LORD ABBETT Securities Trust
Growth & Income Series o International Series
World Bond-Debenture Series o Alpha Series
Visit our
Web Site and get
up-to-date statistics and
other useful information at
www.lordabbett.com
SEMI-ANNUAL Report for the Six Months Ended April 30, 2000
[GRAPHIC OMITTED]
Investment portfolios designed to help you
capture capital growth over the longterm
[GRAPHIC OMITTED]
<PAGE>
REPORT TO SHAREHOLDERS
For the Six-Month Period Ended April 30, 2000
[PHOTO OMITTED]
/s/ Robert S. Dow
-----------------
Robert S. Dow
Chairman
MAY 8, 2000
Table of Contents
Growth & Income Series
--------------------------------------------------------------------------------
When We Shop for Stocks,
We Shop for Bargains 5
Statement of Net Assets 9
International Series
--------------------------------------------------------------------------------
An Experienced Global Manager
Can Help Uncover Great
Companies Worldwide 6
Statement of Net Assets 12
World Bond-Debenture Series
--------------------------------------------------------------------------------
The Flexibility You Need to Pursue
Outstanding Bond Performance
Worldwide 7
Statement of Net Assets 14
Alpha Series
--------------------------------------------------------------------------------
Three Great Small-Cap Funds
Make One Great Core
Investment 8
Statement of Net Assets 16
Data on All Series
--------------------------------------------------------------------------------
Statements of Operations 16
Statements of Changes
in Net Assets 17
Financial Highlights 19
Notes to Financial Statements 22
Lord Abbett Securities Trust completed the first six months of its fiscal year
on April 30, 2000. The following is an overview of some class-specific data for
the period under review.
Growth & Income Series - Six Months Ended 4/30/00
Class A Class B Class C
--------------------------------------------------------------------------------
Net asset value $10.78 $10.72 $10.68
Dividends -- -- --
Capital gains $ 0.562 $ 0.562 $ 0.562
Total return* 4.19% 3.91% 3.93%
International Series - Six Months Ended 4/30/00
Class A Class B Class C Class Y Class P
--------------------------------------------------------------------------------
Net asset value $15.48 $15.34 $15.33 $15.59 $15.51
Dividends $ 0.064 -- -- $ 0.104 $ 0.054
Capital gains $ 0.822 $ 0.822 $ 0.822 $ 0.822 $ 0.822
Total return* 18.65% 18.37% 18.29% 18.68% 18.92%
World Bond-Debenture Series - Six Months Ended 4/30/00
Class A Class B Class C
--------------------------------------------------------------------------------
Net asset value $ 9.09 $ 9.09 $ 9.07
Dividends $ 0.513 $ 0.477 $ 0.477
Capital gains -- -- --
Total return* 3.89% 3.49% 3.49%
Alpha Series - Six Months Ended 4/30/00
Class A Class B Class C
--------------------------------------------------------------------------------
Net asset value $17.39 $17.24 $17.23
Dividends $ 0.213 $ 0.120 $ 0.120
Capital gains $ 0.107 $ 0.107 $ 0.107
Total return* 16.64% 16.20% 16.21%
* Total return, which is not annualized, is the percent change in value with
all dividends and distributions reinvested for the periods shown, using the
SEC-required uniform method to compute such returns.
About Growth & Income Series
Market Review
Hot on the heels of strong economic growth at the end of 1999, when Gross
Domestic Product (GDP) was up approximately 7%, the U.S. economy rumbled
along in the beginning of 2000 fueled by vibrant consumer spending,
above-average productivity gains and robust earnings growth. The Federal
Reserve Board (the Fed), determined to slow the economy to a reasonable
pace, raised short-term interest rates two separate times since January
2000. Amid a strong macroeconomic environment, investors ignored the Fed's
warnings and
--------------------------------------------------------------------------------
Lord, Abbett & Co. is proud to announce we have received a
[GRAPHIC OMITTED] DALBAR award for providing consistently good service to
shareholders, the 1999 Key Honors Award for Mutual Fund
Service. DALBAR, Inc., an independent research firm and
evaluator of mutual fund service, presents the awards to
financial services firms that provide consistently solid
service to clients.
--------------------------------------------------------------------------------
<PAGE>
REPORT TO SHAREHOLDERS
continued to pour money into stocks. High economic growth, strong corporate
earnings and higher interest rates created extreme volatility in the U.S.
equities market. As evidence, growth-oriented stocks outperformed
value-oriented stocks for most of January and February, only to be beaten
by them in March and April.
Portfolio Review
The portfolio's performance closely reflected the stock market in general.
We struggled during January and February when value-oriented stocks were
down, but rebounded sharply in March and April as investors refocused on
company fundamentals and away from speculative earnings growth estimates.
As a result, many stocks of "old economy" companies (more established
companies in cyclical industries, such as transportation and manufacturing)
had new life breathed into them.
Overweighting in stocks of technology companies continued to benefit the
portfolio. While we enjoyed the performance of these stocks, we paid close
attention to accelerating valuations. As a result, we moderately pared our
exposure to technology stocks in March and April, often offsetting gains
from these sales with losses incurred elsewhere in the portfolio to reduce
tax implications. Many of the proceeds from these sales went toward
investments in telecommunications, healthcare and media companies, where we
saw more intrinsic value. Our relatively large exposure to stocks of energy
companies also paid off, as rising oil prices helped boost the price of
many of these stocks. Select stocks of consumer non-cyclical companies (for
example, pharmaceutical and food companies) enjoyed glimpses of sunshine.
Many companies in a variety of industries saw their stocks suffer during
the quarter. Hardest hit were the stocks of companies in economically
sensitive sectors, such as consumer cyclicals (entertainment and retail
companies), capital goods (industrial equipment), basic industries (metals
and chemicals), utilities and transportation. Stocks of financial services
companies also underperformed, but since investors had already discounted
the prospect of a Fed rate increase, many of these stocks fared better than
they typically have during periods of interest rate anxiety.
Outlook
In light of the recent focus on companies with strong underlying
fundamentals and positive earnings, we believe select companies in many
industries offer excellent value. Although we recently pared back our
technology holdings, we will continue to invest selectively in stocks of
mostly non-Internet technology companies, paying close attention to
valuations and long-term business prospects.
We expect corporate profits to increase approximately 10% in 2000, as the
economies of Southeast Asia and Europe continue to improve even as the U.S.
economy slows. Although the Fed may have to raise short-term interest rates
another 25 to 50 basis points during the next 6 to 12 months, long-term
interest rates should stabilize in the 6.5% range. While volatility in the
U.S. equity markets will likely continue, we believe improving global
economies and a benign long-term interest rate environment may bode well
for stocks of large value companies.
RISK: The Series may invest up to 10% of net assets in foreign securities.
Foreign securities markets may not be subject to the same degree of
regulation as the U.S. markets, and may be more volatile and less liquid
than the major U.S. markets. Foreign investments may also be subject to
currency exposure. These and other risks are more fully described in the
prospectus. There can be no assurance that the Series will meet its
investment objective. The Series' portfolio is actively managed and is
subject to change.
About International Series
Market Review
International economies showed mixed performance during the first half of
the Series' fiscal year. Economic growth continued in Europe, while Japan's
economy stumbled slightly and reported a decrease in Gross Domestic
Product. In general, the stocks of small companies, as well as the stocks
of technology and biotechnology companies, exhibited strong performance
during the first half of the period, but suffered toward the end of the
period as investors took profits.
Portfolio Review
We made very few adjustments to the Series' holdings, and focused on adding
to our positions in stocks of companies we already owned. We believe many
of these firms are undervalued and offer strong growth potential. The
stocks of several foreign technology companies in the Series -- Internet
and software companies in particular --
1
<PAGE>
REPORT TO SHAREHOLDERS
performed extremely well, as investors continue to be enamored with these
types of companies. The stocks of telecommunications companies have also
performed particularly well for the Series as demand for mobile data
continues to grow. In addition, the stocks of industrial components
companies also performed well during the quarter, a result of strong demand
from the United States and increasing demand from Europe. On the other
hand, the stocks of auto component companies struggled during the quarter
as these companies suffered from government-induced price pressure in the
United Kingdom and the rest of Europe.
Outlook
We believe the stocks of many technology companies have reached a temporary
peak in value and we are likely to see a short-term shift back toward the
stocks of the so-called "old economy," or non-technology companies. We also
anticipate the European economy will continue its expansion, as higher
incomes and employment rates persist. We continue to feel hopeful about the
economic recovery in Asia. While there are some political issues, such as
the recent death of Japanese Prime Minister Keizo Obuchi, we believe the
restructuring among many Japanese corporations is promising and will likely
benefit the Series' Japanese holdings over the long term. While, in the
near future, we do not anticipate tremendous growth in Japan, we believe
sustainable growth is likely over the long term. We will continue to
examine global trends on an industry-by-industry basis, searching for the
stocks of individual companies that we believe are undervalued and
represent "the best of breed" in their respective industries.
RISK: The Series will invest at least 80% of its total assets in foreign
securities under normal market conditions. The Series primarily invests in
small-cap securities, which may be more volatile in price, normally have
fewer shares outstanding and trade less frequently than large companies.
Foreign securities markets may not be subject to the same degree of
regulation and may be more volatile and less liquid than major U.S.
markets. Foreign investments may also be subject to currency exposure.
These and other risks are more fully described in the prospectus. There can
be no assurance that the Series will meet its investment objective.
The Series' portfolio is actively managed and is subject to change.
About World Bond-Debenture Series
Market Review
During the period, global financial markets were constantly poised for
rising interest rates in the U.S. The U.S. Federal Reserve Board (the Fed)
raised interest rates five times since May 1999 in an attempt to cool
economic growth. For the most part, the U.S. rate hikes had a benign effect
on emerging markets. This was primarily due to two factors: bonds issued in
emerging markets had already experienced a price adjustment following the
Asian and Russian financial crises of 1998; and emerging markets generally
benefit from stronger levels of global growth and higher commodity prices
regardless of interest rate changes. Therefore, a climate of improving
economic performance and political stability led to increased confidence in
bonds of emerging markets, such as Latin America.
Portfolio Review
The Series performed well during the first half of its fiscal year, largely
due to the overall favorable performance of bonds issued in emerging
markets, which comprise approximately 40% of the portfolio. Global
high-yield bonds remained the focus for the portfolio during the period.
Although convertible bonds comprised a relatively small portion of the
portfolio, the pullback in the NASDAQ (which is comprised largely of
technology stocks) in late March had a somewhat negative impact on the
Series' performance. This is because the portfolio held a small number of
both high-yield and convertible bonds of several U.S. companies in the
technology, cable and telecommunications sectors, and a convertible bond
typically depreciates in value as its underlying stock declines in price.
However, while the global high-yield market remained under pressure, we
sought value in many of the "new economy" sectors outside the U.S. These
included high-yield and convertible bonds issued by technology,
telecommunications and cable companies based in Europe, which is currently
experiencing a technology boom similar to what happened in the U.S. several
years ago. Our participation in this sector added to the Series'
performance late in the period.
2
<PAGE>
REPORT TO SHAREHOLDERS
Outlook
We believe that changing attitudes toward global growth will continue to
affect the prices of emerging market and global high-yield assets. We
expect higher commodity prices will generally benefit emerging markets,
since many of these countries export commodities. A more protracted round
of Fed interest rate hikes could limit the upside potential for emerging
market assets. Yet, a great deal depends on the Fed's success in reining in
U.S. economic growth. Concerns about the need for a deeper correction in
U.S. equity markets could lead to more volatility. With its strategic
focus, however, the Series seems well positioned to benefit from the
anticipated continuation of global growth.
RISK: The Series has the ability to invest in foreign securities. Foreign
securities markets may not be subject to the same degree of regulation as
U.S. markets and may be more volatile and less liquid than major U.S.
markets. Foreign investments may also be subject to currency exposure.
These and other risks are more fully described in the prospectus. The
Series also has the ability to invest substantially in high-yield debt
securities. The risks of high-yield debt securities include, but are not
limited to, price volatility and the possibility of default in the timely
payment of interest and principal. There can be no assurance that the
Series will meet its investment objective.
The Series' portfolio is actively managed and is subject to change.
About Alpha Series
Market Review
o U.S. Small-Cap Market. The combination of a strong economy and
increased investor stock trading via the Internet created what we
consider to be a volatile "market of extremes." During the period, we
saw a continued broadening out in the stock market, as investors
sought new opportunities and turned to small- and mid-sized companies.
We also saw the prices of some technology and biotechnology companies
rise to extraordinarily high levels. We believe that in many cases,
these high prices were the result of the predominance of momentum
styles of investing and excitement with everything "tech" not because
of attractive valuations. For the most part, growth-oriented stocks
outperformed value-oriented stocks during the quarter. However, the
month of March saw value-oriented stocks make a rebound as investors
obsession with technology stocks turned to strong company
fundamentals. Playing spoiler to the party, the Fed twice increased
short-term interest rates during the quarter in an effort to slow down
the booming U.S. economy. However, fueled by strong consumer spending,
the U.S. economy continued to expand at a very rapid pace.
o International Equity Markets. International equity markets showed
mixed performance as the first half of the fiscal period ended. While
economic growth continued in Europe, Japan's economy was weaker. It
stumbled slightly and reported a drop in Gross Domestic Product (GDP).
In general, the stocks of small companies, as well as those of
technology and biotechnology companies, exhibited strong performance
during the first half of the fiscal year, but the stock prices of many
of these companies suffered at the end of the period as investors took
profits.
Portfolio Review
o Lord Abbett Developing Growth Fund (Approximately 30% of the Alpha
Series portfolio). The Lord Abbett Developing Growth Fund continued to
execute its proven philosophy of long-term investing in small-growth
companies. Performance benefited from our holdings in the stocks of
technology and biotechnology companies, as many of these companies
enjoyed both strong earnings growth and rapid multiple expansion on
their stocks. We were, however, underweighted in technology and
biotechnology companies relative to the Russell 2000 Growth Index,*
because many of the stocks are, in our opinion,
3
<PAGE>
overvalued. Despite the volatility of small company growth stocks
toward the end of the period, we believe the Fund continues to offer
excellent growth potential over the long term.
o Lord Abbett Research Fund -- Small-Cap Value Series (Approximately 30%
of the Alpha Series portfolio). In response to the significant
gyrations of the stock market, we rotated in and out of stocks a bit
more than usual. Our overweighting in stocks of technology companies
and our underweighting in stocks of financial services companies were
the biggest contributors to the Fund's positive performance. We
maintained a few investments in financial company stocks that we feel
had an advantage over others in the industry. But on the whole, we
avoided companies in this area given the recent rise in interest
rates. We were very pleased with the strong performance of some of the
technology company stocks in the portfolio. We paid close attention to
price targets and valuations for the stocks of technology companies
because of their rapid price movements. We still have a favorable
outlook for select companies in the technology sector, though many
are, in our opinion, tremendously overvalued. We increased our
exposure to energy company stocks during the quarter. Strong global
growth and rising oil prices have created excellent opportunity for
our stocks of oil service companies. The Series' holdings in stocks of
retail companies hurt performance. With consumer spending focused on
other areas of the economy, such as technology, and consumer
confidence waning, many of our stocks of retail and household
companies suffered. Stocks of materials and processing companies
turned in mixed results, but our overweighting in strong performing
companies helped buoy the Series' performance in that sector. We
maintained the Series' weighting of companies involved in healthcare
at about 10% and entered new positions in healthcare services stocks,
many of which have begun to benefit from the lifting of government
regulations.
o Lord Abbett Securities Trust -- International Series (Approximately
40% of the Alpha Series portfolio). We made few adjustments to the
Series' holdings, instead focusing on adding to our positions in
stocks of companies we already owned. We believe many of these firms
are undervalued and offer strong growth potential. The stocks of
several foreign technology companies in the Series -- Internet and
software companies in particular -- performed extremely well, as
investors continued to be enamored with these types of companies. The
stocks of telecommunications companies have done particularly well in
the Series as demand for mobile data continues to grow. On the other
hand, the stocks of auto component companies struggled during the
quarter as these companies suffered from government-induced price
pressure in the United Kingdom and the rest of Europe.
Outlook
o U.S. Small-Cap Market. While the recent relative outperformance of
small companies is encouraging, we remain watchful of the Fed's
attempt to slow the booming U.S. economy. We believe the best course
of action, in the stock market's current volatility, is to continue
making long-term investments. The stocks of small companies with
strong management, visionary business plans and attractive valuations
offer investors long-term opportunity. Should economic growth remain
strong, we believe the prospect for earnings growth for small
companies remains excellent. Additionally, we believe that the
valuations of many different types of small companies are attractive,
especially as compared to the stocks of larger companies.
o International Equity Markets. We believe the stocks of many technology
companies have reached a temporary peak in value and we are likely to
see a short-term shift back toward the stocks of the so-called "old
economy," or non-technology companies. We also anticipate the European
economy will continue its expansion, as higher incomes and employment
rates persist. We continue to feel hopeful about the economic recovery
in Asia. While there are some political issues, such as the recent
death of Japanese Prime Minister Keizo Obuchi, we believe the
restructuring among many Japanese corporations is promising and will
likely benefit the Series' Japanese holdings over the long term. While
we do not anticipate tremendous growth in Japan during the next
quarter, we believe slow sustainable growth is likely over the long
term. We will continue to examine global trends on an
industry-by-industry basis, searching for the stocks of individual
companies that we believe are undervalued and represent "the best of
breed" in their respective industries.
*The Russell 2000(R) Growth Index measures the performance of those
Russell 2000(R) companies with higher price-to-book ratios and higher
forecasted growth values and is not available for direct investment.
The Russell 2000(R) Index measures the performance of the 2,000
smallest companies in the Russell 3000(R) Index.
RISK: The underlying Funds in the Series primarily invest in small-cap
securities, which may be more volatile in price, normally have fewer
shares outstanding and trade less frequently than large companies.
Foreign securities markets may not be subject to the same degree of
regulations and may be more volatile and less liquid than major U.S.
markets. Foreign investments may also be subject to currency exposure.
These and other risks are more fully described in the prospectus.
There can be no assurance that the Series will meet its investment
objective.
The underlying Funds in the Series' portfolio are actively managed and
are subject to change.
4
<PAGE>
WHEN WE SHOP FOR STOCKS, WE SHOP FOR BARGAINS
When it comes to stock selection, the portfolio manager of the Growth
& Income Series tries to be a savvy buyer. We have an experienced team
of financial professionals whose approach includes elements similar to
those taken by smart shoppers.
When you think about how you shop, you realize that you like to find
bargains.
Savvy shoppers often check out the sales racks to find items with a
low price tag. Of course, just because "the price is right" does not
mean that a product is worth buying. A smart shopper will carefully
inspect the item, checking it for defects and overall quality. Another
important test required by the smart shopper: usability and function.
If the item is not in style, or is something that would not likely be
used, there is probably no point in buying it.
Quantitative Research:
Performed on a universe of the 1,000 largest U.S. and multinational
companies to identify those stocks that we believe represent the best
bargains: a "low price tag."
Fundamental Research:
Conducted to assess a company's operating environment, resources and
strategic plans, and to determine its prospects for exceeding the
earnings expectations reflected in its stock price: "overall quality."
Business Cycle Analysis:
Used to assess the economic and interest-rate sensitivity of the
Series' portfolio. This analysis helps the investment management team
assess how adding or eliminating stocks changes a portfolio's overall
sensitivity to economic activity and interest rates: "Is it in style?"
Lord Abbett Securities Trust - Growth & Income Series
Average Annual Class C Share Total Return/1/ as of 4/30/00:
-------------------------------------------------------------------------------
[BAR CHART GRAPHIC OMITTED]
The statistical contents of the bar chart are as follows:
Time Period 1 Year 3 Years 5 Years Life of Series(2)
------ ------- ------- -----------------
6.1% 16.9% 19.0% 16.9%
-------------------------------------------------------------------------------
Growth & Income Series
SEC-required average annual total returns for Class C shares for the
periods ended 3/31/00, with all distributions reinvested:
12.41% 19.66% 17.30%
------ ------ ------
1 Year 3 Years Life of Series(2)
(1) Reflects the percent change at net asset value for Class C shares
which includes the reinvestment of all distributions. The Series
issues additional classes of shares with distinct pricing options. For
a full discussion of the differences in pricing alternatives, please
call Lord Abbett Distributor LLCat 800-874-3733 and ask for the
current prospectus.
(2) The Series commenced operations on 1/3/94.
Past performance is no 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.
5
<PAGE>
AN EXPERIENCED GLOBAL MANAGER CAN HELP UNCOVER
GREAT COMPANIES WORLDWIDE
Lord, Abbett & Co. is a minority owner of the International Series' sub-adviser
Fuji-Lord Abbett International, Limited (Fuji-Lord Abbett).
Fuji-Lord Abbett 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
FIMCO-Tokyo, the majority owner of Fuji-Lord Abbett, is an asset manager with
offices in London, Tokyo and New York serving the pension investment needs of
many premier international companies, including(1):
NISSAN Canon Inc.
Hitachi SONY
A Solid Investment Strategy
Fuji-Lord Abbett's strategy is based on the timely purchase of undervalued
foreign companies which have focused on benefiting from changes within their
industries. Their 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 the
"ideal" company, based on a blend of both quantitative and fundamental
analysis.
The International Series' portfolio currently consists of 54 companies, which
meet our goal of creating a portfolio where the performance of individual
holdings is not diluted across too many securities.
Lord Abbett Securities Trust - International Series
Total Returns Through 4/30/00(2):
-------------------------------------------------------------------------------
[BAR CHART GRAPHIC OMITTED]
The statistical contents of the bar chart are as follows:
Time Period: 1 Year 3 Years Life of Series(3)
------ ------- -----------------
Percent Change: 11.1% 18.4% 18.4%
-------------------------------------------------------------------------------
International Series
SEC-required average annual total return for Class A shares at the maximum sales
charge of 5.75% for the periods ended 3/31/00, with all distributions
reinvested:
39.00% 22.00%
------ ------
1 Year Life of Series(3)
(1) No representation is made as to whether the clients listed approve or
disapprove of FIMCO-Tokyo, Fuji-Lord Abbett International, Limited or the
advisory services they have provided. The clients listed were included
based on a high level of name recognition on the part of the general public
and not based on any other criteria.
(2) Performance is at net asset value for Class A shares. The Series offers
additional classes of shares 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.
(3) The Series commenced operations on 12/13/96.
Past performance is no 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.
6
<PAGE>
THE FLEXIBILITY YOU NEED TO PURSUE
OUTSTANDING BOND PERFORMANCE WORLDWIDE
Ask More from Your Fixed-Income Investments
Would you like to earn more current income while reducing overall risk in
your portfolio? Diversifying your current bond portfolio outside the United
States may potentially be an effective way to pursue both objectives.
Lord Abbett Securities Trust - World Bond-Debenture Series seeks high
current income and capital appreciation. The Series' unlimited ability to
participate in both U.S. and foreign debt markets may provide substantial
yield advantages as compared with investing solely in U.S. bonds. The
decision to diversify into non-U.S. bonds may also make sense from a
risk-diversification standpoint since the economies underlying foreign
markets are not necessarily synchronized with the U.S. economy.
4-Way Portfolio Focus
The centerpiece of World Bond-Debenture Series is a strategic flexibility
that enables it to "go where the yield is" and pursue outstanding bond
investment opportunities worldwide.
As a preliminary step, the Series' experienced portfolio management team
conducts extensive research into economic, political and market factors to
uncover value among economic regions and individual countries. The team's
regional and country decisions are then supplemented by asset allocation
strategies for:
o High-Yield Corporate Debt: The Series' lower-rated debt holdings pay
high income and help to minimize the effects of interest-rate
fluctuations. Price appreciation may result if the credit rating of
debt issuers is upgraded.(1)
o High-Grade Debt: High-quality corporate issues, U.S. Government and
other sovereign-backed securities provide a dependable stream of
current income.
o Equity-Related Securities: Capital appreciation is sought by investing
in convertible bonds that may be exchanged for common stock. When the
stock of the underlying company rises, these equity-related issues
generally increase in value.
o Emerging-Market Debt: Emerging-market debt securities provide
attractive high-income opportunities. Price appreciation may result
from rating upgrades of country debt.(2)
Lord Abbett Securities Trust - World Bond-Debenture Series
Total Returns Through 4/30/00(3):
-------------------------------------------------------------------------------
[BAR CHART GRAPHIC OMITTED]
The statistical contents of the bar chart are as follows:
Time Period: 1 Year Life of Series(3)
------ ------------------
Percent Change: 0.9% 4.6%
-------------------------------------------------------------------------------
World Bond-Debenture Series
SEC-required average annual total return for Class A shares at the maximum
sales charge of 4.75% for the periods ended 3/31/00, with all distributions
reinvested:
0.10.% 3.46%
------ ------
1 Year Life of Series(4)
(1) High-yield/lower-rated bonds are considered to be speculative with
respect to the payment of interest and the return of principal, and
involve greater risks than higher-grade issues, in that they are
especially subject to adverse changes in general market conditions and
in the financial condition of the issuers, and to price fluctuation in
response to changes in interest rates.
(2) Foreign securities markets may not be subject to the same degree of
regulation as U.S. markets and may be more volatile and less liquid
than major U.S. markets. Foreign investments may also be subject to
currency exposure.
(3) Performance is at net asset value for Class A shares. The Series
offers additional classes of shares 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 a current
prospectus.
(4) The Series commenced operations on 12/18/97.
Past performance is no 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.
7
<PAGE>
THREE GREAT SMALL-CAP FUNDS
MAKE ONE GREAT CORE INVESTMENT
Don't Chase Past Small-Cap Performance Investing in small companies that
are industry leaders or offer breakthrough products can be very rewarding.
U.S. growth, U.S. value and international small-cap markets, however,
seldom move in the same direction at the same time. This means investors
who chase small-cap returns by investing in sectors with the best recent
results are often disappointed when the sector they choose fails to produce
the highest immediate returns.
Choose Lord Abbett's Unique "Fund of Funds" Approach We believe Lord Abbett
Securities Trust - Alpha Series is a smart way to tap the potential of the
small-cap arena (generally, companies with market capitalizations of less
than $2 billion) and merits your consideration as a core investment. The
Series' "fund of funds" approach accesses three distinct portfolios and
management teams.
o 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 (approximately 30% of Alpha Series
portfolio).
o For U.S. Small-Cap Value Exposure: Lord Abbett Research Fund -
Small-Cap Value Series invests in stocks of established undervalued
small companies (approximately 30% of Alpha Series portfolio).
o For International Small-Cap Exposure: Lord Abbett Securities Trust -
International Series invests mainly in stocks of small international
companies (approximately 40% of Alpha Series portfolio).
Please note that the Alpha Series portfolio is actively managed and that
its percentage allocations may change from time to time.
For Equity Unique "Fund of Funds" Benefits
o Provides potentially higher returns by diversifying globally among
small-cap markets.
o Potentially dampens portfolio risk by spreading investment decisions
among three distinct management teams.
o Eliminates the need to expensively reallocate your small-cap assets.
Lord Abbett Securities Trust - Alpha Series
Total Returns Through 4/30/00(1):
-------------------------------------------------------------------------------
[BAR CHART GRAPHIC OMITTED]
The statistical contents of the bar chart are as follows:
Time Period 1 Year Life of Series(2)
------ -----------------
Percent Change 13.6% 12.3%
-------------------------------------------------------------------------------
Alpha Series
SEC-required average annual total return for Class A shares at the maximum
sales charge of 5.75% for the periods ended 3/31/00, with all distributions
reinvested:
32.60% 12.30%
------ ------
1 Year Life of Series(2)
(1) Performance is at net asset value for Class A shares. The Series
offers additional classes of shares 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 a current
prospectus.
(2) The Series commenced operations on 12/29/97.
Past performance is no 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.
8
<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 6/30/2000, this report must be accompanied by Lord Abbett
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
Statement of Net Assets (unaudited)
Growth & Income Series April 30, 2000
<TABLE>
<CAPTION>
Investments Shares Value
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 95.22%
-----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense 1.47% Boeing Co.-World's leading commercial aircraft manufacturer 90,800 $ 3,603,625
-----------------------------------------------------------------------------------------------------------------------------------
Aluminum 1.95% Alcoa, Inc.-Largest U.S. aluminum producer 73,700 4,781,287
-----------------------------------------------------------------------------------------------------------------------------------
Auto Parts: Original Delphi Automotive Systems Corp.-Supplier of automotive components,
Equipment .16% integrated systems and modules 21,037 402,333
-----------------------------------------------------------------------------------------------------------------------------------
Automotive .79% General Motors Corp.-Worldwide auto producer 20,600 1,928,675
-----------------------------------------------------------------------------------------------------------------------------------
Banks: Money Center 2.61% Bank of New York Co., Inc.-Provides a complete range of banking and
other financial services to corporations and individuals worldwide 61,800 2,537,662
Chase Manhattan Corp.-Major money-center bank holding company 53,800 3,876,962
Total 6,414,624
-----------------------------------------------------------------------------------------------------------------------------------
Banks: Regional 6.40% Bank One Corp.-Leading bank holding company 115,840 3,533,120
Comerica, Inc.-Midwestern regional bank holding company 42,150 1,786,106
First Tennessee National Corp.-Provides a range of financial services 131,700 2,502,300
Fleet Boston Corp.-Provides a range of financial services 53,061 1,880,349
Mellon Financial Corp.-Commercial bank located in Pittsburgh, PA 100,000 3,212,500
Wells Fargo & Co.-A diversified financial services company providing
banking, insurance, investments, mortgage and consumer finance 68,200 2,800,463
Total 15,714,838
-----------------------------------------------------------------------------------------------------------------------------------
Cable Services 2.57% Time Warner, Inc.-A major entertainment and communications firm 70,000 6,295,625
-----------------------------------------------------------------------------------------------------------------------------------
Chemicals 2.47% Dow Chemical Co.-Leading global chemical producer 27,700 3,130,100
Rohm & Haas Co.-Manufacturer of specialty chemicals and plastics 56,200 2,002,125
Union Carbide Corp.-Major U.S.-based producer of plastics and chemicals 15,700 926,300
Total 6,058,525
-----------------------------------------------------------------------------------------------------------------------------------
Communications Technology
1.22% *QUALCOMM, Inc.-Leading producer of communications technologies and products 27,600 2,992,875
-----------------------------------------------------------------------------------------------------------------------------------
Computer Services 2.87% *Computer Sciences Corp.-Provides information technology services to
commercial and government markets 30,300 2,471,344
First Data Corp.-Information supplier for credit card
processing and related services 93,900 4,571,756
Total 7,043,100
-----------------------------------------------------------------------------------------------------------------------------------
Computer: Hardware 9.29% *Apple Computer, Inc.-Main personal computer producer 42,000 5,210,625
Compaq Computer Corp.-Develops and markets hardware, software,
solutions and services 89,800 2,626,650
*EMC Corp.-A supplier of high-performance storage devices and related services 31,400 4,362,638
International Business Machines Corp.-World's largest computer manufacturer 55,600 6,206,350
*Sun Microsystems, Inc.-Supplier of network computer products
including workstations, servers, software, microprocessors and a
full range of services and support 47,900 4,403,806
Total 22,810,069
-----------------------------------------------------------------------------------------------------------------------------------
Computer: Software 1.45% *Oracle Corp.-Supplies software for enterprise information management 44,400 3,549,225
-----------------------------------------------------------------------------------------------------------------------------------
Conglomerates 2.24% Honeywell International, Inc.-A diversified technology and manufacturing
company with operations around the world 51,900 2,906,400
Minnesota Mining & Manufacturing Co.-Diversified global
manufacturer of value-added industrial, consumer and medical products 30,000 2,595,000
Total 5,501,400
9
<PAGE>
Statement of Net Assets (unaudited)
Growth & Income Series April 30, 2000
Investments Shares Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Drugs 6.22% American Home Products Corp.-Producer of drugs, food, housewares,
packaged medicine and medical products 83,500 $ 4,691,656
Bristol-Myers Squibb Co.-Major worldwide pharmaceutical concern with
interests in infant nutrition, non-prescription medications, medical
devices and toiletries 51,500 2,700,531
Pharmacia Corp.-Manufactures and sells pharmaceuticals, agricultural
products and food ingredients 87,703 4,379,669
SmithKline Beecham plc ADR-Major U.K.-based health care company 50,700 3,485,625
Total 15,257,481
----------------------------------------------------------------------------------------------------------------------------------
Electric Power 3.29% Dominion Resources, Inc.-Diversified utility holding company in
Virginia and northeastern North Carolina 63,600 2,862,000
Duke Energy Corp.-Electric utility company serving North
and South Carolina 45,700 2,627,750
Unicom Corp.-Produces, purchases, transmits, distributes and sells
electricity across northern Illinois 65,200 2,591,700
Total 8,081,450
----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment 1.27% Emerson Electric Co.-Diversified manufacturer of consumer and industrial
electrical components 27,600 1,514,550
Rockwell International Corp.-Leading producer of space systems,
electrical and electronic products including defense, telecommunications
and factory automation systems 40,700 1,602,563
Total 3,117,113
----------------------------------------------------------------------------------------------------------------------------------
Electrical: Household .17% *Energizer Holdings, Inc.-Manufactures dry cell batteries and flashlights 24,000 409,500
----------------------------------------------------------------------------------------------------------------------------------
Electronics 1.07% *Agilent Technologies, Inc.-Provides solutions to markets within the
communications, electronics, life sciences and health care industries 29,600 2,623,300
----------------------------------------------------------------------------------------------------------------------------------
Electronics:
Semiconductor 2.80% Texas Instruments, Inc.-Major producer of semiconductors and
electronic equipment 42,200 6,873,325
----------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & Services Schlumberger Ltd.-Provider of oilfield services 52,100 3,988,906
2.68% Transocean Sedco Forex, Inc.-An offshore drilling contractor 54,918 2,581,146
Total 6,570,052
----------------------------------------------------------------------------------------------------------------------------------
Financial Services 1.51% Morgan Stanley Dean Witter & Co.-Major brokerage and credit card company 48,400 3,714,700
----------------------------------------------------------------------------------------------------------------------------------
Financial: Miscellaneous .61% FNMA-America's largest supplier of conventional home mortgages 25,000 1,507,813
----------------------------------------------------------------------------------------------------------------------------------
Food 4.05% Best Foods-Producer of diversified packaged foods 91,700 4,607,925
General Mills, Inc.-A leading producer of consumer foods and operator
of restaurant chains 69,100 2,513,513
Ralston-Ralston Purina Group-Produces and sells dog and cat foods 72,000 1,273,500
Sara Lee Corp.-A diversified maker of branded food products, apparel
and household consumer products 103,500 1,552,500
Total 9,947,438
----------------------------------------------------------------------------------------------------------------------------------
Health Care Services 2.71% CIGNA Corp.-Multi-line insurance and medical services company 51,100 4,075,225
UnitedHealth Group, Inc.-Owns and manages organized health systems
in the United States and internationally 38,700 2,580,806
Total 6,656,031
----------------------------------------------------------------------------------------------------------------------------------
Hospital Supplies .93% Baxter International, Inc.-World's leading distributor and major
manufacturer of hospital supplies and related medical equipment 35,000 2,279,375
----------------------------------------------------------------------------------------------------------------------------------
Insurance 4.91% Ace Ltd.-Insurance holding company specializing in property and
casualty coverage 247,100 5,914,956
American General Corp.-A leading provider of financial services,
including life/health insurance, annuities, consumer credit and
mortgage financing 33,600 1,881,600
*MetLife, Inc.-Provides insurance and financial services to a range
of individual and institutional customers 256,800 4,253,250
Total 12,049,806
----------------------------------------------------------------------------------------------------------------------------------
Machinery: Agriculture .54% Deere & Co.-World's largest manufacturer of farm equipment 32,800 1,324,300
----------------------------------------------------------------------------------------------------------------------------------
Natural Gas 3.56% Columbia Energy Group-Utility holding company and natural gas distributo 45,000 2,823,750
NICOR, Inc.-Natural gas distributor in Illinois 70,000 2,371,250
The Coastal Corp.-A diversified gas pipeline company 70,400 3,533,200
Total 8,728,200
----------------------------------------------------------------------------------------------------------------------------------
Oil: Integrated BP Amoco plc ADR-Major integrated petroleum and natural gas
International 7.29% company with sizeable interests in chemicals 74,868 3,818,268
Chevron Corp.-Worldwide petroleum company with important interests in
chemicals and minerals 32,400 2,758,050
10
<PAGE>
Statement of Net Assets (unaudited)
Growth & Income Series April 30, 2000
Investments Shares Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Exxon Mobil Corp.-Operates petroleum and petrochemicals businesses
on a worldwide basis 145,606 $ 11,311,766
Total 17,888,084
-----------------------------------------------------------------------------------------------------------------------------------
Oil: Refining .51% Tosco Corp.-Refines and markets petroleum products 39,200 1,256,850
-----------------------------------------------------------------------------------------------------------------------------------
Paper and Forest Champion International Corp.-Produces and sells wood products
Products 2.50% and paper for business communications, commercial printing,
publications and newspapers 54,100 3,557,075
Georgia Pacific Corp.-Producer of paper and forest products 70,100 2,576,175
Total 6,133,250
-----------------------------------------------------------------------------------------------------------------------------------
Publishing .41% Tribune Co.-Major Chicago-based newsprint company 25,900 1,006,863
-----------------------------------------------------------------------------------------------------------------------------------
Retail 2.30% *Consolidated Stores Corp.-Major U.S. retailer specializing in
closeouts and toys 176,200 2,191,488
Wal-Mart Stores, Inc.-Largest U.S. discount retailer 62,400 3,455,400
Total 5,646,888
-----------------------------------------------------------------------------------------------------------------------------------
Telecommunications 9.34% AT&T Corp.-Global telecommunications giant 100,500 4,692,093
Alltel Corp.-Regional telephone holding company 35,700 2,378,512
Bell Atlantic Corp.-Regional telephone company 58,700 3,477,975
BellSouth Corp.-Regional telephone company 62,400 3,038,100
*MCI WorldCom, Inc.-Diversified telecommunications company 87,562 3,978,598
SBC Communications, Inc.-Regional telephone monopoly 41,000 1,796,313
Sprint Corp. (FON Group)-Third-largest long-distance
telephone system 40,000 2,460,000
*Sprint Corp. (PCS Group)-Nationwide wireless communications 20,000 1,100,000
Total 22,921,591
-----------------------------------------------------------------------------------------------------------------------------------
Transportation: Miscellaneous United Parcel Service, Inc. Class B-Delivers packages and
1.06% documents throughout the United States and in other countries 39,300 2,613,450
Total Investments in Common Stocks (Cost $159,543,079) 233,703,061
-----------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments 5.12%
-----------------------------------------------------------------------------------------------------------------------------------
Associates Corp. NA 6.03% due 5/1/2000 $ 1,740,000 1,740,000
Prudential Funding Corp. 6.03% due 5/1/2000 10,820,000 10,820,000
Total Short-Term Investments (Cost $12,560,000) 12,560,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 100.34% (Cost $172,103,079) 246,263,061
-----------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities (.34)%
-----------------------------------------------------------------------------------------------------------------------------------
Cash 97,406
-----------------------------------------------------------------------------------------------------------------------------------
Receivables for: Securities sold 12,187,053
Capital stock sold 1,223,267
Dividends 239,469
Total Other Assets 13,747,195
-----------------------------------------------------------------------------------------------------------------------------------
Payables for: Securities purchased 13,838,197
Capital stock reacquired 174,128
Other 569,404
Total Liabilities 14,581,729
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (834,534)
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% $245,428,527
-----------------------------------------------------------------------------------------------------------------------------------
Class A Shares-Net asset value
($123,013,284 / 11,412,669 shares outstanding) $10.78
Maximum offering price (net asset value plus
sales charge of 5.75% of the offering price) $11.44
Class B Shares-Net asset value
($14,220,628 / 1,326,850 shares outstanding) $10.72
Class C Shares-Net asset value
($108,194,615 / 10,135,192 shares outstanding) $10.68
*Non-income producing security.
ADR American Depositary Receipt.
See Notes to Financial Statements.
11
<PAGE>
Statement of Net Assets (unaudited)
International Series April 30, 2000
Investments Shares US$ Value
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 92.08%
---------------------------------------------------------------------------------------------------------------------------------
Australia 2.07% *Novogen Ltd.-Biotechnology company specializing in plant
sterol-based OTC and eventually ethical pharmaceutical products 2,900,000 $ 5,856,344
---------------------------------------------------------------------------------------------------------------------------------
Canada 11.77% *Ballard Power Systems, Inc.-Designs, manufactures and develops
methanol- or hydrogen-based fuel cells that are the only true zero
emission power source for vehicles 250,000 20,673,014
*Burntsand, Inc.-An electronic business solutions integrator, focusing
on the business-to-business environment 1,000,000 4,792,764
*EcomPark, Inc.-A supplier of fully integrated Internet solutions to
major corporations as well as an Internet company incubator fund 3,120,000 3,664,642
Timberwest Forest Corp.-Forestry land block consolidator that also
operates the assets to produce timber and pulp 600,000 4,212,232
Total 33,342,652
---------------------------------------------------------------------------------------------------------------------------------
France 12.18% Alcatel-Supplier of telecommunication systems and solutions to
major telecompanies 40,000 9,270,270
Cap Gemini SA-Offers computer consulting services 30,000 5,889,348
*Guillemot Corp.-Designs, manufactures and distributes computer sound
and video cards and gaming peripherals 142,800 7,397,675
UBI Soft Entertainment SA 3.8% Conv. Debt due 7/16/2005-One of the
largest producers, translators and distributors of electronic games
software in Europe 13,475 698,065
*UBI Soft Entertainment SA-One of the largest producers, translators and
distributors of electronic games software in Europe 242,375 11,223,394
Total 34,478,752
---------------------------------------------------------------------------------------------------------------------------------
Germany 21.08% CeWe Color Holding AG-The biggest independent photographic
laboratories group worldwide 319,055 6,959,355
Eigner & Partner-A major software developer 9,979 2,834,036
*LHS Group, Inc.-Leading global provider of
client/server, modular, customer care and billing
services to telecom utilities 150,000 5,862,083
Marschollek Laut Und Part - Germany's largest
independent personal life insurance and
investment consultancy services 30,000 15,868,521
MobilCom AG - Provides mobile telephone service in
Germany 45,000 5,521,264
SAI Automotive AG - Europe's largest supplier of specialist car
interior modules, cockpits and doors 144,325 1,016,566
SAP AG Non Vtg Pref Dem - World's fourth-largest software
firm, dominating the global market for relational database and
software tools 12,500 5,862,083
SKW Trostberg AG - Specialist niche chemical firm producing
additives, coverings, adhesives, anti-corrosive
paints and oil well drilling products 390,000 2,392,548
*Vectron Systems AG - Manufactures and markets electronic cash-register
systems and related data communications software 140,000 7,049,041
Vossloh AG - Manufacturer of electrical lighting equipment as well
as railway truck fasteners and the related installation equipment 200,000 3,090,090
*W.E.T. Automotive Systems AG-Leading global supplier of car seat
heating systems 90,000 3,239,141
Total 59,694,728
---------------------------------------------------------------------------------------------------------------------------------
Japan 19.80% Asahi Chemical Industry Co., Ltd.-Produces synthetic fibers, industrial
chemicals, petrochemicals, plastics, rubber and food products 800,000 4,598,892
Colin Corp.- Manufactures monitoring equipment for patients, including
blood pressure monitors, biodata monitors, tonometers and other monitors 39,000 4,721,812
Honda Tsushin Kogyo Co., Ltd.-Develops, designs, manufactures and markets
electrical connectors 107,500 4,023,799
Japan Asia Investment Co., Ltd.-Invests in and offers consulting and
information services to small and medium-sized private companies 750,000 4,124,308
Katokichi Co., Ltd.-Manufactures and sells frozen and processed food products 312,000 7,583,735
Nomura Securities Co., Ltd.-A comprehensive financial service company 320,000 8,044,364
Omron Corp.-Manufactures components, equipment and systems for
factory automation 270,800 7,358,153
Park24 Co., Ltd.-Operates hourly parking lots and sells
parking-related machinery and tools 75,000 9,274,494
Toyoda Gosei Co., Ltd.-Manufactures resin and rubber parts 110,000 6,353,975
Total 56,083,532
---------------------------------------------------------------------------------------------------------------------------------
Netherlands 1.71% Getronics NV-Provides computer products and computer services
around the world 80,000 4,769,645
Stork NV-Engineering and service company focused on aircraft parts,
processing machinery and food manufacturing equipment 6,500 80,342
Total 4,849,987
12
<PAGE>
Statement of Net Assets (unaudited)
International Series April 30, 2000
Investments Shares US$ Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
United Kingdom 23.47% Ashtead Group plc-Major construction plant and machinery hire firm 2,000,000 $ 2,858,440
DBS Management plc-Supplies independent financial advisors with
financial product evaluation and administration software and services 1,665,319 5,122,404
First Technology plc-Designs and manufactures equipment and systems
for auto safety 944,500 6,485,381
*Gameplay.com plc-Operates an Internet Web site which allows users
to purchase and sample computer games 997,000 4,452,914
Hays plc-Offers a wide variety of business services such as
records storage and building maintenance 1,000,000 6,854,819
Jarvis plc-Specialist engineering and service company focused on
the installation and maintenance of related track and signals 1,000,000 2,244,808
London Bridge Software Holdings plc-Develops software solutions
and provides consultancy and related services for credit risk management 79,300 4,306,812
Mayflower Corp. plc-Specialist supplier of bus, coach and car bodies 2,750,000 6,023,696
*NXT plc-Makes high-quality loudspeakers and has developed the first
commercial flat-panel speaker 700,000 12,831,910
Pilkington plc-Manufactures and distributes glass for the building
and automotive markets 4,081,585 4,470,223
Precoat International plc-Processes and distributes precoated
steel in Europe and North America 760,000 1,357,759
Regal Hotel Group plc-Owns and operates more than 100 medium quality,
medium-sized UK-based hotels and inns 5,000,000 1,708,850
Trifast plc-Distributes and manufactures industrial fasteners,
particularly for electronics and electrical products 465,000 7,476,607
UTD Assurance Group-A major insurance provider 3,500,000 271,863
Total 66,466,486
---------------------------------------------------------------------------------------------------------------------------------
Total Investments in Common Stocks (Cost $228,884,291) 260,772,481
---------------------------------------------------------------------------------------------------------------------------------
Short-Term
Investment 7.35%
---------------------------------------------------------------------------------------------------------------------------------
FHLMC Discount Note 5.88% due 5/1/2000 (Cost $20,803,201) $ 20,803,201 20,803,201
--------------------------------------------------------------------------------------------------------------------------------
Total Investments 99.43% (Cost $249,687,492) 281,575,682
--------------------------------------------------------------------------------------------------------------------------------
Other Assets,
Less Liabilities .57%
--------------------------------------------------------------------------------------------------------------------------------
Cash 146,341
--------------------------------------------------------------------------------------------------------------------------------
Receivables for: Securities sold 19,385,000
Capital stock sold 2,759,064
Dividends 621,079
Total Other Assets 22,911,484
--------------------------------------------------------------------------------------------------------------------------------
Payables for: Securities purchased 20,799,802
Capital stock reacquired 181,513
Other 305,575
Total Liabilities 21,286,890
--------------------------------------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities 1,624,594
--------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% $283,200,276
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares-Net asset value ($139,830,236 / 9,032,028 shares outstanding) $15.48
Maximum offering price (net asset value plus sales charge of 5.75% of the offering price) $16.42
Class B Shares-Net asset value ($33,039,320 / 2,154,439 shares outstanding) $15.34
Class C Shares-Net asset value ($26,060,014 / 1,699,784 shares outstanding) $15.33
Class P Shares-Net asset value ($1,418.87 / 91.51 shares outstanding) $15.51
Class Y Shares-Net asset value ($84,269,287 / 5,404,898 shares outstanding) $15.59
*Non-income producing security.
See Notes to Financial Statements.
13
<PAGE>
Statement of Net Assets (unaudited)
International Series April 30, 2000
Principal Amount
Investments In Local Currency (000) US$ Value
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments in Securities 97.44%
--------------------------------------------------------------------------------------------------------------------------------
Foreign 74.48%
--------------------------------------------------------------------------------------------------------------------------------
Argentina 1.79% Republic of Argentina Zero coupon due 2001 USD 225 $ 205,425
--------------------------------------------------------------------------------------------------------------------------------
Brazil 3.58% Marlim Petro 13.125/2004+ USD 250 257,500
Republic of Brazil Zero coupon due 2024 USD 200 153,510
Total 411,010
--------------------------------------------------------------------------------------------------------------------------------
Bulgaria 2.62% Bulgaria Zero coupon due 2011 USD 400 301,000
--------------------------------------------------------------------------------------------------------------------------------
Canada 3.06% Call-Net Enterprises, Inc. 0 to 2003, 8.94 to 2008** USD 350 138,250
Clearnet Communications 0 to 2004, 10.125 to 2009** USD 250 145,000
Rogers Communication, Inc. 8.75/2007(a) CAD 100 67,504
Total 350,754
--------------------------------------------------------------------------------------------------------------------------------
Colombia .77% Republic of Colombia 9.75/2009 USD 100 88,000
--------------------------------------------------------------------------------------------------------------------------------
Costa Rica .80% Banco Central Costa Rica 6.25/2010 USD 100 92,000
--------------------------------------------------------------------------------------------------------------------------------
France 1.67% AXA SA 2.5/2014(a) EUR 120 191,404
--------------------------------------------------------------------------------------------------------------------------------
Greece 2.02% Hellenic Republic 6.5/2014(a) GRD 55,000 153,292
Hellenic Republic 8.9/2003(a) GRD 27,000 78,774
Total 232,066
--------------------------------------------------------------------------------------------------------------------------------
Indonesia 1.34% Indah Kiat International Finance Co. 12.5/2006 USD 200 154,000
--------------------------------------------------------------------------------------------------------------------------------
Ireland 2.01% Esat Telecom Group, Inc. 11.875/2009(a) EUR 200 230,566
--------------------------------------------------------------------------------------------------------------------------------
Kazakhstan 2.38% Republic of Kazakhstan 13.625/2004+ USD 250 273,750
--------------------------------------------------------------------------------------------------------------------------------
Malaysia 1.32% Malaysia 8.75/2009 USD 150 151,973
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mexico 9.57% Coca-Cola Femsa SA de CV 8.95/2006 USD 250 252,500
Grupo Minero Mexico SA 8.25/2008 USD 250 213,750
Grupo Televisa SA 0 to 2001, 13.25 to 2008** USD 350 344,750
TV Azteca SA de CV 10.5/2007 USD 200 184,500
United Mexican States 9.875/2005 USD 100 103,125
Total 1,098,625
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Netherlands 10.27% ASM Lithography Holding CV 4.25/2004+ USD 100 120,375
KPNQwest BV 7.125/2009(a) EUR 225 198,868
STMicroelectronics CV Zero coupon due 2009 USD 115 195,978
United Pan-Europe Comm 0 to 2004, 12.5 to 2009** USD 300 151,500
United Pan-Europe Comm NCV 11.25/2009+ USD 350 329,000
Versatel Telecom BV 4/2005(a) EUR 200 182,906
Total 1,178,627
--------------------------------------------------------------------------------------------------------------------------------
Peru 1.17% Republic of Peru 4.5/2017 USD 200 134,886
--------------------------------------------------------------------------------------------------------------------------------
Philippines 2.42% Republic of Philippines 8.875/2008 USD 300 278,250
--------------------------------------------------------------------------------------------------------------------------------
Republic of Korea 1.80% Republic of Korea 8.875/2008 USD 200 206,768
--------------------------------------------------------------------------------------------------------------------------------
Russia 2.31% Russia 12.75/2028+ USD 325 264,875
--------------------------------------------------------------------------------------------------------------------------------
Slovak Republic 2.20% Slovak Wireless Finance Co. NCV 11.25/2007(a)+ EUR 275 252,433
--------------------------------------------------------------------------------------------------------------------------------
Switzerland 1.31% Roche Holdings, Inc. CV Zero coupon due 2015+ USD 200 150,278
--------------------------------------------------------------------------------------------------------------------------------
Turkey 2.37% Republic of Turkey 11.875/2030 USD 250 271,875
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
United Kingdom 15.11% Colt Telecom Group plc CV 2/2007(a)+ EUR 150 122,354
Comcast UK Cable 0 to 2000, 11.2 to 2007** USD 200 193,000
Esprit Telecom Group plc 11/2008(a)+ DEM 350 141,497
NTL, Inc. 0 to 2004, 9.75 to 2009(a)** GBP 625 555,862
RSL Communications plc 0 to 2003, 10 to 2008(a)** DEM 300 81,654
Swiss Life Finance Ltd. Conv. 2/2003+ USD 150 152,062
Telewest Communication plc 0 to 2004, 9.25 to 2009** USD 300 169,500
14
<PAGE>
Statement of Net Assets (unaudited)
World Bond-Debenture Series April 30, 2000
Principal Amount
Investments In Local Currency (000) US$ Value
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Viatel, Inc. 11.25/2008 USD 200 $ 179,000
Viatel, Inc. 11.5/2009(a) EUR 150 122,483
Viatel, Inc. 14.5/2011 USD 454 17,366
Total 1,734,778
--------------------------------------------------------------------------------------------------------------------------------
Venezuela 2.59% Republic of Venezuela 7/2007 USD 381 297,922
--------------------------------------------------------------------------------------------------------------------------------
Total Investments in Foreign Securities (Cost $8,939,658) 8,551,265
--------------------------------------------------------------------------------------------------------------------------------
United States 22.96%
--------------------------------------------------------------------------------------------------------------------------------
Allbritton Communications Co. 9.75/2007 USD 125 120,000
America West Airlines Inc. 10.75/2005 USD 100 92,500
Arbor Software Corp. Conv. 4.5/2005 USD 125 104,616
Chancellor Media 10.5/2007 USD 100 107,750
Charter Communication Holdings NCV 10/2009+ USD 140 134,400
Fox/Liberty Networks LLC 8.875/2007 USD 200 201,000
GST Telecommunications, Inc. USD 3,000 shs 10,125
Global Crossing Holdings Ltd. 9.625/2008 USD 150 147,375
Huntsman ICI Chemicals 10.125/2009(a) EUR 200 189,950
Iron Mountain, Inc. 10.125/2006 USD 150 147,000
Level 3 Communications, Inc. NCV 11/2008+ USD 100 96,500
Merrill Lynch & Co. Conv. 1.5/2005 USD 200 226,500
Metromedia Fiber Network 10/2009 USD 190 181,925
Nextlink Communications, Inc. 0 to 2004, 12.25 to 2009** USD 350 204,750
Nortek, Inc. 8.875/2008 USD 175 159,688
Orbital Imaging Corp. 11.625/2005+ USD 150 75,750
Orbital Imaging Corp. Warrants Expiring 3/1/2005* USD 150 shs 3,000
Pierce Leahy Corp. 11.125/2006 USD 200 205,000
Renaissance Media Group 0 to 2003, 10 to 2008** USD 100 68,500
Sinclair Broadcasting Group, Inc. 10/2005 USD 100 95,875
Splitrock Services, Inc. 11.75/2008 USD 50 53,125
Splitrock Services, Inc. Warrants Expiring 7/15/2008* USD 50 shs 10,922
Total Investments in United States Securities (Cost $2,867,423) 2,636,251
--------------------------------------------------------------------------------------------------------------------------------
Total Investments in Securities 97.44% (Cost $11,807,081) 11,187,516
--------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities 2.56% 293,603
--------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% $11,481,119
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares-Net asset value ($8,069,663 / 888,216 shares outstanding) $9.09
Maximum offering price (net asset value plus sales charge of 4.75% of the offering price) $9.54
Class B Shares-Net asset value ($1,782,002 / 196,037 shares outstanding) $9.09
Class C Shares-Net asset value ($1,629,454 / 179,614 shares outstanding) $9.07
(a) Investments in non-U.S. dollar-denominated securities
(22.38%). The remaining securities (77.62%) are
invested in U.S. dollar-denominated securities.
* Non-income producing security.
** Deferred-interest debentures pay no interest for a
stipulated number of years, after which they pay a
predetermined coupon rate.
+ Restricted security under Rule 144A.
See Notes to Financial Statements.
15
<PAGE>
Statement of Net Assets (unaudited)
Alpha Series April 30, 2000
Investments Shares Value
--------------------------------------------------------------------------------------------------------------------------------
Investments in Mutual Funds 98.99%
--------------------------------------------------------------------------------------------------------------------------------
Lord Abbett Developing Growth Fund, Inc.-Class Y 3,431,939 $ 62,186,728
Lord Abbett Research Fund-Small-Cap Value Series-Class Y 3,498,856 60,915,083
Lord Abbett Securities Trust-International Series-Class Y 5,364,893 83,638,680
Total Investments in Mutual Funds (Cost $186,720,127) 206,740,491
--------------------------------------------------------------------------------------------------------------------------------
Short-Term Investment .47%
--------------------------------------------------------------------------------------------------------------------------------
Prudential Funding Corp. 6.03% due 5/1/2000 (Cost $975,000) 975,000
--------------------------------------------------------------------------------------------------------------------------------
Total Investments 99.46% (Cost $187,695,127) 207,715,491
--------------------------------------------------------------------------------------------------------------------------------
Cash and Receivables, Net of Liabilities .54% 1,137,665
--------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.00% $208,853,156
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares-Net asset value ($96,605,651 / 5,556,446 shares outstanding) $17.39
Maximum offering price (net asset value plus sales charge of 5.75% of the offering price) $18.45
Class B Shares-Net asset value ($68,191,143 / 3,955,778 shares outstanding) $17.24
Class C Shares-Net asset value ($44,056,362 / 2,557,559 shares outstanding) $17.23
</TABLE>
See Notes to Financial Statements.
Statements of Operations (unaudited)
<TABLE>
<CAPTION>
Six Months Ended 4/30/2000
-----------------------------------------------------------------------------------------------------------------------------------
Growth & World Bond-
Income International Debenture Alpha
Investment Income Series Series Series Series
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income Dividends $ 1,669,922 $ 956,666 $ 2,612 $ 480,786
Interest 374,358 470,297 517,279 17,669
Foreign taxes withheld 5,246 (69,763) (653) -
Total income 2,049,526 1,357,200 519,238 498,455
-----------------------------------------------------------------------------------------------------------------------------------
Expenses Management fee 851,597 1,024,858 43,870 503,430
Management fee waived - - (43,870) (503,430)
12b-1 distribution plan-Class A 195,191 290,077 14,667 159,000
12b-1 distribution plan-Class B 59,529 152,507 8,747 325,446
12b-1 distribution plan-Class C 525,094 128,153 7,839 212,569
12b-1 distribution plan-Class P - 3 - -
Shareholder servicing 196,355 324,499 9,706 278,824
Reports to shareholders 26,817 50,631 1,455 32,370
Registration 25,753 37,339 21,500 36,000
Professional 24,089 32,113 13,600 21,504
Organization - 3,344 3,429 4,296
Trustees' fees 4,306 4,657 356 3,234
Other 13,016 244,378 9,166 1,800
Total expenses before reductions and reimbursements 1,921,747 2,292,559 90,465 1,075,043
-----------------------------------------------------------------------------------------------------------------------------------
Expenses assumed by Lord Abbett - - (14,316) -
Expenses assumed by Underlying Funds - - - (372,372)
Expense reductions (10,647) (6,780) (138) (5,656)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,911,100 2,285,779 76,011 697,015
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 138,426 (928,579) 443,227 (198,560)
-----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions
-----------------------------------------------------------------------------------------------------------------------------------
Capital gains received from Underlying Funds - - - 7,160,514
-----------------------------------------------------------------------------------------------------------------------------------
Net realized gain from investment and foreign currency transactions 11,874,695 4,379,166 34,637 63,091
-----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of investments
and foreign currency holdings (2,930,470) 31,634,506 (35,093) 17,939,726
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 8,944,225 36,013,672 (456) 25,163,331
-----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 9,082,651 $35,085,093 $442,771 $24,964,771
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Statements of Changes in Net Assets (unaudited)
<TABLE>
<CAPTION>
Six Months Ended 4/30/2000
-----------------------------------------------------------------------------------------------------------------------------------
Growth & World Bond-
Income International Debenture Alpha
Increase (Decrease) in Net Assets Series Series Series Series
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations Net investment income (loss) $ 138,426 $ (928,579) $ 443,227 $ (198,560)
Capital gains received from Underyling Funds - - - 7,160,514
Net realized gain from investment and foreign
currency transactions 11,874,695 4,379,166 34,637 63,091
Net change in unrealized appreciation/depreciation
of investments and foreign currency holdings (2,930,470) 31,634,506 (35,093) 17,939,726
Net increase in net assets resulting from operations 9,082,651 35,085,093 442,771 24,964,771
----------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income:
Class A - (478,220) (464,417) (1,048,831)
Class B - (10) (89,377) (421,547)
Class C - (8) (80,107) (277,906)
Class P - (5) - -
Class Y - (481,524) - -
Total - (959,767) (633,901) (1,748,284)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gain from
investment and foreign
currency transactions:
----------------------------------------------------------------------------------------------------------------------------------
Class A (5,343,797) (6,142,057) - (526,887)
Class B (517,525) (1,364,959) - (375,866)
Class C (5,448,619) (1,200,110) - (247,790)
Class P - (71) - -
Class Y - (3,805,984) - -
Total (11,309,941) (12,513,181) - (1,150,543)
----------------------------------------------------------------------------------------------------------------------------------
Total distributions (11,309,941) (13,472,948) (633,901) (2,898,827)
----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 43,049,557 81,210,950 1,259,226 42,503,510
Net asset value of shares issued in reinvestment
of dividends and distributions 10,644,282 13,199,970 444,794 2,781,337
Total 53,693,839 94,410,920 1,704,020 45,284,847
----------------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (22,835,323) (45,909,381) (1,743,661) (20,617,217)
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions 30,858,516 48,501,539 (39,641) 24,667,630
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 28,631,226 70,113,684 (230,771) 46,733,574
----------------------------------------------------------------------------------------------------------------------------------
Net Assets
Beginning of period 216,797,301 213,086,592 11,711,890 162,119,582
----------------------------------------------------------------------------------------------------------------------------------
End of period+ $245,428,527 $283,200,276 $11,481,119 $208,853,156
----------------------------------------------------------------------------------------------------------------------------------
+Including overdistributed net investment income of $(86,555), $(1,086,876), $(87,131) and $(1,946,844), respectively.
See Notes to Financial Statements.
</TABLE>
17
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended 10/31/1999
-----------------------------------------------------------------------------------------------------------------------------------
Growth & World Bond-
Income International Debenture Alpha
Increase (Decrease) in Net Assets Series Series Series Series
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations Net investment income (loss) $ (20,389) $ 941,718 $ 1,018,911 $ (756,619)
Capital gains received from Underlying Funds - - - 960,345
Net realized gain (loss) from investment and
foreign currency transactions 11,377,605 12,524,692 (372,840) 394,029
Net change in unrealized appreciation of investments
and foreign currency holdings 27,515,696 9,033,914 8,453 19,567,107
Net increase in net assets resulting from operations 38,872,912 22,500,324 654,524 20,164,862
-----------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income:
Class A (401,032) (567,116) (756,894) -
Class B (3,850) (20,005) (134,119) -
Class C (97,485) (17,514) (135,827) -
Class Y - (257,274) - -
Total (502,367) (861,909) (1,026,840) -
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized
gain from investment and foreign
currency transactions:
Class A (2,606,705) (150,119) (146,447) -
Class B (125,113) (30,008) (26,529) -
Class C (3,168,272) (26,271) (29,787) -
Class Y - (82,695) - -
Total (5,900,090) (289,093) (202,763) -
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (6,402,457) (1,151,002) (1,229,603) -
-----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sales of shares 44,193,808 145,270,193 4,346,397 75,343,568
Net asset value of shares issued in reinvestment of
dividends and distributions 5,996,380 1,166,493 854,916 -
Total 50,190,188 146,436,686 5,201,313 75,343,568
-----------------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (31,767,440) (107,731,921) (3,048,155) (39,667,616)
-----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets derived from
capital share transactions 18,422,748 38,704,765 2,153,158 35,675,952
-----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 50,893,203 60,054,087 1,578,079 55,840,814
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets
Beginning of year 165,904,098 153,032,505 10,133,811 106,278,768
-----------------------------------------------------------------------------------------------------------------------------------
End of year+ $216,797,301 $213,086,592 $11,711,890 $162,119,582
-----------------------------------------------------------------------------------------------------------------------------------
+Including undistributed (overdistributed) net investment income of $(224,981), $801,470, $103,543 and 0, respectively.
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
Financial Highlights
Growth & Income series
<TABLE>
<CAPTION>
Class A Shares Class B Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended 4/30, Year Ended 7/15/1996(a) Ended 4/30, Year Ended 6/5/1997(a)
Per Share 2000 10/31, to 2000 10/31, to
Operating Performance: (unaudited) 1999 1998 1997 10/31/1996 (unaudited) 1999 1998 10/31/1997
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.87 $9.15 $8.79 $7.09 $6.50 $10.85 $ 9.13 $8.80 $8.20
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) .02(e) .04(e) .057 .093 .028 (.01)(e) (.04)(e) -(d) -(d)
Net realized and unrealized
gain on investments .45 2.06 .928 1.781 .589 .44 2.10 .92 .60
Total from investment
operations .47 2.10 .985 1.874 .617 .43 2.06 .92 .60
------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income - (.05) (.035) (.099) (.027) - (.01) - -
Distributions from net
realized gain (.56) (.33) (.590) (.075) - (.56) (.33) (.590) -
Total distributions (.56) (.38) (.625) (.174) (.027) (.56) (.34) (.590) -
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.78 $10.87 $9.15 $8.79 $7.09 $10.72 $10.85 $9.13 $8.80
------------------------------------------------------------------------------------------------------------------------------------
Total Return(b) 4.19%(c) 23.77% 11.97% 26.78% 12.10%(c) 3.91%(c) 23.17% 11.17% 7.19%(c)
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses, including waiver .66%(c)(f) 1.30%(f) 1.22% 1.29% .39%(c) .98%(c)(f)1.98%(f) 1.98% .86%(c)
Expenses, excluding waiver .66%(c)(f) 1.30%(f) 1.22% 1.29% .39%(c) .98%(c)(f)1.98%(f) 1.98% .86%(c)
Net investment income (loss) .22%(c) .36% .88% 1.15% .40%(c) (.10)%(c) (.38)% .09% .01%(c)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Shares
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended 4/30,
2000 Year Ended 10/31,
Per Share Operating Performance: (unaudited) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.81 $ 9.11 $ 8.80 $ 7.09 $ 6.04 $ 5.07
----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) (.01)(e) (.03)(e) .011 .032 .0949 .12
Net realized and unrealized gain on investments .44 2.07 .889 1.790 1.0986 .97
Total from investment operations .43 2.04 .900 1.822 1.1935 1.09
----------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income - (.01) - (.037) (.1035) (.12)
Distributions from net realized gain (.56) (.33) (.590) (.075) (.04) -
Total distributions (.56) (.34) (.590) (.112) (.144) (.12)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.68 $10.81 $ 9.11 $ 8.80 $ 7.09 $ 6.04
----------------------------------------------------------------------------------------------------------------------------------
Total Return(b) 3.93%(c) 23.00% 10.94% 26.24% 20.02% 21.83%
----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses, including waiver .98%(c)(f) 1.98%(f) 1.98% 2.05% 1.55% 1.16%
Expenses, excluding waiver .98%(c)(f) 1.98%(f) 1.98% 2.05% 2.01% 1.91%
Net investment income (loss) (.09)%(c) (.31)% .12% .39% 1.36% 2.06%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended 4/30,
2000 Year Ended 10/31,
Supplemental Data for AllClasses: (unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000) $245,429 $216,797 $165,904 $ 142,992 $ 113,962 $ 32,770
Portfolio turnover rate 33.63% 37.68% 45.83% 36.37% 23.84% 23.17%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commencement of offering respective class shares.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) Amount less than $.01.
(e) Calculated using average shares outstanding during the period.
(f) The ratio includes expenses paid through an expense offset arrangement. See
Notes to Financial Statements.
19
<PAGE>
Financial Highlights
International series
<TABLE>
<CAPTION>
Class A Shares Class B Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended 4/30, Year Ended 12/13/1996(a) Ended 4/30, Year Ended 6/2/1997(b)
2000 10/31, to 2000 10/31, to
Per Share Operating Performance: (unaudited) 1999 1998 10/31/1997 (unaudited) 1999 1998 10/31/1997
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.90 $12.39 $10.86 $ 9.42 $13.75 $12.28 $10.83 $10.26
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations
Net investment income (loss) (.06)(e) .07(e) .11(e) .07 (.10)(e) (.02)(e) .02(e) (.03)
Net realized and unrealized gain
on investments and foreign
currency holdings 2.52 1.55 1.45 1.37 2.51 1.53 1.43 .60
Total from investment operations 2.46 1.62 1.56 1.44 2.41 1.51 1.45 .57
------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net investment income (.06) (.09) (.03) - - (.02) - -
Distributions from net realized gain (.82) (.02) - - (.82) (.02) - -
Total distributions (.88) (.11) (.03) - (.82) (.04) - -
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.48 $13.90 $12.39 $10.86 $15.34 $13.75 $12.28 $10.83
------------------------------------------------------------------------------------------------------------------------------------
Total Return(c) 18.65%(d) 13.16% 14.36% 15.21% (d) 18.37% (d)12.31% 13.39% 5.56%(d)
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses .83%(d)(f) 1.51%(f) 1.31% 1.23%(d) 1.11% (d)(f) 2.19%(f) 2.03% .87%(d)
Net investment income (loss) (.34)%(d) .52% .80% .41%(d) (.62)% (d)(.16)% .18% (0.46)%(d)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Shares Class P Shares Class Y Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months
Ended 4/30, Year Ended 6/2/1997(b) Ended 4/30, 3/9/1999(b) Ended 4/30, 12/30/1997(b)
Per Share 2000 10/31, to 2000 to 2000 Year Ended to
Operating Performance: (unaudited) 1999 1998 10/31/1997 (unaudited) 10/31/1999 (unaudited) 10/31/1999 10/31/1998
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $13.75 $12.28 $10.83 $10.26 $13.91 $12.70 $14.00 $12.41 $11.28
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations
Net investment income (loss)(.10)(e) (.02)(e) .02(e) (.03) (.06)(e) .08(e) (.02)(e) .12(e) .15(e)
Net realized and unrealized
gain on investments
and foreign
currency holdings 2.50 1.53 1.43 .60 2.53 1.13 2.53 1.56 .98
Total from investment
operations 2.40 1.51 1.45 .57 2.47 1.21 2.51 1.68 1.13
-----------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income - (.02) - - (.05) - (.10) (.07) -
Distributions from net
realized gain (.82) (.02) - - (.82) - (.82) (.02) -
Total distributions (.82) (.04) - - (.87) - (.92) (.09) -
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.33 $13.75 $12.28 $10.83 $15.51 $13.91 $15.59 $14.00 $12.41
-----------------------------------------------------------------------------------------------------------------------------------
Total Return(c) 18.29%(d) 12.31% 13.39% 5.56%(d) 18.68%(d) 9.53%(d) 18.92%(d) 13.65% 10.02%(d)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.11%(d)(f) 2.19%(f) 2.05% .87%(d) .84%(d)(f) .98%(d)(f) .62%(d)(f)1.20%(f) .84%(d)
Net investment income (loss)(.62)%(d) (.15)% .12% (0.46)%(d) (.35)%(d) .60%(d) (.13)%(d) .86% 1.11%(d)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended 4/30, Year Ended
2000 10/31, 12/13/1996(a)
Supplemental Data for All Classes: (unaudited) 1999 1998 to 10/31/1997
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net assets, end of period (000) $283,200 $213,087 $153,033 $37,334
Portfolio turnover rate 32.02% 75.15% 20.52% 29.72%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commencement of operations.
(b) Commencement of offering respective class shares.
(c) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(d) Not annualized.
(e) Calculated using average shares outstanding during the period.
(f) The ratio includes expenses paid through an expense offset arrangement.
See Notes to Financial Statements.
20
<PAGE>
Financial Highlights
World Bond-Debenture series
<TABLE>
<CAPTION>
Class A Shares Class B Shares Class C Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year Six Months Year
Ended 4/30, Ended 12/18/1997(a) Ended 4/30, Ended 12/19/1997(b) Ended 4/30, Ended 12/19/1997(b)
Per Share 2000 10/31, to 2000 10/31, to 2000 10/31, to
Operating Performance: (unaudited) 1999 10/31/1998 (unaudited) 1999 10/31/1998 (unaudited) 1999 10/31/1998
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $9.24 $9.66 $10.00 $9.24 $9.65 $10.00 $9.22 $9.65 $10.00
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations
Net investment income .36(e) .83(e) .511 .33(e) .76(e) .406 .33(e) .78(e) .395
Net realized and unrealized
gain (loss) on investments and
foreign currency holdings - (.22) (.425) - (.21) (.372) - (.25) (.361)
Total from
investment operations .36 .61 .086 .33 .55 .034 .33 .53 .034
-----------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (.51) (.85) (.426) (.48) (.78) (.384) (.48) (.78) (.384)
Distributions from
net realized gain - (.18) - - (.18) - - (.18) -
Total distributions (.51) (1.03) (.426) (.48) (.96) (.384) (.48) (.96) (.384)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.09 $9.24 $ 9.66 $9.09 $9.24 $ 9.65 $9.07 $9.22 $ 9.65
-----------------------------------------------------------------------------------------------------------------------------------
Total Return(c) 3.89%(d) 6.33% .75%(d) 3.49%(d) 5.73% .24%(d) 3.49%(d) 5.50% .24%(d)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses, including waiver .55%(d) .89% .55%(d) .87%(d) 1.56% 1.28%(d) .87%(d) 1.56% 1.28%(d)
Expenses, excluding waiver 1.04%(d) 1.84% 1.20%(d) 1.37%(d) 2.51% 1.93%(d) 1.37%(d) 2.51% 1.93%(d)
Net investment income 3.82%(d) 8.64% 7.08%(d) 3.50%(d) 7.91% 6.67%(d) 3.48%(d) 8.16% 6.62%(d)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended 4/30, Year Ended
2000 10/31, 12/18/1997(a)
Supplemental Data for All Classes: (unaudited) 1999 to 10/31/1998
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net assets, end of period (000) $11,481 $11,712 $10,134
Portfolio turnover rate 46.39% 74.80% 159.14%
-----------------------------------------------------------------------------------------
</TABLE>
(a) Commencement of operations.
(b) Commencement of offering respective class shares.
(c) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(d) Not annualized.
(e) Calculated using average shares outstanding during the period.
See Notes to Financial Statements.
21
<PAGE>
Financial Highlights
Alpha series
<TABLE>
<CAPTION>
Class A Shares Class B Shares Class C Shares
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year Six Months Year
Year Ended Ended 4/30, Ended 12/29/1997(a) Ended 4/30, Ended 12/29/1997(a) Ended 4/30, Ended 12/29/1997(a)
Per Share 2000 10/31, to 2000 10/31, to 2000 10/31, to
Operating Performance: (unaudited) 1999 10/31/1998 (unaudited) 1999 10/31/1998 (unaudited) 1999 10/31/1998
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $15.21 $12.91 $13.52 $15.05 $12.85 $13.52 $15.04 $12.86 $13.52
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations
Net investment
income (loss)(d) .01 .07 (.03) (.05) (.03) (.11) (.04) (.04) (.11)
Net realized and unrealized
gain (loss) on investments 2.49 2.23 (.58) 2.47 2.23 (.56) 2.46 2.22 (.55)
Total from investment
operations 2.50 2.30 (.61) 2.42 2.20 (.67) 2.42 2.18 (.66)
------------------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (.21) - - (.12) - - (.12) - -
Distributions
from net realized gain (.11) - - (.11) - - (.11) - -
Total distributions (.32) - - (.23) - - (.23) - -
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.39 $15.21 $12.91 $17.24 $15.05 $12.85 $17.23 $15.04 $12.86
------------------------------------------------------------------------------------------------------------------------------------
Total Return(b) 16.64%(c)17.82% (4.51)%(c) 16.20%(c)17.12% (4.96)%(c) 16.21%(c) 16.95% 4.88)%(c)
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses, including waiver
and reimbursements .17%(c) .33% .21%(c) .49%(c) 1.00% .83%(c) .49%(c) 1.00% .82%(c)
Expenses, excluding waiver
and reimbursements(e) .60%(c) 1.20% .85%(c) .92%(c) 1.87% 1.48%(c) .92%(c) 1.87% 1.46%(c)
Net investment income (loss) .08%(c) .15% (.18)%(c) (.26)%(c)(.83)% (.81)%(c) (.24)%(c) (.84)% (.82)%(c)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended 4/30, Year Ended 12/29/1997(a)
2000 10/31, to
Supplemental Data for AllClasses: (unaudited) 1999 10/31/1998
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net assets, end of period (000) $208,853 $162,120 $106,279
Portfolio turnover rate .27% 1.67% 0.01%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commencement of operations. (b) Total return does not consider the
effects of sales loads and assumes the reinvestment of all distributions.
(c) Not annualized. (d) Calculated using average shares outstanding during
the period. (e) Prior period ratios have been restated to reflect the
reimbursement of certain other expenses by the Underlying Funds. See Note 2
to the Financial Statements.
See Notes to Financial Statements.
Notes to Financial Statements (unaudited)
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
six separate portfolios ("Series")-This report covers the following four Series:
Lord Abbett Growth & Income Series ("Growth & Income Series"), Lord Abbett
International Series ("International Series"), Lord Abbett World Bond-Debenture
Series ("World Bond-Debenture Series") and Lord Abbett Alpha Series ("Alpha
Series"). The Alpha Series invests in other funds ("Underlying Funds") managed
by 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)
Security valuation is determined as follows: Portfolio securities listed or
admitted to trading privileges on any national or foreign 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-the-counter 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.
Investments in the Underlying Funds are valued at the closing net asset value
per share of each Underlying Fund on the day of valuation. 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 re corded in the Trust'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) The International and World Bond-Debenture Series
may use forward currency contracts to hedge the risk to the portfolios of
unfavorable movements in foreign exchange rates. A forward foreign currency
contract is a commitment to purchase or sell a foreign currency at a future date
(usually the security transaction settlement date) at a negotiated forward rate.
The contracts are valued daily at forward exchange rates or market values and
any unrealized gain or loss is included in net unrealized appreciation or depre-
22
<PAGE>
Notes to Financial Statements (unaudited)
ciation of investment and foreign currency holdings. The gain or loss, if any,
arising from the difference between the settlement value of the forward contract
and the closing of such contracts, is included as net realized gain or loss from
investment and foreign currency transactions. Risks may arise due to a change in
the value of the foreign currency and as a result of the potential inability of
the counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the Series' portfolio
of investments and the U.S. dollar. (d) Net realized gains and losses from
foreign currency transactions represent net gains and losses from sales and
maturities of forward currency contracts, disposition of foreign currencies,
currency gains and losses realized between the trade and settlement dates on
securities transactions, and the differences between the amount of net
investment income accrued and the U.S. dollar amount actually received. The
effect of changes in foreign currency exchange rates on investments in
securities is not segregated from the effect of changes in market prices of
those securities in the Statements of Operations. (e) It is the policy of the
Trust to meet the requirements of the Internal Revenue Code applicable to regu
lated investment companies and to distribute all of its taxable income.
Therefore, no federal income tax provision is required. (f) 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 distribu tion 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. (g) Organization ex penses 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 super vision of the Trust's investment
portfolios. The management fee is based on average daily net assets at the rate
of 0.75% per annum for International and World Bond-Debenture Series and 0.50%
per annum for the Alpha Series. The management fee for Growth & Income Series is
based on average daily net assets at the following annual rates: 0.75% on the
first $200 million; 0.65% on the next $300 million; and 0.50% on the excess over
$500 million. Lord Abbett waived its fee for the World Bond-Debenture and Alpha
Series for the period ended April 30, 2000. At April 30, 2000, management fee
payables were $136,084 forGrowth & Income Series and $170,800 for International
Series. Lord Abbett has entered into a sub-advisory agree ment 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 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, Class B Class C, and
Class P 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 asset value of Class A shares, (2) a one-time distribution fee of up to 1%
on certain qualifying purchases and (3) an annual distribution fee of 0.10% of
the average daily net asset value ofClass A shares. Pursuant to the Class B
Plan, each Series pays Distributor an annual service and distribution fee of
0.25% and 0.75%, respectively, of the average daily net asset value of the Class
B shares. Pursuant to the Class C Plan, each 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. Pursuant to the Class P Plan of International Series, the
Series pays Distributor an annual service and distribution fee of 0.20% and
0.25%, respectively, of the average daily net assets of the Class P shares.
Class Y does not have a Rule 12b-1 plan. At April 30, 2000, the 12b-1 fees
payable were $314,434 for Growth & Income Series, $185,531 for International
Series, $10,077 for World Bond-Debenture Series and $195,446 for Alpha Series.
TheAlpha Series has entered into a Servicing Arrangement with the Underlying
Funds pursuant to which each Underlying Fund will pay a portion of the expenses
(excluding management fee, distribution and service fees) of the Alpha Series in
proportion to the average daily value of shares owned by the Alpha Series. Other
expenses for International Series, one of the Underlying Funds, include
approximately $150,000 accrued pursuant to this Servicing Arrangement.
Distributor received the following commissions for the period ended
April 30, 2000 on sales of shares of the Trust after concessions were paid to
authorized distributors:
Distributor Dealers'
Series Commissions Concessions
--------------------------------------------------------------------------------
Growth & Income $84,973 $449,278
--------------------------------------------------------------------------------
International 86,531 474,999
--------------------------------------------------------------------------------
WorldBond-Debenture 2,231 11,100
--------------------------------------------------------------------------------
Alpha 76,700 443,417
--------------------------------------------------------------------------------
3. Distributions
Dividends from net investment income, if any, are declared and paid
semi-annually for the Growth &Income Series, annually for the International and
Alpha Series, and monthly for the World Bond-Debenture Series. Net realized
gains from investment transactions, if any, are dis tributed to share holders at
least annually. At April 30, 2000, the accumulated net realized gain (loss) for
financial reporting purposes, aggregated $11,859,857 for the Growth & Income
Series, $4,375,446 for the International Series, $(839,649) for the World
Bond-DebentureSeries and $6,978,288 for the Alpha Series.
At April 30, 2000, the World Bond-Debenture Series had a capital loss
carryforward of $874,286, of which $450,150 will expire in 2006 and $424,136 in
2007.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from methods used to determine the
corresponding income and capital gain amounts in accordance with generally
accepted accounting principles.
4. Capital
Transactions in shares of beneficial interest for the Growth & Income Series
were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
-------------------------------------------------------------------------------
Class A Shares Amount Shares Amount
-------------------------------------------------------------------------------
Sales of shares 2,571,547 $ 27,336,745 2,628,331 $ 27,027,631
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 455,276 4,957,960 301,078 2,760,885
Total 3,026,823 32,294,705 2,929,409 29,788,516
-------------------------------------------------------------------------------
Shares reacquired (1,011,562) (10,711,003) (1,497,971) (15,141,616)
Increase 2,015,261 $ 21,583,702 1,431,438 $ 14,646,900
-------------------------------------------------------------------------------
23
<PAGE>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class B Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 559,460 $ 5,947,871 646,865 $ 6,690,769
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 45,110 489,894 13,395 123,096
Total 604,570 6,437,765 660,260 6,813,865
--------------------------------------------------------------------------------
Shares reacquired (175,421) (1,841,533) (135,302) (1,390,159)
Increase 429,149 $ 4,596,232 524,958 $ 5,423,706
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class C Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 929,663 $ 9,764,941 1,020,638 $ 10,475,408
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 480,261 5,196,428 339,411 3,112,399
Total 1,409,924 14,961,369 1,360,049 13,587,807
--------------------------------------------------------------------------------
Shares reacquired (979,355)(10,282,787) (1,493,299) (15,235,665)
Increase (decrease) 430,569$ 4,678,582 (133,250) $ (1,647,858)
--------------------------------------------------------------------------------
Transactions in shares of beneficial interest for the International Series were
as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class A Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 3,464,764 $ 58,620,416 4,846,083 $ 66,870,262
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 475,436 6,451,673 56,456 717,663
Total 3,940,200 65,072,089 4,902,539 67,587,925
--------------------------------------------------------------------------------
Shares reacquired (2,473,419) (41,182,761) (3,845,434) (53,707,844)
Increase 1,466,781 $ 23,889,328 1,057,105 $ 13,880,081
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class B Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 536,307 $ 9,317,373 727,191 $ 9,645,998
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 97,062 1,307,432 3,886 51,717
Total 633,369 10,624,805 731,077 9,697,715
--------------------------------------------------------------------------------
Shares reacquired (146,922) (2,339,886) (360,473) (4,824,986)
Increase 486,447 $ 8,284,919 370,604 $ 4,872,729
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class C Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 285,595 $ 4,802,577 3,886,561 $ 52,956,781
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 85,648 1,153,674 3,396 45,553
Total 371,243 5,956,251 3,889,957 53,002,334
--------------------------------------------------------------------------------
Shares reacquired (137,063) (2,194,674) (3,541,853) (48,775,206)
Increase 234,180 $ 3,761,577 348,104 $ 4,227,128
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class P Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares - $ - 86 $1,127
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 5 73 - -
Total 5 73 86 1,127
--------------------------------------------------------------------------------
Shares reacquired - - - -
--------------------------------------------------------------------------------
Increase 5 $73 86 $1,127
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class Y Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 474,649 $ 8,470,584 1,185,525 $15,796,025
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 314,305 4,287,118 27,395 351,560
Total 788,954 12,757,702 1,212,920 16,147,585
--------------------------------------------------------------------------------
Shares reacquired (13,838) (192,060) (29,754) (423,885)
Increase 775,116 $12,565,642 1,183,166 $15,723,700
--------------------------------------------------------------------------------
Transactions in shares of beneficial interest for the World Bond-Debenture
Series were as follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class A Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 72,752 $ 682,920 288,744 $2,819,452
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 35,074 328,805 66,196 637,644
Total 107,826 1,011,725 354,940 3,457,096
--------------------------------------------------------------------------------
Shares reacquired (134,895) (1,266,571) (206,397) (1,984,856)
Increase (decrease) (27,069) $ (254,846) 148,543 $1,472,240
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class B Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 24,051 $ 225,804 104,575 $1,012,874
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 5,295 49,684 9,010 86,541
Total 29,346 275,488 113,585 1,099,415
--------------------------------------------------------------------------------
Shares reacquired (27,830) (262,056) (37,348) (358,336)
Increase 1,516 $ 13,432 76,237 $ 741,079
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class C Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 37,596 $350,502 52,904 $ 514,071
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 7,079 66,305 13,577 130,731
Total 44,675 416,807 66,481 644,802
--------------------------------------------------------------------------------
Shares reacquired (22,761) (215,034) (73,535) (704,963)
Increase (decrease) 21,914 $201,773 (7,054) $ (60,161)
--------------------------------------------------------------------------------
24
<PAGE>
Transactions in shares of beneficial interest for the Alpha Series were as
follows:
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class A Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 1,091,398 $20,017,072 2,317,161 $ 33,875,154
--------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 96,126 1,523,600 - -
Total 1,187,524 21,540,672 2,317,161 33,875,154
--------------------------------------------------------------------------------
Shares reacquired (572,028) (9,981,807) (1,216,119) (18,000,823)
Increase 615,496 $11,558,865 1,101,042 $ 15,874,331
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class B Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 721,827 $12,994,939 1,436,209 $ 20,914,895
--------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 48,582 765,646 - -
Total 770,409 13,760,585 1,436,209 20,914,895
--------------------------------------------------------------------------------
Shares reacquired (290,435) (5,166,029) (776,830) (11,344,308)
Increase 479,974 $ 8,594,556 659,379 $ 9,570,587
--------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Class C Shares Amount Shares Amount
--------------------------------------------------------------------------------
Sales of shares 534,345 $ 9,491,499 1,409,046 $20,553,519
--------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
dividends and
distributions 31,244 492,091 - -
Total 565,589 9,983,590 1,409,046 20,553,519
--------------------------------------------------------------------------------
Shares reacquired (312,041) (5,469,381) (698,835) (10,322,485)
Increase 253,548 $ 4,514,209 710,211 $10,231,034
--------------------------------------------------------------------------------
As of April 30, 2000, paid in capital for each Series was as follows:
Series
--------------------------------------------------------------------------------
Growth & Income $159,495,243
--------------------------------------------------------------------------------
International $248,023,516
--------------------------------------------------------------------------------
WorldBond-Debenture $ 13,010,637
--------------------------------------------------------------------------------
Alpha $183,801,348
5. Purchases and Sales of Securities
Purchases and sales of investment securities (other than U.S. Government
obligations, short-term investments and foreign currency transactions) were as
follows:
Series Purchases Sales
--------------------------------------------------------------------------------
Growth & Income $ 91,196,379 $74,048,323
--------------------------------------------------------------------------------
International $105,459,178 $83,105,597
--------------------------------------------------------------------------------
WorldBond-Debenture $ 5,324,658 $ 5,710,162
--------------------------------------------------------------------------------
Alpha $ 27,623,438 $ 539,000
--------------------------------------------------------------------------------
As of April 30, 2000, net unrealized appreciation (depreciation), gross
unrealized appreciation and gross unrealized depreciation of investments based
on cost for federal income tax purposes were as follows:
Net Unrealized
Appreciation Unrealized Unrealized
Series (Depreciation) Appreciation(Depreciation)
--------------------------------------------------------------------------------
Growth & Income $74,159,982 $77,707,174 $ (3,547,192)
--------------------------------------------------------------------------------
International $31,888,190 $70,408,815 $(30,520,625)
--------------------------------------------------------------------------------
World Bond-Debenture $ (619,565) $ 357,246 $ (976,811)
--------------------------------------------------------------------------------
Alpha $20,020,364 $20,020,364 $ -
--------------------------------------------------------------------------------
The cost of investments for federal income tax purposes is the same as that used
for financial reporting purposes.
At April 30, 2000, the World Bond-Debenture Series had the following outstanding
forward foreign currency contracts:
Foreign Value at Unrealized
Currency Settlement Date Current Appreciation
Contracts Type Local Currency U.S. Dollars Value (Depreciation)
--------------------------------------------------------------------------------
British
Pounds,
expiring
9/18/2000 Sell (83,818)$ (131,707)$ (130,464) $ 1,243
--------------------------------------------------------------------------------
Euro,
expiring
12/11/2000 Sell (500,000) (486,250) (461,585) 24,665
--------------------------------------------------------------------------------
Hong Kong
Dollars,
expiring
9/14/2000 Sell (7,864,100) (1,000,000) (1,009,081) (9,081)
--------------------------------------------------------------------------------
Total $(1,617,957) $(1,601,130) $16,827
--------------------------------------------------------------------------------
6. Trustees` Remuneration
The Trustees of the Trust associated with Lord Abbett and all officers of the
Trust receive no com pensation 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. Trustees' fees payable at April
30, 2000, under a deferred compensation plan, were $162,899.
7. Expense Reduction
The Trust has entered into an arrangement with its transfer agent whereby
credits realized as a result of uninvested cash balances were used to reduce a
portion of the Trust's expenses.
8. Line of Credit
The Growth & Income and International Series, respectively with certain other
funds managed by Lord Abbett, have available a $200,000,000 unsecured revolving
credit facility ("Facility"), from a consortium of banks, to be used for
temporary or emergency purposes as an additional source of liquidity to fund
redemptions of investor shares. Any borrowings under this Facility will bear
interest at current market rates as defined in the agreement. The fee for this
Facility was at an annual rate of 0.06% during the year ended October 31, 1999.
Effective December 17, 1999, this fee was increased to 0.09% per annum. There
were no loans outstanding pursuant to this Facility at April 30, 2000, nor was
the Facility utilized at any time during the period.
Copyright(C)2000 by Lord Abbett Securities Trust , 90 Hudson Street,Jersey City,
NJ 07302-3973
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
Series' 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 .
25
<PAGE>
Investing in the
Lord Abbett
Family of Funds
<TABLE>
<CAPTION>
GROWTH
---------------------------------------------------------------------------------------------------------------------------
INCOME
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggressive Growth Funds Growth & Balanced Fund Income Funds Tax-Free Money
Growth Fund Income Funds Income Funds Market Fund
Growth Large-Cap Research Fund - Balanced World Bond- National U. S. Government
Opportunities Growth Fund Large-Cap Series** Debenture Series California Securities Money
Fund Research Fund- Series Global Fund - Connecticut Market Fund +++
Small-Cap Value Growth & Income Series Florida
Series Income Series High Yield Fund Georgia
Alpha Series* Affiliated Fund Bond-Debenture Hawaii
Developing International Fund Michigan
Growth Fund Series Limited Duration Minnesota
Lord Abbett Mid-Cap U. S. Government Missouri
Developing Value Fund Securities Series+ New Jersey
Growth Fund Global Fund- U. S. Government) New York
is closed to Equity Series Securities Series+ Pennsylvania
new investors Texas
Washington
</TABLE>
Finding the right mutual fund can be confusing. At Lord, Abbett & Co., we
believe your investment professional provides value in helping you identify and
under stand your investment objectives and, ultimately, offering fund recom
mendations 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 the fund(s) covered by this
report.
For more complete information about any Lord Abbett fund, in cluding risks,
charges and ongoing expenses, call your investment professional or Lord Abbett
Distributor LLC at 800-874-3733 for a prospectus. Read it carefully before
investing.
The Lord Abbett Family of Funds lets you access more than 30 portfolios designed
to meet a variety of investment needs.
Diversification. You and your investment professional can diversify your
investments between equity and income funds.
Flexibility. As your investment goals change, your investment professional
can help you reallocate your portfolio.
You may reallocate assets among our funds at any time. Speak with your
investment professional to help you customize your investment plan.
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:
www.lordabbett.com
** Lord Abbett Securities Trust - Alpha Series is a fund of funds investing in
shares of Lord Abbett Developing Growth Fund, Lord Abbett Research Fund -
Small-Cap Value Series and Lord Abbett Securities Trust - International
Series.
** Lord Abbett Balanced Series is a fund of funds investing in shares of
certain other Lord Abbett funds.
+ An investment in this Fund is neither insured nor guaranteed by the U.S.
Government.
++ An investment in this Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund. This Fund is managed to
maintain and has maintained its stable $1.00 price per share.
[LOGO]
Lord Abbett mutual fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC
90 Hudson Street o Jersey City, New Jersey 07302-3973
LST-3-400
(6/00)
