SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION FOR THE APRIL 1, 1998 LORD
ABBETT INVESTMENT TRUST - BALANCED SERIES
SUPPLEMENT EFFECTIVE DATE: JUNE 8, 1998
FUND
FACTS
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Lord Abbett
Investment Trust
Balanced Series
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A mutual fund seeking current income and capital growth
[LOGO](R)
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Lord Abbett Investment Trust - Balanced Series
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INVESTMENT OBJECTIVE: Lord Abbett Investment Trust - Balanced Series is designed
to provide current income and capital growth by investing in undervalued areas
of the equity and fixed-income markets.
How the Series Compares Against Inflation (1):
Growth of $10,000: 12/27/94 - 12/31/97 (2)
LORD ABBETT INVESTMENT INFLATION
TRUST-BALANCED SERIES CONSUMER PRICE INDEX
12/27/94 9510 10000
12/31/95 11676 10314
12/31/96 12732 10595
12/31/97 14935 10775
The Balanced Series' Average Annual Rate of Total Return Since Inception: 14.24%
(1) Total return is the percent change in value, assuming the reinvestment of
all distributions. The maximum sales charge of 4.75%, applicable to Class
A share investments under $100,000, has been deducted from the Series
investment. The Series issues an additional class of shares with a
distinct pricing arrangement. For a full discussion of the differences in
pricing alternatives, please call 800-874-3733 and ask for the Series'
current prospectus. Please refer to information under the caption
"Important Note" for a brief discussion of changes in the Series'
investment approach, which also is described in the Series' current
prospectus.
(2) The Series commenced operations 12/27/94.
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SEC RETURNS:
Average annual rates of total return at the Class A share maximum sales charge
of 4.75% for periods ending 12/31/97:
1 year Life of Series
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+11.80% +14.25%
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SEC yield for the 30 days ended 12/31/97 was 2.42%.
Past performance is not an indication of future results. The investment return
and principal value of an investment in the Series will fluctuate so that
shares, on any given day or when redeemed, may be worth more or less than their
original cost.
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The Fund's Investor Advantage
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o The opportunity for high current income and capital appreciation while
assuming less risk than the U.S. stock market;
o The comfort of owning bargain-priced stocks of the largest,
publicly-traded U.S. companies and U.S. Government securities, which have
the top investment grade and carry the least credit risk (among
fixed-income securities);
o The benefit of active portfolio management; and
o The dependability of monthly dividends that can be taken in cash or
reinvested in additional shares at net asset value.
The Fund's Investment Process
Lord Abbett Investment Trust -- Balanced Series uses a unique, disciplined
investment process. Asset allocation balances the portfolio on a risk/return
basis. Investment strategy meetings are held to project the total return
potential of both the equity and fixed-income markets, which determines our
overall asset allocation. Purchase of individual securities is based on both our
own valuation models for individual securities and our analysis of trends for
corporate earnings, inflation and interest rates. Our current asset allocation
is detailed in the pie chart on the far right. While the Series may invest as
much as 75% of its total net assets in equities, its current allocation reflects
our view for expected returns.
Our Investment Process Includes:
o Quantitative analysis to identify companies whose stocks represent the
best bargains;
o Personal contact with each company's management to try to determine if
there is a catalyst for positive change;
o Searching for out-of-favor securities that will benefit from our outlook
for inflation, interest rates and Federal Reserve policy -- the
fixed-income portion of the portfolio is managed by adjusting
interest-rate sensitivity; and
o Fundamental research to assess the probable effects of economic changes
and interest-rate fluctuations on individual companies and U.S. Government
securities.
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The Fund's Managers
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"Our disciplined investment process and our commitment to fundamental research
help us find the best investment opportunities -- regardless of the asset
class."
E. Wayne Nordberg
The Series' equity portion is managed by Lord Abbett Partner, E. Wayne Nordberg.
Mr. Nordberg has been with the Firm since 1988. The Series' fixed-income portion
is managed by Lord Abbett's Zane E. Brown. Mr. Brown has been with the Firm
since 1992.
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(left to right)
Zane E. Brown
Partner in Charge of Fixed Income and
Portfolio Manager
E. Wayne Nordberg
Partner and Portfolio Manager
The Advantage of Balanced Investing
Historically, stocks and bonds do not perform equally in the same year, as the
chart below illustrates. Therefore, a portfolio that combines the two asset
classes will generally provide a less volatile investment. These results do not
reflect the returns of the Series.
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This chart reflects total return and is for illustrative purposes only. The S&P
500 is an unmanaged index consisting of the stocks of 500 companies widely
followed by the investment community. The Lehman Gov't./Corp. Bond Index is an
unmanaged index consisting of U.S. Treasuries, investment-grade corporate bonds
and mortgage-backed and asset-backed securities. An investor cannot invest
directly in an index. Past performance is not an indication of future results.
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Portfolio Profile
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When you invest in the Series, you become an owner of more than 60 securities
that the Series' managers believe are among the most promising. The Series'
portfolio is managed continually and its holdings are subject to change.
Investments in common stocks are subject to market fluctuations, providing the
potential for gain and the risk of loss; investments in fixed-income securities
are affected by fluctuations in interest rates (which affect market prices).
Below is a snapshot of the portfolio as of 12/31/97:
The Series' Asset Allocation
[The following table was depicted as a pie chart in the printed material.]
Common Stocks ............................... 49.5%
U.S. Treasury Bonds and Notes ............... 29.1%
Federal National Mortgage Association ....... 17.4%
Cash & Other Short-term Assets .............. 4.0%
Annual Returns: Stocks & Bonds
Minimum Initial Investment:
$1,000; $250 for IRAs
Quotron Symbols:
A Shares - LABFX
C Shares - BFLAX
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Important Note: Shareholders recently approved a change to the Balanced Series'
investment policy. Upon receipt of regulatory approval, the Series will
gradually shift to a "fund of funds" structure, with equity assets allocated to
the Lord Abbett Affiliated Fund and the fixed-income portion of the portfolio to
the Lord Abbett Bond-Debenture Fund. Please see the Series' current prospectus
for more information.
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The Fund's Investment Manager
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Lord, Abbett & Co.
o Experienced Management
Founded in 1929, Lord, Abbett & Co. was one of the nation's first
mutual fund managers. Lord Abbett manages over $25 billion in a
family of mutual funds and separately-managed accounts.
o A Complete Family
The Lord Abbett Family of Funds consists of 28 mutual funds.
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For more complete information about any Lord Abbett mutual fund, such as Lord
Abbett Investment Trust - Balanced Series, including charges and expenses, call
your investment professional or Lord Abbett Distributor llc at 800-874-3733 for
a prospectus. An investor should read the prospectus carefully before investing.
If used after 3/31/98, this piece must be accompanied by Lord Abbett's
Performance Quarterly for the most recently completed calendar quarter.
Numbers to Keep Handy
For Shareholder Account
or Statement Inquiries: 800-821-5129
For Literature: 800-874-3733
For More Information: 800-426-1130
Visit Our Web Site: http://www.lordabbett.com
[LOGO](R) LORD ABBETT & CO.
Investment Management
A Tradition of Performance Through Disciplined Investing
LORD ABBETT DISTRIBUTOR LLC
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The GM Building o 767 Fifth Avenue o New York, NY 10153-0203 o 800-426-1130
LAIT-12-BA-1297
