|
|
| Use these links to jump to a section further down the page. |
Fund Description
The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of small-company stocks with long-range growth potential.
top of page ^
Fund Advantages
- Small companies that have moved beyond the formative venture capital stage may be poised for a period of dramatic growth.
- A disciplined investment approach based upon primary fundamental research and experienced judgment should enable us to achieve attractive returns.
- A well-diversified portfolio of quality growth stocks with reasonable valuation support should mitigate excessive volatility.
top of page ^
|
Fund Returns
|
|
As of August 31, 2010
|
All returns in percentages
|
| Class |
Last
Quarter
06/30/2010
|
Year
to Date
|
1
Year
|
3
Year
|
5
Year
|
10 Years
or Life
of Fund
|
|
A
|
NAV
|
-7.94
|
-0.38
|
20.37
|
-4.22
|
5.71
|
1.65
|
| |
Inception date: October 10, 1973
|
|
B
|
NAV
|
-8.10
|
-0.79
|
19.50
|
-4.86
|
5.01
|
1.14
|
| |
Inception date: August 01, 1996
|
|
C
|
NAV
|
-8.05
|
-0.71
|
19.57
|
-4.83
|
5.03
|
1.04
|
| |
Inception date: August 01, 1996
|
|
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.
|
top of page ^
|
SEC Returns
|
|
As of June 30, 2010
|
All returns in percentages
|
|
Class
|
|
1
Year
|
5
Year
|
10 Years
or Life
of Fund
|
|
A
|
SEC (A)
|
13.43
|
4.46
|
1.05
|
|
|
Inception date: October 10, 1973
|
|
B
|
SEC (B)
|
15.50
|
4.85
|
1.14
|
|
|
Inception date: August 01, 1996
|
|
C
|
SEC (C)
|
19.57
|
5.03
|
1.04
|
|
|
Inception date: August 01, 1996
|
(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.
|
top of page ^
|
Rank
|
Fund
|
Percentage of Portfolio
|
The Fund's portfolio is actively managed and may change significantly over time.
top of page ^
Sector
(Sector groups include many industries)
|
Percentage of Portfolio
|
|
INFORMATION TECHNOLOGY
|
31.40
|
|
CONSUMER DISCRETIONARY
|
19.60
|
The Fund's portfolio is actively managed and may change significantly over time.
top of page ^
|
Class
|
Record
Date
|
Ex Div
Date
|
Invest
Date
|
Payable
Date
|
Reinvest
Price
|
Dividend
|
|
A
|
02-14-1997
|
02-18-1997
|
02-25-1997
|
03-03-1997
|
|
.00000
|
top of page ^
|
Fund Status
|
Open to New Investors
|
|
Dividend Frequency
|
Annually
|
|
Number of Issues
|
116
|
|
Class
|
Inception
|
Quotron
|
CUSIP
|
Outstanding
Shares
|
|
A
|
October 10, 1973
|
LAGWX
|
544006109
|
34,513,996
|
|
B
|
August 01, 1996
|
LADBX
|
544006208
|
1,440,283
|
|
C
|
August 01, 1996
|
LADCX
|
544006307
|
5,362,612
|
|
F
|
September 28, 2007
|
LADFX
|
544006604
|
5,596,411
|
|
I
|
December 30, 1997
|
LADYX
|
544006505
|
16,005,288
|
|
R2
|
September 28, 2007
|
LADQX
|
544006703
|
210,589
|
|
R3
|
September 28, 2007
|
LADRX
|
544006802
|
3,624,268
|
top of page ^
Investment Team
top of page ^
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 Fund returned -7.94%, reflecting the performance at the net asset value (NAV) of Class A shares, with all distributions reinvested for the quarter ended June 30, 2010. The Fund outperformed its benchmark, the Russell 2000® Growth Index,3 which returned -9.22% for the same period. 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: 13.43%, 5 years: 4.46%, and 10 years: 1.05%. Expense ratio, gross: 1.28%.
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.
The largest contributor to performance was stock selection within the consumer discretionary sector. Emerging brands that offer consumers a compelling value proposition were especially successful. Growth accelerated at Netflix (1.4% portfolio weighting), an online retailer of movie rentals, and at Chipotle Mexican Grill (1.1% portfolio weighting), an operator of quick-serve Mexican restaurants. Stock selection within the health care sector also was a positive. Shares of Ev3 (0.0% portfolio weighting), a medical supplies manufacturer, rose upon the announcement of its acquisition by Covidien. Thoratec (1.9% portfolio weighting), maker of the HeartMate II, benefited after the Food and Drug Administration (FDA) approved its life-saving technology for a much broader patient population. Within the information technology sector, equipment manufacturer Acme Packet (1.3% portfolio weighting) has enjoyed increased demand as telecommunication providers invest in upgrading their Internet protocol (IP) networks.
The industrials sector was the largest detractor from the portfolio. Shares of motor manufacturer Harbin Electric (1.2% portfolio weighting) and valve manufacturer China Valves (0.8% portfolio weighting) fell as anxious investors trimmed holdings in companies with significant emerging market exposure. Within the materials sector, AK Steel (0.0% portfolio weighting) was hurt by weakness in industrial metals pricing. Biotechnology firm InterMune (0.0% portfolio weighting) fell after the FDA requested additional trial information on the firm's lung disease treatment, rejecting a panel's recommendation for approval. Natural gas provider Clean Energy Fuels (0.8% portfolio weighting) was one of the most significant detractors during the quarter, as shares have suffered from the delayed passage of the Natural Gas Act.
Outlook
Although the U.S. business sector is financially strong and market valuations are very attractive—especially given the low level of inflation—investors are troubled by continued fears of an ongoing global credit crisis that may significantly slow U.S. growth. This has prompted us to take a somewhat less aggressive posture within the small cap growth portfolio.
Accordingly, we have taken profits in certain consumer discretionary and energy names, and have reinvested proceeds opportunistically in high quality growth names across a number of sectors. The portfolio's largest overweight is in information technology, where we see a strong secular growth profile and healthy financial conditions. The portfolio maintains an underweight to the health care sector, owing to our concerns regarding the impact of the new healthcare bill.
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.
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.
3The Russell 2000® Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.
The Fund's portfolio is actively managed and, therefore, its holdings and the weightings of a particular issuer or a particular sector as a percentage of portfolio assets may change significantly over time. Sectors may include many industries. The mention of specific portfolio holdings is for information only. It does not constitute a recommendation or an offer for a particular security or fund, nor should it be taken as a solicitation or recommendation to buy or sell securities or other investments.
Note: 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. Please refer to 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 these charges were included performance would be lower. Please refer to the prospectus for more information on redemptions that may be subject to CDSC.
Instances of high double digit returns were achieved primarily during favorable market conditions and may not be sustainable over time.
A Note about Risk: The fund invests primarily in small-cap growth company stocks, which tend to be more volatile and can be less liquid than other types of stocks. Small-cap companies may also have more limited product lines, markets, or financial resources and typically experience a higher risk of failure than large-cap companies. These factors can affect fund performance.
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, or 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.
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 you invest.
top of page ^
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.
top of page ^
|
