Lord Abbett Alpha Strategy Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 5.65%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Russell 2000^® Index¹, which returned 4.90% over the same period.

Domestic equity returns were positive over the past year, with large cap stocks, as represented by the S&P 500^® Index,² rising 14.33% during the period, while small cap stocks, as represented by the Russell 2000^® Index,¹ were up 4.90%. Following a tumultuous fourth quarter of 2018, where trade tensions and monetary policy uncertainty sent many investors toward safety, the market staged a strong recovery. After the worst December since 1931, the S&P 500 posted its best January performance since 1987. Trade tensions continued to dominate headlines, as trade negotiations between the U.S. and China remained volatile throughout the period. Since the beginning of 2019, both the U.S. and China have imposed tariffs of roughly $550 billion and $185 billion on each country’s products, respectively. One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given the uncertain market outlook and the muted inflation pressure, the Fed announced its decision to

cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. The combination of a dovish Fed, trade pressures, and slowing economic growth resulted in falling rates across the U.S. Treasury yield curve and further increased the partial curve inversion. In fact, in July, the yield on the 10-year U.S. Treasury fell to its lowest level since 2016. Bond yields continued to fall and, in August, the spread between the U.S. 10 year Treasury and the 2 year Treasury temporarily inverted. In September, a large rotation from growth into value took place; however, market participants were uncertain about the longevity of the rotation. Geopolitics also contributed to market volatility. Following a coordinated drone strike on Saudi Arabia, Brent crude oil prices increased 20% in one trading session. Despite the record increase in price, oil prices retracted their gains within weeks.

The Fund’s allocation to domestic small and micro cap growth equities contributed to relative performance, as these investment strategies outperformed the Russell 2000^® Index. Despite a shift in leadership from growth to value that began in September, growth stocks still outperformed value stocks throughout the

period. The Fund’s allocation to international small cap equities also contributed to relative performance, as this asset class outperformed the Russell 2000^® Index.

The Fund’s allocation to domestic small and mid (“smid”) and micro cap value equities detracted from relative performance, as each of these investment strategies underperformed the Russell 2000^® Index. Within the domestic smid cap value equity allocation, security selection in the information technology and consumer staples sectors detracted from performance relative to the Russell 2000^® Index.

 

Lord Abbett Focused Growth Fund

 

From the Fund’s inception on January 31, 2019 to October 31, 2019, the Fund returned 5.87%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Russell 1000^® Growth Index,³ which returned 16.32% over the same period.

Domestic equity returns were positive over the past year, with large cap stocks, as represented by the S&P 500^® Index,² rising 14.33% during the period, while small cap stocks, as represented by the Russell 2000^® Index,¹ were up 4.90%. Following a tumultuous fourth quarter of 2018, where trade tensions and monetary policy uncertainty sent many investors toward safety, the market staged a strong recovery. After the worst December since 1931, the

S&P 500 posted its best January performance since 1987. Trade tensions continued to dominate headlines, as trade negotiations between the U.S. and China remained volatile throughout the period. Since the beginning of 2019, both the U.S. and China have imposed tariffs of roughly $550 billion and $185 billion on each country’s products, respectively. One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given the uncertain market outlook and the muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. The Fed followed that decision with two more 25 basis point rate cuts in September and October. The combination of a dovish Fed, trade pressures, and slowing economic growth resulted in falling rates across the U.S. Treasury yield curve. In fact, in July, the yield on the 10-year U.S. Treasury fell to its lowest level since 2016 as bond yields continued to fall and, in August, the spread between the U.S. 10-year Treasury and the 2-year Treasury temporarily inverted. In September, a large rotation from growth into value took place; however, market participants were uncertain about the longevity of the rotation.

Security selection and positioning within the health care sector detracted from relative performance during the

period. Shares of Align Technology, Inc., a manufacturer of medical devices, specifically the Invisalign^® dental product, also detracted from the Fund’s performance. Align reported a second quarter Invisalign^® case shipments miss, which management attributed to a slowdown in consumer spending in China and competitive pressures in North America. The Fund’s holdings of Dexcom, Inc., a medical device manufacturer specializing in glucose monitoring systems, also detracted from relative performance. Dexcom’s management gave underwhelming 2019 revenue guidance and the company experienced competitive pressures from Abbott Diabetes Care, Inc.’s lower priced product, Libre, causing shares to decline.

Security selection and positioning within the communication services sector detracted from the Fund’s relative performance during the period. Shares of Twitter, Inc., a social media platform, also detracted from relative performance. Despite better-than-expected user growth, Twitter failed to meet revenue estimates as the company experienced issues with its Mobile Application Promotion, which is a suite of products that enables advertisers to promote mobile applications, sending its share price spiraling downwards.

The Fund’s holdings of Generac Holdings, Inc., a manufacturer of power generation equipment, contributed to relative performance. Shares of Generac rose as spending on infrastructure for 5G

has begun in earnest, new regulation took hold in California due to wildfires and power outages, and replacement demand increased given the system’s 15-20 year life-span. Furthermore, demand for residential stand-by generators increased alongside commercial demand. The Fund’s holdings of RingCentral, Inc., a provider of enterprise cloud communications solutions, also contributed to relative performance. Shares of RingCentral steadily rose as strong execution and its partnership with Avaya Holdings Corp. continued to position RingCentral as a leading Unified Communications as a Service solutions provider.

The Fund’s underweight to the energy sector also contributed to relative performance during the period as global trade uncertainty and concerns of slowing global growth weighed on oil prices.

 

Lord Abbett Focused Small Cap Value Fund

 

Effective July 1, 2019, the Lord Abbett Micro Cap Value Fund changed its name to Lord Abbett Focused Small Cap Value Fund, and changed its investment strategy. Therefore, the performance of the Fund for periods prior to July 1, 2019 is not representative of the Fund’s current investment strategy. In addition, the benchmark index performance information shown is based on the new benchmark which is the most appropriate benchmark for the new strategy.

For the fiscal year ended October 31, 2019, the Fund returned 1.68%, reflecting

performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Russell 2000^® Value Index,⁴ which returned 3.22% over the same period. The Russell Microcap^® Value Index⁵ returned -0.91% over the one year period.

Domestic equity returns were positive over the past year, with large cap stocks, as represented by the S&P 500^® Index,² rising 14.33% during the period, while small cap stocks, as represented by the Russell 2000^® Index,¹ were up 4.90%. Following a tumultuous fourth quarter of 2018, where trade tensions and monetary policy uncertainty sent many investors toward safety, the market staged a strong recovery. After the worst December since 1931, the S&P 500 posted its best January performance since 1987. Trade tensions continued to dominate headlines, as trade negotiations between the U.S. and China remained volatile throughout the period. Since the beginning of 2019, both the U.S. and China have imposed tariffs of roughly $550 billion and $185 billion on each country’s products, respectively. One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given the uncertain market outlook and the muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%.

This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Chairman Powell signaled a likely pause on future rate cuts, resulting in the market-based probability of a fourth rate cut dipping below 25%. The combination of a dovish Fed, trade pressures, and slowing economic growth resulted in falling rates across the U.S. Treasury yield curve and further increased the partial curve inversion. In fact, in July, the yield on the 10-year U.S. Treasury fell to its lowest level since 2016. Bond yields continued to fall and, in August, the spread between the U.S. 10-year Treasury and the 2-year Treasury temporarily inverted. In September, a large rotation from growth into value took place; however, market participants were uncertain about the longevity of the rotation. Geopolitics also contributed to market volatility. Following a coordinated drone strike on Saudi Arabia, Brent crude oil prices increased 20% in one trading session. Despite the record increase, oil prices retracted their gains within weeks.

The performance of the Fund for periods prior to July 1, 2019 is not representative of the Fund’s current strategy and instead reflects the Micro Cap Value Fund. From October 31, 2018 to the period ended June 30, 2019, the Fund’s position in Plantronics, Inc., a

headsets, video, and content sharing solutions distributor, detracted most from relative performance. Shares of Plantronics sold off following the acquisition of Polycom in July of 2018. While shares rose in the immediate aftermath of the deal, several missteps following the acquisition weighed on Plantronic’s shares over the remainder of the period. The Fund’s position in Centennial Resource Development also detracted from relative performance. Shares of the oil and natural gas company came under pressure throughout the period as the company faced a series of headwinds. In particular, oil price volatility weighed on the company’s profits and in turn resulted in the company announcing a pullback in daily oil production. Innovative Industrial Properties, Inc. contributed most to relative performance. The REIT, which focuses on industrial facilities for the regulated medical-use cannabis industry, saw its share price rise following a nearly 30% quarter-over-quarter dividend increase and continued acquisitions. Century Casinos, Inc., an international casino entertainment company, also contributed to relative performance. Shares of Century Casinos rose following a better-than-expected third quarter 2018 earnings release. The company delivered solid revenue growth across its three major geographic segments and management reiterated the Century Mile racetrack opening timeline.

Effective July 1, 2019, the Lord Abbett Micro Cap Value Fund changed its name to Lord Abbett Focused Small Cap Value Fund, and changed its investment strategy and the benchmark to the Russell 2000 Value Index. From July 1, 2019 to October 31, 2019, the Fund’s position in Entercom Communication Corp. was the largest detractor from relative performance. Shares of the radio broadcasting company fell after the company’s second quarter revenue came in well below guidance. Turning Point Brands, Inc., a tobacco products provider, also detracted from relative performance. Shares of Turning Point Brands came under pressure following multiple reports of lung injuries associated with vaping, which put pressure on the smokeless products industry. Natus Medical Incorporated contributed most to relative performance. Shares of the healthcare products and services provider rose following the second quarter earnings release. The business posted low single digit year-over-year growth within the neuro segment as the core driver of growth. Management was also exploring further structural consolidation, to which the market responded positively. Comfort Systems USA, Inc., a workplace solutions provider in the mechanical services industry, also contributed to relative performance. Concerns surrounding the Walker TX Holding acquisition weighed on Comfort System USA’s share price, however these concerns eased following the third quarter earnings release, where

the business reported higher-than-expected earnings per share. Management also provided positive commentary on organic growth in the coming quarter.

 

Lord Abbett Fundamental Equity Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 8.52%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Russell 1000^® Value Index,⁶ which returned 11.21% over the same period.

Domestic equity returns were positive over the past year, with large cap stocks, as represented by the S&P 500^® Index,² rising 14.33% during the period, while small cap stocks, as represented by the Russell 2000^® Index,¹ were up 4.90%. Following a tumultuous fourth quarter of 2018, where trade tensions and monetary policy uncertainty sent many investors toward safety, the market staged a strong recovery. After the worst December since 1931, the S&P 500 posted its best January performance since 1987. Trade tensions continued to dominate headlines, as trade negotiations between the U.S. and China remained volatile throughout the period. Since the beginning of 2019, both the U.S. and China have imposed tariffs of roughly $550 billion and $185 billion on each country’s products, respectively. One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with

Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given the uncertain market outlook and the muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. The combination of a dovish Fed, trade pressures, and slowing economic growth resulted in falling rates across the U.S. Treasury yield curve and further increased the partial curve inversion. In fact, in July, the yield on the 10-year U.S. Treasury fell to its lowest level since 2016. Bond yields continued to fall and, in August, the spread between the U.S. 10 year Treasury and the 2 year Treasury temporarily inverted. In September, a large rotation from growth into value took place; however, market participants were uncertain about the longevity of the rotation. Geopolitics also contributed to market volatility. Following a coordinated drone strike on Saudi Arabia, Brent crude oil prices increased 20% in one trading session. Despite the record increase, oil prices retracted their gains within weeks.

During the 12-month period ended October 31, 2019, Hewlett-Packard Co., a personal computing, imaging and printing

provider, detracted most from relative performance. Shares of the company fell throughout the period, but dropped precipitously following the company’s first quarter earnings release. The company reported softer than expected top line growth, which was due in part to the printing supplies segment. PG&E Corp., an electricity and natural gas company, also detracted from relative performance. PG&E’s stock price fell as the company prepared to file for bankruptcy in an attempt to dismiss the liability charges stemming from wildfires in 2017 and 2018. Another detractor from relative performance was Allergan Plc., a pharmaceutical products manufacturer. Shares of Allergan fell after the company delivered a proxy statement, which included a hedge fund’s recommendation to establish an independent chairman of the board of directors. Shares of Allergan also continued to come under pressure as legal concerns tied to the opioid crisis mounted.

The largest contributor to relative performance during the trailing 12-month period was the Fund’s position in Chevron Corp., a multinational energy company. Shares of Chevron rose throughout the year as the firm continued to execute on shareholder friendly policies, which included both dividend increases and share buybacks. The Fund’s position in Apple, Inc., a mobile communication, media devices, and personal computers manufacturer, also contributed to relative performance.

Shares of Apple rose after the company reported fiscal fourth quarter results. The company’s iPhone business grew above market expectations and the recently released iPhone 11 has been received well by consumers. The Fund’s position in Merck & Co., a health solutions provider, also contributed to relative performance. The stock price of Merck rose after the company reported better-than-expected first quarter earnings results. Sales increased 11% and were largely lifted by growth from Keytruda, a cancer drug.

 

Lord Abbett Global Equity Research Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 10.85%, reflecting performance at the net asset value (NAV) of Class A Shares with all distributions reinvested, compared to its benchmark, the MSCI ACWI Index with Net Dividends,⁷ which returned 12.59% over the same period.

Over the period, global equity markets outside the United States experienced significant positive performance, as most central banks remained accommodative, interest rates remained low, and unemployment steadily declined. In addition, corporate earnings remained strong, while global economic growth showed signs of a synchronized slowdown. Overall, European markets (as measured by the Euro Stoxx 50^® Index⁸) rose roughly 11.1% in U.S. dollars for the period, while Japan’s Nikkei 225⁹ rose 9.5%.

One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed will act appropriately to sustain economic growth. Given an uncertain market outlook and muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Chairman Powell signaled a likely pause on future interest rate cuts during the October 2019 meeting. Meanwhile, other central banks have continued their accommodative policies. The European Central Bank (ECB) kept its benchmark refinancing rate unchanged at 0% at its September 2019 meeting, and approved a new round of bond purchases at a monthly pace of €20 billion beginning on November 1st 2019, in an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. The Bank of Japan (BoJ) also maintained its stimulative monetary policy at its October 2019 meeting, as short-term interest rates remained unchanged at -0.1%, and the bank kept its 10-year government bond yield target at around 0%. The BoJ also signaled that it may cut

interest rates in the near future to support growth.

The International Monetary Fund cut its global growth estimate to 3.0% for 2019, its lowest level since 2008-2009. The International Monetary Fund projects growth to pick up to 3.4% in 2020, “reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East, and emerging and developing Europe that are under macroeconomic strain. Yet, with uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize”. Unemployment declined or stayed at multi-year lows in most developed countries, falling to 7.5% in the euro area, 3.6% in the United States, and 3.6% in China, while staying at 2.4% in Japan, all multiyear lows. Gross Domestic Product growth has remained positive in most developed countries, while inflation remained subdued, allowing central banks to continue their stimulative monetary policies with global stock markets as the beneficiaries.

During the period, the Fund’s underperformance relative to the benchmark was driven by the information technology and health care sectors. Within the information technology sector, holdings of Conduent, Inc. detracted from relative performance. Shares of the

American business process services company fell after disappointing first quarter 2019 results and news that the CEO would step down. Several analysts cut their ratings on the stock after the CEO’s departure. An overweight position in DXC Technology Co. also detracted from relative performance as the company’s stock fell throughout the year. The American information technology company’s stock declined after a slump in the company’s legacy business and a forecast cut led to at least two downgrades and a flurry of price target cuts.

Within the health care sector, an overweight position in Myovant Sciences Ltd. detracted from relative performance. The clinical-stage biopharmaceutical company’s stock fell as investors believed that its key uterine fibroid drug Relugolix would be second to market without a clear advantage and would have difficulty competing against AbbVie Inc., a larger and better resourced competitor.

Conversely, stock selection within the materials and consumer discretionary sectors positively contributed to relative performance. Within the materials sector, shares of Wheaton Precious Metals Corp. contributed to performance. The precious metals streaming company’s stock rose as the escalating trade war between the U.S. and China drove silver and gold prices higher, as these metals are considered safe haven assets, benefiting Wheaton as the majority of its revenue is driven by stakes in silver and gold. Additionally, shares of

Lundin Mining Corp. also contributed positively to performance. The Canadian metals mining company’s stock rose as the company’s acquisition of Brazil’s Chapada mine received positive feedback in the market.

Within the consumer discretionary sector, holdings of Chipotle Mexican Grill, Inc. contributed positively to relative performance. The quick serve Mexican restaurant chain’s stock rose as the company’s new CEO turned Chipotle around by cleaning up the chain’s operations, adding new menu items, pushing into delivery and boosting the brand’s digital presence.

 

Lord Abbett Global Select Equity Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 7.36%, reflecting performance at the net asset value (NAV) of Class A Shares with all distributions reinvested, compared to its benchmark, the MSCI ACWI Index with Net Dividends,⁷ which returned 12.59% over the same period.

Over the period, global equity markets outside the United States experienced significant positive performance, as most central banks remained accommodative, interest rates remained low, and unemployment steadily declined. In addition, corporate earnings remained strong, while global economic growth showed signs of a synchronized slowdown. Overall, European markets (as measured by

the Euro Stoxx 50^® Index⁸) rose roughly 11.1% in U.S. dollars for the period, while Japan’s Nikkei 225⁹ rose 9.5%.

One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed will act appropriately to sustain economic growth. Given an uncertain market outlook and muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Chairman Powell signaled a likely pause on future interest rate cuts during the October 2019 meeting. Meanwhile, other central banks have continued their accommodative policies. The European Central Bank (ECB) kept its benchmark refinancing rate unchanged at 0% at its September 2019 meeting, and approved a new round of bond purchases at a monthly pace of €20 billion beginning on November 1st 2019, in an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. The Bank of Japan (BoJ) also maintained its stimulative monetary policy at its October 2019 meeting, as short-term interest rates remained unchanged at -0.1%, and the

bank kept its 10-year government bond yield target at around 0%. The BoJ also signaled that it may cut interest rates in the near future to support growth.

The International Monetary Fund cut its global growth estimate to 3.0% for 2019, its lowest level since 2008-2009. The International Monetary Fund projects growth to pick up to 3.4% in 2020, “reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East, and emerging and developing Europe that are under macroeconomic strain. Yet, with uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize”. Unemployment declined or stayed at multi-year lows in most developed countries, falling to 7.5% in the euro area, 3.6% in the United States, and 3.6% in China, while staying at 2.4% in Japan, all multiyear lows. Gross Domestic Product growth has remained positive in most developed countries, while inflation remained subdued, allowing central banks to continue their stimulative monetary policies with global stock markets as the beneficiaries.

During the period, the Fund’s underperformance relative to its benchmark was driven by the information technology and financials sectors. Within the information technology sector,

holdings of Conduent, Inc. detracted from relative performance. Shares of the American business process services company fell after disappointing first quarter 2019 results and more notably, news that the CEO would step down. Several analysts cut their ratings on the stock after the CEO’s departure. An overweight position in DXC Technology Co. also detracted from relative performance as the company’s stock fell throughout the year. The American information technology company’s stock declined after a slump in the company’s legacy business and a forecast cut led to at least two downgrades and a flurry of price target cuts.

Within the financials sector, an overweight position in Bank of Ireland Group Plc detracted from relative performance. The Irish banking services company’s stock fell throughout the year amid a tough environment due to continued Brexit uncertainty and net interest margin pressure from lower interest rates.

Conversely, stock selection within the consumer discretionary and health care sectors positively contributed to relative performance. Within the consumer discretionary sector, shares of Dollar Tree, Inc. contributed positively to performance. The U.S.-based discount variety store chain’s stock rose as investors applauded the company’s strengthening turnaround bid as it maintained the brisk pace of growth that made it an industry standout in recent years. Additionally, shares of

Aramark Holdings Corp. contributed positively to performance. The U.S.-based food and facilities management services company’s stock rose after activist investor Mantle Ridge disclosed it had built a 20% stake and planned to push for changes at the company.

Within the health care sector, holdings of AstraZeneca Plc contributed positively to relative performance. The British pharmaceuticals and medical products company’s stock rose after second-quarter profit came in well above analyst expectations and sales in China, one of the company’s most important markets, rose 34%.

 

Lord Abbett Growth Leaders Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 15.32%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Russell 1000^® Growth Index,³ which returned 17.10% over the same period.

Domestic equity returns were positive over the past year, with large cap stocks, as represented by the S&P 500^® Index,² rising 14.33% during the period, while small cap stocks, as represented by the Russell 2000^® Index,¹ were up 4.90%. Following a tumultuous fourth quarter of 2018, where trade tensions and monetary policy uncertainty sent many investors toward safety, the market staged a strong recovery. After the worst December since 1931, the

S&P 500 posted its best January performance since 1987. Trade tensions continued to dominate headlines, as trade negotiations between the U.S. and China remained volatile throughout the period. Since the beginning of 2019, both the U.S. and China have imposed tariffs of roughly $550 billion and $185 billion on each country’s products, respectively. One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given the uncertain market outlook and the muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. The Fed followed that decision with two more 25 basis point rate cuts in September and October. The combination of a dovish Fed, trade pressures, and slowing economic growth resulted in falling rates across the U.S. Treasury yield curve. In fact, in July, the yield on the 10-year U.S. Treasury fell to its lowest level since 2016 as bond yields continued to fall and, in August, the spread between the U.S. 10-year Treasury and the 2-year Treasury temporarily inverted. In September, a large rotation from growth into value took place; however, market participants were uncertain about the longevity of the rotation.

Security selection and positioning within the communication services sector detracted from the Fund’s relative

performance during the 12-month period. Within the sector, the Fund’s underweight positions in Facebook, Inc. and Alphabet, Inc., two of the largest technology companies in the world, detracted from relative performance. Facebook and Alphabet each faced increased global regulatory pressure, as privacy concerns and antitrust discussions overshadowed earnings. Shares of Twitter, Inc., a social media platform, also detracted from relative performance. Despite better-than-expected user growth, Twitter failed to meet revenue estimates as the company experienced issues with its Mobile Application Promotion, which is a suite of products that enables advertisers to promote mobile applications, sending its share price spiraling downwards.

Shares of Align Technology, Inc., a manufacturer of medical devices, specifically the Invisalign^® dental product, also detracted from the Fund’s performance. Align reported a second quarter Invisalign^® case shipments miss, which management attributed to a slowdown in consumer spending in China and competitive pressures in North America.

Security selection in the information technology sector contributed to the Fund’s performance relative to its benchmark during the period. Within the information technology sector, shares of Okta, Inc., a provider of identity management services, contributed to relative performance. Okta experienced

sustained recruitment process outsourcing growth, as it continued to win with large enterprise customers, which resulted in bigger deals and longer contracts. Additionally, the Fund’s holdings of Trade Desk, Inc., a provider of an advertisement technology platform, contributed as the company reported strong fourth quarter 2018 results, with revenue growth acceleration driven by strength in its connected TV business.

The Fund’s position in Roku, Inc., a provider of a streaming platform, also contributed to relative performance as consumers continued to transition from traditional linear TV to streaming platforms.

 

Lord Abbett International Equity Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 10.64%, reflecting performance at the net asset value (NAV) of Class A Shares with all distributions reinvested, compared to its benchmark, the MSCI ACWI ex-U.S. Index with Net Dividends¹⁰, which returned 11.27% over the same period.

Over the period, global equity markets outside the United States experienced significant positive performance, as most central banks remained accommodative, interest rates remained low, and unemployment steadily declined. In addition, corporate earnings remained strong, while global economic growth showed signs of a synchronized slowdown.

Overall, European markets (as measured by the Euro Stoxx 50^® Index⁸) rose roughly 11.1% in U.S. dollars for the period, while Japan’s Nikkei 225⁹ rose 9.5%.

One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed will act appropriately to sustain economic growth. Given an uncertain market outlook and muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Chairman Powell signaled a likely pause on future interest rate cuts during the October 2019 meeting. Meanwhile, other central banks have continued their accommodative policies. The European Central Bank (ECB) kept its benchmark refinancing rate unchanged at 0% at its September 2019 meeting, and approved a new round of bond purchases at a monthly pace of €20 billion beginning on November 1st 2019, in an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. The Bank of Japan (BoJ) also maintained its stimulative monetary policy at its October 2019 meeting, as short-term interest rates

remained unchanged at -0.1%, and the bank kept its 10-year government bond yield target at around 0%. The BoJ also signaled that it may cut interest rates in the near future to support growth.

The International Monetary Fund cut its global growth estimate to 3.0% for 2019, its lowest level since 2008-2009. The International Monetary Fund projects growth to pick up to 3.4% in 2020, “reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East, and emerging and developing Europe that are under macroeconomic strain. Yet, with uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize”. Unemployment declined or stayed at multi-year lows in most developed countries, falling to 7.5% in the euro area, 3.6% in the United States, and 3.6% in China, while staying at 2.4% in Japan, all multiyear lows. Gross Domestic Product growth has remained positive in most developed countries, while inflation remained subdued, allowing central banks to continue their stimulative monetary policies with global stock markets as the beneficiaries.

During the period, the Fund’s underperformance relative to its benchmark was driven by stock selection, particularly within the consumer

discretionary and real estate sectors. Within the consumer discretionary sector, an overweight position in GVC Holdings Plc detracted from relative performance. Shares of the e-gaming operator fell in March after Chief Executive Kenny Alexander and Chairman Lee Feldman sold blocks of shares in the company. Additionally, shares of Continental AG detracted from relative performance. Shares of the German tire, automotive parts, and industrial products manufacturer declined as car-parts suppliers performed very poorly amid falling worldwide vehicle production and increased uncertainty about tariffs.

Security selection in the real estate sector also detracted from relative performance. Within the real estate sector, an overweight position in Kerry Properties Ltd. detracted from relative performance. Shares of the Hong Kong based property development company fell amid overall weak office demand due to the U.S.-China trade dispute and due to significant damage to the local economy inflicted by the Hong Kong protests.

Conversely, stock selection within the financials and health care sectors contributed to relative performance over the period. Within the financials sector, shares of Bank Rakyat Indonesia contributed to relative performance. The Indonesian bank’s shares rose after presidential incumbent Joko Widodo won his second term in office, sending local stocks and the Rupiah rallying. AIA Group

Limited, a Hong Kong based life insurance and financial services company, also contributed to relative performance. The company’s shares rose after its third quarter performance data showed an improvement in margins of new business value.

Within the health care sector, shares of Hoya Corp., a Tokyo-based manufacturer of electro-optics products, contributed positively to performance. Shares rose over the period as the company beat earnings estimates for four consecutive quarters.

 

Lord Abbett International Opportunities Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 7.05%, reflecting performance at the net asset value (NAV) of Class A Shares with all distributions reinvested, compared to its benchmark, the S&P Developed Ex-U.S. SmallCap^® Index¹¹, which returned 7.90% over the same period.

Over the period, global equity markets outside the United States experienced significant positive performance, as most central banks remained accommodative, interest rates remained low, and unemployment steadily declined. In addition, corporate earnings remained strong, while global economic growth showed signs of a synchronized slowdown. Overall, European markets (as measured by the Euro Stoxx 50^® Index⁸) rose roughly 11.1% in U.S. dollars for the period, while Japan’s Nikkei 225⁹ rose 9.5%.

One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed will act appropriately to sustain economic growth. Given an uncertain market outlook and muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Fed Chairman Powell signaled a likely pause on future interest rate cuts during the October 2019 meeting. Meanwhile, other central banks have continued their accommodative policies. The European Central Bank (ECB) kept its benchmark refinancing rate unchanged at 0% at its September 2019 meeting, and approved a new round of bond purchases at a monthly pace of €20 billion beginning on November 1st 2019, in an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. The Bank of Japan (BoJ) also maintained its stimulative monetary policy at its October 2019 meeting, as short-term interest rates remained unchanged at -0.1%, and the bank kept its 10-year government bond yield target at around 0%. The BoJ also

signaled that it may cut interest rates in the near future to support growth.

The International Monetary Fund cut its global growth estimate to 3.0% for 2019, its lowest level since 2008-2009. The International Monetary Fund projects growth to pick up to 3.4% in 2020, “reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East, and emerging and developing Europe that are under macroeconomic strain. Yet, with uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize”. Unemployment declined or stayed at multi-year lows in most developed countries, falling to 7.5% in the euro area, 3.6% in the United States, and 3.6% in China, while staying at 2.4% in Japan, all multiyear lows. Gross Domestic Product growth has remained positive in most developed countries, while inflation remained subdued, allowing central banks to continue their stimulative monetary policies with global stock markets as the beneficiaries.

Stock selection, most notably in the consumer discretionary and real estate sectors, was the primary driver of relative underperformance during the period. Within the real estate sector, shares of Neinor Homes SA detracted from relative performance. Shares of the Spanish real

estate development company fell after it cut guidance for home deliveries for 2019 and 2020. In addition, within the consumer discretionary sector, shares of United Arrows Ltd. detracted from relative performance. The Tokyo-based fashion apparel company’s stock fell due to a general correction in the broader apparel industry as well as the earnings impact of transferring shares in Chrome Hearts.

Within the real estate sector, shares of Kerry Properties Ltd. detracted from relative performance over the period. Shares of the Hong Kong based property development company fell amid overall weak office demand likely due to the U.S.-China trade dispute, as well as significant damage to the local economy inflicted by the Hong Kong protests.

Conversely, stock selection in the consumer staples and materials sectors contributed to relative performance. Within the consumer staples sector, shares of Britvic Plc contributed to relative performance. Shares of the British soft drinks manufacturing company rose after sell-side analysts highlighted improving investor confidence, business continuity planning efficiency-program completion, improving free cash flow, revenue growth, a Brazil turnaround, and M&A/capital returns optionality. In addition, holdings of C&C Group Plc contributed to relative performance during the period. Shares of the Ireland-based alcoholic beverage manufacturing company rose after it guided to double-digit EPS growth in fiscal

year 2020 and announced its intention to gain admission to the FTSE 250 Index.

Within the materials sector, an overweight position to Hudbay Minerals, Inc contributed to relative performance, as shares of the company rose throughout the period. The Canadian mining company benefited from a positive outlook following receipt of the Rosemont mine permits and improved operations across its portfolio.

 

Lord Abbett International Value Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 6.91%, reflecting performance at the net asset value (NAV) of Class A Shares with all distributions reinvested, compared to its benchmark, the MSCI EAFE Value Index with Net Dividends,¹² which returned 5.51% over the same period.

Over the period, global equity markets outside the United States experienced significant positive performance, as most central banks remained accommodative, interest rates remained low, and unemployment steadily declined. In addition, corporate earnings remained strong, while global economic growth showed signs of a synchronized slowdown. Overall, European markets (as measured by the Euro Stoxx 50^® Index⁸) rose roughly 11.1% in U.S. dollars for the period, while Japan’s Nikkei 225⁹ rose 9.5%.

One of the more notable shifts over the year was the U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy

stance, with Chairman Jerome Powell stating that the Fed will act appropriately to sustain economic growth. Given an uncertain market outlook and muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Chairman Powell signaled a likely pause on future interest rate cuts during the October 2019 meeting. Meanwhile, other central banks have continued their accommodative policies. The European Central Bank (ECB) kept its benchmark refinancing rate unchanged at 0% at its September 2019 meeting, and approved a new round of bond purchases at a monthly pace of €20 billion beginning on November 1st 2019, in an attempt to boost growth and inflation amid global trade tensions and Brexit uncertainty. The Bank of Japan (BoJ) also maintained its stimulative monetary policy at its October 2019 meeting, as short-term interest rates remained unchanged at -0.1%, and the bank kept its 10-year government bond yield target at around 0%. The BoJ also signaled that it may cut interest rates in the near future to support growth.

The International Monetary Fund cut its global growth estimate to 3.0% for

2019, its lowest level since 2008-2009. The International Monetary Growth projects growth to pick up to 3.4% in 2020, “reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East, and emerging and developing Europe that are under macroeconomic strain. Yet, with uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize”. Unemployment declined or stayed at multi-year lows in most developed countries, falling to 7.5% in the euro area, 3.6% in the United States, and 3.6% in China, while staying at 2.4% in Japan, all multiyear lows. Gross Domestic Product growth has remained positive in most developed countries, while inflation remained subdued, allowing central banks to continue their stimulative monetary policies with global stock markets as the beneficiaries.

During the period, the Fund’s outperformance relative to the benchmark was driven by its stock selection within the financials and energy sectors. Within the financials sector, shares of Swiss Life Holding AG, a Swiss financial services company, rose as strong first half 2019 figures showed growth in net earned premiums, third-party assets under management, and net profit attributable to shareholders. Additionally, an overweight

position in Allianz SE contributed to relative performance throughout the year. The German insurance and financial services company’s stock rose as management highlighted its determination to deliver on all targets—both operating profit targets and strategic plan targets—despite low interest rates in two key countries, Germany and France.

Within the energy sector, shares of Lukoil PJSC, a Russian oil production company, contributed to relative performance. The company’s stock advanced after the company’s board approved a new dividend policy and recommended the biggest-ever interim payout for this year, amounting to at least 100% of its adjusted free cash flow as dividend.

Conversely, stock selection within the consumer discretionary and real estate sectors detracted from relative performance. Within the consumer discretionary sector, shares of Tui AG, a Germany-based tourism service provider, fell after the company’s costs rose dramatically due to Boeing’s 737 MAX aircraft grounding. Additionally, Continental AG, a German tire, automotive parts, and industrial products manufacturer, detracted from relative performance. The company’s stock fell as car-parts suppliers performed poorly amid falling worldwide vehicle production and increased uncertainty about tariffs.

Within the real estate sector, shares of Kerry Properties Ltd., a Hong Kong-based

real estate development company, detracted from performance. Shares fell amid overall weak office demand due to the U.S.-China trade dispute and due to significant damage to the local economy inflicted by the Hong Kong protests.

 

Lord Abbett Value Opportunities Fund

 

For the fiscal year ended October 31, 2019, the Fund returned 5.22%, reflecting performance at the net asset value (NAV) of Class A shares with all distributions reinvested, compared to its benchmark, the Russell 2500™ Index,¹³ which returned 8.84% over the same period.

Domestic equity returns were positive over the past year, with large cap stocks, as represented by the S&P 500^® Index,² rising 14.33% during the period, while small cap stocks, as represented by the Russell 2000^® Index,¹ were up 4.90%. Following a tumultuous fourth quarter of 2018, where trade tensions and monetary policy uncertainty sent many investors toward safety, the market staged a strong recovery. After the worst December since 1931, the S&P 500 posted its best January performance since 1987. Trade tensions continued to dominate headlines, as trade negotiations between the U.S. and China remained volatile throughout the period. Since the beginning of 2019, both the U.S. and China have imposed tariffs of roughly $550 billion and $185 billion on each country’s products, respectively. One of the more notable shifts over the year was the

U.S. Federal Reserve’s (the “Fed”) transition to a more dovish policy stance, with Chairman Jerome Powell stating that the Fed would act appropriately to sustain economic growth. Given the uncertain market outlook and the muted inflation pressure, the Fed announced its decision to cut interest rates by 25 basis points on July 31, 2019 to a range of 2.00-2.25%. This was the first time that the Fed cut interest rates since December 2008. The Fed followed that decision with two more 25 basis point rate cuts in September and October, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. The combination of a dovish Fed, trade pressures, and slowing economic growth resulted in falling rates across the U.S. Treasury yield curve and further increased the partial curve inversion. In fact, in July, the yield on the 10-year U.S. Treasury fell to its lowest level since 2016. Bond yields continued to fall and, in August, the spread between the U.S. 10 year Treasury and the 2 year Treasury temporarily inverted. In September, a large rotation from growth into value took place; however, market participants were uncertain about the longevity of the rotation. Geopolitics also contributed to market volatility. Following a coordinated drone strike on Saudi Arabia, Brent crude oil prices increased 20% in one trading session. Despite the record increase, oil prices retracted their gains within weeks.

The Fund’s holding of Conduent, Inc., a business process services provider, was the largest detractor from relative performance over the period. The firm’s stock price dropped precipitously after CEO Ashok Vemuri announced his intention to step down. The announcement came after a series of disappointing quarterly results as well as litigation issues with the state of Texas. The Fund’s position in Plantronics, Inc., a headsets, video, and content sharing solutions distributor, also detracted from relative performance. Shares of Plantronics sold off following the firm’s acquisition of Polycom in July of 2018. While shares rose in the immediate aftermath of the deal announcement, several missteps following the acquisition weighed on Plantronic’s shares over the remainder of the period. The Fund’s position in Centennial Resource Development also detracted from relative performance. Shares of the oil and natural gas company came under pressure throughout the period as the company faced a series of headwinds. In particular, oil price volatility weighed on the company’s profits and in turn resulted in the company announcing a pullback in daily oil production.

Conversely, the Fund’s holding of Reliance Steel & Aluminum Co., a metal processing services and distribution company, contributed most to relative performance over the period. Shares of Reliance Steel & Aluminum rose throughout the period after the company reported solid quarterly earnings. Most

notably, the company’s third quarter EPS and free cash flow to equity came in well above the analysts’ expectations. The firm continued to see strong underlying construction demand and remained constructive on the aerospace and automotive markets. Another contributor during the period was the Fund’s position in Entegris, Inc., a specialty materials supplier to the microelectronics industry. Shares of Entegris rose after the company announced the acquisition of MPD Chemicals, which the market expected would diversify Entegris’ engineered materials portfolio. The Fund’s holding in RenaissanceRe Holdings Ltd., an insurance provider, also contributed to relative performance. Shares of RenaissanceRe Holdings rose following an impressive first quarter, where earnings beat consensus and the firm reported robust top-line growth and strong accident-year results.

Each Fund’s portfolio is actively managed and, therefore, its holdings and the weightings of a particular issuer or particular sector as a percentage of portfolio assets are subject to change. Sectors may include many industries.

¹   The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 10% of the total market capitalization of the Russell 3000^® Index.

 

²   The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

 

³   The Russell 1000^® Growth Index measures the performance of those Russell 1000^® Index companies with higher price-to-book ratios and higher forecasted growth values.

 

⁴   The Russell 2000 Value^® Index measures the performance of those stocks of the Russell 2000 Index with lower price-to-book ratios and lower relative forecasted growth rates. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and an investor cannot invest directly in an index.

 

⁵   The Russell Microcap^® Value Index measures the performance of those Russell Microcap Index companies with lower price-to-book ratios and lower forecasted growth values.

 

⁶   The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

 

⁷   The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

 

⁸   The EURO STOXX 50^® Index represents the performance of the 50 largest companies among the 19 supersectors in terms of free-float market cap in 12 eurozone countries. These countries include Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The Index has a fixed number of components and is part of the STOXX^® blue-chip index family. The Index captures about 60% of the free-float market cap of the EURO STOXX^® Total Market Index (TMI).

 

⁹   The Nikkei 225 is used around the globe as the premier index of Japanese stocks. Because of the prominent nature of the Index, many financial products linked to the Nikkei 225 that have been created are traded worldwide, and the Index has been sufficiently used as the indicator of the movement of Japanese stock markets. The Nikkei 225 is a price-

weighted equity index, which consists of 225 stocks in the 1st section of the Tokyo Stock Exchange.

 

¹⁰   The MSCI ACWI (All Country World Index) ex-U.S. Index is a subset of the MSCI ACWI Index. The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI ex-U.S. Index with Gross Dividends approximates the maximum possible dividend reinvestment. The amount reinvested is the entire dividend distributed to individuals domiciled in the country of the company, but does not include tax credits. The MSCI ACWI ex-U.S. Index with Net Dividends approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.

 

¹¹   The S&P Developed Ex-U.S. SmallCap^® Index captures the bottom 15% of companies domiciled in the developed markets (excluding the United States) within the S&P Global BMI with a float-adjusted market capitalization of at least US$100 million and a value traded of at least US$50 million for the past 12 months at the time of the annual reconstitution. Stocks are excluded if their market capitalization falls below US$75 million, or if the value traded is less than US$35 million at the time of reconstitution.

 

¹²   The MSCI EAFE Value Index captures large and mid-cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the U.S. and Canada. Gross Dividends approximates the maximum possible dividend reinvestment. The amount reinvested is the entire dividend distributed to individuals resident in the country of the company, but does not include tax credits. Net Dividends approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.

 

¹³   The Russell 2500™ Index is a market cap weighted index that includes the smallest 2,500 companies covered in the Russell 3000^® Index universe of United States-based listed equities.

Unless otherwise specified, indexes reflect total return, with all dividends reinvested. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

 

Important Performance and Other Information
Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in the Funds will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling Lord Abbett at 888-522-2388 or referring to www.lordabbett.com.

 

Except where noted, comparative Fund performance does not account for the deduction of sales charges and would be different if sales charges were included. Each Fund offers classes of shares with distinct pricing options. For a full description of the differences in pricing alternatives, please see each Fund’s prospectus.

 

During certain periods shown, expense waivers and reimbursements were in place for Alpha Strategy Fund, Focused Growth Fund, Focused Small Cap Value Fund, Global Equity Research Fund, Global Select Equity Fund, International Equity Fund and International Value Fund. Without such expense waivers and reimbursements, each Fund’s returns would have been lower.

The annual commentary above discusses the views of the Funds’ management and various portfolio holdings of the Funds as of October 31, 2019. These views and portfolio holdings may have changed after this date. Information provided in the commentary is not a recommendation to buy or sell securities. Because the Funds’ portfolio is actively managed and may change significantly, the Funds may no longer own the securities described above or may have otherwise changed their positions in the securities. For more recent information about the Funds’ portfolio holdings, please visit www.lordabbett.com.

 

A Note about Risk: See Notes to Financial Statements for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see each Fund’s prospectus.

 

Mutual funds are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks, and are subject to investment risks including possible loss of principal amount invested.

¹    Reflects the deduction of the maximum initial sales charge of 5.75%.

²    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³    Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund’s performance.

⁴    Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and

distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁵    The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁶    Performance is at net asset value.

⁷    Commenced operations and performance for the Class began on April 4, 2017. Performance is at its net asset value.

⁸    Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.

¹    Reflects the deduction of the maximum initial sales charge of 5.75%.

²    Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance. Performance of the index begins on January 31, 2019.

³    Class A shares commenced operations on January 30, 2019 and performance for the Class began on January 31, 2019. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴    Class C shares commenced operations on January 30, 2019 and performance for the Class began on January 31, 2019. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date.

⁵    Commenced operations on January 30, 2019 and performance for the Classes began on January 31, 2019. Performance is at net asset value.

¹    Reflects the deduction of the maximum initial sales charge of 5.75%.

²    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³    Total return, which is the percent change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC required uniform method to compute such return.

⁴    Class C shares commenced operations on June 28, 2019 and performance for the Class began on July 1, 2019. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value

⁵    Commenced operations on June 28, 2019 and performance for the Class began on July 1, 2019. Performance is at net asset value.

⁶    Performance is at net asset value.

¹    Reflects the deduction of the maximum initial sales charge of 5.75%.

²    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³    Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴    The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵    Performance is at net asset value.

⁶    Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.

⁷    Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.

¹    Reflects the deduction of the maximum initial sales charge of 5.75%.

²    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance of each index begins on January 18, 2017.

³    Class A shares commenced operations on January 17, 2017 and performance for the Class began on January 18, 2017. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴    Class C shares commenced operations on January 17, 2017 and performance for the Class began on January 18, 2017. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵    Commenced operations on January 17, 2017 and performance for the Class began on January 18, 2017. Performance is at net asset value.

⁶    Commenced operations and performance for the class began on April 4, 2017. Performance is at net asset value.

¹    Reflects the deduction of the maximum initial sales charge of 5.75%.

²    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance of each index begins on July 31, 2018.

³    Class A shares commenced operations on July 30, 2018 and performance for the Class began on July 31, 2018. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴    Class C shares commenced operations on July 30, 2018 and performance for the Class began on July 31, 2018. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵    Commenced operations on July 30, 2018 and performance for the Class began on July 31, 2018. Performance is at net asset value.

¹   Reflects the deduction of the maximum initial sales charge of 5.75%.

²   Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index begins on June 30, 2011.

³   Class A shares commenced operations on June 24, 2011 and performance for the Class began on June 30, 2011. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴   Class C shares commenced operations on June 24, 2011 and performance for the Class began on June 30, 2011. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵   Commenced operations on June 24, 2011 and performance for the Class began on June 30, 2011. Performance is at net asset value.

⁶   Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.

⁷   Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.

¹   Reflects the deduction of the maximum initial sales charge of 5.75%.

²   Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³   Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴   The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵   Performance is at net asset value.

⁶   Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.

⁷   Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.

¹   Reflects the deduction of the maximum initial sales charge of 5.75%.

²   Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance.

³   Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴   The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance is at net asset value.

⁵   Performance is at net asset value.

⁶   Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.

⁷   Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.

¹   Reflects the deduction of the maximum initial sales charge of 5.75%.

²   Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³   Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴   The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵   Performance is at net asset value.

⁶   Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.

⁷   Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.

¹   Reflects the deduction of the maximum initial sales charge of 5.75%.

²   Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³   Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 5.75% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ended October 31, 2019, is calculated using the SEC-required uniform method to compute such return.

⁴   The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁵   Performance is at net asset value.

⁶   Commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value.

⁷   Commenced operations and performance for the classes began on June 30, 2015. Performance is at net asset value.