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Calibrated Dividend Growth Fund

Summary

Summary

What is the Calibrated Dividend Growth Fund?

The Fund seeks to deliver total return by investing primarily in stocks of large U.S. companies that have a history of increasing their dividends.

HIGH-QUALITY UNIVERSE

Companies with consistent dividend growth are often market leaders with stable business models, strong balance sheets, and management teams committed to shareholders.

LOWER RISK PROFILE

Focusing on U.S. companies that have consistently grown their dividends often provides investors with an equity portfolio that has a lower risk profile than the broader market.

GROWTH AND RISING INCOME

A portfolio of consistent dividend growers may provide investors with long-term growth and rising income. Many of these companies have grown their dividends much faster than inflation.

Fund Basicsas of 01/31/2017

Total Net Assets
$2.27 B
Inception Date
12/27/2001
Dividend Frequency
Quarterly
Number of Holdings
93
CUSIP
543913859
Minimum Initial Investment
$1,000+

Expense Ratioas of 01/31/2017

Yield

12-Month Dividend Yield 1 as of 02/21/2017  

  Subsidized3 Un-Subsidized4
w/o sales charge 1.78% 1.57%
w/ sales charge 1.68% 1.48%

30-Day Standardized Yield 2 as of 01/31/2017  

  Subsidized5 Un-Subsidized6
w/o sales charge 1.61% 1.43%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/27/2001
w/o sales charge 0.72% 17.82% 9.68% 11.70% 6.60% 7.59%
Lipper Category Avg. Equity Income Funds 0.98% 19.70% 8.01% 11.03% 5.63% -
S&P 900® 10-Year Dividend Growth Index 0.75% 17.80% 10.68% 13.20% 6.52% -
w/ sales charge -5.06% 11.07% 7.53% 10.39% 5.98% 7.16%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/27/2001
w/o sales charge 15.13% 15.13% 7.83% 12.65% 6.73% 7.58%
Lipper Category Avg. Equity Income Funds 14.21% 14.21% 6.72% 12.55% 5.72% -
S&P 900® 10-Year Dividend Growth Index 15.08% 15.08% 8.92% 13.57% 6.58% -
w/ sales charge 8.48% 8.48% 5.73% 11.32% 6.10% 7.16%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

RELATED CONTENT

Dividend Payers and Growers: Smart Options in a Rising Rate Environment
December 7, 2016

As bond yields begin to compete with equities, we recommend an ecumenical approach to equity income and growth in dividends.

Dividend Growers: A Game-Changer for Income Investors
October 3, 2016

A dividend-growth strategy can compete head-on with fixed-income offerings—and the concept of “yield on cost” helps to explain why.

Dividend Growers: Yield Now—and for the Future
September 21, 2016

A dividend-growth strategy may provide the stable, increasing income stream many investors need.

Holdings as of 01/31/2017View Portfolio

Holding Assets
Chevron Corp. 3.4%
International Business Machines Corp. 2.8%
McDonald's Corp. 2.6%
Walgreen Co. 2.5%
QUALCOMM, Inc. 2.5%
ACE Ltd. 2.4%
Kimberly-Clark Corp. 2.2%
Johnson & Johnson, Inc. 2.2%
3M Co. 2.2%
Coca-Cola Co. 2.2%
% of Total Assets 25.0%

Investment Team

Walter H. Prahl
Walter H. Prahl, Ph.D.

Partner & Director

32 Years of Industry Experience

pavese
Marc Pavese, Ph.D.

Partner & Portfolio Manager

17 Years of Industry Experience

Supported By 35 Investment Professionals and 17 Years Avg. Industry Experience

Your Representative

To contact your representative, enter your zip code and select your channel below.

Performance

Performance

12-Month Dividend Yield 1 as of 02/21/2017  

  Subsidized3 Un-Subsidized4
w/o sales charge 1.78% 1.57%
w/ sales charge 1.68% 1.48%

30-Day Standardized Yield 2 as of 01/31/2017  

  Subsidized5 Un-Subsidized6
w/o sales charge 1.61% 1.43%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/27/2001
w/o sales charge 0.72% 17.82% 9.68% 11.70% 6.60% 7.59%
Lipper Category Avg. Equity Income Funds 0.98% 19.70% 8.01% 11.03% 5.63% -
S&P 900® 10-Year Dividend Growth Index 0.75% 17.80% 10.68% 13.20% 6.52% -
w/ sales charge -5.06% 11.07% 7.53% 10.39% 5.98% 7.16%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/27/2001
w/o sales charge 15.13% 15.13% 7.83% 12.65% 6.73% 7.58%
Lipper Category Avg. Equity Income Funds 14.21% 14.21% 6.72% 12.55% 5.72% -
S&P 900® 10-Year Dividend Growth Index 15.08% 15.08% 8.92% 13.57% 6.58% -
w/ sales charge 8.48% 8.48% 5.73% 11.32% 6.10% 7.16%

Fund Expense Ratio :

Gross 1.06%

Net 0.85%

Best returns

Durations Fund Returns Blended Index
3-Mo 14.05 25.83
1-Yr 36.31 49.77

Worst returns

Durations Fund Returns Blended Index
3-Mo -21.63 -29.65
1-Yr -31.54 -36.1
Year Fund Returns S&P 900® 10-Year Dividend Growth Index
2016 15.13% 15.08%
2015 -2.38% -1.52%
2014 11.56% 14.02%
2013 27.96% 29.93%
2012 13.05% 12.50%
2011 -0.23% 7.14%
2010 14.81% 15.16%
2009 23.21% 13.43%
2008 -27.29% -29.19%
2007 3.03% 1.07%
2006 14.78% -
2005 3.65% -
2004 16.72% -
2003 21.79% -
2002 -7.68% -
2001 0.00% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2017 - - - - 4.36%
2016 6.06% 4.89% 0.76% 2.71% 15.13%
2015 -0.12% -2.21% -5.73% 6.01% -2.38%
2014 1.52% 4.69% -1.43% 6.50% 11.56%
2013 10.47% 1.27% 5.31% 8.61% 27.96%
2012 10.90% -3.82% 5.76% 0.22% 13.05%
2011 5.52% -0.22% -13.93% 10.10% -0.23%
2010 4.78% -8.15% 10.21% 8.24% 14.81%
2009 -5.29% 9.90% 12.47% 5.25% 23.21%
2008 -8.66% -0.42% -9.07% -12.09% -27.29%
2007 3.47% 4.17% -1.18% -3.26% 3.03%
2006 2.32% 0.64% 3.27% 7.93% 14.78%
2005 -1.04% 1.92% 2.63% 0.13% 3.65%
2004 3.53% 1.67% 1.96% 8.76% 16.72%
2003 -6.08% 11.96% 2.98% 12.47% 21.79%
2002 7.39% -5.36% -13.24% 4.70% -7.68%
2001 - - - - 0.00%

Growth of $10,000 as of 01/31/2017

NAV HISTORICAL PRICES

Date Net Asset Value

Portfolio

Portfolio

Portfolio Positioning as of 12/31/2016

  • Chevron Corp., an energy company, remains the Fund’s largest overweight position, relative to its benchmark, the S&P 500® Index, as of December 31, 2016. We believe that Chevron’s focus on responsible capital spending, shareholder-friendly payout policies, and low-cost assets likely will result in a higher valuation going forward.
  • The Fund also is overweight, relative to its benchmark, in QUALCOMM, Inc., a communications and networking company. We believe that QUALCOMM’s attractive valuation, improving fundamentals, and strategic competitive position in the industry can continue to drive performance.
  • The portfolio also is overweight, relative to its benchmark, in Walgreens Boots Alliance, Inc., a drugstore services company.  We believe the company’s announced acquisition of Rite Aid will close and become accretive in 2017, adding to an already undervalued earnings potential.

PORTFOLIO DETAILS as of 01/31/2017

Weighted Average Market Cap.
92.1 B
P/E Ratio
20.8x
P/B Ratio
3.8x
Portfolio Turnover Ratio as of 11/30/2016
69.8%
Number of Holdings
93
Total Net Assets
$2.27 B

Contributors & Detractors as of  12/30/2016

Contributors

Holding Contribution
Chevron Corp. 0.5%
Reynolds American, Inc. 0.3%
CSX Corp. 0.2%
Robert Half International, Inc. 0.2%
McDonald's Corp. 0.2%

Detractors

Holding Contribution
Medtronic, Inc. -0.3%
Kimberly-Clark Corp. -0.2%
International Flavors & Fragrances, Inc. -0.2%
CVS Caremark Corp. -0.2%
McGraw-Hill Cos., Inc. -0.1%

Attribution Analysis 

Calibrated Dividend Growth Fund Benchmark Variance
Sector Avg. Weight Base Return Avg. Weight Base Return Stock Selection Group Weight Total

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

For
YTD Dividends Paidas of 02/21/2017
$0
Dividend Frequency
Quarterly
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
12/29/2016 12/30/2016 12/30/2016 $0.07630 $13.98
09/29/2016 09/30/2016 09/30/2016 $0.06030 $14.62
06/29/2016 06/30/2016 06/30/2016 $0.06210 $14.57
03/30/2016 03/31/2016 03/31/2016 $0.06090 $13.95

Upcoming Dividend Payment Dates

This section lists all anticipated income and Capital Gain distribution dates and any actual distributions are subject to adequacy of earnings and must be approved by the Board of Directors/Trustees. Please note that dates are subject to change.

Record Date Ex-Dividend Date Reinvest & Payable Date
03/30/2017 03/31/2017 03/31/2017
06/29/2017 06/30/2017 06/30/2017
09/28/2017 09/29/2017 09/29/2017
12/28/2017 12/29/2017 12/29/2017

Capital Gains Distributions

For
Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
12/15/2016 12/16/2016 $0.8489 $0.1180 $0.9669 $14.16

Upcoming Capital Gain Distribution

This section lists all anticipated income and Capital Gain distribution dates and any actual distributions are subject to adequacy of earnings and must be approved by the Board of Directors/Trustees. Please note that dates are subject to change.

Record Date Ex-Dividend Date
12/14/2017 12/15/2017

Fees & Expenses

Fees & Expenses

Sales Charge Schedule as of 02/21/2017

  Sales Charge Dealer's Concession Prices at Breakpoint
Less than $50,000 5.75% 5.00% $15.48
$50,000 to $99,999 4.75% 4.00% $15.32
$100,000 to $249,999 3.95% 3.25% $15.19
$250,000 to $499,999 2.75% 2.25% $15.00
$500,000 to $999,999 1.95% 1.75% $14.88
$1,000,000 to $5,000,000 0.00% 1.00% $14.59

EXPENSE RATIOas of 01/31/2017

Fund Review

Fund Review

Market Reviewas of 12/31/2016

The U.S. equity market (as represented by the S&P 500® Index1) finished positive for the period. Donald Trump defeated Hillary Clinton to become the forty-fifth president of the United States and set up the markets for a strong post–election rally to finish off 2016 due to expectations for increased infrastructure spending and broad tax reform under the new administration. At its December meeting, the U.S. Federal Reserve (Fed) raised its benchmark interest rate for the second time in a decade, from a range of 0.25–0.50% to a range of 0.50–0.75%, and indicated that it was targeting three rate hikes in 2017. The unemployment rate edged higher, from 4.6% in November to 4.7% in December, and the U.S. economy added 156,000 jobs, missing an expected increase of 178,000 but showing a 2.9% annualized gain in hourly wages. A positive corporate earnings season also contributed to market performance during the quarter. Seventy-two percent of companies in the S&P 500 reported third-quarter earnings above their mean estimates, but just 55% of companies in the index reported third-quarter sales above their mean estimates.2 According to the third estimate from the Bureau of Economic Analysis,  U.S. real gross domestic product in the third quarter expanded by 3.5%,3 an upward revision from previous estimates, with a rise in nonresidential fixed investment, personal consumption expenditures, and state and local government spending as the primary contributors. The Fed noted that between early October and mid-November 2016, U.S. economic activity, as a whole, continued to expand in most districts around the country. The strong dollar was cited as a headwind to more robust demand for manufactured products in a few districts, due to exports becoming more expensive. Most districts reported higher retail sales, especially for apparel and furniture. In addition, some districts reported a tightening in labor market conditions and slight upward pressure on overall prices.4

International equities (as represented by the MSCI EAFE Index5) declined during the fourth quarter. The key themes during the quarter were the international ramifications from the U.S. election, the Italian constitutional referendum, and the OPEC oil output cut. The November election of Trump drove the Japanese yen sharply lower, resulting in a double-digit rally in Japan’s Nikkei to close out the year. The Mexican peso also has suffered significantly since the election, as Trump repeatedly threatened to build a border wall with Mexico and took aim at multinational exporters and free-trade agreements. In Italy, a referendum on constitutional reforms to make laws easier to pass was voted down, causing Prime Minister Matteo Renzi to submit his resignation. The Italian government also formed a €20 billion facility in December to provide stability to its banking sector after capital levels fell and bad debt rose at several Italian banks. Oil prices rose during the fourth quarter, as the Organization of Petroleum Exporting Countries reached a deal to reduce oil production for the first time since 2008.

The S&P 500 returned 3.82% during the fourth quarter. Of the 11 major sectors, the financials, energy, industrials, materials, and telecommunication services sectors outperformed the broader market. Value stocks6 outperformed growth stocks,7 while large-cap stocks8 lagged small-cap stocks.9

Fund Review as of 12/31/2016

The Fund* underperformed its benchmark, the S&P 500® Index,1 during the fourth quarter.

The Fund focuses on U.S. large companies that consistently have grown their dividends over time, which represents a relatively narrow market segment, compared to its benchmark, the S&P 500. Relative to the S&P 500 benchmark, stock selection and sector weightings drove the Fund’s relative performance during the quarter.

Security selection and an underweight to the financials sector detracted from relative performance, as the financials sector advanced most during the period. The financials sector performed strongly following the election of Donald Trump and on market expectations of reduced financial regulations and higher interest rates and inflation. Within this sector, the Fund’s position in S&P Global Inc., a financial data provider, detracted from performance, on investors’ concerns that higher interest rates would lead to lower levels of bond issuances.

Stock selection in the materials sector also detracted from relative performance during the period. Within this sector, shares of International Flavors & Fragrances Inc., a chemical company, declined. The company reported third-quarter earnings that were below consensus, driven by lower organic sales and worse gross margins.

Security selection and an overweight to the industrials sector contributed to relative performance during the period. The sector benefited from the market’s expectations of higher infrastructure spending and higher economic growth, attributable to the new presidential administration. Within this sector, the Fund’s position in Robert Half International Inc., a business service provider, contributed to performance, as the company’s shares advanced on the market’s view of growing employment.

An underweight to the information technology sector also contributed to relative performance during the period. The sector lagged other economically sensitive sectors following Donald Trump’s election victory and the market’s rotation.

Please refer to www.lordabbett.com under the “Portfolio” tab for a complete list of holdings of the Fund, including the securities discussed above.

Fund Documents

Fund Documents

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Summary Prospectus
Publish Date:11/03/2015
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Statutory Prospectus
Publish Date:11/03/2015
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Prospectus (XBRL)
Publish Date:11/03/2015
SAI
Publish Date:11/03/2015
Annual Report
Publish Date:11/03/2015
Semi-Annual Report
Publish Date:11/03/2015
Fact Sheet
Publish Date:11/03/2015
Flyer
Publish Date:11/03/2015

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Class A  Except as noted below, returns with sales charges reflect a maximum sales charge of 5.75% for equity funds, 2.25% for all tax-free income funds, fixed income funds and multi-asset class funds. 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.

S&P 900® 10-Year Dividend Growth Index is a subset of the S&P 900 Index. The index consists of large and mid-sized companies that have a ten-year history of dividend issuance and growth, and that meet certain other criteria. The Dividend Growth Index represents a considerably narrower investable universe than them S&P 900 Index because of these stringent criteria. The Dividend Growth Index is a custom index that was developed at the request of Lord Abbett. The Dividend Growth Index is the exclusive property of Standard & Poor’s Financial Services LLC. Under a contract with Lord Abbett, S&P administers, maintains, and calculates the Dividend Growth Index. S&P and its affiliates shall have no liability for any errors or omissions in calculating the Index.

Select funds to run a Morningstar Hypothetical Report.

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