Fund Review as of 03/31/2016

The Multi-Asset Global Opportunity Fund returned 0.68%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, for the three-month period ended March 31, 2016, compared to its benchmark, the 40% MSCI EAFE Index with Gross Dividends1/25% Russell 1000® Index2/20% Barclays U.S. Aggregate Bond Index3 /15% BofA Merrill Lynch U.S. High Yield Constrained Index,4 which returned 0.29%.  The Fund’s average annual total returns, which reflect performance at the maximum 2.25% sales charge applicable to Class A share investments and include the reinvestment of all distributions, as of March 31, 2016, are: one year: -10.09%; five years: 1.78%; and 10 years: 3.09%.  Expense ratio, gross: 1.47%; and net: 1.08%.

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.

At the asset-allocation level, the Fund’s holdings in mid-cap equities contributed to performance, as this category outperformed the Fund’s benchmark. Security selection within this group drove relative outperformance during the period. In addition, exposure to emerging market (EM) currencies helped relative performance. After a difficult start to 2016, EM currencies rallied in the second half of the quarter, backed by improving sentiment regarding the Chinese economy, firming commodity prices and supportive central bank policies.

The Fund’s holdings in short duration bonds detracted from relative performance, as the category underperformed the Fund’s benchmark. Short duration fixed income securities were negatively affected by volatility in short-term yields associated with the U.S. Federal Reserve’s (Fed) decision to raise interest rates at the end of the 2015. An underweight exposure to non-U.S. developed market currencies also hurt relative performance, as those currencies generally strengthened against the U.S. dollar during the period.

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

Risk assets stumbled out of the gate in 2016, with U.S. stocks recording their worst-ever start to a calendar year.  Uncertainty regarding China’s currency policies, plummeting oil prices, and the specter of Fed tightening contributed to a growth scare that sent global stocks down 11% by early February.  A reversal in oil prices and renewed monetary accommodation, however, fueled a powerful rebound in equities worldwide, which ended the quarter with only fractional losses. 

Despite unprecedented monetary stimulus, global economic growth remains tepid and inflation continues to fall short of expectations in most countries. This dynamic is leading investors to focus more on the risks of premature reductions in monetary stimulus instead of potential distortions in asset pricing or long-run inflation expectations that could arise from protracted stimulus programs.

While maintaining monetary stimulus may prevent asset prices from falling sharply, positive economic growth surprises and earnings revisions are needed to drive stock prices substantially higher. As the first quarter ended, it was by no means clear that economic and corporate fundamentals had improved enough to encourage an extension of the global risk asset rally. 

Effective November 29, 2013, the Lord Abbett Global Allocation Fund changed its name to Lord Abbett Multi-Asset Global Opportunity Fund.

*Effective July 1, 2008, the Fund adopted its current investment objective of total return and implemented its new investment strategy as part of the Fund’s conversion to a fund-of-funds approach.

The Fund invests principally in the underlying funds. The percentages are based on individual securities owned in one or more of the underlying funds. 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.

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