Lord Abbett Investment Trust
Core Fixed Income Series Strategic Core Fixed Income Series Class Y
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED MAY 31, 1999
[LOGO]
<PAGE>
A Note About Year 2000 Matters
As you may know, there has been extensive media coverage about possible problems
that may arise as a result of uncertainties about the ability of computers to
"understand" dates using the year 2000. Potentially, these problems could
disrupt the services and systems that the Fund relies on in its daily
operations.
As a general matter, we believe the financial industry has taken a leadership
role addressing year 2000 (Y2K) issues and this should help to inspire
confidence among concerned investors. More specifically, Lord Abbett, Lord
Abbett Distributor LLC and the Fund's transfer agent, custodian and other
providers of services critical to the Fund have been actively working on
reviewing and replacing or updating computer systems and computer-to-computer
interfaces, as needed. Each has completed or is in the process of testing new or
revised systems and interfaces and generally expects that their systems, as well
as those of their key external service providers, will be ready to handle Y2K
without significant problems. Furthermore, the Fund has been routinely taking
each company's Y2K preparations into account when considering or reviewing
investments.
In summary, while the Y2K problem is unprecedented and we cannot completely
eliminate the possibility that the Fund could be affected in some way, we are
confident that all parties involved are taking appropriate steps to resolve Y2K
concerns.
Statement of Net Assets
Investment Trust - Core Fixed Income Series May 31, 1999
<TABLE>
<CAPTION>
Principal
Investments Amount Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments in Securities 118.54%
- ------------------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Obligations 23.00%
- ------------------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Bond 8 3/4% due 5/15/2017 $ 25,000 $ 32,086
----------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Note 6 1/4% due 4/30/2001 1,067,000 1,082,671
----------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Note 6 5/8% due 5/15/2007 246,000 258,569
----------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Note Inflation Indexed 3 5/8% due 7/15/2002 57,000 58,683
----------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Strip due 8/15/2020 1,351,000 368,569
----------------------------------------------------------------------------------------------------------------------------
Total 1,800,578
====================================================================================================================================
U. S. Government Agency Debentures 11.92%
Federal Home Loan Mortgage Corp. 5 1/2% due 5/15/2002 530,000 525,031
----------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association 5 5/8% due 5/14/2004 160,000 157,225
----------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association 5 1/4% due 1/15/2009 270,000 250,847
----------------------------------------------------------------------------------------------------------------------------
Total 933,103
====================================================================================================================================
Federal Home Loan Mortgage Corp. Pass-Through Securities 11.63%
6.5% due 6/16/2029 * 804,000 786,537
----------------------------------------------------------------------------------------------------------------------------
7% due 6/16/2029 * 124,000 124,252
----------------------------------------------------------------------------------------------------------------------------
Total 910,789
====================================================================================================================================
Federal National Mortgage Association Residential and Multi-Family Securities 23.18%
73712 7.235% due 10/1/2003 44,024 45,262
----------------------------------------------------------------------------------------------------------------------------
73565 7.31% due 7/1/2003 82,938 85,426
----------------------------------------------------------------------------------------------------------------------------
73576 7.285% due 7/1/2003 136,587 140,578
----------------------------------------------------------------------------------------------------------------------------
73919 6.8% due 1/1/2004 29,353 29,729
----------------------------------------------------------------------------------------------------------------------------
375470 6.67% due 1/1/2004 29,575 29,824
----------------------------------------------------------------------------------------------------------------------------
375064 6.935% due 4/1/2004 29,443 29,990
----------------------------------------------------------------------------------------------------------------------------
375440 6.86% due 10/1/2004 29,587 30,077
----------------------------------------------------------------------------------------------------------------------------
375537 6.58% due 11/1/2004 39,395 39,567
----------------------------------------------------------------------------------------------------------------------------
313497 7.041% due 12/1/2006 184,053 188,787
----------------------------------------------------------------------------------------------------------------------------
313672 7.024% due 6/1/2007 112,927 115,902
----------------------------------------------------------------------------------------------------------------------------
313709 6.907% due 6/1/2007 147,507 150,421
----------------------------------------------------------------------------------------------------------------------------
313744 6.812% Due 10/1/2007 152,252 154,286
----------------------------------------------------------------------------------------------------------------------------
375456 6 3/4% due 10/1/2007 112,283 113,383
----------------------------------------------------------------------------------------------------------------------------
6.5% due 6/21/2014 * 584,000 581,448
----------------------------------------------------------------------------------------------------------------------------
443388 6% due 10/1/2028 28,346 26,959
----------------------------------------------------------------------------------------------------------------------------
444588 6% due 10/1/2028 10,913 10,379
----------------------------------------------------------------------------------------------------------------------------
454285 6% due 2/1/2029 45,544 43,317
----------------------------------------------------------------------------------------------------------------------------
Total 1,815,335
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal
Investments Amount Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage Association Pass-Through Securities 11.46%
780410 7 1/2% due 8/15/2026 $ 93,902 $ 96,088
----------------------------------------------------------------------------------------------------------------------------
425423 7 1/2% due 5/15/2026 166,662 170,542
----------------------------------------------------------------------------------------------------------------------------
442347 8% due 4/15/2028 66,340 68,963
----------------------------------------------------------------------------------------------------------------------------
469628 7% due 10/15/2028 43,081 43,115
----------------------------------------------------------------------------------------------------------------------------
494253 7% due 12/15/2028 298,733 300,320
----------------------------------------------------------------------------------------------------------------------------
8% due 6/23/2029* 210,000 218,204
----------------------------------------------------------------------------------------------------------------------------
Total 897,232
====================================================================================================================================
Collateralized Mortgage Obligations 2.35%
Federal Home Loan Mortgage Corp. 1616A 5 1/8% due 9/15/2006 63,890 63,530
----------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association 1993-129 D 6.1% due 6/25/2005 28,532 28,506
----------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association 1998-24 QA 6% due 2/18/2009 46,324 46,338
----------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association G94-1 F 5.39% due 1/25/2024 46,915 45,478
----------------------------------------------------------------------------------------------------------------------------
Total 183,852
====================================================================================================================================
Asset-Backed and Commercial Mortgage-Backed Securities 32.00%
Arcadia Auto Receivables Trust 1997-B A3 6.3% due 7/16/2001 50,627 50,691
----------------------------------------------------------------------------------------------------------------------------
Countrywide Funding Corp 1994-5 A4 6 1/2% due 3/25/2009 28,107 28,134
----------------------------------------------------------------------------------------------------------------------------
Capita Equipment Receivables Trust 1996-1 A4 6.28% due 6/15/2000 46,431 46,533
----------------------------------------------------------------------------------------------------------------------------
Chase Mortgage Finance Corp. 1993-G A1 7% due 4/25/2001 125,217 126,351
----------------------------------------------------------------------------------------------------------------------------
COMM 1991-1 A2 6.455% due 9/15/2008 70,000 68,644
----------------------------------------------------------------------------------------------------------------------------
Contimortgage Home Equity 1997-3 A4 6.82% due 5/15/2012 123,848 123,770
----------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston 1997-C2 A2 6.52% due 7/17/2007 105,000 103,720
----------------------------------------------------------------------------------------------------------------------------
INDYMAC Manufactured Housing Contract 1998-1 A2 6.39% due 9/25/2028 50,095 50,165
----------------------------------------------------------------------------------------------------------------------------
DLJ Mortgage Acceptance Corp. 92-12-A2 6 1/2% due 4/25/2024 84 84
----------------------------------------------------------------------------------------------------------------------------
DLJ Commercial Mortgage Corp. 1998-CF1 A1B 6.41% due 2/15/2008 50,000 48,930
----------------------------------------------------------------------------------------------------------------------------
Equicon Home Equity Loan Trust 1993-1A 5.85% due 11/18/2012 26,805 26,763
----------------------------------------------------------------------------------------------------------------------------
First Union-Lehman Brothers 1998-C2 A2 6.56% due 11/18/2008 75,000 74,297
----------------------------------------------------------------------------------------------------------------------------
First Union-Lehman Brothers Commercial 1997-C2 A3 6.65% due 12/18/2007 120,000 119,025
----------------------------------------------------------------------------------------------------------------------------
Ford Credit Auto Owner Trust 1998-A A2 5.6% due 7/15/2000 49,726 49,741
----------------------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Service Inc. 1993-10 A1 5.85% due 9/25/2023 116,404 116,040
----------------------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Service Inc. 1995-10B1 7% due 10/25/2010 81,290 80,985
----------------------------------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities Inc 1997-C2 A3 6.566% due 11/15/2007 35,000 34,442
----------------------------------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities Inc 1998-C2 A2 6.42% due 8/15/2008 100,000 98,094
----------------------------------------------------------------------------------------------------------------------------
Green Tree Financial 1995-8 A3 6.35% due 12/15/2026 23,717 23,739
----------------------------------------------------------------------------------------------------------------------------
Green Tree Financial 1995-F A4 6.15% due 1/15/2021 18,604 18,625
----------------------------------------------------------------------------------------------------------------------------
Harley-Davidson Eaglemark Motorcycle Trust AB 5.81% due 5/15/2002 120,084 120,122
----------------------------------------------------------------------------------------------------------------------------
Honda Auto Receivables Grant 1997-A A 5.85% due 2/15/2003 60,103 60,216
----------------------------------------------------------------------------------------------------------------------------
IMC Home Equity Loan Trust 1997-5 A4 6.53% due 6/20/2013 56,080 56,045
----------------------------------------------------------------------------------------------------------------------------
IMC Home Equity Loan Trust 1998-3 A2 6.27% due 11/20/2013 23,228 23,206
----------------------------------------------------------------------------------------------------------------------------
LB Commercial Conduit Mortgage Trust 1998-C4 A1B 6.21% due 10/15/2008 160,000 154,250
----------------------------------------------------------------------------------------------------------------------------
Olympic Automobile Receivable Trust 1995-A A 7 7/8% due 7/15/2001 55,006 55,066
----------------------------------------------------------------------------------------------------------------------------
Olympic Automobile Receivable Trust 1995-C A2 6.2% due 1/15/2002 18,793 18,828
----------------------------------------------------------------------------------------------------------------------------
PNC Mortgage Securities Corp. 1997-2 A6 7 1/2% due 3/25/2027 50,000 50,375
----------------------------------------------------------------------------------------------------------------------------
Premier Auto Trust 1996-4 A3 6.2% due 11/6/2000 54,323 54,391
----------------------------------------------------------------------------------------------------------------------------
Premier Auto Trust 1998-2 A2 5.77% due 1/6/2002 75,000 75,187
----------------------------------------------------------------------------------------------------------------------------
Prudential Home Mortgage Securities 1994-15 A2 6% due 5/25/2024 5,373 5,363
----------------------------------------------------------------------------------------------------------------------------
Prudential Securities Secured Financing Corp. 1998-C1 A1B 6.506% due 7/15/2008 80,000 78,750
----------------------------------------------------------------------------------------------------------------------------
Sears Credit Account 1996-1 A AB 6.2% due 2/16/2006 100,000 100,281
----------------------------------------------------------------------------------------------------------------------------
The Money Store Home Equity 1993-C A1 5.175% due 7/15/2006 36,082 35,992
----------------------------------------------------------------------------------------------------------------------------
The Money Store Home Equity 1994-C A4 7.8% due 10/15/2021 78,513 79,126
----------------------------------------------------------------------------------------------------------------------------
Toyota Auto Receivable Grantor Trust 1997-A A 6.45% due 4/15/2002 14,912 14,991
----------------------------------------------------------------------------------------------------------------------------
Union Acceptance Corp. 1995-C A 6.4% due 10/10/2002 76,212 76,164
----------------------------------------------------------------------------------------------------------------------------
Western Financial Owner Trust 1996-A A4 6.15% due 6/1/2001 59,441 59,599
----------------------------------------------------------------------------------------------------------------------------
Western Financial Owner Trust 1996-D A3 6.05% due 7/20/2001 69,871 69,959
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal
Investments Amount Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
World Omni Auto Lease 1996-A A2 6.55% due 6/25/2002 $ 28,539 $ 28,557
-----------------------------------------------------------------------------------------------------------------
Total 2,505,241
====================================================================================================================================
Corporate Bonds 2.09%
Bank One Corp. 8% due 4/29/2027 75,000 81,270
-----------------------------------------------------------------------------------------------------------------
Dayton Hudson 6 3/4% due 1/1/2028 45,000 42,912
-----------------------------------------------------------------------------------------------------------------
Harrah's Operating Co., Inc. 7 1/2% due 1/15/2009 40,000 39,500
-----------------------------------------------------------------------------------------------------------------
Total 163,682
====================================================================================================================================
Foreign Bonds .91%
Republic of Chile 6.78% due 4/28/2009 40,000 37,887
-----------------------------------------------------------------------------------------------------------------
Republic Of Korea 8 7/8% due 4/15/2008 32,000 33,667
-----------------------------------------------------------------------------------------------------------------
Total 71,554
-----------------------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost 9,442,473) 9,281,366
====================================================================================================================================
Other Assets, Less Liabilities (18.54%)
Short-Term Investments
American General Finance 4.9% due 6/1/1999 340,000 340,000
-----------------------------------------------------------------------------------------------------------------
Dow Chemical Co. 4.9% due 6/1/1999 110,000 110,000
-----------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $ 450,000) 450,000
====================================================================================================================================
Cash 5,955
====================================================================================================================================
Receivable for:
Securities Sold 1,133,153
-----------------------------------------------------------------------------------------------------------------
Interest 16,115
-----------------------------------------------------------------------------------------------------------------
Total Other Assets 1,605,223
-----------------------------------------------------------------------------------------------------------------
Payable for:
Securities Purchased 3,052,016
-----------------------------------------------------------------------------------------------------------------
Other 4,670
-----------------------------------------------------------------------------------------------------------------
Total Liabilities 3,056,686
-----------------------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (1,451,463)
====================================================================================================================================
Net Assets 100.00% (equivalent to $10.39 a share on 753,283 shares of beneficial interest) $ 7,829,903
====================================================================================================================================
</TABLE>
*TBA
See Notes to Financial Statements
<PAGE>
Statement of Net Assets
Investment Trust - Strategic Core Fixed Income Series May 31, 1999
<TABLE>
<CAPTION>
Principal
Investments Amount Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments in Securities 122.50%
- ------------------------------------------------------------------------------------------------------------------------------------
U. S. Treasury Obligations 21.31%
U. S. Treasury Note Inflation Indexed 3 5/8% due 7/15/2002 $ 15,000 $ 15,443
------------------------------------------------------------------------------------------------------------------
U. S. Treasury Note 6 1/4% due 4/30/2001 229,000 232,363
------------------------------------------------------------------------------------------------------------------
U. S. Treasury Note 6 5/8% due 5/15/2007 71,000 74,628
------------------------------------------------------------------------------------------------------------------
U. S. Treasury Strip due 2/15/2004 3,000 2,300
------------------------------------------------------------------------------------------------------------------
U. S. Treasury Strip due 8/15/2020 428,000 116,764
------------------------------------------------------------------------------------------------------------------
Total 441,498
====================================================================================================================================
U. S. Government Agency Debentures 8.43%
Federal National Mortgage Association 5 5/8% due 5/14/2004 138,000 135,607
------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association 5 1/4% due 1/15/2009 42,000 39,021
------------------------------------------------------------------------------------------------------------------
Total 174,628
====================================================================================================================================
Collateralized Mortgage Obligations 7.14%
Federal Home Loan Mortgage Corp. 1616 A 5 1/8% due 9/15/2006 35,307 35,109
------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 43 PD 6 1/2% due 4/17/2010 26,138 26,105
------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 1591 PE 5 1/2% due 11/15/2016 24,930 24,883
------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Corp. 1993-129 D 6.1% due 6/25/2005 31,126 31,097
------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association 1994-7 PD 6 1/2% due 4/16/2011 30,861 30,794
------------------------------------------------------------------------------------------------------------------
Total 147,988
====================================================================================================================================
Federal Home Loan Mortgage Corp. Pass-Through Securities 12.52%
6.5% due 6/16/2029* 254,000 248,483
-----------------------------------------------------------------------------------------------------------------
7% due 6/16/2029* 11,000 11,022
-----------------------------------------------------------------------------------------------------------------
Total 259,505
====================================================================================================================================
Federal National Mortgage Association Residential and Multi-Family Securities 20.78%
73697 7.28% due 10/1/2003 28,974 29,807
----------------------------------------------------------------------------------------------------------------
73565 7.31% due 7/1/2003 53,665 55,275
----------------------------------------------------------------------------------------------------------------
73576 7.285% due 7/1/2003 29,269 30,124
----------------------------------------------------------------------------------------------------------------
73637 7.245% due 9/1/2003 28,912 29,739
----------------------------------------------------------------------------------------------------------------
73442 7.075% due 5/1/2006 21,172 21,833
----------------------------------------------------------------------------------------------------------------
73443 6.87% due 4/1/2006 29,130 29,601
----------------------------------------------------------------------------------------------------------------
313543 6.981% due 6/1/2007 83,195 85,103
----------------------------------------------------------------------------------------------------------------
375319 6 3/4% due 8/1/2007 19,671 19,868
----------------------------------------------------------------------------------------------------------------
380396 6.31% due 6/1/2008 30,000 29,466
----------------------------------------------------------------------------------------------------------------
381462 6.045% due 4/1/2009 20,982 20,353
----------------------------------------------------------------------------------------------------------------
454285 6% due 2/1/2029 44,830 42,637
----------------------------------------------------------------------------------------------------------------
6.5% due 6/21/2014* 37,000 36,838
----------------------------------------------------------------------------------------------------------------
Total 430,644
====================================================================================================================================
Government National Mortgage Association Pass-Through Securities 16.04%
7% due 6/23/2029 147,000 147,024
----------------------------------------------------------------------------------------------------------------
7.5% due 6/23/2029 100,000 102,250
----------------------------------------------------------------------------------------------------------------
8% due 6/23/2029 80,000 83,125
----------------------------------------------------------------------------------------------------------------
Total 332,399
====================================================================================================================================
Asset-Backed and Commercial Mortgage-Backed Securities 30.84%
Case Equipment Loan Trust 1996-A A2 5 1/2% due 5/15/2003 31,629 31,674
------------------------------------------------------------------------------------------------------------------
Chevy Chase Auto Receivable Trust 1996-2 A 5.9% due 7/15/2003 18,408 18,431
------------------------------------------------------------------------------------------------------------------
COMM 1999-1 A2 6.455% due 9/15/2008 20,000 19,613
------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston 1997-C2 A2 6.52% due 7/17/2007 30,000 29,634
------------------------------------------------------------------------------------------------------------------
DLJCM 1998-CF1 A1B 6.41% due 2/15/2008 10,000 9,786
------------------------------------------------------------------------------------------------------------------
Equicon Home Equity Loan Trust 1993-1A 5.85% due 11/18/2012 18,764 18,734
------------------------------------------------------------------------------------------------------------------
FULBA 1998-C2 A2 6.56% due 11/18/2008 25,000 24,766
------------------------------------------------------------------------------------------------------------------
<PAGE>
Principal
Investments Amount Value
FULB 1997-C2 A3 6.65% due 12/18/2007 $ 30,000 $ 29,756
-----------------------------------------------------------------------------------------------------------------
Ford Credit Auto Owner Trust 1998-A A2 5.6% due 7/15/2000 11,839 11,843
-----------------------------------------------------------------------------------------------------------------
GECMS 1993-10 A1 5.85% due 9/25/2023 16,005 15,955
-----------------------------------------------------------------------------------------------------------------
GECMS 1997-3 A11 7 1/2% due 4/25/2027 35,000 35,438
-----------------------------------------------------------------------------------------------------------------
Green Tree Financial 1996-1 A2 5.85% due 3/15/2027 34,476 34,552
-----------------------------------------------------------------------------------------------------------------
Harley-Davidson Eaglemark Motor Trust 1998-1 5.81% due 05/15/2002 32,023 32,033
-----------------------------------------------------------------------------------------------------------------
Honda Auto Receivables Grant 1997-A A 5.85% due 2/15/2003 32,488 32,549
-----------------------------------------------------------------------------------------------------------------
LBCMT 1998-C4 A1B 6.21% due 10/15/2008 40,000 38,563
-----------------------------------------------------------------------------------------------------------------
Nationsbank Auto Grantor Trust 1995-A A 5.85% due 6/15/2002 44,061 44,240
-----------------------------------------------------------------------------------------------------------------
Navistar Financial Corp. 1996-A A2 6.35% due 11/15/2002 29,643 29,870
-----------------------------------------------------------------------------------------------------------------
Oakwood Mortgage Investors Inc. 1995-A A2 6 1/2% due 9/15/2020 26,524 26,673
-----------------------------------------------------------------------------------------------------------------
Premier Auto Trust 1996-4 A3 6.2% due 11/6/2000 39,982 40,032
-----------------------------------------------------------------------------------------------------------------
Premier Auto Trust 1998-2 A2 5.77% due 1/6/2002 40,000 40,100
-----------------------------------------------------------------------------------------------------------------
Prudential Secured Financing 1998-C1 A1B 6.506% due 7/15/2008 25,000 24,609
-----------------------------------------------------------------------------------------------------------------
Sears Credit Account 1996-1 A AB 6.2% due 2/16/2006 25,000 25,070
-----------------------------------------------------------------------------------------------------------------
Western Financial Grant Trust 1995-2 A1 7.1% due 7/1/2000 5,156 5,167
-----------------------------------------------------------------------------------------------------------------
Western Financial Owner Trust 1996-D A3 6.05% due 7/20/2001 19,963 19,988
-----------------------------------------------------------------------------------------------------------------
Total 639,076
====================================================================================================================================
Corporate Bonds 4.48%
Aurora Foods 9 7/8% due 2/15/2007 10,000 10,525
-----------------------------------------------------------------------------------------------------------------
Century Communications 8 3/8% due 12/15/2007 10,000 10,250
-----------------------------------------------------------------------------------------------------------------
Chancellor Media Corp 10 1/2% due 1/15/2007 10,000 10,937
-----------------------------------------------------------------------------------------------------------------
Chattem Inc. 8 7/8% due 4/1/2008 10,000 10,000
-----------------------------------------------------------------------------------------------------------------
Flores & Rucks 9 3/4% due 10/1/2006 10,000 10,500
-----------------------------------------------------------------------------------------------------------------
Harrahs Operating Co., Inc. 7 1/2% due 1/15/2009 10,000 9,875
-----------------------------------------------------------------------------------------------------------------
McLeodUSA Inc. 8 1/8% due 2/15/2009** 10,000 9,350
-----------------------------------------------------------------------------------------------------------------
Pierce Leahy Corp. 11 1/8% due 7/15/2006 10,000 11,050
-----------------------------------------------------------------------------------------------------------------
Sinclair Broadcasting Group, Inc. 10% due 9/30/2005 10,000 10,300
-----------------------------------------------------------------------------------------------------------------
Total 92,787
====================================================================================================================================
Foreign Bonds 0.96%
Republic of Chile 6 7/8% due 4/28/2009 10,000 9,472
-----------------------------------------------------------------------------------------------------------------
Republic Of Korea 8 7/8% due 4/15/2008 10,000 10,521
-----------------------------------------------------------------------------------------------------------------
Total 19,993
-----------------------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $2,580,616) 2,538,518
====================================================================================================================================
Other Assets, Less Liabilities (22.5%)
Short-Term Investments
FNMA Discount Note
-----------------------------------------------------------------------------------------------------------------
4.72% due 6/1/1999 (Cost $ 230,000) 230,000 230,000
====================================================================================================================================
Cash 5,275
====================================================================================================================================
Receivable for:
Securities Sold 332,031
-----------------------------------------------------------------------------------------------------------------
Interest 10,551
-----------------------------------------------------------------------------------------------------------------
Other 318
-----------------------------------------------------------------------------------------------------------------
Total Other Assets 578,175
====================================================================================================================================
Payable for:
Securities Purchased 1,044,502
-----------------------------------------------------------------------------------------------------------------
Total Liabilities 1,044,502
-----------------------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (466,327)
====================================================================================================================================
Net Assets 100.00% (equivalent to $9.99 a share on 207,508 shares of beneficial interest) $ 2,072,191
====================================================================================================================================
</TABLE>
* TBA
** Rule 144 security
See Notes to Financial Statements
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
12/14/98
(Commencement
Six Months Ended of Operations)
May 31, 1999 to 5/31/99
Core Fixed Strategic Core
Investment Income Income Series Fixed Income Series
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Income Interest $ 210,251 $ $56,129
- ------------------------------------------------------------------------------------------------------
Expenses Management fee 18,922 5,194
Management fee waived (18,922) (5,194)
------------------------------------------------------------------------------------
Shareholder servicing 800 100
------------------------------------------------------------------------------------
Professional 5,000 3,000
------------------------------------------------------------------------------------
Other 1,000 500
------------------------------------------------------------------------------------
Expenses assumed by Lord Abbett (6,800) (3,600)
------------------------------------------------------------------------------------
Net expenses - -
------------------------------------------------------------------------------------
Net investment income 210,251 56,129
------------------------------------------------------------------------------------
Realized and Unrealized Loss on Investments
======================================================================================================
Net realized loss from investment transactions (23,634) (16,969)
======================================================================================================
Net change in unrealized depreciation of investments (226,459) (42,098)
======================================================================================================
Net realized and unrealized loss on investments (250,093) (59,067)
======================================================================================================
Net decrease in Net Assets Resulting from Operations $ (39,842) $ (2,938)
======================================================================================================
</TABLE>
See Notes to Financial Statements.
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
12/10/97 12/14/98
(Commencement (Commencement
Six Months Ended of Operations) of Operations)
May 31, 1999 to 11/30/98 to 5/31/99
Core Fixed Core Fixed Strategic Core
Increase (Decrease) in Net Assets Income Series Income Series Fixed Income Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations Net investment income $ 210,251 $ 264,058 $ 56,129
--------------------------------------------------------------------------------------------------------------------
Net realized loss from investment transactions (23,634) 79,846 (16,969)
--------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation
of investments (226,459) 65,352 (42,098)
--------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (39,842) 409,256 (2,938)
====================================================================================================================================
Dividends and distributions to shareholders from:
Net investment income (277,388) - -
--------------------------------------------------------------------------------------------------------------------
Net realized gain from investment transactions (81,187) - -
--------------------------------------------------------------------------------------------------------------------
Total (358,575) - -
====================================================================================================================================
Capital share transactions:
Net proceeds from sales of 302,772, 427,854
and 207,508 shares, respectively 3,299,607 4,284,885 2,075,129
--------------------------------------------------------------------------------------------------------------------
Net asset value of 34,511, 0 and 0 shares issued in
reinvestment of dividends and distributions, respectively 358,572 - -
--------------------------------------------------------------------------------------------------------------------
Total 3,658,179 4,284,885 2,075,129
====================================================================================================================
Cost of 11,854, 0 and 0 shares reacquired, respectively (124,000) - -
Increase in net assets derived from capital share transactions 3,534,179 4,284,885 2,075,129
====================================================================================================================================
Increase in net assets 3,135,762 4,694,141 2,072,191
====================================================================================================================================
Net Assets
Beginning of period 4,694,141 - -
--------------------------------------------------------------------------------------------------------------------
End of period+ $ 7,829,903 $ 4,694,141 $ 2,072,191
====================================================================================================================================
+ Including undistributed net investment income of $196,921 and $56,129 for
Core Fixed Income Series and Strategic Core Fixed Income Series,
respectively, as of May 31, 1999 and $264,058 for the Core Fixed Income
Series as of November 30, 1998.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Financial Highlights
Investment Trust - Core Fixed Income Series
<TABLE>
<CAPTION>
Class Y Shares
------------------------------------
Six Months Ended 12/10/97*
Per Share Operating Performance May 31, 1999 to 11/30/98
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.97 $ 10.00
Income from investment operations
-----------------------------------------------------------------------------------------------
Net investment income 0.29 0.62
-----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.34) 0.35
-----------------------------------------------------------------------------------------------
Total from investment operations (0.05) 0.97
-----------------------------------------------------------------------------------------------
Distributions from:
-----------------------------------------------------------------------------------------------
Net investment income (0.41) -
-----------------------------------------------------------------------------------------------
Net realized gain on investments (0.12) -
-----------------------------------------------------------------------------------------------
Total distributions (0.53) -
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.39 $ 10.97
- -----------------------------------------------------------------------------------------------------------------
Total Return(a)(b) -0.46% 9.70%
- -----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets(b):
Expenses including waiver 0.00% 0.00%
-----------------------------------------------------------------------------------------------
Expenses excluding waiver 0.34% 0.75%
-----------------------------------------------------------------------------------------------
Net investment income 2.77% 5.98%
=================================================================================================================
Supplemental Data:
Net assets, end of period (000) $ 7,830 $ 4,694
-----------------------------------------------------------------------------------------------
Portfolio turnover rate 181.85% 411.03%
=================================================================================================================
</TABLE>
* Commencement of operations.
(a) Total return assumes the reinvestment of all distributions.
(b) Not annualized.
See Notes to Financial Statements.
Financial Highlights
Investment Trust - Strategic Core Fixed Income Series
<TABLE>
<CAPTION>
Class Y Shares
--------------
12/14/98*
Per Share Operating Performance to 5/31/99
- ------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.00
Income from investment operations
------------------------------------------------------------------------
Net investment income 0.27
------------------------------------------------------------------------
Net realized and unrealized loss on investments (0.28)
------------------------------------------------------------------------
Total from investment operations (0.01)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.99
- ------------------------------------------------------------------------------------------
Total Return(a)(b) -0.10%
- ------------------------------------------------------------------------------------------
Ratios to Average Net Assets(b):
Expenses including waiver 0.00%
------------------------------------------------------------------------
Expenses excluding waiver 0.42%
------------------------------------------------------------------------
Net investment income 2.69%
Supplemental Data:
- ------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 2,072
------------------------------------------------------------------------
Portfolio turnover rate 188.64%
- ------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
(a) Total return assumes the reinvestment of all distributions.
(b) Not annualized.
See Notes to Financial Statements.
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies
Lord Abbett Investment Trust (the "Trust") is an open-end management investment
company organized as a Delaware business trust on August 16, 1993. The Trust
consists of six separate portfolios. This report covers two of the portfolios ("
Series") - Core Fixed Income Series (formerly Core Series) and Strategic Core
Fixed Income Series. 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 require management to make
certain estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the Series:
(a) Securities are valued as follows: Portfolio securities listed or admitted to
trading privileges on any securities exchange are valued at the last sales price
on the exchange on which such securities are traded as of the close of business
on the day the securities are being valued, or, lacking any sales, at the latest
price on the basis of current quotations from dealers (as in the case of bonds),
from valuations furnished by an independent pricing service or, in their
absence, fair value as determined under procedures approved by the Board of
Trustees. Securities traded only in the over-the-counter market are valued at
the mean between the bid and asked prices, except that securities admitted to
trading on the NASDAQ National Market System are valued at the last sales price
if it is determined that such price more accurately reflects the value of such
securities. Short-term securities maturing in 60 days or less are valued at
amortized cost which approximates market value.
(b) It is the policy of the Trust to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its taxable income. Therefore, no federal income tax provision is required.
(c) Security transactions are accounted for on the date that the securities are
purchased or sold (trade date). Realized gains and losses from investment
transactions are determined on the identified cost basis. Distributions to
shareholders are recorded on the ex-dividend date. Interest income is accrued on
a daily basis.
2. Management Fee and Other Transactions with Affiliates
The Trust has a management agreement with Lord, Abbett & Co. (" Lord Abbett")
pursuant to which Lord Abbett provides 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, statistical work and the supervision of the
Trust's investment portfolios. The management fee is based on average daily net
assets of each Series for each month at the annual rate of .50 of 1%. Lord
Abbett waived its management fee for the six months ended May 31, 1999. A
portion of the outstanding capital shares of Core Fixed Income Series and all of
the outstanding capital shares of Strategic Core Fixed Income Series are held by
Lord Abbett and partners and employees of Lord Abbett.
3. Distributions
Distributions from net investment income and net realized gain from investment
transactions are declared annually. At May 31, 1999, the accumulated
undistributed net realized loss for financial reporting purposes aggregated
$24,975 and $16,969 for Core Fixed Income Series and Strategic Core Fixed Income
Series, respectively. Income and capital gains distributions are determined in
accordance with income tax regulations which may differ from methods used to
determine the corresponding income and capital gain amounts in accordance with
generally accepted accounting principles.
4. Capital
At May 31, 1999, paid in capital aggregated $7,819,064 and $2,075,129 for Core
Fixed Income Series and Strategic Core Fixed Income Series, respectively.
5. Purchases and Sales of Securities
Purchases and sales of investment securities (other than short-term investments)
were as follows:
Series Purchases Sales
- --------------------------------------------------------------------------------
Core Fixed Income Series $20,663,045 $16,911,270
- --------------------------------------------------------------------------------
Strategic Core Fixed
Income Series 7,689,203 4,995,505
- --------------------------------------------------------------------------------
As of May 31, 1999, net unrealized depreciation, unrealized appreciation and
unrealized depreciation for federal income tax purposes were as follows:
Net Unrealized Unrealized Unrealized
Series Depreciation Appreciation Depreciation
- --------------------------------------------------------------------------------
Core Fixed
Income Series $ 161,107 $ 4,248 $ 165,355
- --------------------------------------------------------------------------------
Strategic Core
Fixed Income Series 42,098 2,052 44,150
The cost of investments for federal income tax purposes is substantially the
same as that used for financial reporting purposes.
Copyright (C) 1999 by Lord Abbett Investment Trust - Core Fixed Income Series
and Strategic Core Fixed Income Series
767 Fifth Avenue, New York, NY 10153-0203
This publication, when not used for the general information of shareholders of
Lord Abbett Investment Trust - Core Fixed Income Series and Strategic Core Fixed
Income Series, is to be distributed only if preceded or accompanied by a current
prospectus which includes information concerning the 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.
