, a contingent deferred sales charge is
applied to shares sold prior to the sixth anniversary of purchase
higher annual expenses than class A shares
automatically convert to class A shares after eight years
Class C
no front-end sales charge
higher annual expenses than class A shares
a contingent deferred sales charge is applied to shares sold prior to the
first anniversary of purchase
Class P
available to certain pension or retirement plans and pursuant to a Mutual
Fund Advisory Program
4 Your Investment
<PAGE>
Class A Share Purchases Without A Front-End Sales Charge. Class A shares
may be purchased without a front-end sales charge under any of the
following conditions:
purchases of $1 million or more +
purchases by Retirement Plans with at least 100 eligible employees +
purchases under a Special Retirement Wrap Program +
purchases made with dividends and distributions on class A shares of
another Eligible Fund
purchases representing repayment under the loan feature of the Lord
Abbettsponsored prototype 403(b) Plan for class A shares
purchases by employees of any consenting securities dealer having a
sales agreement with Lord Abbett Distributor
purchases under a Mutual Fund Advisory Program
purchases by trustees or custodians of any pension or profit sharing
plan, or payroll deduction IRA for the employees of any consenting
securities dealer having a sales agreement with Lord Abbett
Distributor
See the Statement of Additional Information for a listing of other
categories of purchasers who qualify for class A share purchases without a
front-end sales charge.
+ These categories may be subject to a Contingent Deferred Sales Charge
(" CDSC").
Class A Share CDSC. If you buy class A shares under one of the starred (+)
categories listed above and you redeem any of them within 24 months after
the month in which you initially purchased them, the fund normally will
collect a CDSC of 1%.
The class A share CDSC generally will be waived for:
benefit payments such as Retirement Plan loans, hardship withdrawals,
death, disability, retirement, separation from service or any excess
distribution under Retirement Plans (documentation may be required)
redemptions continuing as investments in another fund participating in
a Special Retirement Wrap Program
Class B Share CDSC. The CDSC for class B shares normally applies if you
redeem your shares before the sixth anniversary of their initial purchase.
The CDSC declines the longer you own your shares, according to the
following schedule:
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Contingent Deferred Sales Charges -Class B Shares
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Anniversary (1) of Contingent Deferred Sales Charge
the day on which the on redemption (as % of amount
purchase order was accepted subject to charge)
On Before
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1st 5.0%
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1st 2nd 4.0%
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2nd 3rd 3.0%
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3rd 4th 3.0%
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4th 5th 2.0%
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5th 6th 1.0%
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on or after the 6th (2) None
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(1) The anniversary is the same calendar day in each respective year after the
date of purchase. For example, the anniversaries for shares purchased on
May 1 will be May 1 of each succeeding year.
(2) Class B shares will automatically convert to class A shares on the eighth
anniversary of the purchase of class B shares.
CDSC, regardless of class, is not charged on shares acquired through
reinvestment of dividends or capital gains distributions and is charged on the
original purchase cost or the current market value of the shares at the time
they are being sold, whichever is lower. In addition, repayment of loans under
Retirement Plans and 403(b) Plans will constitute new sales for purposes of
assessing the CDSC.
To minimize the amount of any CDSC, the fund redeems shares in the following
order:
1. shares acquired by reinvestment of dividends and capital gains (always free
of a CDSC)
2. shares held for six years or more (class B) or two years or more after the
month of purchase (class A) or one year or more (class C)
3. shares held the longest before the sixth anniversary of their purchase
(class B) or before the second anniversary after the month of purchase
(class A) or before the first anniversary of their purchase (class C)
Retirement Plans include employersponsored retirement plans under the Internal
Revenue Code, excluding Individual Retirement Accounts.
Lord Abbett Distributor LLC ("Lord Abbett Distributor") acts as agent for the
funds to work with investment professionals that buy and/or sell shares of the
funds on behalf of their clients. Generally, Lord Abbett Distributor does not
sell fund shares directly to investors.
Benefit Payment Documentation.
(class A only)
under $50,000 -no documentation necessary
over $50,000 -reason for benefit payment must be received in writing. Use
the address indicated under "Opening Your Account."
Your Investment 5
<PAGE>
The class B share CDSC generally will be waived under any one of the
following conditions:
benefit payments such as Retirement Plan loans, hardship withdrawals,
death, disability, retirement, separation from service or any excess
contribution or distribution under Retirement Plans
Eligible Mandatory Distributions under 403(b) Plans and individual
retirement accounts
death of the shareholder (natural person)
redemptions of shares in connection with Div-Move and Systematic
Withdrawal Plans (up to 12% per year)
See "Systematic Withdrawal Plan" under "Services For Fund Investors" below
for more information on CDSCs with respect to class B shares.
Class C Share CDSC. The 1% CDSC for class C shares normally applies if you
redeem your shares before the anniversary of the purchase of such shares.
Class P Shares. Class P shares have lower annual expenses than class B and
class C shares, no front-end sales charge, and no CDSC. Class P shares are
currently sold and redeemed at NAV (a) pursuant to a Mutual Fund Advisory
Program or (b) to the trustees of, or employer-sponsors with respect to,
pension or retirement plans with at least 100 eligible employees (such as a
plan under Section 401(a), 401(k) or 457(b) of the Internal Revenue Code)
which engage an investment professional providing, or participating in an
agreement to provide, certain recordkeeping, administrative and/or
sub-transfer agency services to the fund on behalf of the class P
shareholders.
Important Information. You may be subject to a $50 penalty under the Internal
Revenue Code if you do not provide a correct taxpayer identification number
(Social Security Number for individuals) or make certain required
certifications. In addition, we may be required to withhold from your account
and pay to the U. S. Treasury 31% of any redemption proceeds and any dividend or
distribution from your account.
Small Accounts. Our Board may authorize closing any account in which there are
fewer than 25 shares if it is in a fund's best interest to do so.
OPENING YOUR ACCOUNT
MINIMUM INITIAL INVESTMENT
Regular account $1,000
Individual Retirement Accounts and
403(b) Plans under the Internal Revenue Code $250
Uniform Gifts to Minors Account $250
For Retirement Plans and Mutual Fund Advisory Programs, no minimum
investment is required, regardless of share class.
You may purchase shares through any independent securities dealer who has a
sales agreement with Lord Abbett Distributor or you can fill out the
attached application and send it to the fund you select at the address
stated below. You should carefully read the paragraph below entitled
"Proper Form" before placing your order to assure your order will be
accepted.
Growth Opportunities Fund
P. O. Box 419100
Kansas City, MO 64141
Proper Form. An order submitted directly to the fund must contain: (1) a
completed application, and (2) payment by check. For more information
regarding proper form of a purchase order, call the fund at 800-821-5129.
Payment must be credited in U. S. dollars to our custodian bank's account.
By Exchange. Telephone the fund at 800-821-5129 to request an exchange from
any eligible Lord Abbett-sponsored fund.
6 Your Investment
<PAGE>
REDEMPTIONS
By Broker. Call your investment professional for directions on how to
redeem your shares.
By Telephone. To obtain the proceeds of a redemption of $50,000 or less
from your account, you or your representative can call the fund at
800-821-5129.
By Mail. Submit a written redemption request indicating the name(s) in
which the account is registered, the fund's name, the class of shares, your
account number, and the dollar value or number of shares you wish to sell.
Include all necessary signatures. If the signer has any Legal Capacity, the
signature and the capacity must be guaranteed by an Eligible Guarantor.
Certain other legal documentation may be required. For more information
regarding proper documentation call 800-821-5129.
Normally a check will be mailed to the name and address in which the
account is registered (or otherwise according to your instruction) within
three business days after receipt of your redemption request. Your account
balance must be sufficient to cover the amount being redeemed or your
redemption order will not be processed. Redemption requests for shares
initially purchased by check will not be honored for up to 15 days, unless
we are assured that the check has cleared earlier.
To determine if a CDSC applies to a redemption, see "Class A share CDSC,""
Class B share CDSC" or "Class C share CDSC."
Eligible Guarantor is any broker or bank that is a member of the Medallion Stamp
Program. Most major securities firms and banks are members of this program. A
notary public is not an eligible guarantor.
DISTRIBUTIONS AND TAXES
Each fund pays its shareholders dividends from its net investment income,
and distributes net capital gains that it has realized. Dividends from net
investment income are expected to be paid to shareholders annually. If a
capital gains distribution is declared, it is expected to be paid annually.
Your distributions will be reinvested in your fund unless you instruct the
fund to pay them to you in cash. There are no sales charges on
reinvestments.
The tax status of any distribution is the same for all shareholders
regardless of how long they have been in the fund or whether distributions
are reinvested or paid in cash. In general, distributions are taxable as
follows:
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Federal Taxability Of Distributions
Type of Tax rate for Tax rate for
distribution 15% bracket 28% bracket and above
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Income Ordinary Income Ordinary Income
dividends Rate Rate
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Short-term Ordinary Income Ordinary Income
capital gains Rate Rate
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Long-term
capital gains 10% 20%
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Except in tax-advantaged accounts, any sale or exchange of fund shares may
be a taxable event.
Annual Information - Information concerning the tax treatment of dividends
and other distributions will be mailed to shareholders each year. Each fund
will also provide annually to its shareholders information regarding the
source of dividends and distributions of capital gains by that fund.
Because everyone's tax situation is unique, you should
Taxes on Transactions. The chart at left also can provide a "rule of thumb"
guide for your potential U. S. federal income tax liability when selling or
exchanging fund shares. The second row, "Short-term capital gains," applies to
fund shares sold within 12 months of purchase. The third row, "Long-term capital
gains," applies to shares held for more than 12 months.
Starting January 1, 2001, sales of securities held for more than five years will
be taxed at special lower rates.
Your Investment 7
<PAGE>
consult your tax adviser regarding the treatment of those distributions under
the federal, state and local tax rules that apply to you as well as the tax
consequences of gains or losses from the redemption or exchange of your shares.
SERVICES FOR FUND INVESTORS
AUTOMATIC SERVICES
Buying or selling shares automatically is easy with the services described
below. With each service, you select a schedule and amount, subject to
certain restrictions. You can set up most of these services when filling
out your application or by calling 800-821-5129.
<TABLE>
<CAPTION>
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For investing
<S> <C>
Invest-A-Matic You can make fixed, periodic investments ($50 minimum) into your fund
(Dollar-cost account by means of automatic money transfers from your bank checking
averaging) account. See the attached application for instructions.
Div-Move You can automatically reinvest the dividends and distributions from your
account into another account in any Eligible Fund ($50 minimum).
For selling shares
Systematic You can make regular withdrawals from most Lord Abbett funds. Automatic
Withdrawal cash withdrawals can be paid to you from your account in fixed or variable
Plan (" SWP") amounts. To establish a plan, the value of your shares must be at least
$10,000, except for Retirement Plans for which there is no minimum. Your
shares must be in non-certificate form.
Class B shares The CDSC will be waived on redemptions of up to 12% of the current net
asset value of your account at the time of your SWP request. For class B share
redemptions over 12% per year, the CDSC will apply to the entire redemption.
Please contact the fund for assistance in minimizing the CDSC in this situation.
Class B and Redemption proceeds due to a SWP for class B and class C shares will be
C shares redeemed in the order described under "CDSC" under "Purchases."
- ---------------------------------------------------------------------------------------------------
</TABLE>
OTHER SERVICES
Telephone Investing . After we have received the attached application
(selecting "yes" under Section 7C and completing Section 7), you can
instruct us by phone to have money transferred from your bank account to
purchase shares of the fund for an existing account. The fund will purchase
the requested shares when it receives the money from your bank.
Exchanges. You or your investment professional can instruct your fund to
exchange shares of any class for shares of the same class of any Eligible
Fund. Instruction may be provided in writing or by telephone, with proper
identification, by calling 800-821-5129. The fund must receive instructions
for the exchange before the close of the NYSE on the day of your call. If
you meet this requirement, you will get the NAV per share of the Eligible
Fund determined on that day. Exchanges will be treated as a sale for
federal tax purposes. Be sure to read the current prospectus for any fund
into which you are exchanging.
Reinvestment Privilege. If you sell shares of the fund, you have a one time
right to reinvest some or all of the proceeds in the same class of any
Eligible Fund within 60 days without a sales charge. If you paid a CDSC
when you sold your shares, you will be credited with the amount of the
CDSC. All accounts involved must have the same registration.
Lord Abbett offers a variety of Retirement Plans. Call 800-253-7299 for
information about:
Traditional, Rollover, Roth and Education IRAs
Simple IRAs, SEP-IRAs, 401(k) and 403(b) accounts
Defined Contribution Plans
Telephone Transactions. You have this privilege unless you refuse it in writing.
For your security, telephone transaction requests are recorded. We will take
measures to verify the identity of the caller, such as asking for your name,
account number, social security or taxpayer identification number and other
relevant information. The funds will not be liable for following instructions
communicated by telephone that they reasonably believe to be genuine.
Transactions by telephone may be difficult to implement in times of drastic
economic or market change.
Exchange Limitations. Exchanges should not be used to try to take advantage of
short-term swings in the market. Frequent exchanges create higher expenses for
the fund. Accordingly, the fund reserves the right to limit or terminate this
privilege for any shareholder making frequent exchanges or abusing the
privilege. The fund also may revoke the privilege for all shareholders upon 60
days' written notice.
8 Your Investment
<PAGE>
Account Statements. Every Lord Abbett investor automatically receives
quarterly account statements.
Householding. Shareholders with the same last name and address will receive
a single copy of a prospectus and an annual or semi-annual report, unless
additional reports are specifically requested in writing to the fund.
Account Changes. For any changes you need to make to your account, consult
your investment professional or call the fund at 800-821-5129.
Systematic Exchange. You or your investment professional can establish a
schedule of exchanges between the same classes of any Eligible Fund.
SALES CHARGES AND SERVICE FEES
Sales and Service Compensation. As part of its plan for distributing
shares, each fund and Lord Abbett Distributor pay sales and service
compensation to Authori zed Institutions that sell the fund's shares and
service its shareholder accounts.
Sales compensation originates from two sources: sales charges and 12b-1
distribution fees that are paid out of each fund's assets. Service
compensation originates from 12b-1 service fees. The 12b-1 fee rates vary
by share class, according to the Rule 12b-1 plan adopted by each fund. The
sales charges and 12b-1 fees paid by investors are shown in the
class-by-class information under "Expenses" and "Purchases." The portion of
these expenses that is paid as sales and service compensation to Authorized
Institutions, such as your dealer, is shown in the chart at the end of this
prospectus. The portion of such sales and service compensation paid to Lord
Abbett Distributor is discussed under "Sales Activities" and "Service
Activities." Sometimes we do not pay sales and service compensation where
tracking data is not available for certain accounts or where the Authori
zed Institution waives part of the compensation.
We may pay Additional Concessions to Authorized Institutions from time to
time.
Sales Activities. We may use 12b-1 distribution fees to pay Authorized
Institutions to finance any activity which is primarily intended to result
in the sale of shares. Lord Abbett Distributor uses its portion of the
distribution fees attributable to a fund's class A and class C shares for
activities which are primarily intended to result in the sale of such class
A and class C shares, respectively. These activities include, but are not
limited to, printing of prospectuses and statements of additional
information and reports for those other than existing shareholders,
preparation and distribution of advertising and sales material, expenses of
organizing and conducting sales seminars, Additional Concessions to
Authorized Institutions, the cost necessary to provide distribution-related
services or personnel, travel, office expenses, equipment and other
allocable overhead.
Service Activities. We may pay Rule 12b-1 service fees to Authorized
Institutions for any activity which is primarily intended to result in
personal service and/or the maintenance of shareholder accounts. Any
portion of the service fees paid to Lord Abbett Distributor will be used to
service and maintain shareholder accounts.
12b-1 fees are payable regardless of expenses. The amounts payable by a fund
need not be directly related to expenses. If Lord Abbett Distributor's actual
expenses exceed the fee payable to it, a fund will not have to pay more than
that fee. If Lord Abbett Distributor's expenses are less than the fee it
receives, Lord Abbett Distributor will keep the full amount of the fee.
Your Investment 9
<PAGE>
MANAGEMENT
The fund's investment adviser is Lord, Abbett & Co., 767 Fifth Avenue, New
York, NY 10153-0203. Founded in 1929, Lord Abbett manages one of the
nation's oldest mutual fund complexes, with approximately $28 billion in
more than 35 mutual fund portfolios and other advisory accounts. For more
information about the services Lord Abbett provides to the fund, see the
Statement of Additional Information.
The fund pays Lord Abbett a monthly fee based on average daily net assets
for each month. Effective September 15, 1998, the management fee increased
from an annual rate of 0.75 of 1% to 0.90 of 1% for the fund. In addition,
the fund pays all expenses not expressly assumed by Lord Abbett. For the
fiscal year ended November 30, 1998, Lord Abbett waived its management fee
and subsidized most other expenses.
Lord Abbett uses teams of portfolio managers and analysts acting together
to manage the fund's investments. Stephen J. McGruder, Partner of Lord
Abbett, heads the fund's team, the other senior member of which is Frederic
D. Ohr. Mr. McGruder has been with Lord Abbett since 1995. Before joining
Lord Abbett, Mr. McGruder served as Vice President of Wafra Investment
Advisory Group, a private investment advisory company, from 1988 to 1995.
Mr. Ohr joined Lord Abbett in 1998. Before joining Lord Abbett, Mr. Ohr was
a Vice President and Senior Analyst with Chase Asset Management from 1991
to 1998.
10 Your Investment
<PAGE>
For More Information
OTHER INVESTMENT TECHNIQUES
This section describes some of the investment techniques that might be used
by the funds, and their risks.
Adjusting Investment Exposure. The fund may, but is not required to, use
various strategies to change its investment exposure to adjust to changing
security prices, interest rates, currency exchange rates, commodity prices
and other factors. These strategies may involve buying or selling
derivative instruments, such as options and futures contracts, currency
exchange contracts, indexed securities, and rights and warrants. The fund
may use these transactions to change the risk and return characteristics of
its portfolio. If we judge market conditions incorrectly or use a strategy
that does not correlate well with the fund's investments, it could result
in a loss, even if we intended to lessen risk or enhance returns. These
transactions may involve a small investment of cash compared to the
magnitude of the risk assumed and could produce disproportionate gains or
losses. Also, these strategies could result in losses if the counterparty
to a transaction does not perform as promised.
Borrowing. The fund may borrow from banks. If it borrows money, its share
price may be subject to greater fluctuation until the borrowing is paid
off. The fund may borrow only for temporary or emergency purposes, and not
in an amount exceeding 33 1/3 % of its total assets.
Closed-End Investment Companies. The fund may invest in shares of
closed-end investment companies if it pays a fee or commission no greater
than the customary broker's commission. Shares of investment companies
sometimes trade at a discount or premium to their net asset value. Also,
there may be duplication of fees if a fund and the closed-end investment
company both charge a management fee. No more than 5% of the fund's gross
assets may be invested in Closed-End Investment Companies.
Diversification. The fund is a diversified fund, which means that with
respect to 75% of its total assets, it will not purchase a security if, as
a result, more than 5% of the fund's total assets would be invested in
securities of a single issuer or the fund would hold more than 10% of the
outstanding voting securities of the issuer. U.S. government securities
are not subject to these requirements.
Financial Futures Transactions. The fund may enter into financial futures
transactions. A financial futures transaction is the purchase or sale of an
exchange-traded contract to buy or sell a standard quality and quantity of
a financial instrument or index at a specific future date and price. The
price behavior of the futures contract may not correlate with that of the
item being hedged. The fund will not enter into any futures contracts, or
options thereon, if the aggregate market value of the securities covered by
futures contracts plus options on such financial futures exceeds 50% of its
total assets.
Foreign Currency Hedging Techniques. The fund may use Foreign Currency
Hedging Techniques. Although it does not normally engage in extensive
currency hedging, it may use forwards and options to hedge the risk to the
portfolio (related to foreign holdings) if it expects that foreign exchange
price movements will be unfavorable for U. S. investors. Generally, these
instruments allow a fund to lock in a specified exchange rate for a period
of time. If the fund's forecast proves to be wrong, such a hedge may cause
a loss. Also, it may be difficult or impractical to hedge currency risk in
many emerging countries. Under some circumstances, a fund may commit a
substantial portion of its portfolio to the com-
For More Information 11
<PAGE>
pletion of forward contracts. Although such contracts will be used
primarily to protect the fund from adverse currency movements, their use
involves the risk that Lord Abbett will not accurately predict currency
movement, and the fund's return could be reduced.
Certain of the fund's investments may be denominated in foreign currency.
The fund uses currency transactions in an attempt to eliminate currency
risk associated with foreign investments.
The fund may also purchase foreign currency put and call options, subject
to certain limitations.
There is the possibility that the foreign currency hedging techniques will
not work as anticipated.
Foreign Securities. The fund may invest in securities of foreign countries.
These securities are not subject to the same degree of regulation and may
be more volatile and less liquid than securities traded in major U. S.
markets. Foreign portfolio securities may trade on days when a fund does
not value them. Fund share prices could be affected on days an investor
cannot purchase or sell shares. Other risks include less information on
public companies, banks and governments; political and social instability;
expropriations; higher transaction costs; currency fluctuations;
non-deductible withholding taxes and different accounting and settlement
practices. The fund may invest 35% of net assets at the time of investment
in securities traded primarily in foreign countries.
Illiquid Securities. The fund may invest in illiquid securities. These
securities include those that are not traded on the open market or that
trade irregularly or in very low volume. They may be difficult or
impossible to sell at the time and price the fund would like. The fund may
invest up to 15% of its assets in illiquid securities.
Options Transactions. The fund may purchase and write put and call options
on equity securities or stock indices that are traded on national
securities exchanges. A put option on securities gives the purchaser, in
return for a premium, the right, for a specified period of time, to sell
the securities subject to the option to the writer (seller) of the put at
the specified exercise price. The writer of the put option, in return for
the premium, has the obligation, upon exercise of the option, to acquire
the securities underlying the option at the exercise price. The writer of a
put option might be obligated to purchase underlying securities for more
than their current market value.
A call option on securities gives the purchaser, in return for a premium
paid, the right for a specified period of time to purchase the securities
subject to the option at a specified price (the "exercise price" or "strike
price"). The writer of a call option, in return for the premium, has the
obligation, upon exercise of the option, to deliver, depending upon the
terms of the option contract, the underlying securities to the purchaser
upon receipt of the exercise price.
The fund may only sell (write) covered call options. This means that the
fund may only sell the call options on securities which the fund owns.
When a fund writes a call option, it gives up the potential for gain on the
underlying index gives the holder the right, in return for a premium paid,
to receive, upon exercise of the option, an amount of cash if the closing
level of the stock index upon which the option is based is greater than, in
the case of a call, or less than, in the case of a put, the exercise price
of the option. The writer of an index option, in return for a premium, is
obligated to pay the amount of cash due upon exercise of the option.
The fund may write only covered put options to the extent that cover for
such options does not exceed 25% of the fund's net assets. The fund will
not purchase an option if,
12 For More Information
<PAGE>
as a result of such purchase, more than 20% of its total assets would be
invested in premiums for such options.
Portfolio Securities Lending. The fund may lend securities to
broker-dealers and financial institutions, as a means of earning income.
This practice could result in a loss or delay in recovering a fund's
securities, if the borrower defaults. The fund will limit its securities
loans to 5% of its total assets and all loans will be fully collateralized.
Repurchase Agreements. The fund may enter into repurchase agreements. In a
repurchase agreement, a fund buys a security at one price from a
broker-dealer or financial institution and simultaneously agrees to sell
the same security back to the same party at a higher price in the future.
If the other party to the agreement defaults or becomes insolvent, a fund
could lose money.
Rights and Warrants. The fund may invest up to 5% of its assets in rights
and warrants to purchase securities. Rights represent a privilege offered
to holders of record of issued securities (usually on a pro-rata basis) for
additional securities of the same class, of a different class, or of a
different issuer, as as the case may be. Warrants represent the privilege
to purchase securities at a stipulated price and are usually valid for
several years. Rights and warrants generally do not entitle a holder to
dividends or voting rights with respect to the underlying securities, nor
do they represent any rights in the assets of the issuing company.
The value of a right or warrant may not necessarily change with the value
of the underlying securities and rights and warrants cease to have value
after their expiration date.
Rule 144A Securities. The fund may invest in Rule 144A securities, which
are securities determined by the Board to be liquid pursuant to Securities
and Exchange Commission Rule 144A (the "Rule"). Under the Rule, a
qualifying unregistered security may be resold to a qualified institutional
buyer without registration and without regard to whether the seller
originally purchased the security for investment. A substantial part of the
lower-rated debt market consists of Rule 144A securities, many of which are
registered within a few months of their purchases. Investments in Rule 144A
securities initially determined to be liquid could have the effect of
diminishing the level of a fund's liquidity during periods of decreased
market interest in such securities.
When-Issued or Delayed Delivery Securities. The fund may purchase or sell
securities with payment and delivery taking place as much as a month or
more later. The fund would do this in an effort to buy or sell the
securities at an advantageous price and yield. The securities involved are
subject to market fluctuation and no interest accrues to the purchaser
during the period between purchase and settlement. At the time of delivery
of the securities, their market value may be less than the purchase price.
Also, if a fund commits a significant amount of assets to when-issued or
delayed delivery transactions, it may increase the volatility of the fund's
net asset value.
For More Information 13
<PAGE>
GLOSSARY OF SHADED TERMS
Additional Concessions. Lord Abbett Distributor may, for specified periods,
allow dealers to retain the full sales charge for sales of shares or may
pay an additional concession to a dealer who sells a minimum dollar amount
of our shares and/or shares of other Lord Abbett-sponsored funds. In some
instances, such additional concessions will be offered only to certain
dealers expected to sell significant amounts of shares. Additional payments
may be paid from Lord Abbett Distributor's own resources or from
distribution fees received from a fund and will be made in the form of cash
or, if permitted, noncash payments. The non-cash payments will include
business seminars at Lord Abbett's headquarters or other locations,
including meals and entertainment, or the receipt of merchandise. The cash
payments may include payment of various business expenses of the dealer.
In selecting dealers to execute portfolio transactions for a fund's
portfolio, if two or more dealers are considered capable of obtaining best
execution, we may prefer the dealer who has sold our shares and/or shares
of other Lord Abbett-sponsored funds.
Authorized Institutions. Institutions and persons permitted by law to
receive service and/or distribution fees under a Rule 12b-1 plan are
"authorized institutions." Lord Abbett Distributor is an Authorized
Institution.
Eligible Fund. An Eligible Fund is any Lord Abbett-sponsored fund except
for: (1) certain tax-free, single-state funds where the exchanging
shareholder is a resident of a state in which such fund is not offered for
sale; (2) Lord Abbett Equity Fund; (3) Lord Abbett Series Fund; and (4)
Lord Abbett U. S. Government Securities Money Market Fund (" GSMMF")
(except for holdings in GSMMF which are attributable to any shares
exchanged from the Lord Abbett family of funds). An Eligible Fund also is
any Authori zed Institution's affiliated money market fund satisfying Lord
Abbett Distributor as to certain omnibus account and other criteria.
Eligible Mandatory Distributions. If class B shares represent a part of an
individual's total IRA or 403(b) investment, the CDSC will be waived only
for that part of a mandatory distribution which bears the same relation to
the entire mandatory distribution as the class B share investment bears to
the total investment.
Legal Capacity. This term refers to the authority of an individual to act
on behalf of an entity or other person(s). For example, if a redemption
request were to be made on behalf of the estate of a deceased shareholder,
John W. Doe, by a person (Robert A. Doe) who has the legal capacity to act
for the estate of the deceased shareholder because he is the executor of
the estate, then the request must be executed as follows: Robert A. Doe,
Executor of the Estate of John W. Doe. That signature using that capacity
must be guaranteed by an Eligible Guarantor.
To give another example, if a redemption request were to be made on behalf
of the ABC Corporation by a person (Mary B. Doe) who has the legal capacity
to act on the behalf of the Corporation, because she is the president of
the Corporation, the request must be executed as follows: ABC Corporation
by Mary B. Doe, President. That signature using that capacity must be
guaranteed by an Eligible Guarantor (see example in right column).
Mutual Fund Advisory Program. This includes certain unaffiliated authorized
brokers, dealers, registered investment advisers or other financial
institutions who either (a) have an arrangement with Lord Abbett
Distributor in accordance with certain standards approved by Lord Abbett
Distributor, providing specifically for the use of fund shares (and
sometimes providing for acceptance of orders for such shares on our behalf)
Guaranteed signature. An acceptable
form of guarantee would be
GUARANTEED SIGNATURE. An acceptable form of guarantee would be as follows:
In the case of the estate --
Robert A. Doe
Executor of the Estate of
John W. Doe
[Date]
SIGNATURE GUARANTEED
MEDALLION GUARANTEED
NAME OF GUARANTOR
[SIGNATURE ILLEGIBLE]
- --------------------------------------------------
AUTHORIZED SIGNATURE
(960) X 9 6 0 3 4 7 0
SECURITIES TRANSFER AGENTS MEDALLION PROGRAM'sm'
SR
In the case of the corporation --
ABC Corporation
Mary B. Doe
By Mary B. Doe, President
[Date]
SIGNATURE GUARANTEED
MEDALLION GUARANTEED
NAME OF GUARANTOR
[SIGNATURE ILLEGIBLE]
- --------------------------------------------------
AUTHORIZED SIGNATURE
(960) X 9 6 0 3 4 7 0
SECURITIES TRANSFER AGENTS MEDALLION PROGRAM'sm'
SR
14 For More Information
<PAGE>
in particular investment products made available for a fee to clients of
such brokers, dealers, registered investment advisers and other financial
institutions, or (b) charge an advisory consulting or other fee for their
services and buy shares for their own accounts or the accounts of their
clients.
Purchaser. The term "purchaser" includes: (i) an individual; (ii) an
individual and his or her spouse and children under the age of 21; and
(iii) a trustee or other fiduciary purchasing shares for a single trust
estate or single fiduciary account (including a pension, profit-sharing, or
other employee benefit trust qualified under Section 401 of the Internal
Revenue Code - more than one qualified employee benefit trust of a single
employer, including its consolidated subsidiaries, may be considered a
single trust, as may qualified plans of multiple employers registered in
the name of a single bank trustee as one account), although more than one
beneficiary is involved.
Special Retirement Wrap Program. This is a program sponsored by an Authori
zed Institution showing one or more characteristics distinguishing it, in
the opinion of Lord Abbett Distributor, from a Mutual Fund Advisory
Program. Such characteristics include, among other things, the fact that an
Authorized Institution does not charge its clients any fee of a consulting
or advisory nature that is economically equivalent to the distribution fee
under the class A 12b-1 Plan and the fact that the program relates to
participantdirected Retirement Plans.
RECENT PERFORMANCE
U.S. stock markets were subject to significant volatility throughout the
fund's fiscal year. During the first half of the fiscal year, stocks
performed strongly, followed by sizable downdrafts during the summer
months, and a subsequent recovery from late September through November. We
believe much of the volatility was due to investors' growing reluctance to
bear risk in response to economic and political uncertainties in Japan, the
Pacific Rim, Russia and other emerging markets, and the impact that those
uncertainties might have on future U. S. corporate earnings. A series of
rate cuts initiated by the U. S. Federal Reserve Board helped to ease
investor concern later in the period. As a more optimistic view of global
economies emerged, stocks rallied with most sectors participating in the
upswing.
The fund experienced a period of transition in September/October as we
reorganized the portfolio to account for the new growth investment
strategy. Since the transition, the fund has performed well relative to its
benchmark, the Russell Mid-Cap Growth Index.
Year 2000 Issues. Each fund could be adversely affected if the computers used by
each fund and their service providers do not properly process and calculate
date-related information from and after January 1, 2000.
Lord Abbett is working to avoid such problems and has received assurances from
each fund's service providers that they are taking similar steps. Of course, the
Year 2000 problem is unprecedented and, therefore, Lord Abbett cannot eliminate
altogether the possibility that it or the fund will be affected.
For More Information 15
<PAGE>
FINANCIAL HIGHLIGHTS
This table describes the fund's performance for the fiscal periods
indicated." Total return" shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had
reinvested all dividends and distributions. These Financial Highlights have
been audited by Deloitte & Touche LLP, the fund's independent auditors, in
conjunction with their annual audit of the fund's financial statements.
Financial statements for the fiscal year ended November 30, 1998 and the
Independent Auditors' Report thereon appear in the Annual Report to
Shareholders for the fiscal year ended November 30, 1998 and are
incorporated by reference into the Statement of Additional Information,
which is available upon request. Certain information reflects financial
results for a single fund share.
<TABLE>
<CAPTION>
Class A Shares
-------------------------------------------------------------------------
Period Ended November 30,
Per Share Operating Performance: 1998 1997 1996 1995 (c)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.18 $12.84 $10.18 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .15 .23 .30 .10
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
- ------------------------------------------------------------------------------------------------------------------------------------
gain on investments .09 3.39 2.50 .08
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .24 3.62 2.80 .18
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (.37) (.28) (.12) --
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain (3.47) -- (.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.58 $16.18 $12.84 $10.18
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (b) 5.71% 28.90% 27.81% 1.80% (d)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, including waiver and reimbursements 0.02% .00% .00% 0.00% (d)
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, excluding waiver and reimbursements 1.60% 1.58% 2.39% 1.20% (d)
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1.14% 1.69% 2.67% 1.04% (d)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class B Shares Class C Shares
Period Ended November 30, Period Ended November 30,
Per Share Operating Performance: 1998 (c) 1998 (c)
<S> <C> <C>
Net asset value, beginning of period $10.41 $10.70
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income -- (a) -- (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
- ------------------------------------------------------------------------------------------------------------------------------------
gain on investments 2.16 1.89
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.16 1.89
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.57 $12.59
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (b)(d) 20.87% 17.66%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, including waiver and reimbursements 0.13% 0.13%
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, excluding waiver and reimbursements 0.34% 0.34%
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (0.08)% (0.10)%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Period Ended November 30,
---------------------------------------------------------------------------------
Supplemental Data For All Classes: 1998 1997 1996 1995 (c)
<S> <C> <C> <C> <C>
Net Assets, end of year (000) $4,723 $1,672 $1,462 $968
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 136.81% 52.86% 30.78% 1.55%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Amount less than $. 01.
(b) Total return does not consider the effects of sales loads and assumes
reinvestment of all distributions.
(c) Commencement of operations: August 1, 1995 (class A); October 16, 1998
(class B); and October 19, 1998 (class C).
(d) Not annualized. See Notes to Financial Statements.
16 Financial Information
<PAGE>
Financial Information
LINE GRAPH COMPARISON
Immediately below is a comparison of a $10,000 investment in class A shares
to the same investment in the RMCG Index, assuming reinvestment of all
dividends and distributions.
[GRAPHIC OMITTED]
(1) This reflects the deduction of the maximum initial sales charge of 5.75%
(2) This shows total return which is the percent change in value, after
deduction of the maximum initial sales charge of 5.75% applicable to class
A shares, with all dividends and distributions reinvested for the periods
shown ending November 30, 1998, using the SEC-required uniform method to
compute such return. Performance for the RMCG Index begins on 7/31/95.
Average Annual Total Return At Maximum Applicable
Sales Charge For The Period Ending November 30, 1998
1 Year Life
- --------------------------------------------------------------------------------
Class A (1) (. 40)% 16.67%
- --------------------------------------------------------------------------------
Financial Information 17
<PAGE>
COMPENSATION FOR YOUR DEALER
<TABLE>
<CAPTION>
FIRST YEAR COMPENSATION
Front-end
sales charge Dealer's
paid by investors concession Service fee (1) Total compensation (2)
Class A investments (% of offering price) (% of offering price) (% of net investment) (% of offering price)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Less than $50,000 5.75% 5.00% 0.25% 5.24%
- ------------------------------------------------------------------------------------------------------------------------------------
$50,000 -$99,999 4.75% 4.00% 0.25% 4.24%
- ------------------------------------------------------------------------------------------------------------------------------------
$100,000 -$249,999 3.95% 3.25% 0.25% 3.49%
- ------------------------------------------------------------------------------------------------------------------------------------
$250,000 -$499,999 2.75% 2.25% 0.25% 2.49%
- ------------------------------------------------------------------------------------------------------------------------------------
$500,000 -$999,999 1.95% 1.75% 0.25% 2.00%
- ------------------------------------------------------------------------------------------------------------------------------------
$1 million or more (3) or Retirement Plan -100 or more
eligible employees (3) or Special Retirement Wrap Program (3)
- ------------------------------------------------------------------------------------------------------------------------------------
First $5 million no front-end sales charge 1.00% 0.25% 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Next $5 million above that no front-end sales charge 0.55% 0.25% 0.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Next $40 million above that no front-end sales charge 0.50% 0.25% 0.75%
- ------------------------------------------------------------------------------------------------------------------------------------
Over $50 million no front-end sales charge 0.25% 0.25% 0.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Class B investments Paid at time of sale (% of net asset value)
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge 3.75% 0.25% 4.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Class C investments
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge 0.75% 0.25% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Class P investments Percentage of average net assets
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge 0.25% 0.20% 0.45%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
ANNUAL COMPENSATION AFTER FIRST YEAR
<S> <C> <C> <C> <C>
Class A investments
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge none 0.25% 0.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Class B investments Percentage of average net assets (4)
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge none 0.25% 0.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Class C investments
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge 0.75% 0.25% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Class P investments
- ------------------------------------------------------------------------------------------------------------------------------------
All amounts no front-end sales charge 0.25% 0.20% 0.45%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The service fee for class A and P shares is paid quarterly. The first
year's service fee on class B and C shares is paid at the time of sale.
(2) Dealer's concession percentages and service fee percentages are calculated
from different amounts, and therefore may not equal total compensation
percentages if combined using simple addition. Additional Concessions may
be paid to Authorized Institutions, such as your dealer, from time to time.
(3) Concessions are paid at the time of sale on all class A shares sold during
any 12-month period starting from the day of the first net asset value
sale. With respect to (a) class A share purchases at $1 million or more,
sales qualifying at such level under rights of accumulation and statement
of intention privileges are included and (b) for Special Retirement Wrap
Programs, only new sales are eligible and exchanges into the fund are
excluded.
(4) With respect to class B, C and P shares, 0.25%, 1.00% and 0.45%,
respectively, of the average annual net asset value of such shares
outstanding during the quarter (including distribution reinvestment shares
after the first anniversary of their issuance) is paid to Authorized
Institutions, such as your dealer. These fees are paid quarterly in
arrears.
18 Financial Information
<PAGE>
More information on this fund is available free upon request, including
the following:
ANNUAL/SEMI-ANNUAL REPORT
Describes the fund, lists portfolio holdings and contains a letter from
the fund's manager discussing recent market conditions and the funds'
investment strategies.
STATEMENT OF ADDITIONAL INFORMATION ("SAI")
Provides more details about the fund and its policies. A current SAI is
on file with the Securities and Exchange Commission ("SEC") and is
incorporated by reference (is legally considered part of this
prospectus).
To obtain information:
By telephone. Call the fund at:
800-426-1130
By mail. Write to the fund at:
The Lord Abbett Family of Funds
767 Fifth Avenue
New York, NY 10153-0203
Via the Internet.
Lord, Abbett & Co.
http://www.lordabbett.com
Text only versions of fund documents can be viewed online or downloaded from:
SEC http://www.sec.gov
You can also obtain copies by visiting the SEC's Public Reference Room in
Washington, DC (phone 800-SEC-0330) or by sending your request and a duplicating
fee to the SEC's Public Reference Section, Washington, DC 20549-6009.
Lord Abbett Growth Opportunities Fund
The General Motors Building
767 Fifth Avenue
New York, NY 10153-0203
- -----------------------
SEC file number: 811-6650
LAGOF-1-499
(4/99)
