SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 1, 1998 FOR
THE LORD ABBETT INVESTMENT TRUST
<PAGE>
SUPPLEMENT EFFECTIVE DATE: JUNE 15, 1998
Lord Abbett Investment Trust -- Balanced Series FUND FACTS
Why Consider This Fund? As a convenient way to invest for potentially attractive
monthly dividends. The U.S. stock and bond markets, the world's largest, are the
frequent home of outstanding investment opportunities. You can harness their
total return potential by participating in Lord Abbett's Balanced Series, a
"fund of funds" that seeks to provide shareholders with current income and
capital growth. Over time, Lord Abbett will actively manage Balanced Series'
asset allocation between the two performance-proven Lord Abbett mutual funds
described below. Past performance does not guarantee future results.
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For Exposure to U.S. Equities: Lord Abbett Affiliated Fund
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Lord Abbett Affiliated Fund is designed to provide long-term growth of capital
and income without excessive fluctuations in market value. The Fund invests
primarily in the undervalued stocks of the 500 largest, publicly traded U.S. and
multinational companies.
[PHOTO OMITTED]
- --W. Thomas Hudson, Jr.
Portfolio Manager
"We are meeting the challenge of an anticipated U.S. slowdown by building strong
positions in food, electric utility and telephone stocks. Once that slowdown is
upon us, we believe value will be found in the market's cyclically sensitive
sectors. These would include basic industry, capital goods and technology
stocks."
Affiliated's Performance The Fund has consistently performed well compared to
the Lipper Growth & Income Funds Average.
[The following table was depicted as a bar chart in the printed material.]
5 Years 10 Years 15 Years 20 Years
------- -------- -------- --------
The Fund* 19.6% 16.3% 16.0% 16.7%
Lipper Growth & Income
Funds Average 19.1% 16.2% 15.1% 16.0%
Average Annual Total Returns For Periods Ending 3/31/98*
This performance data does not reflect the performance of Lord Abbett Investment
Trust Balanced Series. * Reflects the percent change in net asset value of Class
A shares and includes the reinvestment of all distributions.
Affiliated SEC Annual Average Total Returns:
- ---------- ---------- ---------- ---------------
26.80% 18.91% 15.62% 12.81%
- ---------- ---------- ---------- ---------------
1 Year 5 Years 10 Years Since Inception
(1/1/50)
SEC Returns reflects performance at the maximum 5.75% sales charge applicable to
Class A share investments.
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Top Holdings (3/31/98) %TNA Top Sectors (3/31/98) %TNA
- ----------------------------------- -----------------------------------
Deere & Co. 2.8% Finance 22.9%
Chubb Corp. 2.4% Consumer Noncyclicals 20.3%
Emerson Electric Co. 2.3% Utilities 11.9%
Heinz H.J. Co. 2.3% Technology 10.8%
Morgan Stanley/Dean Witter 2.0% Consumer Cyclicals 10.0%
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For Exposure to U.S. Bonds: Lord Abbett Bond-Debenture Fund
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Lord Abbett Bond-Debenture Fund is designed to provide high current income and
capital growth to produce a high total return. The Fund's investment flexibility
allows it to invest in high-yield securities, convertibles, preferred stocks,
U.S. government bonds, foreign bonds and even municipal bonds.
[PHOTO OMITTED]
- --Christopher J. Towle
Portfolio Manager
"U.S. bonds should continue to benefit from low inflation levels and moderating
economic growth. The Fund emphasizes high-yield corporate bonds, which should
perform well amid strong earnings results, low interest rates and heightened
merger-and-acquisition activity. Our bottom-up investment approach focuses on
companies that pair high credit quality with above-average financial results."
Bond-Debenture's Performance The Fund has consistently performed well compared
to the Lipper Fixed-Income Funds Average.
[The following table was depicted as a bar chart in the printed material.]
5 Years 10 Years 15 Years 20 Years
------- -------- -------- --------
The Fund* 10.1% 11.0% 10.7% 11.0%
Lipper Growth & Income
Funds Average 5.4% 6.8% 7.3% 8.5%
Average Annual Total Returns For Periods Ending 3/31/98*
This performance data does not reflect the performance of Lord Abbett Investment
Trust Balanced Series. * Reflects the percent change in net asset value of Class
A shares and includes the reinvestment of all distributions.
Bond-Debenture SEC Annual Average Total Returns:
- ---------- ---------- ---------- ---------------
11.10% 9.01% 10.49% 10.22%
- ---------- ---------- ---------- ---------------
1 Year 5 Years 10 Years Since Inception
(4/1/71)
SEC Returns reflects performance at the maximum 4.75% sales charge applicable to
Class A share investments.
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Top Holdings (3/31/98) %TNA Top Sectors (3/31/98) %TNA
- ------------------------------------------- ---------------------------------
FNMA 7% MTG 3.1% Lower Rated & Straight 70.0%
FNMA 6.5% MTG 1.5% Convertible Debentures 11.6%
Sinclair Broadcasting Group 10% 9/05 1.2% Investment Grade Straight 10.4%
U.S. Treasury Bonds 6.125% 11/27 1.1% Preferred & Common Stock 4.9%
Rogers Cantel, Inc. 8.3% 10/07 1.0% Cash & Net Other Assets 3.3%
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Lord Abbett's Balanced Series features an initial investment allocation of 55%
Affiliated Fund/45% Bond-Debenture Fund. The accompanying chart shows why we
believe this allocation is best in risk/reward terms.
FUND FUND ALLOCATION ANNUALIZED STANDARD AVERAGE ANNUAL
ALLOCATION BOND-DEBENTURE DEVIATION(RISK) TOTAL RETURN*
AFFILILATED FUND
0% 100% 11.27% 10.97%
10% 90% 11.16% 11.59%
20% 80% 11.15% 12.21%
30% 70% 11.24% 12.81%
40% 60% 11.42% 13.40%
50% 50% 11.70% 13.99%
55% 45% 11.87% 14.27%
60% 40% 12.06% 14.56%
70% 30% 12.50% 15.12%
80% 20% 13.01% 15.67%
90% 10% 13.58% 16.22%
100% 0% 14.21% 16.75%
Consider making this
"fund of funds"
your U.S. core stock
and bond investment
* Reflects the percent change in net asset value of Class A Shares of
Affiliated Fund and Bond-Debenture Fund over 20 years ending 3/31/98 and
includes reinvestment of all distributions.
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How Balanced Series
Has Performed Over Time
Growth $10,000: 12/27/94 - 3/31/98*
- --------------------------------------
- --------------------------------------
The Series changed its investment
strategy and began to pursue its
investment objectives as a "fund of
funds" on April 1, 1998.
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12/27/94 10,000
3/95 10,589
3/96 12,476
3/97 13,534
3/98 16,567
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This performance data reflects the performance of Lord Abbett Investment Trust -
Balanced Series
* Reflects the percent change in net asset value of Class A shares and
includes the reinvestment of all distributions.
Balanced Series' Performance The Fund has provided attractive annual average
total returns since its inception on 12/27/94:
[The following table was depicted as a bar chart in the printed material.]
------------------------
1 Years 3 Years Since Inception The Series changed its
- ------- ------- --------------- investment strategy and
(12/27/94) began to pursue its
investment objectives as
22.4% 16.1% 16.7% a "fund of funds" on
April 1, 1998.
------------------------
Average Annual Total Returns For Periods Ending 3/31/98**
** This performance data reflects the percent change in net asset value of Class
A shares and includes the reinvestment of all distributions.
Balanced Fund SEC Annual Average Total Returns:
- ----------- ----------- ---------------
16.60% 14.24% 15.00%
- ----------- ----------- ---------------
1 Years 3 Years Since Inception
(12/27/94)
SEC Returns reflects performance at the maximum 4.75% sales charge applicable to
Class A share investments.
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Lord Abbett In an age of consolidation within financial services, Lord, Abbett &
Co., founded in 1929, continues its tradition of excellence as an independent
partnership. Money management, built on in-depth proprietary research, is the
Firm's only business. Assets under management currently total over $27 billion,
consisting of a family of mutual funds and separately managed equity,
fixed-income and balanced accounts for corporations, institutions and
individuals.
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- ------------------------------------- For more complete information about
SYMBOL CUSIP any Lord Abbett mutual fund, such as
- ------------------------------------- Lord Abbett Investment Trust -
Balanced Series, including charges and
Class A LABFX 543916209 expenses, call your investment
Class B LABBX 543916886 professional or Lord Abbett
Class C BFLAX 543916600 Distributor llc at 800-874-3733 for a
- ------------------------------------- prospectus. An investor should read
the prospectus carefully before
o Investment Minimum: $1,000; investing. If used after, 6/30/98,
$250 for IRAs this piece must be accompanied by Lord
o Dividends - Monthly Abbett's Performance Quarterly for the
o Capital Gains - Annually most recently completed calendar
quarter.
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[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
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NUMBERS TO KEEP HANDY
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For Shareholder Account or Statement Inquiries: 800-821-5129
For Literature: 800-874-3733
24-Hour Automated Service Line: 800-865-7582
Visit Our Web Site: http://www.lordabbett.com
LAIT-12-BA-398
(6/98)
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