Alpha Strategy Fund (ALFAX) - Class A

Important Information
Maximum Offering Price (MOP) - Returns with sales charges reflect applicable fees and expenses and include all distributions reinvested.
Net Asset Value (NAV) - Returns shown at net asset value have all distributions reinvested. If a sales charge had been deducted, the results would have been lower.
Returns shown at less than a year reflect aggregate total returns.
Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time.

Class A- Except as noted below, returns with sales charges reflect a maximum sales charge of 5.75% for equity and strategic allocation funds, 4.75% for Lord Abbett Bond Debenture Fund, and 2.25% for all tax-free income funds and taxable fixed income funds (except for Lord Abbett Bond Debenture Fund). There are also ongoing 12b-1 service fees (and, in certain cases, distribution fees).

Class A Shares purchased subject to a front-end sales charge have no contingent deferred sales charge (CDSC). However, certain purchases of Class A shares made without a front-end sales charge may be subject to a CDSC of 1% if the shares are redeemed before the first day of the month in which the one year anniversary of the purchase falls. The CDSC is not reflected in the performance with maximum sales charge.

A Note about Risk: The Alpha Strategy Fund invests primarily in U.S. and global small cap company stocks, which tend to be more volatile and less liquid than large cap company stocks. The value of the underlying funds' investments and the net asset values of the shares of both the Fund and the underlying funds will fluctuate in response to various market and economic factors related to the equity and fixed-income markets, as well as the financial condition and prospects of issuers in which the underlying funds invest. Investments in small and/or mid-sized company stocks typically involve greater risk, particularly in the short term, than those in larger, more established companies. Investing internationally involves risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and the limited availability of information. These factors can affect Fund performance.

The Fund invests all of its net assets directly in the underlying funds. The percentages shown are based on individual securities owned in one or more of the underlying funds. The Fund's portfolio is actively managed and therefore, its percentage allocations may change from time to time. Holdings are for informational purposes only and are not a recommendation to buy, sell, or hold any security.

 

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.

The Blended Index consists of the following components: 85% Russell 2000^® Index and 15% S&P Developed Ex-U.S. Small Cap Index. Index is unmanaged, does not reflect the deduction of fees or expenses; and is not available for direct investment.

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.

The S&P Developed Ex-U.S. SmallCap^® Index captures the bottom 15% of companies domiciled in the developed markets excluding the U.S. within the S&P Global BMI with a float-adjusted market capitalization of at least US$ 100 million and a minimum annual trading liquidity of US$ 50 million.

Expense Ratio Details
The net expense ratio takes into account a management fee waiver whereby Lord Abbett has contractually agreed to waive half of its management fee through 02/28/2014 and has elected to voluntarily waive the other half of its management fee, which Lord Abbett may stop at its discretion. For periods when the waiver was in place, the Fund benefited by not bearing these expenses. Without such management fee waiver, performance would have been lower.

Alpha - The annualized percentage difference between a fund's actual returns and its expected performance given its level of market risk, as measured by beta. Based on the 3 years ended as of the date of the calculation.

Beta - A measure of the fund's volatility relative to the market, as represented by the 85% Russell 2000 / 15% S&P Developed Ex-U.S. SmallCap Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3 years ended as of the date of the calculation.

R-squared - Percentage of the fund's returns explained by movements in the 85% Russell 2000 / 15% S&P Developed Ex-U.S. SmallCap Index. 1.00 equals perfect correlation to the index. Based on the 3 years ended as of the date of the calculation.

Sharpe Ratio - A statistical measurement of a fund's historical risk-adjusted performance. It is calculated by taking a fund's excess return over that of the three-month Treasury bill divided by its standard deviation. Higher values generally indicate better historical risk-adjusted performance. Based on the 3 years ended as of the date of the calculation.

Standard Deviation - A statistical measurement of the range of a fund's total returns. In general, a higher standard deviation means greater volatility. Based on the fund's monthly returns over the 3-year period ended as of the date of the calculation.

Upside Capture Ratio - The upside capture ratio is a measure of a manager's performance in up markets relative to a particular benchmark. An up market is one in which the market's quarterly (or monthly) return is greater than or equal to zero. For example, a ratio of 50% means that the portfolio's value increased half as much as its benchmark index during up markets. Based on the 3 years ended as of the date of calculation.

Downside Capture Ratio - The downside capture ratio measures a manager's performance in down markets relative to a particular benchmark. A down market is one in which the market's quarterly (or monthly) return is less than zero. For example, a ratio of 50% means that the portfolio's value fell half as much as its benchmark index during down markets. Based on the 3 years ended as of the date of calculation.

Performance data quoted is historical. Past performance is not indicative 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 Fund will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent quarter-end, go to quarter ending performance on our Website or call Lord Abbett at (888) 522-2388.

Lipper Category Average - Peer group averages are based on universes of funds with the same investment objectives. The average return for the peer group is based on the returns of each individual fund within the group for the period shown. This average assumes reinvestment of dividends.

Expense ratio: Lipper category average reflects the average expenses of Class A shares of all funds with in the peer group based on Lipper data available.

¹ The Fund’s dividend yield is shown without sales charges (at NAV) and with maximum sales charges (at MOP). The Fund’s dividend yield takes into account any fee waiver or expense limitation arrangements, if any. Without such fee waivers or expense limitation arrangements, the Fund’s dividend yield would have been lower. Information regarding any fee waivers or expense limitation arrangements applicable to the Fund is provided with the Fund’s expense ratio information.

² The Fund’s unsubsidized dividend yield is shown without sales charges (at NAV) and with maximum sales charges (at MOP). The Fund’s unsubsidized dividend yield reflects what the yield would have been without the affect of fee waivers or expense limitation arrangements.