Lord Abbett Investment Trust

 

PROSPECTUS

APRIL 1, 2024

                     
                       
     

CLASS

TICKER

 

CLASS

TICKER

 

CLASS

TICKER

 
 

LORD ABBETT

 

A 

LABFX

 

I 

LABYX

 

R4 

BLASX

 
 

MULTI-ASSET BALANCED

 

C 

BFLAX

 

P 

LABPX

 

R5 

BLATX

 
 

OPPORTUNITY FUND

 

F 

BLAFX

 

R2 

BLAQX

 

R6 

BLAVX

 
     

F3 

LOBFX

 

R3 

BLARX

       
                       
 

LORD ABBETT

 

A 

ISFAX

 

I 

ISFYX

 

R4 

LIXSX

 
 

MULTI-ASSET INCOME

 

C 

ISFCX

 

P 

N/A

 

R5 

LIXTX

 
 

FUND

 

F 

LIGFX

 

R2 

LIGQX

 

R6 

LIXVX

 
     

F3 

ISFOX

 

R3 

LIXRX

       
                       
 

LORD ABBETT

 

A 

LACFX

 

I 

LCFYX

 

R4 

LCFSX

 
 

CONVERTIBLE FUND

 

C 

LACCX

 

P 

LCFPX

 

R5 

LCFTX

 
     

F 

LBFFX

 

R2 

LBCQX

 

R6 

LCFVX

 
     

F3 

LOCFX

 

R3 

LCFRX

       
                       
 

LORD ABBETT

 

A 

LCRAX

 

I 

LCRYX

 

R4 

LCRSX

 
 

CORE FIXED INCOME

 

C 

LCRCX

 

P 

N/A

 

R5 

LCRTX

 
 

FUND

 

F 

LCRFX

 

R2 

LCRQX

 

R6 

LCRVX

 
     

F3 

LCROX

 

R3 

LCRRX

       
                       
 

LORD ABBETT

 

A 

LAPLX

 

I 

LAPIX

 

R5 

LAPVX

 
 

CORE PLUS BOND FUND

 

C 

LAPCX

 

R2 

N/A

 

R6 

LAPWX

 
     

F 

LPLFX

 

R3 

LAPQX

       
     

F3 

LOPLX

 

R4 

LAPUX

       
                       
                       
 

LORD ABBETT

 

A 

LFRAX

 

I 

LFRIX

 

R5 

LRRTX

 
 

FLOATING RATE FUND

 

C 

LARCX

 

R2 

LFRRX

 

R6 

LRRVX

 
     

F 

LFRFX

 

R3 

LRRRX

       
     

F3 

LFROX

 

R4 

LRRKX

       
                       
 

LORD ABBETT

 

A 

LHYAX

 

I 

LAHYX

 

R4 

LHYSX

 
 

HIGH YIELD FUND

 

C 

LHYCX

 

P 

N/A

 

R5 

LHYTX

 
     

F 

LHYFX

 

R2 

LHYQX

 

R6 

LHYVX

 
     

F3 

LHYOX

 

R3 

LHYRX

       
                       
 

LORD ABBETT

 

A 

LAGVX

 

I 

LAUYX

 

R4 

LAUKX

 
 

INCOME FUND

 

C 

LAUSX

 

P 

N/A

 

R5 

LAUTX

 
     

F 

LAUFX

 

R2 

LAUQX

 

R6 

LAUVX

 
     

F3 

LOGVX

 

R3 

LAURX

       
                       
                     
 

LORD ABBETT

 

A 

LIFAX

 

I 

LIFIX

 

R5 

LIFTX

 
 

INFLATION FOCUSED

 

C 

LIFCX

 

R2 

LIFQX

 

R6 

LIFVX

 
 

FUND

 

F 

LIFFX

 

R3 

LIFRX

       
     

F3 

LIFOX

 

R4 

LIFKX

       
                       
                     
                       
 

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved of these securities or determined whether this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

 
 

INVESTMENT PRODUCTS: NOT FDIC INSURED–NO BANK GUARANTEE–MAY LOSE VALUE

 

.

   
         

                           
         
                       
     

CLASS

TICKER

 

CLASS

TICKER

 

CLASS

TICKER

 
                       
 

LORD ABBETT

 

A 

LDCAX

 

I 

LSCIX

 

R5 

LSCUX

 
 

SHORT DURATION

 

C 

LDCCX

 

R2 

N/A

 

R6 

LDCVX

 
 

CORE BOND FUND

 

F 

LDCFX

 

R3 

LDCRX

       
     

F3 

LSCOX

 

R4 

LSCSX

       
                       
 

LORD ABBETT

 

A 

LALDX

 

I 

LLDYX

 

R4 

LDLKX

 
 

SHORT DURATION

 

C 

LDLAX

 

P 

N/A

 

R5 

LDLTX

 
 

INCOME FUND

 

F 

LDLFX

 

R2 

LDLQX

 

R6 

LDLVX

 
     

F3 

LOLDX

 

R3 

LDLRX

       
                       
 

LORD ABBETT

 

A 

LTRAX

 

I 

LTRYX

 

R4 

LTRKX

 
 

TOTAL RETURN FUND

 

C 

LTRCX

 

P 

LTRPX

 

R5 

LTRTX

 
     

F 

LTRFX

 

R2 

LTRQX

 

R6 

LTRHX

 
     

F3 

LTROX

 

R3 

LTRRX

       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                     
                       
                       
                       
                       
                       
       
         

 

TABLE OF CONTENTS

 

FUND SUMMARY

   

Multi-Asset Balanced Opportunity Fund

3

Multi-Asset Income Fund

17

Convertible Fund

31

Core Fixed Income Fund

42

Core Plus Bond Fund

54

Floating Rate Fund

67

High Yield Fund

79

Income Fund

92

Inflation Focused Fund

104

Short Duration Core Bond Fund

118

Short Duration Income Fund

130

Total Return Fund

142

Tax Information

154

Payments to Broker-Dealers and Other Financial Intermediaries

154

 

MORE INFORMATION ABOUT THE FUNDS

   

Investment Objectives

155

Principal Investment Strategies

156

Principal Risks

203

Additional Information About Investment and Operational Risks

272

Disclosure of Portfolio Holdings

277

Management and Organization of the Funds

277

 

INFORMATION FOR MANAGING YOUR FUND ACCOUNT

   

Choosing a Share Class

283

Sales Charges

291

Sales Charge Reductions and Waivers

293

Financial Intermediary Compensation

297

Purchases

302

Exchanges

304

Redemptions

305

Account Services and Policies

308

Distributions and Taxes

316

 

FINANCIAL INFORMATION

   

Multi-Asset Balanced Opportunity Fund

320

Multi-Asset Income Fund

324

Convertible Fund

328

Core Fixed Income Fund

332

Core Plus Bond Fund

336

Floating Rate Fund

340

High Yield Fund

344

Income Fund

348

Inflation Focused Fund

352

Short Duration Core Bond Fund

356


   

Short Duration Income Fund

360

Total Return Fund

364

 

APPENDIX

   

Appendix A: Intermediary-Specific Sales
Charge Reductions and Waivers

A- 1

Appendix B: Underlying Funds of the Funds-of-Funds

B- 1


 

FUND SUMMARY

Multi-Asset Balanced Opportunity Fund

INVESTMENT OBJECTIVE

The Fund’s investment objective is to seek current income and capital growth.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts if you and certain members of your family invest, or agree to invest in the future, at least $100,000 in the Lord Abbett Family of Funds. More information about these and other discounts is available from your financial intermediary and in “Sales Charge Reductions and Waivers” on page 293 of the prospectus, Appendix A to the prospectus, titled “Intermediary-Specific Sales Charge Reductions and Waivers,” and “Purchases, Redemptions, Pricing, and Payments to Dealers” on page 9-1 of Part II of the statement of additional information (“SAI”).

           

Shareholder Fees(1) 

(Fees paid directly from your investment)

 

Class

 

A

C

F, F3, I, P, R2, R3, R4, R5, and R6

 

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)

2.25%

None

None

 

Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption
proceeds, whichever is lower)

None(2)

1.00%(3)

None

 

               

Annual Fund Operating Expenses

 

(Expenses that you pay each year as a percentage of the value of your investment)

 

Class

A

 C

F

F3

 I

 P

 

Management Fees

0.10%

0.10%

0.10%

0.10%

0.10%

0.10%

 

Distribution and Service (12b-1) Fees

0.25%

1.00%

0.10%

None

None

0.45%

 

Other Expenses

0.16%

0.16%

0.16%

0.09%

0.16%

0.16%

 

Acquired Fund Fees and Expenses(4)

0.65%

0.65%

0.65%

0.65%

0.65%

0.65%

 

Total Annual Fund Operating Expenses

1.16%

1.91%

1.01%

0.84%

0.91%

1.36%

 

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

3


             

Annual Fund Operating Expenses (continued)

 

(Expenses that you pay each year as a percentage of the value of your investment)

 

Class

R2

R3

R4

R5

R6

 

Management Fees

0.10%

0.10%

0.10%

0.10%

0.10%

 

Distribution and Service (12b-1) Fees

0.60%

0.50%

0.25%

None

None

 

Other Expenses

0.16%

0.16%

0.16%

0.16%

0.09%

 

Acquired Fund Fees and Expenses(4)

0.65%

0.65%

0.65%

0.65%

0.65%

 

Total Annual Fund Operating Expenses

1.51%

1.41%

1.16%

0.91%

0.84%

 

   

(1)

A shareholder transacting in share classes without a front-end sales charge may be required to pay a commission to its financial intermediary. Please contact your financial intermediary for more information about whether such a commission may apply to your transaction.

(2)

A contingent deferred sales charge (“CDSC”) of 1.00% may be assessed on certain Class A shares purchased or acquired without a sales charge if they are redeemed before the first day of the month in which the one-year anniversary of the purchase falls.

(3)

A CDSC of 1.00% may be assessed on Class C shares if they are redeemed before the first anniversary of their purchase.

(4)

Includes interest expense from certain underlying affiliated funds of 0.07%. Excluding interest expense of the applicable underlying affiliated funds, Total Annual Fund Operating Expenses are 1.09%, 1.84%, 0.94%, 0.77%, 0.84%, 1.29%, 1.44%, 1.34%, 1.09%, 0.84% and 0.77% for Class A, Class C, Class F, Class F3, Class I, Class P, Class R2, Class R3, Class R4, Class R5 and Class R6, respectively.

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Class C shares automatically convert to Class A shares after eight years. The expense example for Class C shares for the ten-year period reflects the conversion to Class A shares. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

4


                                   

Class

If Shares Are Redeemed

If Shares Are Not Redeemed

 

 

1 Year

3 Years

5 Years

10 Years

1 Year

3 Years

5 Years

10 Years

 

Class A Shares

$

341

$

585

$

849

$

1,602

$

341

$

585

$

849

$

1,602

 

Class C Shares

$

294

$

600

$

1,032

$

2,038

$

194

$

600

$

1,032

$

2,038

 

Class F Shares

$

103

$

322

$

558

$

1,236

$

103

$

322

$

558

$

1,236

 

Class F3 Shares

$

86

$

268

$

466

$

1,037

$

86

$

268

$

466

$

1,037

 

Class I Shares

$

93

$

290

$

504

$

1,120

$

93

$

290

$

504

$

1,120

 

Class P Shares

$

138

$

431

$

745

$

1,635

$

138

$

431

$

745

$

1,635

 

Class R2 Shares

$

154

$

477

$

824

$

1,802

$

154

$

477

$

824

$

1,802

 

Class R3 Shares

$

144

$

446

$

771

$

1,691

$

144

$

446

$

771

$

1,691

 

Class R4 Shares

$

118

$

368

$

638

$

1,409

$

118

$

368

$

638

$

1,409

 

Class R5 Shares

$

93

$

290

$

504

$

1,120

$

93

$

290

$

504

$

1,120

 

Class R6 Shares

$

86

$

268

$

466

$

1,037

$

86

$

268

$

466

$

1,037

 

Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 24% of the average value of its portfolio.

PRINCIPAL INVESTMENT STRATEGIES

The Fund is a “fund-of-funds” that invests in affiliated investment companies (the “underlying funds”) managed by Lord, Abbett & Co. LLC (“Lord Abbett”). Under normal conditions, through the underlying funds, the Fund indirectly invests in U.S. equity securities across all market capitalization ranges and all investment styles, fixed income securities of various types, and select foreign (including emerging market) securities. The Fund tactically allocates its assets among these asset classes in response to market conditions or to seek to capitalize on investment opportunities. The Fund uses a “blend” strategy to gain investment exposure to both growth and value stocks, or to stocks with characteristics of both.

Equity securities in which an underlying fund may invest include common stocks, preferred stocks, equity interests in trusts (including real estate investment trusts (“REITs”) and privately offered trusts), partnerships, joint ventures, limited liability companies and vehicles with similar legal structures, and other instruments with similar characteristics.

Currently, the underlying funds invest in fixed income securities consisting principally of high-yield debt securities, investment grade debt securities, mortgage-related and other asset-backed securities, municipal bonds, U.S. Government securities, convertible securities, bank loans, inflation-linked investments, and cash equivalents. Certain of the underlying funds may invest up to 100% of their assets in

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

5


fixed income securities that are below investment grade (commonly referred to as “high-yield” or “junk” bonds).

Securities of foreign companies include emerging market companies, American Depositary Receipts (“ADRs”), and other similar depositary receipts, and may be traded on a U.S. or non-U.S. securities exchange and may be denominated in non-U.S. currencies.

In addition to investing in the underlying funds, the Fund may invest directly in any type of derivative as part of its investment strategies or for risk management purposes. Currently, the Fund may invest in derivatives consisting principally of futures, forwards, options, and swaps. To the extent that the Fund invests directly in derivatives, the Fund intends to do so primarily for non-hedging purposes. The market value of the Fund’s directly held positions in derivatives, determined at the time of the most recent position established, will not exceed 50% of the Fund’s net assets. The Fund currently expects, however, that under normal conditions the market value of such instruments, determined at the time of the most recent position established, will not exceed 35% of the Fund’s net assets. These percentage limitations exclude Fund assets indirectly invested in derivatives through the underlying funds.

The Fund’s portfolio management team tactically allocates the Fund’s assets among the underlying funds based on market conditions, interest rate changes, and regulatory developments, among other considerations. The investment team may also consider the risks and return potential presented by environmental, social, and governance (“ESG”) factors in investment decisions. The Fund may sell or reallocate its investments among the underlying funds for a variety of reasons, such as to secure gains, limit losses, redeploy assets, increase cash, or satisfy redemption requests, among others. The Fund may deviate from the investment strategy described above for temporary defensive purposes. The Fund may miss certain investment opportunities if defensive strategies are used and thus may not achieve its investment objective.

PRINCIPAL RISKS

As with any investment in a mutual fund, investing in the Fund involves risk, including the risk that you may receive little or no return on your investment. When you redeem your shares, they may be worth more or less than what you paid for them, which means that you may lose a portion or all of the money you invested in the Fund. The principal risks of investing in the Fund also are the principal risks of investing in the underlying funds. These risks, which could adversely affect the Fund’s performance, include:

· Underlying Funds Risk: The assets of the Fund are invested principally in the underlying funds. As a result, the investment performance of the Fund is directly related to the investment performance of the underlying funds in which it invests. The Fund is exposed to the same risks as the underlying funds in direct proportion to the allocation of its assets among the underlying funds. To

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

6


the extent that the Fund invests a significant portion of its assets in a single underlying fund it may be more susceptible to risks associated with that fund and its investments. It is possible that the holdings of underlying funds may contain securities of the same issuers, thereby increasing the Fund’s exposure to such issuers. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the Fund’s shareholders will indirectly bear their proportionate share of the underlying funds’ fees and expenses, as well as their proportionate share of the Fund’s fees and expenses.

· Affiliated Underlying Funds Risk: The Fund invests principally in underlying funds advised by Lord Abbett, which presents certain conflicts of interest. Generally, Lord Abbett will receive more revenue from investing in the underlying funds than it would if it invested in unaffiliated funds. In addition, Lord Abbett is subject to conflicts of interest in allocating portfolio assets among the various underlying funds because the fees payable to Lord Abbett by underlying funds differ. Lord Abbett may have an incentive to select underlying funds that will result in the greatest net management fee revenue to Lord Abbett and its affiliates, even if that results in increased expenses for the Fund. In addition, the Fund’s investments in affiliated underlying funds may be beneficial to Lord Abbett in managing the underlying funds, by helping the underlying funds achieve economies of scale or by enhancing cash flows to the underlying funds. If the Fund invests in an underlying fund with higher expenses, the Fund’s performance would be lower than if the Fund had invested in an underlying fund with comparable performance but lower expenses.

· New Underlying Funds Risk: The Fund may invest in underlying funds that are recently organized. There can be no assurance that a new underlying fund will reach or maintain a sufficient asset size to effectively implement its investment strategy. In addition, until the Fund achieves sufficient scale, the Fund may experience proportionally higher expenses than it would experience if it invested in a fund with a larger asset base.

· Portfolio Management Risk: If the strategies used and investments selected by the Fund’s portfolio management team fail to produce the intended result, the Fund may suffer losses or underperform other funds with the same investment objective or strategies, even in a favorable market.

· Market Risk: The market values of securities will fluctuate, sometimes sharply and unpredictably, based on overall economic conditions, governmental actions or intervention, market disruptions caused by trade disputes or other factors, political developments, and other factors. Prices of equity securities tend to rise and fall more dramatically than those of debt securities.

· Equity Securities Risk: Equity securities, as well as equity-like securities such as convertible debt securities, may experience significant volatility. Such securities may fall sharply in response to adverse events affecting overall

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

7


markets, a particular industry or sector, or an individual company’s financial condition.

· Industry and Sector Risk: Although the Fund does not employ an industry or sector focus, its exposure to specific industries or sectors will increase from time to time based on the portfolio management team’s perception of investment opportunities. If the Fund is overweight in a single industry or sector relative to its benchmark index, the Fund will face an increased risk that the value of its portfolio will decrease because of events disproportionately affecting that industry or sector. Furthermore, investments in particular industries or sectors may be more volatile than the broader market as a whole.

· Large Company Risk: Larger, more established companies may be less able to respond quickly to certain market developments. In addition, larger companies may have slower rates of growth as compared to successful, but less well-established, smaller companies.

· Mid-Sized and Small Company Risk: Investments in mid-sized and small companies may involve greater risks than investments in larger, more established companies. Securities of mid-sized and small companies tend to be more sensitive to changing economic, market, and industry conditions and tend to be more volatile and less liquid than equity securities of larger companies, especially over the short term. The securities of mid-sized and small companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the ability to sell these securities in the future.

· Blend Style Risk: Growth stocks typically trade at higher multiples of current earnings than other stocks. Growth stocks often are more sensitive to market fluctuations than other securities because their market prices are highly sensitive to future earnings expectations. At times when it appears that these expectations may not be met, prices of growth stocks typically fall. Growth stocks may be more volatile than securities of slower-growing issuers. The prices of value stocks may lag the stock market for long periods of time if the market fails to recognize the company’s intrinsic worth. Value investing also is subject to the risk that a company judged to be undervalued may actually be appropriately priced or even overpriced. A portfolio that combines growth and value styles may diversify these risks and lower its volatility, but there is no assurance this strategy will achieve that result.

· Fixed Income Securities Risk: The Fund is subject to the general risks and considerations associated with investing in debt securities, including the risk that issuers will fail to make timely payments of principal or interest or default altogether. Lower-rated securities in which the Fund may invest may be more volatile and may decline more in price in response to negative issuer developments or general economic news than higher rated securities. In addition, as interest rates rise, the Fund’s investments typically will lose value.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

8


· High Yield Securities Risk: High yield securities (commonly referred to as “junk” bonds) typically pay a higher yield than investment grade securities, but may have greater price fluctuations and have a higher risk of default than investment grade securities. The market for high yield securities may be less liquid due to such factors as interest rate sensitivity, negative perceptions of the junk bond markets generally, and less secondary market liquidity. This may make such securities more difficult to sell at an acceptable price, especially during periods of financial distress, increased market volatility, or significant market decline.

· Loan Risk: Investments in floating or adjustable rate loans are subject to increased credit and liquidity risks. Loan prices also may be adversely affected by supply-demand imbalances caused by conditions in the loan market or related markets. Below investment grade loans, like high-yield debt securities, or junk bonds, usually are more credit sensitive than interest rate sensitive, although the value of these instruments may be affected by interest rate swings in the overall fixed income market. Loans may be subject to structural subordination and may be subordinated to other obligations of the borrower or its subsidiaries.

· Government Securities Risk: The Fund invests in securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities (such as the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), or the Federal Home Loan Mortgage Corporation (“Freddie Mac”)). Unlike Ginnie Mae securities, securities issued or guaranteed by U.S. Government-related organizations, such as Fannie Mae and Freddie Mac, are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government would provide financial support.

· Municipal Securities Risk: Municipal securities are subject to the same risks affecting fixed income securities in general. In addition, the prices of municipal securities may be adversely affected by legislative or political changes, tax rulings, judicial action, changes in market and economic conditions, and the fiscal condition of the municipal issuer, including an insolvent municipality filing for bankruptcy. The Fund may be more sensitive to these events and conditions if it invests a substantial portion of its assets in the municipal securities of similar projects (such as those relating to education, health care, housing, transportation, and utilities), in particular types of municipal securities (such as general obligation bonds, private activity bonds, and special tax bonds), or in the securities of issuers located within a single state, municipality, territory (such as Puerto Rico), or geographic area. The market for municipal securities generally is less liquid than other securities markets, which may make it more difficult for the Fund to sell its municipal securities. Nongovernmental users of facilities financed by tax-exempt revenue bonds (e.g., companies in the electric utility and health care industries) may have difficulty making payments on their

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

9


obligations in the event of an economic downturn. This would negatively affect the valuation of municipal securities issued by such facilities.

· Mortgage-Related and Other Asset-Backed Securities Risk: Mortgage-related securities, including commercial mortgage-backed securities (“CMBS”) and other privately issued mortgage-related securities, and other asset-backed securities may be particularly sensitive to changes in prevailing interest rates and economic conditions, including delinquencies and defaults. The prices of mortgage-related and other asset-backed securities, depending on their structure and the rate of payments, can be volatile. They are subject to prepayment risk (higher than expected prepayment rates of mortgage obligations due to a fall in market interest rates) and extension risk (lower than expected prepayment rates of mortgage obligations due to a rise in market interest rates). These risks increase the Fund’s overall interest rate risk. Some mortgage-related securities receive government or private support, but there is no assurance that such support will remain in place.

· Inflation-Linked Investments Risk: Unlike traditional fixed income securities, the principal and interest payments of inflation-linked investments are adjusted periodically based on the inflation rate. The value of the Fund’s inflation-linked investments may be vulnerable to changes in expectations of inflation or interest rates and there is no guarantee that the Fund’s use of these instruments will be successful.

· Inverse Floaters Risk: The Fund, through the underlying funds, may invest in inverse floaters. An inverse floater is a type of municipal bond derivative instrument with a floating or variable interest rate that moves in the opposite direction of the interest rate on another security, normally the floating rate note. The value and income of an inverse floater generally is more volatile than the value and income of a fixed rate municipal bond. The value and income of an inverse floater generally fall when interest rates rise. Inverse floaters have varying degrees of liquidity, and the market for these securities is relatively volatile. An underlying fund’s net cash investment in inverse floaters is significantly less than the value of the underlying municipal bonds. This creates leverage, which increases as the value of the inverse floaters becomes greater in proportion to the value of the underlying municipal bonds.

· Credit Risk: Debt securities are subject to the risk that the issuer or guarantor of a security may not make interest and principal payments as they become due or may default altogether. In addition, if the market perceives a deterioration in the creditworthiness of an issuer, the value and liquidity of securities issued by that issuer may decline. To the extent that the Fund holds below investment grade securities, these risks may be heightened. Insured debt securities have the credit risk of the insurer in addition to the credit risk of the underlying investment being insured.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

10


· Interest Rate Risk: As interest rates rise, prices of bonds (including tax-exempt bonds) generally fall, typically causing the Fund’s investments to lose value. Additionally, rising interest rates or lack of market participants may lead to decreased liquidity in fixed income markets. Interest rate changes generally have a more pronounced effect on the market value of fixed-rate instruments, such as corporate bonds, than they have on floating rate instruments, and typically have a greater effect on the price of fixed income securities with longer durations. A wide variety of market factors can cause interest rates to rise, including central bank monetary policy, rising inflation, and changes in general economic conditions.

· Foreign and Emerging Market Company Risk: Investments in foreign companies and in U.S. companies with economic ties to foreign markets generally involve special risks. These companies may be more vulnerable to economic, political, and social instability and subject to less government supervision, lack of transparency, inadequate regulatory and accounting standards, and foreign taxes. Foreign company securities also include American Depositary Receipts (“ADRs”), which may be less liquid than the underlying shares in their primary trading market. Foreign securities also may subject the Fund’s investments to changes in currency exchange rates. Emerging market securities generally are more volatile than other foreign securities, and are subject to greater liquidity, regulatory, and political risks. Investments in emerging markets may be considered speculative and generally are riskier than investments in more developed markets. Emerging markets are more likely to experience hyperinflation and currency devaluations. Securities of emerging market companies may have far lower trading volumes and less liquidity than securities of issuers in developed markets. Companies with economic ties to emerging markets may be susceptible to the same risks as companies organized in emerging markets.

· Foreign Currency Risk: Investments in securities that are denominated or receiving revenues in foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedged positions, that the U.S. dollar will decline in value relative to the currency being hedged. Foreign currency exchange rates may fluctuate significantly over short periods of time.

· Sovereign Debt Risk: Sovereign debt securities are subject to the risk that the relevant sovereign government or governmental entity may delay or refuse to pay interest or repay principal on its debt. There is no legal process for collecting sovereign debt that is not repaid, nor are there bankruptcy proceedings through which all or part of the unpaid sovereign debt may be collected.

· Convertible Securities Risk: Convertible securities are subject to the risks affecting both equity and fixed income securities, including market, credit, liquidity, and interest rate risk. Convertible securities tend to be more volatile

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

11


than other fixed income securities, and the markets for convertible securities may be less liquid than markets for common stocks or bonds. A significant portion of convertible securities have below investment grade credit ratings and are subject to increased credit and liquidity risks.

· Derivatives Risk: The risks associated with derivatives may be different from and greater than the risks associated with directly investing in securities and other investments. Derivatives may increase the Fund’s volatility and reduce its returns. Derivatives may not perform as expected and the Fund may not realize the intended benefits. Whether the Fund’s use of derivatives is successful may depend on, among other things, the portfolio managers’ ability to correctly forecast market movements, company and industry valuation levels and trends, changes in foreign exchange and interest rates, and other factors. If the portfolio managers incorrectly forecast these and other factors, the Fund’s performance could suffer. In addition, given their complexity, derivatives are subject to the risk that improper or misunderstood documentation may expose the Fund to losses.

· Liquidity/Redemption Risk: The Fund may lose money when selling securities at inopportune times to fulfill shareholder redemption requests. The risk of loss may increase depending on the size and frequency of redemption requests, whether the redemption requests occur in times of overall market turmoil or declining prices, and whether the securities the Fund intends to sell have decreased in value or are illiquid. The Fund may be less able to sell illiquid securities at its desired time or price. It may be more difficult for the Fund to value its investments in illiquid securities than more liquid securities.

An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. For more information on the principal risks of the Fund, please see the “More Information About the Funds – Principal Risks” section in the prospectus.

PERFORMANCE

The bar chart and table below provide some indication of the risks of investing in the Fund by illustrating the variability of the Fund’s returns. Each assumes reinvestment of dividends and distributions. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

The bar chart shows changes in the performance of the Fund’s Class A shares from calendar year to calendar year. This chart does not reflect the sales charge applicable to Class A shares. If the sales charge were reflected, returns would be lower. Performance for the Fund’s other share classes will vary due to the different expenses each class bears. Updated performance information is available at www.lordabbett.com or by calling 888-522-2388.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

12


 

Bar Chart (per calendar year) - Class A Shares

PerformanceBarChartData(14:5.85,15:-5.25,16:11.57,17:10.49,18:-8.76,19:20.16,20:19.37,21:10.52,22:-16.17,23:11.9)

Best Quarter2nd Q 2020+18.41%    Worst Quarter1st Q 2020-16.88%

The table below shows how the Fund’s average annual total returns compare to the returns of a securities market index with investment characteristics similar to those of the Fund and a performance average of similar mutual funds, as well as to a broad-based securities market index.1 The Fund’s average annual total returns include applicable sales charges.

The after-tax returns of Class A shares included in the table below are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. In some cases, the return after taxes on distributions and sale of Fund shares may exceed the return before taxes due to a tax benefit resulting from realized losses on a sale of Fund shares at the end of the period that is used to offset other gains. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-advantaged arrangements such as 401(k) plans or Individual Retirement Accounts (“IRAs”). After-tax returns for other share classes are not shown in the table and will vary from those shown for Class A shares.

1The Fund has adopted the S&P 500® Index as its broad-based securities market index.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

13


               

Average Annual Total Returns

 

(for the periods ended December 31, 2023)

 

Class

1 Year

5 Years

10 Years

Life of Class

Inception
Date for
Performance

 

Class A Shares

 

 

 

 

 

 

 

Before Taxes

9.39%

7.77%

5.07%

-

 

 

 

After Taxes on Distributions

8.45%

5.78%

3.06%

-

 

 

 

After Taxes on Distributions and Sale of Fund Shares

5.63%

5.62%

3.35%

-

 

 

Class C Shares(1)

10.12%

7.45%

4.53%

-

 

 

Class F Shares

12.16%

8.43%

5.48%

-

 

 

Class F3 Shares

12.24%

8.63%

-

6.06%

4/4/2017

 

Class I Shares

12.18%

8.53%

5.58%

-

 

 

Class P Shares

11.71%

8.06%

5.10%

-

 

 

Class R2 Shares

11.54%

7.90%

4.95%

-

 

 

Class R3 Shares

11.66%

8.01%

5.06%

-

 

 

Class R4 Shares

12.00%

8.28%

-

5.40%

6/30/2015

 

Class R5 Shares

12.25%

8.55%

-

5.66%

6/30/2015

 

Class R6 Shares

12.36%

8.64%

-

5.72%

6/30/2015

 

Index

 

 

 

 

 

 

Russell 1000® Index

26.53%

15.52%

11.80%

12.14%

6/30/2015

 

(reflects no deduction for fees, expenses, or taxes)

12.79%

4/4/2017

 

S&P 500® Index

26.29%

15.69%

12.03%

12.42%

6/30/2015

 

(reflects no deduction for fees, expenses, or taxes)

12.99%

4/4/2017

 

Morningstar Average

 

 

 

 

 

 

Morningstar Moderate Allocation Category Average

13.79%

8.08%

5.97%

6.11%

6/30/2015

 

(reflects no deduction for sales charges or taxes)

6.48%

4/4/2017

 

 

   

(1)

Class C shares convert to Class A shares eight years after purchase. Class C share performance does not reflect the impact of such conversion to Class A shares.

MANAGEMENT

Investment Adviser. The Fund’s investment adviser is Lord Abbett.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

14


Portfolio Managers.

   

Portfolio Managers/Title

Member of
the Portfolio
Management
Team Since

Giulio Martini, Partner and Director of Strategic Asset Allocation

2015

Robert A. Lee, Partner and Co-Head of Taxable Fixed Income

2016

Steven F. Rocco, Partner and Co-Head of Taxable Fixed Income

2022

Jahiz Barlas, Portfolio Manager

2023

PURCHASE AND SALE OF FUND SHARES

The minimum initial and additional amounts shown below vary depending on the class of shares you buy and the type of account. Certain financial intermediaries may impose different restrictions than those described below. For Class I shares, the minimum investment shown below applies to certain types of institutional investors, but does not apply to registered investment advisers or retirement and benefit plans otherwise eligible to invest in Class I shares. Class P shares are closed to substantially all new investors. See “Choosing a Share Class – Investment Minimums” in the prospectus for more information.

       

Investment Minimums — Initial/Additional Investments

Class

A(1) and C

F, F3, P, R2, R3, R4, R5, and R6

I

General and IRAs without Invest-A-Matic Investments

Initial: $1,500
Additional: No minimum

N/A

Initial: $1 million
Additional: No minimum

Invest-A-Matic Accounts(2)

Initial: $250
Additional: $50

N/A

N/A

IRAs, SIMPLE and SEP Accounts with Payroll Deductions

No minimum

N/A

N/A

Fee-Based Advisory Programs and Retirement and Benefit Plans

No minimum

No minimum

No minimum

(1) There is no investment minimum for Class A shares purchased by investors maintaining an account with a financial intermediary that has entered into an agreement with Lord Abbett Distributor LLC (“Lord Abbett Distributor”) to offer Class A shares through a load-waived network or platform, which may or may not charge transaction fees.

(2) There is no minimum initial investment for Invest-A-Matic accounts held directly with the Fund, including IRAs.

You may sell (redeem) shares through your securities broker, financial professional or financial intermediary on any business day the Fund calculates its net asset value (“NAV”). If you have direct account access privileges, you may redeem your shares by contacting the Fund in writing at Lord Abbett Funds Service Center, P.O. Box 534489, Pittsburgh, PA 15253-4489 (regular mail) or Attention: 534489, 500 Ross Street 154-0520, Pittsburgh, PA 15262 (overnight mail), by calling 888-522-2388 or by accessing your account online at www.lordabbett.com.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

15


OTHER IMPORTANT INFORMATION REGARDING FUND SHARES

For important information about taxes and payments to broker-dealers and other financial intermediaries, please turn to the “Tax Information” and “Payments to Broker-Dealers and Other Financial Intermediaries” sections of the prospectus.

PROSPECTUS – MULTI-ASSET BALANCED OPPORTUNITY FUND

16


 

FUND SUMMARY

Multi-Asset Income Fund

INVESTMENT OBJECTIVE

The Fund’s investment objective is to seek a high level of current income.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts if you and certain members of your family invest, or agree to invest in the future, at least $100,000 in the Lord Abbett Family of Funds. More information about these and other discounts is available from your financial intermediary and in “Sales Charge Reductions and Waivers” on page 293 of the prospectus, Appendix A to the prospectus, titled “Intermediary-Specific Sales Charge Reductions and Waivers,” and “Purchases, Redemptions, Pricing, and Payments to Dealers” on page 9-1 of Part II of the statement of additional information (“SAI”).

           

Shareholder Fees(1) 

(Fees paid directly from your investment)

 

Class

 

A

C

F, F3, I, P, R2, R3, R4, R5, and R6

 

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)

2.25%

None

None

 

Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption
proceeds, whichever is lower)

None(2)

1.00%(3)

None

 

               

Annual Fund Operating Expenses

 

(Expenses that you pay each year as a percentage of the value of your investment)

 

Class

A

 C

F

F3

 I

 P

 

Management Fees

0.10%

0.10%

0.10%

0.10%

0.10%

0.10%

 

Distribution and Service (12b-1) Fees

0.25%

1.00%

0.10%

None

None

0.45%

 

Other Expenses

0.16%

0.16%

0.16%

0.10%

0.16%

0.16%

 

Acquired Fund Fees and Expenses(4)

0.59%

0.59%

0.59%

0.59%

0.59%

0.59%

 

Total Annual Fund Operating Expenses

1.10%

1.85%

0.95%

0.79%

0.85%

1.30%

 

PROSPECTUS – MULTI-ASSET INCOME FUND

17


             

Annual Fund Operating Expenses (continued)

 

(Expenses that you pay each year as a percentage of the value of your investment)

 

Class

R2

R3

R4

R5

R6

 

Management Fees

0.10%

0.10%

0.10%

0.10%

0.10%

 

Distribution and Service (12b-1) Fees

0.60%

0.50%

0.25%

None

None

 

Other Expenses

0.16%

0.16%

0.16%

0.16%

0.10%

 

Acquired Fund Fees and Expenses(4)

0.59%

0.59%

0.59%

0.59%

0.59%

 

Total Annual Fund Operating Expenses

1.45%

1.35%

1.10%

0.85%

0.79%

 

   

(1)

A shareholder transacting in share classes without a front-end sales charge may be required to pay a commission to its financial intermediary. Please contact your financial intermediary for more information about whether such a commission may apply to your transaction.

(2)

A contingent deferred sales charge (“CDSC”) of 1.00% may be assessed on certain Class A shares purchased or acquired without a sales charge if they are redeemed before the first day of the month in which the one-year anniversary of the purchase falls.

(3)

A CDSC of 1.00% may be assessed on Class C shares if they are redeemed before the first anniversary of their purchase.

(4)

Includes interest expense from certain underlying affiliated funds of 0.07%. Excluding interest expense of the applicable underlying affiliated funds, Total Annual Fund Operating Expenses are 1.03%, 1.78%, 0.88%, 0.72%, 0.78%, 1.23%, 1.38%, 1.28%, 1.03%, 0.78% and 0.72% for Class A, Class C, Class F, Class F3, Class I, Class P, Class R2, Class R3, Class R4, Class R5 and Class R6, respectively.

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Class C shares automatically convert to Class A shares after eight years. The expense example for Class C shares for the ten-year period reflects the conversion to Class A shares. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

PROSPECTUS – MULTI-ASSET INCOME FUND

18


                                   

Class

If Shares Are Redeemed

If Shares Are Not Redeemed

 

 

1 Year

3 Years

5 Years

10 Years

1 Year

3 Years

5 Years

10 Years

 

Class A Shares

$

335

$

567

$

818

$

1,535

$

335

$

567

$

818

$

1,535

 

Class C Shares

$

288

$

582

$

1,001

$

1,973

$

188

$

582

$

1,001

$

1,973

 

Class F Shares

$

97

$

303

$

525

$

1,166

$

97

$

303

$

525

$

1,166

 

Class F3 Shares

$

81

$

252

$

439

$

978

$

81

$

252

$

439

$

978

 

Class I Shares

$

87

$

271

$

471

$

1,049

$

87

$

271

$

471

$

1,049

 

Class P Shares

$

132

$

412

$

713

$

1,568

$

132

$

412

$

713

$

1,568

 

Class R2 Shares

$

148

$

459

$

792

$

1,735

$

148

$

459

$

792

$

1,735

 

Class R3 Shares

$

137

$

428

$

739

$

1,624

$

137

$

428

$

739

$

1,624

 

Class R4 Shares

$

112

$

350

$

606

$

1,340

$

112

$

350

$

606

$

1,340

 

Class R5 Shares

$

87

$

271

$

471

$

1,049

$

87

$

271

$

471

$

1,049

 

Class R6 Shares

$

81

$

252

$

439

$

978

$

81

$

252

$

439

$

978

 

Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 19% of the average value of its portfolio.

PRINCIPAL INVESTMENT STRATEGIES

The Fund is a “fund-of-funds” that invests in affiliated investment companies (the “underlying funds”) managed by Lord, Abbett & Co. LLC (“Lord Abbett”). Under normal conditions, through the underlying funds, the Fund indirectly invests in fixed income securities of various types, select U.S. equity securities across all market capitalization ranges and all investment styles, and foreign (including emerging market) securities. The Fund tactically allocates its assets among these asset classes in response to market conditions or to seek to capitalize on investment opportunities. The Fund uses a “blend” strategy to gain investment exposure to both growth and value stocks, or to stocks with characteristics of both.

Currently, the underlying funds invest in fixed income securities consisting principally of high-yield debt securities, investment grade debt securities, mortgage-related and other asset-backed securities, municipal bonds, U.S. Government securities, convertible securities, bank loans, inflation-linked investments, and cash equivalents. Certain of the underlying funds may invest up to 100% of their assets in fixed income securities that are below investment grade (commonly referred to as “high-yield” or “junk” bonds).

Equity securities in which an underlying fund may invest include common stocks, preferred stocks, equity interests in trusts (including real estate investment trusts (“REITs”) and privately offered trusts), partnerships, joint ventures, limited liability

PROSPECTUS – MULTI-ASSET INCOME FUND

19


companies and vehicles with similar legal structures, and other instruments with similar characteristics.

Securities of foreign companies include emerging market companies, American Depositary Receipts (“ADRs”), and other similar depositary receipts, and may be traded on a U.S. or non-U.S. securities exchange and may be denominated in non-U.S. currencies.

In addition to investing in the underlying funds, the Fund may invest directly in any type of derivative as part of its investment strategies or for risk management purposes. Currently, the Fund may invest in derivatives consisting principally of futures, forwards, options, and swaps. To the extent that the Fund invests directly in derivatives, the Fund intends to do so primarily for non-hedging purposes. The market value of the Fund’s directly held positions in derivatives, determined at the time of the most recent position established, will not exceed 50% of the Fund’s net assets. The Fund currently expects, however, that under normal conditions the market value of such instruments, determined at the time of the most recent position established, will not exceed 35% of the Fund’s net assets. These percentage limitations exclude Fund assets indirectly invested in derivatives through the underlying funds.

The Fund’s portfolio management team tactically allocates the Fund’s assets among the underlying funds based on market conditions, interest rate changes, and regulatory developments, among other considerations. The investment team may also consider the risks and return potential presented by environmental, social, and governance (“ESG”) factors in investment decisions. The Fund may sell or reallocate its investments among the underlying funds for a variety of reasons, such as to secure gains, limit losses, redeploy assets, increase cash, or satisfy redemption requests, among other reasons. The Fund may deviate from the investment strategy described above for temporary defensive purposes. The Fund may miss certain investment opportunities if defensive strategies are used and thus may not achieve its investment objective.

PRINCIPAL RISKS

As with any investment in a mutual fund, investing in the Fund involves risk, including the risk that you may receive little or no return on your investment. When you redeem your shares, they may be worth more or less than what you paid for them, which means that you may lose a portion or all of the money you invested in the Fund. The principal risks of investing in the Fund also are the principal risks of investing in the underlying funds. These risks, which could adversely affect the Fund’s performance, include:

· Underlying Funds Risk: The assets of the Fund are invested principally in the underlying funds. As a result, the investment performance of the Fund is directly related to the investment performance of the underlying funds in which it invests. The Fund is exposed to the same risks as the underlying funds in direct proportion to the allocation of its assets among the underlying funds. To

PROSPECTUS – MULTI-ASSET INCOME FUND

20


the extent that the Fund invests a significant portion of its assets in a single underlying fund it may be more susceptible to risks associated with that fund and its investments. It is possible that the holdings of underlying funds may contain securities of the same issuers, thereby increasing the Fund’s exposure to such issuers. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the Fund’s shareholders will indirectly bear their proportionate share of the underlying funds’ fees and expenses, as well as their proportionate share of the Fund’s fees and expenses.

· Affiliated Underlying Funds Risk: The Fund invests principally in underlying funds advised by Lord Abbett, which presents certain conflicts of interest. Generally, Lord Abbett will receive more revenue from investing in the underlying funds than it would if it invested in unaffiliated funds. In addition, Lord Abbett is subject to conflicts of interest in allocating portfolio assets among the various underlying funds because the fees payable to Lord Abbett by underlying funds differ. Lord Abbett may have an incentive to select underlying funds that will result in the greatest net management fee revenue to Lord Abbett and its affiliates, even if that results in increased expenses for the Fund. In addition, the Fund’s investments in affiliated underlying funds may be beneficial to Lord Abbett in managing the underlying funds, by helping the underlying funds achieve economies of scale or by enhancing cash flows to the underlying funds. If the Fund invests in an underlying fund with higher expenses, the Fund’s performance would be lower than if the Fund had invested in an underlying fund with comparable performance but lower expenses.

· New Underlying Funds Risk: The Fund may invest in underlying funds that are recently organized. There can be no assurance that a new underlying fund will reach or maintain a sufficient asset size to effectively implement its investment strategy. In addition, until the Fund achieves sufficient scale, the Fund may experience proportionally higher expenses than it would experience if it invested in a fund with a larger asset base.

· Portfolio Management Risk: If the strategies used and investments selected by the Fund’s portfolio management team fail to produce the intended result, the Fund may suffer losses or underperform other funds with the same investment objective or strategies, even in a favorable market.

· Market Risk: The market values of securities will fluctuate, sometimes sharply and unpredictably, based on overall economic conditions, governmental actions or intervention, market disruptions caused by trade disputes or other factors, political developments, and other factors. Prices of equity securities tend to rise and fall more dramatically than those of debt securities.

· Fixed Income Securities Risk: The Fund is subject to the general risks and considerations associated with investing in debt securities, including the risk that issuers will fail to make timely payments of principal or interest or default altogether. Lower-rated securities in which the Fund may invest may be more

PROSPECTUS – MULTI-ASSET INCOME FUND

21


volatile and may decline more in price in response to negative issuer developments or general economic news than higher rated securities. In addition, as interest rates rise, the Fund’s investments typically will lose value.

· High Yield Securities Risk: High yield securities (commonly referred to as “junk” bonds) typically pay a higher yield than investment grade securities, but may have greater price fluctuations and have a higher risk of default than investment grade securities. The market for high yield securities may be less liquid due to such factors as interest rate sensitivity, negative perceptions of the junk bond markets generally, and less secondary market liquidity. This may make such securities more difficult to sell at an acceptable price, especially during periods of financial distress, increased market volatility, or significant market decline.

· Loan Risk: Investments in floating or adjustable rate loans are subject to increased credit and liquidity risks. Loan prices also may be adversely affected by supply-demand imbalances caused by conditions in the loan market or related markets. Below investment grade loans, like high-yield debt securities, or junk bonds, usually are more credit sensitive than interest rate sensitive, although the value of these instruments may be affected by interest rate swings in the overall fixed income market. Loans may be subject to structural subordination and may be subordinated to other obligations of the borrower or its subsidiaries.

· Government Securities Risk: The Fund invests in securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities (such as the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), or the Federal Home Loan Mortgage Corporation (“Freddie Mac”)). Unlike Ginnie Mae securities, securities issued or guaranteed by U.S. Government-related organizations, such as Fannie Mae and Freddie Mac, are not backed by the full faith and credit of the U.S. Government and no assurance can be given that the U.S. Government would provide financial support.

· Municipal Securities Risk: Municipal securities are subject to the same risks affecting fixed income securities in general. In addition, the prices of municipal securities may be adversely affected by legislative or political changes, tax rulings, judicial action, changes in market and economic conditions, and the fiscal condition of the municipal issuer, including an insolvent municipality filing for bankruptcy. The Fund may be more sensitive to these events and conditions if it invests a substantial portion of its assets in the municipal securities of similar projects (such as those relating to education, health care, housing, transportation, and utilities), in particular types of municipal securities (such as general obligation bonds, private activity bonds, and special tax bonds), or in the securities of issuers located within a single state, municipality, territory (such as Puerto Rico), or geographic area. The market for municipal securities generally is less liquid than other securities markets, which may make it more

PROSPECTUS – MULTI-ASSET INCOME FUND

22


difficult for the Fund to sell its municipal securities. Nongovernmental users of facilities financed by tax-exempt revenue bonds (e.g., companies in the electric utility and health care industries) may have difficulty making payments on their obligations in the event of an economic downturn. This would negatively affect the valuation of municipal securities issued by such facilities.

· Mortgage-Related and Other Asset-Backed Securities Risk: Mortgage-related securities, including commercial mortgage-backed securities (“CMBS”) and other privately issued mortgage-related securities, and other asset-backed securities may be particularly sensitive to changes in prevailing interest rates and economic conditions, including delinquencies and defaults. The prices of mortgage-related and other asset-backed securities, depending on their structure and the rate of payments, can be volatile. They are subject to prepayment risk (higher than expected prepayment rates of mortgage obligations due to a fall in market interest rates) and extension risk (lower than expected prepayment rates of mortgage obligations due to a rise in market interest rates). These risks increase the Fund’s overall interest rate risk. Some mortgage-related securities receive government or private support, but there is no assurance that such support will remain in place.

· Inflation-Linked Investments Risk: Unlike traditional fixed income securities, the principal and interest payments of inflation-linked investments are adjusted periodically based on the inflation rate. The value of the Fund’s inflation-linked investments may be vulnerable to changes in expectations of inflation or interest rates and there is no guarantee that the Fund’s use of these instruments will be successful.

· Inverse Floaters Risk: The Fund, through the underlying funds, may invest in inverse floaters. An inverse floater is a type of municipal bond derivative instrument with a floating or variable interest rate that moves in the opposite direction of the interest rate on another security, normally the floating rate note. The value and income of an inverse floater generally is more volatile than the value and income of a fixed rate municipal bond. The value and income of an inverse floater generally fall when interest rates rise. Inverse floaters have varying degrees of liquidity, and the market for these securities is relatively volatile. An underlying fund’s net cash investment in inverse floaters is significantly less than the value of the underlying municipal bonds. This creates leverage, which increases as the value of the inverse floaters becomes greater in proportion to the value of the underlying municipal bonds.

· Credit Risk: Debt securities are subject to the risk that the issuer or guarantor of a security may not make interest and principal payments as they become due or may default altogether. In addition, if the market perceives a deterioration in the creditworthiness of an issuer, the value and liquidity of securities issued by that issuer may decline. To the extent that the Fund holds below investment grade securities, these risks may be heightened. Insured debt securities have the

PROSPECTUS – MULTI-ASSET INCOME FUND

23


credit risk of the insurer in addition to the credit risk of the underlying investment being insured.

· Interest Rate Risk: As interest rates rise, prices of bonds (including tax-exempt bonds) generally fall, typically causing the Fund’s investments to lose value. Additionally, rising interest rates or lack of market participants may lead to decreased liquidity in fixed income markets. Interest rate changes generally have a more pronounced effect on the market value of fixed-rate instruments, such as corporate bonds, than they have on floating rate instruments, and typically have a greater effect on the price of fixed income securities with longer durations. A wide variety of market factors can cause interest rates to rise, including central bank monetary policy, rising inflation, and changes in general economic conditions.

· Equity Securities Risk: Equity securities, as well as equity-like securities such as convertible debt securities, may experience significant volatility. Such securities may fall sharply in response to adverse events affecting overall markets, a particular industry or sector, or an individual company’s financial condition.

· Industry and Sector Risk: Although the Fund does not employ an industry or sector focus, its exposure to specific industries or sectors will increase from time to time based on the portfolio management team’s perception of investment opportunities. If the Fund is overweight in a single industry or sector relative to its benchmark index, the Fund will face an increased risk that the value of its portfolio will decrease because of events disproportionately affecting that industry or sector. Furthermore, investments in particular industries or sectors may be more volatile than the broader market as a whole.

· Large Company Risk: Larger, more established companies may be less able to respond quickly to certain market developments. In addition, larger companies may have slower rates of growth as compared to successful, but less well-established, smaller companies.

· Mid-Sized and Small Company Risk: Investments in mid-sized and small companies may involve greater risks than investments in larger, more established companies. Securities of mid-sized and small companies tend to be more sensitive to changing economic, market, and industry conditions and tend to be more volatile and less liquid than equity securities of larger companies, especially over the short term. The securities of mid-sized and small companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the ability to sell these securities in the future.

· Blend Style Risk: Growth stocks typically trade at higher multiples of current earnings than other stocks. Growth stocks often are more sensitive to market fluctuations than other securities because their market prices are highly sensitive to future earnings expectations. At times when it appears that these expectations

PROSPECTUS – MULTI-ASSET INCOME FUND

24


may not be met, prices of growth stocks typically fall. Growth stocks may be more volatile than securities of slower-growing issuers. The prices of value stocks may lag the stock market for long periods of time if the market fails to recognize the company’s intrinsic worth. Value investing also is subject to the risk that a company judged to be undervalued may actually be appropriately priced or even overpriced. A portfolio that combines growth and value styles may diversify these risks and lower its volatility, but there is no assurance this strategy will achieve that result.

· Foreign and Emerging Market Company Risk: Investments in foreign companies and in U.S. companies with economic ties to foreign markets generally involve special risks. These companies may be more vulnerable to economic, political, and social instability and subject to less government supervision, lack of transparency, inadequate regulatory and accounting standards, and foreign taxes. Foreign company securities also include American Depositary Receipts (“ADRs”), which may be less liquid than the underlying shares in their primary trading market. Foreign securities also may subject the Fund’s investments to changes in currency exchange rates. Emerging market securities generally are more volatile than other foreign securities, and are subject to greater liquidity, regulatory, and political risks. Investments in emerging markets may be considered speculative and generally are riskier than investments in more developed markets. Emerging markets are more likely to experience hyperinflation and currency devaluations. Securities of emerging market companies may have far lower trading volumes and less liquidity than securities of issuers in developed markets. Companies with economic ties to emerging markets may be susceptible to the same risks as companies organized in emerging markets.

· Foreign Currency Risk: Investments in securities that are denominated or receiving revenues in foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedged positions, that the U.S. dollar will decline in value relative to the currency being hedged. Foreign currency exchange rates may fluctuate significantly over short periods of time.

· Sovereign Debt Risk: Sovereign debt securities are subject to the risk that the relevant sovereign government or governmental entity may delay or refuse to pay interest or repay principal on its debt. There is no legal process for collecting sovereign debt that is not repaid, nor are there bankruptcy proceedings through which all or part of the unpaid sovereign debt may be collected.

· Convertible Securities Risk: Convertible securities are subject to the risks affecting both equity and fixed income securities, including market, credit, liquidity, and interest rate risk. Convertible securities tend to be more volatile than other fixed income securities, and the markets for convertible securities may be less liquid than markets for common stocks or bonds. A significant

PROSPECTUS – MULTI-ASSET INCOME FUND

25


portion of convertible securities have below investment grade credit ratings and are subject to increased credit and liquidity risks.

· Derivatives Risk: The risks associated with derivatives may be different from and greater than the risks associated with directly investing in securities and other investments. Derivatives may increase the Fund’s volatility and reduce its returns. Derivatives may not perform as expected and the Fund may not realize the intended benefits. Whether the Fund’s use of derivatives is successful may depend on, among other things, the portfolio managers’ ability to correctly forecast market movements, company and industry valuation levels and trends, changes in foreign exchange and interest rates, and other factors. If the portfolio managers incorrectly forecast these and other factors, the Fund’s performance could suffer. In addition, given their complexity, derivatives are subject to the risk that improper or misunderstood documentation may expose the Fund to losses.

· Liquidity/Redemption Risk: The Fund may lose money when selling securities at inopportune times to fulfill shareholder redemption requests. The risk of loss may increase depending on the size and frequency of redemption requests, whether the redemption requests occur in times of overall market turmoil or declining prices, and whether the securities the Fund intends to sell have decreased in value or are illiquid. The Fund may be less able to sell illiquid securities at its desired time or price. It may be more difficult for the Fund to value its investments in illiquid securities than more liquid securities.

An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. For more information on the principal risks of the Fund, please see the “More Information About the Funds – Principal Risks” section in the prospectus.

PERFORMANCE

The bar chart and table below provide some indication of the risks of investing in the Fund by illustrating the variability of the Fund’s returns. Each assumes reinvestment of dividends and distributions. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. No performance is shown for Class P shares because the Fund has no Class P shares outstanding.

The bar chart shows changes in the performance of the Fund’s Class A shares from calendar year to calendar year. This chart does not reflect the sales charge applicable to Class A shares. If the sales charge were reflected, returns would be lower. Performance for the Fund’s other share classes will vary due to the different expenses each class bears. Updated performance information is available at www.lordabbett.com or by calling 888-522-2388.

PROSPECTUS – MULTI-ASSET INCOME FUND

26


 

Bar Chart (per calendar year) - Class A Shares

PerformanceBarChartData(14:3.44,15:-3.33,16:9.28,17:9.17,18:-6.41,19:15.86,20:13.81,21:7.54,22:-14.3,23:9.03)

Best Quarter2nd Q 2020+13.27%    Worst Quarter1st Q 2020-13.49%

The table below shows how the Fund’s average annual total returns compare to the returns of a securities market index with investment characteristics similar to those of the Fund and a performance average of similar mutual funds. The Fund’s average annual total returns include applicable sales charges.

The after-tax returns of Class A shares included in the table below are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. In some cases, the return after taxes on distributions and sale of Fund shares may exceed the return before taxes due to a tax benefit resulting from realized losses on a sale of Fund shares at the end of the period that is used to offset other gains. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-advantaged arrangements such as 401(k) plans or Individual Retirement Accounts (“IRAs”). After-tax returns for other share classes are not shown in the table and will vary from those shown for Class A shares.

PROSPECTUS – MULTI-ASSET INCOME FUND

27


               

Average Annual Total Returns

 

(for the periods ended December 31, 2023)

 

Class

1 Year

5 Years

10 Years

Life of Class

Inception
Date for
Performance

 

Class A Shares

 

 

 

 

 

 

 

Before Taxes

6.57%

5.31%

3.76%

-

 

 

 

After Taxes on Distributions

5.27%

4.00%

2.19%

-

 

 

 

After Taxes on Distributions and Sale of Fund Shares

3.93%

3.64%

2.28%

-

 

 

Class C Shares(1)

7.27%

5.00%

3.22%

-

 

 

Class F Shares

9.18%

5.94%

4.15%

-

 

 

Class F3 Shares

9.42%

6.12%

-

4.48%

4/4/2017

 

Class I Shares

9.29%

6.05%

4.25%

-

 

 

Class R2 Shares

8.64%

5.42%

3.63%

-

 

 

Class R3 Shares

8.75%

5.52%

3.74%

-

 

 

Class R4 Shares

9.02%

5.79%

-

4.06%

6/30/2015

 

Class R5 Shares

9.29%

6.06%

-

4.32%

6/30/2015

 

Class R6 Shares

9.35%

6.11%

-

4.36%

6/30/2015

 

Index

 

 

 

 

 

 

Bloomberg U.S. Aggregate Bond Index

5.53%

1.10%

1.81%

1.45%

6/30/2015

 

(reflects no deduction for fees, expenses, or taxes)

1.18%

4/4/2017

 

Morningstar Average

 

 

 

 

 

 

Morningstar Moderate Allocation Category Average

13.79%

8.08%

5.97%

6.11%

6/30/2015

 

(reflects no deduction for sales charges or taxes)

6.48%

4/4/2017

 

 

   

(1)

Class C shares convert to Class A shares eight years after purchase. Class C share performance does not reflect the impact of such conversion to Class A shares.

MANAGEMENT

Investment Adviser. The Fund’s investment adviser is Lord Abbett.

PROSPECTUS – MULTI-ASSET INCOME FUND

28


Portfolio Managers.

   

Portfolio Managers/Title

Member of
the Portfolio
Management
Team Since

Giulio Martini, Partner and Director of Strategic Asset Allocation

2015

Robert A. Lee, Partner and Co-Head of Taxable Fixed Income

2016

Steven F. Rocco, Partner and Co-Head of Taxable Fixed Income

2022

Jahiz Barlas, Portfolio Manager

2023

PURCHASE AND SALE OF FUND SHARES

The minimum initial and additional amounts shown below vary depending on the class of shares you buy and the type of account. Certain financial intermediaries may impose different restrictions than those described below. For Class I shares, the minimum investment shown below applies to certain types of institutional investors, but does not apply to registered investment advisers or retirement and benefit plans otherwise eligible to invest in Class I shares. Class P shares are closed to substantially all new investors. See “Choosing a Share Class – Investment Minimums” in the prospectus for more information.

       

Investment Minimums — Initial/Additional Investments

Class

A(1) and C

F, F3, P, R2, R3, R4, R5, and R6

I

General and IRAs without Invest-A-Matic Investments

Initial: $1,500
Additional: No minimum

N/A

Initial: $1 million
Additional: No minimum

Invest-A-Matic Accounts(2)

Initial: $250
Additional: $50

N/A

N/A

IRAs, SIMPLE and SEP Accounts with Payroll Deductions

No minimum

N/A

N/A

Fee-Based Advisory Programs and Retirement and Benefit Plans

No minimum

No minimum

No minimum

(1) There is no investment minimum for Class A shares purchased by investors maintaining an account with a financial intermediary that has entered into an agreement with Lord Abbett Distributor LLC (“Lord Abbett Distributor”) to offer Class A shares through a load-waived network or platform, which may or may not charge transaction fees.

(2) There is no minimum initial investment for Invest-A-Matic accounts held directly with the Fund, including IRAs.

You may sell (redeem) shares through your securities broker, financial professional or financial intermediary on any business day the Fund calculates its net asset value (“NAV”). If you have direct account access privileges, you may redeem your shares by contacting the Fund in writing at Lord Abbett Funds Service Center, P.O. Box 534489, Pittsburgh, PA 15253-4489 (regular mail) or Attention: 534489, 500 Ross Street 154-0520, Pittsburgh, PA 15262 (overnight mail), by calling 888-522-2388 or by accessing your account online at www.lordabbett.com.

PROSPECTUS – MULTI-ASSET INCOME FUND

29


OTHER IMPORTANT INFORMATION REGARDING FUND SHARES

For important information about taxes and payments to broker-dealers and other financial intermediaries, please turn to the “Tax Information” and “Payments to Broker-Dealers and Other Financial Intermediaries” sections of the prospectus.

PROSPECTUS – MULTI-ASSET INCOME FUND

30


 

FUND SUMMARY

Convertible Fund

INVESTMENT OBJECTIVE

The Fund’s investment objective is to seek current income and the opportunity for capital appreciation to produce a high total return.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts if you and certain members of your family invest, or agree to invest in the future, at least $100,000 in the Lord Abbett Family of Funds. More information about these and other discounts is available from your financial intermediary and in “Sales Charge Reductions and Waivers” on page 293 of the prospectus, Appendix A to the prospectus, titled “Intermediary-Specific Sales Charge Reductions and Waivers,” and “Purchases, Redemptions, Pricing, and Payments to Dealers” on page 9-1 of Part II of the statement of additional information (“SAI”).

           

Shareholder Fees(1) 

(Fees paid directly from your investment)

 

Class

 

A

C

F, F3, I, P, R2, R3, R4, R5, and R6

 

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)

2.25%

None

None

 

Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption
proceeds, whichever is lower)

None(2)

1.00%(3)

None

 

               

Annual Fund Operating Expenses

 

(Expenses that you pay each year as a percentage of the value of your investment)

 

Class

A

 C

F

F3

 I

 P

 

Management Fees

0.70%

0.70%

0.70%

0.70%

0.70%

0.70%

 

Distribution and Service (12b-1) Fees

0.20%

0.83%(4)

0.10%

None

None

0.45%

 

Other Expenses

0.20%

0.20%

0.20%

0.11%

0.20%

0.20%

 

Total Annual Fund Operating Expenses

1.10%

1.73%

1.00%

0.81%

0.90%

1.35%

 

PROSPECTUS – CONVERTIBLE FUND

31


             

Annual Fund Operating Expenses (continued)

 

(Expenses that you pay each year as a percentage of the value of your investment)

 

Class

R2

R3

R4

R5

R6

 

Management Fees

0.70%

0.70%

0.70%

0.70%

0.70%

 

Distribution and Service (12b-1) Fees

0.60%

0.50%

0.25%

None

None

 

Other Expenses

0.20%

0.20%

0.20%

0.20%

0.11%

 

Total Annual Fund Operating Expenses

1.50%

1.40%

1.15%

0.90%

0.81%

 

   

(1)

A shareholder transacting in share classes without a front-end sales charge may be required to pay a commission to its financial intermediary. Please contact your financial intermediary for more information about whether such a commission may apply to your transaction.

(2)

A contingent deferred sales charge (“CDSC”) of 1.00% may be assessed on certain Class A shares purchased or acquired without a sales charge if they are redeemed before the first day of the month in which the one-year anniversary of the purchase falls.

(3)

A CDSC of 1.00% may be assessed on Class C shares if they are redeemed before the first anniversary of their purchase.

(4)

The 12b-1 fee the Fund will pay on Class C shares will be a blended rate calculated based on (i) 1.00% of the Fund’s average daily net assets attributable to shares held for less than one year and (ii) 0.80% of the Fund’s average daily net assets attributable to shares held for one year or more. All Class C shareholders of the Fund will bear 12b-1 fees at the same rate.

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Class C shares automatically convert to Class A shares after eight years. The expense example for Class C shares for the ten-year period reflects the conversion to Class A shares. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

                                   

Class

If Shares Are Redeemed

If Shares Are Not Redeemed

 

 

1 Year

3 Years

5 Years

10 Years

1 Year

3 Years

5 Years

10 Years

 

Class A Shares

$

335

$

567

$

818

$

1,535

$

335

$

567

$

818

$

1,535

 

Class C Shares

$

276

$

545

$

939

$

1,874

$

176

$

545

$

939

$

1,874

 

Class F Shares

$

102

$

318

$

552

$

1,225

$

102

$

318

$

552

$

1,225

 

Class F3 Shares

$

83

$

259

$

450

$

1,002

$

83

$

259

$

450

$

1,002

 

Class I Shares

$

92

$

287

$

498

$

1,108

$

92

$

287

$

498

$

1,108

 

Class P Shares

$

137

$

428

$

739

$

1,624

$

137

$

428

$

739

$

1,624

 

Class R2 Shares

$

153

$

474

$

818

$

1,791

$

153

$

474

$

818

$

1,791

 

Class R3 Shares

$

143

$

443

$

766

$

1,680

$

143

$

443

$

766

$

1,680

 

Class R4 Shares

$

117

$

365

$

633

$

1,398

$

117

$

365

$

633

$

1,398

 

Class R5 Shares

$

92

$

287

$

498

$

1,108

$

92

$

287

$

498

$

1,108

 

Class R6 Shares

$

83

$

259

$

450

$

1,002

$

83

$

259

$

450