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Fund Returns
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As of August 31, 2010
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All returns in percentages
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| Class |
Last
Quarter
06/30/2010
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Year
to Date
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1
Year
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3
Year
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5
Year
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10 Years
or Life
of Fund
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A
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NAV
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-9.86
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-5.73
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14.14
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-4.68
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2.03
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2.03
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| |
Inception date: June 30, 2005
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B
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NAV
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-10.00
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-6.06
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13.36
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-5.29
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--
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1.37
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| |
Inception date: June 30, 2005
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B
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NAV
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1.37
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-10.01
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--
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--
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--
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-6.07
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Inception date: June 30, 2005
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C
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NAV
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13.34
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-5.30
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--
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--
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1.37
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1.37
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Inception date: June 30, 2005
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Past performance is no guarantee of future results. Investment returns and principal will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. All returns assume the reinvestment of all distributions.
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SEC Returns
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As of June 30, 2010
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All returns in percentages
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Class
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1
Year
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5
Year
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10 Years
or Life
of Fund
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A
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SEC (A)
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7.58
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0.83
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0.83
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Inception date: June 30, 2005
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B
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SEC (B)
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9.36
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1.20
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1.20
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Inception date: June 30, 2005
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C
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SEC (C)
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13.34
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1.37
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1.37
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Inception date: June 30, 2005
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(A) SEC Returns reflect performance at the maximum 5.75% sales charge applicable to Class A share investments as of 06/30/2010.
(B) A maximum Contingent Deferred Sales Charge (CDSC) of 5% is applied to shares sold prior to the 6th anniversary of purchase. There are also ongoing 12b-1 service and distribution fees. Class B shares automatically convert to class A shares after 8 years.
(C) Class C shares are subject to ongoing 12b-1 service and distribution fees as well as a maximum Contingent Deferred Sales Charge (CDSC) of 1% if you redeem your shares before the first anniversary of your original purchase.
Past performance is no guarantee of future results. Investment returns and principal will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. All returns assume the reinvestment of all distributions.
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Rank
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Fund
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Percentage of Portfolio
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The Fund's portfolio is actively managed and may change significantly over time.
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Class
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Record
Date
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Ex Div
Date
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Invest
Date
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Payable
Date
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Reinvest
Price
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Dividend
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A
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.18
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.07020
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B
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.11
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.04820
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B2
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.35
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.06100
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B3
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.16
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.06470
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BF
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.17
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.07910
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C
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.11
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.04690
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F
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.17
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.07910
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I
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.22
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.08220
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R2
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.35
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.06100
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R3
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06-29-2010
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06-30-2010
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06-30-2010
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06-30-2010
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13.16
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.06470
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Fund Status
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Open to New Investors
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Dividend Frequency
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Quarterly
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Number of Issues
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13
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Class
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Inception
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Quotron
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CUSIP
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Outstanding
Shares
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A
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June 30, 2005
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LWSAX
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543916613
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26,779,030
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B
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June 30, 2005
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LWSBX
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543916597
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2,383,346
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C
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June 30, 2005
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LWSCX
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543916589
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6,117,908
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F
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September 28, 2007
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LGXFX
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543916266
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84,747
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I
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June 30, 2005
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LWSYX
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543916563
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41,802
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R2
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September 28, 2007
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LGIQX
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543916258
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6,351
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R3
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September 28, 2007
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LGIRX
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543916241
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517,063
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Investment Team
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Porfolio Commentary
As of June 30, 2010
Market Review
Among the primary factors that influenced the market in the second quarter were the European sovereign debt crisis, slowing growth in China, and concerns about the strength of the U.S. economic recovery. In response to these, both domestic and foreign investors shifted away from stocks and toward assets perceived as less risky, such as U.S. Treasuries.1
After the economy posted 3% growth in the first quarter, the expansion showed signs of moderating. Consumer spending, for example, flattened in April after six consecutive months of improvement. In May, retail sales declined 1.7%. Inflation remained subdued, but the unemployment rate stayed between 9.5% and 10.0%. The Federal Reserve kept the fed funds target rate between 0% and 0.25%, explaining that conditions were likely to warrant low rates for an "extended period."
The S&P 500® Index2 reached a 2010 high of 1,217.28 on April 26, but then fell more than 100 points in May, largely due to concerns that the debt crisis in Greece could spread to the rest of Europe and threaten the monetary union. For the quarter, the index lost 11.4%. Declines occurred across all 10 major sectors, but defensive sectors, including telecommunication services and utilities, outperformed the broader market. Value stocks slightly outperformed growth stocks during the period, and small caps outperformed large caps.
Fund Review
The Growth & Income Strategy Fund uses a fund-of-funds approach, which currently divides assets among Lord Abbett High Yield Fund, approximately 19.8% of the Growth & Income Strategy Fund's portfolio; Lord Abbett Classic Stock Fund (formerly Large Cap Core Fund), approximately 14.8%; Lord Abbett International Core Equity Fund, approximately 12.8%; Lord Abbett Fundamental Equity Fund (formerly All Value Fund), approximately 9.7%; Lord Abbett Affiliated Fund, approximately 7.7%; Lord Abbett Capital Structure Fund (formerly America's Value Fund), approximately 8.0%; Lord Abbett International Opportunities Fund, approximately 5.0%; Lord Abbett International Dividend Income Fund, approximately 4.8%; Lord Abbett Value Opportunities Fund, approximately 4.9%; Lord Abbett Growth Opportunities Fund, approximately 3.8%; Lord Abbett Floating Rate Fund, approximately 4.4%; Lord Abbett Stock Appreciation Fund (formerly Large Cap Growth Fund), approximately 2.4%; and Lord Abbett Developing Local Markets Fund, approximately 2.1%. (The Fund's portfolio is actively managed and, therefore, its percentage allocation may change from time to time. Fund allocations may not total 100% due to rounding.) Lord Abbett Growth & Income Strategy Fund returned -9.86%, reflecting the performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, for the three-month period ended June 30, 2010, compared to the 55% Russell 3000® Index3/30% Barclays Capital U.S. Universal Index4/15% MSCI EAFE® Index5 with Gross Dividends, which returned -7.44%. The Fund's average annual total returns, which reflect performance at the maximum 5.75% sales charge applicable to Class A share investments and include the reinvestment of all distributions, as of June 30, 2010, are: 1 year: 7.58% and 5 years/since inception (June 30, 2005): 0.83%. Expense ratio: gross, 1.70%, and net, 1.29%.
Performance data quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data 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 month-end, call Lord Abbett at 888-522-2388 or visit us at www.lordabbett.com.
In the challenging negative market, the Growth & Income Strategy Fund posted negative returns and underperformed its benchmark during the second quarter of 2010. The domestic equity funds held in the portfolio collectively represented a modest underweight. However, the funds in this area underperformed and, hence, were a drag on relative performance.
Overall fixed income was underweight versus the benchmark, while exposure to high yield was at a large overweight. The High Yield Fund underperformed its benchmark and detracted from relative performance.
The exposure to international equities in the Fund was in line with that of the benchmark and the positions detracted modestly.
The 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 may change significantly over time. Sectors may include many industries.
Note: Class A shares purchased with 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. Please see the prospectus for more information on redemptions that may be subject to a CDSC. The CDSC is not reflected in the average annual total returns. If the CDSC was included, returns would have been lower.
1Treasuries are debt securities issued by the U.S. government and secured by its full faith and credit. Income from Treasury securities is exempt from state and local taxes. Although U.S. government securities are guaranteed as to payments of interest and principal, their market prices are not guaranteed and will fluctuate in response to market movements.
2The 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.
3The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
4The Barclays Capital U.S. Universal Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, the non-ERISA portion of the CMBS Index, and the CMBS High-Yield Index. Municipal debt, private placements, and nondollar-denominated issues are excluded from the Universal Index. The only constituent of the index that includes floating-rate debt is the Emerging Markets Index.
5The MSCI EAFE® Index with Gross Dividends is an unmanaged index that reflects the stock markets of 21 countries, including Europe, Australasia, and the Far East, with values expressed in U.S. dollars. The MSCI EAFE Index with 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. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.
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.
Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time.
The net expense ratio takes into account a contractual management fee waiver agreement through March 31, 2011, without which performance would have been lower.
The views and information discussed in this commentary are as of June 30, 2010, are subject to change, and may not reflect the views of the firm as a whole. The views expressed in market commentaries are at a specific point in time, are opinions only, and should not be relied upon as a forecast, research, or investment advice regarding a particular investment or the markets in general. Information discussed should not be considered a recommendation to purchase or sell securities.
A Note about Risk: The Lord Abbett Growth & Income Strategy Fund invests in underlying funds that may engage in a variety of investment strategies involving certain risks; this fund of funds may be subject to those particular risks of the underlying funds in proportion to which the Fund invests in them. Because the Fund will be more heavily invested in equity funds than fixed-income funds, it will be more affected by the risks associated with stocks and other equity investments. Stocks are subject to greater risk and market volatility, while bonds are subject to greater risks of default and interest rate volatility. High-yield securities, sometimes called junk bonds, carry increased risks of price volatility, illiquidity, and the possibility of default in timely payment of interest and principal. International markets may be less liquid and can be more volatile than U.S. markets. Foreign investing, especially in developing countries, carries additional risks, such as currency and market volatility and political and social instability. 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. These factors can affect Fund performance.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Lord Abbett Funds. This and other important information is contained in the Fund's summary prospectus and/or prospectus. To obtain a prospectus or summary prospectus on any Lord Abbett mutual fund, contact your investment professional, Lord Abbett Distributor LLC at (888) 522-2388 or visit us at www.lordabbett.com. Read the prospectus carefully before investing.
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Prospectus
You agree to receive the following
prospectus electronically and to read and agree to its terms before investing or sending money. It contains detailed information about the fund's investment policies, risks, charges and expenses. If you would like a reprinted copy of the prospectus, please contact your local Edward Jones investment representative.
The following prospectus is not an offer to sell, or a solicitation of an offer to buy shares in the fund nor shall any such shares be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction.
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