SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 1, 1998
FOR THE LORD ABBETT SECURITIES TRUST
<PAGE>
SUPPLEMENT EFFECTIVE DATE: JULY 2, 1998
Lord Abbett
Securities Trust-Alpha Series
SMALL-CAP EQUITY FANS:
Three
Great Funds
Make
One Great
Investment
[LOGO OMITTED} (R)
A Tradition of Performance Through Disciplined Investing
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Lord Abbett Securities Trust - Alpha Series
Small Company Breakthroughs Can Capture
The World's Imagination
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Over the years, small companies worldwide have developed many of the products
and services that trigger quantum leaps forward in our quality of life.
Participating in small companies that are industry leaders or offer breakthrough
products can be very rewarding for investors.
Now It's Easy To Keep Pace With
Shifts In Small-Cap Markets
One of the frustrations of investing in small caps is that the U.S. growth, U.S.
value and international small-cap markets seldom move in the same direction at
the same time (please see the accompanying graph for details). As a consequence,
many investors chase small-cap returns by investing in the sector with the best
recent results. These investors are often disappointed when the sector they
choose fails to produce the highest immediate returns. We believe that investing
in Lord Abbett Securities Trust - Alpha Series is a smarter way to participate
in the small-cap arena.
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Market Realities Demand A Globally Diversified Small-Cap Portfolio
1 2 3
1986 3.6% 7.4% 62.4%
1987 -10.5% -7.1% 36.1%
1988 20.4% 29.5% 28.9%
1989 20.2% 12.4% 23.4%
1990 -17.4% -21.8% -24.4%
1991 51.2% 41.7% 8.1%
1992 7.8% 29.1% -14.6%
1993 13.4% 23.9% 32.3%
1994 -2.4% -1.6% 11.4%
1995 31% 25.8% 4.5%
1996 11.3% 21.4% 4.7%
1997 13% 31.8% -11.6%
Investors should note that the index returns shown above do not reflect the
performance of underlying funds for Lord Abbett Securities Trust - Alpha Series.
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(1) Unmanaged Russell 2000 Growth Index; (2) Unmanaged Russell 2000 Value Index;
(3) Unmanaged Salomon Brothers Extended Market Index. An investor cannot invest
directly in an index. Source: Lord, Abbett & Co.
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A Tradition of Performance
Through Disciplined Investing
The Vision of Lord Abbett
In an age of consolidation within financial services, Lord, Abbett & Co.
continues its long tradition of excellence as an independent partnership.
Founded in 1929, money management, built on in-depth proprietary research, is
the Firm's only business. Assets under management currently total over $27
billion, consisting of a family of mutual funds and separately managed equity,
fixed-income and balanced accounts for corporations, institutions and
individuals.
Lord Abbett currently employs a staff of 59 investment professionals, who
average 15 years of experience in the business and 6 years of tenure with Lord
Abbett. The Firm rounds out its global perspective by maintaining an advisory
relationship with Fuji Investment Management Co., of which Lord Abbett is a
minority owner.
A Unique "Fund-of-Funds"
Approach To Small Caps
Lord Abbett Securities Trust - Alpha Series is a "fund of funds" that provides
you with exposure to three primary small-cap sectors. No one "star" manager is
calling the Alpha shots. Instead, three separate and experienced portfolio
management teams conduct in-depth fundamental research as a prelude to strict
"bottom-up" stock selection from among industry leaders.
Lord Abbett Developing Growth Fund
provides U.S. small-cap growth exposure
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Lord Abbett Research Fund - Small-Cap Series
provides U.S. small-cap value exposure
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Lord Abbett Securities Trust - International Series
provides international small-cap exposure
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Your Bottom-Line Benefit
Is Proven Performance
Lord Abbett Securities Trust - Alpha Series covers the small-cap bases through
an allocation to three performance-proven Lord Abbett mutual funds. The initial
investment allocation of the Alpha Series is approximately 30% of assets
invested in Lord Abbett Developing Growth Fund, 30% in Lord Abbett Research Fund
- - Small-Cap Series and 40% in Lord Abbett Securities Trust - International
Series.
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For U.S. Small-Cap Growth Exposure:
Lord Abbett Developing Growth Fund invests in stocks of small growing companies,
many of which are highly specialized and in niche markets. The Fund's management
believes that small developing growth companies may offer better opportunity for
long-term appreciation than larger-sized companies.
================================================================================
o SEC Average Annual Total Return:(1)
(1 Year)
(5 Years)
(10 Years)
as of 3/31/98.
o Seeks undervalued stocks
o Focuses on fundamentals, not events
o Bottom-up stock selection
o 30%-40% turnover
[THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL]
1 Year 5 Years 10 Years
------ ------- --------
Developing
Growth Fund 50.1% 34.8% 25.6%
Lipper Small-Cap
Funds Average 43.5% 24.9% 18.3%
Average Annual Total Returns at net asset
value for periods ending 3/31/98.(2)
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For U.S. Small-Cap Value Exposure:
Lord Abbett Research Fund - Small-Cap Series invests in stocks of undervalued
small companies. The Series' management seeks established companies that boast
successful track records, selling at what they believe are "discounted" prices.
================================================================================
o SEC Average Annual Total Return:(1)
(1 Year)
(Since Inception)
as of 3/31/98.
o Looks for low expectation companies, many in a turnaround situation
o Focuses on fundamentals, not events
o Average company has been in business 40 years
o Strong insider ownership
[THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL]
1 Year 2 Years Since Inception
------ ------- ---------------
Research Fund
-Small-Cap Series 43.4% 34.7% 35.3%
Lipper Small-Cap
Funds Average 43.5% 22.3% 23.0%
Average Annual Total Returns at net asset
value for periods ending 3/31/98.(2)
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For International
Small-Cap Exposure:
Lord Abbett Securities Trust - International Series invests mainly in stocks of
small international companies. Utilizing data from Morningstar, Inc. (an
independent mutual fund rating organization), The New York Times recently ranked
International Series 1 out of 305 Diversified Foreign Stock Funds for the year
ended May 5,1998.
================================================================================
o SEC Average Annual Total Return:(1)
(1 Year)
(Since Inception)
as of 3/31/98.
o Buys successful companies, not countries
o Focuses on fundamentals, not events
o Examines global trends, identifying developments on an industry-by-
industry basis
o Picks the "Best of Breed" to include in the portfolio
[THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL]
1 Year Since Inception
------ ---------------
Securities Trust
-International Series 39.4% 37.0%
Lipper International
Small-Cap Funds Average 14.4% 14.5%
Average Annual Total Returns at net asset
value for periods ending 3/31/98.(2)
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Please note that the investment return and principal value of an investment in
the Alpha Series' underlying funds will fluctuate and that an investor's shares,
when redeemed, may be worth more or less than their original cost.
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(1) Assumes the maximum 5.75% Class A share sales charge. (2) All fund
performance shown is for Class A shares at net asset value, and assumes the
reinvestment of all distributions. Past performance is no indication of future
results. (3) Returns calculated from 12/31/95. The inception date for Lord
Abbett Research Fund - Small-Cap Series is 12/13/95. (4) Returns calculated from
12/31/96. The inception date for Lord Abbett Securities Trust - International
Series is 12/13/96.
<PAGE>
Ask Your Investment Professional About
Lord Abbett's Alpha Series
Consult an investment professional to determine whether small-cap stocks -- and
Lord Abbett Securities Trust Alpha Series -- should play a role in your
diversified portfolio. If you give the green light to small-cap investing,
remember that Alpha's combination of three proven performers into one
convenient, attractively priced fund:
o provides you with potentially higher returns -- with potentially
lower overall volatility -- by diversifying globally among small-cap
markets,
o helps to dampen portfolio risk by spreading investment decisions
among three distinct management teams, and
o eliminates the need to expensively reallocate your assets in the
small-cap market.
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Alpha Series
Minimum Investment: $1,000; $250 for IRAs
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PROPOSED FUND SYMBOLS CUSIP
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CLASS A ALFAX 543915763
CLASS B ALFBX 543915755
CLASS C ALFCX 543915748
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Act Now!
-------------------------
The Alpha Series plans
to close to new investors
when net assets reach
$500 million.
For complete information about any Lord Abbett mutual fund, such as Lord Abbett
Securities Trust - Alpha Series, call your investment professional or Lord
Abbett Distributor llc for a prospectus. A prospectus contains more complete
information about the Series, including charges and expenses. Investors should
read the prospectus carefully before investing.
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All performance results shown are based on average total returns based on
changes in net asset values and assume the reinvestment of all distributions for
the time periods shown, each ended March 31, 1998. Performance for the three
component Funds is Class A share performance. Each Fund offers additional
classes of shares with different pricing arrangements. Please see the prospectus
for complete information about the Fund, including charges and expenses. The
SEC-Required Uniformly Computed Average Annual Rates of Return shown for these
three component Funds reflect a maximum sales charge of 5.75% imposed on Class A
share performance for the periods ended March 31, 1998.
Investments in common stocks are subject to market fluctuations, providing the
potential for gain and the risk of loss. Small-cap companies typically have a
higher risk of failure and historically have experienced a greater-than-average
degree of market volatility. Foreign securities are affected by currency
fluctuation and other foreign risk factors, such as the potential for less
regulation and liquidity and more volatility than U.S. markets; potentially less
publicly available information about companies, banks and governments than for
U.S. counterparts; lack of uniform accounting standards among countries,
impairing comparisons; potentially higher transaction costs and different
securities settlement and trading practices.
The Series issues additional classes of shares with distinct pricing options.
For a full discussion of the differences in pricing alternatives, consult the
Series' prospectus.
[LOGO OMITTED](R) LORD, ABBETT & CO.
Investment Management
A Tradition of Performance Through Disciplined Investing
LORD, ABBETT DISTRIBUTOR LLC
- ----------------------------
The GM Building
767 Fifth Avenue
New York, NY 10153-0203
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
LST-ALPHA6-398 (6/98)
<PAGE>
Why Do We Call It "Alpha"?
Financial dictionaries define "alpha" as the difference between a mutual fund's
actual returns and its expected performance, given its level of risk relative to
its performance benchmark. Technical definitions aside, however, alpha is
commonly used to measure a portfolio manager's skill at dampening volatility
while achieving attractive returns for shareholders. Lord Abbett named this
small-cap fund of funds the Alpha Series because we believe our management teams
have the tools and the talent necessary to outdistance their performance
benchmarks over
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Stephen J. McGruder
CFA, Senior Portfolio Manager of Lord Abbett Developing Growth Fund, has almost
30 years of investment experience in the small-cap arena. Prior to joining Lord
Abbett in 1995, he was Portfolio Manager at Wafra Investment Advisory Group.
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Robert P. Fetch
CFA, Senior Portfolio Manager of Lord Abbett Research Fund - Small-Cap Series,
has over 20 years of investment experience, 15 in selecting small-cap stocks on
a value-driven basis. Prior to joining Lord Abbett, he was a Managing Director
at Prudential Investments and oversaw the Prudential Small Company Fund.
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Chris J. Taylor
Portfolio Manager of Lord Abbett Securities Trust - International Series, has
over 15 years of equity investment experience. Chris is Managing Director of
Fuji Investment Management Company (Europe) Ltd. (FIMCO), of which Lord Abbett
is a minority owner. Prior to joining FIMCO in 1987, Chris was an International
Fund Manager and Analyst for Credit Suisse Asset Management International.
