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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 01/31/2017

Total Net Assets
$522.36 M
Inception Date
12/31/2003
Dividend Frequency
Annually
Number of Holdings
107
CUSIP
543915649
Minimum Initial Investment
$1,500+

Expense Ratioas of 01/31/2017

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 2.75% 5.93% -2.42% 3.22% 0.03% 4.01%
Lipper Category Avg. International Multi-Cap Core 3.18% 10.17% 0.34% 5.25% 0.92% -
MSCI EAFE® Index - Net Dividends 2.90% 12.03% 0.71% 6.04% 0.97% 5.08%
w/ sales charge -3.16% -0.12% -4.33% 2.00% -0.56% 3.54%

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 -1.83% -1.83% -4.74% 3.92% -0.16% 3.82%
Lipper Category Avg. International Multi-Cap Core 1.51% 1.56% -2.16% 5.85% 0.16% -
MSCI EAFE® Index - Net Dividends 1.00% 1.00% -1.60% 6.53% 0.75% 4.88%
w/ sales charge -7.48% -7.48% -6.60% 2.70% -0.75% 3.35%

Fund Expense Ratio :

Gross 1.29%

Net 1.12%

RELATED CONTENT

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Countryas of 01/31/2017View Portfolio

Country Assets
Japan 27.3%
United Kingdom 16.9%
France 14.6%
Switzerland 7.9%
Germany 7.3%
Netherlands 3.4%
Belgium 2.6%
Spain 2.0%
Australia 1.7%
Republic of Korea 1.7%
Singapore 1.7%
Italy 1.6%
Canada 1.5%
Sweden 1.5%
Austria 1.1%
Finland 1.1%
Denmark 1.0%
Ireland 0.9%
Brazil 0.8%
Portugal 0.7%
India 0.6%
Taiwan 0.6%
New Zealand 0.4%
Hong Kong 0.3%
Region Weighting Fund Change from Previous Quarter
Europe ex-U.K. arrowUp0.8%
Japan arrowDown0.5%
United Kingdom arrowDown0.6%
Asia/Pacific arrowUp1.0%
Americas arrowUp0.9%
Cash arrowDown1.3%

Investment Team

rosenfeld
Didier O. Rosenfeld, CFA

Director, Global Equity

17 Years of Industry Experience

Rick J. Ruvkun
Rick J. Ruvkun

Partner & Portfolio Manager

34 Years of Industry Experience

Supported By 39 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 2.75% 5.93% -2.42% 3.22% 0.03% 4.01%
Lipper Category Avg. International Multi-Cap Core 3.18% 10.17% 0.34% 5.25% 0.92% -
MSCI EAFE® Index - Net Dividends 2.90% 12.03% 0.71% 6.04% 0.97% 5.08%
w/ sales charge -3.16% -0.12% -4.33% 2.00% -0.56% 3.54%

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 -1.83% -1.83% -4.74% 3.92% -0.16% 3.82%
Lipper Category Avg. International Multi-Cap Core 1.51% 1.56% -2.16% 5.85% 0.16% -
MSCI EAFE® Index - Net Dividends 1.00% 1.00% -1.60% 6.53% 0.75% 4.88%
w/ sales charge -7.48% -7.48% -6.60% 2.70% -0.75% 3.35%

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
2016 -1.83% 1.00%
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% -
2005 17.09% -
2004 14.17% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2017 - - - - 3.44%
2016 -2.89% -2.97% 7.09% -2.72% -1.83%
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 01/31/2017

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Countryas of 01/31/2017

Country Assets
Japan 27.3%
United Kingdom 16.9%
France 14.6%
Switzerland 7.9%
Germany 7.3%
Netherlands 3.4%
Belgium 2.6%
Spain 2.0%
Australia 1.7%
Republic of Korea 1.7%
Singapore 1.7%
Italy 1.6%
Canada 1.5%
Sweden 1.5%
Austria 1.1%
Finland 1.1%
Denmark 1.0%
Ireland 0.9%
Brazil 0.8%
Portugal 0.7%
India 0.6%
Taiwan 0.6%
New Zealand 0.4%
Hong Kong 0.3%
Region Weighting Fund Change from Previous Quarter
Europe ex-U.K. arrowUp0.8%
Japan arrowDown0.5%
United Kingdom arrowDown0.6%
Asia/Pacific arrowUp1.0%
Americas arrowUp0.9%
Cash arrowDown1.3%

Portfolio Positioningas of 12/31/2016

  • Over the course of the fourth quarter, we increased the portfolio’s allocation to the financials sector, moving from an equal weight to an overweight position, relative to the portfolio’s benchmark, the MSCI EAFE Index. In addition, we added to the portfolio’s allocation to health care, shifting from an underweight to an overweight, relative to the benchmark.
  • We decreased the portfolio’s allocation to the industrials and the real estate sectors, moving from overweight to underweight positions in both sectors, relative to the portfolio’s benchmark. We also decreased the portfolio’s exposure to the consumer staples and consumer discretionary sectors, moving to further underweight positions in both sectors, relative to the benchmark.
  • Geographically, we increased the portfolio’s allocation to Japan, moving to a further overweight position, relative to the benchmark. We increased the portfolio’s allocation to Europe ex-United Kingdom, moving from an underweight position to an equal-weight position, relative to the benchmark. We decreased exposure to the United Kingdom, moving to an underweight position, relative to the benchmark, from a previous overweight position. The portfolio remains underweight in Asia-Pacific ex-Japan.
  • At quarter-end, emerging markets represented approximately 2.8% of the portfolio.

Portfolio Details as of 01/31/2017

Weighted Average Market Cap.
61.5 B
P/E Ratio
15.3x
P/B Ratio
1.4x
Portfolio Turnover Ratio as of 10/31/2016
163.5%
Number of Holdings
107
Total Net Assets
$522.36 M

Contributors & Detractors as of  12/30/2016

Contributors

Holding Contribution
Royal Dutch Shell plc 0.4%
Mitsubishi UFJ Financial Grp, Inc. 0.3%
Ashtead Group PLC 0.3%
BNP Paribas S.A. 0.2%
Sumitomo Mitsui Financial Group, Inc. 0.2%

Detractors

Holding Contribution
Anheuser-Busch InBev SA/NV -0.5%
Nestle S.A. -0.3%
Newcrest Mining Ltd. -0.3%
Danone -0.3%
Roche Holding Ltd. AG -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 02/24/2017
$0
Dividend Frequency
Annually
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
12/15/2016 12/16/2016 12/16/2016 $0.25860 $11.68

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
12/14/2017 12/15/2017 12/15/2017

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
12/14/2017 12/15/2017

Fees & Expenses

Fees & Expenses

Sales Charge Schedule as of 02/24/2017

  Sales Charge Dealer's Concession Prices at Breakpoint
Less than $50,000 5.75% 5.00% $12.77
$50,000 to $99,999 4.75% 4.00% $12.64
$100,000 to $249,999 3.95% 3.25% $12.54
$250,000 to $499,999 2.75% 2.25% $12.38
$500,000 to $999,999 1.95% 1.75% $12.28
$1,000,000 to $5,000,000 0.00% 1.00% $12.04

Expense Ratioas of 01/31/2017

Fund Review

Fund Review

Market Reviewas of 12/31/2016

Non-U.S. equity markets (as represented by the MSCI EAFE Index1) declined by 0.71% (in U.S. dollar terms) during the fourth quarter of 2016. Moreover, emerging-markets equities (as represented by the MSCI Emerging Markets Index2) trailed developed-markets equities, declining by 4.56% (in U.S. dollar terms).

Within developed markets, a strong U.S. dollar limited or eliminated positive returns across Japan, Europe and the U.K. With regard to sector performance, financials, energy, consumer discretionary, and materials all finished positive during the quarter, while consumer staples, health care, real estate, telecom and utilities fell.  This sector performance is consistent with a period of rising interest rates and inflation expectations; global cyclical shares outperformed stable growth shares.

The key themes during the quarter were the U.S. election, the Italian constitutional referendum, the U.S. Federal Reserve’s (Fed) December rate hike, and the strong U.S. dollar vs. most other currencies. The surprise Trump victory, combined with Republican control of both the House and the Senate, contributed to a strong rally to finish 2016, fueled by expectations for increased infrastructure and defense spending and broad tax reform.

The Trump election 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 approved a €20 billion facility in December to provide stability to its banking sector after capital levels were criticized by the ECB. 

Increased U.S inflation expectations drove bond yields higher after the election, and at its December meeting, the Fed raised the fed funds 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. Most commodity prices, including crude oil, copper and iron ore, experienced 10%+ increases during the quarter. Oil prices benefitted during the quarter, as the Organization of Petroleum Exporting Countries reached a deal to reduce oil production for the first time since 2008.

Fund Reviewas of 12/31/2016

The Fund* underperformed its benchmark, the MSCI EAFE Index—Net Dividends,3 during the fourth quarter.

Stock selection in the consumer discretionary sector adversely affected relative performance during the fourth quarter of 2016. Shares of Publicis Groupe Sa., a global advertisement company, declined after the company reported disappointing third-quarter earnings due to account losses and weakness in the United States. An underweight position in Japanese carmaker Toyota Motor Corp. detracted from relative performance, as its shares increased on a currency-translation benefit from a weakening Japanese yen.

Stock selection in the consumer staples sector was another area of relative underperformance for the Fund. Shares of Anheuser-Busch InBev SA, a brewer, declined due to the company’s exposure to emerging markets such as Brazil, where the currency depreciated during the quarter. Shares of (overweight position) Groupe Danone SA, a dairy and nutrition products maker, also detracted from relative performance, as the stock declined. Groupe Danone SA was hurt by a sales slowdown in Spain and to its Activia product, a significant Yogurt line.

Conversely, stock selection in the industrials sector contributed positively to the Fund’s relative performance. Shares of equipment rental company Ashtead Group plc rose, as the company benefited from increased expectations for infrastructure spending and as fears surrounding oil and gas overcapacity subsided. The Fund also owned Kyushu Railway Co., a Japanese transportation company, which benefited from a weaker yen that is expected to drive growth in demand for railways in the Kyushu region due to increased travel by foreign visitors.

Stock selection in the telecommunications services sector also contributed positively to the Fund’s relative performance. Within the sector, shares of Softbank Group Corp., a Japanese technology and communications holding company rose, as the company’s foreign investments increased in value in yen terms, following the yen weakening. In addition, the company announced that it would be launching the Softbank Vision Fund with outside investors, with up to $100 billion ($25 billion from Softbank) to make technology investments.

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

The investment outlook in early 2017 is markedly different from just one year ago.  Investor sentiment and business confidence improved into late 2016, along with inflation expectations and government bond yields.  The outlook for global economic growth has improved, with the OECD projecting that world real GDP growth will accelerate, to 3.3% in 2017, versus 2.9% in 2016.  Both the developed and emerging worlds are forecast to improve in 2017.  The United States, Canada, and Japan are expected to grow more quickly, while the uncertainty surrounding “Brexit” is expected to moderate growth in the United Kingdom.  Within the emerging world, Brazil and Russia are expected to return to positive growth following two years of recession, as commodity prices have recovered.  China, while still robust, is forecast to grow at a slower pace in 2017.

The U.S. dollar was surprisingly strong versus most other currencies during the fourth quarter of 2016, as investors adjusted their expectations of future inflation and the likely direction of U.S. interest rates. While a strong U.S. dollar reduces overseas investor returns, a weak euro, Japanese yen, and British pound all contribute to increased corporate earnings in all three regions.  The current divergence in global monetary policy is likely to continue, with U.S. interest rates moving higher, and both the European Central Bank and Bank of Japan continuing with their respective quantitative easing programs.

We continue to monitor a number of potential risks over the coming months, including Brexit and its policy impact on the U.K. economy, the anti-establishment surge and its impact on important elections in France, Germany, and the Netherlands, and the potential slowdown in China if fiscal and monetary stimulus is curtailed.

As the market undergoes changes from the new macro environment, we believe that investment opportunities remain abundant. Global growth expectations have improved and valuations are still reasonable. We continue to emphasize undervalued, high-quality companies, cash-flow generation, dividends, and earnings growth as good investment opportunities that should benefit as uncertainty surrounding various macroeconomic issues subside.

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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

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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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