Lord Abbett Securities Trust
o Growth & Income Series
o International Series
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED APRIL 30, 1997
Investment portfolios
designed to help you
capture capital growth
over the long term
[logo](R)
<PAGE>
Report to Shareholders
For the Six Months Ended April 30, 1997
- ------------------------------------
ROBERT S. DOW
CHAIRMAN
MAY 16, 1997
Table of Contents
Growth & Income Series
- ------------------------------------
Fund Facts 1
Statement of Net Assets 3
International Series
- ------------------------------------
Fund Facts 1
Statement of Net Assets 6
Data on Both Series
- ------------------------------------
Statements of Operations 8
Statements of Changes
in Net Assets 9
Financial Highlights 10
Notes to Financial Statements 11
Lord Abbett Securities Trust -- Growth & Income Series and International Series
completed the first half of their fiscal year on April 30, 1997. The
International Series commenced operations on December 13, 1996. Below is an
overview of class-specific data as of the close of the period.
Growth & Income Series International Series
------------------------ -----------------------------
6 Months Ended 4/30/97 12/13/96* - 4/30/97
------------------------ -----------------------------
Class A Class C Class A
- ------------------------------------------------ -----------------------------
Net asset value $ 7.85 $ 7.84 $10.05
Dividends $ 0.054 $ 0.027 --
Capital gains $ 0.075 $ 0.075 --
Total return+ +12.6%++ +12.1%++ +6.6%++
About the Growth & Income Series
Over the past six months, the U.S. stock market reached new heights and
experienced a correction. This occurred against a background of surprising
strength in the economy, concerns of inflation and a volatile interest-rate
environment. During the period, a change in the consensus view of both the
economy and the direction interest rates would take, in the short term, impacted
your portfolio.
The Series' performance over the period can be attributed to our significant
exposure to financial service stocks, which had strong performance in both the
fourth quarter of 1996 and first quarter of 1997. Takeover bids on a couple of
our savings and loans holdings positively affected the portfolio.
We anticipate a slowing economy for the second half of 1997 and are watchful of
a more difficult environment on the earnings front, as some industrial companies
may have difficulty meeting earnings expectations. Given our economic forecast,
we are significantly invested in drug, healthcare and food companies, which
should do well in a slowing economic environment. In addition, we maintain a
significant exposure to financial service stocks. The probability that interest
rates will decline toward the end of 1997, and the relatively conservative
valuation levels in those stocks, should keep us well positioned going forward.
About the International Series
The Series focuses its research efforts at identifying "best-of-breed" foreign
companies. In other words, our selection process is based on a "bottom-up"
strategy and focuses on companies, outside the U.S., that are the best at what
they do. Geographical sector or market capitalization are not major factors in
choosing investments.
Your Series enjoyed strong performance over the period due in large part to
gains made by Scandinavian banks and multi-industry companies domiciled in
Germany and Canada. We expect to see continued earnings growth in Europe, driven
by corporate restructurings and a steady expansion in sales. Specifically, our
German and French holdings present attractive investment opportunities in
companies poised for strong future earnings growth.
We are confident that our disciplined, bottom-up approach to investing will
prove rewarding to our investors over the long term. It is our pleasure to know
that Lord Abbett Securities Trust is a part of your investment portfolio and
thank you for the confidence you have placed in us.
* Commencement of operations.
+ Total return is the percent change in net asset value, assuming the
reinvestment of all distributions.
++ Not annualized.
<PAGE>
Fund Facts
Lord Abbett Securities Trust - Growth & Income Series -- A Strong Performer
Average Annual Class C Share Total Return(1) as of 4/30/97
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
1 Year 19.2%
3 Years 20.1%
Life of Series(2) 16.9%
(1) Reflects the percent change in net asset value (for Class C shares) which
includes the reinvestment of all distributions. The Series issues
additional classes of shares (Classes A and B) with distinct pricing
options. For a full discussion of the differences in pricing alternatives,
please call Lord Abbett Distributor LLC at 800-874-3733 and ask for the
current prospectus.
(2) The Series commenced operations on 1/3/94. Formerly Lord Abbett Securities
Trust - Growth & Income Trust.
Lord Abbett Securities Trust - International Series -- Off to a Strong Start
Total Returns(1): 12/31/96-4/30/97
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
International Series 6.1%
Lipper International Fund Average(2) 1.5%
(1) The Series commenced operations on 12/13/96. Figures are not annualized and
are at net asset value for Class A shares. Effective June 1, 1997, Class B
and C shares of the Series became available. For a full discussion of the
differences in pricing alternatives, please call Lord Abbett Distributor
LLC at 800-874-3733 and ask for the current prospectus.
(2) Source: Lipper Analytical Services.
Growth & Income Series
SEC-required average annual total returns (for Class C shares) for the periods
ended 3/31/97, with all distributions reinvested:
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
1 Year 14.60%
Life of Series 15.88%
International Series
SEC-required average annual total return for Class A shares at the maximum sales
charge of 5.75% for the period 12/13/96 (commencement of operations) through
3/31/97, with all distributions reinvested:
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Life of Series .60%
Past performance is not an indication of future results. 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.
1
<PAGE>
When Searching the Globe for the Best Investment Opportunities ...
Rely On An Experienced Global Manager ...
Lord, Abbett & Co. is a minority owner of the International Series'
sub-adviser's parent company, Fuji Investment Management Co., Ltd. (FIMCO).
FIMCO is:
o An investment management affiliate of Fuji Bank, one of the world's largest
banks
o A money manager whose services, until now, had been available only to
large, institutional accounts
o An asset manager with offices in Tokyo and London serving the pension
investment needs of many premier international companies, including:
Bridgestone NISSAN
Canon National Steel Corporation
Hitachi SONY
... And a Solid Investment Strategy:
Our strategy is based on the timely purchase of undervalued foreign companies
which have focused on benefiting from the future changes within their industry.
Our disciplined research process involves:
o examining global trends to identify developments on an industry-by-industry
basis;
o using this information, along with our research and experience, to try to
define the ideal company within each industry; and
o assessing the companies in each industry to determine which are
"best-of-breed." In other words, determining which ones best match our
ideal company, based on a blend of both quantitative and fundamental
analysis.
The International Series' portfolio consists of 40-50 such companies, which meet
our goal of creating a portfolio where the performance of individual holdings is
not diluted across too many securities.
Diversify: To Maximize Your Opportunity.
To Minimize Your Risk.
Diversification - Diversificazione - Diversificacion
At any given time, the world's economies are developing at different rates.
Factors affecting one region--political, social or economic events--might not be
affecting another. Similarly, the performances of foreign companies usually do
not move in lockstep with domestic companies. So it is possible to increase
total returns and reduce overall portfolio volatility by adding foreign stocks
to a portfolio of U.S. stocks.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
[INSERT PLOT POINTS]
Derived using returns from December 1969 to March 1997. The chart above does not
represent the actual holdings of the International Series. Source: Morgan
Stanley Capital International.
2
<PAGE>
Important Information
Results quoted herein reflect appropriate Rule 12b-1 Plan expenses from
commencement of the Plan. Tax consequences are not reflected. If used as sales
material after 6/30/97, this report must be accompanied by Lord Abbett's
Performance Quarterly for the most recently completed calendar quarter.
Foreign investment risk factors include the potential for less regulation and
liquidity and more volatility than U.S. markets; currency fluctuation;
potentially less publicly-available information about companies, banks and
governments than for U.S. counterparts; lack of uniform accounting standards
among countries, impairing comparisons; potentially higher transaction costs and
different securities settlement practices.
Statement of Net Assets
GROWTH & INCOME SERIES April 30, 1997
<TABLE>
<CAPTION>
Investments Shares Market Value
====================================================================================================================================
Common Stocks 95.01%
====================================================================================================================================
<S> <C> <C> <C>
Aerospace 1.27% Boeing Co.-World's leading commercial aircraft manufacturer 16,400 $ 1,617,450
- ------------------------------------------------------------------------------------------------------------------------============
Agricultural Products .83% Pioneer Hi-Bred International, Inc.-Leading U.S. supplier of hybrid seed 15,000 1,059,375
- ------------------------------------------------------------------------------------------------------------------------============
Airlines 1.08% British Airways plc ADR-One of the world's largest international airlines 12,000 1,375,500
- ------------------------------------------------------------------------------------------------------------------------============
Apparel 1.25% VF Corp.-Leading producer of blue jeans and other apparel 22,100 1,593,962
- ------------------------------------------------------------------------------------------------------------------------============
Auto Parts 1.57% Genuine Parts Company-National distributor of automotive replacement parts 61,650 1,995,918
- ------------------------------------------------------------------------------------------------------------------------============
Automobiles .94% General Motors Corp.-Worldwide auto producer 20,600 1,192,225
- ---------------------------------------------------------------------------------------------------------------------------
Banks: Money Center 3.18% Chase Manhattan Corp.-Major money-center bank holding company 30,400 2,815,800
First Chicago NBD-Major midwest bank 22,000 1,237,500
Total 4,053,300
- ------------------------------------------------------------------------------------------------------------------------============
Banks: Regional 8.00% Bank of Boston-Leading New England regional bank 29,900 2,175,225
BankAmerica Corp.-Major west coast bank 18,400 2,150,500
Comerica Inc.-Midwestern regional bank holding company 28,100 1,643,850
First Union Corp.-Major east coast bank 12,100 1,016,400
KeyCorp-Multi-regional bank holding company serving the northwest U.S. 37,000 1,928,625
Mellon Bank Corp.-Commercial bank located in Pittsburgh, PA 15,500 1,288,437
Total 10,203,037
- ------------------------------------------------------------------------------------------------------------------------============
Brokers 1.20% Dean Witter, Discover & Co.-Major brokerage and credit card company 40,000 1,530,000
- ------------------------------------------------------------------------------------------------------------------------============
Chemicals 3.05% Air Products & Chemicals Inc.-Industrial gas producer 20,000 1,435,000
Dow Chemical Co.-Leading global chemical producer 10,500 891,188
</TABLE>
3
<PAGE>
Statement of Net Assets
GROWTH & INCOME SERIES April 30, 1997
<TABLE>
<CAPTION>
Investments Shares Market Value
====================================================================================================================================
<S> <C> <C> <C>
Hanna, M.A. Co.-Leading producer and distributor of plastic
compounds, resins and additives 37,500 $ 782,812
Union Carbide Corp.-Major U.S.-based producer of plastics and chemicals 15,700 783,037
Total 3,892,037
- ------------------------------------------------------------------------------------------------------------------------============
Containers .66% Sonoco Products Co.-A leading U.S. producer of specialty paper and
plastic packaging components 31,500 846,563
- ------------------------------------------------------------------------------------------------------------------------============
Data Processing Equipment *Digital Equipment Corp.-Manufacturer of data processing equipment 31,000 926,125
5.01%
Hewlett-Packard Co.-Leading manufacturer of computer products including
printers, servers, workstations and PCs 37,400 1,963,500
International Business Machines Corp.-Largest computer maker 15,900 2,555,925
*Seagate Technology Inc.-Manufacturer of computer disk drive equipment 20,600 945,025
Total 6,390,575
- ------------------------------------------------------------------------------------------------------------------------============
Drugs/Health Care Products American Home Products Corp.-Producer of drugs, food, housewares and
9.84% packaged medicine and medical products 24,000 1,590,000
Baxter International Inc.-World's leading distributor and major
manufacturer of hospital supplies and related medical equipment 17,500 837,812
Bristol-Myers Squibb Company-Major worldwide pharmaceutical company
with other interests in infant nutrition, non-prescription medications,
medical devices and toiletries 32,000 2,096,000
*Humana Inc.-Provider of managed health plans 65,000 1,413,750
Mallinckrodt Group Inc.-Producer of medical products, specialty
chemicals and veterinary supplies 30,000 1,091,250
SmithKline Beecham plc ADS-United Kingdom-based health care company
providing prescription and over-the-counter drugs and
clinical laboratory services 38,700 3,120,188
Warner-Lambert Co.-Drugs and consumer products manufacturer 24,500 2,401,000
Total 12,550,000
- ------------------------------------------------------------------------------------------------------------------------============
Electric Power 3.34% American Electric Power Co., Inc.-Major utility holding company 12,000 486,000
Baltimore Gas & Electric Co.-Regional electric utility 32,500 828,750
Carolina Power & Light Co.-Electric utility company serving North
and South Carolina 25,000 850,000
CINergy Corp.-Supplier of electricity and natural gas in southwestern Ohio
and adjacent Kentucky and Indiana territories 52,900 1,758,925
Potomac Electric Power Co.-Electric utility company serving
Washington, D.C. and areas of Maryland and Virginia 16,000 360,000
Total 4,283,675
- ------------------------------------------------------------------------------------------------------------------------============
Electrical Equipment 2.24% Emerson Electric Co.-Diversified manufacturer of consumer and
industrial electrical components 47,600 2,415,700
Raytheon Company-A leading manufacturer of air-defense missiles
and military electronic products 10,000 436,250
Total 2,851,950
- ------------------------------------------------------------------------------------------------------------------------============
Electronics: Components 1.65% Harris Corp.-Manufacturer of advanced electronic systems and
communications equipment 24,600 2,103,300
- ------------------------------------------------------------------------------------------------------------------------============
Financial: Miscellaneous .95% Nationsbank Corp.-Leading commercial bank located in southeast
North Carolina 20,000 1,207,500
- ------------------------------------------------------------------------------------------------------------------------============
Food 7.94% ConAgra Inc.-Major producer of agricultural and consumer products 41,470 2,389,709
CPC International Inc.-Producer of diversified packaged foods 29,000 2,396,125
Heinz H.J. Co.-Domestic packaged foods producer 61,400 2,548,100
Sara Lee Corp.-A diversified maker of branded food products, apparel
and household consumer products 24,000 1,008,000
Supervalu Inc.-Second largest U.S. food wholesaler 58,300 1,785,437
Total 10,127,371
- ------------------------------------------------------------------------------------------------------------------------============
Household Products 3.48% James River Corp.-Producer of paper-based consumer products, packaging
and communication papers 64,100 1,914,988
Kimberly Clark Corp.-Major producer of consumer and personal care products 49,180 2,520,475
Total 4,435,463
- ------------------------------------------------------------------------------------------------------------------------============
Insurance 6.84% Aetna Inc.-Major multi-line insurer 24,650 2,246,231
Chubb Corp.-Broad-based property and casualty insurance organization 22,000 1,270,500
</TABLE>
4
<PAGE>
Statement of Net Assets
GROWTH & INCOME SERIES April 30, 1997
<TABLE>
<CAPTION>
Investments Shares Market Value
====================================================================================================================================
<S> <C> <C> <C>
CIGNA Corp.-Multi-line insurance and medical services 14,600 $ 2,195,475
CMAC Investment Corp.-Major private mortgage insurance provider 15,200 577,600
SAFECO Corp.-Insurance and financial services 37,700 1,508,000
The Progressive Corporation-Insurance holding company specializing
in non-standard auto insurance 12,200 928,725
Total 8,726,531
- ------------------------------------------------------------------------------------------------------------------------============
Machine Tools 1.20% Snap-on, Inc.-Manufactures and distributes hand tools and diagnostic
equipment for the automotive industry 39,600 1,524,600
- ------------------------------------------------------------------------------------------------------------------------============
Machinery: Diversified 2.18% Deere & Co.-World's largest manufacturer of farm equipment 33,800 1,554,800
Goulds Pumps, Inc.-Largest U.S. producer of industrial and residential
pump systems 33,600 1,226,400
Total 2,781,200
- ------------------------------------------------------------------------------------------------------------------------============
Miscellaneous 3.08% Minnesota Mining & Mfg. Co.-Diversified global manufacturer of
value-added industrial, consumer and medical products 26,000 2,262,000
National Service Industries, Inc.-Diversified manufacturer of lighting
equipment, rental uniforms and specialty chemicals 39,400 1,659,725
Total 3,921,725
- ------------------------------------------------------------------------------------------------------------------------============
Natural Gas Distribution 2.13% Nicor Inc.-Natural gas distributor in Illinois 80,000 2,710,000
- ------------------------------------------------------------------------------------------------------------------------============
Natural Gas Diversified .81% The Coastal Corporation-A diversified gas pipeline company 21,800 1,035,500
- ------------------------------------------------------------------------------------------------------------------------============
Oil: Domestic 1.31% Amoco Corp.-Major integrated petroleum and natural gas company
with sizable interests in chemicals 19,900 1,664,138
- ------------------------------------------------------------------------------------------------------------------------============
Oil: International 3.42% Chevron Corp.-Worldwide petroleum company with important interests
in chemicals and minerals 23,600 1,616,600
Exxon Corp.-World's largest integrated oil company 19,800 1,121,175
Mobil Corp.-Large international oil company 12,500 1,625,000
Total 4,362,775
- ------------------------------------------------------------------------------------------------------------------------============
Paper and Forest Products .39% International Paper Co.-Producer of paper and forest products 11,750 496,438
- ------------------------------------------------------------------------------------------------------------------------============
Printing and Publishing .52% Gannett Co., Inc.-Major U.S. newspaper publisher 7,600 663,100
- ------------------------------------------------------------------------------------------------------------------------============
Printing: Specialty .42% Deluxe Corp.-Supplier of imprinted bank checks and forms 17,300 529,813
- ------------------------------------------------------------------------------------------------------------------------============
Railroads .19% Canadian National Railway (Partially Paid)-Major Canadian-based
railroad operator 6,300 242,550
- ------------------------------------------------------------------------------------------------------------------------============
Retail 3.23% May Department Stores Company-Leading department store retailer 25,000 1,156,250
*Payless Shoe Source-Major U.S. footwear retailer 32,000 1,360,000
*Toys R Us Inc.-Discount toy supermarts; department stores 56,000 1,596,000
Total 4,112,250
- ------------------------------------------------------------------------------------------------------------------------============
Savings and Loan .76% Great Western Financial Corp.-A leading savings and loan company 23,000 966,000
- ------------------------------------------------------------------------------------------------------------------------============
Telecommunications 3.67% AT&T Corp.-Global telecommunications giant 49,000 1,641,500
MCI Communications Corp.-Long distance telecommunications provider 79,700 3,038,563
Total 4,680,063
- ------------------------------------------------------------------------------------------------------------------------============
Telephone 2.29% Bell Atlantic Corp.-Regional telephone company 16,800 1,138,200
BellSouth Corp.-Regional telephone company 14,400 640,800
SBC Communication Inc.-Mexican telephone monopoly 20,500 1,137,750
Total 2,916,750
- ------------------------------------------------------------------------------------------------------------------------============
Tobacco 4.27% American Brands Inc.-Consumer products conglomerate 36,900 1,983,375
Philip Morris Inc.-Leading tobacco company 48,000 1,890,000
RJR Nabisco-Diversified food and tobacco producer 53,000 1,576,750
Total 5,450,125
- ------------------------------------------------------------------------------------------------------------------------============
</TABLE>
5
<PAGE>
Statement of Net Assets
GROWTH & INCOME SERIES April 30, 1997
<TABLE>
<CAPTION>
Shares
Investments Principal Amount Market Value
====================================================================================================================================
<S> <C> <C> <C>
Waste Management .82% WMX Technologies Inc.-A leading international provider of solid
waste disposal and other environmental services 35,600 $ 1,045,750
-----------------------------------------------------------------------------------------============
Total Investments in Common Stocks (Cost $90,870,518) 121,138,509
====================================================================================================================================
Other Assets, Less Liabilities 4.99%
====================================================================================================================================
Corporate Ford Motor Credit Co. 5.51% due 5/2/1997 2,800M 2,800,000
Obligations,
at Cost General Electric Capital Corp. 5.35% due 5/1/1997 3,475M 3,475,000
Total 6,275,000
- ------------------------------------------------------------------------------------------------------------------------============
Cash and Receivables, Net of Liabilities 91,680
- ------------------------------------------------------------------------------------------------------------------------============
Total Other Assets, Less Liabilities 6,366,680
====================================================================================================================================
Net Assets 100.00% $127,505,189
====================================================================================================================================
Class A Shares-Net asset value ($52,154,000 / 6,647,671 shares outstanding) $7.85
Class C Shares-Net asset value ($75,351,189 / 9,607,520 shares outstanding) $7.84
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
Statement of Net Assets
INTERNATIONAL SERIES April 30, 1997
<TABLE>
<CAPTION>
Investments Shares Market Value
====================================================================================================================================
<S> <C> <C> <C>
Common Stocks 82.11%
====================================================================================================================================
Australia 2.96% *Biota Holdings Ltd.-Biotechnology firm, partly owned by Glaxo of the U.K.,
that will get FDA approval for its anti-influenza vaccine 60,000 $ 196,740
ERG Ltd.-Leading supplier of fully automated mass transit, road toll
or ticketing systems 150,000 196,650
Total 393,390
- ------------------------------------------------------------------------------------------------------------------------============
Canada 12.54% *Ballard Power Systems-Designs, manufactures and develops methanol- or
hydrogen-based fuel cells that are the only true zero emission
power source for vehicles 15,000 408,195
Fulcrum Technologies Co.-One of two companies dominating the data search
and retrieval software industry 30,000 116,010
Lava Systems Inc.-The only company to provide a fully integrated
computer-based document management system 80,000 171,840
Magna Intl. Class A-Major supplier of components and sub-assemblies
to the world's automobile firms 3,000 155,757
Meridian Tech Inc.-Global leader in the production of complex magnesium
and aluminum castings for automobile engines 73,000 359,379
Methanex Corp.-World's largest and lowest-cost supplier of methanol 30,000 281,430
Ventra Group Inc.-Dominant manufacturer of vehicle jacks to North
American vehicle assemblers 80,000 171,840
Total 1,664,451
- ------------------------------------------------------------------------------------------------------------------------============
Denmark 5.79% BG Bank Dkk-Domestic retail bank focused on low-cost delivery of
standard products 4,750 208,497
Jyske Bank-Bank specializing in international private and
commercial banking 2,500 198,205
SydBank-Regional, mortgage and personal banking firm 3,750 175,421
Unidanmark `A'-One of Denmark's largest full-service banking groups 3,750 185,674
Total 767,797
-----------------------------------------------------------------------------------------============
</TABLE>
6
<PAGE>
Statement of Net Assets
INTERNATIONAL SERIES April 30, 1997
<TABLE>
<CAPTION>
Investments Shares Market Value
====================================================================================================================================
<S> <C> <C> <C>
Finland 1.88% Raision Tehtaat Oy-Producer of paper processing chemicals and foodstuffs
including a cholesterol lowering margarine 3,000 $ 248,865
- ------------------------------------------------------------------------------------------------------------------------============
France 10.93% Alcatel Alsthom-One of the world's largest full-line heavy electrical
engineering firms 3,000 333,990
AXA-UAP-One of Europe's largest financial organizations 5,000 308,000
Comptoir Modernes -France's leading discount supermarket chain
expanding into Spain and Italy 300 140,235
Degremont (Soc Gen)-Engineering and construction firm specializing in
water treatment facilities 2,500 195,128
Ubi Soft Entertain-One of the largest producers, translators and
distributors of computer games software in Europe 5,000 370,530
Vallourec-Major supplier of carbon alloys, stainless and non-ferrous
pipes to the automobile, chemical and power utility sectors 1,750 102,667
Total 1,450,550
- ------------------------------------------------------------------------------------------------------------------------============
Germany 15.37% GEA Ag-One of the world's top suppliers of food and pharmaceutical
processing equipment 500 176,352
HIS Sport Wear Ag-Designs and retails sports and leisurewear 8,000 196,592
Iwka Ag-Multi-line engineering company making packaging, robot
welding and defense equipment 1,000 263,949
Preussag Ag-Diversified firm with activities from oil extraction through
metal processing to freight car and helicopter leasing 1,000 257,011
SAP Ag-World's fourth largest software firm dominating the global market
for relational database management tools 3,000 546,921
Schering Ag-Pharmaceutical firm with strong market share in contrast
media and birth control products 3,000 287,943
Viag Ag-Diversified group with utility, aluminum, chemical, glass and
packaging operations 700 311,651
Total 2,040,419
- ------------------------------------------------------------------------------------------------------------------------============
Netherlands 7.94% Hunter Douglas NV-Major global supplier of decorative building fittings
especially window blinds and the equipment to make them 4,000 326,892
Koninklijke Knp NV-Makes and distributes paper and packaging products
as well as office supplies and systems 15,000 296,055
Vmf Stork NV-Specializes in providing industrial systems, components
and services 10,263 431,230
Total 1,054,177
- ------------------------------------------------------------------------------------------------------------------------============
Norway .74% Fokusbank-Regional bank specializing in investment and private
banking services 10,000 97,700
- ------------------------------------------------------------------------------------------------------------------------============
Switzerland 7.87% Christ Aesch-Major global provider of water treatment chemicals and
purification equipment 350 205,812
Nestle SA-One of the world's top two food manufacturing companies 150 182,529
Saurer Ag Arbon-Textile machinery and auto component manufacturing firm 400 209,925
SGS Holding-Dominates the inspection, audit and monitoring of goods
and their transport across borders 105 217,709
Stratec Holding-Healthcare company concentrating on osteosynthesis
and prosthetics 150 228,416
Total 1,044,391
- ------------------------------------------------------------------------------------------------------------------------============
United Kingdom 16.09% Ashtead Group-Major construction plant and machinery hire firm 36,000 161,100
Capita Group-Dedicated provider of property-related consultancy,
MIS outsourcing, architectural and training services 54,000 209,196
Cobham-Designs and manufactures proprietary components for the aerospace,
defense and telecommunications industries 14,000 144,284
Fairey Group-Engineering firm focused on specialist electronic, ceramic
and filtration products 15,000 126,570
Halma-Manufactures environment control, fire detection, gas monitoring,
safety and security equipment and systems 45,000 129,735
Powerscreen International-Leading global screening, crushing, recycling
and material handling equipment supplier 15,000 148,020
Regal Hotel Group-Owns and operates more than 100 medium-sized hotels
and inns across the U.K. 395,000 355,895
Vardy (Reg)-Leading multiple franchise vehicle distribution chain in the
U.K. for new and used cars 30,000 161,550
Verity Group-Makes high-quality loud speakers and has developed the
first commercial flat panel speaker to reach mass production 500,000 430,500
</TABLE>
7
<PAGE>
Statement of Net Assets
INTERNATIONAL SERIES April 30, 1997
<TABLE>
<CAPTION>
Shares
Investments Principal Amount Market Value
====================================================================================================================================
<S> <C> <C> <C>
Volex Group-Supplies electrical connectors, systems and wiring
harnesses to all major consumer durable sectors 18,000 $ 123,965
Wolseley-Leading distributor of plumbing and bathroom products
in the U.K., France, the U.S. and Austria 18,000 144,864
Total 2,135,679
- ------------------------------------------------------------------------------------------------------------------------============
Total Investments in Common Stocks (Cost $10,368,165) 10,897,419
====================================================================================================================================
Other Assets, Less Liabilities 17.89%
====================================================================================================================================
Short-Term Student Loan Marketing Association
Investments, 5.30% due 5/1/1997 2,300M 2,299,661
at Cost
====================================================================================================================================
Cash and Receivables, Net of Liabilities 74,067
- ------------------------------------------------------------------------------------------------------------------------============
Total Other Assets, Less Liabilities 2,373,728
====================================================================================================================================
Net Assets 100.00% $13,271,147
====================================================================================================================================
Net asset value ($13,271,147 / 1,320,986 shares outstanding) $10.05
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
Statements of Operations
<TABLE>
<CAPTION>
12/13/96
Six Months (Commencement
Ended of Operations)
4/30/97 to 4/30/97
--------------- ---------------
Growth & Income International
Investment Income Series Series
================================================================================================================== ===============
<S> <C> <C>
Income Dividends $ 1,516,893 $ 55,898
Interest 57,071 32,669
Total income 1,573,964 88,567
-------------------------------------------------------------------------------------------------------- ---------------
Expenses Management fee 461,682 25,154
12b-1 distribution plan 402,065 2,741
Shareholder servicing 90,000 3,000
Audit and tax 23,000 2,000
Reports to shareholders 20,000 2,000
Registration 12,000 2,000
Legal 4,800 1,000
Organization 3,666 2,636
Other 13,060 364
Total expenses 1,030,273 40,895
-------------------------------------------------------------------------------------------------------- ---------------
Net investment income 543,691 47,672
-------------------------------------------------------------------------------------------------------- ---------------
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
================================================================================================================== ===============
Net realized gain (loss) from investment and foreign currency transactions
Proceeds from sales 20,926,869 809,081
Cost of investments sold 17,087,287 909,919
Net realized gain (loss) 3,839,582 (100,838)
-------------------------------------------------------------------------------------------------------- ---------------
Unrealized appreciation of investments and foreign currency holdings 9,625,318 529,254
- ------------------------------------------------------------------------------------------------------------------ ---------------
Net realized and unrealized gain on investments and foreign currency holdings 13,464,900 428,416
- ------------------------------------------------------------------------------------------------------------------ ---------------
Net Increase in Net Assets Resulting from Operations $14,008,591 $476,088
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
12/13/96
Six Months (Commencement
Ended of Operations) Year Ended
4/30/97 to 4/30/97 10/31/96
------------ -------------- --------------
Growth & Growth &
Income International Income
Increase (Decrease) in Net Assets Series Series Series
==================================================================================================== ============== ==============
<S> <C> <C> <C>
Operations Net investment income $ 543,691 $ 47,672 $ 902,100
Net realized gain (loss) from investment and foreign currency transactions 3,839,582 (100,838) 1,220,288
Net unrealized appreciation of investments and foreign currency holdings 9,625,318 529,254 10,781,503
Net increase in net assets resulting from operations 14,008,591 476,088 12,903,891
- ---------------------------------------------------------------------------------------------------- -------------- --------------
Undistributed (overdistributed) net investment income included in price of shares sold (11,252) 19,270 91,590
- ---------------------------------------------------------------------------------------------------- -------------- --------------
Distributions to shareholders from:
Net investment income (616,615) -- (944,639)
Net realized gain from investments (1,202,748) -- (220,851)
Total distributions (1,819,363) -- (1,165,490)
- ---------------------------------------------------------------------------------------------------- -------------- --------------
Share transactions:
Net proceeds from sales of shares 10,596,299 10,936,299 35,645,785
Net asset value of shares issued to shareholders in reinvestment of
net investment income and realized gain from investment transactions 1,679,683 - 1,078,899
Net asset value of shares issued in exchange for assets acquired
in tax-free acquisition -- -- 43,649,766
Total 12,275,982 10,936,299 80,374,450
---------------------------------------------------------------------------------------- -------------- --------------
Cost of shares reacquired (10,910,516) (160,510) (11,012,618)
---------------------------------------------------------------------------------------- -------------- --------------
Increase in net assets derived from share transactions 1,365,466 10,775,789 69,361,832
---------------------------------------------------------------------------------------- -------------- --------------
Increase in net assets 13,543,442 11,271,147 81,191,823
- ---------------------------------------------------------------------------------------------------- -------------- --------------
Net Assets
Beginning of period 113,961,747 2,000,000 32,769,924
---------------------------------------------------------------------------------------- -------------- --------------
End of period+ $127,505,189 $13,271,147 $113,961,747
========================================================================================================================
</TABLE>
+ Including undistributed net investment income of $150,374 and
$66,942, respectively, as of April 30, 1997 and undistributed net
investment income of $234,550 as of October 31, 1996.
See Notes to Financial Statements.
9
<PAGE>
Financial Highlights
GROWTH & INCOME SERIES
<TABLE>
<CAPTION>
Class A Shares Class C Shares
- ----------------------------------------------------------------------------- -----------------------------------------------------
Six Months Six Months
Ended 4/30 7/15/96(a) Ended 4/30 Year Ended 10/31, 1/3/94(b)
Per Share Operating Performance: 1997 to 10/31/96 1997 1996 1995 to 10/31/94
============================================================= ============== ============= ======================= =============
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.09 $ 6.50 $ 7.09 $ 6.04 $ 5.07 $ 5.00
- ------------------------------------------------------------- -------------- ------------- ----------------------- -------------
Income from investment operations
Net investment income .049 .028 .021 .0949 .12 .089
Net realized and unrealized gain
on investments .840 .589 .831 1.0986 .97 .041
Total from investment operations .889 .617 .852 1.1935 1.09 .130
------------------------------------------------------- -------------- ------------- ----------------------- -------------
Distributions
Dividends from net investment income (.054) (.027) (.027) (.1035) (.12) (.06)
Distributions from net realized gain (.075) -- (.075) (.04) -- --
------------------------------------------------------- -------------- ------------- ----------------------- -------------
Net asset value, end of period $ 7.85 $ 7.09 $ 7.84 $ 7.09 $ 6.04 $ 5.07
- ------------------------------------------------------------- -------------- ------------- ----------------------- -------------
Total Return(c) 12.61%(d) 12.10%(d) 12.07%(d) 20.02% 21.83% 2.62%(d)
============================================================= ============== ============= ======================= =============
Ratios to Average Net Assets:
Expenses, including waiver .61%(d) .39%(d) 1.00%(d) 1.55% 1.16% .61%(d)
Expenses, excluding waiver .61%(d) .39%(d) 1.00%(d) 2.01% 1.91% 1.94%(d)
Net investment income .67%(d) .40%(d) .28%(d) 1.36% 2.06% 2.03%(d)
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Six Months Year Ended
Ended 4/30 10/31, 1/3/94(b)
Supplemental Data for All Classes: 1997 1996 1995 to 10/31/94
============================================================================== ============================= =============
<S> <C> <C> <C> <C>
Net assets, end of period (000) $127,505 $113,962 $32,770 $9,160
Portfolio turnover rate 15.82% 23.84% 23.17% 31.95%
Average commission rate per share paid on equity transactions $ .063 $ .064 $ .059 n/a
=======================================================================================================================
</TABLE>
(a) Commencement of offering Class A shares.
(b) Commencement of operations.
(c) Total return does not consider the effects of sales loads.
(d) Not annualized.
See Notes to Financial Statements.
Financial Highlights
INTERNATIONAL SERIES
<TABLE>
<CAPTION>
12/13/96(a)
Per Share Operating Performance: to 4/30/97
====================================================================================================
<S> <C>
Net asset value, beginning of period $ 9.42
- ----------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .05
Net realized and unrealized gain on investments and foreign currency holdings .58
Total from investment operations .63
----------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.05
- ----------------------------------------------------------------------------------------------------
Total Return(b) 6.62%(c)
====================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (000) $13,271
----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses .51%(c)
Net investment income .59%(c)
Portfolio turnover rate 10.15%
Average commission rate per share paid on equity transactions $ .018
==============================================================================================
</TABLE>
(a) Commencement of operations.
(b) Total return does not consider the effects of sales loads.
(c) Not annualized.
See Notes to Financial Statements.
10
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies
Lord Abbett Securities Trust (the "Trust") is an open-end management investment
company, organized as a Delaware business trust on February 26, 1993. The Trust
currently consists of two separate portfolios ("Series")-Lord Abbett Growth &
Income Series ("Growth & Income") and Lord Abbett International Series
("International"). The International Series was added on December 10, 1996 at
which time the Trust received a capital contribution of $2,000,000 and issued
212,202 shares of the International Series to the partners of Lord, Abbett & Co.
("Lord Abbett"). Each Series is diversified as defined under the Investment
Company Act of 1940. The financial statements have been prepared in conformity
with generally accepted accounting principles which permit management to make
certain estimates and assumptions at the date of the financial statements.
The following summarizes the significant accounting policies of the Trust: (a)
Market value is determined as follows: Securities listed or admitted to trading
privileges on any national securities exchange are valued at the last sales
price on the principal securities exchange on which such securities are traded,
or, if there is no sale, at the mean between the last bid and asked prices on
such exchange. Securities traded in the over-the-counter market are valued at
the mean between the last bid and asked prices in such market, 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 securities. Short-term securities are carried at cost
which approximates market. Securities for which market quotations are not
available are valued at fair value under procedures approved by the Board of
Trustees. (b) Transactions denominated in foreign currencies are recorded in the
Company's records at the rate prevailing when earned or incurred. Asset and
liability accounts that are denominated in foreign currencies are adjusted to
reflect current exchange rates. (c) It is the policy of the Trust to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income in taxable distributions.
Therefore, no federal income tax provision is required. (d) Security
transactions are accounted for on the date that the securities are purchased or
sold (trade date). Realized gains and losses from investment transactions are
calculated on the identified cost basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is recorded
on the accrual basis. 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. (e) A portion of the proceeds from sales and cost of repurchases of shares,
equivalent to the amount of distributable net investment income on the date of
the transaction, is credited or charged to undistributed income. Undistributed
net investment income per share thus is unaffected by sales or repurchases of
shares. (f) The organization expenses are amortized evenly over a period of five
years.
2. Management Fee and Other Transactions with Affiliates
The Trust has a management agreement with Lord Abbett pursuant to which Lord
Abbett supplies the Trust 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 and statistical work and supervision of the Trust's investment
portfolios. The management fee is based on average daily net assets at the rate
of 0.75% per annum. Lord Abbett may waive its management fee and reimburse the
Trust for certain of its other expenses. Any such other expenses paid are
subject to repayment by the Trust, pursuant to a formula based on the asset size
and expense ratio of each Series. Each Series shall not be obligated to repay
Lord Abbett after five full fiscal years of operation or the termination of the
management agreement, whichever is earlier. Lord Abbett has entered into a
sub-advisory agreement with Fuji Investment Management Co. (Europe), Ltd.
("sub-adviser"). The sub-adviser furnishes investment advisory services in
connection with the management of the International Series. Lord Abbett pays for
the cost of the sub-adviser's services.
Each Series of the Trust has Rule 12b-1 plans and agreements with respect to one
or more classes of shares as described below (the "Class A and Class C Plans")
with Lord Abbett Distributor LLC ("Distributor"), an affiliate of Lord Abbett.
Each Series makes payments to Distributor which uses or passes on such payments
to authorized institutions. Pursuant to the Class A Plan, each Series pays
Distributor (1) an annual service fee of 0.25% of the average daily net assets
of Class A shares and (2) a one-time distribution fee of up to 1% on certain
qualifying purchases and a supplemental annual distribution fee of 0.10% of the
average daily net assets ofClass A shares serviced by certain qualifying
institutions. Pursuant to the Class C Plan of the Growth & Income Series, the
Series pays Distributor (1) a service fee and a distribution fee, at the time
such shares are sold, not to exceed 0.25% and 0.75%, respectively, of the net
asset value of such shares sold and (2) at each quarter-end after the first
anniversary of the sale of such shares, a service fee and a distribution fee at
an annual rate not to exceed 0.25% and 0.75%, respectively, of the average
annual net asset value of such shares outstanding.
12b-1 distribution plan expenses for the Growth &Income Series' multiple class
shares were as follows:
- --------------------------------------------------------------------------------
Class A $ 51,488
- --------------------------------------------------------------------------------
Class C $350,577
- --------------------------------------------------------------------------------
Lord Abbett received the following commissions on sales of shares of the Trust
after concessions were paid to authorized distributors:
Lord Abbett Distributors'
Series Commissions Concessions
- --------------------------------------------------------------------------------
Growth & Income $7,700 $49,040
- --------------------------------------------------------------------------------
International $8,772 $85,737
- --------------------------------------------------------------------------------
3. Distributions
Dividends from net investment income are declared and paid quarterly for the
Growth &Income Series and annually for the International Series. Net realized
gains from investment transactions, if any, are distributed to shareholders
annually. At April 30, 1997, the accumulated undistributed net realized gain
(loss) for financial reporting purposes, aggregated $3,866,568 for the Growth &
Income Series and $(100,838) for the International Series. Distributions
declared for the Growth & Income Series on May 7, 1997 were as follows:
Rate Aggregate
Per Share Amount
- --------------------------------------------------------------------------------
Class A-Investment Income $.025 $166,017
- --------------------------------------------------------------------------------
Class C-Investment Income $.010 $ 95,957
- --------------------------------------------------------------------------------
Income and capital gains distributions are determined in accordance with income
tax regulations which may differ from methods used to determine the
corresponding income and capital gains amounts in accordance with generally
accepted accounting principles.
11
<PAGE>
Notes to Financial Statements
For the six months ended April 30, 1997, distributions declared by Class for the
Growth & Income Series were as follows:
- --------------------------------------------------------------------------------
Class A-Investment Income $361,142
- --------------------------------------------------------------------------------
Class C-Investment Income $255,473
- --------------------------------------------------------------------------------
Class A-Capital Gain $501,039
- --------------------------------------------------------------------------------
Class C-Capital Gain $701,709
- --------------------------------------------------------------------------------
4. Capital
Transactions in shares of beneficial interest for the Growth & Income Series
were as follows:
July 15, 1996
Six Months (Commencement of
Ended offering Class A shares)
April 30, 1997 to October 31, 1996
- -------------------------------------------------- ---------------------------
Class A Shares Amount Shares Amount
- -------------------------------------------------- ---------------------------
Sales of shares 514,196 $ 3,874,480 294,449 $ 1,974,458
Shares issued to
shareholders in
reinvestment of net
investment income
and realized gain
from investment
transactions 102,448 773,693 24,116 160,559
Shares issued to
shareholders in
exchange for assets
acquired in tax-free
acquisition -- -- 6,718,449 43,649,766
Total 616,644 4,648,173 7,037,014 45,784,783
- -------------------------------------------------- ---------------------------
Shares reacquired (638,925) (4,816,139) (367,062) (2,474,054)
Increase (decrease)
in shares (22,281) $ (167,966) 6,669,952 $ 43,310,729
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 1997 October 31, 1996
- -------------------------------------------------- ---------------------------
Class C Shares Amount Shares Amount
- -------------------------------------------------- ---------------------------
Sales of shares 886,842 $ 6,721,819 5,117,940 $ 33,671,327
Shares issued to
shareholders in
reinvestment of net
investment income
and realized gain
from investment
transactions 119,899 905,990 142,172 918,340
Total 1,006,741 7,627,809 5,260,112 34,589,667
- -------------------------------------------------- ---------------------------
Shares reacquired (807,827) (6,094,377) (1,279,728) (8,538,564)
Increase in shares 198,914 $ 1,533,432 3,980,384 $ 26,051,103
- -------------------------------------------------------------------------------
Transactions in shares of beneficial interest for the International Series were
as follows:
12/10/96 to
April 30, 1997
---------------------------------
Shares Amount
- -------------------------------------------------------------------------------
Sales of shares 1,125,210 $ 10,936,299
- -------------------------------------------------------------------------------
Shares reacquired (16,426) (160,510)
Increase in shares 1,108,784 $ 10,775,789
- -------------------------------------------------------------------------------
As of April 30, 1997, paid in capital for each Series was as follows:
$93,220,256 for the Growth & Income Series and $12,775,789 for the International
Series.
5. Purchases and Sales of Securities
Purchases and sales of investment securities (other than short-term investments)
were as follows:
Series Purchases Sales
- --------------------------------------------------------------------------------
Growth & Income $18,925,789 $20,926,869
- --------------------------------------------------------------------------------
International $11,278,083 $ 809,081
- --------------------------------------------------------------------------------
As of April 30, 1997, net unrealized appreciation, unrealized appreciation and
unrealized depreciation of investments based on cost for federal income tax
purposes were as follows:
Net Unrealized Unrealized Unrealized
Series Appreciation Appreciation Depreciation
- --------------------------------------------------------------------------------
Growth & Income $30,267,991 $30,924,438 $656,447
- --------------------------------------------------------------------------------
International $ 529,254 $ 807,137 $277,883
- --------------------------------------------------------------------------------
The cost of investments for federal income tax purposes is the same as that used
for financial reporting purposes.
6. Trustees` Remuneration
The Trustees of the Trust associated with Lord Abbett and all officers of the
Trust receive no compensation from the Trust for acting as such. Outside
Trustees' fees and retirement costs are allocated among all funds in the Lord
Abbett group based on net assets of each fund. A portion of the Trustees' fees
accrued during the period has been deemed invested in shares of the Trust under
a deferred compensation plan contemplating future payment of the value of those
shares. As of April 30, 1997, the aggregate amount in Trustees' accounts
maintained under the plan was $103,355.
7. Acquisition
On July 12, 1996, the Growth &Income Series, acquired the net assets of Lord
Abbett Fundamental Value Fund, Inc. ("Fundamental Value") pursuant to a plan of
reorganization approved by Fundamental Value's shareholders on June 19, 1996.
The acquisition was accomplished by a tax-free exchange of 6,718,449 shares of
newly issued Class A shares of the Growth &Income Series, for 3,251,614 shares
of Fundamental Value valued at $43,649,766 in the aggregate on July 12, 1996.
The aggregate net assets of the Growth & Income Series, and Fundamental Value
immediately before the acquisition were $59,420,311 and $43,649,766 (including
$6,568,304 of net unrealized appreciation and $29,561 of accumulated net
realized gains), respectively.
Copyright (C) 1997 by Lord Abbett Securities Trust, 767 Fifth Avenue, New York,
NY 10153-0203
This publication, when not used for the general information of shareholders of
Lord Abbett Securities Trust, is to be distributed only if preceded or
accompanied by a current prospectus which includes information concerning the
Trust's investment objective and policies, sales charges and other matters.
There is no guarantee that the forecasts contained within this publication will
come to pass.
All rights reserved. Printed in the U.S.A.
12
<PAGE>
Lord, Abbett & Co.
A Tradition of Performance Through
Disciplined
Investing
[PHOTO]
(standing left to right)
Daria L. Foster
partner in charge of institutional
marketing and client service
Daniel H. Frascarelli
portfolio manager
(seated left to right)
Michael A. Grant
director of marketing and client service
Robert G. Morris
partner, director of equity investments
A successful long-term track record is evidence of a successful investment
strategy. For decades we, at Lord, Abbett & Co., have believed that investing
with a disciplined, value approach is the best way to achieve competitive
returns and reduce portfolio risk. This commitment and the dedication of our
team of 51 investment professionals have helped us earn the trust of financial
professionals and investors for over 65 years.
About Your
Trust's
Board of
Trustees
The Securities and Exchange Commission (SEC) views the role of the independent
Board of Trustees as one of the most important components in overseeing a mutual
fund. The Board of Trustees watches over your Trust's general operations and
represents your interests. Board members review and approve every contract
between your Trust and Lord, Abbett & Co. (the Trust's investment manager) and
Lord Abbett Distributor LLC (the Trust's underwriter). They meet regularly to
review a wide variety of information and issues regarding your Trust. Every
member of the Board possesses extensive business experience; Lord Abbett
Securities Trust's shareholders are indeed fortunate to have a group of
independent trustees with diverse backgrounds to provide a variety of viewpoints
in the oversight of their Trust. Below, we feature one of our independent
trustees, Hansel B. Millican, Jr.
Hansel B. Millican, Jr.,
Trustee--Lord Abbett
Securities Trust
An alumnus of North Carolina State University (Raleigh), Mr. Millican has over
45 years of corporate management experience. He is currently the President and
CEO of Rochester Button Company.
Mr. Millican serves as Chairman of the Board of the Central Florida Autism
Institute, Inc. He has been an independent trustee/director for all of Lord
Abbett's funds since 1982.
<PAGE>
Investing in the
Lord Abbett
Family of Funds
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
Growth Funds Growth & Balanced Fund Income Funds Tax-Free Money
Income Funds Income Funds Market Fund
<S> <C> <C> <C> <C> <C> <C>
Developing Global Fund- Affiliated Fund Balanced Series Bond-Debenture o National U.S. Government
Growth Fund Equity Series Fund o California Securities
Growth & o Connecticut Money Market
International Mid-Cap Income Series Global Fund- o Florida Fund*+
Series Value Fund Income Series o Georgia
Research Fund- o Hawaii
Research Fund- Large-Cap Limited Duration o Michigan
Small-Cap Series U.S. Government o Minnesota
Series Securities Series* o Missouri
o New Jersey
U.S. Government o New York
Securities Series* o Pennsylvania
o Texas
o Washington
</TABLE>
Finding the right mutual fund can be confusing. At Lord, Abbett & Co., we
believe your financial adviser provides value in helping you identify and
understand your investment objectives and, ultimately, offering fund
recommendations suitable for your individual needs.
This publication, when used as sales literature, is to be distributed only if
preceded or accompanied by a current prospectus for Lord Abbett Securities
Trust.
For more complete information about any other Lord Abbett fund, including
charges and expenses, call your financial adviser or Lord Abbett Distributor LLC
at 800-874-3733 for a prospectus. Read it carefully before investing.
When you invest in a family of funds, you benefit from:
Diversification. You and your financial adviser can diversify your investments
between equity and income funds.
Flexibility. As your investment goals change, your financial adviser can help
you reallocate your portfolio.
As an investor in the Lord Abbett Family of Funds, you have access to 28
portfolios designed to meet a variety of investment needs. While you may
reallocate your assets among our funds at any time, we recommend speaking with
your financial adviser to help you customize your investment plan.
Numbers to Keep Handy
For Shareholder Account or
Statement Inquiries:
800-821-5129
For Literature:
800-874-3733
For More Information:
800-426-1130
Visit our Web site:
http://www.lordabbett.com
* An investment in this Fund is neither insured nor guaranteed by the U.S.
Government.
+ There can be no assurance that this Fund will be able to maintain a stable
net asset value of $1.00 per share. This Fund is managed to maintain, and
has maintained, its stable $1.00 per share price.
[LOGO](R) LORD ABBETT & CO.
Investment Management
A Tradition of Performance Through Disciplined Investing
LORD ABBETT DISTRIBUTOR LLC
The GM Building o 767 Fifth Avenue o New York, NY 10153-0203
(6/97)
LST-3-497
