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Fund Description
By investing in the stocks of large, mid and small companies, the Fund seeks to outperform the Russell 3000® Value Index over a full market cycle with lower than benchmark risk.
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Fund Advantages
- The flexibility to pursue value investment opportunities, regardless of company size, can enhance potential returns.
- Quantitative screens, fundamental research and an experienced portfolio management team can identify companies positioned for capital appreciation.
- A value portfolio comprised of individual stocks with attractive reward-to-risk ratios and limited absolute downside risk can deliver superior results.
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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
|
Year
to Date
|
1
Year
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3
Year
|
5
Year
|
10 Years
or Life
of Fund
|
|
A
|
NAV
|
-10.72
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-4.97
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15.85
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-5.38
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2.33
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4.56
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| |
Inception date: July 15, 1996
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B
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NAV
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-10.92
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-5.37
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15.03
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-6.01
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1.65
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4.03
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| |
Inception date: June 05, 1997
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C
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NAV
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-10.79
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-5.29
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15.22
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-5.98
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1.68
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3.92
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| |
Inception date: January 03, 1994
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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
|
|
1
Year
|
5
Year
|
10 Years
or Life
of Fund
|
|
A
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SEC (A)
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9.24
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1.12
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3.94
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Inception date: July 15, 1996
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B
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SEC (B)
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11.03
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1.49
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4.03
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Inception date: June 05, 1997
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C
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SEC (C)
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15.22
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1.68
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3.92
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Inception date: January 03, 1994
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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
|
Percentage of Portfolio
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The Fund's portfolio is actively managed and may change significantly over time.
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Sector
(Sector groups include many industries)
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Percentage of Portfolio
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INFORMATION TECHNOLOGY
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15.70
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CONSUMER DISCRETIONARY
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9.70
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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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11-20-2006
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11-21-2006
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11-21-2006
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11-21-2006
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12.26
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.07700
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C
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11-20-2006
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11-21-2006
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11-21-2006
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11-21-2006
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11.81
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.00260
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I
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11-20-2006
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11-21-2006
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11-21-2006
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11-21-2006
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12.29
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.11930
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Fund Status
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Open to New Investors
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Dividend Frequency
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Annually
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Number of Issues
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108
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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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July 15, 1996
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LDFVX
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543915862
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155,821,240
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B
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June 05, 1997
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GILBX
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543915821
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14,115,232
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C
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January 03, 1994
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GILAX
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543915607
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52,531,398
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F
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September 28, 2007
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LAVFX
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543915565
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19,082,571
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I
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March 31, 2003
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LAVYX
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543915714
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13,120,525
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R2
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September 28, 2007
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LAVQX
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543915557
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196,915
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R3
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September 28, 2007
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LAVRX
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543915540
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4,635,653
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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 Fund returned -10.72%, reflecting the performance at the net asset value (NAV) of Class A shares with all distributions reinvested for the period ended June 30, 2010, compared to the Fund's benchmark, the Russell 3000® Value Index,3 which returned -11.09% 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: 9.24%, 5 years: 1.12%, and 10 years: 3.94%. The expense ratio for Class A shares is 1.19%.
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 www.lordabbett.com.
The portfolio's stock selection within the industrials and materials sectors contributed most to relative performance during the period. Wabco Holdings Inc. (2.0% portfolio weighting), a commercial vehicle parts manufacturer, benefited from a recovery in European truck production levels, as well as higher sales and profits in emerging markets. Shares of cleaning equipment manufacturer Tennant Co. (0.1% portfolio weighting) rose upon strong sales from its eco-friendly cleaning system that turns tap water into a cleanser. Within materials, shares of Barrick Gold Corp. (2.5% portfolio weighting) rose as gold prices reached all-time highs. The portfolio's stock selection within health care also aided relative performance. Shares of hospital operator Universal Health Services Inc. (0.6% portfolio weighting) rose sharply on news that the company would buy Psychiatric Solutions, an operator of mental health facilities.
The portfolio was hurt moderately from our underweight within the defensive utilities, consumer staples, and telecommunication services sectors, which were stronger performers during the quarter. Negative stock selection within the consumer discretionary sector also hampered relative performance. Car manufacturer Ford Motor Co. (1.7% portfolio weighting) saw its shares drop in response to lower sales. Cautious consumers began doubting an economic recovery as reports indicated a double-dip recession and a continuing high unemployment rate.
Outlook
We continue to find attractively valued companies with leading market positions in the products and/or services they sell. Information technology is the portfolio's largest overweight sector relative to the benchmark index, although we have trimmed positions in the software area. Health care also continues to be a large sector overweight, focused primarily in the areas of healthcare providers and services, healthcare equipment and supplies, and biotechnology. The financials sector remains the portfolio's largest underweight, with most of that underweight in insurance, diversified financial services, and real estate investment trusts (REITs). Within financials, we are emphasizing investments in the commercial banks and capital markets areas. The utilities sector continues to be a significant underweight, and we have no representation in the telecommunication services area. We have difficulty finding attractively valued stocks with sufficient upside potential in these two areas.
Prior to July 1, 2009, the Lord Abbett Fundamental Equity Fund was known as Lord Abbett All Value Fund.
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® Value Index measures the performance of those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000® Value or the Russell 2000® Value indexes.
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 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. The CDSC is not reflected in the average annual total returns. Please refer to the prospectus for more information on redemptions that may be subject to a CDSC. If these charges were included performance would be lower. Please refer to the prospectus for more information on redemptions that may be subject to a CDSC.
A Note about Risk: Although the fund invests a significant portion in large-cap company stocks, it also invests in mid cap and small cap company stocks, which tend to be more volatile and less liquid than large cap company stocks. Mid cap and small cap companies typically experience higher risk of failure than large cap companies. 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 you invest.
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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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