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International Core Equity Fund

Summary

Summary

What is the International Core Equity Fund?

The Fund seeks to deliver long-term growth of capital by investing primarily in stocks of international companies.

Fund Basicsas of 08/31/2016

Total Net Assets
$481.35 M
Inception Date
12/31/2003
Dividend Frequency
Annually
Number of Holdings
114
CUSIP
543915649
Minimum Initial Investment
$1,500+

Expense Ratioas of 08/31/2016

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2003
w/o sales charge -0.08% 0.28% 0.06% 2.69% 1.12% 4.07%
Lipper Category Avg. International Multi-Cap Core 1.27% 0.13% 1.96% 4.67% 1.70% -
MSCI EAFE® Index - Net Dividends 0.49% -0.12% 2.47% 5.00% 1.71% 4.97%
w/ sales charge -5.83% -5.51% -1.89% 1.47% 0.52% 3.58%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2003
w/o sales charge -5.78% -11.38% -0.63% -0.77% 0.93% 3.63%
Lipper Category Avg. International Multi-Cap Core -3.44% -9.93% 1.41% 1.43% 1.54% -
MSCI EAFE® Index - Net Dividends -4.42% -10.16% 2.06% 1.68% 1.58% 4.62%
w/ sales charge -11.20% -16.49% -2.57% -1.94% 0.33% 3.14%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

RELATED CONTENT

Brexit Strategy: Should U.K. Stay—or Should It Go?
Brexit Strategy: Should U.K. Stay—or Should It Go?
May 20, 2016

If they go, will there be trouble? And if they stay, will it be double? Clashing views.

Countryas of 08/31/2016View Portfolio

Country Assets
Japan 24.8%
United Kingdom 19.6%
France 9.9%
Germany 7.8%
Switzerland 6.6%
Netherlands 5.4%
Australia 2.7%
Belgium 2.5%
Hong Kong 2.2%
Canada 2.1%
Spain 1.9%
Republic of Korea 1.8%
Sweden 1.8%
Austria 1.2%
Denmark 1.2%
Singapore 1.2%
China 1.1%
Finland 1.0%
Italy 0.8%
Israel 0.7%
Taiwan 0.6%
New Zealand 0.4%
Philippines 0.4%
Portugal 0.4%
South Africa 0.4%
Mexico 0.3%
Norway 0.1%
Region Weighting Fund Change from Previous Quarter
Europe ex-U.K. arrowUp0.7%
Japan arrowUp3.6%
United Kingdom arrowDown1.9%
Asia/Pacific arrowDown1.3%
Americas arrowDown0.9%
EMEA 0.0%
Cash arrowDown0.1%

Investment Team

rosenfeld
Didier O. Rosenfeld, CFA

Director, Global Equity

16 Years of Industry Experience

Rick J. Ruvkun
Rick J. Ruvkun

Partner & Portfolio Manager

33 Years of Industry Experience

Supported By 37 Investment Professionals and 19 Years Avg. Industry Experience

YOUR REPRESENTATIVE

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

Performance

Performance

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2003
w/o sales charge -0.08% 0.28% 0.06% 2.69% 1.12% 4.07%
Lipper Category Avg. International Multi-Cap Core 1.27% 0.13% 1.96% 4.67% 1.70% -
MSCI EAFE® Index - Net Dividends 0.49% -0.12% 2.47% 5.00% 1.71% 4.97%
w/ sales charge -5.83% -5.51% -1.89% 1.47% 0.52% 3.58%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2003
w/o sales charge -5.78% -11.38% -0.63% -0.77% 0.93% 3.63%
Lipper Category Avg. International Multi-Cap Core -3.44% -9.93% 1.41% 1.43% 1.54% -
MSCI EAFE® Index - Net Dividends -4.42% -10.16% 2.06% 1.68% 1.58% 4.62%
w/ sales charge -11.20% -16.49% -2.57% -1.94% 0.33% 3.14%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

Best returns

Durations Fund Returns Blended Index
3-Mo 38.58 34.14
1-Yr 55.52 54.58

Worst returns

Durations Fund Returns Blended Index
3-Mo -34.59 -34.49
1-Yr -48.98 -50.22
Year Fund Returns MSCI EAFE® Index - Net Dividends
2015 -2.74% -0.81%
2014 -9.46% -4.90%
2013 22.29% 22.78%
2012 14.64% 17.32%
2011 -12.22% -12.14%
2010 6.51% 7.75%
2009 33.21% 31.78%
2008 -42.63% -43.38%
2007 13.66% 11.17%
2006 23.71% 26.34%
2005 17.09% -
2004 14.17% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2016 -2.89% -2.97% - - 1.40%
2015 3.72% -0.31% -8.88% 3.23% -2.74%
2014 -1.91% 3.90% -6.12% -5.37% -9.46%
2013 3.91% -0.49% 10.69% 6.84% 22.29%
2012 11.15% -7.72% 6.13% 5.31% 14.64%
2011 4.34% 1.73% -20.06% 3.45% -12.22%
2010 0.00% -14.93% 18.26% 5.87% 6.51%
2009 -13.70% 28.44% 20.70% -0.43% 33.21%
2008 -9.96% -1.84% -20.59% -18.26% -42.63%
2007 3.47% 8.15% 3.16% -1.54% 13.66%
2006 9.27% -2.50% 4.49% 11.13% 23.71%
2005 0.26% 0.26% 8.93% 6.93% 17.09%
2004 1.08% -0.97% -0.69% 14.85% 14.17%

Growth of $10,000 as of 08/31/2016

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Countryas of 08/31/2016

Country Assets
Japan 24.8%
United Kingdom 19.6%
France 9.9%
Germany 7.8%
Switzerland 6.6%
Netherlands 5.4%
Australia 2.7%
Belgium 2.5%
Hong Kong 2.2%
Canada 2.1%
Spain 1.9%
Republic of Korea 1.8%
Sweden 1.8%
Austria 1.2%
Denmark 1.2%
Singapore 1.2%
China 1.1%
Finland 1.0%
Italy 0.8%
Israel 0.7%
Taiwan 0.6%
New Zealand 0.4%
Philippines 0.4%
Portugal 0.4%
South Africa 0.4%
Mexico 0.3%
Norway 0.1%
Region Weighting Fund Change from Previous Quarter
Europe ex-U.K. arrowUp0.7%
Japan arrowUp3.6%
United Kingdom arrowDown1.9%
Asia/Pacific arrowDown1.3%
Americas arrowDown0.9%
EMEA 0.0%
Cash arrowDown0.1%

Portfolio Positioningas of 06/30/2016

  • Over the course of the second quarter, we made several notable changes in the portfolio. We decreased the portfolio’s allocation to the consumer discretionary sector, moving from an overweight to an underweight position, relative to the portfolio’s benchmark, the MSCI EAFE Index. In addition, at the start of the quarter, the portfolio held an underweight allocation to consumer staples and health care; later, we added significantly to both sectors, and now the portfolio is neutral to both sectors, relative to the benchmark. 
  • We added to the portfolio’s allocation to telecom services, shifting the portfolio’s weighting in the sector from a neutral to an overweight, relative to the benchmark. We decreased the portfolio’s allocation to information technology, moving from an overweight to an underweight position. We maintained exposure to energy stocks, remaining underweight, as the benchmark’s position slightly increased. The portfolio decreased its allocation to financials, increasing the underweight relative to the benchmark.
  • The portfolio is overweight in industrials, telecom services, and materials, relative to its benchmark, and has underweight positions in consumer discretionary, information technology, energy, and financials. The portfolio is broadly neutral in health care, consumer staples, and utilities.
  • Geographically, we reduced the portfolio’s Europe ex-United Kingdom allocation, increasing the underweight position. We increased exposure to the United Kingdom, moving to an overweight position, relative to the benchmark. We maintained the portfolio’s underweight to Japan, and the portfolio remains underweight in Asia-Pacific ex-Japan.
  • At quarter-end, emerging markets represented approximately 3.6% of the portfolio.

Portfolio Details as of 08/31/2016

Weighted Average Market Cap.
61.6 B
P/E Ratio
15.2x
P/B Ratio
1.5x
Portfolio Turnover Ratio as of 10/30/2015
62.2%
Number of Holdings
114
Total Net Assets
$481.35 M

Contributors & Detractors as of  06/30/2016

Contributors

Holding Contribution
British American Tob. 0.2%
Adidas Ag 0.2%
Fortescue Metals Group 0.2%
Shire plc 0.2%
Link Real Estate Invest 0.2%

Detractors

Holding Contribution
Renault S.A. -0.5%
Lloyds TSB Group -0.4%
Berkeley Grp Hldgs plc -0.4%
Carnival Plc -0.3%
Barratt Developments -0.2%

Attribution Analysis 

International Core Equity 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

Dividend Payments

For
YTD Dividends Paidas of 09/23/2016
$0
Dividend Frequency
Annually
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
12/17/2015 12/18/2015 12/18/2015 $0.16150 $11.95

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
12/15/2016 12/16/2016 12/16/2016

Capital Gains Distributions

For
Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
12/17/2007 12/18/2007 $0.1644 $1.3663 $1.5307 $15.15

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
12/15/2016 12/16/2016

Fees & Expenses

Fees & Expenses

Sales Charge Schedule as of 09/23/2016

  Sales Charge Dealer's Concession Prices at Breakpoint
Less than $50,000 5.75% 5.00% $13.04
$50,000 to $99,999 4.75% 4.00% $12.90
$100,000 to $249,999 3.95% 3.25% $12.80
$250,000 to $499,999 2.75% 2.25% $12.64
$500,000 to $999,999 1.95% 1.75% $12.53
$1,000,000 to $5,000,000 0.00% 1.00% $12.29

Expense Ratioas of 08/31/2016

Fund Review

Fund Review

Market Reviewas of 06/30/2016

Non-U.S. equity market performance was mixed in the second quarter of 2016. The MSCI EAFE Index1 fell by 1.19% (in U.S. dollar terms). Emerging markets stocks (as represented by the MSCI Emerging Markets Index2) advanced modestly during the quarter, rising by 0.66% (in U.S. dollar terms) and outperforming developed markets over the course of the second quarter.

Within developed markets, the United Kingdom outperformed, while France, Japan, and Germany underperformed. With regard to sector performance, energy, health care, materials, and consumer staples finished positive during the quarter, while financials, information technology, and consumer discretionary stocks fell during the period and lagged the broader index.

The key market event of the quarter was the United Kingdom’s vote, on June 23, to leave the European Union (“Brexit”), by a margin of 52% to 48%. This outcome rattled global financial markets, which had largely expected a “remain” vote, and sent the British pound to a 30-year low. In addition, yields on U.K. government bonds fell to historical lows, despite downgrades to the country’s sovereign debt by credit rating agencies, with the 10-year gilt yield dropping, from nearly 1.4% to below 1.0%, in the days following the referendum.

Central banks across the globe continued on monetary easing paths during the period. In June, for example, the European Central Bank formally began its corporate sector purchase program, which targets euro-denominated investment-grade bonds in the eurozone, while the Bank of Japan continued to increase its monetary base by ¥80 trillion annually, and maintained its negative interest rate policy on excess reserves.

Fund Reviewas of 06/30/2016

The Fund* underperformed its benchmark, the MSCI EAFE Index,3 during the second quarter.

Conversely, stock selection in the consumer discretionary sector adversely affected relative performance during the second quarter of 2016. Shares of Renault S.A., the French auto manufacturer, weakened, as the outlook for growth in Europe for high-priced items such as autos soured after the “Brexit” vote.  Similarly, two U.K. real estate development firms held in the Fund did poorly after the referendum vote, as it was generally perceived to be highly negative to domestic-oriented U.K. stocks.

The financial sector was another area of relative underperformance for the Fund.  The UK Bank Lloyds TSB Group declined over the quarter for many of the same reasons the U.K. real estate stocks fell.   There was a prevailing view that banks such as Lloyds would face much slower growth if the United Kingdom were to leave the EU.  Shares of Spanish Bank BBVA also fell over the quarter, after the company reported a weak first quarter due to slow growth in Spain and in the United States.   The Fund also was hurt by its underweight position in the energy sector.  The sector was propelled by higher prices over the quarter, and the Fund was modestly underweight energy shares, thus hurting relative performance.

Stock selection in the materials sector contributed positively to the Fund’s relative performance.  Shares of Australian mining company Fortescue Metals Group rebounded strongly on a solid first quarter financial report and higher realized iron ore prices.  The Fund also owned two Australian gold mining stocks that were supported by the rally in gold prices, and contributed positively over the quarter. 

Security selection in the healthcare sector was positive and supported returns. During the quarter, Shire plc, a U.K. pharmaceutical manufacturer, completed the previously announced purchase of Baxalta in the United States.  The earnings enhancing acquisition should help long-term growth and help to diversify Shire’s business.  This additional growth stood in contrast to Shire’s generally low valuation level, and helped support interest in the shares.  

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

Outlook

As we enter the second half of the year, the outlook is clouded by two opposing forces.  The slowdown witnessed earlier in the year appears to have receded and, in general, global economic indicators have firmed up recently.  Yet the political and economic uncertainty of Great Britain leaving the European Union raises the risk that the economic improvements seen thus far could recede and usher in a period of greater financial market volatility with it.

One positive result of this uncertainty is that it will likely keep central banks around the world dovish for a longer period than previously thought.  In some regions of the world, the uncertainty likely will continue to pressure interest rates into even further negative territory, as assets seek a safe home.  Such unprecedentedly low interest rates already have begun to support capital markets, as dovish policy prescriptions get priced in.  Discussions of adding some fiscal stimulus into the mix in order to counteract a potential slowdown is also bolstering optimism that the world’s major economies can withstand whatever ultimate uncertainty the British exit process entails.  The fact of the matter is that outside of the EU and Britain, the overall economic effects will be relatively moderate for global economic growth.

Despite the fact that capital markets dislike uncertainty, we find reasons to stay the course.  In general, market valuations are not excessive, and corporations are in good shape when looking at balance sheets and their ability to grow earnings and pay dividends.   In the low-growth world we are clearly in, we continue to emphasize high quality companies, cash flow generation, dividends, and earnings growth as a way to get paid, while we wait for global growth to reaccelerate as uncertainty fades.

Fund Documents

Fund Documents

Download fund documents & literature, create email subscriptions, and place direct mail order

0Documents selected
Order
Summary Prospectus
Publish Date:11/03/2015
n/a
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

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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.

The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The MSCI EAFE Index with Net Dividends approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.

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