N-CSRS 1 c91337_ncsrs.htm CERTIFIED SEMI-ANNUAL SHAREHOLDER REPORT

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act File Number: 811-00005

 

LORD ABBETT AFFILIATED FUND, INC.

(Exact name of Registrant as specified in charter)

 

90 Hudson Street, Jersey City, NJ 07302

(Address of principal executive offices) (Zip code)

 

Brooke A. Fapohunda, Esq., Vice President & Assistant Secretary

90 Hudson Street, Jersey City, NJ 07302

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (800) 201-6984

 

Date of fiscal year end: 10/31

 

Date of reporting period: 4/30/2018

 
Item 1:Report(s) to Shareholders.
 

 

LORD ABBETT
SEMIANNUAL REPORT

 

Lord Abbett
Affiliated Fund

 

For the six-month period ended April 30, 2018

 

Table of Contents

 

1   A Letter to Shareholders
     
2   Information About Your Fund’s Expenses and Holdings Presented by Sector
     
5   Schedule of Investments
     
10   Statement of Assets and Liabilities
     
12   Statement of Operations
     
13   Statements of Changes in Net Assets
     
14   Financial Highlights
     
18   Notes to Financial Statements
     
28   Supplemental Information to Shareholders
 

 

 

Lord Abbett Affiliated Fund
Semiannual Report

For the six-month period ended April 30, 2018

 

 

From left to right: James L.L. Tullis, Independent Chairman of the Lord Abbett Funds and Douglas B. Sieg, Director, President, and Chief Executive Officer of the Lord Abbett Funds.

  

Dear Shareholders: We are pleased to provide you with this semiannual report for Lord Abbett Affiliated Fund for the six-month period ended April 30, 2018. For additional information about the Fund, please visit our website at www.lordabbett.com, where you can access quarterly commentaries by the Fund’s portfolio managers. General information about Lord Abbett mutual funds, as well as in-depth discussions of market trends and investment strategies, is also provided in Lord Abbett Insights, a quarterly newsletter available on our website.

Thank you for investing in Lord Abbett mutual funds. We value the trust that you place in us and look forward to serving your investment needs in the years to come.

 

Best regards,

 

Douglas B. Sieg

Director, President and Chief Executive Officer

 

1

 

 

 

Expense Example

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (these charges vary among the share classes); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (these charges vary among the share classes); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2017 through April 30, 2018).

 

Actual Expenses

 

For each class of the Fund, the first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During Period 11/1/17 – 4/30/18” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

 

For each class of the Fund, the second line of the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

2

 

 

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

    Beginning   Ending   Expenses
    Account   Account   Paid During
    Value   Value   Period†
            11/1/17 –
    11/1/17   4/30/18   4/30/18
Class A            
Actual   $1,000.00   $1,027.30   $3.52
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,021.32   $3.51
Class C            
Actual   $1,000.00   $1,023.40   $7.27
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,017.60   $7.25
Class F            
Actual   $1,000.00   $1,028.70   $2.82
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,022.02   $2.81
Class F3            
Actual   $1,000.00   $1,029.20   $1.91
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,022.90   $1.91
Class I            
Actual   $1,000.00   $1,029.10   $2.31
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,022.51   $2.31
Class P            
Actual   $1,000.00   $1,027.30   $3.57
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,021.27   $3.56
Class R2            
Actual   $1,000.00   $1,026.00   $5.32
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,019.54   $5.31
Class R3            
Actual   $1,000.00   $1,026.10   $4.77
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,020.08   $4.76
Class R4            
Actual   $1,000.00   $1,027.50   $3.52
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,021.32   $3.51
Class R5            
Actual   $1,000.00   $1,028.40   $2.26
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,022.56   $2.26
Class R6            
Actual   $1,000.00   $1,029.20   $1.91
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,022.91   $1.91
Class T            
Actual   $1,000.00   $1,028.10   $3.02
Hypothetical (5% Return Before Expenses)   $1,000.00   $1,021.82   $3.01

 

† For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.70% for Class A, 1.45% for Class C, 0.56% for Class F, 0.38% for Class F3, 0.46% for Class I, 0.71% for Class P, 1.06% for Class R2, 0.95% for Class R3, 0.70% for Class R4, 0.45% for Class R5, 0.38% for Class R6 and 0.60% for Class T) multiplied by 181/365 (to reflect one-half year period).

 

3

 

 

Portfolio Holdings Presented by Sector

April 30, 2018

 

Sector*   %**
Consumer Discretionary  8.02%
Consumer Staples  10.70%
Energy  9.61%
Financials  21.95%
Health Care  11.31%
Industrials  10.74%
Information Technology  10.20%
Materials  4.03%
Real Estate  4.20%
Telecommunication Services  2.81%
Utilities  5.94%
Repurchase Agreement  0.49%
Total  100.00%

 

*   A sector may comprise several industries.
**   Represents percent of total investments.

 

4

 

Schedule of Investments (unaudited)

April 30, 2018

 

       Fair 
       Value 
Investments  Shares   (000) 
COMMON STOCKS 99.60%          
           
Aerospace & Defense 3.05%          
Boeing Co. (The)   43,500   $14,510 
Lockheed Martin Corp.   101,400    32,533 
Raytheon Co.   242,400    49,677 
United Technologies Corp.   846,000    101,647 
Total        198,367 
           
Air Freight & Logistics 0.72%          
CH Robinson Worldwide, Inc.    507,500    46,705 
           
Auto Components 0.37%          
Gentex Corp.   1,045,900    23,784 
           
Automobiles 1.17%          
Ford Motor Co.   6,761,200    75,996 
           
Banks 10.79%          
Bank of America Corp.   4,429,900    132,543 
Citigroup, Inc.   582,700    39,781 
Citizens Financial Group, Inc.   1,877,100    77,881 
Fifth Third Bancorp   1,280,300    42,467 
First Horizon National Corp.   1,335,900    24,447 
JPMorgan Chase & Co.   1,725,042    187,650 
KeyCorp   4,205,500    83,774 
U.S. Bancorp   2,222,800    112,140 
Total        700,683 
           
Beverages 0.87%          
Coca-Cola Co. (The)   1,308,700    56,549 
           
Biotechnology 2.00%          
AbbVie, Inc.   831,300    80,262 
Amgen, Inc.   285,800    49,866 
Total        130,128 
           
Building Products 0.92%          
Johnson Controls International plc   1,770,200    59,957 
       Fair 
       Value 
Investments  Shares   (000) 
Capital Markets 4.14%          
Ameriprise Financial, Inc.   451,100   $63,249 
CME Group, Inc.   316,200    49,858 
Eaton Vance Corp.   256,600    13,957 
Invesco Ltd.   1,429,900    41,424 
Northern Trust Corp.   177,500    18,948 
T. Rowe Price Group, Inc.   336,200    38,266 
TD Ameritrade Holding Corp.    742,700    43,144 
Total        268,846 
           
Chemicals 2.64%          
Celanese Corp. Series A   453,900    49,326 
DowDuPont, Inc.   482,800    30,532 
Huntsman Corp.   1,161,400    34,575 
LyondellBasell Industries NV Class A   540,700    57,168 
Total        171,601 
           
Commercial Services & Supplies 0.47%          
KAR Auction Services, Inc.   583,600    30,341 
           
Communications Equipment 1.95%          
Cisco Systems, Inc.   2,857,000    126,537 
           
Consumer Finance 1.64%          
Capital One Financial Corp.   384,000    34,798 
Discover Financial Services    1,008,500    71,856 
Total        106,654 
           
Containers & Packaging 1.40%          
Avery Dennison Corp.   322,500    33,801 
Graphic Packaging Holding Co.   1,577,500    22,558 
Packaging Corp. of America   295,700    34,210 
Total        90,569 
           
Diversified Consumer Services 0.70%          
H&R Block, Inc.   1,650,300    45,631 


 

  See Notes to Financial Statements. 5
 

Schedule of Investments (unaudited)(continued)

April 30, 2018

 

       Fair 
       Value 
Investments  Shares   (000) 
Diversified Telecommunication Services 2.81%  
AT&T, Inc.   2,851,249   $93,236 
Verizon Communications, Inc.   1,812,551    89,449 
Total        182,685 
           
Electric: Utilities 3.85%          
Duke Energy Corp.   868,139    69,590 
Exelon Corp.   1,789,900    71,023 
FirstEnergy Corp.   490,100    16,860 
Great Plains Energy, Inc.   935,900    30,632 
PPL Corp.   2,125,600    61,855 
Total        249,960 
           
Electrical Equipment 0.91%          
Eaton Corp. plc   422,800    31,723 
Hubbell, Inc.   260,200    27,024 
Total        58,747 
           
Energy Equipment & Services 1.46%          
Schlumberger Ltd.   1,385,900    95,017 
           
Equity Real Estate Investment Trusts 4.20%  
Duke Realty Corp.   1,159,200    31,414 
Essex Property Trust, Inc.   241,200    57,813 
Extra Space Storage, Inc.   422,700    37,870 
Federal Realty Investment Trust   146,000    16,914 
GGP, Inc.   1,299,600    25,979 
SL Green Realty Corp.   262,300    25,637 
Starwood Property Trust, Inc.   1,288,800    27,013 
UDR, Inc.   842,100    30,442 
Ventas, Inc.   382,100    19,648 
Total        272,730 
           
Food & Staples Retailing 3.37%          
Kroger Co. (The)   1,091,200    27,488 
Sysco Corp.   422,900    26,448 
Walgreens Boots Alliance, Inc.   1,062,000    70,570 
Walmart, Inc.   1,064,800    94,192 
Total        218,698 
       Fair 
       Value 
Investments  Shares   (000) 
Food Products 3.63%          
Archer-Daniels-Midland Co.   888,600   $40,325 
Conagra Brands, Inc.   353,800    13,115 
J.M. Smucker Co. (The)   219,700    25,063 
Kellogg Co.   381,000    22,441 
Kraft Heinz Co. (The)   1,143,300    64,459 
Mondelez International, Inc. Class A   1,776,300    70,164 
Total        235,567 
           
Health Care Equipment & Supplies 2.54%          
Abbott Laboratories   1,640,300    95,350 
Medtronic plc (Ireland)(a)   867,500    69,513 
Total        164,863 
           
Health Care Providers & Services 1.08%          
Cardinal Health, Inc.   729,800    46,831 
CVS Health Corp.   332,300    23,205 
Total        70,036 
           
Hotels, Restaurants & Leisure 1.70%          
Carnival Corp.   995,800    62,795 
Darden Restaurants, Inc.   509,800    47,340 
Total        110,135 
           
Household Durables 0.49%          
Newell Brands, Inc.   1,151,800    31,824 
           
Household Products 2.02%          
Kimberly-Clark Corp.   654,000    67,715 
Procter & Gamble Co. (The)   875,300    63,319 
Total        131,034 
           
Industrial Conglomerates 0.39%          
Honeywell International, Inc.   176,500    25,536 
           
Information Technology Services 1.17%          
International Business          
Machines Corp.   525,950    76,242 


 

6 See Notes to Financial Statements.
 

Schedule of Investments (unaudited)(continued)

April 30, 2018

 

       Fair 
       Value 
Investments  Shares   (000) 
Insurance 5.40%          
American International Group, Inc.   526,000   $29,456 
Arthur J Gallagher & Co.   598,500    41,889 
Chubb Ltd. (Switzerland)(a)   316,100    42,885 
FNF Group   920,800    33,913 
Hartford Financial Services Group, Inc. (The)   1,075,200    57,889 
Lincoln National Corp.   452,900    31,993 
Old Republic International Corp.   771,800    15,745 
Prudential Financial, Inc.   291,000    30,939 
Travelers Cos., Inc. (The)   238,300    31,360 
Unum Group   717,700    34,722 
Total        350,791 
           
Leisure Products 0.38%          
Hasbro, Inc.   283,000    24,929 
           
Machinery 2.05%          
Cummins, Inc.   255,300    40,812 
Dover Corp.   593,900    55,055 
Pentair plc (United Kingdom)(a)   556,700    37,455 
Total        133,322 
           
Media 0.42%          
Viacom, Inc. Class B   896,500    27,038 
           
Multi-Line Retail 0.27%          
Kohl’s Corp.   280,400    17,418 
           
Multi-Utilities 2.10%          
Ameren Corp.   287,700    16,865 
CMS Energy Corp.   306,300    14,454 
Dominion Energy, Inc.   913,100    60,776 
Sempra Energy   397,500    44,441 
Total        136,536 
       Fair 
       Value 
Investments  Shares   (000) 
Oil, Gas & Consumable Fuels 8.16%          
Chevron Corp.   1,732,032   $216,695 
ConocoPhillips   1,484,600    97,241 
Exxon Mobil Corp.   355,700    27,656 
Kinder Morgan, Inc.   1,960,200    31,010 
Valero Energy Corp.   1,205,350    133,710 
Williams Cos., Inc. (The)   917,500    23,607 
Total        529,919 
           
Pharmaceuticals 5.70%          
Bristol-Myers Squibb Co.   543,800    28,349 
Johnson & Johnson   584,000    73,870 
Merck & Co., Inc.   1,225,800    72,163 
Pfizer, Inc.   5,355,400    196,061 
Total        370,443 
           
Professional Services 0.77%          
ManpowerGroup, Inc.   212,300    20,321 
Robert Half International, Inc.   493,200    29,962 
Total        50,283 
           
Road & Rail 1.46%          
Ryder System, Inc.   271,200    18,287 
Union Pacific Corp.   572,500    76,503 
Total        94,790 
           
Semiconductors & Semiconductor Equipment 4.05% 
Applied Materials, Inc.   626,500    31,118 
Broadcom, Inc.   120,400    27,622 
Intel Corp.   2,598,700    134,145 
QUALCOMM, Inc.   1,379,700    70,379 
Total        263,264 
           
Software 0.85%          
Microsoft Corp.   591,900    55,355 
           
Specialty Retail 2.20%          
Lowe’s Cos., Inc.   894,500    73,734 
TJX Cos., Inc. (The)   340,100    28,857 
Tractor Supply Co.   589,500    40,086 
Total        142,677 


 

  See Notes to Financial Statements. 7
 

Schedule of Investments (unaudited)(continued)

April 30, 2018

 

       Fair 
       Value 
Investments  Shares   (000) 
Technology Hardware, Storage & Peripherals 2.18% 
Apple, Inc.   200,525   $33,139 
HP, Inc.   807,400    17,351 
NetApp, Inc.   650,900    43,337 
Xerox Corp.   1,525,500    47,977 
Total        141,804 
           
Textiles, Apparel & Luxury Goods 0.33% 
VF Corp.   268,500    21,714 
           
Tobacco 0.83%          
Philip Morris International, Inc.   654,900    53,702 
Total Common Stocks
(cost $6,182,572,624)		        6,469,407 
   Principal   Fair 
   Amount   Value 
Investments  (000)   (000) 
SHORT-TERM INVESTMENT 0.49%          
           
Repurchase Agreement          
Repurchase Agreement dated 4/30/2018, 0.74% due 5/1/2018 with Fixed Income Clearing Corp. collateralized by $32,945,000 of U.S. Treasury Note at 2.00% due 12/31/2021; value: $32,343,951; proceeds: $31,707,966
(cost $31,707,314)		  $31,707   $31,707 
Total Investments in Securities 100.09%
(cost $6,214,279,938)		        6,501,114 
Liabilities in Excess of Other Assets(b) (0.09)%        (5,987)
Net Assets 100.00%       $6,495,127 

 

(a)   Foreign security traded in U.S. dollars.
(b)   Liabilities in Excess of Other Assets include net unrealized depreciation on futures contracts as follows:


 

8 See Notes to Financial Statements.
 

Schedule of Investments (unaudited)(concluded)

April 30, 2018

 

Open Futures Contracts at April 30, 2018:

 

        Notional Notional Unrealized
Type Expiration Contracts Position Amount Value Depreciation
E-Mini S&P 500 Index June 2018 212 Long $28,922,455 $28,058,200 $(864,255)

 

 

The following is a summary of the inputs used as of April 30, 2018 in valuing the Fund’s investments carried at fair value(1):

 

   Level 1   Level 2   Level 3   Total 
Investment Type(2)(3)  (000)   (000)   (000)   (000) 
Common Stocks  $6,469,407   $–   $–   $6,469,407 
Repurchase Agreement   –    31,707    –    31,707 
Total  $6,469,407   $31,707   $–   $6,501,114 
Other Financial Instruments                    
Futures Contracts                    
Assets  $–   $–   $–   $– 
Liabilities   (864)   –    –    (864)
Total  $(864)  $–   $–   $(864)

 

(1)  Refer to Note 2(i) for a description of fair value measurements and the three-tier hierarchy of inputs.
(2)  See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography.
(3)  There were no Level 1/Level 2 transfers during the period ended April 30, 2018.

 

  See Notes to Financial Statements. 9
 

Statement of Assets and Liabilities (unaudited)

April 30, 2018

 

ASSETS:     
Investments in securities, at fair value (cost $6,214,279,938)  $6,501,113,540 
Deposits with brokers for futures collateral   1,142,600 
Receivables:     
Investment securities sold   11,657,564 
Interest and dividends   8,095,551 
Capital shares sold   1,915,476 
Prepaid expenses and other assets   59,634 
Total assets   6,523,984,365 
LIABILITIES:     
Payables:     
Investment securities purchased   11,712,721 
Capital shares reacquired   5,771,706 
12b-1 distribution plan   5,219,497 
Directors’ fees   3,051,772 
Management fee   1,689,996 
Variation margin for futures contracts   240,370 
Fund administration   214,922 
Accrued expenses   956,197 
Total liabilities   28,857,181 
NET ASSETS  $6,495,127,184 
COMPOSITION OF NET ASSETS:     
Paid-in capital  $5,897,009,346 
Undistributed net investment income   6,418,045 
Accumulated net realized gain on investments, futures contracts and foreign currency related transactions   305,730,446 
Net unrealized appreciation on investments and futures contracts   285,969,347 
Net Assets  $6,495,127,184 
   
10 See Notes to Financial Statements.
 

Statement of Assets and Liabilities (unaudited)(concluded)

April 30, 2018

 

Net assets by class:     
Class A Shares  $5,545,102,479 
Class C Shares  $324,073,853 
Class F Shares  $316,854,980 
Class F3 Shares  $104,510,881 
Class I Shares  $110,640,417 
Class P Shares  $16,298,247 
Class R2 Shares  $1,302,043 
Class R3 Shares  $43,919,073 
Class R4 Shares  $7,248,159 
Class R5 Shares  $43,835 
Class R6 Shares  $25,122,603 
Class T Shares  $10,614 
Outstanding shares by class:     
Class A Shares (2.9 billion shares of common stock authorized, $.001 par value)   360,771,917 
Class C Shares (300 million shares of common stock authorized, $.001 par value)   21,080,905 
Class F Shares (300 million shares of common stock authorized, $.001 par value)   20,616,130 
Class F3 Shares (300 million shares of common stock authorized, $.001 par value)   6,757,012 
Class I Shares (300 million shares of common stock authorized, $.001 par value)   7,168,012 
Class P Shares (200 million shares of common stock authorized, $.001 par value)   1,062,293 
Class R2 Shares (300 million shares of common stock authorized, $.001 par value)   84,681 
Class R3 Shares (300 million shares of common stock authorized, $.001 par value)   2,860,826 
Class R4 Shares (300 million shares of common stock authorized, $.001 par value)   472,171 
Class R5 Shares (300 million shares of common stock authorized, $.001 par value)   2,839 
Class R6 Shares (300 million shares of common stock authorized, $.001 par value)   1,624,117 
Class T Shares (300 million shares of common stock authorized, $.001 par value)   690 
Net asset value, offering and redemption price per share
(Net assets divided by outstanding shares):		     
Class A Shares-Net asset value   $15.37 
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 5.75%)		   $16.31 
Class C Shares-Net asset value   $15.37 
Class F Shares-Net asset value   $15.37 
Class F3 Shares-Net asset value   $15.47 
Class I Shares-Net asset value   $15.44 
Class P Shares-Net asset value   $15.34 
Class R2 Shares-Net asset value   $15.38 
Class R3 Shares-Net asset value   $15.35 
Class R4 Shares-Net asset value   $15.35 
Class R5 Shares-Net asset value   $15.44 
Class R6 Shares-Net asset value   $15.47 
Class T Shares-Net asset value   $15.38 
Class T Shares-Maximum offering price
(Net asset value plus sales charge of 2.50%)		   $15.77 
     
  See Notes to Financial Statements. 11
 

Statement of Operations (unaudited)

For the Six Months Ended April 30, 2018

 

Investment income:     
Dividends  $97,441,810 
Interest and other   98,876 
Total investment income   97,540,686 
Expenses:     
Management fee   10,543,139 
12b-1 distribution plan-Class A   7,097,146 
12b-1 distribution plan-Class B   13,906 
12b-1 distribution plan-Class C   1,677,029 
12b-1 distribution plan-Class F   164,260 
12b-1 distribution plan-Class P   21,663 
12b-1 distribution plan-Class R2   4,699 
12b-1 distribution plan-Class R3   114,976 
12b-1 distribution plan-Class R4   8,475 
12b-1 distribution plan-Class T   13 
Shareholder servicing   2,899,537 
Fund administration   1,342,939 
Reports to shareholders   182,681 
Registration   133,763 
Custody   78,525 
Directors’ fees   74,473 
Professional   72,161 
Other   71,071 
Gross expenses   24,500,456 
Expense reductions (See Note 9)   (111,719)
Net expenses   24,388,737 
Net investment income   73,151,949 
Net realized and unrealized gain (loss):     
Net realized gain on investments   319,316,817 
Net realized gain on futures contracts   2,636,872 
Net realized gain on foreign currency related transactions   12,964 
Net change in unrealized appreciation/depreciation on investments   (203,843,537)
Net change in unrealized appreciation/depreciation on futures contracts   (1,733,973)
Net realized and unrealized gain   116,389,143 
Net Increase in Net Assets Resulting From Operations  $189,541,092 
   
12 See Notes to Financial Statements.
 

Statements of Changes in Net Assets

 

   For the Six Months     
   Ended April 30, 2018   For the Year Ended 
INCREASE (DECREASE) IN NET ASSETS  (unaudited)   October 31, 2017 
Operations:          
Net investment income  $73,151,949   $146,264,947 
Net realized gain on investments, futures contracts and foreign currency related transactions   321,966,653    618,946,285 
Net change in unrealized appreciation/depreciation on investments and futures contracts   (205,577,510)   389,294,975 
Net increase in net assets resulting from operations   189,541,092    1,154,506,207 
Distributions to shareholders from:          
Net investment income          
Class A   (61,046,138)   (132,844,836)
Class B   (6,792)   (182,185)
Class C   (2,303,278)   (5,793,726)
Class F   (3,757,181)   (8,263,918)
Class F3   (1,209,353)   (3,401)
Class I   (1,328,285)   (2,641,321)
Class P   (183,235)   (448,689)
Class R2   (13,794)   (20,335)
Class R3   (440,138)   (1,052,995)
Class R4   (78,357)   (53,701)
Class R5   (343)   (381)
Class R6   (294,912)   (242,425)
Class T   (116)   (58)
Net realized gain          
Class A   (531,758,842)   (288,054,307)
Class B   (474,527)   (1,195,100)
Class C   (30,755,922)   (20,548,624)
Class F   (29,284,623)   (10,733,807)
Class F3   (8,548,252)   – 
Class I   (10,256,107)   (7,375,239)
Class P   (1,619,782)   (1,062,384)
Class R2   (162,204)   (26,129)
Class R3   (4,306,937)   (2,848,863)
Class R4   (489,113)   (6,351)
Class R5   (1,706)   (570)
Class R6   (2,214,950)   (977)
Class T   (956)   – 
Total distributions to shareholders   (690,535,843)   (483,400,322)
Capital share transactions (Net of share conversions) (See Note 14):             
Net proceeds from sales of shares   293,633,825    1,006,066,402 
Reinvestment of distributions   629,539,829    437,793,893 
Cost of shares reacquired   (658,403,303)   (1,535,555,564)
Net increase (decrease) in net assets resulting from capital share transactions   264,770,351    (91,695,269)
Net increase (decrease) in net assets   (236,224,400)   579,410,616 
NET ASSETS:          
Beginning of period  $6,731,351,584   $6,151,940,968 
End of period  $6,495,127,184   $6,731,351,584 
Undistributed net investment income  $6,418,045   $3,928,018 
     
  See Notes to Financial Statements. 13
 

Financial Highlights

 

      Per Share Operating Performance:
      Investment operations:  Distributions to
shareholders from:
   Net asset
value,
beginning
of period		  Net
invest-
ment
income(a)		  Net
realized
and
unrealized
gain (loss)		  Total
from
invest-
ment
opera-
tions		  Net
investment
income		  Net
realized
 gain		  Total
distri-
butions
Class A                                   
4/30/2018(c)  $16.65   $0.17   $0.26   $0.43   $(0.17)  $(1.54)  $(1.71)
10/31/2017   15.03    0.36    2.45    2.81    (0.37)   (0.82)   (1.19)
10/31/2016   15.70    0.37    0.46    0.83    (0.35)   (1.15)   (1.50)
10/31/2015   16.65    0.36    (0.15)   0.21    (0.36)   (0.80)   (1.16)
10/31/2014   14.94    0.36    1.72    2.08    (0.37)   –    (0.37)
10/31/2013   11.82    0.23    3.12    3.35    (0.23)   –    (0.23)
Class C                                   
4/30/2018(c)   16.65    0.11    0.26    0.37    (0.11)   (1.54)   (1.65)
10/31/2017   15.03    0.24    2.45    2.69    (0.25)   (0.82)   (1.07)
10/31/2016   15.70    0.26    0.46    0.72    (0.24)   (1.15)   (1.39)
10/31/2015   16.64    0.24    (0.14)   0.10    (0.24)   (0.80)   (1.04)
10/31/2014   14.94    0.24    1.71    1.95    (0.25)   –    (0.25)
10/31/2013   11.82    0.14    3.12    3.26    (0.14)   –    (0.14)
Class F                                   
4/30/2018(c)   16.64    0.18    0.27    0.45    (0.18)   (1.54)   (1.72)
10/31/2017   15.03    0.38    2.45    2.83    (0.40)   (0.82)   (1.22)
10/31/2016   15.70    0.39    0.47    0.86    (0.38)   (1.15)   (1.53)
10/31/2015   16.65    0.38    (0.14)   0.24    (0.39)   (0.80)   (1.19)
10/31/2014   14.94    0.38    1.73    2.11    (0.40)   –    (0.40)
10/31/2013   11.83    0.26    3.11    3.37    (0.26)   –    (0.26)
Class F3                                   
4/30/2018(c)   16.74    0.20    0.26    0.46    (0.19)   (1.54)   (1.73)
4/4/2017 to 10/31/2017(e)   15.94    0.11    0.89    1.00    (0.20)   –    (0.20)
Class I                                   
4/30/2018(c)   16.71    0.19    0.27    0.46    (0.19)   (1.54)   (1.73)
10/31/2017   15.09    0.41    2.44    2.85    (0.41)   (0.82)   (1.23)
10/31/2016   15.75    0.40    0.48    0.88    (0.39)   (1.15)   (1.54)
10/31/2015   16.70    0.41    (0.16)   0.25    (0.40)   (0.80)   (1.20)
10/31/2014   14.99    0.39    1.73    2.12    (0.41)   –    (0.41)
10/31/2013   11.86    0.27    3.14    3.41    (0.28)   –    (0.28)
Class P                                   
4/30/2018(c)   16.62    0.17    0.26    0.43    (0.17)   (1.54)   (1.71)
10/31/2017   15.01    0.36    2.44    2.80    (0.37)   (0.82)   (1.19)
10/31/2016   15.68    0.37    0.46    0.83    (0.35)   (1.15)   (1.50)
10/31/2015   16.62    0.36    (0.14)   0.22    (0.36)   (0.80)   (1.16)
10/31/2014   14.91    0.36    1.71    2.07    (0.36)   –    (0.36)
10/31/2013   11.80    0.23    3.11    3.34    (0.23)   –    (0.23)

 

14 See Notes to Financial Statements.
 
      Ratios to Average Net Assets:  Supplemental Data:
          
          
          
          
Net
asset
value,
end of
period		  Total
return(b)
(%)		  Total
expenses
(%)		  Net
invest-
ment
income
(%)		  Net
assets,
end of
period
(000)		  Portfolio
turnover
rate
(%)
                
$15.37    2.73(d)   0.70(f)   2.20(f)  $5,545,102    32(d)
 16.65    19.54    0.70    2.26    5,774,835    69 
 15.03    5.81    0.74    2.51    5,347,367    73 
 15.70    1.26    0.74    2.22    5,663,305    66 
 16.65    14.08    0.74    2.25    6,079,217    81 
 14.94    28.59    0.84    1.70    6,051,139    93 
                            
 15.37    2.34(d)   1.45(f)   1.45(f)   324,074    32(d)
 16.65    18.62    1.45    1.53    334,809    69 
 15.03    5.03    1.48    1.77    382,356    73 
 15.70    0.55    1.49    1.48    422,766    66 
 16.64    13.17    1.48    1.50    459,439    81 
 14.94    27.76    1.49    1.05    449,259    93 
                            
 15.37    2.87(d)   0.56(f)   2.34(f)   316,855    32(d)
 16.64    19.66    0.55    2.36    362,708    69 
 15.03    5.97    0.59    2.66    188,161    73 
 15.70    1.42    0.59    2.37    156,842    66 
 16.65    14.25    0.59    2.36    152,988    81 
 14.94    28.80    0.60    1.94    112,933    93 
                            
 15.47    2.92(d)   0.38(f)   2.50(f)   104,511    32(d)
 16.74    6.30(d)   0.38(f)   1.15(f)   90,582    69 
                            
 15.44    2.91(d)   0.46(f)   2.46(f)   110,640    32(d)
 16.71    19.74    0.46    2.56    68,197    69 
 15.09    6.12    0.49    2.76    137,838    73 
 15.75    1.51    0.49    2.52    131,435    66 
 16.70    14.31    0.49    2.48    268,873    81 
 14.99    29.03    0.50    2.07    239,652    93 
                            
 15.34    2.73(d)   0.71(f)   2.20(f)   16,298    32(d)
 16.62    19.48    0.71    2.27    17,375    69 
 15.01    5.81    0.74    2.52    19,648    73 
 15.68    1.31    0.74    2.22    22,407    66 
 16.62    14.02    0.74    2.32    28,397    81 
 14.91    28.58    0.81    1.74    83,364    93 

 

  See Notes to Financial Statements. 15
 

Financial Highlights (concluded)

 

      Per Share Operating Performance:
      Investment operations:  Distributions to
shareholders from:
   Net asset
value,
beginning
of period		  Net
invest-
ment
income(a)		  Net
realized
and
unrealized
gain (loss)		  Total
from
invest-
ment
opera-
tions		  Net
investment
income		  Net
realized
 gain		  Total
distri-
butions
Class R2                                   
4/30/2018(c)  $16.65   $0.14   $0.27   $0.41   $(0.14)  $(1.54)  $(1.68)
10/31/2017   15.04    0.29    2.46    2.75    (0.32)   (0.82)   (1.14)
10/31/2016   15.71    0.32    0.46    0.78    (0.30)   (1.15)   (1.45)
10/31/2015   16.61    0.31    (0.14)   0.17    (0.27)   (0.80)   (1.07)
10/31/2014   14.91    0.30    1.72    2.02    (0.32)   –    (0.32)
10/31/2013   11.80    0.19    3.12    3.31    (0.20)   –    (0.20)
Class R3                                   
4/30/2018(c)   16.63    0.15    0.26    0.41    (0.15)   (1.54)   (1.69)
10/31/2017   15.02    0.32    2.44    2.76    (0.33)   (0.82)   (1.15)
10/31/2016   15.69    0.33    0.47    0.80    (0.32)   (1.15)   (1.47)
10/31/2015   16.63    0.32    (0.13)   0.19    (0.33)   (0.80)   (1.13)
10/31/2014   14.93    0.32    1.72    2.04    (0.34)   –    (0.34)
10/31/2013   11.81    0.21    3.12    3.33    (0.21)   –    (0.21)
Class R4                                   
4/30/2018(c)   16.63    0.17    0.26    0.43    (0.17)   (1.54)   (1.71)
10/31/2017   15.03    0.33    2.48    2.81    (0.39)   (0.82)   (1.21)
10/31/2016   15.70    0.36    0.47    0.83    (0.35)   (1.15)   (1.50)
6/30/2015 to 10/31/2015(g)   15.95    0.12    (0.28)   (0.16)   (0.09)   –    (0.09)
Class R5                                   
4/30/2018(c)   16.72    0.19    0.26    0.45    (0.19)   (1.54)   (1.73)
10/31/2017   15.09    0.40    2.46    2.86    (0.41)   (0.82)   (1.23)
10/31/2016   15.75    0.40    0.48    0.88    (0.39)   (1.15)   (1.54)
6/30/2015 to 10/31/2015(g)   16.00    0.13    (0.28)   (0.15)   (0.10)   –    (0.10)
Class R6                                   
4/30/2018(c)   16.74    0.20    0.26    0.46    (0.19)   (1.54)   (1.73)
10/31/2017   15.10    0.38    2.50    2.88    (0.42)   (0.82)   (1.24)
10/31/2016   15.76    0.42    0.47    0.89    (0.40)   (1.15)   (1.55)
6/30/2015 to 10/31/2015(g)   16.00    0.14    (0.28)   (0.14)   (0.10)   –    (0.10)
Class T                                   
4/30/2018(c)   16.65    0.18    0.26    0.44    (0.17)   (1.54)   (1.71)
7/28/2017 to 10/31/2017(h)   16.22    0.09    0.43    0.52    (0.09)   –    (0.09)

 

(a) Calculated using average shares outstanding during the period.
(b) Total return for classes A, C and T does not consider the effects of sales loads and assumes the reinvestment of all distributions. Total return for all other classes assumes the reinvestment of all distributions.
(c) Unaudited.
(d) Not annualized.
(e) Commenced on April 4, 2017.
(f) Annualized.
(g) Commenced on June 30, 2015.
(h) Commenced on July 28, 2017.

 

16 See Notes to Financial Statements.
 
      Ratios to Average Net Assets:  Supplemental Data:
          
          
          
          
Net
asset
value,
end of
period		  Total
return(b)
(%)		  Total
expenses
(%)		  Net
invest-
ment
income
(%)		  Net
assets,
end of
period
(000)		  Portfolio
turnover
rate
(%)
                
$15.38    2.60(d)   1.06(f)   1.84(f)  $1,302    32(d)
 16.65    19.10    1.05    1.81    1,751    69 
 15.04    5.41    1.09    2.17    480    73 
 15.71    0.99    1.09    1.90    624    66 
 16.61    13.65    1.09    1.88    718    81 
 14.91    28.23    1.10    1.43    593    93 
                            
 15.35    2.61(d)   0.95(f)   1.95(f)   43,919    32(d)
 16.63    19.20    0.93    2.04    46,658    69 
 15.02    5.57    0.97    2.28    52,793    73 
 15.69    1.09    0.98    1.99    55,901    66 
 16.63    13.75    0.98    2.00    55,545    81 
 14.93    28.43    0.99    1.55    51,455    93 
                            
 15.35    2.75(d)   0.70(f)   2.14(f)   7,248    32(d)
 16.63    19.54    0.69    2.01    5,220    69 
 15.03    5.82    0.72    2.46    19    73 
 15.70    (0.95)(d)   0.72(f)   2.25(f)   10    66 
                            
 15.44    2.84(d)   0.45(f)   2.36(f)   44    32(d)
 16.72    19.82    0.44    2.48    18    69 
 15.09    6.13    0.47    2.77    11    73 
 15.75    (0.88)(d)   0.47(f)   2.50(f)   10    66 
                            
 15.47    2.92(d)   0.38(f)   2.52(f)   25,123    32(d)
 16.74    19.91    0.39    2.32    23,836    69 
 15.10    6.17    0.37    2.87    18    73 
 15.76    (0.82)(d)   0.38(f)   2.59(f)   10    66 
                            
 15.38    2.81(d)   0.60(f)   2.30(f)   11    32(d)
 16.65    3.24(d)   0.61(f)   2.13(f)   10    69 

 

  See Notes to Financial Statements. 17
 

Notes to Financial Statements (unaudited)

 

1. ORGANIZATION  

 

Lord Abbett Affiliated Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Fund was organized in 1934 and was reincorporated under Maryland law on November 26, 1975.

 

The Fund’s investment objective is long-term growth of capital and income without excessive fluctuations in market value.

 

The Fund has twelve active classes of shares: Class A, C, F, F3, I, P, R2, R3, R4, R5, R6 and T, each with different expenses and dividends. A front-end sales charge is normally added to the net asset value (“NAV”) for Class A and T shares. There is no front-end sales charge in the case of Class C, F, F3, I, P, R2, R3, R4, R5 and R6 shares, although there may be a contingent deferred sales charge (“CDSC”) in certain cases as follows: Class A shares purchased without a sales charge and redeemed before the first day of the month in which the one-year anniversary of the purchase falls (subject to certain exceptions as set forth in the Fund’s prospectus); and Class C shares redeemed before the first anniversary of purchase. Effective April 30, 2018, Class C shares will convert automatically into Class A shares on the 25th day of the month (or, if the 25th is not a business day, the next business day thereafter) following the tenth anniversary of the month on which the purchase order was accepted. The Fund’s Class P shares are closed to substantially all new investors, with certain exceptions as set forth in the Fund’s prospectus. On April 25, 2018, the Fund’s remaining Class B shares converted to Class A Shares.

 

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

 

2. SIGNIFICANT ACCOUNTING POLICIES  

 

(a) Investment Valuation–Under procedures approved by the Fund’s Board of Directors (the “Board”), Lord, Abbett & Co. LLC (“Lord Abbett”), the Fund’s investment manager, has formed a Pricing Committee to administer the pricing and valuation of portfolio investments and to ensure that prices utilized reasonably reflect fair value. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
   
  Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the New York Stock Exchange. The Fund may utilize an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices.

 

18

 

Notes to Financial Statements (unaudited)(continued)

 

  Exchange traded options and futures contracts are valued at the last quoted sale price in the market where they are principally traded. If no sale has occurred, the mean between the most recently quoted bid and asked prices is used.
   
  Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information to determine the fair value of portfolio investments. The Board or a designated committee thereof regularly reviews fair value determinations made by the Pricing Committee and may employ techniques such as reviewing related market activity, reviewing inputs and assumptions, and retrospectively comparing prices of subsequent purchases and sales transactions to fair value determinations made by the Pricing Committee.
   
  Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value.
   
(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method. Realized and unrealized gains (losses) are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day.
   
(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income on the Statement of Operations. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day.
   
(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.
   
  The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax returns remains open for the fiscal years ended October 31, 2014 through October 31, 2017. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
   
(e) Expenses–Expenses, excluding class-specific expenses, are allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Class A, B, C, F, P, R2, R3, R4 and T shares bear their class-specific share of all expenses and fees relating to the Fund’s 12b-1 Distribution Plan.
   
(f) Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized gain on Foreign currency related transactions in the Fund’s Statement of Operations. The Fund does not

 

19

 

Notes to Financial Statements (unaudited)(continued)

 

  isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities.
   
(g) Futures Contracts–The Fund may purchase and sell index futures contracts to manage cash, or as a substitute position in lieu of holding the underlying asset on which the instrument is based. At the time of entering into a futures transaction, an investor is required to deposit and maintain a specified amount of cash or eligible securities called “initial margin.” Subsequent payments made or received by the Fund called “variation margin” are made on a daily basis as the market price of the futures contract fluctuates. The Fund will record an unrealized gain (loss) based on the amount of variation margin. When a contract is closed, a realized gain (loss) is recorded equal to the difference between the opening and closing value of the contract.
   
(h) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the fair value of these securities has declined, the Fund may incur a loss upon disposition of the securities.
   
(i) Fair Value Measurements–Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk—for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy classification is determined based on the lowest level of inputs that is significant to the fair value measurement, and is summarized in the three broad Levels listed below:

 

  • Level 1 – unadjusted quoted prices in active markets for identical investments;
       
  • Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and
       
  • Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

  A summary of inputs used in valuing the Fund’s investments and other financial instruments as of April 30, 2018 and, if applicable, Level 1/Level 2 transfers and Level 3 rollforwards for the six months then ended is included in the Fund’s Schedule of Investments.

 

20

 

Notes to Financial Statements (unaudited)(continued)

 

Changes in valuation techniques may result in transfers into or out of an assigned level within the three-tier hierarchy. All transfers between different levels within the three-tier hierarchy are deemed to have occurred as of the beginning of the reporting period. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

3. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES  

 

Management Fee

The Fund has a management agreement with Lord Abbett, pursuant to which Lord Abbett supplies the Fund with investment management services and executive and other personnel, provides office space and pays for ordinary and necessary office and clerical expenses relating to research and statistical work and supervision of the Fund’s investment portfolio.

 

The management fee is based on the Fund’s average daily net assets at the following annual rate:

 

First $200 million .50%
Next $300 million .40%
Next $200 million .375%
Next $200 million .35%
Over $900 million .30%

 

For the six months ended April 30, 2018, the effective management fee paid to Lord Abbett was at an annualized rate of .31% of the Fund’s average daily net assets.

 

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

 

12b-1 Distribution Plan

The Fund has adopted a distribution plan with respect to Class A, B, C, F, P, R2, R3, R4 and T shares pursuant to Rule 12b-1 under the Act, which provides for the payment of ongoing distribution and service fees to Lord Abbett Distributor LLC (the “Distributor”), an affiliate of Lord Abbett. The following annual rates have been authorized by the Board pursuant to the plan:

 

Fees*  Class A  Class B  Class C  Class F(2)  Class P  Class R2  Class R3  Class R4  Class T
Service  .25%(1) .25%  .25%  –  .25%  .25%  .25%  .25%  .25%
Distribution  –  .75%  .75%  .10%  .20%  .35%  .25%  –  –

 

* The Fund may designate a portion of the aggregate fee as attributable to service activities for purposes of calculating Financial Industry Regulatory Authority, Inc. (“FINRA”) sales charge limitations.
(1) Annual service fee on shares sold prior to June 1, 1990 is .15% of the average daily net assets attributable to Class A shares.
(2) The Class F Share Rule 12b-1 fee may be designated as a service fee in limited circumstances as described in the Fund’s prospectus.

 

Class F3, I, R5 and R6 shares do not have a distribution plan.

 

Commissions

Distributor received the following commissions on sales of shares of the Fund, after concessions were paid to authorized dealers, for the six months ended April 30, 2018:

 

Distributor
Commissions		  Dealers’
Concessions
$197,814  $1,084,413

 

Distributor received CDSCs of $13,964 and $9,239 for Class A and Class C shares, respectively, for the six months ended April 30, 2018.

 

21

 

Notes to Financial Statements (unaudited)(continued)

 

Other Related Parties

As of April 30, 2018, the percentage of the Fund’s outstanding shares owned by Lord Abbett Multi-Asset Growth Fund was .72%.

 

One Director and certain of the Fund’s officers have an interest in Lord Abbett.

 

4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS  

 

Dividends from net investment income, if any, are declared and paid at least quarterly. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

 

The tax character of distributions paid during the six months ended April 30, 2018 and fiscal year ended October 31, 2017 were as follows:

 

   Six Months Ended
4/30/2018
(unaudited)		  Year Ended
10/31/2017
Distributions paid from:      
Ordinary income  $330,088,850  $185,838,297
Net long-term capital gains  360,446,993  297,562,025
Total distributions paid  $690,535,843  $483,400,322

 

As of April 30, 2018, the aggregate unrealized security gains and losses on investments and other financial instruments based on cost for U.S. federal income tax purposes were as follows:

 

Tax cost$ 6,230,481,962  
Gross unrealized gain  649,868,090  
Gross unrealized loss  (380,100,767 )
Net unrealized security gain$ 269,767,323  

 

The difference between book-basis and tax-basis unrealized gains is attributable to the tax treatment of certain securities, futures and wash sales.

 

5. PORTFOLIO SECURITIES TRANSACTIONS  

 

Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2018 were as follows:

 

Purchases  Sales
$2,125,707,796  $2,462,685,148

 

There were no purchases or sales of U.S. Government securities for the six months ended April 30, 2018.

 

22

 

Notes to Financial Statements (unaudited)(continued)

 

The Fund is permitted to purchase and sell securities (“cross-trade”) from and to other Lord Abbett funds or client accounts pursuant to procedures approved by the Board in compliance with Rule 17a-7 under the Act (the “Rule”). Each cross-trade is executed at a fair market price in compliance with provisions of the Rule. For the six months ended April 30, 2018, the Fund engaged in cross-trades purchases of $22,975,784 and sales of $20,738,603 which resulted in net realized gains of $282,549.

 

6. DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES  

 

The Fund entered into E-Mini S&P 500 Index futures contracts for the six months ended April 30, 2018 (as described in note 2(g)) to manage cash. The Fund bears the risk that the underlying index will move unexpectedly, in which case the Fund may realize a loss. There is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees futures against default.

 

As of April 30, 2018, the Fund had futures contracts with unrealized depreciation of $(864,255). Amounts of $2,636,872 and $(1,733,973) are included in the Statement of Operations related to futures contracts under the captions Net realized gain on futures contracts and Net change in unrealized appreciation/depreciation on futures contracts, respectively. The average number of futures contracts throughout the period was 266.

 

7. DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES  

 

The Financial Accounting Standards Board (“FASB”) requires disclosure to help better assess the effect or potential effect of offsetting arrangements on a fund’s financial position. The following tables illustrate gross and net information about recognized assets and liabilities eligible for offset in the statement of assets and liabilities; and disclose such amounts subject to an enforceable master netting agreement or similar agreement, by counterparty. A master netting agreement is an agreement between the Fund and a counterparty which provides for the net settlement of amounts owed under all contracts traded under that agreement, as well as cash collateral, through a single payment by one party to the other in the event of default on or termination of any one contract. The Fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master netting agreement does not result in an offset of reported amounts of financial assets and liabilities in the statement of assets and liabilities across transactions between the Fund and the applicable counterparty:

 

Description  Gross Amounts of
Recognized Assets		   Gross Amounts
Offset in the
Statement of Assets
and Liabilities		   Net Amounts of
Assets Presented
in the Statement of
Assets and Liabilities		 
Repurchase Agreement   $31,707,314   $–    $31,707,314 
Total   $31,707,314   $–    $31,707,314 

 

23

 

Notes to Financial Statements (unaudited)(continued)

 

   Net Amounts
of Assets
Presented in		   Amounts Not Offset in the
Statement of Assets and Liabilities		        
Counterparty  the Statement
of Assets and
Liabilities		   Financial
Instruments		   Cash
Collateral
Received(a)		   Securities
Collateral
Received(a)		   Net Amount(b) 
Fixed Income Clearing Corp.  $31,707,314   $–   $–   $(31,707,314)  $– 
Total  $31,707,314   $–   $–   $(31,707,314)  $– 

 

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statement of Assets and Liabilities, for each respective counterparty.
(b) Net amount represents the amount owed to the Fund by the counterparty as of April 30, 2018.

 

8. DIRECTORS’ REMUNERATION  

 

The Fund’s officers and one Director, who are associated with Lord Abbett, do not receive any compensation from the Fund for serving in such capacities. Independent Directors’ fees are allocated among all Lord Abbett-sponsored funds based on the net assets of each fund. There is an equity-based plan available to all Independent Directors under which Independent Directors must defer receipt of a portion of, and may elect to defer receipt of an additional portion of Directors’ fees. The deferred amounts are treated as though equivalent dollar amounts had been invested in the funds. Such amounts and earnings accrued thereon are included in Directors’ fees on the Statement of Operations and in Directors’ fees payable on the Statement of Assets and Liabilities and are not deductible for U.S. federal income tax purposes until such amounts are paid.

 

9. EXPENSE REDUCTIONS  

 

The Fund has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s expenses.

 

10. LINE OF CREDIT  

 

The Fund and certain other funds managed by Lord Abbett (collectively, the “Participating Funds”) entered into an amended syndicated line of credit facility with various lenders for $600 million (the “Facility”), whereas State Street Bank and Trust Company (“SSB”) participates as a lender and as agent for the lenders. The Facility is to be used for temporary or emergency purposes as an additional source of liquidity to satisfy redemptions. The Participating Funds are subject to graduated borrowing limits of one-third of Fund assets (if Fund assets are less than $750 million), $250 million, $300 million, or $350 million, based on past borrowings and likelihood of future borrowings.

 

During the six months ended April 30, 2018, the Fund did not utilize the Facility.

 

11. INTERFUND LENDING PROGRAM  

 

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC exemptive order”) certain registered open-end management investment companies managed by Lord Abbett, including the Fund, participate in a joint lending and borrowing program (the “Interfund Lending Program”). The SEC exemptive order allows the Funds to borrow money from and lend money to each other for temporary or emergency purposes subject to the limitations and conditions.

 

During the six months ended April 30, 2018, the Fund did not participate as a borrower or lender in the Interfund Lending Program.

 

24

 

Notes to Financial Statements (unaudited)(continued)

 

12. CUSTODIAN AND ACCOUNTING AGENT  

 

SSB is the Fund’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

 

13. INVESTMENT RISKS  

 

The Fund is subject to the general risks and considerations associated with equity investing, as well as the particular risks associated with value stocks and dividend paying companies. The value of an investment in the Fund will fluctuate in response to movements in the equity securities market in general and to the changing prospects of the individual companies in which the Fund invests. Large-cap value stocks may perform differently than the market as a whole and other types of stocks, such as small company stocks and growth stocks. Different types of stocks tend to shift in and out of favor depending on market and economic conditions. The market may fail to recognize the intrinsic value of particular value stocks for a long time. In addition, if the Fund’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market. The performance of dividend paying companies may lag the performance of other companies or the broader market as a whole. There is no guarantee that companies that currently pay dividends will continue to do so. Due to its investments in multinational companies, foreign companies and ADRs, the Fund may experience increased market, liquidity, currency, political, information, and other risks.

 

The Fund is subject to the risks associated with derivatives, which may be different from and greater than the risks associated with investing directly in securities and other investments.

 

These factors can affect the Fund’s performance.

 

14. SUMMARY OF CAPITAL TRANSACTIONS  

 

Transactions in shares of capital stock were as follows:

 

        Six Months Ended
April 30, 2018
(unaudited)		        Year Ended
October 31, 2017		 
Class A Shares  Shares   Amount   Shares   Amount 
Shares sold   6,810,933   $107,375,460    28,130,386   $443,882,943 
Converted from Class B*   269,242    4,274,217    955,904    15,249,418 
Reinvestment of distributions   35,527,989    542,968,171    25,204,079    386,046,084 
Shares reacquired   (28,765,902)   (455,229,130)   (63,059,844)   (997,676,209)
Increase (decrease)   13,842,262   $199,388,718    (8,769,475)  $(152,497,764)
                     
Class B Shares                    
Shares sold   2,132   $34,137    206,777   $3,234,854 
Reinvestment of distributions   29,237    451,359    86,018    1,312,626 
Shares reacquired   (83,524)   (1,337,113)   (561,821)   (8,845,224)
Converted to Class A*   (265,997)   (4,274,217)   (948,019)   (15,249,418)
Decrease   (318,152)  $(5,125,834)   (1,217,045)  $(19,547,162)
                     
Class C Shares                    
Shares sold   1,116,626   $17,687,504    4,165,606   $65,365,809 
Reinvestment of distributions   2,048,575    31,289,048    1,342,735    20,472,726 
Shares reacquired   (2,196,250)   (34,779,384)   (10,835,408)   (171,998,057)
Increase (decrease)   968,951   $14,197,168    (5,327,067)  $(86,159,522)

 

25

 

Notes to Financial Statements (unaudited)(continued)

 

        Six Months Ended
April 30, 2018
(unaudited)		        Year Ended
October 31, 2017		 
Class F Shares  Shares   Amount   Shares   Amount 
Shares sold   4,542,138   $71,803,091    19,920,706   $316,836,180 
Reinvestment of distributions   1,660,529    25,382,908    1,017,758    15,733,095 
Shares reacquired   (7,378,856)   (119,027,478)   (11,662,460)   (189,023,161)
Increase (decrease)   (1,176,189)  $(21,841,479)   9,276,004   $143,546,114 
                     
Class F3 Shares(a)                    
Shares sold   1,712,998   $27,378,694    5,521,355   $92,000,867 
Reinvestment of distributions   634,110    9,757,605    207    3,401 
Shares reacquired   (1,002,834)   (15,981,642)   (108,824)   (1,820,424)
Increase   1,344,274   $21,154,657    5,412,738   $90,183,844 
                     
Class I Shares                    
Shares sold   3,306,107   $54,932,860    745,629   $11,839,773 
Reinvestment of distributions   747,767    11,482,503    569,117    8,724,953 
Shares reacquired   (967,225)   (15,555,689)   (6,370,257)   (101,715,551)
Increase (decrease)   3,086,649   $50,859,674    (5,055,511)  $(81,150,825)
                     
Class P Shares                    
Shares sold   43,441   $701,133    89,813   $1,407,673 
Reinvestment of distributions   116,126    1,771,298    97,143    1,484,123 
Shares reacquired   (142,789)   (2,256,894)   (450,487)   (7,163,030)
Increase (decrease)   16,778   $215,537    (263,531)  $(4,271,234)
                     
Class R2 Shares                    
Shares sold   8,091   $125,231    79,179   $1,266,590 
Reinvestment of distributions   6,383    97,531    2,249    34,655 
Shares reacquired   (34,965)   (574,752)   (8,175)   (129,604)
Increase (decrease)   (20,491)  $(351,990)   73,253   $1,171,641 
                     
Class R3 Shares                    
Shares sold   167,074   $2,634,677    1,939,525   $30,271,043 
Reinvestment of distributions   310,914    4,744,708    255,629    3,900,871 
Shares reacquired   (423,249)   (6,745,741)   (2,904,635)   (45,492,740)
Increase (decrease)   54,739   $633,644    (709,481)  $(11,320,826)
                     
Class R4 Shares                    
Shares sold   217,072   $3,399,209    340,310   $5,467,421 
Reinvestment of distributions   15,285    233,748    1,496    24,170 
Shares reacquired   (74,093)   (1,170,844)   (29,185)   (473,577)
Increase   158,264   $2,462,113    312,621   $5,018,014 
                     
Class R5 Shares                    
Shares sold   1,983   $31,674    313   $4,979 
Reinvestment of distributions   133    2,049    62    950 
Shares reacquired   (342)   (5,451)   (7)   (113)
Increase   1,774   $28,272    368   $5,816 

 

26

 

Notes to Financial Statements (unaudited)(concluded)

 

      Six Months Ended
April 30, 2018
(unaudited)		      Year Ended
October 31, 2017		 
Class R6 Shares  Shares   Amount   Shares   Amount 
Shares sold   460,850   $7,530,155    2,122,719   $34,478,270 
Reinvestment of distributions   88,240    1,357,829    3,412    56,181 
Shares reacquired   (349,069)   (5,739,185)   (703,230)   (11,217,874)
Increase   200,021   $3,148,799    1,422,901   $23,316,577 
                     
Class T Shares(b)                    
Shares sold   –   $–    616   $10,000 
Reinvestment of distributions   70    1,072    4    58 
Shares reacquired   –    –    –    – 
Increase   70   $1,072    620   $10,058 

 

* Automatic conversion of Class B shares occurs on the 25th day of the month (or, if the 25th day was not a business day, the next business day thereafter) following the eighth anniversary of the day on which the purchase order was accepted. Class B shares were closed on April 25, 2018.
(a) Commenced on April 4, 2017.
(b) Commenced on July 28, 2017.

 

27

 

Approval of Advisory Contract

 

The Board, including all of the Directors who are not “interested persons” of the Fund or of Lord Abbett, as defined in the Investment Company Act of 1940, as amended (the “Independent Directors”), annually considers whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett (the “Agreement”). In connection with its most recent approval, the Board reviewed materials relating specifically to the Agreement, as well as numerous materials received throughout the course of the year, including information about the Fund’s investment performance compared to the performance of its benchmark. Before making its decision as to the Fund, the Board had the opportunity to ask questions and request further information, taking into account its familiarity with Lord Abbett gained through its meetings and discussions. These meetings and discussions included reviews of Fund performance conducted by members of the Contract Committee, the deliberations of the Contract Committee, and discussions between the Contract Committee and Lord Abbett’s management. The Independent Directors also met with their independent legal counsel in various private sessions at which no representatives of management were present.

 

The materials received by the Board included, but were not limited to: (1) information provided by Morningstar, Inc. (“Morningstar”) regarding the investment performance of the Fund compared to the investment performance of certain funds with similar investment styles as determined by Morningstar, based, in part, on the Fund’s Morningstar category (the “performance peer group”), and the investment performance of the Fund’s benchmark; (2) information provided by Morningstar regarding the expense ratios, contractual and actual management fee rates, and other expense components for the Fund and certain funds in the same Morningstar category, with generally the same or similar share classes and operational characteristics, including asset size (the “expense peer group”); (3) certain supplemental investment performance information provided by Lord Abbett; (4) information provided by Lord Abbett on the expense ratios, management fee rates, and other expense components for the Fund; (5) sales and redemption information for the Fund; (6) information regarding Lord Abbett’s financial condition; (7) an analysis of the relative profitability of the Agreement to Lord Abbett; (8) information provided by Lord Abbett regarding the investment management fee schedules for Lord Abbett’s other advisory clients maintaining accounts with a similar investment strategy as the Fund; and (9) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

 

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all applicable legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest that may result from being engaged in other lines of business. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other. After reviewing these and related factors, the Board concluded that the Fund was likely to continue to benefit from the nature, extent and quality of the investment services provided by Lord Abbett under the Agreement.

 

Investment Performance. The Board reviewed the Fund’s investment performance in relation to that of the performance peer group and the Fund’s benchmark as of various periods ended August 31, 2017. The Board observed that the Fund’s investment performance was above the median of the performance peer group for the one- and five-year periods, but below the median of the

 

28

 

Approval of Advisory Contract (continued)

 

performance peer group for the three- and ten-year periods. The Board took into account that it had discussed equity performance with Lord Abbett over the course of several meetings. They also considered recent changes to Lord Abbett’s equity department, and that Lord Abbett had developed and was implementing a plan intended to improve equity Fund performance. The Board further considered Lord Abbett’s performance and reputation generally, the performance of other Lord Abbett-managed funds overseen by the Board, and the willingness of Lord Abbett to take steps intended to improve performance when necessary. After reviewing these and related factors, the Board concluded that the Fund’s Agreement should be continued.

 

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to the Fund, in light of its investment objective and discipline. Among other things, the Board considered the size, experience, and turnover of Lord Abbett’s investment management staff, Lord Abbett’s investment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining investment management personnel.

 

Nature and Quality of Other Services. The Board considered the nature, quality, costs, and extent of compliance, administrative, and other services performed by Lord Abbett and the nature and extent of Lord Abbett’s supervision of third party service providers, including the Fund’s transfer agent and custodian.

 

Expenses. The Board considered the expense ratios, contractual and actual management fee rates, and other expense components represented in the net total expense ratio for the Fund and the expense levels of the expense peer group. It also considered how the expense level of the Fund related to those of the expense peer group and the amount and nature of the fees paid by shareholders. The Board observed that the net total expense ratio of the Fund was below the median of the expense peer group. After reviewing these and related factors, the Board concluded, within the context of its overall approval of the Agreement, that the expense level of the Fund was reasonable and supported the continuation of the Agreement.

 

Profitability. The Board considered the level of Lord Abbett’s operating margin in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. It considered whether the Fund was profitable to Lord Abbett in connection with the Fund’s operation, including the fee that Lord Abbett receives from the Fund for providing administrative services to the Fund. The Board also considered the profits realized from other business segments of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins excluding Lord Abbett’s marketing and distribution expenses. The Board also considered Lord Abbett’s profit margins, without those exclusions, in comparison with available industry data and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s overall profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. After reviewing these and related factors, the Board concluded, within the context of its overall approval of the Agreement, that Lord Abbett’s profitability with respect to the Fund was not excessive.

 

Economies of Scale. The Board considered the extent to which there had been economies of scale in managing the Fund, whether the Fund’s shareholders had appropriately benefited from such economies of scale, and whether there was potential for realization of any further economies of scale. The Board concluded that the existing management fee schedule, with its breakpoints in the level of the management fee, adequately addressed any economies of scale in managing the Fund.

 

29

 

Approval of Advisory Contract (concluded)

 

Other Benefits to Lord Abbett. The Board considered the amount and nature of the fees paid by the Fund and the Fund’s shareholders to Lord Abbett and the Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that the Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the 12b-1 fees it receives, and receives a portion of the sales charges on sales and redemptions of some classes of shares of the Lord Abbett Funds. In addition, the Board observed that Lord Abbett accrues certain benefits for its business of providing investment advice to clients other than the Lord Abbett Funds, but that business also benefits the Funds. The Board also noted that Lord Abbett, as disclosed in the prospectus of the Fund, has entered into revenue sharing arrangements with certain entities that distribute shares of the Fund. The Board also took into consideration the investment research that Lord Abbett receives as a result of Fund brokerage transactions.

 

Alternative Arrangements. The Board considered whether, instead of approving continuation of the Agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms. After considering all of the relevant factors, the Board unanimously found that continuation of the Agreement was in the best interests of the Fund and its shareholders and voted unanimously to approve the continuation of the Agreement. In considering whether to approve the continuation of the Agreement, the Board did not identify any single factor as paramount or controlling. Individual Directors may have evaluated the information presented differently from one another, giving different weights to various factors. This summary does not discuss in detail all matters considered.

 

30

 

Householding

 

The Fund has adopted a policy that allows it to send only one copy of the Fund’s prospectus, proxy material, annual report and semiannual report to certain shareholders residing at the same “household.” This reduces Fund expenses, which benefits you and other shareholders. If you need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

 

Proxy Voting Policies, Procedures and Records

 

A description of the policies and procedures that Lord Abbett uses to vote proxies related to the Fund’s portfolio securities, and information on how Lord Abbett voted the Fund’s proxies during the 12-month period ended June 30 are available without charge, upon request, (i) by calling 888-522-2388; (ii) on Lord Abbett’s Website at www.lordabbett.com; and (iii) on the Securities and Exchange Commission’s (“SEC”) Website at www.sec.gov.

 

Shareholder Reports and Quarterly Portfolio Disclosure

 

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330).

 

31

 

 

 

 

     
This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.    
     
Lord Abbett mutual fund shares are distributed by
LORD ABBETT DISTRIBUTOR LLC.		 Lord Abbett Affiliated Fund, Inc. LAA-3
(06/18)
 
Item 2: Code of Ethics.
  Not applicable.
   
Item 3: Audit Committee Financial Expert.
  Not applicable.
   
Item 4: Principal Accountant Fees and Services.
  Not applicable.
   
Item 5: Audit Committee of Listed Registrants.
  Not applicable.
   
Item 6: Investments.
  Not applicable.
   
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
  Not applicable.
   
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
  Not applicable.
   
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
  Not applicable.
   
Item 10: Submission of Matters to a Vote of Security Holders.
  Not applicable.
   
Item 11: Controls and Procedures.
     
  (a) Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days prior to the filing date of this report, the Chief Executive Officer and Chief Financial Officer of the Registrant have concluded that such disclosure controls and procedures are reasonably designed and effective to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities.
     
  (b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
 
Item 12: Exhibits.
     
  (a)(1) Code of Ethics. Not applicable.
     
  (a)(2) Certification of each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2 under the Investment Company Act of 1940 is attached hereto as a part of EX-99.CERT.
     
  (b) Certification of each principal executive officer and principal financial officer of the Registrant as required by Section 906 of the Sarbanes-Oxley Act of 2002 is provided as a part of EX-99.906CERT.
 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

      lord abbett affiliated fund, inc.
         
    By:  /s/ Douglas B. Sieg  
      Douglas B. Sieg  
      President and Chief Executive Officer
         
Date: June 25, 2018        
         
    By: /s/ Bernard J. Grzelak  
      Bernard J. Grzelak  
      Chief Financial Officer and Vice President
         
Date: June 25, 2018        
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

    By:  /s/ Douglas B. Sieg  
      Douglas B. Sieg  
      President and Chief Executive Officer
         
Date: June 25, 2018        
         
    By: /s/ Bernard J. Grzelak  
      Bernard J. Grzelak  
      Chief Financial Officer and Vice President
         
Date: June 25, 2018