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Lord Abbett Large-Cap International Fund
SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30, 1999
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Statement of Net Assets
LARGE-CAP INTERNATIONAL FUND April 30, 1999
Shares or
Principal Amount US$ Value
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Investments in Common Stocks 93.56%
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Aegon NV 200 $19,210
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AGF - Assur Gen De France 340 17,975
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Ahold (kon) 600 22,322
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Air Liquide 240 37,086
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Alcatel 340 41,815
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AXA 160 20,694
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Ballard Power Systems Inc. 1,300 49,475
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Cable & Wireless plc 3,215 45,634
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Credit Suisse Group 140 27,811
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Daimler Chrysler AG 500 49,454
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Danone 80 21,422
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Electolux B 1,200 24,357
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Ericsson (L. M.) 1,000 26,292
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Gehe AG 300 13,812
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General Electric Company plc 2,200 23,225
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Heineken 400 19,000
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ING NV 400 24,682
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Jarvis plc 5,000 41,439
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Karlstadt AG 40 18,014
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Mayflower Corporation plc 9,000 30,126
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National Westminster Bank plc 2,000 48,183
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NXT plc 6,000 46,348
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Pilkington plc 20,000 26,232
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Raisio Group plc 1,600 14,648
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SAP 100 32,070
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Siemans AG 500 36,938
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Thomson CSF 500 16,405
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Total SA ('B' shares) 400 54,867
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UBS AG 150 51,024
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Veba 1,000 54,931
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VNU NV 600 24,322
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Wolters Kluwer NV 800 34,885
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Total Investments in Common Stocks (Cost $972,732) 1,014,698
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Other Assets, Less Liabilities 6.44%
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Short-term Investments
FC Discount Note 4.80% due 5/3/1999 (Cost $49,987) $50,000 49,987
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Cash and Receivables, Net of Liabilities 19,818
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Net Assets 100.00% $1,084,503
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<TABLE>
<CAPTION>
Statement of Net Assets
LARGE-CAP INTERNATIONAL FUND April 30, 1999
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<S> <C>
Class A Shares - Net asset value ($ 38,025 / 3,645 shares outstanding) $10.43
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Maximum offering price (net asset value plus sales charge of 5.75% of the offering price) $11.07
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Class B Shares - Net asset value ($ 1,138 / 109 shares outstanding) $10.44
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Class C Shares - Net asset value ($ 1,138 / 109 shares outstanding) $10.44
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Class Y Shares - Net asset value ($ 1,044,202 / 100,113 shares outstanding) $10.43
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
Statement of Operations
12/8/98*
Investment Income to 4/30/99
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<S> <C> <C>
Income Dividends $2,594
Interest 3,522
Total income 6,116
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Expenses Management fee 3,556
Management fee waived (3,556)
Other 1,000
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Total expenses before reimbursement 1,000
Expenses reimbursed by Lord Abbett (1,000)
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Net expenses --
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Net investment income 6,116
Realized and Unrealized Gain (Loss) on Investments
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Net realized loss from investment transactions (1,139)
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Net unrealized appreciation of investments 41,966
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Net realized and unrealized gain on investments 40,827
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Net Increase in Net Assets Resulting from Operations $46,943
*Commencement of operations. See Notes to Financial Statements.
Statement of Changes in Net Assets
12/8/98*
Increase in Net Assets to 4/30/99
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Operations Net investment income $ 6,116
Net realized loss from investment transactions (1,139)
Net unrealized appreciation of investments 41,966
Net increase in net assets resulting from operations 46,943
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Capital share transactions Net proceeds from sales of shares 1,038,577
Cost of shares reacquired (1,017)
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Increase in net assets derived from capital share transactions 1,037,560
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Increase in net assets 1,084,503
Net Assets Beginning of period --
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End of period (including undistributed net investment income of $6,116) $1,084,503
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</TABLE>
*Commencement of operations. See Notes to Financial Statements.
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Financial Highlights
LARGE-CAP INTERNATIONAL FUND April 30, 1999
<TABLE>
<CAPTION>
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Class A Shares Class B Shares Class C Shares Class Y Shares
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12/31/98** 12/31/98** 12/31/98** 12/8/98*
Per Share Operating Performance: to 4/30/99 to 4/30/99 to 4/30/99 to 4/30/99
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<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.31 $10.31 $10.31 $10.00
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Income from investment operations
Net investment income 0.06 0.05 0.05 0.06
Net realized and unrealized gain on investments 0.06 0.08 0.08 0.37
Total from investment operations 0.12 0.13 0.13 0.43
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Net asset value, end of period $10.43 $10.44 $10.44 $10.43
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Total Return (a)(b) 1.16% 1.26% 1.26% 4.30%
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Ratios to Average Net Assets(b):
Expenses including waiver 0.00% 0.00% 0.00% 0.00%
Expenses excluding waiver 0.40% 0.40% 0.40% 0.45%
Net investment income 0.61% 0.50% 0.49% 0.61%
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12/8/98*
Supplemental Data for All Classes to 4/30/99
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Net assets, end of period (000) $1,085
Portfolio turnover rate 76.21%
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</TABLE>
*Commencement of operations. ** Commencement of offering respective class
shares. (a) Total return does not consider the effects of sales loads. (b) Not
annualized. See Notes to Financial Statements.
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. The Trust currently consists of
five separate portfolios. This report covers one of the portfolios - Large-Cap
International Fund (" Fund"). The Fund 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
Fund: (a) Security valuation is determined as follows: Portfolio securities
listed or admitted to trading privileges on any national securities exchange are
valued at the last sales price on the principal securities exchange on which
such securities are traded, or, if there is no sale, at the mean between the
last bid and ask prices on such exchange. Securities traded in the
over-thecounter market are valued at the mean between the last bid and ask
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 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
Trustees. (b) Transactions denominated in foreign currencies are recorded in the
Fund'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 Fund to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income. Therefore, no federal
income tax provision is required. (d) Security transactions are recorded 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.
2. Management Fee and Other Transactions with Affiliates
The Fund has a management agreement with Lord Abbett pursuant to which Lord
Abbett supplies the Fund 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 Fund's investment
portfolio. The management fee is based on average daily net assets at the rate
of .90% per annum. Lord Abbett waived its fee for the period ended April 30,
1999. Lord Abbett has entered into a sub-advisory agreement with Fuji-Lord
Abbett International, Ltd. (" sub-adviser"). Lord Abbett is a minority owner of
the sub-adviser. The sub-adviser furnishes investment advisory services in
connection with the management of the Fund. Lord Abbett pays for the cost of the
sub-adviser's services.
The Fund has Rule 12b-1 plans and agreements with respect to each class of
shares as described below (the "Class A, Class B and Class C Plans") with Lord
Abbett Distributor LLC (" Distributor"), an affiliate of Lord Abbett. The Fund
makes payments to Distributor which uses or passes on such payments to
authorized institutions. Pursuant to the Class A Plan, the Fund pays Distributor
(1) an annual service fee of 0.25% of the average daily net assets of Class A
shares, (2) a onetime 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 C Plans, the Fund
pays Distributor an annual service and distribution
3
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Notes to Financial Statements
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. The 12b-1 plans
and agreements were not in effect during the period ended April 30, 1999.
3. Distributions
Dividends from net investment income, if any, are declared and paid annually.
Net realized gains from investment transactions, if any, are distributed to
shareholders at least annually. At April 30, 1999, the accumulated undistributed
net realized loss for financial reporting purposes, aggregated $(1,139).
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.
4. Capital
Transactions in shares of beneficial interest for the Fund were as follows:
December 31, 1998 through
April 30, 1999
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Class A Shares Amount
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Sales of shares 3,743 $36,198
Shares reacquired (98) (1,017)
Increase 3,645 $35,181
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December 31, 1998 through
April 30, 1999
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Class B Shares Amount
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Sales of shares 109 $1,127
Increase 109 $1,127
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December 31, 1998 through
April 30, 1999
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Class C Shares Amount
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Sales of shares 109 $1,126
Increase 109 $1,126
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December 8, 1998 through
April 30,1999
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Class Y Shares Amount
Sales of shares 100,113 $1,000,126
Increase 100,113 $1,000,126
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There were no capital share transactions for Class P during the period.
As of April 30, 1999, paid in capital amounted to $1,037,560.
5. Purchases and Sales of Securities
Purchases and sales of investment securities (other than U. S. Government
obligations and, short-term investments) were as follows:
Purchases Sales
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Fund $1,636,177 $662,306
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As of April 30, 1999, 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
Appreciation Appreciation (Depreciation)
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Fund $41,966 $107,965 $(65,999)
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The cost of investments for federal income tax purposes is the same as that used
for financial reporting purposes.
6. Trustee's Remuneration
The Trustees of the Fund associated with Lord Abbett and all officers of the
Fund receive no compensation from the Fund for acting as such. Outside Trustees'
fees and retirement costs are allocated among all funds in the Lord Abbett group
based on the net assets of each Fund.
Copyright (C) 1999 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 each
Fund 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.
Numbers to Keep Handy
For Shareholder Account or Statement
Inquiries: 800-821-5129
For Literature Only: 800-874-3733
24-Hour Automated Shareholder
Service Line: 800-865-7582
Visit Our Web Site:
http://www. lordabbett. com
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LORD ABBETT & CO.
Investment Management
A Tradition of Performance Through Disciplined Investing
Lord Abbett mutual fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC
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The GM Building
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New York, NY 10153- 0203
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