Lord Abbett Growth Opportunities Fund
1999 Annual Report
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A portfolio of mid-sized
growth companies
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Report to Shareholders
For the Fiscal Year Ended November 30, 1999
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Robert S. Dow
Chairman
December 6, 1999
We believe that many mid-sized growth companies continue to be appealing. Going
forward, we are optimistic that the relative outperformance of small- and
mid-cap growth stocks will continue."
Lord Abbett Growth Opportunities Fund completed its fiscal year on November 30,
1999 with a net asset value of $18.89 per Class A share versus $12.58 on
November 30, 1998. The Fund's total return over the same period was 50.04%.* The
Fund primarily invests in mid-sized, U.S.-based companies from which Lord Abbett
expects above-average growth.
Increasing Portfolio Diversification
The stock market rebounded sharply in the fourth quarter, with stocks of small-
and mid-sized growth companies asserting their leadership versus large company
growth stocks. Despite their strong fourth quarter rally, small- and mid-cap
stocks remained relatively cheap on a price-to-earnings basis, often trading at
a discount to large-cap stocks. In addition, the average small- and mid-cap
growth company offered higher rates of expected earnings growth than the average
large-cap company, confirming the opportunities that exist in this segment of
the market.
During the period, we focused on increasing portfolio diversification both
across and within sectors. The Fund's investments in technology companies
continued to be significant positive contributors. The Fund's technology
holdings included companies from many diverse areas, such as telecommunication
services, software developers, and select equipment manufacturers. We increased
our emphasis on technology-related companies, all of which turned out strong
performances during the fourth quarter. The ever-increasing demand for wireless
communication services and products and increased broadband access has benefited
several of the portfolio's major holdings.
Stock performance for many companies in the financial and healthcare services
sectors continued to be disappointing, but the Fund was not hurt significantly,
as our weightings in these sectors has been relatively moderate. While
healthcare services companies continued to suffer from government and managed
care-mandated price reductions, select pharmaceutical companies entered into a
new era of profitability as new products were introduced to the market.
Mid-Cap Growth Potential - The Road Ahead
We believe that many mid-sized growth companies continue to be appealing. Going
forward, we are optimistic that the relative outperformance of small- and
mid-cap growth stocks will continue. If the economy experiences a slowdown, we
believe that the appeal of rapidly growing companies will only increase.
Although there are few signs of actual inflation problems today, we are watching
closely for a possible acceleration in the rate of inflation. In our opinion,
the long-term growth opportunities for select companies in the technology,
healthcare and business services sectors for the New Year are outstanding.
We are pleased that you have chosen Lord Abbett Growth Opportunities Fund as an
investment vehicle in your diversified portfolio. We value the trust that you
place in us, and look forward to serving your investment needs in the years to
come. As we enter the New Year, we wish you all the best.
*Total return is the percent change in net asset value assuming the reinvestment
of all distributions.
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Strong Fund Performance
Comparison of the change in value of a $10,000 investment, 8/1/95-11/30/99, in
Lord Abbett Growth Opportunities Fund and the Lipper Mid-Cap Growth Funds
Average, the unmanaged Russell 2000 Index and Russell Mid-Cap Growth Index.
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Growth Opportunities Fund /1 $26,600
Lipper Mid-Cap Growth Funds Average/2 $23,773
Russel 2000 Index/3 $16,062
Russell Mid-Cap Growth Index/4 $23,040
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(1) The Fund (Class A shares) commenced operations 8/1/95. Reflects the
reinvestment of all distributions at net asset value.
(2) Source: Lipper, Inc. The Lipper Mid-Cap Growth Funds Average represents
funds that, by prospectus or portfolio practice, invest at least 75% of
their equity assets in companies with market capitalizations (on a
three-year weighted basis) of less than 300% of the dollar-weighted median
market capitalization of the S&P Mid-Cap 400 Index. Calculated from
7/31/95.
(3) Russell 2000 Index measures the performance of the 2,000 smallest companies
in the Russell 3000 Index, which represents approximately 8% of the total
market capitalization of the Russell 3000 Index. Calculated from 7/31/95.
(4) Russell Mid-Cap Growth Index measures the performance of those Russell
Mid-Cap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000 Growth
Index. Calculated from 7/31/95.
SEC-Required Information
Average annual compounded returns for periods ended 12/31/99, at the Class A
maximum sales charge of 5.75%, with all distributions reinvested:
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1 year 49.00%
Life of Fund (8/1/95 Inception) 27.31%
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Past performance is no indication of future results. The investment return and
principal value of an investment in the Fund will fluctuate so that shares, on
any given day or when redeemed, may be worth more or less than their original
cost.
Important Information
Common stocks purchased by the Fund are subject to market fluctuations,
providing the potential for gains and the risk of loss. Starting in October
1998, Growth Opportunities Fund changed its investment strategy to one
emphasizing growth-oriented investments. Performance results quoted herein
reflect past performance, current sales charges (where applicable) and
appropriate Rule 12b-1 Plan expenses from commencement of the Plan. Past
performance is no indication of future results. Tax consequences are not
reflected. The investment return and principal value of an investment will
fluctuate so that shares, on any given day or when redeemed, may be worth more
or less than their original cost. The Fund issues additional shares with
distinct pricing options. For a full disclosure of the differences in pricing
alternatives, please call Lord Abbett Distributor LLC at 800-874-3733 and ask
for the Funds current prospectus. If used as sales material after 3/31/00, this
report must be accompanied by Lord Abbetts Performance Quarterly for the most
recently completed calendar quarter.
1
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Statement of Net Assets
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November 30, 1999
Investments Shares Value
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Investments in Common Stocks
95.07%
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Apparel 2.43% * Jones Apparel Group Inc. 34,800 $ 928,725
* Tommy Hilfiger Corp. 21,200 522,050
Total 1,450,775
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Banks: National Commerce
Regional .63% Bancorp 15,000 378,750
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Biotechnology
2.21% * Immunex Corp. 18,600 1,318,275
Building
Materials 1.45% * Royal Group Technologies 40,000 862,500
Ltd.
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Business * Acxiom Corp. 45,000 800,156
Services 5.83% * CSGSystems International 12,000 523,500
* Internet Capital Group LLC 3,000 504,000
* Navigant Consulting Co. 4,600 48,875
* Safeguard Scientifics Inc. 5,900 655,638
* Stamps.Com Inc. 12,000 944,250
Total 3,476,419
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Capital Diebold Inc. 12,000 275,250
Goods 1.38% * Republic Services Inc. 44,000 547,250
Total 822,500
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Communications
Technology 1.64% * QUALCOMM Inc. 2,700 978,244
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Computer: * Ciber Inc. 19,400 413,462
Services 4.01% * Keane Inc. 12,000 324,000
* Mastech Corp. 19,000 357,438
* USWeb Corp. 31,300 1,296,994
Total 2,391,894
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Computer:
Hardware 1.40% * American Power Conversion 35,000 833,437
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Computer: * Akamai Technologies Inc. 3,500 829,500
Software 18.73% * Aspect Development Inc. 6,900 329,475
* BEA Systems Inc. ADR 13,000 1,056,250
* Checkfree Holdings Corp. 16,500 1,083,844
* Legato Systems Inc. 16,000 1,080,500
* Lernout & Hauspie Speech
Products NV 22,000 827,750
National Computer
Systems Inc. 12,000 460,500
* National Instruments
Corp. 26,000 780,000
* Network Solutions Inc. 9,000 1,349,438
* Netzero Inc. 25,000 531,250
* Peoplesoft Inc. 73,700 1,386,481
* Synopsys Inc. 15,000 1,085,625
* VeriSign Inc. 2,000 371,625
Total 11,172,238
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Construction/Home
Building .54% * Catellus Development Corp.25,000 323,437
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Consumer
Products .76% * Smithfield Foods Inc. 17,700 453,562
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Drugs 1.61% * Medimmune Inc. 8,000 961,500
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Electronics:
Equipment/ * Sensormatic
Components 2.17% Electronics Corp. 81,300 1,295,719
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Electronics: Dallas Semiconductor Corp. 6,000 346,125
Semiconductors * Galileo Technology Ltd. 24,000 547,500
3.02% * LSI Logic Corp. 15,000 906,563
Total 1,800,188
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Shares or
Investments Principal Amount Value
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Entertainment
1.46% * SFXEntertainment Inc. ADR 25,800 $ 870,750
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Financial AMBAC Financial Group Inc.26,200 1,427,900
Services 4.61% * AmeriCredit Corp. 77,600 1,319,200
Total 2,747,100
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Healthcare Alpharma Inc. Class A 15,500 496,000
Products 5.23% * Elan Corp. plc ADR 15,100 413,362
* Forest Laboratories
Class A 10,000 511,875
* Ivax Corp. 18,000 365,625
Teva Pharmaceutical ADR 24,300 1,333,463
Total 3,120,325
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Instrumentation
1.23% * Waters Corp. 15,000 735,000
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Metals & Minerals
.57% * Stillwater Mining Company 14,100 341,925
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Miscellaneous * Go2net Inc. 7,000 511,437
3.41% * XOOM.Com Inc. 20,000 1,520,000
Total 2,031,437
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Oil: Crude
Producers 1.34% * Barrett Resources Corp. 30,000 796,875
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Publishing .86% Hollinger International Inc.
Class A 41,000 515,063
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Radio & TV * AMFM Inc. 16,800 1,187,550
Broadcast 2.74% * Emmis Communications Corp. 5,500 445,500
Total 1,633,050
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Restaurants 2.09% * Papa John's International Inc.20,700 743,259
* Starbucks Corp. 19,000 504,688
Total 1,247,947
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Retail 4.43% * American Eagle Outfitters 33,200 1,516,825
Claire's Stores Inc. 35,000 759,063
* Ticketmaster Online-
CitySearch Inc. 13,000 368,875
Total 2,644,763
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Retail:
Specialty 2.38% * Michaels Stores Inc. 45,300 1,421,287
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Services 4.03% * Convergys Corp. 88,000 2,403,500
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Telecommunication * Antec Corp. 14,400 806,400
Equipment 3.49% * Plantronics Inc. 20,200 1,272,600
Total 2,079,000
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Tele-
communications * Broadwing Inc. 35,600 1,036,850
9.39% * Crown Castle
International Corp. 45,300 954,131
* Sykes Enterprises Inc. 24,000 958,500
* TeleCorp PCS Inc. 50,000 1,803,125
* Viatel Inc. 8,300 348,600
* West Teleservices Corp. 28,900 498,525
Total 5,599,731
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Total Investments in
Common Stocks
(Cost $45,891,746) 56,707,191
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Short-Term Investments
6.18%
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American General
Finance Corp. 5.70%
due 12/1/1999 $1,305,000 1,305,000
2
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Statement of Net Assets
November 30, 1999
Investments Principal Amount Value
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Associates Corp.
5.68% due 12/1/1999 $2,380,000 $ 2,380,000
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Total Short-Term Investments
(Cost $3,685,000) 3,685,000
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Total Investments 101.25%
(Cost $49,576,746) 60,392,191
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Cash and Receivables, Net of Liabilities (1.25)% (744,703)
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Net Assets 100.00% $59,647,488
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<TABLE>
<CAPTION>
<S> <C>
Class A Shares-Net asset value ($40,252,412/2,130,826 shares outstanding) $18.89
Maximum offering price (net asset value plus sales charge of 5.75% of the offering price) $20.04
Class B Shares-Net asset value ($10,954,442/583,406 shares outstanding) $18.78
Class C Shares-Net asset value ($8,437,661/449,715 shares outstanding) $18.76
Class Y Shares-Net asset value ($2,973.31/156.971 shares outstanding) $18.94
*Non-income producing security.
ADR American Depositary Receipt
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Investment Income Year Ended November 30, 1999
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<S> <C> <C> <C>
Income Dividends (net of $86 of foreign taxes withheld) $ 54,435
Interest 63,717
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Total income $ 118,152
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Expenses Management fee 159,804
Management fee waived (159,804)
12b-1 distribution plan-Class A 45,762
12b-1 distribution plan-Class B 23,804
12b-1 distribution plan-Class C 18,664
Shareholder servicing 25,023
Registration 23,085
Reports to shareholders 14,293
Professional 8,250
Other 650
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Total expenses before reimbursements 159,531
Expenses assumed by Lord Abbett (58,426)
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Net expenses 101,105
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Net investment income 17,047
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Realized and Unrealized Gain on Investments
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Net realized gain from investment transactions 1,508,482
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Net change in unrealized appreciation of investments 10,365,297
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Net realized and unrealized gain on investments 11,873,779
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Net Increase in Net Assets Resulting from Operations $11,890,826
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See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended Year Ended
November 30, November 30,
Increase in Net Assets 1999 1998
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<S> <C> <C>
Operations Net investment income $ 17,047 $ 24,409
Net realized gain from investment transactions 1,508,482 233,346
Net change in unrealized appreciation of investments 10,365,297 64,603
Net increasein net assets from operations 11,890,826 322,358
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Undistributed net investment income included in price of share transactions - 1,127
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Dividends and distribution to shareholders from:
Net investment income - (43,200)
Net realized gain from investment transactions - (405,260)
Total - (448,460)
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Capital share transactions:
Net proceeds from sales of shares 47,393,509 3,761,157
Net asset value of shares issued in reinvestment of dividends and distributions - 439,363
Total 47,393,509 4,200,520
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Cost of shares reacquired (4,359,957) (1,024,926)
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Increase in net assets derived from capital share transactions 43,033,552 3,175,594
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Increase in net assets 54,924,378 3,050,619
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Net Assets:
Beginning of year 4,723,110 1,672,491
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End of year (including undistributed net investment income of $17,284 and $237, $59,647,488 $4,723,110
respectively)
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See Notes to Financial Statements.
</TABLE>
3
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<TABLE>
<CAPTION>
Financial Highlights
Class A Shares
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August 1, 1995
(Commencement
Year Endedof Operations) to
November 30, November 30,
Per Share Operating Performance: 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.58 $16.18 $12.84 $10.18 $10.00
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Income from investment operations
Net investment income .04(e) .15 .23 .30 .10
Net realized and unrealized gain on investments 6.27 .09 3.39 2.50 .08
Total from investment operations 6.31 .24 3.62 2.80 .18
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Distributions from:
Net investment income - (.37) (.28) (.12) -
Net realized gain on investments - (3.47) - (.02) -
Total distributions - (3.84) (.28) (.14) -
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Net asset value, end of year $18.89 $12.58 $16.18 $12.84 $10.18
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Total Return(b) 50.04% 5.71% 28.90% 27.81% 1.80%(d)
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Ratios to Average Net Assets:
Expenses, including waiver and reimbursements .41% .02% .00% .00% .00%(d)
Expenses, excluding waiver and reimbursements 1.64% 1.60% 1.58% 2.39% 1.20%(d)
Net investment income .25% 1.14% 1.69% 2.67% 1.04%(d)
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Class B Shares Class C Shares Class Y Shares
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October 16, October 19, December 9,
1998(c) to 1998(c) to 1998(c) to
November 30, November 30, November 30,
Per Share Operating Performance: 1999 1998 1999 1998 1999
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Net asset value, beginning of period $12.57 $10.41 $12.59 $10.70 $12.76
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Income from investment operations
Net investment income (loss) (.06)(e) -(a) (.06)(e) -(a) .09(e)
Net realized and unrealized gain on investment 6.27 2.16 6.23 1.89 6.09
Total from investment operations 6.21 2.16 6.17 1.89 6.18
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Net asset value, end of year $18.78 $12.57 $18.76 $12.59 $18.94
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Total Return (b) 49.32% 20.75%(d) 49.01% 17.66%(d) 48.43%(d)
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Ratios to Average Net Assets:
Expenses, including waiver and reimbursements 1.07% .13%(d) 1.07% .13%(d) .06%(d)
Expenses, excluding waiver and reimbursements 2.30% .34%(d) 2.30% .34%(d) 1.27%(d)
Net investment income (loss) (.40)% (.08)%(d) (.40)% (.10)%(d) .62%(d)
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August 1, 1995
(Commencement
Year Endedof Operations) to
November 30, November 30,
Supplemental Data For All Classes: 1999 1998 1997 1996 1995
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Net assets, end of year (000) $59,647 $4,723 $1,672 $1,462 $968
Portfolio turnover rate 104.87% 136.81% 52.86% 30.78% 1.55%
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</TABLE>
(a) Amount less than $.01.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Commencement of operations of respective class shares.
(d) Not annualized.
(e) Calculated using average shares outstanding during the period. See Notes to
Financial Statements.
4
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Notes to Financial Statements
1. Significant Accounting Policies
Lord Abbett Research Fund, Inc. (the "Company") is an open-end management
investment company incorporated under Maryland law on April 26, 1992. The
Company consists of three separate portfolios. This report covers one of the
portfolios-Lord Abbett Growth Opportunities Fund ("Series"). The Series is
diversified as defined under the Investment Company Act of 1940. The financial
statements have been prepared in conform ity with generally accepted accounting
principles which require management to make certain estimates and assumptions at
the date of the financial statements. The following summarizes the significant
accounting policies of the Series.
(a) Security valuation is determined as follows: Portfolio securities listed or
admitted to trad ing 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 ask prices on such exchange, or, in the case of bonds, in the
over-the-counter market if, in the judgment of the Company's officers, that
market more accurately reflects the market value of the bonds. Securities traded
only in the over-the-counter market are valued at the mean between the last bid
and ask prices, except that securities admitted to trading on the NASDAQ
National Market System are valued at the last sales price if it is determined
that such price more accurately reflects the value of such securi ties.
Short-term securities maturing in 60 days or less are valued at amortized cost
which approximates market value. Securities for which market quotations are not
available are valued at fair value under procedures approved by the Board of
Directors.
(b) It is the policy of the Series to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its taxable income. Therefore, no federal income tax provision is required.
(c) 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. Net
investment income (other than distribution and service fees) and realized and
unrealized gains or losses are allocated to each class of shares based upon the
relative proportion of net assets at the beginning of the day.
(d) Prior to December 1, 1998, the Series followed the accounting practice of
equalization whereby a portion of the proceeds from the sales and costs of
repurchases of capital shares was allocated to undistributed net investment
income. Effective December 1, 1998, the Series discontinued the use of
equalization. Discontinuing the use of equalization results in a simpler and
more meaningful financial statement presentation.
(e) The organization expenses of the Series are amortized evenly over a period
of five years.
2. Management Fee and Other Transactions with Affiliates
The Series has a management agreement with Lord, Abbett & Co. ("Lord Abbett")
pursuant to which Lord Abbett supplies the Series with investment management
services, and executive and other personnel, pays the remuneration of officers,
provides office space and pays for ordinary and necessary office and clerical
expenses relating to research, statistical work and the supervision of the
Series' investment portfolio. The management fee paid is based on average daily
net assets for each month at the annual rate of 0.90 of 1%. Lord Abbett waived
its management fee for the year ended November 30, 1999.
The Series has Rule 12b-1 plans and agreements (the "Class A, Class B and Class
C Plans") with Lord Abbett Distributor LLC ("Distributor"), an affiliate of Lord
Abbett. The Series makes payments to Distributor, which uses or passes on such
payments to authorized institutions. Pursuant to the Class A Plan, the Series
pays Distributor: (1) an annual service fee of 0.25% of the average daily net
asset value of Class A shares, (2) a one-time distribution fee of up to 1% on
certain qualifying purchases, and (3) an annual distribution fee of 0.10% of the
average daily net asset value of Class A shares. Pursuant to the Class B and
Class C Plans, the Series pays Distributor an annual service and distribution
fee of 0.25% and 0.75%, respectively, of the average daily net asset value of
the shares outstanding. Class Y does not have a Rule 12b-1 plan. At November 30,
1999, the 12b-1 fee payable was $25,333.
Distributor received $121,793, representing payment of commissions on sales of
Class A shares, after deducting $687,962 allowed to authorized distributors as
concessions.
Certain of the Series' officers and directors have an interest in Lord Abbett.
3. Capital
The Company has authorized 150 million shares of $.001 par value capital stock
desig nated as follows: Class A-50 million, Class B -30 million, Class C-20
million, Class P -20 million, Class Y-30 million. Paid in capital amounted to
$47,264,859 at November 30, 1999. Prior to October 1, 1998, all outstanding
shares of the Series were held by directors and officers of the Company, and by
partners and employees of Lord Abbett.
Transactions in capital stock were as follows:
Year Ended Nov. 30, 1999 Year Ended Nov. 30, 1998
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Class A Shares Amount Shares Amount
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Sales of shares 2,010,484 $31,122,767 282,010 $3,261,131
Shares issued to
shareholders in
reinvestment of
dividends and
distributions - - 38,922 439,363
Total 2,010,484 31,122,767 320,932 3,700,494
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Shares reacquired (212,825) (3,631,283) (91,140) (1,024,908)
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Increase 1,797,659 $27,491,484 229,792 $2,675,586
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Year Ended Nov. 30, 1999 Oct. 16, 1998* to Nov. 30, 1998
- --------------------------------------------------------------------------------
Class B Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 583,643 $ 9,180,995 18,197 $211,217
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Shares reacquired (18,432) (294,430) (2) (18)
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Increase 565,211 $ 8,886,565 18,195 $211,199
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Year Ended Nov. 30, 1999Oct. 19, 1998* to Nov. 30, 1998
- --------------------------------------------------------------------------------
Class C Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 450,156 $ 7,087,621 24,003 $288,809
Sales reacquired (24,444) (434,244) - -
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Increase 425,712 $ 6,653,377 24,003 $288,809
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Dec. 9, 1998* to Nov. 30, 1999
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Class Y Shares Amount
- --------------------------------------------------------------------------------
Sales of shares 157 $2,126
Increase 157 $2,126
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*Commencement of operations of respective class shares.
NOTE: There was no capital stock activity for Class P shares during the year.
4. Distributions
Distributions from net investment income and net realized gain from investment
transactions, if any, are distributed to shareholders annually. At November 30,
1999, accumulated net realized gain for the Series was $1,549,900.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from methods used to determine the
corresponding income and capital gains amounts in accordance with generally
accepted accounting principles.
Distributions declared on December 9, 1999 and paid on December 17, 1999, to
shareholders of record on December 9, 1999 were as follows:
Rate Per Share Aggregate Amount
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Net Investment Income-Class A $0.0127 $ 30,312
Net Investment Income-Class Y $0.0382 $ 6
Capital Gains-Class A $0.1939 $462,790
Capital Gains-Class B $0.1939 $127,681
Capital Gains-Class C $0.1939 $ 97,997
Capital Gains-Class Y $0.1939 $ 30
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5. Purchases and Sales of Securities
Purchases and sales of investment securities (other than short-term investments)
for the year ended November 30, 1999 aggregated $57,824,358 and $17,310,040,
respectively.
As of November 30, 1999, net unrealized appreciation for federal income tax
purposes aggregated $10,815,445 of which $11,790,033 related to appreciated
securities and $974,588 related to depreciated securities.
The cost of investments for federal income tax purposes is substantially the
same as that used for financial reporting purposes.
6. Directors' Remuneration
The Directors of the Company associated with Lord Abbett and all officers of the
Company receive no compensation from the Company for acting as such. Outside
Directors' fees and retirement costs are allocated among all funds in the Lord
Abbett group based on the net assets of each fund.
7. Line of Credit
Each Series, along with certain other funds managed by Lord Abbett, has
available a $200,000,000 unsecured revolving credit facility ("Facility"), from
a consortium of banks, to be used for temporary or emergency purposes as an
additional source of liquidity to fund redemptions of investor shares. Any
borrowings under this Facility will bear interest at current market rates as
defined in the agreement. The fee for this Facility was at an annual rate of
0.06% during the year. Effective December 17, 1999, this fee was increased to
0.09% per annum. There were no loans outstanding pursuant to this Facility at
November 30, 1999, nor was the Facility utilized at any time during the year.
Copyright(C)2000 by Lord Abbett Growth Opportunities Inc., 90 Hudson Street,
Jersey City, NJ 07302-3973
This publication, when not used for the general information of shareholders of
Lord Abbett Growth Opportunities, is to be distributed only if preceded or
accompanied by a current prospectus which includes information concerning the
Series' Investment objective and policies, sales charges and other matters.
There is no guarantee that the forecasts contained in this publication will come
to pass. All rights reserved. Printed in the U.S.A.
LAGOPF-3-1199
(1/00)
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Independent Auditors' Report
The Board of Directors and Shareholders,
Lord Abbett Growth Opportunities Fund:
We have audited the accompanying statement of net assets of Lord Abbett Growth
Opportunities Fund as of November 30, 1999, the related statements of operations
for the year then ended and of changes in net assets for each of the years in
the two-year period then ended and the financial highlights for each of the
periods presented. These financial statements and the financial highlights are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at November
30, 1999 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Lord Abbett Growth
Opportunities Fund at November 30, 1999, the results of its operations, the
changes in its net assets and the financial highlights for each of the periods
presented in conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
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Deloitte & Touche LLP
New York, New York
January 28, 2000
Copyright(C)2000 by Lord Abbett Growth Opportunities, Inc., 90 Hudson Street,
Jersey City, NJ 07302-3973
This publication, when not used for the general information of shareholders of
Lord Abbett Growth Opportunities is to be distributed only if preceded or
accompanied by a current prospectus which includes information concerning the
Fund's investment objective and policies, sales charges and other matters.
Please read the prospectus carefully before you invest. There is no guarantee
that the forecasts contained within this publication will come to pass.
All rights reserved. Printed in the U.S.A.
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 OurWeb Site:
www.lordabbett.com
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Lord Abbett mutual fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC 90 Hudson Street Jersey City, New Jersey 07302-3973
LAGOF-2-1199
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